KMBN106 Design Thinking

Unit 1 Innovation & Creativity Allowing employees to be more creative can inspire them to come up with
more interesting ideas as well as improve their overall output. Many of the
world’s leading companies have started to adopt unorthodox methods of
Meaning of Innovation and Creativity encouraging maximum creativity from their employees, such as sleeping
Creativity is about creation. It’s about harnessing the power of the mind to pods and flexible working areas.
conceive new ideas, products plans, thought experiments, tastes,
Types of Creativity
sensations or art. Creativity can be a form of expression or a way of solving
problems. Anyone can be creative, and in any context. There’s creativity in Deliberate and Cognitive creativity
the marketing department, just as there can be creativity on a football
pitch. People who possess deliberate and cognitive characteristics are
purposeful. They have a great amount of knowledge about a particular
Creativity has traditionally been left to those ‘wacky’ companies that are subject and combine their skills and capabilities to prepare a course of
deliberately trying to do things differently, with the majority of businesses action to achieve something. This type of creativity built when people
tending to favour a traditional and monotone approach to running their work for a very long time in a particular area.
organizations. However, the changing business landscape means that
companies are beginning to consider a more creative approach to working. People who fall under this type of category of creativity are usually
proficient at research, problem- solving, investigation and
Need of creativity experimentation. This type of creativity is located in the brain’s prefrontal
cortex, which is at the front part of the brain. These types of creative
Creativity can help a company manage tasks, improve staff performance
people spend a great deal of time every single day testing to develop new
and create quality products. It is also vital in fostering a likeable and
solutions.
aspirational company image. With consumers now able to get a snapshot
of what company life is like, businesses need to be able to depict their Thomas Alva Edison is one prominent example of this type of creative
inner culture in a way that makes it seem appealing. people. He ran experiment after experiment before inventing electricity,
the light bulb, and telecommunication. Hence, deliberate and cognitive
As new technologies continue to develop and become available, companies
creativity requires a great deal of time, dedication and abundance of
have to be flexible and able to keep up to date. Creativity allows them to
knowledge about a particular subject.
easily identify new ways in which technology can be applied to help their
businesses. Likewise, with social media and other interactive forms of Deliberate and Emotional Creativity
marketing now available, it’s never been more important for companies to
be able to be creative. People who are categorized as deliberate and emotional let their work
influenced by their state of emotions. These types of creative people are
very emotional and sensitive in nature. These individuals prefer relatively

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quiet and personal time to reflect and they usually have a habit of diary cognitive creativity takes place when the conscious mind stops working
writing. However, they are equally logical and rational in decision making. and go to relax and unconscious mind gets a chance to work.

Their creativity is always a balanced product of deliberate emotional Mostly, this type of creative person stops conscious thinking when they
thinking and logical actions. This type of creativity is found in the need to do “out of the box” thinking. By indulging in different and
amygdala and cingulate cortex parts of the human brain. Amygdala is unrelated activities, the unconscious mind gets a chance to connect
responsible for human emotions whereas cingulate cortex helps in information in new ways which provide solutions to the problems.
learning and information processing. This type of creativity happens to Therefore, to let this type of creativity happen one should take a break
people at random moments. Those moments are usually referred to as “a- from the problem and get away to let conscious mind overtake.
ha!” moments when someone suddenly thinks of a solution to some
problem or think of some innovative idea. Spontaneous and Emotional Creativity

For example, there are situations when you feel low and emotional which Spontaneous and emotional creativity takes place in the “amygdala” part
distracts you from your work. In those kinds of situations, you should take of the human brain. Amygdala is responsible for all emotional type of
5 minutes and point out the things which are making you sad and keep thinking in the human brain. Spontaneous ideas and creativity happen
them aside and focus on the work in hand. It will help you to get when conscious and Prefrontal brain is resting. This type of creativity is
improvised results and you will get work done easily. One should seek mostly found in a great artist such as musicians, painters, and writers etc.
“quiet time” for deliberate and emotional creativity to happen to them. This type of creativity is also related to “epiphanies”.

