Innovation that Values Customers: The Power of Design Thinking

Today, we will explore about an important concept in product management – DESIGN THINKING. Our goal is to demystify design thinking and make it accessible and understandable for professionals and enthusiasts alike by explaining its principles, stages, and more. 

It is applicable across all customer-centric industries, from travel to education. Mainly because this concept dwells on emphasising empathy, collaboration, and iterative processes. 

What is Design Thinking?

Design thinking is a human-centric approach to problem-solving. It encourages us to look at problems from the perspective of the end-users. As an approach, it blends analytical and creative thinking. And, the aim is to create innovative solutions that resonate with customer’s needs, wants, and demands.

Also, the Hasso-Plattner Institute defines design thinking to integrate ‘human, business, and technical factors.’

How is design thinking human-centric, you ask?

This method acknowledges that the success of any product relies on how well it aligns with the needs and aspirations of the people (customers) it’s intended for. All iterations, including the final implementation, focus on how well the customer can interact with the product. In this way, empathy plays a huge role in design thinking. 

And how would it be more solution-focused than solving a problem?

Design thinking is an iterative process. It does not simply focus on analysing the problem and proposing a single solution. Instead, it promotes the creation of multiple prototypes and concepts.  

So, once you have grasped the meaning of design thinking, it’s time to explore the principles that guide it. 

Core Principles of Design Thinking

The design thinking principles that we are mentioning below are adopted by Google. For the company, it is a ‘mindset’ that is achieved by the 3 E’s (Empathy, Expansive Thinking, and Experimentation).

Empathy

Empathy in design thinking refers to the ability to deeply understand and share the feelings, needs, and perspectives of the people for whom a product or solution is being designed.

One connection to draw from the previous section is how human-centred design thinking is. This relates directly to the Empathy principle.  

Expansive Thinking

When we said about multiple ways of looking into the solution in the above section, the process refers to brainstorming. 

During this process, it is recommended that the solution to the problem is looked at from various angles. The mindset to be used here is that no single brainstorming idea can solve all the different challenges. 

Experimentation

One of the significant aspects of design thinking is experimentation. Also referred to as ‘prototyping’, it is the first version of the idea that came through brainstorming. 

When the Primer App was an experiment by Google, they tested with a few users only. It did not roll out an expansive app with many chapters to confuse its chosen users. This kind of prototyping helped the company work on the user experience (UX). 

Stages of Design Thinking

The stages of design thinking that we are going to highlight align closely to the 3 E’s mentioned above. These different stages can be adopted as a framework in your business

For more, look into courses such as Design Thinking and Innovation from Harvard Business School. 

For the time-being, let’s explore the 5 stages of the design thinking process. 

1. Empathise

This initial stage involves understanding the problem from the users’ perspective, often through interviews, observations, and immersion in their experiences.

2. Define

In this phase, we synthesize the collected data to form a clear and precise problem statement. It sets the foundation for the creative process that follows.

3. Ideate

Ideation is the creative engine of design thinking, where brainstorming sessions and innovative thinking are encouraged to generate a multitude of ideas.

4. Prototype

Here, ideas are transformed into tangible representations, allowing for quick testing and iteration. Prototyping helps to refine concepts and identify potential issues early in the process.

5. Test

The final stage involves testing prototypes with actual users to gain valuable feedback. This feedback loop informs further iterations and ensures that the final solution is aligned with user needs.

Role of Design Thinking in Product Management: Example

Design thinking is integral to product management.

Coming back, its role can be understood better when you step into the shoes of a product manager – see the questions they ask and how they incorporate this method as part of their responsibilities.  

Scenario: Developing a Mobile Banking App

Consider you are a product manager at a leading financial institution. You’ve been tasked with creating a mobile banking app to enhance the digital banking experience for your customers. 

First, these are the questions (3Ws and 1H) you would have ask. 

