Business Models for Designers 2010: Learning from the Field

Learning from the Field
Prof M P Ranjan

Learning from the field as a part of the design pedagogy at NID includes a live assignment that provides training in observation and interaction with persons and situations from a particular context. Here, in this course, we asked six teams of students to visit selected situations in the city of Ahmedabad to look at selected street food vendors over a period of three or four days in which they would watch, interact, record through field notes and sketches and build models to refine their understanding of the situation being studied, all carried out in an iterative manner. In this case the business models of a category of entrepreneurs called street food vendors. This year, as in previous years, we assigned the six groups to the categories of street food vendors who would be active at this time of the year. These six include – Fruit and Juice vendors (Juicewalla), Tea vendors (Chaiwalla), Pani Puri vendors (Pani Puri walla), Pav Bhaji vendors (Pav Bhaji walla), Omlette vendors (Omlettewalla) and the Fried Bhajiya vendor (Bhajiya walla). Download presentation with linked movies and paper titled "Creating the Unknowable: Designing the Future in Education" presented at the EAD06 conference in Bremen, Germany in 2005 which describes the course along with a visual presentation and embedded slide shows inside the pdf show. Zip file 53.8 mb with pdf show and full text and linked movies.

Image01: Metaphor chosen by the Juicewalla group was Street Car Racing with pit stops and racing events that were supported with poster presentations of a variety of juice vendors in the city of Ahmedabad. the thumbnail images show how the team members came up to the models and explained their understanding to the full class.

Download pdf picture album of Juicewalla group PDF file 5.8 mb

Image02: The Chaiwalla group chose the metaphor of a Football match and they presented a dynamic image that had players coming in as cut-out images and made for a compelling presentation. The team wore team T-shirts and badges for a group identity.

Download pdf picture album of Chaiwalla group PDF file 12.6 mb

Image03: The Pani Puri group used the train of gears as their metaphor and theirs too was a dynamic show since they came in one by one and added a new yellow gear as they shared their insights from the field.

Download pdf picture album of Pani Puriwalla group PDF file 5.3 mb

Image04: A very Indian metaphor of a Masala Dabba or Masala Box for Indian spices was used by the Pav Bhaji group and the show went through many layers of unfolding from each spice sub-box. The lid too had some problems that were shared at the very end.

Download pdf picture album of Pav Bhajiwalla group PDF file 4.8 mb

Image05: The Omlettewala group chose the metaphor of a Music Boom Box and performed a skit to illustrate some features.

Download pdf picture album of Omlettewalla group PDF file 4.1 mb

Image06: Finally the Bhajiyawalla group stole the show by presenting an huge Ten Rupee Note using both sides of the note as their metaphor. Their explanation was that whatever happened to the costs of ingredients the Bhajiyawalla always managed to Price their product at Rupees Ten. Good insight from the field, a strategy to remember.

Download pdf picture album of Bhajiyawalla group PDF file 3.6 mb

Understanding Business Processes:
Building and delivering business models are now an integral part of our understanding of design in India. We therefore innovated this assignment in order to give design students an understanding of business processes. Groups of students are asked to study the work of local street food vendors and to conduct observations and interviews with numerous such service providers in order to understand their business processes and to map the same in the form of a presentation to the rest of the class. The local “Chai-wallah, the omlette-wallah, and other fast-food vendors on the streets of Ahmedabad become subjects of their study of micro-enterprises which have all the business processes and strategies of a multi-national, albeit at a much smaller scale, and at much more comprehensible scale of operation. Students build a visual model of their observations and findings along with a smattering of business terminology to explain the cash flows and business strategies adopted by each of these micro-enterprises and leads to a better understanding of business processes as an area of study. The presentations are used by the teachers to instruct and inform the students of the relevance of such studies and the possibility of scaling up this study to medium and large businesses in principle. This is perhaps a painless way to learn about business and the understanding exhibited by our students is quite remarkable.

Prof M P Ranjan

Business Models: Learning from the Field

DCC2009 Business Models assignment: Learning from the Field in a design setting

Prof M P Ranjan

Image 01: Omlette-walla group with their visual presentation of the Ahmedabad street vendors who serve egg based food offerings.

Business Models are all around us and these are manifested in the form and structure of all the business that are active and working in the environment in which we all live and work. It is therefore possible for a sensitive designer to use their senses and the knowledge gleaned from the field to discover and articulate these into visible and invisible relationships through a process of observation, interaction, analysis, discourse and visualization based on which they could arrive at a new level of realisation about these. The particular business models that are embedded into each specific business that they wish to study in order to improve or compete with are laid bare in front of their eyes as the work progresses and they would then be able to explore alternatives to make these better or more effective as desired.