Spontaneous and Cognitive creativity Epiphany is a sudden realization of something. Spontaneous and
emotional creativity is responsible for a scientific breakthrough, religious
There are times when you spend a long time to crack a problem but can’t and also philosophical discoveries. This allows the enlightened person to
think of any solution. For example, when you want to make a schedule for look at a problem or situation with a different and deeper viewpoint.
a month to get a job done, but you can’t seem to think of any possible way
and when you are watching television and having your relaxed time and Those moments are defined as rare moments when great discoveries take
suddenly you think of a solution and everything falls in place. The same place. There is no need to have specific knowledge for “spontaneous and
case happened with the great scientist Isaac Newton. He got the idea about emotional” creativity to happen but there should be a skill such as writing,
the law of gravity when an apple hit his head while he was sitting under a musical or artistic. This type of creativity can’t be obtained by working on
tree and relaxing. it.

This is the “Eureka!” moments for Newton and an excellent example of a Innovation
spontaneous and cognitive person. This type of creativity happens when Innovation, on the other hand, needs stability and establishment. It’s about
one has the knowledge to get a particular job done, but he requires changing a common or long-standing process by improving it. It’s only by
inspiration and a hint to walk towards the right path. This type of having a status quo in existence, that you can develop it in order to
creativity usually happens at the most inconvenient time, such as, when innovate. So, while creativity and innovation share strong links, the
you are in bed with your partner or having a shower. Spontaneous and processes are entirely different.
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Innovation is about taking newly created ideas and developing them into Most importantly, you’ll always be playing catch-up. However quickly you
something useful and practical. In many ways, innovation is the process of get your version to market, your rivals will always have the lead on you
converting theory into action. and they’ll already be planning their next move. This means customers will
go to your rivals first, who will maintain a reputation for leading the pack.
The most common type of innovation is evolutionary, which means finding Your business won’t stand out because there’ll always be someone else
ways of making incremental improvements to your products and services. who’s already met the needs and desires of your customers. You’ll harm
This type of innovation carries fewer risks, as it’s generally easier to your own brand, and could also risk infringing on your competitor’s
establish demand for these improvements and to calculate the likely intellectual property rights.
return on investment. However, it still requires a strategic, targeted
approach – there’s little point in improving a product in a way that However, innovation doesn’t have to be focused on changing a product or
customers don’t value. service. If you can find an innovative new process that enables you to
create a product more efficiently without compromising on quality, you’ll
be able to stand out from your rivals by undercutting their prices.
The best way to identify opportunities for evolutionary innovation is to Similarly, your innovation could come in the form of a new distribution
talk to existing customers and find out what they value most about your system, enabling you to stand out by offering the fastest delivery to
products and services, and what aspects they’d like to see improved. If customers.
longer battery life is their number one priority, then it probably should be Creativity and innovation in the workplace
your number one target for innovation. However, if they also value the
product’s easy portability, it’s probably not a good idea for your new
version to be much larger or heavier.
Exploiting both creativity and innovation in business can boost
Need of innovation performance and the bottom line. But first, you need to make space for
both to happen.
Innovation is important because it’s the only way that you can
differentiate your products and services from those of your competitors. Encouraging creativity can involve lots of different strategies, from
For customers and clients to choose your business, your offer needs to be enabling employees to work outside the office to letting people come into
distinctive and valuable, and the only way to achieve this is through and leave the office when they feel ready to, not when they’re expected to.
innovation. The office itself needs to be creativity-friendly and there are ways you can
adapt the working environment to support employees’ talents.
It can be tempting to let your rivals do all the heavy lifting of creativity and
innovation, with all the investment, experimentation and risks that this It’s important to let staff feel free when exploring new ideas – whether it’s
entails. Then, when they come up with a dazzling new product or tweaking your existing product or developing a whole new concept.
improvement, you can simply copy what they’ve done at a fraction of the Involve the team, share accountability, reward good work and be ready to
effort. However, there are several pitfalls to this approach. respond to market feedback. Remember, your ideas and innovation, no
matter how amazing, still need to fulfil a need among customers.

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There’s no guaranteed source of great ideas, but they do tend to be Creativity is the characteristic of a person to generate new ideas, alternatives,
generated by the most engaged, positive employees. They don’t come from solutions, and possibilities in a unique and different way.
staff who are bored or stressed. Great ideas sometimes come from
Creativity is the ability to conceive something unpredictable, original and unique.
brainstorming sessions, but trying to force out ideas can be It must be expressive, exciting and imaginative. It is the mirror of how beautifully
counterproductive. In reality, great ideas are equally likely to occur when a a person can think in any given circumstance.
particular problem occurs that requires a solution, or even when an
employee is on their way home, thinking about their day. 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
The key is to use your business’s culture and processes to capture these 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
ideas when they happen, wherever they come from. Staff suggestion boxes something which was previously hidden.
and allocated creative time can work well, but sometimes all that’s
required is a clear message from the boss that all ideas are welcome. Innovation

Difference between 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:

and creativity  New technology.