Who	What	Why	How
Who are our customers, and what are their diverse needs and preferences when it comes to digital banking?	What are the pain points and challenges our customers encounter in their current digital banking experiences?	Why do our customers expect specific features and functionalities from a mobile banking app?	How can we synthesise the data collected from these sources to create a clear and actionable problem statement?
	What do our customers expect from a mobile banking app, and how can we meet or exceed those expectations?	Why is it important to align our mobile banking app with user needs and expectations?	How can we effectively communicate this problem statement to all stakeholders to ensure everyone understands and supports our vision?
	What are the most critical problems or opportunities that our mobile banking app should address to align with user needs and our business goals?	Why should we focus on solving specific problems or leveraging opportunities in our mobile banking app?	How might we encourage a culture of creativity and innovation within our cross-functional team to generate groundbreaking ideas for the app?
	What data and insights can we gather from user interviews, surveys, and observations to understand our customers better?		How can we organise user testing sessions to ensure real customers interact with our prototypes and provide valuable feedback?
	What emerging technologies and trends in mobile banking do we need to stay informed about and be prepared to adapt to?		How do we balance creative freedom with practicality and technical feasibility when refining the prototypes and features?
	What’s our long-term strategy for keeping the app relevant and competitive in a rapidly changing digital banking landscape?		How can we analyse the results from the beta test to make final refinements and adjustments?
			How do we maintain a feedback loop with users, and what channels can we use to continue collecting insights post-launch?

See below how you, as a product manager, would implement design thinking. 

Empathising with Users

In the initial stages, you realise the importance of empathising with your customers to understand their needs and pain points. You decide to conduct user interviews and surveys to gather insights.

Action to Take to Empathise 

You arrange interviews with a diverse group of customers, from tech-savvy millennials to older users who might be less comfortable with digital banking. During these sessions, you ask open-ended questions to understand their preferences, frustrations, and expectations regarding a mobile banking app.

Defining the Problem

After analysing the user feedback, you’re ready to define the problem. You want to create an app that addresses these real-world issues and meets customer expectations.

Action to Take to Define the Problem

You create a problem statement based on the user insights. The focus is on improving accessibility, security, and ease of use for customers of all ages and technological backgrounds.

Ideation and Creative Solutions

Now, you want to generate creative solutions to solve the defined problem. You aim to go beyond the basics and provide innovative features to make your app stand out.

Action to Take to Ideate on Creative Solutions

You organise brainstorming sessions with your product development team, designers, and even invite customer representatives to participate. 

The team generates various ideas, such as biometric authentication, intuitive dashboard customisation, and real-time financial education resources.

Prototyping and Testing

Instead of jumping directly into development, you decide to create prototypes of the app’s features to test with users. This aligns with the design thinking principle of prototyping and testing.

Action to Take on Prototyping and Testing 

The design and development teams work together to create low-fidelity wireframes and interactive prototypes based on the ideated features. 

You then conduct user testing sessions, where customers interact with the prototypes. This reveals valuable insights and helps identify which features are the most appealing and user-friendly.

Iterative Improvement

Design thinking encourages ongoing improvement and refinement based on feedback. You continuously iterate the prototypes to ensure that the final product addresses user needs effectively.

Action on Iterative Improvement

You collect feedback from each testing session, identify pain points, and refine the app’s features and user interface accordingly. This iterative process ensures that the app becomes more user-centric with each iteration.

Validation and Launch

Design Thinking Comes into Play: Design thinking emphasises the importance of validation. Before launching the app, you want to ensure that it resonates with the target audience and aligns with market demands.

Action Taken on Validation and Launch

After multiple rounds of testing and improvement, you’re confident that the app is ready for launch. You also conduct a beta release, inviting a select group of customers to use the app and provide feedback. Their positive responses and constructive suggestions reinforce your confidence in the product’s market fit.

Post-Launch Adaptation 

Even after the launch, design thinking guides your approach. It encourages flexibility and adaptation in response to changing customer needs and technological advancements.

Action To Take Post Launch 

You continue to monitor user feedback, track app usage, and stay updated on emerging trends in mobile banking. When new technologies or customer preferences emerge, you’re prepared to make updates and enhancements to the app to keep it competitive and aligned with user needs.

What you just read is part of the skills required for a product manager. Now, let’s look into some real-life examples of top companies that applied design thinking. 

Examples Where Design Thinking Was Applied Successfully

Airbnb

Airbnb revolutionised the hospitality industry by employing design thinking principles. At its core, it empathised with travellers who wanted unique and affordable accommodations. After defining a platform connecting hosts with guests, it ideated on how to make the booking process user-friendly. Then it went on to create prototypes, and tested the service extensively. 

Today, Airbnb has millions of listings worldwide, showcasing the effectiveness of design thinking in creating a disruptive business model.

