MBA (SEM-I)

Design Thinking
(KMBN 106)

Concept of Design Thinking

Design thinking is a non-linear, iterative process that teams use to understand users,
challenge assumptions, redefine problems and create innovative solutions to prototype and
test. Involving five phases—Empathize, Define, Ideate, Prototype and Test.

Design thinking is suited to addressing a wide range of Challenges and is best used for bringing
about innovation within the following context:-

1. Redefining value
2. Human centered innovation
3. Quality of life
4. Problems affective diverse group of people
5. Involve multiple system
6. Shifting market and behavior
7. Coping with rapid social or market changes
8. Issue relating to new technology
9. Re-investing business model
10. Addressing rapid change in society
11. Entrepreneurial initiatives
12. Educational advances

Design Thinking is both an ideology and a process, concerned with solving complex problems in
a highly user-centric way.
Design Thinking is an approach used for practical and creative problem-solving. It focuses on
humans first and foremost, seeking to understand people’s needs and come up with effective
solutions to meet those needs.

Features of design thinking

1. Conditioned inventiveness
2. Human centered focus
3. Environment centered focus
4. Ability to visualize
5. Tempered optimism
6. Bias for adaptively
7. Systematic vision
8. Ability to use language as a tool
9. Affinity for team work
10. Self-governing practicality
The Four Principles of Design Thinking

 The human rule: No matter what the context, all design activity is social in nature, and
any social innovation will bring us back to the “human-centric point of view”.
 The ambiguity rule: Ambiguity is inevitable, and it cannot be removed or
oversimplified. Experimenting at the limits of your knowledge and ability is crucial in
being able to see things differently.
 The redesign rule: All design is redesign. While technology and social circumstances
may change and evolve, basic human needs remain unchanged. We essentially only
redesign the means of fulfilling these needs or reaching desired outcomes.
 The tangibility rule: Making ideas tangible in the form of prototypes enables designers
to communicate them more effectively.

The Five Phases of Design Thinking

Phase 1: Empathise
Empathy provides the critical starting point for Design Thinking. The first stage of the process is
spent getting to know the user and understanding their wants, needs and objectives. This means
observing and engaging with people in order to understand them on a psychological and
emotional level. During this phase, the designer seeks to set aside their assumptions and gather
real insights about the user.

Phase 2: Define
The second stage in the Design Thinking process is dedicated to defining the problem. You’ll
gather all of your findings from the empathise phase and start to make sense of them: what
difficulties and barriers are your users coming up against? What patterns do you observe? What
is the big user problem that your team needs to solve? By the end of the define phase, you will
have a clear problem statement.
Phase 3: Ideate
The third phase in the Design Thinking process is where the creativity happens, and it’s crucial
to point out that the ideation stage is a judgement-free zone! Designers will hold ideation
sessions in order to come up with as many new angles and ideas as possible. There are many
different types of ideation technique that designers might use, from brainstorming and
mindmapping to bodystorming (roleplay scenarios) and provocation — an extreme lateral-
thinking technique that gets the designer to challenge established beliefs and explore new options
and alternatives. Towards the end of the ideation phase, you’ll narrow it down to a few ideas
with which to move forward.

Phase 4: Prototype
The fourth step in the Design Thinking process is all about experimentation and turning ideas
into tangible products. A prototype is basically a scaled-down version of the product which
incorporates the potential solutions identified in the previous stages.

Phase 5: Test
After prototyping comes user testing, but it’s important to note that this is rarely the end of the
Design Thinking process. In reality, the results of the testing phase will often lead you back to a
previous step, providing the insights you need to redefine the original problem statement or to
come up with new ideas you hadn’t thought of before.

Is Design thinking a linear process?

No! You might look at these clearly defined steps and see a very logical sequence with a set
order. However, the Design Thinking process is not linear; it is flexible and fluid, looping back
and around and in on itself! With each new discovery that a certain phase brings, you’ll need to
rethink and redefine.