E7 HOURS 1 COMMENT
 New product line or segment.
There’s a lot of confusion surrounding creativity and innovation. “Creative types,”  A new method of production.
in particular, claim that creativity and innovation can’t be measured. Performance,  An improvement in the existing product.
however, demands measurement so you can identify what success looks like. In a
world that changes every second, it’s must be imperative that companies figure Creativity and Innovation
out the difference between creativity and innovation.
Innovation Creativity
Creativity and innovation are not one and the same, but they do complement one
another. In fact, one can’t function without the other.
Innovation is the exercise to
The primary difference between creativity and innovation is that the former Creativity is the capacity to
create something new which
refers to conceiving a new idea while the latter involves converting that idea into Definition make or think up something
already has a large value to
a marketable commodity. uncommon or original.
others.

Creativity is the act of conceiving something new, whether a variation on an

existing theme or something wholly original. Innovation is the act of putting that Innovation acts by putting those Creativity acts by delivering
Their actions
concept into practice. It’s the difference between suggesting the idea that an new ideas in reality. unique ideas.
aircraft could fly through space and actually building a rocket that astronauts can
use to get to the moon.
Measurable Easy to measure. Hard to measure.
Creativity

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 Creativity doesn’t carry among ideas. Creativity provides new ideas for quality improvement in
Innovation can cause liability as
Liability
the idea becomes reality.
liability as it is just a thought organizations and innovation puts these ideas into action.
or idea.
Depending on the nature of your business, you might already have a
strong idea of how creativity and innovation benefit your company. If
Every innovation is a result of Not every creativity conforms
Expression
creativity. to innovation. you’re anything like TruScribe, the line is direct: our creative output
benefits our clients, which benefits us. However, maybe your company’s
product isn’t as directly tied to creativity as ours. You’ve likely heard that
Process Productive Imaginative increasing creative and innovative work can give your business a serious
boost. Let’s explore how creativity and innovation can enhance business
Quantifiable Yes No growth and development, no matter what industry you’re in.

Creativity and innovation lead to higher overall success in organizations,

Related to Introducing something new Thinking something new even more so than raw intelligence. Traditional companies and
educational institutions tend to prize intelligence as the most important
factor in problem solving. However, this preference might have been born
Money
Yes No out of ease rather than best practices.
Consumption
After all, it is “easier to measure and manage” intelligence over creativity,
Risk Yes No which can be harder to identify. When creative thinking is prioritized,
positive feedback is received, and encouragement is given to solve
problems creatively, the company will see improvement.

Creativity and innovation within a well-run companies have always been

Role of innovation and creativity Industry and organizations recognized as a sure path to success. Stimulating creativity and exploring
E completely new and unknown before territories lead as result to
increasing the productivity of the organisation. Encouraging the
7 HOURS employees to think outside of the box and giving them time and resources
to explore new areas for innovative ideas is the key to cost-effective
1 COMMENT business solutions.
Innovation is the process of creating and implementing a new idea. It is the Creativity improves the process of solving problems. It doesn’t matter if
process of taking useful ideas and converting them into useful products; we’re talking about developing a new strategy or an innovative way to stay
services or processes or methods of operation. These useful ideas are the ahead of the competition. Creative problem solving gives that competitive
result of creativity, which is the prerequisite for innovation. Creativity in edge that any business is striving to achieve.
the ability to combine ideas in a unique way or to make useful association
Strategic Importance of Innovation:
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For both established organisations as well as new organisations, followed. Further, implementation of process innovations necessitated
innovation and change become important in a dynamic, changing organisational change. “Doing something new means doing something
environment. When a company fails to innovate and change as needed, its differently”. Thus, innovation and organisational change go hand in hand.
customers, employees and the community at large can all suffer. The
ability to manage innovation and change is an essential part of a manager’s Create a Creative Workplace
competencies. Creative thinking can also lead to innovation that will grow your business
Creative ideas and innovative approaches can come from almost through increased productivity. When you “focus on what things you can
anywhere- from your partners, customers, target groups, employees. They streamline and what things you need to cut out” while keeping the systems
can bring you fresh perspectives and ideas, so show them that you’re that perform well, you’ll build a simpler, more efficient workplace.
listening and open to their feedback. That’s why it is important an open Creative thinking lets you come up with ideas that will excite and motivate
exchange of ideas to be supported and encouraged by the company. your team.

