Using Human-Centered Design to Improve Patients’ Lives

By Melea Atkins, Kathryn Balestreri, Bree Jenkins, Ben Lauing, and Hannah Levinson

There were bright pink and orange and blue post-its everywhere. It looked just like the Innovation Lab at Haas had looked weeks before as we ran through an exercise during our Problem-Finding, Problem-Solving class. But we were 6,500 miles away from Haas, many of the post-its were written in Portuguese, and the stakes were high.

The São Paulo IBD team was facilitating a three-hour rapid ideation workshop at the major pharmaceutical company Novartis, leading a group of 16 senior-level employees through the human-centered design cycle to generate ideas about why patients don’t adhere to their medication. Our fear that directions would be lost in translation given the language barrier was immediately assuaged as people openly shared personal journeys with chronic illness and others wrote down observations. One woman shared her personal experience being treated by a physician for a chronic illness. He chose not to pursue aggressive treatment because he didn’t want to impose physical pain on his patient. She was left feeling out of control over her own life, and her emotional and physical suffering only increased over time. This led to an insight around shared decision-making and that a personal physician relationship is foundational to patient engagement and medication adherence.

Sticky notes

After the workshop, we received such a thoughtful WhatsApp message (the primary mode of communication – even for Novartis professionals!): This was so great, I’ve worked here for so long but I forgot that I’ve been the patient too.

Leading this workshop was a transformational Haas experience. When facilitating, we were pushed to command a room of people who were senior to us, whose primary language was different from ours, and who had no prior exposure to design thinking tools. The workshop also strengthened the bond of our IBD team, as we all worked together to ensure the success of the experience. Our team was especially fortunate to have Kathryn Balestreri, who brought design thinking expertise from her work as an innovation consultant and through Haas at Work. 

The Novartis Brazil team collaborates in small groups

The Novartis Brazil team collaborates in small groups

This human-centered design approach landed well with the Novartis team, and we realized how well it lent itself to the overarching goal of our project: helping patients better adhere to heart failure medication. Through our research and 71 interviews with subject matter experts, physicians, startups, and heart failure patients over the course of our project, it was abundantly clear that we wouldn’t be able to identify the root cause of non-adherence to heart failure medication without truly understanding why patients behave the way they do. Thus, when it came to generating solutions for Novartis, we generated six key insights about how we might positively impact patient behavior and improve adherence, used these insights to power ideas, and ultimately converged on one idea to create a prototype and action plan for Brazil. We called the prototype “Rede Integrade de Acolhimento” (RIA), which means “smile” in Portuguese. This is a title that a Novartis employee generated during the final prototyping stage of the ideation workshop.

In our final client call, the project manager requested materials about leading human-centered design workshops, because she wanted to replicate the workshop for Novartis teams in other Latin American countries. Hearing not only that Novartis was interested in our ideas, but also that they wanted to use some of the tools that we’d brought felt like a true success.

Bree Jenkins leads our team through our own ideation workshop

Bree Jenkins leads our team through our own ideation workshop

Haas IBD Blog – Citibanamex

Written by Michelle Boyd, Kira Mikityanskaya​, ​Jack Anderson, Danielle Pinder​ & Neeraj Goyal

The view from our apartment at dawn

The view from our apartment at dawn

As the second Haas IBD team to work with Citibanamex, we knew we up for an interesting experience!  Citibanamex is one of the oldest and largest banks in Mexico, and it has a culture of being traditional.

So how does a massive and traditional bank attract the young and emerging affluent, and adapt to an increasingly digital world? 

That is the question we were trying to help solve, and here is a day in the life:

 6:00 am – 9:00 am

We were fortunate enough to be staying in an Airbnb on the 18th floor of a beautiful apartment complex.  The views from our apartment were incredible, and we were rewarded with amazing sunrises and sunsets – but more importantly we were able to get a sense of how large Mexico City is.  There are over 21 million people living in the greater metro area, which contributes to some of the worst traffic any of us had ever seen.

Although our apartment was less than a mile away from Citibanamex headquarters, our daily commute regularly took over 30 minutes, as we wound our way down the hill and through incredibly dense traffic.

Team picture on the way to the office

Team picture on the way to the office

Our commute!

Our commute!

9:00 am – 1:00 pm

When traffic was light we made it into the office by 9:00am.  The office doors were also a source of daily comedy – we are still not sure what their purpose is.

On one of our first mornings in Mexico we hosted an Ideation Workshop.  We had 17 Citibanamex employees from across the organization come together to help us develop new ideas.  Although this workshop was very generative (over 90 ideas!), it got off to a bumpy start.  Just as we kicked off the workshop with a presentation about our research, we were told we needed to evacuate; a 4.7 magnitude earthquake had just hit a town nearby.

Waiting to be allowed back inside after the earthquake evacuation.

Waiting to be allowed back inside after the earthquake evacuation.

After about 20 minutes of waiting outside, we went back upstairs to finish our

Michelle and Kira going through the office doors

Michelle and Kira going through the office doors

presentation. We then divided into groups and tried to embody different customer personas.  Our goal was to brainstorm the tasks, influences, pain points and feelings that these customers would experience while working with Citibanamex.  These factors were then assembled into a customer journey, which was used as a platform to brainstorm potential solutions.