The assignments offered to the students deal with the intensive study of street food vendors in the field in Ahmedabad city using observation and interaction to gather insights about the particular vendor and his strategies as well as to look for more general situational characteristics and entrepreneurial behavior that helps the incumbent to succeed in a fairly hostile but opportunity rich environment of the city in need of certain types of services which are being addressed by the vendor in question. The students were assigned five types of street food vendors in Ahmedabad – The Omlette-wallah (Egg Omlette maker), The Bhajiya-walla (Fried Indian Snack), The Chai-walla (Tea vendor), The Pav Bhaji-wallah (Bread and Curry maker) and The Pani-Puri-walla (Fried Puri with liquid chutney) – and each group was required to study several live examples in the field in order to make a composite visualization of their insights that could be shared with the class at the end of this process.

Image 02: Bhajiya-walla group made a number of models to describe their understanding of the business models but their final offering was a paper model of the proposed hand cart which offered many new features and promised to solve many of the aspirations of the vendors as well as the imagined features that the group liked to provide to these vendors.

Here, when a design student is in learning mode, it is far easier to start with small and micro enterprises such as street food vendors who are easily accessible and can therefore be a very useful source of business learning and about a number of finer aspects of entrepreneurial behavior. Each of these micro businesses is indeed homologous to a huge multi-national business conglomerate in a similar line of business such as the ones involved in the preparation and delivery of food to their customers across several continents. The large and the small businesses all have to carry out much the same activities in much the same space in a city with the same collective audience but at a very different scale and reach but the components are all very similar.

Image 03: Chai-walla group showed the processes and relationships at the macro and the micro level of discourse and at the micro-level they used a literal flow of the liquid Chai – from cooking vessel to tea pot to tea cup and then to the mouth which is followed by the customers hand giving money to the maker who in turn uses the money to make more tea and make a profit in the process – a business process, all in one single flow…

Learning from the field is the way forward for designers who wish to work at the cutting edge of change and be able to shape the future with their insights and contributions. In real life too this would be the way they will have to work by gathering insights from the events and activities that are live and happening in their business space and with these insights they would be able to propose the new offerings that would go to the creation of the future landscapes around them. Design has moved forward from being focused on objects and spaces alone to include the business processes through which these objects, services and spaces are created and offered to the customers and managers too are now taking this area of design creation as an important part of their area of expertise.

Image 04: Pav Bhaji-walla group made a model of the street vendors cart using a table and a couple of bicycle wheels along with a few props as a backdrop for their skit which showed their understanding of the business models used by the vendor groups they had studied. The flow-charts in the background showed their understanding of these processes.

Another aspect of design learning that the assignment design has taken into consideration is that designers need to learn to work in teams and to collaborate with a large number of professionals from other fields of expertise. These group assignments that require the students to go outside the classroom and engage with public at large is an important element of design education that prepares them for the future where we would expect them to work in co-creation modes with stakeholders of their particular business and in doing so build the attitudes, abilities and knowledge that would help them perform at a high level of creativity in the rich matrix of our reality in urban and rural settings. This does imply that design education with these methods needs peace and security to be taken care of when the students move into the field, however we have had situations where student teams have had to confront with hostile reception due to various factors, some within their control and others which are not. However they need to be sensitized to these issues so that they can recognize any threat and take precautionary measures as may be needed while they are in the field.

Image 05: Pani Puri group made a meticulous model with a very well classified structure that showed their complex understanding of the business models and strategies followed by their street vendors, all supported by highly expressive renderings of each aspect of the structure and a flow of arrows that linked all these elements into a complete whole.

The kind of learning that happens in such a group interaction mode and in contact with the field is very rich with first hand experience and deep insights are formed in all the stages of the assignment, particularly at the stage of visualization and presentation since these are carried out in a reflective mode based on the real experiences in the field and not just on bookish information or on the internet download type of knowledge that is delivered by remote experts in a loaded form of professional jargon which may or may not be truly accessible to the student. After three days and nights in the field with their respective street vendors and a good deal of time back in the studio as a group to process all the field data into images and texts that made sense the students spent a full day in making presentations to each other and the teachers, all resulting in a great deal of learning for all concerned.
Prof M P Ranjan

Business Models for Designers: Learning from the Field

"Business Models for Designers: Learning from the Field" from the DCC class was featured in Core77.com web portal for Industrial Design and we shared it with our students with much excitement in class.