Apple’s iPhone

The iPhone, one of the most iconic consumer products of the 21st century, is another testament to the success of design thinking. 

Apple empathised with users’ desires for a device that was not just a phone but an intuitive, multifunctional tool. They defined the need for a user-friendly, touch-based interface and ideated on various features. The iterative prototyping and testing process led to the creation of a groundbreaking product that changed the tech industry.

IDEO

IDEO, a global design company, undertook a project to redesign the shopping cart in just five days. This project so popular it was even featured in ABC's Nightline as a classic example of design thinking in action.
So what the IDEO team used was a human-centered approach, starting with observing actual shopping behavior. They identified key issues like maneuverability, shopper comfort, and the need for a modular design to accommodate different shopping experiences.
The redesigned shopping cart was modular, more ergonomic, and addressed theft and safety issues. Although it was a prototype, the project showed how rapid prototyping, empathy with users, and a multidisciplinary approach are central to design thinking.

How Design Thinking Differs from Other Traditional Problem-Solving Methods

Design thinking stands out from traditional problem-solving methods by focusing on empathy, creativity, and user-centred solutions. Let’s see how. 

Aspect	Design Thinking	Six Sigma / Lean Methodology
Emphasis	Strong emphasis on empathy and user needs.	Focuses on process efficiency and data.
Creative Ideation	Encourages creative thinking and innovation.	Emphasises structured, datadriven solutions.
UserCentered Solutions	Prioritizes solutions that cater to user needs.	Solutions are primarily process-centric.
Handling Complexity and Uncertainty	Thrives in complex, ill-defined problems with uncertainty.	Most effective in well-defined processes.
Encouragement of Innovation	Fosters innovation and disruptive ideas.	Primarily aimed at process optimisation.

You may review our page on Six Sigma to understand the differences in more detail. 

Where Can You See Design Thinking Being Used in Real Life?

Design thinking is incredibly versatile and can be applied in various domains, from business to education, healthcare, and social change initiatives. Here’s a glimpse of how it can be used in different contexts. 

Business

In the business world, design thinking is applied to improve customer experiences, develop innovative products, and create better services. It can help in the redesign of business processes and fostering a culture of continuous innovation.

Education

Design thinking is employed to develop effective and engaging teaching methods, enhance the learning experience, and prepare students for problem-solving in real-world situations.

Healthcare

In healthcare, design thinking can improve patient experiences, enhance medical device design, and streamline complex healthcare processes, making them more patient-friendly.

Social Change

Design thinking plays a crucial role in social change initiatives by identifying problems and co-creating solutions with the communities affected. It empowers people to actively participate in the problem-solving process.

How to Get Started with Design Thinking

Embarking on the design thinking journey doesn’t require a formal education in design. Here are a few simple steps to get started. 

Start from the Basics

Begin by familiarising yourself with the core principles and stages of design thinking. You can find a huge list of design thinking certifications on our platform 

Practice Empathy 

Train yourself to empathize with others. Listen actively and try to see the world from their perspective. 

Explore the ways to maintain and nurture great professional relationships with business communication courses!

Collaborate

Work with diverse teams to encourage different perspectives and ideas.

Experiment 

Don’t be afraid to prototype and test your ideas. Embrace the possibility of failure as a valuable learning experience.

Iterate

Continuously refine your solutions based on feedback and data.

By embracing the principles of design thinking, we can create innovative, user-focused solutions that cater to the ever-evolving needs of our modern world.

Can Design Thinking Go Wrong?  

While it is easy to emphasise the human-centred approach through design thinking, the approach also has some limitations when looked at through organisational POVs. 

• One such criticism is from Lucy Kimbell, who in her paper, Rethinking Design Thinking (2011) mentions 'Design as design thinking should provide more than mere design'. Kimbell's criticism suggests that by applying design thinking in business, there is a tendency to overlook or simplify political dimensions, including organisational politics, power dynamics, and competing interests. Design thinking, with its focus on creativity, user-centric problem solving, and collaborative approaches, might not adequately address the intricate power dynamics and political realities that exist within organisations.
• Also, the tension between using creativity and innovation versus ensuring practical and viable solutions is a key area of debate in design thinking. How much should design thinking lean towards imaginative solutions versus grounded, practical ones is a debate as well.