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The Value of Design Thinking in Business

Design thinking is a powerful tool that business leaders can use to move their businesses forward and connect the dots more effectively.

It can be a challenging task to run a business.

Dealing with continually changing business dynamics, managing various stakeholders, meeting ever-increasing customer needs, and dealing with an unknown future with confidence are all tasks that must be accomplished.

This is where Design Thinking can be extremely beneficial. However, in order to understand its use in business notion is important to know its basics.

So, What is Design Thinking?

Design thinking can be defined as an iterative process, which means, a continuous cycle that provides experts with a framework used to solve complex problems.

The concept was born out of big corporations’ lack of ability to be creative and create new products and services that serve the unmet needs of their customers, as a way of using systemic reasoning and intuition to explore ideal future states, always keeping the end-user in mind.

Design thinking is the opposite of traditional problem-solving, which seeks a linear, start-to-finish way to an answer that may not be applicable at a later date.

The foundation of design thinking lies in the value it places on the importance of human-centered design, using empathy to place customers, clients, and other stakeholders at the center of the problem-solving equation, first and foremost.

It's important to realize that design thinking strategies are lean, with the goal of providing a framework that allows designers to critically assess any challenge and offer creative solutions.

However, one framework cannot be stated to be superior to the other. Instead, it's a question of how design thinkers and strategists together apply and facilitate a certain paradigm.

The 4 Rules of Design Thinking

According to Christoph Meinel and Larry Leifer of Stanford University’s Hasso-Plattner Institute of Design, there are four principles of design thinking:

#1 The human rule: This rule is founded on the premise that solving technological challenges from a human-centric approach will always satisfy human needs.#2 The ambiguity rule: Designers must think beyond the box and let go of the desire to solve an issue. This will give students more freedom to think and experiment, as well as the creative confidence to examine novel ideas.#3 The re-design rule: Designers must look back in time to learn how technology has addressed human needs in the past. They can then look at strategies to address future human demands by studying these methods.#4 The tangibility rule: The tangibility rule says that prototyping is the best approach to get insight into how a new product might meet human needs by motivating experimentation, conversation, and creative criticism. It was the newest of the four rules at the time the principles were published.

Why Is Design Thinking So Important?

Up until recently, the world did not completely appreciate the value of customer experience or the many distinct levels of engagement that a customer goes through when using a product.

Today, however, more individuals are realizing that a careful design thinking process can also be a good commercial strategy for solving challenges and increasing consumer happiness.

A devoted customer or end-user is the single most valuable asset that any business can possess, and if we, as designers, begin prioritizing the requirements of our customers and attempting to address their problems, we will definitely always come out on top.

It's critical for businesses to realize that good design may help them develop and generate income while also strengthening their user base.

Design Thinking in Business

Every business has an endless list of objectives, ranging from regularly producing new items that resonate with customers to improving customer service.

When a company decides to launch a new product, a big, expensive machine goes into overdrive, especially in large organizations. The costs are astronomical.

That’s where design thinking enters: because it focuses attention on the exact solutions people require, it can help save a lot of money right away—immediate cost reductions are recognized as part of the ROI of design thinking.

Did you know that of the top twelve reasons why projects fail, three are related to user-centered design failure?

  • Badly defined requirements
  • Poor communications among customers and developers
  • Stakeholder politics

Design Thinking needs to be a part of all processes and not just something you do on select projects.

Start by looking through the customer lens. Developing that foundation and creating that cultural change across all projects and initiatives is what it takes.

Reasons to Invest in Design Thinking

Whether you’re a CEO, a marketer, or a designer, here are the 3 main reasons why your company should invest in design thinking:

  • Design Thinking helps you improve your UX and save you money
  • A little UX research upfront can save you hundreds of engineering hours and thousands of dollars
  • Lowers customer support costs
  • Revenue Increase
  • Increases conversion rates
  • Improves customer retention and loyalty
  • Drives competitive advantage and affects the bottom line. Just look at Dyson, Uber, Mint, Apple, IBM, and Intuit.
  • Anticipates new issues. Design thinkers can identify potential answers to challenges that aren't immediately apparent, even to the user, by using an observational approach to consumers and products.
  • Aims to "wicked problems." A wicked problem is a problem that isn't precisely characterized because team members lack all of the necessary information to address it. Design thinking identifies the gaps in an issue and suggests potential solutions.

When comparing a user experience project to another investment with identical business ambitions, the value of user experience as a result of design thinking is pretty significant.

Before Apple's iPhone, there were a ton of smartphones on the market. Before Uber, there were taxis, and before Facebook, there were social networks.

But there is one thing that all of these businesses have in common: a relentless emphasis on the client and delivering the greatest possible user experience, which is deeply ingrained in their design thinking methodology.

Design thinking can feel chaotic to some businesses, especially those that are used to traditional, process-focused methods. But it can be incredibly freeing and offer businesses creative innovations that were not previously thought of or even possible.

Want to know about how Design Thinking can help your business grow?

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