Summary: Design thinking can have a significant impact when utilised as a strategic asset within the organisation to shift toward a consumer-centric, innovation-driven culture. Examples of companies that adopted a design thinking mindset are IKEA, Apple, and Starbucks.
Many companies still lack an understanding of design thinking. I believe this may be a result of two main factors: the first one is that many companies still don’t fully acknowledge the broader role of design in business, and the second is that design thinking is more perceived as a guidebook to success rather than a way of shifting mindset toward a better problem and solution framing to identify the opportunities. The latter is a product of how design thinking is presented as a linear sequence of steps and activities.
What is Design Thinking?
Back to the main definition of design thinking, the term was first coined by Peter Rowe, a Professor of architecture at Harvard School of Design, as “account for the underlying structure with those rather private moments of ‘seeking out,’ on the part of designers.” Kees Dorst defines it as the practice of using a broader approach to professional design to solve problems. Finally, Tim Brown, IDEO, defines design thinking as the use of designers’ methods to address people’s needs with solutions that are technically feasible and business-viable.
From the design management perspective, we can see two main characteristics of the design thinking process (see Design Thinking Guide: What, Why and How); the design is perceived from a top strategic level in organisations and is part of building a design-driven business, and the application of design thinking aims to add value to business by shifting the business consumer-centred approach. This can be achieved through integrating design at the functional, operational, and strategic levels.
Design Thinking Builds a Consumer-Driven Business
All the design thinking process models aim to achieve one goal: build a consumer-centred business that focuses on addressing 'speople's needs, which can be a potential source of added value in competitive markets. Applying design thinking to developing new products or improving existing products aligns with three main targets: user desirability, technical feasibility, and business viability.
According to McKinsey Group, creating a design-driven business helps companies to engage with their consumer. Their design model depends on three main elements: understanding the consumer, bringing empathy into the organisation, and combining design, business strategy, and technology.
In their “Braided” Design model, the three elements are blended through the design process of five main stages:
- The frame includes mapping the business opportunity, user needs, and technology environment.
- Cocreate reframes the problem, identifies the value proposition, and identifies the data and technology.
- Prototype develops the prototype, iterates the design based on the customer feedback, and creates the technology development plan.
- and build the business case
- Validate the product usability, assess the technology, and validate the business strategy.
- Govern builds the best-practice innovation process, builds the model for ongoing investment and evaluation.
Design Thinking Drives Innovation
In his report about leading the UK economy through design and innovation (Cox Review of Creativity in Business: building on the UK’s strengths). Sir George Cox defined the design process as the bridge that turns creative ideas into innovative products that can add value to the market and economy. Nowadays, market competition has become so aggressive that companies need to develop innovative products that can make a difference. This can be achieved through different types of innovation as follows:
- Sustaining innovation - most innovation happens here, as companies keep improving existing products to solve problems and add more value.
- Breakthrough innovation: this type includes changes to an existing product that have a significant impact on the market.
- Disruptive innovation - this type introduces new products that later lead the market, as defined by Clayton Christensen in his book, The Innovator's Dilemma.
Companies can achieve the above types of innovation by applying the design thinking process to developing new products or improving existing ones. For example, IKEA applies an empathic design process that involves travelling to consumers’ places and investigating their needs. Apple is another example of an innovative companies that apply design thinking within the organisation to create new offerings for its consumers.
Design Thinking Fuels Brand Strategy
Design thinking can be seen as part of a broader design management discipline, which involves linking design and business and viewing design through a broader business lens. In her book, Design Management: Using Design to Build Brand Value and Corporate Innovation, Brigitte de Mozota categorised design contribution inside organisations into three domains:
- Operational design involves design tasks such as creating graphic design materials, designing products, and digital user interfaces.
- Functional (tactical) design involves the design process, such as coordinating cooperation between departments and across the different stages of the design process.
- Strategic design involves looking at the design from a strategic perspective that links the company strategy and consumer needs, such as building the company brand and reflecting it in the above two types of design within the organisation (check Why Design Thinking Can Contribute to a Growing Business)
Starbucks is a good example of a company that uses design to reflect the brand image. To maintain the brand strategy across the organisation, the company has developed detailed guidance for designers to ensure the company's image remains consistent.
Conclusion
As a result of the above benefits, companies can achieve even greater advantages. For example, research has shown that innovation can positively impact a company's competitiveness and profitability. Innovating with new products or improving existing offerings can help companies strengthen their market position. These advantages can also be supported by brand value, achieved through the design thinking process and strategic design.
Bibliography
Best, K. (2010). The fundamentals of design management. Bloomsbury Publishing.
Borja de Mozota, B. (2006). The four powers of design: A value model in design management.
Cooper, R., Aouad, G., Lee, A., Wu, S., Fleming, A., & Kagioglou, M. (2008). Process management in design and construction. John Wiley & Sons.
Cross, N. (2021). Engineering design methods: strategies for product design. John Wiley & Sons.
De Mozota, B. B. (1990). Design et management. Éditions d'organisation.
Hands, D. (2017). Design management: The essential handbook. Kogan Page Publishers.
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