Purpose of Design Thinking

1. Foster creativity and innovation

2. Knowledge and experience
3. Problem solving
4. Remove blinkers and consider alternative solution
5. Exploring new idea and pathway

Factor which affect the success of design thinking:-

1. Multidisciplinary teams
2. Design thinking process
3. Variable space

“Wicked problem” in Design Thinking

Design Thinking is especially useful when it comes to solving “wicked problems”. The term
“wicked problem” was coined by design theorist Horst Rittel in the 1970s to describe particularly
tricky problems that are highly ambiguous in nature. With wicked problems, there are many
unknown factors; unlike “tame” problems, there is no definitive solution. In fact, solving one
aspect of a wicked problem is likely to reveal or give rise to further challenges. Another key
characteristic of wicked problems is that they have no stopping point; as the nature of the
problem changes over time, so must the solution. Solving wicked problems is therefore an
ongoing process that requires Design Thinking.

Some examples of wicked problems in our society today include things like poverty, hunger and
climate change.

Benefits of Design Thinking

1. Significantly reduces time-to-market
2. Cost savings and a great ROI
3. Improves customer retention and loyalty
4. Fosters innovation
5. Can be applied company-wide

Challenges in Design thinking:-

1. People want human centric output without human input
2. Misalignment is a risk to every design thinking project
3. Short term thinking
4. Challenges of scale and pace
5. Designers and product stakeholders perfectionist block

Innovation challenges in design thinking

1. People desirability
2. Business viability
3. Technical feasibility
Definition and meaning of an Innovation
Innovation is creating new value and/or capturing value in a new way. Value is the key word,
stressing the difference between innovation and invention. The definition is simple, easy to
memorize and also good enough to encompass innovation in all the value chain.

— Victor Fernandes, Natura

Innovation is something new to your business that fills an untapped customer need. Ideally, the
innovation builds a new market.

— Jonathan Rowe, Gene Express Inc.

Peter Drucker said “Innovation is the specific instrument of entrepreneurship… the act that
endows resources with a new capacity to create wealth.”

“Innovation is the process of creating value by applying novel solutions to meaningful

problems.”

The reason we believe it has utility is in the three explicit tests for “innovative-ness” we can
apply:

 Is it novel? The notion of novelty is baked right into the word “innovation.” If it’s not
new, it’s probably more optimization than innovation.
 Does it solve a meaningful problem? If not, maybe it’s art instead of innovation. That’s
not to say art isn’t valuable, but it’s generally not designed to solve a problem. To us,
innovation is.
 Does it create value? If not, maybe it’s an invention rather than innovation. Inventions
can lead to value creation, but usually not until someone applies them through
innovation.

Essential ingredients of Innovation:-

1. Something New
2. Better than what exists
3. Economically Feasible
4. Widespread Appeal

Source of innovation:-
1. Unexpected Success, Failure or outside event
2. Incongruity in reality
3. Process need
4. Change in industry and market
5. Demographical change
6. Change in Perception, mood etc.
 7. New Knowledge

Innovation Process:-

Understanding the problem

Imagination

Action and Implementation

Types of Innovation
This is a very polarizing and simplistic perspective that does not take into account the different
types of innovations that companies can and do pursue.

For this post, let’s break down innovation into two dimensions: Technology and Market, which
gives us the following 4 types of innovation:

Incremental Innovation
Incremental Innovation is the most common form of innovation. It utilizes your existing
technology and increases value to the customer (features, design changes, etc.) within your
existing market. Almost all companies engage in incremental innovation in one form or another.

Examples include adding new features to existing products or services or even removing features
(value through simplification).
Disruptive Innovation
Disruptive innovation, also known as stealth innovation, involves applying new technology or
processes to your company’s current market. It is stealthy in nature since newer tech will often
be inferior to existing market technology. This newer technology is often more expensive, has
fewer features, is harder to use, and is not as aesthetically pleasing. It is only after a few
iterations that the newer tech surpasses the old and disrupts all existing companies. By then, it
might be too late for the established companies to quickly compete with the newer technology.