Types of Innovation: Reach New Heights

(i) Technical, Creativity and innovation can be the pathways for your business to reach
new heights of product value, process improvement, productivity,
(ii) Process and marketing success, and internal harmony. The creative process can lead to
novel ideas and concepts. This is especially true when the divergent
(iii) Administrative. thinking it requires is complemented by conventional convergent thought,
Technical innovation involves creation of new goods and services. Many When a diverse, cross-functional team looks to innovate through
technical innovations occur through research and development efforts implementation of creative ideas, they’ll work more effectively, flexibly,
intended to satisfy demanding customers who are always seeking, new, and with a greater sense of unity. From product designs that are miles
better, faster and/or cheaper products. ahead of the competition to minor office changes, any new improvement
Process innovation involves creating a new way of producing, selling or to your business is an innovation. This process doesn’t happen just once,
distributing an existing good or service. either.

Administrative innovation occurs when creation of a new organisation

design better supports the creation, production and delivery of goods and Role of innovation and
services.
creativity Industry and
The various types of innovation often go hand in hand. For example, the
rapid development of business-to-business e-commerce represents organizations
process innovation. But this new process requires many technical
innovations in computer hardware and software. Also, as firms began to Innovation is the process of creating and implementing a new idea.
use business to business e-commerce, administrative innovation soon It is the process of taking useful ideas and converting them into
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useful products; services or processes or methods of operation. them time and resources to explore new areas for innovative ideas
These useful ideas are the result of creativity, which is the is the key to cost-effective business solutions.
prerequisite for innovation. Creativity in the ability to combine ideas
in a unique way or to make useful association among ideas. Creativity improves the process of solving problems. It doesn’t
Creativity provides new ideas for quality improvement in matter if we’re talking about developing a new strategy or an
organizations and innovation puts these ideas into action. innovative way to stay ahead of the competition. Creative problem
solving gives that competitive edge that any business is striving to
Depending on the nature of your business, you might already have a achieve.
strong idea of how creativity and innovation benefit your company.
If you’re anything like TruScribe, the line is direct: our creative Strategic Importance of Innovation:
output benefits our clients, which benefits us. However, maybe your
company’s product isn’t as directly tied to creativity as ours. You’ve For both established organisations as well as new organisations,
likely heard that increasing creative and innovative work can give innovation and change become important in a dynamic, changing
your business a serious boost.  Let’s explore how creativity and environment. When a company fails to innovate and change as
innovation can enhance business growth and development, no needed, its customers, employees and the community at large can all
matter what industry you’re in. suffer. The ability to manage innovation and change is an essential
part of a manager’s competencies.
Creativity and innovation lead to higher overall success in
organizations, even more so than raw intelligence. Traditional Creative ideas and innovative approaches can come from almost
companies and educational institutions tend to prize intelligence as anywhere- from your partners, customers, target groups,
the most important factor in problem solving. However, this employees. They can bring you fresh perspectives and ideas, so
preference might have been born out of ease rather than best show them that you’re listening and open to their feedback. That’s
practices.  why it is important an open exchange of ideas to be supported and
encouraged by the company.
After all, it is “easier to measure and manage” intelligence over
creativity, which can be harder to identify.  When creative thinking Types of Innovation:
is prioritized, positive feedback is received, and encouragement is
given to solve problems creatively, the company will see (i) Technical,
improvement.
(ii) Process and
Creativity and innovation within a well-run companies have always
been recognized as a sure path to success. Stimulating creativity and (iii) Administrative.
exploring completely new and unknown before territories lead as
result to increasing the productivity of the organisation. Technical innovation involves creation of new goods and services.
Encouraging the employees to think outside of the box and giving Many technical innovations occur through research and

7
development efforts intended to satisfy demanding customers who when the divergent thinking it requires is complemented by
are always seeking, new, better, faster and/or cheaper products. conventional convergent thought, 

Process innovation involves creating a new way of producing, When a diverse, cross-functional team looks to innovate through
selling or distributing an existing good or service. implementation of creative ideas, they’ll work more effectively,
flexibly, and with a greater sense of unity.  From product designs
Administrative innovation occurs when creation of a new that are miles ahead of the competition to minor office changes, any
organisation design better supports the creation, production and new improvement to your business is an innovation. This process
delivery of goods and services. doesn’t happen just once, either.