 

1:00 pm  – 2:30pm

The Ideation Workshop in action

The Ideation Workshop in action

Lunch is Mexico is a production.  Working lunches are not the norm, and employees regularly take an hour and a half to relax and chat with friends.  We tried everything from going to restaurants nearby, ordering from Rappi (the Amazon of Latin America), braving the crowds at the wallet-friendly Citibanamex cafeteria (3 dollars for a three-course meal!), and even the street taco’s.

Michelle and Neeraj digging into the street food!

Michelle and Neeraj digging into the street food!

2:30 pm – 4:00 pm

 Afternoons were filled with team-work sessions, meetings with various stakeholders, and the occasional coffee break.

During this time we saw some challenges related to innovating across such a large organization.  We met with amazing, intelligent and driven people, who were questioning the status quo and tackling big challenges – but were struggling to implement their initiatives, or multiple similar projects were being undertaken in different departments.  For most of our team (who came from small organizations pre-Haas), this was an interesting education in large corporate culture and organizational structure.

Jack taking us through a Hypothesis Tree

Jack taking us through a Hypothesis Tree

4:00 pm – 4:15 pm

Coffee was an important ingredient for our team, and we definitely took advantage of the Starbucks in our building.  For those of us who did not know Spanish before Mexico, ordering coffee was about as far as we got. It was appreciated.

Neeraj with a correctly spelled name and a heart for his improving Spanish

Neeraj with a correctly spelled name and a heart for his improving Spanish

4:15 pm. – 6:00pm

After coffee it was back to work, although on a few days we were lucky enough to get out of the office to learn more about Citibanamex first-hand.  We visited two branches, one traditional branch and one digital branch, as well as a contact center.  These visits gave us greater insight into both the benefits and pain points of being a priority customer.

Team picture in the contact center

Team picture in the contact center

After 6:00 pm  

When we were not indulging in the amazing restaurant scene that Mexico City offers, dinners consisted of Rappi, Uber Eats, and a few homecooked meals.

IBD is pitched as an intense team experience – after spending all day together, we were still each other’s company for dinner.  Our team made the most of this experience, and we turned dinners into friendly ‘interrogations’.  We threw out the etiquette rule of no religion or politics at the table and asked each other about childhoods, families, career goals, weird habits, and everything in between!

Although we never fulfilled Jack’s goal of watching Ten Things I Hate About You (his favorite rom-com), we all became closer friends from this experience, and we had a lot of fun hanging out and exploring what Mexico City has to offer.

Here are a few more highlights!

 

 

 

 

 

 

 

The Spring IBD Program is Off and Running….

A lot has happened this past month in the life of the 2018 Spring FTMBA IBD program. On February 1st, we held the first day of Spring IBD class, revealing the names of IBD clients, their projects and country destinations to an excited group of 16 IBD Student Team Leads. The Team Leads then introduced themselves online to their project clients for the first time. Following that, IBD Team Leads and Faculty Mentors collaborated and successfully executed an IBD Team Member draft —  selecting up to four MBA Team Members for each project team.

Team Lead Reveal on Feb 1st

Team Lead Reveal on Feb 1st

This spring we are partnering with 16 client organizations in 12 different countries, spread across four continents.  Six clients from last year’s spring and summer programs, as well as three organizations from past IBD project years, have returned to work with our IBD FTMBAs on a project this spring. Our 16 Team Leads have certainly hit the ground running with their IBD projects, and they are looking forward to the first day of the full IBD class (March 15th), when incoming IBD Team Members officially join their project teams. 

We asked each of our Team Leads and Faculty Mentors to describe their impressions of their IBD projects, the “Big Reveal” of projects to the students, and what excites them about this stage of the IBD program.  Here is what they had to share:

“I am excited about the European expansion plans of Piri. It is such an ambitious and interesting project, that if it is successful it will have a big impact within YGA. So far it has been a great experience getting to know the team and the unique culture of YGA.” Team Lead Daniel Mombiedro

Catherine, Jocelyn, Daniel and Sara

“My Team Leads are in the throes of work planning and are really getting their arms around the client issues and available information. It’s so great to see them taking charge of the client relationship, and bouncing hypotheses off their client teams. I can tell their clients are excited about it, too. Keep up the good work, everyone!” Faculty Mentor Judy Hopelain

“’I’m incredibly excited about both the scope of my project as well as returning to explore Latin America after many years away! Although the amount of work in front of us is daunting, my (TBD) team is amazing and I’m highly confident in our ability to deliver a great set of insights for our client.” Team Lead Colin Dunn

“I only wish I could go on these​ trips with all the students as our clients are doing incredibly important and impactful work in fascinating places.” Faculty Mentor David Evan Harris

Jorge Tellez

Jorge Tellez

“I can’t wait for the Big Reveal tomorrow. I have seen so many IBD students walking around, and I just want to shout with excitement about where they will be going and what cool project they will be on. I’m looking forward to meeting members of my team (some for the first time!) and getting them excited about our work together!” Team Lead

Catherine Soler

“I could not be more excited to be working for Ford in Shanghai this semester. Having accepted an offer to work as a consultant this summer, I’m anxious to begin developing my consulting toolkit during IBD and deliver a great project to our client.  It’s going to be an amazing experience and I’m excited to onboard my team and get things going!” Team Lead James Westhafer

