Andrei Maxwel MülbauerDigital Media Management Crew 6 HYPER ISLAND May 2015

The purpose of this critical review is to explore the concept of design thinking and its applicability. Using a holistic perspective, the author investigates how companies are using design thinking, presents different approaches, analyzes the value creation and identifies obstacles in its implementation.

May 2015

DESIGNTHINKING

IntroductionIn recent years there has been a lot of emphasis in how design thinking is shaping innovation around the

word. Although it seems to pop up everywhere, there are different interpretations around it.

Design thinking is the form of thought that enables movement along the knowledge funnel, and the firms that master it will gain a nearly inexhaustible, long-term business advantage. The advantage, which emerges from the design-thinking firms’ unwavering focus on the creative design of systems, will eventually extend to the wider world. From these firms will emerge the breakthroughs that move the world forward".

Roger Martin Design of Business, p. 21

"Design thinking may look more pedestrian than miraculous, but it is capable of reliably producing new and better ways of creatively solving a host of organizational problems".

Jeanne Liedtka Solving problems with design thinking, p. 21

"In times when it seems everyone has to re-invent themselves on a regular basis, design thinking is a versatile and crucial skill".

Christiane Drews Unleashing the fullpotential of designthinking as a businessmethod, p. 44

"a methodology that imbues the full spectrum of innovation activities with a human-centered design ethos".

Tim Brown Design thinking, p.86

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The literature analyzed shows that design thinking can be used as a method to promote innovation across different facets of an activity. A central proposition is in using a convergence and divergence frameworks to create more choices and discover new opportunities.

It is a methodology, not scientific, but composed of analysis, imagination and intuition that aims to create solutions to problems or issues in a creative way. It’s a swiss-army knife composed of techniques and tools to help organizations and individuals promote innovation.

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Different approachesThe present study also indicates the existence of different approaches inside the design thinking field. In

order to demonstrate its similarities, simplified versions of them have been illustrated below.

The Four Questions Design Thinking for Educators Toolkit Service Design Thinking

This research does not have the intention of going deep into the different approaches, but it is applicable here to present them with the purpose of demonstrate that design thinking can have different techniques. All the models are composed of phases an follow a non-linear dynamic. Each phase is composed by specific steps that individuals can follow along, and it becomes more linear by the end of the process.

Mootee (2013), emphasizes the adaptability of design thinking as a method that can be predictable and repeatable, but can also be an adaptive approach to leverage the power of intuition.

Design thinking is an interactive process with emphasis on the user participation in the process. Organizations can apply it to gather information in products and services development phases, identification of problem areas and new opportunities to generate innovative solutions (Stickdorn and Schneider, 2011).

For instance, Chen and Venkatesh (2013) articulate that design thinking is an open-ended creative process, used by organizations to design outputs such as products, services, and communication. Additionally, it can be used to improve the brand image and maximize differentiation from competitors.

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Source: From Solving Problems with Design Thinking © 2013 Jeanne Liedtka, Andrew King and Kevin Bennett.

Source: From Design thinking for strategic innovation © 2013 Idris Mootee.

Source: From Design Thinking for Educators Toolkit, 2nd edition © 2012 Ideo.

Organizations of all kinds (for-profit and non-profit) can benefit from design thinking to solve problems or create innovation (Randall and Liedtka, 2014). In addition, design thinking can be used as a method for understanding customers during uncertain moments, providing a better overview of the ecosystem and its interactions (Mootee, 2013).

For Brown (2014) organizations, teams and individuals need to trust the process and cultivate a positive attitude, in order to create relevant ideas that fit identified needs and preferences. This mindset enables teams to get more confident, develop intimate connections and unlock human potential Moore (0000).

Based on Randall and Liedtka (2014) research, a range of design thinking uses in different contexts can be illustrated below, from education to non-profit purposes:

InternalChallenges

Engage Customersmore fully

Managementdevelopment

Individualskill building

Social and environmentalresponsibility

With that in mind, two questions appear to be relevant: First, what structural elements are relevant to create a successful design thinking outcomes? Second, In which extension does the participants contribute to the process?

How companies are using design thinkingThe possibilities of design thinking are immense, and it has been widely adopted as an innovation tool in a

variety of industries.

“ Some large companies have turned to design thinking as a way to help them make sense of disruption and sustain competitiveness".

Idris Mootee Design Thinking forStrategic Innovation, p. 3

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The highest payoff from adopting a design-thinking approach was not necessarily in identifying a solution, but rather in innovating how people worked together to envision and implement the new possibilities they discovered".