Last week the undergraduate students of my Foundation class at NID, called “Design Concepts and Concerns”, studied business models as part of their programme of study in order to understand design theory and practice that is included as a core subject at the end of their first year at the school. Organised into five working groups, they fanned out from the Institute in search of small street food vendors located in many parts of Ahmedabad city and each group observed and studied one particular type of food vendor, each using their designer sensibilities and the designer tools and skills of drawing, observation, interaction and interviewing, all done in the field at the place of work, creating a platform for learning from the field. This kind of learning would stand them in good stead for the rest of their lives since design knowledge and insights are usually hard earned from the field through sensitive observation as insights about the future are rarely found in books and other resources that are usually considered sound sources of knowledge in the fields of science and technology.

They had to first break the ice and introduce themselves as well as their project intentions and try to muster the cooperation of the busy street vendors to get them to share their experiences as well as their insights about the business that they managed, all done in a fairly hostile space of the unrelenting street environment, which in many cases is not entirely supported by the local laws and the local and national law enforcement agencies. Last year the Supreme Court of India had instructed the Government of Delhi to take immediate action to ban all street food vendors under the current laws of the land and this had raised an uproar from a number of concerned citizens and activist groups across the country. Karmayug, a local NGO in Mumbai has done very detailed work on the management and facilitation of street vendors in Mumbai since they do serve a real need in the crowded Metro which cannot and will not be met by the organized retail sector in India. However, from these studies it is clear that these street food vendors negotiate an existence in this difficult space and manage to build up a steady source of income and from a start-up mode with very little investment they work hard to establish a credible business and in many cases a lot of good-will and business partners such as their suppliers and their regular clients in the field. Many of these individuals are eventually successful in managing their lives and earning a good living, good enough to tend for their family and give their children a platform from which they could launch themselves to positions of advantage that the parents did not enjoy in their lifetime. This is a great way to beat poverty by using ones own efforts and determination and this is an informal channel that can be used by the under-privileged, the poor and the desperate people living in the edge of the city to fend for themselves when neither industry nor governments can do very much to help them survive or thrive. StreetFood.org is a great resource that discusses the various issues that pertain to street food in the developing world or as they say the Global South. The Seminar Magazine had discussed this topic in great depth in one of their issues and the debate is far from over in India and across the world, it seems.

Indian cities are full of such hard working and imaginative settlers who having migrated in search of work from our villages to our cities and they have managed to eke out a livelihood in an imaginative manner with no capital and with a determination that is truly amazing. They build up local contacts, live in slums or shanty towns to start with their city lives and then some of the more successful ones move on to build major businesses across many sectors depending on the opportunity that they find or what they learn through their many experiences in the city. Our Foundation students were assigned to study five such street food vendors by working in teams and the pictures that follow show the presentation that the groups have made after a three day sojourn in the field, deep learning and a great many insights about business in design and the business of design.

Our students looked at the following street food vendors and the pictures below show a glimpse of the presentations made by each group. I am requesting each group to fill in their insights as comments attached to each section and I hope that they will contribute to make the experience a rich and rewarding one for all of us in the days ahead.

1. Street Tea vendors (The Chaiwallah),
2. Omlette makers using chicken eggs (Omlettewallah),
3. Fried Bhajiya makers using potato in pea-flour batter (Bhajiyawallah),
4. Paav Bhaji wallah (Fried Bread and mashed vegetables),
5. Pani Puri wallah (Puffed Puris from wheat flour with a sweet-sour dip)

All of these are favorite Indian street foods, all served from “Laris” or informal carts, by small and micro business enterprises, each run by a poor but determined individuals who is trying to build a livelihood in a harsh socio-economic environment. We asked the student to avoid established stalls run from built spaces and to focus on small street based enterprises which can be seen and understood as a whole business enterprise.