Tech Team Drafting Team Members

Tech Team Drafting Team Members

“I’m very excited about my project, and I’m thrilled to be leading the first IBD team to work with Majid Al Futtaim

James Westhafer

Holding. I am confident that this project will be the beginning of a long and meaningful relationship between Majid Al Futtaim and Berkeley Haas.” Team Lead Jorge Tellez

“Being a Team Lead is a big responsibility, but I’m comfortable with the great support we have from our Faculty Mentors and the executive coaching program.” Team Lead Melea Atkins

Team Lead Reveal

Team Lead Reveal

“Our Team Leads are fantastic: full of enthusiasm and undaunted by somewhat ambiguous and ambitious client project scopes!” Faculty Mentor Whitney Hischier

 

“I’m excited for the opportunity to develop my team leadership style with a group of all-star MBAs. I also can’t wait to develop a team experience that supports all of our professional and personal development.” Team Lead Michelle Boyd

“I’m really looking forward to the Big Reveal and introducing my team to the Seva Foundation project. My team has a strong and diverse set of healthcare experiences, and I can’t wait to see how we can tackle our project together.” Team Lead Jocelyn Brown

Natalie Bauman

Natalie Bauman

“I originally wanted to a be a Team Lead to push myself outside of my comfort zone and gain experience leading peers. Choosing the team and realizing how impressive and awesome my teammates are has made me even more excited/nervous about the opportunity to be a Team Lead!” Team Lead Natalie Bauman

“I’m excited about the project and client! Working with a repeat client sets a high bar, but also makes it a little easier since the client knows what to expect from a project like IBD. This was one of the top projects last year, and I’m happy to have the opportunity to work with this client.” Team Lead Stan Cataldo

“I continue to be impressed by the talent pool at Berkeley Haas.  It really was an embarrassment of riches that we could draw upon for our IBD teams.” Faculty Mentor Frank Schultz

The IBD program is indeed very fortunate to have these talented MBA Team Leads working with our international clients.  We are looking forward to expanding the energy and talent of this group with an additional 64 MBAs, when we welcome them into the IBD fold on March 1st for the “Big Reveal.”

 

 

IBD Welcomes New Faculty Mentor David Evan Harris to the Spring 2018 IBD Program

David at the Berkeley Art Museum and Pacific Film Archive exhibit of the Global Lives Project (2017)

David at the Berkeley Art Museum and Pacific Film Archive exhibit of the Global Lives Project (2017)

This year we are thrilled to welcome David Evan Harris as the newest member of our Spring IBD Program Faculty Mentor team.  We are excited to see David join the IBD family, where he can share his international work experience and passion for social impact.  His extensive background and skills will have a positive effect on both our IBD students and our project clients.

David’s interest in international work started when he was an undergraduate at UC Berkeley, and it has continued to drive his career ever since.  Two years after graduating from Cal, while living in Brazil, David founded a nonprofit called the Global Lives Project—a video library of life experience around the world, produced by thousands of collaborating filmmakers, photographers, and translators.  The Global Lives Project was designed to spark conversations about race, religion, diversity, gender, and class. In a recent article written by UC Berkeley’s Kathleen MacLay, David shared that “Global Lives challenges audiences to reflect deeply about their place in the world and the moral and ethical responsibilities that come with that.”  (To read more from MacLay’s article, click here).  David’s work with Global Lives Project called on him to make presentations to audiences at the Smithsonian, Harvard, and United Nations University, among other institutions.  He has been supported in his work by groups including the National Endowment for the Arts, Rockefeller Foundation, Hewlett Foundation, the Goldman Fund and more.

David also serves as Research Director at the Institute for the Future (IFTF), where he leads research on the future of philanthropy, media, governance and social movements.  Building on this research, he has served as an advisor and consultant to dozens of foundations, government agencies, and corporations.  His writings have been published by the BBC, The Guardian, Focus on the Global South, Hivos, Alternet and Grist, and his work has been translated into dozens of languages.

David hard at work at the Institute for the Future with his coworker Sara Skvirsky and IFTF Fellows Lance Coleman and Milicent Johnson (2016)

David hard at work at the Institute for the Future with his coworker Sara Skvirsky and IFTF Fellows Lance Coleman and Milicent Johnson (2016)

In 2015, David returned to UC Berkeley and added Chancellor’s Public Scholar and Berkeley Haas Lecturer to his long list of professional roles.  We recently interviewed David to ask more about his background and what he hopes to bring to the IBD program.  

Question: What brought you to Haas?

David Evan Harris: “Whitney Hischier (current Berkeley Haas Lecturer, IBD Faculty Mentor and Faculty Director at Berkeley Executive Education) brought a couple of groups of international executive education students to IFTF in Palo Alto.  After two of those sessions, Whitney and I had a conversation about teaching a class at Haas in scenario planning and that was my first course at Haas; Scenario Planning and the Futures Thinking.  I still teach that course -which is an Evening Weekend course for MBAs.  I also teach two classes in the undergrad program; Social Movements and Social Media and Civic Technology.  Civic Technology is a freshman and sophomore seminar so I get to work with the freshest minds on campus.  I am excited to add IBD as my fourth class.”

