Design In Tech Report - 2016

2 0 1 6 DESIGN IN TECH John Maeda Design Partner | Kleiner Perkins Cauﬁeld & Byers REPORTMarch 14, 2016 KPCB Team // Jackie Xu, Aviv Gilboa, Justin Sayarath With Special Thanks to // Michael Abbott, Juliet de Baubigny, Scott Ryles, Lynne Chou, Christina Lee, Andy Chen, Muzzammil Zaveri, Arielle Zuckerberg Designed By // Luna Chen ӧౢჷ, Danqing Wang Ԧ୮੨ // China Design தࠃഡ࠹ 1

2 0 1 6 Design isn’t just about beauty; it’s about market relevance and meaningful results. M&A activity continues in the design space, and it’s increased. Increasing the designers needed in the tech industry requires rethinking education. The adoption of design by public companies is only growing. Designers bring needed critical thinking/making in the economic case for inclusion. Work in the research labs from decades ago drives today’s startups. Be aware. 2

“89% “81% “90% “6X of companies believes that customer of executives surveyed place the of executives surveyed agreed that more likely to buy with a positive experience will be their primary basis for personalized customer experience in customer experience and engagement emotional experience, 12x more likely competition by 2016, versus 36% four their top three priorities for their are objectives of their corporation's to recommend the company, and 5x years ago.” organization, with 39% reporting it as her digital strategy.” more likely to forgive a mistake.” — Gartner top priority.” — MIT Sloan / Deloitte — Temkin Group — Accenture EXPERIENCE Matters A Lot, Because We Experience Digital Products A Lot Ouch! Ouch! early desktop Once in the morning Once in the evening users checked “ “ their computers all day long and whenever they can today mobile users check their smartphones Reports from Gartner, Accenture, Deloitte, Temkin all indicate that experience matters. Linda Holliday calls the new kind of design as “multi- dimensional” — it crosses social science, computer science, into something new and necessary. Source // @kpcb #DesignInTech @Gartner_inc @AccentureDigi @mitsmr @DeloitteDigital @TemkinGroup experiencematters.wordpress.com/2016/02/04/15-customer-experience-factoids-from-2015-infographic/ sloanreview.mit.edu/projects/strategy-drives-digital-transformation accenture.com/us-en/_acnmedia/Accenture/Conversion-Assets/Microsites/Documents11/Accenture-Technology- Vision-2015.pdf blogs.gartner.com/jake-sorofman/gartner- surveys-conﬁrm-customer-experience-new-battleﬁeld/ blogs.gartner.com/jake-sorofman/gartner-surveys-conﬁrm-customer-experience-new-battleﬁeld/ 3

THE 1ST DESIGN INTECH REPORT Beat Expectations, with Room for Improvement cumulative views across all 875K English, Spanish, Chinese, Japanese editions and 1 redesign… Simpliﬁed & Redesigned The inaugural 2015 #DesignInTech Report received way more views than we initially projected at 50K in the ﬁrst year. We also received a helpful re-design from our new friends in Canada. Source // @kpcb #DesignInTech @slideshare @stinsondesign slideshare.net/stinsondesign/kpcb-design-in-tech-report-2015-simpliﬁed-and-redesigned 4

#DesignInTech PREDICTIONS From Last Year’s Report M&A activity of designer-led Designer-led startups will have Design in VC is not about pretty businesses will likely grow. increased access to capital. — it’s about relevance. experience Older user experiences will improve. 1 Designers will grow as executives. 2 Design’s business value will evolve. 3 DESIGN DE$IGN Fortunately, 100% of last year’s report’s predictions have come true. So that means we need new ones. Source // @kpcb #DesignInTech @johnmaeda kpcb.com/design 5

The New Kind of Designer is TBD 2 4Design Quality is to Caring SECTIONS 5Final Thoughts 1#DesignInTech By The Numbers 3Public Company Trends 6

1 #DesignInTech By The Numbers Design ﬁrm acquisitions continue: 42 design ﬁrms have been acquired since 2004, ~50% of which have been acquired in the last year alone. Designer co-founded companies exhibit funding success: 36% of top 25 funded startups are co-founded by designers, up from 20% in 2015. Designers in venture capital have increased: More designers entered VC in the last two years than the previous four years combined. 7

Timeline of #DesignInTech M&A Activity | Version2.0 2004 – 2012 2013 2014 2015 2016 ■ FLEXTRONICS ■ FACEBOOK ■ FACEBOOK ■ AIRBNB ■ PIVOTAL ■ OCULUS / FACEBOOK +acq. Frog Design 2004 +acq. Hot Studio 2013 +acq. Carbon Design 2014 +acq. Teehan+Lax 2015 +acq. lapka 2015 +acq. Slice of Lime 2016 ■ MONITOR ■ ACCENTURE ■ GOOGLE ■ BBVA ■ COOPER *consolidation ■ IBM +acq. DOBLIN 2007 +acq. Fjord 2013 +acq. Gecko Design 2014 +acq. Spring Studio 2015 +acq. Catalyst 2015 +acq. Resource/Ammirati 2016 ■ RIM ■ SHOPIFY ■ CAPITAL ONE ■ MCKINSEY +acq. ecx.io 2016 +acq. TAT 2010 +acq. Jet Cooper 2013 +acq. Adaptive Path 2014 +acq. Lunar Design 2015 ■ SALESFORCE +acq. Aperto 2016 ■ FACEBOOK ■ DELOITTE ■ ACCENTURE ■ CAPITAL ONE +acq. Akta 2015 ■ KYU COLLECTIVE *minority +acq. Sofa 2011 +acq. Banyan Branch 2013 +acq. Reactive 2014 +acq. Monsoon 2015 ■ ACCENTURE +min. IDEO 2016 ■ GLOBALLOGIC ■ INFOR ■ DELOITTE ■ WIPRO +acq. Chaotic Moon 2015 ■ CAPGEMINI +acq. Method 2011 +acq. Hook & Loop 2013 +acq. Flow Interactive 2014 +acq. DesignIt 2015 +acq. PaciﬁcLink 2015 +acq. Fahrenheit 212 2016 ■ ONE KING’S LANE ■ GOOGLE ■ PWC ■ ERNST & YOUNG ■ DELOITTE +acq. Helicopter 2011 +acq. 17FEET 2013 +acq. Optimal Experience 2014 +acq. Seren 2015 ■ FLEX *medical design +acq. Heat 2016 ■ DELOITTE +acq. Farm Design 2015 ■ GOOGLE ■ GOOGLE ■ KPMG +acq. Mobiento 2015 +acq. Mike & Maaike 2012 +acq. Hattery 2013 +acq. Cynergy Systems 2014 ■ FACEBOOK ■ BCG +acq. Bolt Peters 2012 +acq. S&C 2014 ■ SQUARE +acq. 80/20 2012 ■ GOOGLE +acq. Cuban Council 2012 A total of 42 design ﬁrms have been acquired since 2004. ~50% of which have been acquired within the last year with Accenture, Deloitte, IBM, Google, and Facebook as the most acquisitive. Source // @kpcb #DesignInTech @johnmaeda @mbuzzard 8

■ BBVA BANKS Timeline of #DesignInTech ■ CAPITAL ONE SERVICES M&A ACTIVITY ■ MCKINSEY TECH ■ ACCENTURE ■ ACCENTURE ■ CAPITAL ONE ■ ERNST&YOUNG ■ ACCENTURE ■ PWC ■ DELOITTE ■ KYU COLLECTIVE *min ■ DELOITTE ■ KPMG ■ WIPRO ■ CAPGEMINI ■ INFOR ■ ACCENTURE ■ COOPER ■ DELOITTE ■ GOOGLE ■ GOOGLE ■ DELOITTE ■ AIRBNB ■ IBM ■ MONITOR ■ FACEBOOK ■ GOOGLE ■ GOOGLE ■ BCG ■ SALESFORCE ■ IBM ■ FACEBOOK ■ GLOBALLOGIC ■ FACEBOOK ■ FACEBOOK ■ FACEBOOK ■ FACEBOOK ■ IBM ■ RIM ■ ONE KING’S LANE ■ SQUARE ■ SHOPIFY ■ GOOGLE ■ FLEX ■ PIVOTAL 2004 – 2010 2011 2012 2013 2014 2015 2016 1st Quarter A total of 42 design ﬁrms have been acquired since 2004. ~50% of which have been acquired within the last year with Accenture, Deloitte, IBM, Google, and Facebook as the most acquisitive. Source // @kpcb #DesignInTech @johnmaeda @mbuzzard 9

