The Explainer: What Is Design Thinking?


When companies set strategy,
they often stumble. Either they collect a lot
of backward-looking data, which doesn’t tell them what
future customers really want. Or they make risky bets based
on instinct instead of evidence. Design thinking is a
strategy-making process that avoids these
mistakes by applying tools from the world of
design and shifting the focus to human behavior. Popularized by David M.
Kelley and Tim Brown of IDEO and Roger Martin of
the Rotman School, design thinking has
three major stages. First, invent a future. Form a few theories
about what customers might want, but don’t
have by immersing yourself in their lives. Instead of polling them about
specific products or services, observe and ask questions
about their behavior. Next, test your ideas out. Use iterative prototyping
with good enough products or services, and conduct
a few quick experiments to see how consumers respond. Adjust the product, the pricing,
or the positioning accordingly. Finally, bring the new
product or service to life. When you’ve got a winner,
identify the activities, capabilities, and
resources your company will need to actually produce,
distribute, and sell it. For example, when senior
managers at Procter & Gamble wanted to turn around the
skin care brand Oil of Olay, they began by observing shoppers
in both mass retail channels and high-end department stores. They realized that
their industry had been primarily
targeting women over 50 who were worried about wrinkles,
while pretty much ignoring those in their 30s and
40s who were concerned about other issues. This was a huge
market to be captured. So P&G experimented with
new formulations that would tackle multiple
skin care goals then tested different
prototypes, price points, and store displays. Finally, the company launched
a series of new premium, yet broadly distributed
products that were well-received by a
wide range of consumers. By using imaginative,
human-centered problem solving, , design thinking can help you
unlock new markets and identify new strategies. [MUSIC PLAYING]

3 comments

  • Harsono Setiono

    Stage 1: Invent The Future – Find out and observe what customers really want.

    Stage 2: Test Your Idea – Use prototyping and experiment based on the market's respond, then adjust it.

    Stage 3: Bring It To Life – Identify the activities, capabilities, and resources to mass produce it.

    Reply
  • R Mm

    wow…

    Reply
  • Jeremy Walker

    The people in this video kinda look like they just stepped out of Superhot

    design only moves when you move

    Reply

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