Question:  Tell us about your career and how it relates to your business experience?

David Evan Harris: “I started a nonprofit organization which is the Global Lives Project.  It is a unique nonprofit in that, it has no employees but thousands of volunteers all over the world.  Those volunteers have produced over 500 hours of footage of 20 different people from 17 countries for 24 hours straight.  It is on exhibit right now at various Museums around Berkeley (click here for the schedule) and will be on display at Chou Hall in the spring.  The project has a big part of my life for 14 years which makes me a strange kind of entrepreneur, a nonprofit founder and a founder of a network organization.  I have also been very lucky to work with IFTF and had the opportunity to work with a lot of very large institutions, helping them do strategic planning and think about how they can be responsible players in shaping the long-term future of the world.”

Question:  How are you feeling about being a part of the IBD Program?

David with his advisor, Professor Sedi Hirano, just after completing the defense of his master's thesis at the University of São Paulo. (2008)

David with his advisor, Professor Sedi Hirano, just after completing the defense of his master’s thesis at the University of São Paulo. (2008)

David Evan Harris: I am really excited about joining the IBD program as I have been hearing great things about it from people at Haas for years now. I am also excited to be working with this team, especially with Whitney, as she was one of the first contacts I had here at Haas.  I am also very excited about the way that IBD fits into the work I have been doing with public sector and nonprofit organizations. After I graduated from Berkeley as an undergrad, where I studied Political Economy of Development and Environment, which was the focus of my major in the Interdisciplinary Studies Program, I lived in Brazil for three years.  I studied sociology at the University of São Paulo.  As an undergrad, I also studied abroad on the International Honors Program in five different countries; Tanzania, India, the Philippines, Mexico and the U.K.  I have also been very lucky through my work with the Global Lives Project and IFTF to travel to and do work in dozens of countries all over the world.  The idea of being part of this international program within Haas is really thrilling for me, especially because study abroad and international work has had such an immense influence on making me the person I am today.”

Question: Are there any specific learnings or skill sets that you bring to the program that you want MBA to take full advantage of?

David Evan Harris: “Yes, absolutely, as a student from an American university, it is very important when you work internationally that you bring a lot of humility to that work.  It is essential that you acknowledge that even though your clients are hiring you because they see you as bringing cutting-edge knowledge and experience to the work, you really need to listen very carefully and do everything you possibly can to understand the culture where you are working.  You must also understand that, as a visitor, you can’t truly understand the culture where you are working, and you must be there as a supporter and not an authoritarian consultant who acts like they know everything. That is one thing I want to bring to the program.  I also have a lot of experience working with NGOs, nonprofit organizations and with public-sector groups in other parts of the world. I am excited to work with students who are interested in working with those types of organizations. I hope to develop their skills in offering business expertise, which is very, very, much needed in those sectors, and in a way that is aligned with the public-minded missions of people and institutions doing that work.”

Question: How do you find time for everything you do?

David Evan Harris: “Over the years I have managed to juggle a lot of different relationships with different institutions.  I have different techniques but the key thing is to be part of great institutions that have really valued the work that I do and made it possible to be involved with them in ways that fit into my jigsaw puzzle of a schedule.”  

Question: Do you have time to do anything that is not work-related?  

David Evan Harris: “Most of the time when I have free time, I tend to spend it with my twin seventeen-month-old children. They are a joy and educational opportunity for me.  That takes up most of my non- working time and I also enjoy getting some sleep when I can. I also try to make time to do the other things.  I love to hike and sometimes I take my kids along in our off-road stroller. You might also hear me zipping up to campus on my electric bicycle, which is a form of transportation and also a form of recreation and exercise.”

Question: Where is your favorite place to visit in the world?

David Evan Harris: “I have a long-standing special relationship with Brazil. It is such a big country that every time I go there, I see new and learn new things.  After living there for three years, Brazil became a part of me and part of my identity.  Whenever I have a chance or the option of where I want to go, I go back to Brazil.”

Question: Is there a place you would like to visit in the world that you haven’t been to yet?

David Evan Harris: “I have been trying to get to Cuba.  I am fascinated by Cuba, Cuban culture, economy, politics and I am very interested in going at some point.”   

Question:  Do you have a defining principle that you are working on right now and plan to apply to your role at IBD?

David Evan Harris:  “Beyond Yourself” is definitely my favorite defining principle. In my teaching work at Berkeley Haas, I constantly strive to surface the ways in which movements for social change are so deeply enmeshed in economic relationships and business challenges. Non-profit organizations that have sprung up parallel to grassroots movements like #MeToo and #BlackLivesMatter are critically important to understand as management challenges. Fundraising is almost always a struggle for these organizations, as are management and measurement of outcomes. The specifics of these challenges are often distinct from those faced by for-profit companies and merit systematic study, analysis and engagement from faculty and students at Haas. In my work this semester with IBD, coaching teams working with non-profit and for-benefit corporations, I intend to bring the “Beyond Yourself” ethos together with rigorous applied scholarship and consulting. I hope that this experience will fit into a lifelong engagement on the part of my students with the businesses—both non-profit, for-profit, and the many shades of gray emerging in-between—that are guided not by the pursuit of self-enrichment of their own leaders, but on the world beyond.”