Leanne Liedtka Innovative ways companies areusing design thinking, p. 44

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"It’s not necessary to be an industrial designer to adopt the habit of prototyping: financial services executives, retail merchants, hospital administrators, city planers, and transportation engineers can and should participate in this essential component of design thinking."

Tim Brown Change by Design, p. 88

Taking that in account, it is important to make sure that a team in a design thinking system is composed by individuals with different backgrounds. With that in mind, the diversity of perspectives, talents and experiences can be one of the most relevant factors to get tangible results (Randall and Liedtka, 2014).

In addition, opportunities are a direct result of the effort added to the process. The more the participants get involved and go deeper in asking concise and consistent questions, the better their results are going to be. As Mootee (2013) reminds his readers, the participants have to be aligned around specific goals and the methodology must be consistent to arose empathy and foster creativity.

Furthermore, these arguments indicate that design thinking can provide huge benefits for the stakeholders. However, it is important to be aware of the time necessary to make the participants involved and comfortable with the process.

The importance of teams in design thinkingTiming, communication, empathy, and a structured process are essential elements in an environment

designed to offer a consistent teamwork.

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Value creation through design thinkingIn the knowledge-driven economy, customers are playing a different role. Understanding people’s

preferences and needs becomes the core when designing products and services.

In Mootee's (2013) perspective, a human-centric orientation creates a stronger alignment between stakeholders, both within and outside the organization, around a common purpose. This model can be applied in all product or service development phases and also to processes like corporate communication, brand building and marketing (Stickdorn and Schneider, 2011).

Design thinking is always most effective when it successfully connects strategic planning with execution of products, services, and communication."

Thomas Lockwood Design Thinking, p. 81

“ “ …value begins with people, not products. It seeks to locate the functional, emotional, social, and cultural values that already exist within or can be designed into a brand’s DNA and align those with the current and emerging values of consumers."

Idris Mootee Design Thinking forStrategic Innovation, p. 120

HUMAN-CENTRICAdopting design thinking across the o rgan i za t i on can open up new opportunities and growth strategies in existing markets or even envision new possibilities (Lockwood, 2010). On the other hand, one of the barriers for innovation is the culture itself, given constraints as economical viability or the system, present in organizations of all sizes (Mootee, 2013).

BUSINESS MODELAt the speed that technology is evolving and information becomes more complex, organization need to adapt and evolve fast (Mootee, 2013). Stickdorn and Schneider (2011) outlines that design thinking comes in handy, providing tools and techniques that can be applied in a fast pace in response to client's needs and project generated materials.

ADAPTABLE AND FLEXIBLE

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Obstacles to implement design thinkingAlthough design thinking can play an important role in innovation, limitations such as bureaucracy or inertia

are still barriers that organizations need to deal with.

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Randall and Liedtka (2014) states that the biggest obstacle to innovation lies in internal factors such as bureaucracy and inertia, instead of external factors such as market, avid competition, lack of customers or economy instability.“ The strategic framing of complex

and ambiguous issues requires an approach free from organizational dogmas, codified limitations, and old assumptions. A large part of the design thinking process is stepping out of conventional roles and escaping from existing dogmas to explore new approaches to problem solving."

Idris Mootee Design Thinking forStrategic Innovation, p. 65

1.As Drews (2009) points, it takes time to incorporate design thinking practices inside corporations, it is not a process that delivers quick results. In a perfect scenario, design thinking would run smoothly. But in the real world, the incorporation of design thinking practices inside an organization depends on a series of factors that influence each other. The outcomes are directly affected by the knowledge of individual about design thinking framework, corporative culture, environmental and geographical location among others.

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Working effectively in multidisciplinary team requires clear and effective communication, deeper empathy, strong connection and involvement between the individual (Seidel and Fixson, 2013).3.Callaghan (2009) suggests that the effectiveness of design thinking can be reached by measuring factors such as: 1) levels of involvement; 2) satisfaction; and 3) actionability of ideas generated. Further analyzing it, actionability is a subjective term, which means that there a need for implementation of the actual design thinking process.

4.No prior experience and exposure to techniques and tools can affect the results, to mitigate possible risks early on, team members need to be immersed in a bootstrap process, to guarantee that individuals are ready to ideate, experiment, fail and try without the fear of rejection (Liedtka, King and Bennett, 2013).

5.

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As a self-made entrepreneur with an Business Administration Bachelor’s degree, entering the design thinking territory at first got me to reevaluate many of my previous concepts. It appeared as new approach to management and strategy, but also complex and uncertain at the same time.

Coming from a small company that had a deep rooted traditional management system, I faced several barriers and constraints when I tried to implement an environment of participation, openness and individual initiative.

Briefly experiencing design thinking during the Master’s program at Hyper Island, some behaviors already stand out as the central elements in a strong innovative environment: empathy, vision, clear communication, timing and feedback.

