The Explainer: What Is Design Thinking?

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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.

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