This concludes our interview with our newest IBD Faculty Mentor, David Evan Harris.  Thank you, David, for going “Beyond Yourself” in all the work you do at the IFTF, at the Global Lives Project, and at Berkeley Haas.  We look forward to the impact you will make on the Spring 2018 IBD program over the course of the next few months.

IBD’s David Richardson Travels to India and Singapore to Meet with Friends of the IBD Program

Berkeley-Haas alumni event in Bangalore

Berkeley-Haas alumni event in Bangalore

During the month of October, IBD Director of Business Development David Richardson traveled to India and Singapore to meet with Berkeley-Haas alumni and friends of the IBD program.

David’s travels included a few days in Bangalore, where he met with local alumni gathered together by Aditya Gokarn of Triton Valves Ltd.  He also visited with managers from Lucep, Housejoy, and Hotelogix.

After Bangalore, David flew to Pune, where he met with the management team of ElectroMech Material Handling Systems, and visited their factory floor.  He also paid a visit to Divgi TorqTransfer Systems and Lend-A-Hand India (a local NGO).

Meeting with Freedom English Academy class in New Delhi

Next up was New Delhi, where David met with USAID at the U.S. Embassy, toured a Freedom English Academy classroom, and co-hosted a Berkeley-Haas alumni event along with Abhishek Khemka of Nandini Impex.  The next day included a visit to World Health Partners.

After New Delhi, David traveled to Singapore, where he met with the startups Banff Cyber Technologies and Lucep.  He also met with the Counsellor, Innovation and Trade Affairs, for the Embassy of Finland in Singapore.  

Check out some of David’s India and Singapore trip photos here: https://flic.kr/s/aHsm4VfjW9

Berkeley-Haas alumni event in Delhi

Berkeley-Haas alumni event in Delhi

 

Team Flowers and Team Samai Present at the 2017 IBD Conference

Team Samai After the PresentationTwo student teams were chosen to present their IBD projects to the audience at the 2017 IBD Conference.  IBD Team Samai was the first to present.  This team was made up of Evening and Weekend MBA students Sushant Barave, Bill Conry, Dan Conti and Joe Layton.

Team Samai worked with a rum distillery in Phnom Penh, Cambodia.  While Team Samai had a fun project, the students also talked about the impact they had on the Samai organization, as well as the recommendations they gave their client so they could scale the business “tactically and strategically.”  The student team also focused on making sure their suggestions were actionable once they left and, in fact, Samai was already Samai-presenting-with-power-pointimplementing some of their recommendations before they departed Cambodia.  Team Lead Sushant Barave declared, “I was surprised at how rewarding that feeling can be — that you design something, you recommend something, and the client is taking action on that.  That was the best part of it.”

The second student team to make a Conference presentation on stage was Team Agripacific Holdings, aka Team Flower.  Full-Time MBA students Mary Harty, George Panagiotakopoulos, Laura Smith, Leah Finn and Anne Kramer made up the team.  In order to understand the flower business in Asia, Team Flower traveled across China, visiting flower markets and distributors in Kunming, Beijing, Shanghai, Hangzhou, Guangzhou and Hong Kong.

Team Flower 4 of the 5 and flowersTeam Flower member Leah Finn said about the IBD Conference that “it was definitely fun to reflect on our experience in China, and to learn a bit about how it contrasted with the other projects. It helped me appreciate how adventurous and hands-on our IBD experience was.  I think it’s rare to get to experience so many different sides of China in one trip, so I’m grateful that we were able to have that experience as part of the IBD course.”  Team Lead Mary Harty agreed by sharing that “it felt great to share our experiences with the broader IBD community. As we presented, the photos and slides bought back so many fantastic memories for us all!”  To view the photos from the Conference, click here.Team Flower- Presentation for web.jpg

 

 

Team Flowers: A Flower Market Tour of China

Written by Leah Finn, Mary Harty, Anne Kramer, Laura Smith, and George Panagiotakapoulos

A hydrangea greenhouse at Kunming Hasfarms

A hydrangea greenhouse at Kunming Hasfarms

Agripacific Holdings is a holding company that owns a number of cut flower farms and distribution centers across Asia, including its two main growing sites, Kunming Hasfarm in Yunnan, China, and Dalat Hasfarm in Dalat, Vietnam. For our IBD project, our team (a.k.a, Team Flowers) partnered with Kunming Hasfarm (KMH) to develop a marketing strategy for selling cut flower crops throughout China – at the moment, most of KMH’s flowers are exported to Japan, while the domestic market is primarily served through a small scale of imports from Dalat Hasfarms. As Chinese incomes rise, a growing middle class is spending more money on luxury home products like flowers, creating a promising market. KMH tasked our team with helping them strategically scale their domestic sales of cut flowers by considering the optimal target customers and sales channels.

For our in-country visit, KMH planned an itinerary that would give us a thorough look at the flower industry in China by visiting six cities – Kunming, Beijing, Shanghai, Hungzhou, Guangzhou, and Hong Kong – to tour flower markets, interview wholesaler customers, and even visit the farms of several of their competitors. Luckily for us, this meant we got to experience a diverse range of Chinese cultures, food, and sights as we learned about some of the nuances of each local market.