There are quite a few examples of disruptive innovation, one of the more prominent being
Apple’s iPhone disruption of the mobile phone market. Prior to the iPhone, most popular
phones relied on buttons, keypads or scroll wheels for user input. The iPhone was the result of a
technological movement that was years in making, mostly iterated by Palm Treo phones and
personal digital assistants (PDAs). Frequently you will find that it is not the first mover who
ends up disrupting the existing market.

Architectural Innovation
Architectural innovation is simply taking the lessons, skills and overall technology and applying
them within a different market. This innovation is amazing at increasing new customers as long
as the new market is receptive. Most of the time, the risk involved in architectural innovation is
low due to the reliance and reintroduction of proven technology. Though most of the time it
requires tweaking to match the requirements of the new market.

In 1966, NASA’s Ames Research Center attempted to improve the safety of aircraft cushions.
They succeeded by creating a new type of foam, which reacts to the pressure applied to it, yet
magically forms back to its original shape. Originally it was commercially marketed as medical
equipment table pads and sports equipment, before having larger success as use in mattresses.
This “slow spring back foam” technology falls under architectural innovation. It is commonly
known as memory foam.

Radical innovation
Radical innovation is what we think of mostly when considering innovation. It gives birth to
new industries (or swallows existing ones) and involves creating revolutionary technology. The
airplane, for example, was not the first mode of transportation, but it is revolutionary as it
allowed commercialized air travel to develop and prosper.

The four different types of innovation mentioned here – Incremental, Disruptive, Architectural
and Radical – help illustrate the various ways that companies can innovate. There are more ways
to innovate than these four. The important thing is to find the type(s) that suit your company
and turn those into success.
Role of Innovation in industry and Organization:-
1. Leads competitive advantage in the market
2. Bring loyal Customer
3. Creating unique selling proposition
4. Enhanced brand value
5. Constant Improvement

Creativity
From Human Motivation, 3rd ed., by Robert E. Franken:

Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities

that may be useful in solving problems, communicating with others, and entertaining ourselves
and others.

Characteristics of the creative personality:

o Creative individuals have a great deal of energy, but they are also often quiet and at rest.

o Creative individuals tend to be smart, yet also naive at the same time.
o Creative individuals have a combination of playfulness and discipline, or responsibility and
irresponsibility.
o Creative individuals alternate between imagination and fantasy ant one end, and rooted sense
of reality at the other.
o Creative people seem to harbor opposite tendencies on the continuum between extroversion
and introversion.
o Creative individuals are also remarkable humble and proud at the same time.
o Creative individuals to a certain extent escape rigid gender role stereotyping and have a
tendency toward androgyny.
o Generally, creative people are thought to be rebellious and independent.
o Most creative persons are very passionate about their work, yet they can be extremely
objective about it as well.
o The openness and sensitivity of creative individuals often exposes them to suffering pain yet
also a great deal of enjoyment.

How to enhance creativity

1. Commit Yourself to Creativity

2. Become an Expert
3. Reward Your Curiosity
4. Take Risks
5. Build Your Confidence
6. Make Time for Creativity
7. Overcome a Negative Attitude
8. Fight Fear of Failure
9. Brainstorm New Ideas
10. Explore Multiple Solutions
11. Keep a Creativity Journal
12. Use Mind Maps and Flow Charts
13. Challenge Yourself and Create Opportunities

Creativity thinking

Creative thinking refers to using abilities and soft skills to come up with new solutions to
problems. Creative thinking skills are techniques used to look at the issue from different and
creative angles, using the right tools to assess it and develop a plan.

Characteristics of Creative Thinking:-

1. Receptivity: - "Creative people are open to new ideas and welcome new experiences."
2. Curiosity: - "Researching unfamiliar topics and analyzing unusual systems is a source of
delight for most creative people."
3. Wide Range of Interests: - "an artist who has a background in literature, geology, archery,
music and history can make more connections than a narrow-minded specialist."
4. Attentiveness: - "Realizing that every experience is valuable, creative people pay attention
to seemingly minor details."
5. Connection Seeking: - "Seeing the similarity among seemingly disparate parts has often
sparked a creative breakthrough."
6. Conviction: - "Creative people value existing knowledge". Our knowledge base is built
upon. Scientists build upon old ideas to extend their work, sometimes transforming those
older ideas and creating something new.
7. Complexity: - "The risk-taker gets the job started; the safe-keeper gets the job done."
There are a plethora of things/emotions that occur when completing a project.