Successful Startups Co-Founded by Designers Are Not Uncommon of the 25 startups with a recent fundraise in CB of the so-called global “unicorn” startups across all sectors 36% Insight’s “Internet Sector” category are designer 21%have co-founders who have embraced design or come from a co-founded design, arts, or human-centered background including architecture, design, music, visualization, ﬁne arts, media arts. RECENCY OF LATEST ROUND OF FUNDING $3B 23andMe, ActiFio, Adyen, African Internet Group, AirBnB, Aiwujiwu, Anaplan, AppDirect AppDynamics, AppNexus, Apttus, Apus Group, Atlassian, Auto1 Group, Automattic, Avant, AVAST Software, Avito, BeiBei, Beijing LaKala Billing Services, BlaBlaCar, Bloom Energy, Blue Apron, Buzzfeed, Carbon3D, China Rapid Finance, CJ Games, Cloudera, CloudFlare, ContextLogic/Wish, Coupa Software, Coupang, Credit Karma, Airbnb Dada, Datto, Decolar, Deem, Delivery Hero, Dianping, Didi Kuaidi, DJI Innovations, Docker, DocuSign, Domo Technologies, DraftKings, Dropbox, Ele.me, Eventbrite, Evernote, Fanatics, FanDuel, Fanli, FarFetch, Flipkart, Forescout, Funding Circle, Gilt Groupe, GitHub, Global Fashion Group, GrabTaxi, Greensky, FUNDING Guahao Technology Co., Gusto, HelloFresh, Home24, Hootsuite, Houzz, Illumio, Infinidat, InMobi, Social Finance InsideSales.com, Instacart, Intarcia Therapeutics, IronSource, Jasper Technologies, Jawbone, jet.com, Jiuxian, JustFab, Kabam, Kabbage, Kik Interactive, Klarna, Koudai Gouwu, Lazada, Legendary TIVE Pinterest Entertainment, Lookout, Lufax, Lyft, Magic Leap, MarkLogic, Medallia, Meituan, Mercari, MindMaze, Moderna, Mogujie, MongoDB, Mozido, Mu Sigma, MuleSoft, NantHealth, Nextdoor, Nutanix, Okta, Olacabs, One97 Communications, Oscar Health Insurance Co., Palantir Technologies, Panshi, Pinterest, Pluralsight, Upstart Powa Technologies, Prosper Marketplace, Proteus Digital Health, Pure Storage, Qualtrics, Quikr, Razer, CUMULA Slack Rong360, Shazam, SimpliVity, Skyscanner, Slack Technologies, Snapchat, Snapdeal, Social Finance, Souq, GitHub SpaceX, Spotify, Sprinklr, Square, Stemcentrx, Stripe, SurveyMonkey, TangoMe, Tanium, The Honest Fab.com Flatiron Health Company, Theranos, Thumbtack, TransferWise, Trendy Group International, TuJia Online Information Fanduel Technology, TutorGroup, Twilio, Uber, Udacity, Ucar Group, Uptake, VANCL, Vice Media, Vox Media, Warby 2014 2015 2016 Parker, WeWork, Xiaomi, Xuanyuxia, Yello Mobile, Zenefits, Zeta Interactive, Zhangyue, ZocDoc, Zomato Media, Zscaler via CB Insights, “Since January 1 2013 to February 29, 2016, in the U.S. via CBInsights, “Private VC-Backed Companies with Valuations Over $1B” Internet-Only category top 25 recently funded VC-backed companies.” Last year 20% (5 out of 25) of the top venture-backed startups had designer co-founders. We check one year later and that number moves to 36% (9 out of 25). Source // @kpcb #DesignInTech @justinsayarath @cbinsights cbinsights.com/research-unicorn-companies 10

Where do Designers Live in the KEY VC CATALYSTS VENTURE CAPITAL ECOSYSTEM? Kleiner Perkins Cauﬁeld & Byers  Michael Abbott Designers are working at VC ﬁrms in a variety of capacities: from operating support roles to investing roles to 2012 created KPCB Design Council founding their own venture capital funds. A key factor in their growth has been GPs who understand the need New Enterprise Associates  for design. Dayna Grayson 2013 created NEA Design Studio True Ventures  2009 2012 2014 2015 2016 Om Malik 2011 created GigaOm Roadmap Conference Bessemer Ventures Designer Fund KPCB Rivet Ventures Benchmark Jason Putorti Enrique Allen John Maeda Christina Brodbeck Scott Belsky Accel Partners  1st designer in residence co-founders of fund co-founder of fund GP Vas Natarajan Slow Ventures Ben Blumenfeld 2014 created Accel Design Conference Dave Morin co-founders of fund Khosla Ventures Accel Partners Google Ventures Andrew Braccia co-founders of fund Irene Au Jason Mayden Jake Knapp 2014 created Accel Design Conference Google Ventures pioneering UX leader New book “Sprint” Aaron Sittig Jake Knapp with John Zeratsky and co-founders of fund Google Ventures True Ventures Braden Kowitz 500 Startups  Daniel Burka Tom Hulme Jeffrey Veen Dave McClure 2010 ﬁrst GP in marquee fund early advocate for design in startups Bloomberg Beta  Google Ventures Andreessen Horowitz Sequoia Capital Expa James Cham Braden Kowitz Elizabeth Weil James Buckhouse Anshu Agarwal early advocate for design in startups 1st design partner co-founders of fund Y-Combinator  Michael Margolis Felicis Ventures Greylock New Enterprise Paul Graham 1st researcher Nick Baum Bobby Goodlatte Associates early advocate for design in startups 2nd designer in residence Albert Lee Y-Combinator Note that some of Jessica Livingston Garry Tan Sutter Hill Ventures these folks have left to early advocate for design in startups 1st YC partner as designer 2013 Andrei Herasimchuk join companies, or to Khosla Ventures  2011 Y-Combinator start them. Vinod Khosla Kevin Hale Expa KPCB Design Council early advocate for design in startups Google Ventures Bruno Bergher John Zeratsky Kyle Doherty Source // @kpcb #DesignInTech @johnmaeda kpcb.com/design 11

#DesignInTech by the NUMBERS 42 design ﬁrms have been acquired 9 of the 25 top VC-funded startups More designers entered VC in the since 2004. Roughly half of which have designer co-founders. Up from last 2 years than the previous 4 have been acquired within the last 5 in 2015. years combined. year. We’re reaching a peak. Designer co-founded companies There are many at accelerators 1 are here to stay. 2 as well. 3 Major corporations are investing in design as a core competency through M&A activity, designer co-founded startups continue to raise billions of dollars in capital, and VCs increasingly see the importance of design. Source // @kpcb #DesignInTech @johnmaeda kpcb.com/design 12

#DESIGNINTECH PREDICTIONS Further Out (5 Year Prediction) The large inﬂux of designers into We will see more designers The general word “design” will top services companies through becoming investing partners at VC come to mean less as we will start M&A activity will reboot the design ﬁrms, and eventually starting their to qualify the speciﬁc kind of design industry. own funds. we mean. Fueled by greater access to the Many designers in tech are active Classical Design vs Design Thinking board room. 1 angels. 2 vs Computational Design 3 Since last year’s predictions happened too early, we set our sights out much further … Source // @kpcb #DesignInTech @johnmaeda kpcb.com/design 13

2 The New Kind of Designer is TBD Currently design education lags the technology industry’s needs for data- oriented, coding-enabled graduates with business acumen. Many resources are available on the internet to supplement formal education in design. Becoming a skilled self-learner is a critical skill for the new designer. Coding and testing are table stakes knowledge for designers today. Designing systems and designing culture are strategic skills for designers. 14

#DesignInTech is Related, Yet RADICALLY DIFFERENT From Classical Design CLASSICAL DESIGN DISCIPLINES LIVING SYSTEMS LIKE FACEBOOK ARE NEVER FINISHED Architecture Interior Design The bigger built environment What surrounds us up close Fashion Design Landscape Architecture What we wear What surrounds our buildings “Design of digital experiences change all the time and live Communication Design Industrial Design inside your pocket… Design of systems that are so big that What we see What products we buy their scale can be hard to comprehend.” — Margaret Stewart @TED 2014 Computational design has been around since the 70s and grew from collaborations between architects and computer graphics folks. In 1996, I founded the MIT Media Lab Aesthetics and Computation Group to further the frontier. Source // @kpcb #DesignInTech @mags @tedtalks @avivgilboa @johnmaeda @medialab ted.com/talks/margaret_gould_stewart_how_giant_websites_design_for_you_and_a_billion_others_too?language=en 15

Classical Design Principles vs. #DesignInTech Principles CLASSICAL DESIGN VS DESIGN IN TECH Number of Active Users Few to Millions Few to Hundreds of Millions Time Needed to Deploy Weeks to Months through Instantaneously Delivered Completed Product Distribution Channels Over the Net “Perfection” is Achievable Yes No There’s a ﬁnal state. It’s always evolving. Designer’s Level of Generally High, but Open to Absolute, and Self-Validating Analyzing Testing/Research Conﬁdence The notion of making something perfect, as classical designers want to achieve, runs counter to how computational systems exist. The instinct and inclination to pursue perfection is a good one, but its deﬁnition has had to evolve. Source // @kpcb #DesignInTech @johnmaeda @avivgilboa kpcb.com/design 16