We began the trip in Kunming, a small (by China standards) city of 6 million in the western Yunnan province. We spent two days touring KMH’s greenhouses and learning about the processes of growing carnations, green wicky (a fuzzy green flower described to us as “soft, like a panda’s face), and hydrangeas. We also visited the Dounnan Flower Market, one of the largest flower wholesaler markets in China. The coolest part about this was the flower auction: an enormous warehouse full of lower-quality flowers (mostly roses) and a huge room to the side where wholesalers gathered to bid on them, Dutch auction style while smoking heavily and doing business on cell phones. It was quite a sight!

Flower auction in Kunming

In Beijing, Shanghai, Hungzhou, and Guangzhou, we visited KMH’s largest wholesaler customers and the Shanghai-based distribution center for the import business. Through our many interviews, we learned that KMH has a strong reputation as a high-quality grower; most of their wholesaler customers would buy more flowers from them if not restricted by supply. Since the China-based farm already had plans to expand growing, we saw an opportunity to organize their Shanghai- and Beijing-based sales teams to begin selling domestic product in those regions, rather than solely managing the import business.

Another powerful opportunity we recognized for KMH is the meteoric rise of e-commerce that has taken place in the past few years, impacting all industries. In many ways, China has surpassed the US in its use of technology in commerce: for example, rather than credit cards, nearly everyone pays for things by scanning a QR code on the item with an app on their phone called WeChat. In the flower industry, many startups have innovated by offering weekly flower delivery services through a subscription model, and several wholesalers have shifted all of their operations online. We had the chance to interview several contacts from these companies to learn about their innovative models. A key question we investigated for KMH was how they could incorporate technology into their business model, and how far down the value chain they should reach to implement it – that is, whether to switch from B2B (selling to wholesalers) to B2C.

Team looking over Beijing with 2 of KMH’s staff acting as our tour guides

The trip concluded with a trip to Hong Kong, where we delivered our final presentation at Hasfarm’s office there. In addition to recommendations about reorganizing their sales force and adopting a technology platform to track customer data, we discussed the trend we observed of new flower companies, particularly in the eCommerce model, shortening the value chain (typically grower to wholesaler to retailer to customer) to increase margins and lower prices beyond the offerings of their more traditional competitors. We encouraged KMH to pay attention to competitors adopting this model as the market grows.

Overall, we were incredibly impressed by the hospitality provided to us by our clients and associates in the industry. After nearly every interview or market visit, we were taken to an elaborate meal, treated to a tea ceremony, or toured around sights like Tianenmen Square by members of the KMH staff or their wholesaler clients. We feel lucky that this experience introduced us to the warmth, beauty, and diversity of China.

Que Alegre! Updates from Guatemala City

Written by Peter Wasserman, Ian Collazo, Kevin Schuster, Michelle Hernandez and Rachel Garrison

FTMBA students Peter Wasserman, Ian Collazo, Kevin Schuster, Michelle Hernandez and Rachel Garrison traveled to Guatemala City during May 2017 to work with the fourth-largest, family-owned, home goods, hardware, toy, and baby retailer in Guate mala: Cemaco.

Guatemala City

Our team arrived in Guatemala City during an exciting time for retail. Last year, the retail industry grew 13%, with growth driven by middle/high-end of the market in Guatemala City. Our client Cemaco benefited from these demographic trends, increasing revenue despite growing competition, doubling the number of stores, and receiving recognition as one of Guatemala’s most recognized brands.

Cemaco came to IBD looking for big ideas to meet aggressive revenue and profitability goals.  Among the five pillars for growth highlighted in the 2020 vision, our team was tasked to develop strategy and implementation roadmap to become the dominant e-commerce retail player in Guatemala.

The Initial Research

E-commerce is nascent but growing in Guatemala City. In 2016, e-commerce grew by 20%, mainly used by the young, urban, upper class.  Cemaco launched their beta e-commerce site in April of this year, allowing us to work in parallel with the team and project.

Prior to arriving in Guatemala City, our team conducted secondary research on the industry, competition, company, and customers to make the most of our time in-country. We sent a survey to 600 active and 250 lapsed Cemaco customers and received 80% response rate. This amazing level of loyalty and commitment from the customer base was incredible – we were excited to meet the team and customers during the coming weeks!

Arrival in Guatemala City

Arriving on Saturday, May 13th, we were greeted by the Cemaco team for a tour of the city.  We stopped by a local market, picked up groceries, and of course visited a Cemaco store.

First Days at the Office

Our day of arrival presentation gave us helpful feedback to move forward with our proposal. Meeting with the team, we felt incredibly welcome. Not to mention, it was Peter’s birthday! The team took us out to lunch and we celebrated over cake!