Benefits of creative thinking

 Ability to create the best solutions to daily demands, which provides value to clients
and your own business;
 Improvement on problem-solving for not only work-related matters but also those in
your personal life;
 Higher workplace involvement in daily activities and engagement, which is beneficial to
a healthier environment;
 A better understanding of data — also known as data literacy — and how to present it
through data storytelling;
 Focus on self-improvement as you and your teammates will develop more soft skills.
 More effective teamwork and bonding, since people grow used to bouncing off original
ideas and learn each other’s creative traits.
Type of creativity

Convergent vs. divergent thinking

The American psychologist J. P. Guilford was one of the first to work on intelligence assessment
and creativity.
He coined the terms “divergent” and “convergent” thinking in the late 50s.
Guilford described convergent thinking is the act of gathering facts and data to give one simple
answer, possibly the correct one, to a problem. It doesn’t leave any room to flexibility or
ambiguity. It is the type of thinking used to answer multiple-choice questionnaires.

Divergent thinking is the opposite of convergent thinking. It’s the process of generating multiple
ideas from one topic, of exploring as many solutions as possible to a problem. There is no right
or wrong answer in divergent thinking. It is the type of thinking used in brainstorming sessions,
where participants share a flow of ideas associated with the topic, before using convergent
thinking to narrow the solutions down.

Divergent thinking is a creative thinking because it lets people think outside the box by making
connection between things that would not necessarily be connected in a more restricted
environment.

The visual below shows what divergent and convergent thinking look like:

Role of creativity in Industry and organisation

1. Ability to discover new solution

2. Increase efficiency
3. Enhance knowledge
4. Assists in explaining opportunities

The four stages of the creative process:

Stage 1: Preparation

The creative process begins with preparation: gathering information and materials, identifying
sources of inspiration, and acquiring knowledge about the project or problem at hand. This is
often an internal process (thinking deeply to generate and engage with ideas) as well as an
external one (going out into the world to gather the necessary data, resources, materials, and
expertise).

Stage 2: Incubation

Next, the ideas and information gathered in stage 1 marinate in the mind. As ideas slowly
simmer, the work deepens and new connections are formed. During this period of germination,
the artist takes their focus off the problem and allows the mind to rest. While the conscious mind
wanders, the unconscious engages in what Einstein called “combinatory play”: taking diverse
ideas and influences and finding new ways to bring them together.

Stage 3: Illumination
Next comes the elusive aha moment. After a period of incubation, insights arise from the deeper
layers of the mind and break through to conscious awareness, often in a dramatic way. It’s the
sudden Eureka! that comes when you’re in the shower, taking a walk, or occupied with
something completely unrelated. Seemingly out of nowhere, the solution presents itself.
Stage 4: Verification

Following the aha moment, the words get written down, the vision is committed to paint or clay,
the business plan is developed. Whatever ideas and insights arose in stage 3 are fleshed out and
developed. The artist uses critical thinking and aesthetic judgment skills to hone and refine the
work and then communicate its value to others.

Creative thinking techniques

As you have just learned, creative thinking can be triggered by some widely used techniques.
These are effective methods to help you come up with new ideas, test them under new
environments, and count on other people’s input to make them even more innovative.

 Brainstorming

This technique can be very useful in small or large-scale problems that require a creative solution. The
main goal is to form a group of people and throw around ideas without interference.
The general idea of brainstorming is that, by having an excess of creative potential solutions, it gets easier
to reach one with the highest level of quality.
  Lateral thinking

Sometimes, the answer to a problem is not in front of it, but besides it. That is the general idea of lateral
thinking, which is a great way to exercise your creative soft skills and come up with innovative plans.
Lateral thinking involves looking in less obvious areas and lines of reasoning. It can work well if you and
your partners try to put yourselves under different perspectives or reverse the problem to look at it
differently.
For instance, the direct solution to a loss of sales online would be to put up more ads and promotions.
However, lateral thinking might reach alternative paths, like using e-mail marketing to reach customers
that have not bought from you in a while.