Business Models from the Field: Chaiwalla.com and DCC

Learning about Business Models from the Field: The Chaiwalla.com assignment and DCC
Image: Prof. M P Ranjan explaining the Systems Design Model to the DCC class. This four stage process includes User studies, Scenario Visualisation, Concept Detailing and Business Model development.
Several years ago, as part of the DCC course, we realized that strategy and planning were as important as concept and product detailing if a particular set of design offerings were to be successful in the marketplace. Unlike technological innovations and science innovations which can be proven in the laboratory or be subjected to peer reviews for validation, design innovations and design offerings are of a class that can be measured and the success of which can only be tested in the marketplace and this makes it truly complex to prove. The producers who have almost the same quality of product on offer can only differentiate their offering by the thoughtful development of their business models. So we see objects being converted into a service offering through a lease finance model or a service being dematerialised through the use of technology and the shift could be in either direction and the winner is the one who can capture the imagination of the consumer and offer a special convenience that the other is not able to offer.

Learning business processes is seen as the exclusive domain of the management graduate and not that of the designer, however as teachers at NID we realized that without this knowledge being integrated into the product creation and development process, the impact of the new product or service offering would be essentially incomplete. This led to the creation of the four stage systems design model that I presented at the CII-NID Design Summit in 2001. This model was several years in the making and was an implicit part of the DCC assignments over many years before it got formalized in the Design Summit paper and presentation which is called “Cactus Flowers Bloom in the Dessert”.( download pdf: Part 1 of 3.6 MB and Part 2 of 4.6 MB and paper of 123 KB) Much earlier, in 1998 we had asked a group of students in the DCC class to go out onto the streets of Ahmedabad and study several street food vendors in working groups and come back to the class with an understanding of their business processes and strategies. We called it the Chaiwalla.com assignment and it was an instant success since we realized that the students were indeed able to observe, interact and understand the structural, functional and performance attributes of the business particularly since these were small and micro enterprises that were managed and effectively carried out by one entrepreneur with a small team of supporters, many from within the family itself. We have offered this assignment to all batches since then and the learning from the explorations and presentation that go across three or four days is very rich indeed. The contacts in the field, we found, were also open to share much information and insights with the students, but there were others who were either suspicious or indifferent to the needs of the students. On their part the students learned how to be diplomatic and deal with the very public interactions with care and empathy. Besides learning about fieldwork and about gathering information first hand from the live subjects the students also developed insights about start-up entrepreneurship and how some of these individuals learned to cope with poverty and to deal with it rather effectively. The revelation that the students usually came back with was that some of these individuals earned more each day than their teachers, their own parents in some cases or even officers in very respectable and well known large business enterprises.

The assignment that evolved over the years included the forming of five or six groups, each being assigned to research one kind of street food vendor through direct contact and observation in the street. Students were briefed about various issues to be kept in mind while making these field observations and in the interviews that followed The criteria for the selection of the vendors would be based on a quick survey of a number of such vendor locations and to seek out the ones that were basically cooperative as well as those who provided some significant attribute such as proximity to public facilities, apparent success by the customer draw that was exhibited in the preliminary observations, and the presence of other differentiators which the group feels would be worthy of deeper examination. Over the years we have had our students look at Street Tea vendors (The Chaiwallah), Omlette makers (Omlettewallah), Fried Bhajiya makers (Bhajiyawallah), Paav Bhaji wallah (Fried Bread and mashed vegetables), Golla wallah (Crushed ice on a stick), Pani Puri wallah (Puffed Puris with a sour dip) and so on, all favorite Indian street foods, all served from Laris or informal carts, by small and micro business enterprises, each run by a poor but determined individuals who is trying to build a livelihood in a harsh socio-economic environment.

Each group of students are required to make repeated visits to the chosen locations for observation and use the insights to model the flow of resources, finances and build an understanding of the visible as well as intangible assets and processes that have been incorporated to make the particular business a success. Through the interviews that are also required to get an understanding of how the story pans out across the year or a longer period and in some cases get an understanding of the history of the establishment and its various successes and periods of crisis, of which there are many being so exposed to the vagaries of the street environment that is at once full of opportunity as well as challenges. This collective understanding is to be mapped out using the group processes of discussion, dialogue and modeling from which would emerge a coherent model that can be worked into a suitable metaphor that can be used to share their understanding with the rest of the class. The students would be required to make a rich visual representation of their model in the form of a wall size poster for presentation and this would be used as a prop to explain the concepts that they have gathered about the particular business that they have studied. Teachers use this opportunity to connect the students to possibilities for further study and they are in turn quite ready to follow up on these leads since the learning from the field is quite deep and highly motivating as well. We look forward to seeing how this particular batch respond to the field study challenge particularly since it happens across the Holi festival weekend with all its associated distractions, but we are sure that they would stay focused and get the job done in time. Only time will tell.