CHALLENGE #1 CHALLENGE #2/ BUSINESS AND FINANCES AREN’T PRIORITIZED RESEARCH AND ANALYTICS NEED PRIORITIZATION Current design education biases: Desired biases by past design graduates: Which of these attitudes are pillars of your design curriculum? Which of these attitudes do you wish were pillars of your design curriculum? 1. Communicating and/or articulating your design 86% 1. Understanding business and ﬁnances 68% 2. Using empathy to design 66% 2. Using research and analytics to design 60% 3. Rationalizing and/or defending your design 63% 3. Leadership and teamwork 53% 4. Using research and analytics to design 61% 4. Communicating and/or articulating your design 47% 5. Leadership and teamwork 51% 5. Using empathy to design 47% 6. Understanding business and ﬁnances 21% 6. Rationalizing and/or defending your design 38% via a KPCB study of 329 current and former design students via a KPCB study of 329 current and former design students Should You Send Your Kid To Internship Example When working on a project in school, the ﬁnal step was always prototypes, but we didn't DESIGN SCHOOL? YES have time to test the project before moving on to another one. Once I was in the KPCB fellows program and working at a startup, I saw how the testing phase was invaluable. — And Encourage Internships — Kaleigh Yang / 2015 Design Fellow at Spruce Health For #DesignInTech to scale today, a fundamental challenge lies in the diﬀerence between the kind of talent produced by engineering programs vs design programs. New engineers are ready for tech; new designers are less so. Source // @kpcb #DesignInTech @jshoee @ellenchisa @kaleighyang @johnmaeda queue.acm.org/detail.cfm?id=2683579 medium.com/the-year-of-the-looking-glass/how-to-work-with-designers-6c975dede146#.2qih40qzq 17

86% of current design students surveyed said that they learned their digital skills from resources outside How Does One Go About their coursework. LEARNING This New Kind of Design? Barry Katz of Stanford and CCA has written a concise history of #DesignInTech From Lynda’s complete collection of videos, to O’Reilly books on design, to the incomparable A Book Apart library, to events all around the world, to a comic book, to a full-length documentary ﬁlm by InVision—there’s lots to learn. Source // @kpcb #DesignInTech @alistapart @nancyduarte @oreillymedia @creativemornings @mgiudice @lyndaweinman @enterpriseux abookapart.com lynda.com creativemornings.com duarte.com generateconf.com www.generateconf.com 2016.enterpriseux.net designdisruptors.com uxherocomics.com 18

IS CODING “You need to be curious about AND have a basic understanding of the technology that Necessary as A Designer In Tech? is being used to build your design.” — Rochelle King / Spotify “Coding skills can be useful.” “Coding skills are absolutely essential.” “Skills you need: learn to code, deep knowledge of interaction design, and basics of visual design.” + — Maria Giudice / Autodesk “Learn how to write good code. Don't take – just one or two classes, take a lot of classes so that you can think like a “Coding skills are unnecessary.” programmer.” 93.5% — David Dat Nguyen / Gusto “Coding skills aren't important.” of 370 designer respondents “Make sure to learn to code. Design is Junior Mid Senior were overall in favor of coding z becoming more and more complex with each technological cycle.” — Sash Catanzarite / Tradesy Being literate in code is important, but being an expert is not necessarily in your favor. Source // @kpcb #DesignInTech @rochelleking @mgiudice @daviddatnguyen @thesash @johnmaeda Wikipedia: List of Programming Languages eecs.mit.edu/docs/ug/6-3.pdf 19

GOOGLE SEARCH SNAPCHAT Examples of Design Innovations in Everyday DIGITAL Key design concept: Key design concept: TOOLS Hide complexity behind a simple door. Start with the activity to bias towards. Longstanding discipline by Google to keep the Most imaging applications asked to turn on the camera, homepage limited to a single search box has been key whereas SnapChat began the interaction in live camera to maintaining its simplicity. Once a search term is mode. The invitation to snap a photo was immediate; and typed into Google, it gets complex really quickly — but the secretive, self-destruct feature completed the you don’t notice it at ﬁrst. addictive loop. Analogy: The Motorola Startac phone introduced a Analogy: A hammer’s handle invites you to grasp it. In the clamshell design that hid all the complexity — to be design world thats called an objects ‘aﬀordance’ — it revealed only when used. primes how you might use it. Source // @kpcb #DesignInTech @johnmaeda google.com 20

Common Q: How Much Diﬀerence Can Design Make? It Depends. MAJOR DESIGN CHANGES WILL USUALLY IMPACT USAGE BEHAVIOR, SOMETIMES DRAMATICALLY Simple Example: Graphiq conducted 3 product design tests for ad placements that led to Example: Gusto designed a more discoverable employee one clear winner with a 12% increase in user engagement. self-onboarding process for businesses which made the “We design and manage all user experiences through a heavily tested quantitative and employee experience more delightful and increased use of qualitative validation process.” —@graphiq the tool by 10X. 1000% 0% -6.5% -6.5% 12% Design at the feature level is in isolation, but can be measured. Design at the system level is bolder and holistic, but harder to measure. Source // @kpcb @graphiq @chadgoldberg1 @thesash @saila51 @moyicat @alexdeanwilson @ibercovich @designerfund @daviddatnguyen designerfund.com/bridge/insights-from-designing-for-ﬁnancial-services/ graphiqeng.com/post/136837072818/why-read-one-when-you-could-read-two 21

How Do Bigger Changes Happen With Design? By DESIGNING SYSTEMS. DESIGNING SYSTEMS EXAMPLE: ANDROID Guidelines enable all kinds of people to create better MATERIAL DESIGN designs on their own. This kind of “meta design” has been LANGUAGE around since the age of corporate identity manuals. Think of brand manuals and repositories as the most basic instance of this kind of design for repeatability. Uniﬁed Look For Apps Created better consistency Premium Experience EXAMPLE: HEALTHCARE.GOV AND USDS WEB Raised to modern standards DESIGN STANDARDS of users completed the sign up process for Made Design A Priority 55% Design as a conscious act healthcare.gov 1.0 with 76 pages using these repeatable standards with consistency 85% of users completed the sign up process for healthcare.gov 1.0 with 16 pages // Do more with less. // Consistency leads to less confusion Designing reusable systems is an old technique for achieving scale — it is still eﬀective. Source // @kpcb #DesignInTech @HealthCareGov @android @daviddatnguyen medium.com/@bchesky/dont-fuck-up-the-culture-597cde9ee9d4#.bwdgjrx1s forbes.com/sites/ewanspence/2014/11/05/android-material-design-reduce-ui-fragmentation/#28f31e8e4984 playbook.cio.gov/designstandards/getting-started/ theatlantic.com/technology/archive/2015/07/the-secret-startup-saved-healthcare-gov-the-worst-website-in- america/397784 medium.com/@daviddatnguyen/10-lessons-for-building-a-design-team-from-scratch-13c2b9a9d58#.aci9b6398 22

How Do Bigger Changes Happen With Design? By DESIGNING CULTURE. DESIGNING CULTURE DON’T **** UP THE CULTURE AIRBNB USES DESIGN TO GROUND ITS CULTURE Principles enable a company’s culture to understand how design can be used the most eﬀectively, but most importantly, enable them to work from a common playbook. Brian Chesky’s memo to the Airbnb team says it all … The Airbnb logo was less used as a traditional corporate symbol, and more as a narrative element to bind their hosts together as a community. They later designed an event series called Airbnb Open that spread their values at scale to their hosts. Space Design as Culture Design • Conference rooms modeled after IBM SAP Airbnb listings Design thinking at Longtime leader in • Community photo gallery with photos of hosts and guests ambitious scale design thinking Architect: @GenslerOnCities Products are products of a company’s culture, and not just some magical switch where “design” gets turned on inside a company. It’s a conscious eﬀort on behalf of the CEO and their executive team to make design matter. Source // @kpcb #DesignInTech @justinsayarath @philgilbertsr @daviddatnguyen medium.com/@bchesky/dont-fuck-up-the-culture-597cde9ee9d4#.bwdgjrx1s forbes.com/sites/ewanspence/2014/11/05/android-material-design-reduce-ui-fragmentation/#28f31e8e4984 airbnbopen.com/ gensler.com/projects/airbnb blog.airbnb.com/airbnb-open-day-1-welcome-home medium.com/@daviddatnguyen/10-lessons-for- building-a-design-team-from-scratch-13c2b9a9d58#.aci9b6398 23

WILL BUSINESS SCHOOLS Be The Next Largest Producer of Designers? Last year, both BusinessWeek and Harvard US News & World Report 100% Business Review had cover issues on Design 2015 Top 10 Business Schools of the top 10 business schools have student-led 1 Stanford Graduate School of design/innovation clubs Business 2 Harvard Business School 3 University of Pennsylvania Wharton 78% 4 University of Chicago Booth of design, engineering, and product leaders say 5 MIT Sloan that at their company, the stakeholder that drives 6 Northwestern University Kellogg ultimate product decisions is Product. In 2nd place was Engineering at 16%. 7 UC Berkeley Haas 8 Columbia University 6-7% MAY 2015 SEPTEMBER 2015 9 Dartmouth Tuck of the 2015 graduating class of Harvard Business 10 University of Virginia Darden School took product management jobs. In last year’s report, we noted 7 of the top 10 business schools as having Design/Innovation Clubs that are organized by students. This year 100% of the top business schools have student-led design organization. Source // @kpcb #DesignInTech @AskWonder @jshoee askwonder.com/q/i-need-to-ﬁgure-out-if-these-business-schools-have-student-organizations-or-organized-clubs-56dcc373272ea059009f06df 24