 Mind mapping

The process of mind mapping helps you connect ideas you never imagined could be combined. Because
of that, it might help you reach appropriate solutions while using creative thinking skills.
A mind map is a chart where you input ideas and connect them. It can have possible solutions to a
problem, its immediate consequences, and be the best course of action to deal with them. Alternatively,
your mind map can serve as a way to see a bigger picture regarding what you are trying to do.
Mind mapping can even be done individually. Sometimes, you may already have all the ideas you need
but it is required to put them to paper. Creating a mind map helps to organize them and naturally reach
conclusions.

Examples of creativity skills

Besides these creative thinking techniques we presented in this chapter, there are several skills you’ll
need to develop to enjoy the advantages of the techniques. Some of the creativity skills may include:

1. Experimentation
2. Opposing Views
3. Asking Questions
4. Communication
5. Organization

Difference between Creativity and Innovation

The primary difference between creativity and innovation is that the former refers to conceive a
fresh idea or plan, whereas the latter implies initiating something new to the market.

BASIS FOR
CREATIVITY INNOVATION
COMPARISON

Meaning Creativity is an act of creating Innovation is the introduction of

new ideas, imaginations and something new and effective
possibilities. into the market.

Process Imaginative Productive

Quantifiable No Yes
BASIS FOR
CREATIVITY INNOVATION
COMPARISON

Related to Thinking something new Introducing something new

Money Consumption No Yes

Risk No Yes

Definition of Creativity

Creativity is the characteristic of a person to generate new ideas, alternatives, solutions, and
possibilities in a unique and different way.
Creativity is the ability to conceive something unpredictable, original and unique. It must be
expressive, exciting and imaginative. It is the mirror of how beautifully a person can think in any
given circumstance.
It is not genetic but can be developed if someone keeps on learning and comprehending things
with a rare and exclusive perception. Creativity is a brainstorming and mind-blogging activity in
which a person has to think beyond his imagination for bringing something worthwhile. It is an
activity of unveiling something which was previously hidden.

Definition of Innovation
Innovation is an act of application of new ideas to which creates some value for the business
organization, government, and society as well. Better and smarter way of doing anything is
innovation. It could be the introduction of:

New technology.
New product line or segment.
A new method of production.
An improvement in the existing product.

Innovation is closely tied to creativity i.e. putting creative ideas into action is an innovation,
whose consequences should be positive. It is the process of doing something better for the first
time, which was not previously done by any entity. It can also be termed as a change which can
bring a new edge to the performance and productivity of the company. It is of two types i.e.
evolutionary and revolutionary.

Key Differences between Creativity and Innovation

The following are the major differences between Creativity and Innovation:

 The quality of thinking new ideas and putting them into reality is creativity. The act of
executing the creative ideas into practice is innovation.
 Creativity is an imaginative process as opposed to innovation is a productive process.
 Creativity can never be measured, but Innovation can be measured.
 Creativity is related to the generation of ideas which are new and unique. Conversely,
 Innovation is related to introduce something better into the market.
 Creativity does not require money. On the other hand, innovation requires money.
 There is no risk involved in creativity, whereas the risk is always attached to innovation.

Example

The invention of the motorcycle was the biggest innovation over scooters. In early centuries,
people used to travel with scooters, for which they have to make lots of efforts to start it like they
need to strike the kick and knee down from either side if it doesn’t start. So, years and years
passed away, and nobody even thought for the invention of bikes. The invention of the
motorcycle makes them realize that they can also ride bikes without making any extra efforts;
they just have to click the switch and its starts automatically.
In this example, the thought of creation of a new traveling motorcycle is creativity, but the actual
invention of it is innovation.

Conclusion
There is always a dispute between creativity and innovation as both are important for an
organization to last longer. The existence of both can lead to success. After a huge discussion,
let’s know about how we can be creative – by asking questions, drawing conclusions,
experimenting & exploring new ideas and widening the areas of thinking. For being innovative, a
person must have the ability to take risks, experimenting, asking questions and observing things.