What is Design Thinking? Discover Its Benefits and the Process Phases

Have you heard about design thinking, but aren’t sure what it means for your business? Whether you’re designing a new product, solving a complex problem, or simply looking to innovate, this method offers a proven, user-centred approach to success.

This blog will answer “What is design thinking?”, explain its applications and benefits, break down the design thinking process, and provide real-life examples of its impact. We’ll also compare it to Agile and Lean methodologies and share tips on creating a workspace conducive to human-centred design techniques.

From its principles to its practical use in driving business transformation, you’ll gain every insight you need to start applying design thinking today.

What is Design Thinking and Why Is It Important?

At its core, design thinking is a problem-solving methodology that focuses on understanding user needs. It’s all about tackling challenges creatively, developing innovative solutions, and improving user experiences.

Unlike traditional planning approaches, this one places a strong emphasis on:

• Empathy for the user.
• Iterative problem-solving through prototyping and testing.
• Collaboration across multidisciplinary teams.

This methodology thrives in ambiguity, providing the motivation to tackle challenges where solutions may not be obvious. From reimagining customer journeys to creating groundbreaking products, design thinking allows businesses to innovate with confidence.

Design Thinking in Business: What Is It Used For?

Design thinking is versatile, which is why it’s gained traction across industries—from tech giants to retail and startups. Businesses use it for:

• Redesigning customer experiences to drive satisfaction and retention.
• Developing new products or services that align with market expectations.
• Streamlining internal processes, improving team productivity.
• Enhancing stakeholder engagement by addressing their pain points.

For example, companies like Airbnb and Nike have tapped into design thinking and innovation to redefine their products and user experiences, seeing exponential growth as a result.

Benefits of the Design Thinking Methodology

Adopting a design thinking process unlocks several key advantages that set businesses apart:

1. Customer-Centricity: Solutions are designed with a deep understanding of user needs, ensuring they align with customer expectations.
2. Encourages Innovation: By fostering creativity through brainstorming sessions, teams explore out-of-the-box ideas.
3. Risk Mitigation: Iterative testing helps identify potential failures early, minimising financial or resource risks.
4. Improved Collaboration: Cross-functional teams bring diverse perspectives, producing more refined and actionable insights.
5. Adaptability and Agility: Continuous development makes it easier to pivot or improve solutions based on real-time feedback.

The Design Thinking Process: 5 Key Phases

The design thinking process consists of five phases. These aren’t necessarily linear; teams may cycle back to earlier steps as they refine their solutions.

Phase 1: Empathy in the Process

Empathy is the foundation of this methodology. Understanding your users’ challenges, motivations, and desires ensures your solution serves their real needs.

How it’s done:

• Conduct interviews or surveys.
• Create empathy maps to visualise emotions and behaviours.
• Use customer journey maps to document each touchpoint of the user experience.

Example: When redesigning a customer support system, a business could observe user complaints to understand their frustrations and pain points.

Phase 2: Problem Definition and Understanding the User

Once you’ve gathered insights, consolidate them to define the core issue you need to address. This “problem statement” should be user-centric and actionable.

Questions to consider:

• What obstacles do users face in achieving their goals?
• What specific outcome are we working towards?

A clearly defined problem sets the stage for brainstorming effective solutions.

Phase 3: Ideation in the Thinking Techniques

This step focuses on generating creative concepts. Popular design thinking techniques for ideation include:

• Brainstorming to spark collaboration.
• Brainwriting, where individuals jot down ideas independently.
• Mind mapping to connect and structure ideas visually.

Quantity matters here; you want as many ideas as possible to evaluate later.

Phase 4: Prototyping in the Process

Turn ideas into tangible prototypes, whether it’s a paper sketch, wireframe, or digital mockup. The aim at this stage isn’t perfection but creating testable representations of your concepts.

Key tip: Keep prototypes simple yet functional, focusing on validating one idea at a time.

Phase 5: Testing Design Thinking Solutions

Finally, present your prototypes to real users and gather feedback.

Why it matters:

• Feedback helps refine and optimise designs.
• Testing reveals what resonates with users and what doesn’t.

This iterative step loops back into the process, allowing for improvements before launching a final product or solution.

Examples from Real Companies

The success of design thinking and innovation is evident in real-world results:

1. IKEA developed its “IKEA Place” AR app to help users visualise furniture in their homes, streamlining decision-making.
2. Airbnb transformed its platform’s user experience with this method, bridging gaps between hosts and guests.
3. Nike leveraged it to create the “Nike by You” personalised shoe service, putting customer creativity front and centre.

Design Thinking and Innovation Compared to Agile and Lean

This method often overlaps with Agile and Lean methodologies, but they serve different purposes:

• Design Thinking focuses on uncovering user needs and developing relevant solutions.
• Lean eliminates inefficiencies to maximise value with minimal resources.
• Agile adapts development processes to deliver quick, iterative improvements.

Together, they provide a complementary framework to drive innovation, efficiency, and user satisfaction.

Principles of Design Thinking for Business Transformation

When applying design thinking, keeping these core principles in mind is vital:

• Focus on Empathy: Immerse in the user perspective.
• Encourage Collaboration: Prioritise teamwork across roles.
• Iterate for Success: Consider failure as a learning opportunity.
• Human-Centred Metrics: Judge success by how well solutions meet user needs.

These principles foster an innovation-driven culture that is more adaptable and resilient.

Introduction to the Methodology for Creative Problem Solving

If you’re new to this method, start small by choosing a manageable challenge that your business is currently facing. Next, follow the steps of the design process outlined above to tackle the issue. Finally, reflect on your learnings from the process and make iterations to improve your approach.

Over time, you’ll see how this mindset transforms not just how you solve problems, but also how your organisation operates.

Conclusions: Creating a Human-Centered Design Workspace

A workspace designed with human-centred design techniques in mind plays a crucial role in fostering collaboration, creativity, and innovation. By incorporating open seating arrangements, shared tools, and materials like whiteboards and sticky notes, these spaces encourage brainstorming and teamwork.

Dedicating areas for prototypes and testing further supports iteration and experimentation, embedding this methodology into everyday problem-solving. Ultimately, creating such an environment empowers teams to work more effectively, think creatively, and turn ideas into impactful solutions.