3 Public Company Trends SAP was one of the earliest stakeholders in the design-thinking world.   IBM’s new design-thinking eﬀorts are comprehensive and noteworthy. Google has risen in its perception for design quality due to a series of actions that have been ongoing over the last decade. Fortune 100 companies are elevating design as a priority at the executive level. The many new design-enabled services ﬁrms will certainly help too. 25

“Good design is good business.” Has Been, And Will Continue Evolving Time Birth of Traditional Design for Birth of Modern Product Birth of “Design Thinking” “Design Thinking” Mainstreams Large Corporations Design Firms and Design Strategy as Whole Business Strategy Corporate Identity+Image and From Traditional Design, to Design of Harnessing the Creative Problem Re-contextualizing Design, Making B- Product Styling Systems+Services Solving Skills of Designers Schools into D-Schools 1950s / GM 1969 2005 2015 1966 / IBM From 1982 Apple’s design language Hasso Plattner begins to form with Hartmut = Co-Founder of SAP Esslinger’s direction. 1991 2008 - 2009 Phil Gilbert leads IBM’s $100M bet to bring GM’s CEO makes design back to IBM. the ﬁrst executive position in design 2015 with Harley Earl Memo to IBM elevated to VP. employees by CEO TJ Tim Brown and Roger L. Watson Jr. about the Roger L. Martin describes design thinking Martin open the emerging importance David Kelley, Bill Moggridge, Mike Nutall at the CEO level with P&G’s AG Laﬄey and introductory issue for of design to the join forces and change the course of his book on The Design of Business. HBR on “The Evolution company. design by co-founding IDEO. of Design Thinking.” SAP and P&G were a few of the early executive adopters of “Design Thinking,” but looking back in time, CEOs of companies like GM and IBM took strong interest in design as a competitive advantage as far back as the 1950s. Source // @kpcb @philgilbertsr @ibmdesign @frogdesign @ideo @stanfordschool @harvardbiz @proctorgamble @nytimes @rogerlmartin @business bloomberg.com/news/articles/2008-07-28/p-and-g-changes-its-gamebusinessweek-business-news-stock-market-and-ﬁnancial-advice -03.ibm.com/ibm/history/ibm100/us/en/icons/gooddesign/ 26

1 Walmart, 2 Exxon Mobil, 3 Chevron, 4 Berkshire Hathaway, 5 Apple, 6 General Motors, 7 Phillips 66, 8 General Electric, 9 Ford Motor, 10 CVS Health, 11 McKesson, 12 AT&T, 13 Valero Energy, 14 UnitedHealth Group, 15 Verizon, 16 AmerisourceBergen, 17 Fannie Mae, 18 Costco, 19 HP, 20 Kroger, 21 JP Morgan Chase, 22 Express Scripts Holding, 23 Bank of America Corp., 24 IBM, 25 Marathon Petroleum, 26 Cardinal Health, 27 Boeing, 28 Citigroup, 29 Amazon.com, 30 Wells Fargo, 31 Microsoft, 32 Proctor & Gamble, 33 Home Depot, 34 Archer Daniels Midland, 35 Walgreens, 36 Target, 37 Johnson & Johnson, 38 Anthem, 39 MetLife, 40 Alphabet, 41 State Farm Insurance Cos., 42 Freddie Mac, 43 Comcast, 44 PepsiCo, 45 United Technologies, 46 AIG, 47 UPS, 48 Dow Chemical, 49 Aetna, 50 Lowe’s, 51 ConocoPhillips, 52 Intel, 53 Energy Transfer Equity, 54 Caterpillar, 55 Prudential Financial, 56 Pfizer, 57 Walt Disney, 58 Humana, 59 Enterprise Products Partners, 60 Cisco Systems, 61 Sysco, 62 Ingram Micro, 63 Coca-Cola, 64 Lockheed Martin, 65 FedEx, 66 Johnson Controls, 67 Plains GP Holdings, 68 World Fuel Services, 69 CHS, 70 American Airlines Group, 71 Merck, 72 Best Buy, 73 Delta Air Lines, 74 Honeywell International, 75 HCA Holdings, 76 Goldman Sachs Group, 77 Tesoro, 78 Liberty Mutual Insurance Group, 79 United Continental Holdings, 80 New York Life Insurance, 81 Oracle, 82 Morgan Stanley, 83 Tyson Foods, 84 Safeway, 85 Nationwide, 86 Deere, 87 Dupont, 88 American Express, 89 Allstate, 90 Cigna, 91 Mondelez International, 92 TIAA- CREF, 93 INTL FCStone, 94 Massachusetts Mutual Life Insurance, 95 DirecTV, 96 Of the 2015 Fortune 100, Over 10% Place Design as an Executive Priority Halliburton, 97 Twenty-First Century Fox, 98 3M, 99 Sears Holdings, 100 General Dynamics 101 Publix Super Markets, 102 Philip Morris International, 103 TJX, 104 Time Warner, 105 Macy’s, 110 Nike, 107 Tech Data, 108 Avnet, 109 Northwestern Mutual, 110 McDonald’s, 111 Exelon, 112 Travelers Cos, 113 Qualcomm, 114 International Paper, 115 Occidental Petroleum, 116 Duke Energy, 117 Rite Aid, 118 Gilead Sciences, 119 Baker Hughes, 120 Emerson Electric, 121 EMC, 122 USAA, 123 Union Pacific, 124 Northrup Grumman, 125 Alcoa, 126 Capital One Financial, 127 National Oilwell Varco, 128 US Foods, 129 Raytheon, 130 Time Warner Cable, 131 Arrow Electronics, 132 Aflac, 133 Staples, 134 Abbott Laboratories, 135 Community Health Systems, 136 Fluor, 137 Freeport-McMoRan, 138 U.S. Bancorp, 139 Nucor, 140 Kimberly-Clark, 141 Hess, 142 Chesapeake Energy, 143 Xerox, 144 ManpowerGroup, 145 Amgen, 146 AbbVie, 147 Danaher, 148 Whirlpool, 149 PBF Energy, 150 HollyFrontier, 151 Eli Lilly, 152 Devon Energy, 153 Progressive, 154 Cummins, 155 Icahn Enterprises, 156 AutoNation, 110 Kohl’s, 158 Paccar, 159 Dollar General, 160 Hartford Financial Services Group, 161 Southwest Airlines, 162 Anadarko Petroleum, 163 Southern, 164 Supervalu, 165 Kraft Foods Group, 166 Goodyear Tire & Rubber, 167 EOG Resources, 168 CenturyLink, 169 Altria Group, 170 Tenet Healthcare, 171 General Mills, 172 eBay, 173 ConAgra Foods, 174 Lear, 175 TRW Automotive Holdings, 176 United States Steel, 177 Penske Automotive Group, 178 AES, 179 Colgate-Palmolive, 180 Global Partners, 181 Thermo Fisher Scientific, 182 PG&E Corp, 183 NextEra Energy, 184 American Electric Power, 185 Baxter International, 186 Centene, 187 Starbucks, 188 Gap, 189 Bank of America New York Mellon Corp., 190 Micron Technology, 191 Jail Circuit, 192 PNC Financial Services Group, 193 Kinder Morgan, 194 Office Depot, 195 Bristol-Myers Squibb, 196 NRG Energy, 197 Monsanto, 198 PPG Industries, 199 Genuine Parts, 200 Omnicom Group But with the many acquisitions of design ﬁrms into the client services sector, it’s not impossible to imagine that design will enter these organizations now through the board room. Source // @kpcb #DesignInTech @fortune @johnmaeda @danharrelson dmi.org/?page=designdrivesvalue 27

GOOGLE’S PRODUCTS Are Perceived as Improving the Most in Design “Which of these company’s products are in “Which of these company’s products have signiﬁcant need of improvement in design?” seen a marked, recent improvement in design?” 9% 64% ? 33% 40% 17% 33% How Apple Is Giving Design A 34% 20% Bad Name Top two reasons cited as the best For years, Apple followed user- 28% 21% ways to improve the design of a centered design principles. Then company’s products: something went wrong. Don Norman And Bruce Tognazzini 24% 22% 1. Have a CEO who makes product design a priority. 26% 19% 2. Have an executive team that makes product design a priority. 52% 8% In two separate studies we ran, Apple is always the outlier with regards to strong perception around product design quality. However, when asked which companies are improving in design (vs needs improvement), Google shows up. Source // @kpcb #DesignInTech @jnd1er @asktog @fastcompany @johnmaeda Data // Percentage of 545 responses to fastcodesign.com/3053406/how-apple-is-giving-design-a-bad-name 28

