Do you need Design Thinking?

Let’s assume yes, yet you know me, I like to prove it.

What is Design Thinking?

Well it’s not graphic design and it’s not content creation. In both cases that’s an antiquated notion, that these are pure disciplines, in a commercial sense. They are not separate functions delivered by separate non-integrated entities. We’re not talking about the art or beauty of things, we’re talking about the totality of design. How design is applied in a commercial enterprise.

Let’s define it.

Design Thinking is a problem-solving methodology. It’s focussed on understanding the user, observer, purchaser or client. It’s about innovative solutions centred on people. There are five key stages that can be iterative, incremental and non-linear.

1. Emphasis: Understanding the audience/users through their needs. Gaining real data through research, observation, and interviews.
2. Define: Defining the outcomes from insights gathered.
3. Ideate: Brainstorm and generate a range of creative solutions with complete freedom.
4. Prototype: Build simple, cost-effective versions of solutions to explore ideas and stimulate feedback.
5. Test: Test prototypes, gather feedback, and refine the solution based on real-world use.

Design Thinking often involves cycling back through stages to refine ideas. This is iteration. It keeps the user/customer in mind. This is user experience, user interface design, product development, and business innovation.

We are talking about Human-Centred Design here. There are other types of systems that do not have humans involved. These need different approaches.

Design Thinking is a problem-solving methodology. It’s focussed on understanding the user, observer, purchaser or client.

What it’s not

• Linear: It’s not step by step. There is repetition and refinement. Many sources supply feedback. Based on factual and real world data.
• Designers: Design Thinking is a critical organisation skill. It’s not about the creative, although that may be part of it. Participants might be from different disciplines in an organisation.
• Aesthetics: Design Thinking is about creating real solutions. Making things look visually appealing may only be one facet if involved at all. The keys are functionality, usability, and effectiveness.
• Rigid: There’s no single, fixed template to follow. The process is adaptable and flexible. It can vary depending on the context, solution, and team. It may incorporate Agile, Atomic Design and Product Requirements. It may involve creative, visuals, UX/CX and content.
• Once Only: It’s not about arriving at a single solution and stopping there. Design Thinking encourages continuous feedback, testing, and iteration. Refine ideas and respond to evolving needs.
• No Structure: The structure of Design Thinking is the needs of users. Grounded and relevant ideas are key.

Confusion

I see projects that are trying to hire traditional graphic designers, (or copywriters) in these roles. Like they have a hope in hell of delivering on the Design Thinking promise. I get it. That feels cost effective. Spoiler; it won’t be. Or that’s the current value the organisation puts on Design, not Design Thinking.

So what’s the issue?

Well you know; small things; like failing in the market or damaging a brand’s story or reputation.

• Alignment: Prioritising graphics without basing them on user need may look good. Though it could be functionally irrelevant. A beautiful unusable product.
• Wasting resources and time: Costly redesigns could be caused by missing user research, empathy or iterative testing.
• Lack of Design Thinking: Graphic design and content creation are only parts of the solution. Design Thinking brings a problem-solving framework that helps identify core functions. Without it, the end product is unlikely to innovate, sell or function properly.
• Satisfaction and Engagement: Without feedback the product might not match user preferences.
• Pivoting: Design Thinking encourages continuous improvement based on user testing and feedback. This allows teams to adapt to evolving needs. Without this a team may stick to a rigid design and ignore critical improvements. They may miss opportunities.
• Brand Damage: A badly received product can harm the company’s reputation. Users may feel their needs weren’t considered.

Design Thinking is profitable

Here is some research and articles showing the impact of Design Thinking.