From a managerial perspective, it turns out that a culture of innovation can be a key capability in a constantly and rapid evolving world. In addition, design thinking can provide a new dimension to building an organization, an idea, a product or a service.

In contrast, a previous experience demonstrates that creating a new project alongside with ongoing projects inside a company, requires a compelling vision and acceptance from members. Also, analyzing from a human-centric approach, the project failed to uncover hidden aspects of customers’ needs. According to Brown (0000), to be successful an experience requires active and dynamic consumer participation in every touchpoint, accurate timing, designed with attention to details and last, but not least important, an authentic customer experience.

LearningsAN ENTREPRENEUR’S PERSPECTIVE

Working as a project manager for several years, I was constantly faced with dealing with clients coming with unclear needs, totally disconnected or unaligned with company's strategies. From a design thinker perspective, it becomes my responsibility, while working alongside with the client, whenever is necessary to evaluate the problem or idea and if appropriate, suggest a reframed perspective to the question.

Furthermore, I constantly challenged myself to encourage the team to take initiative and shift their perceptions of themselves and their work. Design thinking toolkit broadens the perspective and offers important elements of transformation that can be applied in a daily basis, to spread a compelling vision through out the organization and leverage individuals potential.

Moreover, it becomes a valuable resource for identifying opportunities and transforming the way organizations evaluate innovation efforts. When systematically applied, turns into a hands-on activity to form a collaborative environment.

Also, design thinking can become a pain point inside the organization if not executed correctly. Cost lots of money and don’t don’t get to the point it was meant to touch: innovation.

Overall, project managers can benefit from design thinking in many ways: going deeper on understanding users' needs and preferences, get faster feedback and provide more accurate deliverables. Internally create a more fluid environment, emotionally connected to the team.

A PROJECT MANAGER'S PERSPECTIVE

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What I would do differentlyFrom an holistic point of view, the research showed me the importance of implementing design thinking techniques and tools inside my own organization as a framework to develop a sense of awareness in the members of the team about the importance of what is being implemented.

In addition, my previous experience shows the impact of lack of engagement. Design thinking can be an interesting method for creating an environment of trust, commitment and ownership. Also providing them a clear and effective feedback system.

Establishing of an innovation ecosystem demands an understanding of all the stakeholders. In an attempt to diversify the city’s economy, the council implement a tourism project, but they came up with a ready solution, without consulting the population during the research and development phase. That caused a citizens’ lack of engagement and miscommunication problem. For this reason, If I were to work on a similar project:

• I would spend more time in the research;

• Study success cases like the city of Dublin, Ireland, where the city council used Design Thinking to improve city engagement and revitalizing urban spaces. Randall and Liedtka (2014)

• Create a team with diversity of experiences and backgrounds, making sure that the project has some representatives of all citizens, working in a co-creation process;

• Develop awareness on citizens. Develop mechanisms to inform the population and enable people to become an active voice in the project;

• Execute a beta experience in smaller scale first;

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Brown, T. 2014, Change by design, HarperCollins e-books.

Brown, T. 2008, "Design thinking", Harvard business review, vol. 86, no. 6, pp. 84.

Callaghan, E. 2009, "Personalities of design thinking", Design Management Journal, vol. 4, no. 1, pp. 20-32.

Chen, S. & Venkatesh, A. 2013, "An investigation of how design-oriented organisations implement design thinking", Journal of Marketing Management, vol. 29, no. 15-16, pp. 1680-1700.

Drews, C. 2009, "Unleashing the full potential of design thinking as a business method", Design Management Review, vol. 20, no. 3, pp. 38-44.

Liedtka, J., King, A. & Bennett, K. 2013, Solving problems with design thinking: Ten stories of what works, Columbia University Press.

Lockwood, T. 2010, Design thinking: Integrating innovation, customer experience, and brand value, Skyhorse Publishing, Inc.

Mootee, I. 2013, Design thinking for strategic innovation: What they can't teach you at business or design school, John Wiley & Sons.

Randall, R. & Liedtka, J. 2014, "Innovative ways companies are using design thinking", Strategy & Leadership, vol. 42, no. 2, pp. 40-45.

Roger, M. 2009, "Design of business: why design thinking is the next competitive advantage", .

Seidel, V.P. & Fixson, S.K. 2013, "Adopting design thinking in novice multidisciplinary teams: The application and limits of design methods and reflexive practices", Journal of Product Innovation Management, vol. 30, no. S1, pp. 19-33.

Stickdorn, M., Schneider, J. & Andrews, K. 2011, This is service design thinking: Basics, tools, cases, Wiley.

References