WHY IS GOOGLE DESIGN.GOOGLE.COM CELEBRATES ITS DESIGN CULTURE Succeeding at Design? LARRY PAGE’S FOCUS ON DESIGN IS LARGELY CREDITED GOOGLE ATAP PROJECT ARA GOOGLE CREATIVE LABS / CHROME EXPERIMENTS / 30 WEEKS “Signiﬁcant investment in design in the last few years. With examples like Material Design and Inbox, they appear to be taking a solid stab at solving old problems with GOOGLE VENTURES DESIGN TEAM PIONEERED DESIGN IN VC MATERIAL DESIGN LANGUAGE’S IMPACT IS HUGE innovative design.” “The shift from design as an afterthought to design as a central driving force has unbelievably fast and seems to have touched just about all of their products.” — via KPCB Design, Product, Engineering Leader Study When listing Google’s eﬀorts in the design arena, the range is impressive: from the Material design language, to the design leadership at Google Ventures, to Google Creative Labs’ and Google ATAP’ technocreative wizardry. Source // @kpcb #DesignInTech @googledesign @matiasduarte @gvdesignteam @jakek @gvteam @googleatap @projectara google.com/design/spec/material-design/introduction.html design.google.com projectara.com 29

Factors that Contribute to Perception of Great Design Talent Willing to Invest Exec/Board Support Innovation Strategic Known to attract rockstar Design is seen as a proﬁt CEO, executive team and Design drives innovation. Design is a central driving design talent. center. board value design. force for product strategy; not an afterthought. FACEBOOK APPLE APPLE APPLE APPLE GOOGLE GOOGLE GOOGLE GOOGLE GOOGLE FACEBOOK FACEBOOK TESLA FACEBOOK IBM SQUARE SQUARE NETFLIX TESLA SQUARE TESLA We surveyed over 50 design, engineering and product leaders. They were asked to list two public companies that valued design. Other companies that came up include Nike, Virgin, Porsche, Target, Disney. Source // @kpcb #DesignInTech @jshoee 30

4 Design Quality is to Caring Thinking critically about design means considering the broader human impact of a product and service that goes beyond proﬁtability. The next generations of designers aspire to design a world that reimagines the status quo with empathy for their fellow human beings. Instead of seeing diversity as a problem that needs solving, designing for inclusion is both an economic opportunity and cultural responsibility. 31

Imitation is the Sincerest Form of Flattery. But When is Copying Okay? 12% Design Utility 9% 6% An Innocent Homage to a great artist … 3% brilliantly becomes “Chess with Mustaches” as a parody art by Scott Kildall and Bryan Cera as available to anyone on 0% Thingiverse to 3D print. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CHESS WITH MUSTACHES AND PARODY / KILDALL + CERA 3-year Rolling Average of Percentage of Change in Number of Design Patents vs Utility Patents Filed Design Patent application ﬁles have been increasing faster than utility patent applications. But utility patents generally outnumber design patents by eight times. DESIGN PATENTS USPTO D746029 Hermès Lions sneakers SAMSUNG V APPLE PATENT DISPUTE awarded December 29, 2015 via @thefashionlaw US Patent D618,677 laid a claim on the famous An idea I had twenty years ago has been used twice by Diesel, as In fashion, design patents have been common. Just “rounded corners” matter in a design patent in this newer Diesel Thalia Repeat Print Logo T-Shirt take a look at the law case where Louboutin won and dispute in 2012 between Apple and Samsung, via Polyvore you can know the stakes are high. winning Apple a nearly $1B jury award. Artists and designers have a history of copying each other (think evolution and gene mutations), but given the Apple vs Samsung (2012) case, the value of the appearance of a product/service is increasing. Source // @kpcb #DesignInTech @johnmaeda @kildall @BryanJCera @thefashionlaw @museummodernart @DIESEL @USPTO polyvore.com/diesel_tharia_repeat_print_logo/thing?id=1927688 fortune.com/2015/08/19/apple-patents-rounded-corners/ kildall.com/project/chess-with-mustaches/ thefashionlaw.com/home/herms-awarded-design-patent-for-sneakers moma.org/collection/artists/30299 uspto.gov/learning-and-resources/statistics usa.hermes.com/man/ shoes/sneakers/lions/conﬁgurable-product-z-menshoes-lions-79621.html 32

darkpattern.org “It’s a little unrealistic to ask designers to “A Dark Pattern is an interface that has been not lead with the products and carefully crafted to trick users into doing things, experiences that increase the bottom such as buying insurance with their purchase or line and retain attention the best.” - Natasha Dow Schull signing up for recurring bills.” AWARENESS Ethical Questions Are Embedded in How We Design For OPINION ADDICTION CONSIDERATION PREFERENCE " PURCHASE The Holy Grail: • Bait and Switch • Sneak into Basket Subscription Purchasing • Misdirection • Forced Disclosure • Trick Questions • Friend Spam The 1920s “purchase funnel” model persists with two diﬀerences: ADDICTION BY DESIGN • Disguised Ads • Road Block 1. the immediacy with which a Machine Gambling in Las Vegas • Faraway Bill purchase can be made from a Natasha Dow Schüll • Roach Motel smartphone Princeton University Press, September 2012 • Forced Continuity ... 2. the ease by which a recurring Winner, Sharon Stephens Prize, American purchase can be setup as a Ethnological Association • Hidden Costs subscription. There’s a line. Source // @kpcb #DesignInTech @johnmaeda @harrybr @marcmiquel @jeremy74 @joﬄey ethnographymatters.net/blog/2015/02/09/the-addiction-algorithm/ marketing-made-simple.com/articles/purchase-funnel.htm http://darkpatterns.org/ 33

Points and Leveling. Spontaneous Rewards. Social Comparison. However, in the Health-Tech 93% of users said they Users rack up points that 84% said they are likely to were likely to keep using can unlock the chance to recommend the app to Arena, Some Addiction Is Good. the app. win rewards (i.e. a giftcard friends and family. from Target). By Design. “In the U.S., 75% of adults don’t take medications as prescribed. The result is a $300 billion burden on the health care system. Mango Health’s app aims to change that.” —Ariel Schwartz @fastcompany “CEO’s ﬁrst hire” Mango Health’s ﬁrst hire was a designer. Mango Health uses gamiﬁcation techniques to make the routine of taking your medication more fun and interesting, ultimately aﬀecting standard engagement, adherence to drug regimens, and clinical outcomes over time. Source // @kpcb #DesignInTech @avivgilboa @mangohealth @michelleskimo @joberfest @FastCompany Lynne Chou fastcoexist.com/1681727/mango-healths-quest-to-turn-taking-your-pills-into-a-game/1 twitter.com/johnmaeda/status/589071088832749568 34

Design Is Being “The reason I’m here is to recruit all of you. We can start coming up Put to Use In The with new platforms across disciplines and across skill sets to solve some of the big problems we’re facing today.” — President Barack Obama / SXSW 2016 PUBLIC 18F, the U.S Federal Govt’s Digital Consultancy £1.7billion Launched draft of U.S. Web Design Standards - SECTOR open source UI components and visual style guides to create consistent and beautiful UX across government websites. Savings generated by one year of work by the UK’s GDS at a cost of £58 million as USDS, product teams embedded in the Govt reported in 2015. That’s an impressive ROI of 27.3X. Adding in the two years prior, GDS Actively recruiting product designers and has achieved a savings of £3.56 billion for engineers to transform the way government the UK government by bringing the science works. Teams tackle big problems in and art of digital service design to the healthcare, student loans, veteran aﬀairs, etc. government and citizens. The groundbreaking work of the UK’s GDS team and the rescue of healthcare.gov have spurred a movement to build a 21st century digital government in the U.S. This has led to similar eﬀorts in Australia and New Zealand. Source // @kpcb #DesignInTech @justinsayarath @johnmaeda @benterrett @gdsteam @usds @latimes @18f gds.blog.gov.uk/2015/10/23/how-digital-and-technology-transformation-saved-1-7bn-last-year/ gds.blog.gov.uk/about/ whitehouse.gov/digital/united-states-digital-service latimes.com/entertainment/envelope/cotown/la-et-mn-obama-pushes-for-tech-at-sxsw-20160311-story.html 18f.gsa.gov/ whitehouse.gov/digital/ united-states-digital-service 35

Design’s Fundamental Impact Rests In The Ability to “If the purpose of smart systems is to make sophisticated subtle decisions so people don’t have to, it is pointless if people can’t trust them to do so. This means that crafting the relationship between people and the technology we ENGENDER TRUST use becomes as critical as building faster processors.” — Patrick Mankins / Fast Company BIASING TOWARDS CLEARER CYBERSECURITY REPORTING “Security is messy. With design we’re able to transform chaos into insight and change BIASING TOWARDS VALUABLE RATINGS AND REVIEWS outcomes. It's how we change our angle of vision on a vastly complicated problem.” — Oren Falkowitz / Co-Founder & CEO / Area 1 @ KP Security Salon YO … BIASING TOWARDS THE FIRST IMPRESSION AS WHAT MATTERS “Alfreds are in your home. So we had to “Design is much more than objects. It’s the whole HOST design a brand that you really ****ing trust.” experience. Could we use design to create trust?” ACCEPTANCE — Marcela Sapone / Co-Founder & CEO / — Joe Gebbia / Co-Founder / Airbnb VS MESSAGE Alfred @ SXSW 2016 LENGTH 5 other design-focused security startups in addition to Area1 include Better Cloud, Ionic Security, ProtectWise, Red Canary, SentinelOne according to security experts. Source // @kpcb #DesignInTech @airbnb @jgebbia @area1security @orenfalkowitz @helloalfred @MsSapone @patrickmankins @johnmaeda @bjorn fastcodesign.com/3047500/can-we-design-trust-between-humans-and-artiﬁcial-intelligence august.com/ google.com/selfdrivingcar/ nest.com/ ted.com/talks/joe_gebbia_how_airbnb_designs_for_trust 36