Learning about the market

To learn about the market, we focused our time visiting Cemaco and competitor stores, going to the warehouse to see the e-commerce logistics firsthand (and ride a forklift together!), and conducting in person interviews at Cemaco stores. These experiences helped us understand

  • What obstacles/profitability challenges Cemaco will face: Labor is very cheap in Guatemala. From a logistics perspective, Cemaco has been very flexible and fast, figuring out how to package and deliver e-commerce orders in 1-2 days
  • How Cemaco sets itself apart from the competition: Cemaco is a customer first company that puts its stores at the center of its experience. Cemaco stores are welcoming, bright, and customers enjoy spending time browsing the wide variety of products
  • Why customers love Cemaco: As an established, family owned company with Guatemalan roots, customers are extremely loyal. They feel that they can find everything they need for their homes at Cemaco, and expect to find high-quality products.

Weekend trips 

As our classmates pointed out to us, our team didn’t just work…our client Cemaco planned amazing weekend trips for us. First, we went to Lake Atitlan, where we enjoyed an amazing view of the lake, mountains, and volcanoes went on a nature hike with swinging bridges and saw ancient Mayan ruins.

On our second weekend, we hiked the Pacaya volcano where we roasted marshmallows on top and visited the beautiful, historic Antigua.  Walking down the cobbled roads, we took in the architecture and culture of the city – from carrot ice cream to a speakeasy bar called “No Se,” we tried to find all the hidden gems that Antigua had to offer.

Final Presentation

Back at work, in our final presentation, we recommended that Cemaco prioritize its growing B2B business through an e-commerce platform, and developed a customer-first omnichannel experience plan for both existing and new customers. We were especially excited about our plan to partner with apartment buildings in the nearby Zone 4, known as the “Silicon Valley of Guatemala City,” where first time renters were moving out of their parents’ home before getting married. The team took us out to drinks to celebrate!

In Conclusion

Guatemala is an amazing country and the people are incredibly warm and welcoming. We were so impressed by the culture that Cemaco has created and kept strong over the past 40 years, encouraging their employees to move across functions, pursue continuing education, push for corporate social responsibility, and experiment with new business strategies. We are excited to see what’s next for Cemaco!

Updates from IBD Shanghai – ARM Accelerator

Written by Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller

FTMBA students Harsh Thusu, Jennifer Hoss, Justin Wedell, Chris Roberts, and Amanda Eller traveled to Shanghai, China during summer 2017 to work with ARM Accelerator.

IBD team in the ARM Accelerator Shanghai office

The Internet of Things (IoT) involves embedding objects in our surroundings with sensors, which capture data and make decisions without the need for human intervention. IoT is poised to change the world, and our client, ARM, is playing a major role in the IoT revolution. ARM is a multinational semiconductor company that designs architecture for the chips that power our smartphones and tablets. Over the next 20 years, ARM expects to deliver 1 trillion chips for IoT devices.

Two years ago, ARM China launched the ARM Accelerator to support IoT startups. Our five-person IBD team traveled to Shanghai to work with ARM Accelerator, helping them develop a strategy to attract Silicon Valley startups, and crafting a plan to diversify their revenue sources.

Initial Research: Bringing Silicon Valley to China

IBD team members Jen, Harsh, and Chris presenting our recommendations to ARM leadership

Our initial challenge was to advise ARM Accelerator on a strategy for attracting U.S. startups. We hypothesized that U.S.-based startups would not want to travel to China for the program, and anticipated recommending a Silicon Valley office. To test our hypothesis, we spoke with founders from 12 different IoT startups in the U.C. Berkeley ecosystem.

We were surprised to learn that virtually all of the founders had either already spent time in China, or anticipated going in the near future. The primary reason for Chinese travel was to connect with manufacturers, but several startups were also interested in meeting Chinese investors and customers.

IBD students with ARM Accelerator leadership, including Allan Wu (center), President of ARM China and Haas MBA ‘96

We also discovered that most startups learn about accelerators through their networks. The ARM brand is strong, but few startups had heard of ARM’s accelerator, underscoring the need for business development efforts and localized marketing content in Silicon Valley.

Evaluating the Accelerator Business Model

In the weeks leading up to our trip, we expanded our focus. At two years old, ARM Accelerator is still a startup, and they wanted insights into how other accelerators achieve financial sustainability. We analyzed successful accelerators from around the world, and compiled preliminary recommendations to test in-country.

IBD team member Jen Hoss at the TechCode Shanghai Accelerator, testing an Augmented Reality windshield

 

Day of Arrival

On May 12, we flew to Shanghai. None of us had ever visited mainland China, and we were eager to meet the ARM Accelerator team and learn more about the Chinese startup ecosystem.

ARM Accelerator founder Andy Chen and head engineer Shi Lei gave us a warm welcome, and briefed us on an itinerary packed with interviews. Over the following days, we met with ARM Accelerator graduates, venture capital investors, other accelerators, and the local government. We even attended a presentation in which ARM Accelerator companies pitched their autonomous vehicle technologies to representatives from BMW.

IBD team members from left to right, Jen Hoss, Justin Wedell, Amanda Eller, Chris Roberts, and Harsh Thusu, meeting with bike-sharing startup MoBike.

Interview Highlights: TechCode, Shanghai government, and MoBike

TechCode is an accelerator and incubator started in China, with locations all over the world. Daphne Han provided insights into the benefits of the accelerator for TechCode’s corporate sponsor. She also gave us a tour of their co-working office space, and IBD team member Jen got to test a TechCode company’s “Smart Windshield,” which uses Augmented Reality to provide real-time information to drivers.

