Design Thinking in Modern Business Environment

This essay discusses the role and impact of design thinking in the modern business environment. It explores how design thinking helps organizations in problem-solving and innovation. The essay also provides examples of companies that have successfully implemented design thinking.

Design Thinking Essay
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
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INTRODUCTION
Design thinking is define as the effective approach which helps organisation in increasing
its sales and profits by building innovative solutions through iteration (Liedtka, 2014). Therefore,
it is a systematic approach which aims at satisfying customers by identifying their needs and is a
effective problem solving method. Design thinking play important role in the current business
world as every business want to grow its business so they are focusing on various methods and
strategies in order to gain competitive advantage. This report is based on design thinking theory
role and impact in the modern business environment. Before moving forward in further
arguments, here is to state that this essay will discuss in favour of the above discussed ideas and
statements.
MAIN BODY
Design thinking has become important part of the business and is not a waste of time that
is helps in developing and enhancing the business performance. The design thinking theory help
the researchers and the designers in supporting the business for positive social and economic
outcomes. This helps in providing value to the products or services offered by company to its
potential customers. There are five stages of design thinking theory which help the organisation
in identifying the problem so that solution can be provided. The first stage is empathise in which
focus is on empathic understanding if the problem in order to drive effective solution. In this
stage steps are taken in order to understand the point of view of the consumers. It is define as the
need finding stage where one discover consumers explicit and implicit needs in order to meet
their standards through design. The second stage is named as define where one by examining
their perceptions and integrate them with the team in order to characterize the centre issues. The
third stage is Ideate where new ideas are drawn by the team in order to provide effective solution
to the problems (Dijksterhuis and Silvius, 2017). The focus of the team is to come up with new
creative and innovative solutions according to the problem. The fourth stage is Prototype in
which the idea which is generated in the third stage is tested with the real life conditions in order
to check the feasibility of the idea. Last stage is test in which design thinking process is tested
with the motive to know the what is working and what is not so that corrective actions can be
taken accordingly. Hence this process helps in effective implementation of innovation in the
business. For example Tesla is using design thinking model and able to cover large market area.
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At the initial level they have started their business with niche market and now operating in
international marketing. The innovation of electric cars is prefer by the customers and along with
this they are focusing on sustainable business growth. They are coming up with new innovative
models and updated version of existing models with the motive to stand on the needs and desires
of customers (Henriksen, Richardson and Mehta, 2017).
Advancement in technology is the key driver of innovation which has major contribution
in the growth and development of organisation. There are basic three principles of design
thinking which help the creative and innovative team within the organisation to meet the desire
expectation of the company. The first principle is problem solving attitude as the primary aim of
the design thinking is to intercept problems and formulate the effective solutions. With the use of
this the main focus is on solving problem by understanding the current scenario. Second
principle is human centered design where the people first approach is been used for
understanding and intercepting the real needs and taking steps accordingly. The third principle is
iterative approach in which focus is on identifying divergent moments and converging moments
for refining the designed solutions. Design thinking approach is beneficial for the business
organisations in this modern era (Dorst, 2010). It helps in identifying the problems from different
perspective so that effective solutions can be formulated. The innovation team within the
organisation focuses on identifying the root cause of the problem so that they would able to meet
the needs and expectation of its potential customers. In 21 century people are highly dependent
on technology and prefer technology based products and services. Hence it is important to bring
innovation in the business in order to attract large number of customers. Moreover it is
contributing in identifying the strategies of the other competitors so that new and creative
methods are adopted by the company to maintain its position in the marketplace. For example
Netflix, has initially started its business by selling DVDs and later come up with its own mobile
application and is now providing services across the globe. The company has understand the
need of customers and have come up with application with different type series so satisfy the
customers. The taste and preferences of the customers vary that is some like action series,
romantic series, etc. and also people from different region follow different culture and language.
The innovative team of the company is working on understanding the needs and desires of
customers so that they would able to make changes in its current process and able to attract more
customers.
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Illustration 1: Netflix. 2020.