Designers Seek The Truth Through UNCONSCIOUS BIAS ROUNDUP BY STEPHANIE ENGLE AND CHEN YE Broadened Discourse EDELMAN TRUST BAROMETER 2015 / 2016 Q353 “From the list below, what Q330-331 “For which of the following do you believe are the top three reasons, if any, has your trust in each drivers of change in business and institution decreased over the past year?” industry?” 1 Fails to contribute to the greater good 50% 1 Technology 70% 2 Lacks economic growth 39% 2 Business Growth Targets 66% 3 No public service 36% 3 Greed / Money 54% 4 Personal Ambition 35% #BUILDFORGOOD @KPCBFELLOWS Q328-329 “For which of the following 5 Improve People’s Lives 30% reasons, if any, has your trust in each 6 Make the World a Better Place 24% institution increased over the past year? In 2015, the KPCB Fellows Program launched #BuildforGood challenges are posed at collegiate hackathons across the 1 Produce economic growth 59% country, the hope is to inspire and help 2 Contributes to the greater good 45% promote hacking/building things that make 3 Allows me to be a productive member of 40% an impact and that matter. society The younger generation tends to brings us back to the sense of hope that we all need for the future, but with a critical eye. And a willingness to do the hard work to make the world a better place by design. Source // @kpcb @EdelmanPR @soengle @siranachronist @uxdiogenes @nicksantos @kat__ely @designuxui @microsoftdesign @kpcbfellows medium.com/hh-design/introducing-blind-by-design-520d9890809e#.rm3fq83fv kpcbfellows.com/challenges edelman.com/insights/intellectual-property/2015-edelman-trust-barometer/global-results/ edelman.com/insights/intellectual-property/2016-edelman-trust-barometer/global-results/ medium.com/medium-eng/ﬁve-goofy-things-medium- did-that-break-accessibility-3bc804ae818d#.yxwmejg6r medium.com/hh-design/the-world-is-designed-for-men-d06640654491#.xfgr8p0vv medium.com/tragic-design/how-bad-ux-killed-jenny-ef915419879e#.kkndtoh7y microsoft.com/en-us/design 37

Products Designed With More Inclusive Biases Can Be More Proﬁtable AIGA NEWS TOCA CHARACTERS TOP PERFORMERS IN PAID APPS FOR KIDS ARE GENDERLESS iOS App Store Revenue per month in USD net of platform commission via AppAnnie 50K iOS App Highest Peak Download Day via AppAnnie 25K 0K JAN APR JUL OCT “Design has to ﬁnd new ways of 2015 2015 2015 2015 enabling individuals to express an increasingly ﬂuid and nuanced multiplicity of gender identities, not just 2581 1159 in fashion and graphics, but in objects, 14689 spaces, software, and so on.” downloads on downloads on downloads on peak day peak day peak day — @alicerawsthorn *V1 launched 11/30/12 *V1 launched 6/19/13 *V1 launched 12/19/14 In the kids games category, Toca is the leader with signiﬁcantly higher revenue within the past year and more than 5x downloads at peak than traditionally “gendered” games Lego Batman: DC Super Heroes and Sweet Shop by American Girl. Source // @kpcb #DesignInTech @alicerawsthorn @aigadesign @tocaboca @justinsayarath eyeondesign.aiga.org/can-design-be-genderless/ tocaboca.com/app/toca-hair-salon-2/ 38

An Inclusive ELDERLY CARE Care service and platform allowing PERSPECTIVE for the elderly community to age gracefully and comfortably in their Enables Reimagining The Startup Ecosystem own homes led by CEO Seth Sternberg. Raised 20 million as of 2016 GENDERLESS STEM TOYS SKINCARE NEEDS Toolkit for electronic construction Shaving system for people with coarse that carries no gender biases, as or curly hair, with recent addition of an designed by MIT-trained CEO electric trimmer with an elegant Ayah Bdeir and her LittleBits team. design, led by CEO Tristan Walker and Raised 59 million as of 2016 Walker & Co Team. Raised 33 million as of 2016 GAY SOCIAL NETWORK The world’s largest gay social EGG FREEZING network allowing for a community First company to provide access to that is often “invisible” to connect high quality fertility doctors, fertility with each other. Top paid app in health digital platform and plans for social networking category led by elective egg freezing, IVF treatment Joel Simkhai. and tests led by CEO Gina Bartasi. Kunlun bought 60% stake for Raised 34 million as of 2016 $93M in 2016 Underserved markets aren’t necessarily small markets. Some of the best designers in the world are taking on these challenges. Trust *can* exist in a world where money is made and social transformation happens at the same time. It is possible. Source // @kpcb #DesignInTech @cbinsights @bevel @tristanwalker @littleBits @ayahbdier@grindr @progyny @justinsayarath @johnmaeda techcrunch.com/2014/10/02/glow-gets-17-million-in-series-b-funding-from-formation-8-founders-fund-and-andreesen-horowitz/ fortune.com/2015/08/05/uber-of-fertility/ usatoday.com/story/tech/2015/09/28/tristan-walker-bevel-funding-target-stores-magic-johnson-andre-iguodala-walker-company-brands/72838894/ bothsidesofthetable.com/ 2016/02/09/the-one-video-every-silicon-valley-investor-should-watch/#.VsO7K04CFfQ.facebook google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=mitu%20fundraise newsroom.uber.com/us-illinois/uberaccess-expanding-transportation-options/ 39

5 Final Thoughts Much of what we see in the #DesignInTech space was born in the research community over multiple decades. What’s being built by the startup ecosystem and large corporations today strongly indicates the balance of power has shifted away from academia. We must consciously invest in education to develop a more hybrid perspective on creativity in the 21st century: Technology x Business x Design. President Obama’s signing of ESSA (Every Student Succeeds Act) into law in 2015 is a positive sign: by turning STEM into STEAM (adding Art) in K-12 education as a US priority. 40

“Consider a future device for individual use, … a sort of mechanized private ﬁle and library … in which an individual stores all his books, records, and communications, … consulted with exceeding speed and ﬂexibility.” — Vannervar Bush 1945 @MIT If You’re Looking For Ideas, Just Look Back A Decade or Four or Five. 04. Bush, V., "As We May Think." The Atlantic Monthly 1945 05. Buxton, W., et al. "Towards a Comprehensive User Interface Management System," 1983 08. Engelbart, D. and English, W., "A Research Center for Augmenting Human Intellect." 1994 /1968 44. Sutherland, I.E. "SketchPad: A Man-Machine Graphical Communication System," 1963 49. van Dam, A., et al. "A Hypertext Editing System for the 360," 1969 52. Williams, G., "The Apple Macintosh Computer." Byte 1984 Source // @kpcb #DesignInTech @carnegiemellon @bradamyers @theatlantic @mit cs.cmu.edu/~amulet/papers/uihistory.tr.html theatlantic.com/magazine/archive/1945/07/as-we-may-think/303881/ 41

A FEW KEY #DESIGNINTECH PIONEERS Muriel Cooper Red Burns Gillian Crampton-Smith Joy Mountford And Look A Bit MIT Media Lab NYU Tisch School Royal College of Art Apple Human Visible Language Interactive Computer-Related Interface Group Harder. You’ll Find Workshop Telecommunication Design and Ivrea Interval, Yahoo!, Program Institute Akamai Some Truly Interesting People MORE SEMINAL BOOKS/FIGURES WRT #DESIGNINTECH Along The Way If I may add a few of my favorites … Nicholas Negroponte Richard Saul Wurman Donald Norman Brenda Laurel The Architecture Machine Technology Entertainment Design The Psychology of Everyday Things Computer as Theatre 1973 1984 1988 1991 Source // @kpcb #DesignInTech @carnegiemellon @bradamyers @medialab @ITP_NYU cs.cmu.edu/~amulet/papers/uihistory.tr.html theatlantic.com/magazine/archive/1945/07/as-we-may-think/303881/ 42

The Startup Ecosystem Feels A Lot Like The New Graduate School Anthoy Frasier Buildup.VC Paul Graham / YC First Round Capital KPCB Ventured Muzzammil Zaveri + Arielle Zuckerberg Carpool.VC WHY TEXT-BASED INTERFACES? Zero (or minimal) front-end design Consistent/up-to-date experience across all Founders Collective platforms Users don’t have to download/install another app Onboarding is easy Hallway Chat Source // @kpcb #DesignInTech All links are inline. 43