Another highlight was our meeting with Zhang Lan from the Shanghai government’s Development and Reform Committee. Mr. Lan shared fascinating insights about the government’s role in supporting entrepreneurship, and the incentives available to ARM Accelerator companies.

Mr. Lan then brought us to the MoBike headquarters. MoBike is a bike sharing startup that has taken

IBD team at the MoBike Shanghai office, with Shanghai government official Mr. Zhang Lan and our ARM colleague Allan Zhong

China by storm, with support from the government. 25 years ago, Shanghai was full of bicycles, but their replacement with motorcycles and cars has exacerbated pollution. MoBike is reversing the trend, and we were impressed by the number of Chinese taking advantage of MoBike. MoBikes can be parked anywhere, and locked or unlocked with a smartphone app; each morning the bikes pile up in front of office buildings, and by evening rows of MoBikes surround the metro stations.

Our ARM Accelerator hosts took us for a traditional Chinese business dinner, which meant plenty of baiju, or Chinese spirits

Eating our way across China

The team made the most of our free time by trying every dumpling we could find. We learned about the art of handpulled noodles, sampled Uigher-style barbecue, and tasted Schizuan Province’s spicy mala peppercorns.  We even contemplated opening a Berkeley franchise of China’s popular Yang’s Dumplings chain.

Between meals, we climbed the Great Wall, explored Beijing’s Forbidden City, and hiked the mountains surrounding Hangzhou’s famous West Lake.

And throughout our trip, we were greeted by local Haasies. Alan Wu, President of ARM China and Haas MBA ‘97 provided valuable feedback throughout our project and shared his visions for China’s technological future.

Making new friends over a Beijing-style hotpot dinner

And the Haas Shanghai Alumni group welcomed us with a happy hour, where we met two incoming classmates to the class of 2019.

After a successful three weeks in China, we are excited to continue following ARM Accelerator’s progress as they help build companies shaping the future of IoT.

Phnomenal Times

Written by Sushant Barave, William Conry, Daniel Conti and Joe Layton

For our IBD project, we’re working with Cambodia’s first and only rum distillery, Samai, based in Phnom Penh. Our team is partnering with Samai’s founders, Antonio and Daniel, on expansion strategy, new market pricing, operational improvement and accounting guidance.

Prior to arriving in Phnom Penh we had been corresponding with Samai to finalize the scope of the project and complete as much pre-work as possible. While our team was productive across those six weeks, it was remarkable how much more effective we became on location with the client. For instance, we had an idea of what the rum production process looked like, however being able to visualize the steps enhanced our understanding to the level required to make recommendations.  Additionally, speaking face to face with Daniel, Antonio and Champich, the master distiller, we were able to have more insightful conversations and gain a better feel for the business and its needs.

Dan and Sushant review the production steps with Daniel in order to calculate COGS

Dan and Sushant review the production steps with Daniel in order to calculate COGS

Another byproduct of live meetings is shifting priorities. While the project work streams had been determined in advance of our arrival, it became clear our first-day additional challenges that require support will surface. Our team recognized the importance of prioritization as a guiding principle – we need to invest our time and resources into the projects that are most vital to Samai and also ensure our deliverables are actionable.

 

Cocktail Competition

Samai’s distillery is open to the public on Thursday nights, when it serves up Samai rum-based cocktails to a lively, mostly expat, clientele. During our required rum tasting our first day on the job I suggested –  somewhat jokingly –  that we have a competition on Thursday to determine which Haas team member can create the best cocktail. Antonio sounded intrigued and within a day we had teams decided, menus set, ingredients purchased and a professional flyer posted on social media. That escalated quickly!

Dan and I settled on a variation of a Dark and Stormy entitled Ann’s Arbor, an homage to our undergraduate institution. Leveraging Joe’s advanced rum knowledge, he and Sushant crafted a more complex, boozy concoction, a Queens Park Swizzle.

We met at the distillery early to pour practice drinks and tweak the recipes until we had it right. This was not just a fun experiment; patrons would be paying for these cocktails! Once we had the proportions, preparations, and presentations down, it was game time.

It could have been the Berkeley-Haas name on the flyer, perhaps it was the sophisticated drink selection or maybe it was our rugged good looks and charm behind the back bar, but the orders flowed in like Trump tweets after a New York Times bombshell report.

Bill and Joe try to keep up with demand behind the bar

Bill and Joe try to keep up with demand behind the bar

At a few points we couldn’t keep up with the demand – we were forced to act like seasoned bartenders who knew how to accommodate a packed bar.

For the competition piece, believe it or not, according to the official tally the contest ended in a tie! The Ann’s Arbor team will point out that our drink had a higher volume of orders, which should be the tie breaker. The Queen Park Swizzle duo will remind us that more orders led to more misinformed votes from those who only sampled one beverage.

Regardless of who deserves the crown, overall the cocktail competition was a win. We learned useful skills that aren’t often taught in the classroom, had fun, brought in incremental sales for Samai and met some interesting people.

After shaking and stirring as celebrity bartenders for the night, it was back to our real lives Excel modeling and PowerPoint-ing as consultants at the Samai office the next morning. It was fun while it lasted, but there’s still work to do!

Back to work

Back to work