• McKinsey and Company: “The Business Value of Design”: This report shows that companies excelling in design outperform their peers by up to 56%. Emphasis is on shareholder returns. https://www.mckinsey.com/capabilities/mckinsey-design/our-insights/the-business-value-of-design
• 2015 dmi:Design Value Index Results and Commentary: “The Design Management Institute’s 2015 Design Value Index (DVI), based on a portfolio of 16 publicly traded stocks from companies considered to be ‘design-centric’ contingent on a set of criteria that reflects best practices in design management, shows a 211% return over the S&P 500.” https://www.dmi.org/page/2015DVIandOTW
• IBM Design Thinking Impact Report (2018): This report focuses on the economic impact of Human-Centred Design via design thinking practices. It shows ROI improvements through user-centred approaches. https://www.ibm.com/design/thinking/static/Enterprise-Design-Thinking-Report-8ab1e9e1622899654844a5fe1d760ed5.pdf (PDF) https://www.ibm.com/design/thinking/page/framework (link)
• UK Design Council “Design Economy 2018”: This report highlights how design, including human-centred approaches, contributed £85.2 billion to the UK economy in 2016. https://www.designcouncil.org.uk/fileadmin/uploads/dc/Documents/Design_Economy_2018_exec_summary.pdf (PDF)
• InVision “The New Design Frontier” (2019): This report explores how companies with more mature design practices, including human-centred design, achieve better financial and operational results. https://s3.amazonaws.com/designco-web-assets/uploads/2019/01/The-New-Design-Frontier-from-InVision-012919.pdf (PDF)
• Pepsi: Former PepsiCo CEO Indra Nooyi told Harvard Business Review that “design had a voice in almost every crucial decision the company made”. During her 12 year tenure, sales increased 80 percent.
• Schmiedgen, J., Rhinow, H., Köppen, E., & Meinel, C. (2015). Parts Without a Whole? – The Current State of Design Thinking Practice in Organizations (Study Report No. 97) (p. 144). Potsdam: Hasso-Plattner-Institut für Softwaresystemtechnik an der Universität Potsdam. https://thisisdesignthinking.net/why-this-site/the-study/ Design doesn’t just improve products, it improves corporate culture. 71 percent of companies say design thinking has improved the working culture at their organisations and 69 percent say it makes their innovation processes more efficient.

Why is Design Thinking crucial?

• User-Centred Solutions: Ensures products meet real user needs.
• Enhanced Innovation: Encourages creative, out-of-the-box ideas.
• Cost Savings: Catches issues early, preventing expensive fixes.
• Faster Iteration: Enables quick refinement through prototyping.
• Cross-Functional Collaboration: Leverages diverse perspectives for richer solutions.
• Improved Market Fit: Keeps solutions aligned with market demands.
• Increased User Engagement: Builds loyalty by focusing on user experience.
• Better Risk Management: Validates concepts early, reducing post-launch risks.

In Australia

Here are some examples of Design Thinking and Human-Centred Design in Australia.

• Australia Post (Parcel Delivery System): Australia Post utilised HCD to improve customer experience for consumers and businesses. https://www.ie.com.au/case-studies/a-human-centred-point-of-sale
• Victorian Government: Human-centred design playbook: The Victorian Government has created a Human-Centred Design Playbook, guiding public service design projects with a focus on empathy, user research, and collaboration with end-users. It’s an official government document that outlines HCD principles to improve citizen-focused services. https://www.vic.gov.au/human-centred-design-playbook
• Transport NSW: “Our proven framework of prototyping, testing and learning amplifies existing Transport team capabilities and encourages breakthrough thinking to deliver smart, customer-focused solutions.” https://www.transport.nsw.gov.au/data-and-research/digital-accelerator/transport-digital-accelerator/how-we-work
• NSW Education: used HCD to ensure content is useful to parents and carers. https://education.nsw.gov.au/about-us/technology/global-experience-language/human-centred-design

Design Thinking

Design Thinking is worth developing in an organisation. It’s not graphic design, creative or content. It can involve those things, yet it is broader and crucial.

There are practitioners with those backgrounds. They have evolved through CX/UX, business analysis, and management roles.

What’s your organisational, service or product outcome?

That’s the direction to head in with Design Thinking.