25years 23years But Everything We Only Believed Had Happened, Is Finally Happening THE MIT MEDIA LAB BLURRED ART AND TECHNOLOGY Oculus MOBILE Message: 6 AUTONOMOUS Date: 11.1.93 VEHICLES From: Nicholas Negroponte To: WIRED INTERNET OF THINGS Subject: Virtual Reality: Oxymoron or Pleonasm? ON DEMAND VR Then and Now BECAUSE ART IS HOW WE Neophytes have a mistaken sense that VR is very new CAN SEE/FEEL THE FUTURE DRONES because the press just learned about it. SHARING ECONOMY It is not. Almost 25 years ago, Ivan Sutherland VIRTUAL REALITY developed, with support from ARPA, the first surprisingly advanced VR system. ARTS TECH BITCOIN … Bi-Molecule, 1.0 Source // @kpcb #DesignInTech @johnmaeda @medialab @oculus @creativemornings web.media.mit.edu/~nicholas/Wired/WIRED1-06.html 44

What To Look Forward To? What Is Coming? Atoms Will Behave Like Bits. MIT MEDIA LAB / HIROSHI ISHII / TANGIBLE MEDIA GOOGLE ATAP / IVAN POUPYREV / PROJECT SOLI: EXPANDING INTERACTION VOLUME Source // @kpcb #DesignInTech @medialab @mit_ishii @googleatap vimeo.com/79179138 web.media.mit.edu/~nicholas/Wired/WIRED1-06.html 45

Technology, Business, Design is About Hybridity = Always New Possibilities ON DEC 10, 2015, STEM OFFICIALLY BECOMES STEAM BECAUSE ART IS HOW WE CAN AND ECONOMIC PROGRESS CAN (ADDING ART TO STEM EDUCATION) SEE/FEEL THE FUTURE USE A LITTLE MAGIC AND HE(ART) TECH ARTS TECH DESIGN BUSINESS “Arts and music education are speciﬁed as eligible uses for new, Bi-Molecule, 1.0 Tri-Molecule, 2.0 state-administered ‘Student Support and Academic Enrichment is To Be Determined … Grants’ including support for the arts in STEM education.” —@naea, December 10, 2015 Source // @kpcb #DesignInTech @americans4thearts @naea @johnmaeda @sunilmahotra @danharrelson ed.gov/essa?src=rn 46

There Are Three Kinds of Design At Play. We Need To Be Speciﬁc. DESIGN BUSINESS TECHNOLOGY CLASSICAL DESIGN COMPUTATIONAL DESIGN THINKING DESIGN there’s a right way to make because execution has designing for billions of Scale (individual) what is perfect, crafted, outpaced innovation, and people and in realtime, is at and complete experience matters scale and TBD Driver / the Industrial Revolution, and prior Driver / the need to innovate in relation to Driver / the impact of Moore’s Law, mobile to that at least a few millennia of ferment. individual customer needs requires empathy. computing, and the latest tech paradigms. The two growing categories of “designers” are those coming from Business and Technology. The three categories above are co-dependent — you must embrace at least two of these categories in order to win in this century. Source // @kpcb #DesignInTech @johnmaeda kpcb.com/design 47