The company has started its business in year 1997 from UK by providing online movie rental
services. Then in year 1998 they have launched DVD which is based on pay per rental model and
in year 2000 they have introduced its personalized movie recommendation system and in year
2002 they have announced its initial public offering. Hence by identifying the need of customers
they are able to make change sand innovation in its system and able to grow its business
effectively and efficiently (Thoring and Müller, 2011).
Design thinking started out as the process which is responsible for creating new
technology and products. With the use of this approach the organization would able to create
lasting value and satisfy the needs of customers. The main objective of this strategy is to solve
the problems which are acting as barrier in the success of the organisation. Design thinking
strategy is helpful as the organisation would able to tackle the creative challenges effectively. It
helps in providing an opportunity to have a look at the problems from different perspective. It
also help in meeting the requirements of clients in effective and efficient manner. The feedback
process started by companies provide information regarding mind set of customer and their
expectation. As this helps in formulating effective strategies and innovation to stand on the needs
and desires of customers. Furthermore this helps in enhancing the knowledge of employees with
design thinkings as through multiple evaluation they would able to come up with something new.
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In this modern work environment where every organisations is taking steps to improve its
operations (Seeber and et.al., 2015). The companies are building framework according to the
teamwork creativity, flexibility, critical thinking skills which lead to creation of culture of
collaboration. The members within company will able to work in coordination with each other to
find effective solutions to the problem which help in building better culture. The cross functional
team within the company consist of people from different background to work together to
develop effective strategy. Divergent thinking is one of the effective approach of design thinking
which helps in generating creative ideas by exploring many possible solutions. The organisation
in current business environment is promoting and focusing on using creative methods as it help
in accomplishing the desire goals and objectives of company. There are many companies which
are dealing in same type of business such as Zara, H&M, etc which can make differentiation in
their offering by providing something new and unique. Quality is one off the important factor in
attracting customers but with time and advancement in technology, innovation an creativity too
has become important for helping the company to grow its market and provide tough competition
in the marketplace (Retna, 2016). For example Apple has able to make its brand name in
marketplace as it offering rang of products which are highly technology based and are unique.
The company has able to understand the needs of customers as they are of fluctuating nature but
comes up with innovative products. With the time it has able to satisfy customers with its
offering that is Ipod, iTune, iPhone and iPad. Hence, design thinking is important for the growth
and development of the organisation as it helps in improving the products by analysing the needs
and demand of the potential customers.
CONCLUSION
From the above report it has been concluded that innovation has become one of the
important factor in the organisation as it has major contribution in success and development of
the company. People in 21 century are highly dependent on technology and prefer innovative and
technology based products and services. The organisations in this modern environment need to
focus on the innovation and apply design thinking model in order to meet the needs and
expectation of its potential customers. Innovation is acting as the source of attraction also as it
helps in attracting and engaging customers.
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REFERENCES
Books & Journals
Liedtka, J., 2014. Innovative ways companies are using design thinking. Strategy & Leadership.
Dijksterhuis, E. and Silvius, G., 2017. The design thinking approach to projects. The Journal of
Modern Project Management, 4(3).
Henriksen, D., Richardson, C. and Mehta, R., 2017. Design thinking: A creative approach to
educational problems of practice. Thinking skills and Creativity, 26, pp.140-153.
Dorst, K., 2010. The nature of design thinking. In Design thinking research symposium. DAB
Documents.
Thoring, K. and Müller, R.M., 2011, October. Understanding the creative mechanisms of design
thinking: an evolutionary approach. In Procedings of the Second Conference on
Creativity and Innovation in Design (pp. 137-147).
Seeber, L., and et.al., 2015. A design thinking approach to effective vaccine safety
communication. Current drug safety. 10(1). pp.31-40.
Retna, K.S., 2016. Thinking about “design thinking”: A study of teacher experiences. Asia
Pacific Journal of Education, 36(sup1), pp.5-19.
Netflix. 2020. [online available through;<https://digital.hbs.edu/platform-digit/submission/why-
netflix-is-winning-the-entertainment-battle/>]
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