Engineers are eﬃcient problem solvers. Business people think short term. Designers want things to be elegant “and beautiful. All three need to create collaboration and harmony, and honor the value each other brings. There needs to be a new kind of ‘multi-dimensional’ approach to design that is yet to be invented.” —Linda Holliday / @lmholliday 2016 Design, Product and Engineering Leaders Surveyed // Alex Schleifer, Alok Damireddy, Amir Pirnia, Brandon Velestuk, Catherine Courage, Cap Watkins, Ciara Peter, David Nguyen, Ding Zhou, Frank Yoo, Ivan Bercovich, Jackie Goldberg, Jason Fischl, Jennifer Etter, Jesse Harding, Jim Fulker, Joe Xavier, Joey Cordes, Jon Lax, Kara McCain, Josh Abrams, Kurt Varner, Larry Chen, Louise Briguglio, Marcus Hanson, Mark Bauer, Maria Latushkin, Margret Schmidt, Maria Giudice, Matt MacQueen, Megs Fulton, Mike Kruzeniski, Moxie Wanderlust, Paco Vinoly, Raphael Grignani, Randy J. Hunt, Reshma Mehta, Raylene Yung, Rich Gioscia, Rochelle King, Rose Yao, Sash Catanzarite, Tara Larivee, Tim McCoy, Travis Roger, Vaibhav Nivargi, Wes Donohoe. 2016 #DesignInTech Survey Participants (updated March 6, 2016) // Diego Rodriguez, Roman Luba, jonah houston, John Cleere, Alok Jain, Steve Hoyt, Alan Joseph Williams, JB Chaykowsky, Dave Malouf, Reed Reibstein, Brian Fidler, Brandon E.B. Ward, Jill Imani, Keith, Victor Bercaru, Julia Stanescu, Knut Graf, Bryan Ku, Christina Elder, John du Pre Gauntt, Jean-Paul Haire, Larissa Bemis, renée berry, Amanda Noonan, Heather King, 8 Inc., Nick Ellem, Dan Malarkey, Phil Johnston, Dolly Parikh, Jose Coronado, Imanzah Nurhidayat, Lin Wang, Nate Roberts, Justin Meyers, Michael K. Dawson, Chris Chiusano, Sean Warsaw, Tomáš Zeman, Christine Ying, Brian Rs Ward, Kermit Stevenson, Ahmed B. Arshad, Abbas Meerani, Jeﬀrey Tjendra, Luis M. Rodriguez, Ramin, Martini, Daniel Borg, Bradley Strong, Craig Frazier, Dale Morris, Satyam Kantamneni, Kara Pastour, Bill Bulman, Brandon J. Kim, Mariano SuarezBattan, Andy McDonald, Abby Oldham, Parag Patil, Scott Phelps, Riccie Janus, Leslie Muller, Gabriel Bertot, Tejas Bhalerao, Caswell Saunders, Karen Donoghue, Jin Ah Lee, Arianna Orland, Glen Barry, gerry blakney, Scott Poole, Bryan Sattler, Gene Moy, Hervé Collignon, Jamie Cabaccang, Rowena Westphalen, Test, German Fernandez, Henry Hyunrok Sung, Ivan Bercovich, Helmut Ramsauer, Paolo Villacarlos, Jeﬀ Lin, Eric Park, Hans von Franz, Venky Ramachandran, Laurie Iwami, Geneviève, Pål Heick, Bobby March, yoon ho choi, Aaron Gleen, Linn Shuo-Ling Huang, Nick Lee, Harrison Telyan, Damian Borchok, Terry Tucker, Zishan Mohammad, Annie M Hayward, Wilbert Baan, Amal Tiwari, Jan GLAS, Maria, Roland Sailer, Kapil, May O. Caballero, Volker, Soﬁa Castelli, Giovanni Luperti, Gianfranco Fagotto, Diogo Henriques, Mateo Singapore, Kleber Oliveira, Dimitrios Niavis, Malte Nuhn, Jeroen Frumau, Julian Koschwitz, Guillaume Abel, Sumana behara, Dean Kakridas, Keri Borkowicz, Karoline K, Theophilus Thomas, Samujjal Purkayastha, Ceasar McDowell, Alberto Villarreal, Micah Walter, Jamila Breese, Massimo Curatella, Luis F Rios, James Nash, Daniel Bok-Man Ng, Matt Deming, Jeﬀ Eckman, Jeﬀ Rubingh, Gisele Kirtley, Bill Tarbell, Jason Armstrong, Aleconfa, Daniel André Groh, AJ Kotval, Jennifer Milne, Marlen Promann, Jason Scott, Reem Gamil, John Bagby, Atin Mittra, Christianne Molina, Davide Barni, Meeta Mathur, Amit wadhe, Adam Williams, Bob Baxley, Andy VanSolkema, Charles Stromeyer Jr, Giulia Biamino, Mart Maasik, Victor Baroli, Andri Kristinsson, Jenn Kuca, Marin Licina, Emily Chong (frog), Giulia Nicolosi, Brian Hauch, Sarah Lance, Vineet Gupta, Diana Blair, Tino Klaehne, Nelson Wah, f.milanesio, Sally D'Angelo, Vijay Balijaypalli, Nunix Wini Frentyna, Robert Gallerani, Pierre Granier, Benjamin Fels, Imran Maskatia, Andrea Osti, Amanda Marx, Jay Fichialos, Hunter Marshall, Kirk Cornelius, Yang Dan, Olympia Datta, Michael Tinstman, Neal Osotio, Jan Sauer, Christian Talmage, Umair Khan, uzair, Andrea Trninic, Paresh Ladd, Damien Newman, Prakaash Selvaraj, Matt MacQueen, Eric Li, Sanny, Vikram Rajagopalan, Aditya, Chen Ye, Connor Lin, Cecilia Bodin, Josh Lee, Stephanie Engle, Helen C, Kathy Li, Joan DiMicco, Jennifer Cardello, Bic, Andres, Jason Sack, Toni Sokura, Kevin Bethune, Benedikt Lehnert, Eric Johnson, Mario Delgado, Peter Cho, Chuck Liu, Don Lindsay, Daniel Chaparro, Susana R de T, ds, Tak Okamoto, Inês Bravo, Peter, RISD, Seattle, Fayssal Loussaief, Priscilla Leung, James Nash, Gianfranco, martand, Patañjali Chary, Federico Carlini, Bryan Ku, vandy meares, lin wang, Ramin, Giovanni Magnani, Andreas Andreopoulos, Aniruddha Kadam, Jose Coronado, Edward J. Achtner, Fayaz Ashraf, Cristobal Alvarez, Sandi Harrison, BC Krishna, lgalli, Genesse Rosal, Tao, Addy, Jose Fernandez, Marco Huerta, jeﬀrey m., Caswell Saunders, Kartik Poria, SK, David Mountain, Jason Prunty, Anonymous, Cuco Vega, Federico Hernandez-R, Ryan MacLean, Michelle Arrieta, Hrag Nassanian, Ángel Romero, Shawn Berven, Nick Lee, Matt MacQueen, Justin Meyers, Chris Baier, Roberto Manzari, Humberto Sacco, Roland Sailer, alex, Michael Mallari, Samira Rahimi, KC Chan-Herur, Dr Aseel Bin Sawad, Ali Sarwat Hussain, Alberto Escarlate, J.B. Chaykowsky, Dave Schlafman, Elizabeth Eadie, Kovacs LLC, F.F, Stuart Griﬃths, Annu, Michael Flynn, Nathaniel Axios, Simon O', Alma Hoﬀmann, Leslie Muller, Todd Wood, Boy, Jake Mendel, Jonathan Arena, Xinzhi Jiao, Pete, Pjog, mehdizare, Enrique Von Rohr, Vinay Rao, Ryan Mather, annymous, Ayan, Vivek Mohan, AJ Kotval, Emma Crowe, Richard Stewart, Guy, german fernandez, Vincent Hiroz, May O. Caballero, Lara Hanlon, Hamidreza YADEGARI, Sara, Dano, Shweta Chaudhary, Shu Lai, Pénélope RM, Miraze, Marita Sorsamäki, Tim Heiler, Troels Nørlem, Prasanna Reddy, Michele, John Cleere, outsa, Goril, Stefan Liute, Radu Dandu, Giuseppe Magnani, İrem Küçükali, Bi, Ali Khan, Ning, Alfonso Tambunan, Rie Norregaard, Agnese I, Anthony D'Ugo, Vincent Garcia, Tom Berno, Daniel Braun, Koichiro Eto, Nicolas, Kristen Spilman, @chadengle, George Arriola, Van Rais, Srinivasan, Paul Pinard, guillaume, Missy Kelley, Moaaz, Josh Stein, Kel, @stooodley, Jenny Gyllander, Scott Phelps, Justin Calles, Raghav, Michael Owens, Andrea, Vijay Patel, Charles Windlin, Linda R. Moss, Paul Yarin, Ryan Phillips, mark, Jim Hanley, Ian, your mom, Zoe, Vikram Rajagopalan, George, Valeska O'Leary, Carissa Chan, DOPESAUCE, Jasper Liu, Justin Gignac, Dennis Rosenfeld, interesting survey, Satyam Kantamneni, David Kong, Mariano SuarezBattan, Henry Mbayen, Lorenzo Wood, Marek Pawlowski, Iñaki Remiro, Anders Hansen, AYSENAZ, Nijomi, Jeremy Johnson, Jarquin Miguel, Chris R, Angelia, Dorelle Rabinowitz, james ennis, Juan Carlos Gavino, KG, Robson P. Mendonça, vivia liu, Kharis O'Connell, K. Andras, Akriti Vora, Jeﬀ Groves, linlin pan, Ben Smith, Brian Beaver, Stefano Boscutti, Jae Um, Ben Bird, Imran, Rivo, Samujjal Purkayastha, Michele Salmi, Inés Peláez, Amit Richard, Tulus, Tim P. McCollum, Bryan Sattler, Eric Whewell, Jorge, MV, ticaro, Youngkwang Cho, Reiko Morrison, Shane Morgenstern, Asis Panda, Isaac, Ikky, Juan wendeus, Allen Smith, Jorge jimenez, Charles Jok, Gardenia Flores, ande la monica, Richard Morin, yara khoury, consumer 143,362,977, Ashish Sharma, Bruno Duarte, ok, alexandra araujo, Elio Cicala, John W. Hart, John Scheers, Casey, Charles H Warren, Velda Foster, Aaron Powers, Christopher tumaghap, Mei, Frances Soong, Ryan Stacy, Lisa Aufox, Jennifer Wibowo, Shirley Wu, Sanny, Sarah Wohl, John Ferrigan, Mikael Kristianslund, Hi, Nick Shank, Brandon Brown, Mitchell Bernstein, Ingrid Lange, RISD, Benjamin Vimont, Fran Motta, Nikia Hill, Cory Maryott, Linn Shuo-Ling Huang, Burin Asavesna, Matt C, Greg More, Ty Hatch, Terry Tucker, Adam Chaloeicheep, Maria Matveeva, Nick Wittwer, Carlos Muñoz, Mayank Khanna, Kurt Pelzer, Marina Kong, Alexander Tran, Vanika Nain, Kemal Akbay, anonymous, Joel Aguero, Andy Lin, Julian 2o5 Keefe, Nathan Garvie, T, Paul Bouisset, Kit Grose, Adarsh Moda, Ben Ginger, Nate Navasca, Marten Kuipers, Rebecca Torbochkin, Jocelyn Lui, Emanuele Bianchi, Gloria Chua, Orlando, Aj, Maheen Sohail, Stefania, Luis Frias, Dani Nordin, Mohit, Alberto Moro, Xanat Vargas Meza, Chris LaRoche, Msr, Chuck Ruud, Kebei Li, Johanna Evans, Julia Solano, Aaron Brako, Esben Gimbel, Michael Brooks, Andrea, Fust, Alison Austin, John von Buelow, Martin Lopez Diaz, Jr., John Bagby, Juliette Weiss, Connor Lin, Scott McManigal, Jye, Matt Saﬁan, Swapnil, Vedashree Bankar, Fazal Ahmed, Anshul Singh, Stacy Chiou (RISD), Sarah Wedge, Michele Clarke, Jerry 2015 Design Leaders Surveyed // Clare Corthell, Deena Rosen, Parul Vora, Analia Ibargoyen, Jennifer Etter, Sarah Alpern, Kaaren Hanson, Fernanda Viegas, Kristy Tillman, Valerie Casey, Angel Steger, Karin Fong, Dawn Danby, Tina Roth Eisenberg, Jules Pieri, Sally Carson, Megs Fulton, Kegan Schouwenburg, Maria Giudice, Lindsay Mindler, Sarah M Oppelt, Candice Tse, Catherine Courage, Juliana Rotich, Tina Roth Eisenberg, Margret Schmidt, Helen Walters, Jeniece Primus, Nancy Duarte, Rochelle King, Cat Noone, Scott Dadich, John Maeda, David Schultz, Matias Duarte, Morgan Knutson, Alex Tam, Diogenes Brito, Dave Evans, Etan Lightstone, Peter Cho, Gentry Underwood, Dave Young, Johnnie Manzari, Marcos Ojeda, Ian Storm Taylor, Dan Harrelson, Tad Toulis, Max Gunawan, Doug VanderMolen, Chris Robinson, Randy J. Hunt, Dantley Davis, Chris Moeller, Jason Mayden, Joe Gebbia, Brian Schmitt, Mark Bauer, Damian Madray, Sean McLeary, Darren Chan, Jesse Harding, John Cary, Ethan Bodnar, Harold Hambrose, Wesley Yun, Rich Gioscia, Randall Hom, Uday Gajendar, Matthew Beebe, Dave Lippman, Jesse Pollak, Martin Wattenberg, Ronald Ro, Phil Gilbert, Andrew Hessel, David Dat Nguyen, Moses Ting, Jonathan Chen, Ivan Bercovich, Harper Reed, Kelly Sutton, Alessandro Sabatelli, Raphael Schaad, Donnie Dinch, Tim McCoy, Sash Catanzarite, Matt MacQueen, Marcos Weskamp, Ethan Trask, Bob Baxley, Justin Maxwell, Jonathan Lieberman, Mark Kawano, Tyler Murphy, Cap Watkins, Gilles Poupardin, Dominique Leca, Mike Davidson, Osandi, Scott Belsky, Michael Owens, Andrew Crow, Doug Evans, Sahil Lavingia, Brian C. McDonald, Stefan Klocek, Koen Bok, Raghava KK, Brandon Velestuk Source //@kpcb #DesignInTech 48

Sand Hill Road DISCLOSURE Headquarter This presentation has been compiled for informational purposes only and should not be construed as a solicitation or an oﬀer to buy or sell securities in any entity. The presentation relies on data and insights from a wide range of sources, including public and private companies, market research ﬁrms, and industry professionals. We Sand Hill Road cite speciﬁc sources where data are public; the presentation is also informed by non-public information and insights. This is the second publication of the Design In Tech report. We will post any updates revisions or clariﬁcations on the KPCB website. KPCB is a venture capital ﬁrm that owns signiﬁcant equity positions in certain of the companies referenced in the presentation, including those at kpcb.com/companies. 49