The various types of innovation often go hand in hand. For example,

the rapid development of business-to-business e-commerce Dynamics of Creative Thinking
represents process innovation. But this new process requires many
technical innovations in computer hardware and software. Also, as Creative thinking means thinking outside the box. Often, creativity involves lateral
thinking, which is the ability to perceive patterns that are not obvious.
firms began to use business to business e-commerce, administrative
innovation soon followed. Further, implementation of process Creative thinking might mean devising new ways to carry out tasks, solve
innovations necessitated organisational change. “Doing something problems, and meet challenges. It means bringing a fresh, and sometimes
new means doing something differently”. Thus, innovation and unorthodox, perspective to your work. This way of thinking can help departments
organisational change go hand in hand. and organizations be more productive.

Create a Creative Workplace Evolution, synthesis, revolution, reapplication, changing direction. Many classic
creative thinking techniques make use of one or more of these methods. Note in
this section that the goal is to produce a good quantity and a good quality of new
Creative thinking can also lead to innovation that will grow your ideas and solutions so that the best ones may be chosen. Exactly how those ideas
business through increased productivity. When you “focus on what are generated is less important than the ideas themselves. Remember, the goal is
things you can streamline and what things you need to cut out” more important than the path.
while keeping the systems that perform well, you’ll build a simpler,
more efficient workplace.  Creative thinking lets you come up with Creativity = surprise + originality + beauty + utility
ideas that will excite and motivate your team.
Alex Osborn, advertising writer of the fifties and sixties, has contributed many
very powerful creative thinking techniques. Brainstorming is probably the best
Reach New Heights known and certainly one of the most powerful. For a fuller treatment, see his
book, Applied Imagination.
Creativity and innovation can be the pathways for your business to
reach new heights of product value, process improvement, Brainstorming is an idea generating technique. Its main goals are:
productivity, marketing success, and internal harmony.  The creative
process can lead to novel ideas and concepts. This is especially true (1) to break us out of our habit-bound thinking:

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 (2) to produce a set of ideas from which we can choose. (No one wants to have a Creative thinking is expressed in several ways. Here are some of the types of
choice of only one product when buying laundry detergent or cars, so why have a creative thinking you might see in the workplace.
choice of only one solution when working on a problem?)
Analysis
Convergent thinking is measured by tests like remote associations test or insight
problems. These problems are solved when you apply one of the methods below: Before thinking creatively about something, you first have to be able to
understand it. This requires the ability to examine things carefully to know what
1. Make a unique association between parts of the problem. This looks again similar to they mean. Whether you are looking at a text, a data set, a lesson plan, or an
flexibility or how fluid is your categorisation schema enabling you to think out of the equation, you need to be able to analyze it first.
box and not be limited by typical categories or associations.
2. Take a novel approach (and not the typical approach) to problem-solving. To me, this Open-Mindedness
again looks similar to originality.
3. See the problem from a different perspective. To me, this looks like how quickly you
can adopt multiple perspectives the speed with which you can take alternate To think creatively, set aside any assumptions or biases you may have, and look at
perspectives and is similar to fluency. things in a completely new way. By coming to a problem with an open mind, you
allow yourself the chance to think creatively.
Formal Creative Thinking
Problem-Solving
It is possible to think creatively all the time. There are some people who simply
fizz with new ideas and seem to see everything slightly differently from those Employers want creative employees who will help them to solve work-related
around them. issues. When faced with a problem, consider ways that you can solve it before
asking for help. If you need the input of a manager, suggest solutions rather than
just presenting problems.
These are the people who are always asking ‘Why?’, and ‘Why not?’.

Organization
They are natural problem-solvers and innovators.

This might seem counterintuitive: Aren’t creative people known for being
However, for most people, creative thinking requires more effort. They prefer to
somewhat disorganized? Actually, organization is an essential part of creativity.
save their creative thinking for when it is really necessary.
While you might need to get a bit messy when trying out a new idea, you need to
organize your ideas so others will understand and follow through with your
Typical examples of times when you might take the time to use creative thinking vision.
techniques include:
Communication
 When you are facing a major problem or issue, and you cannot see an obvious way
forward.
People will only appreciate your creative idea or solution if you communicate it
 At times of change, when it is hard to see what might lie ahead, and you want to think
effectively. You need to have strong written and oral communication skills.
about possible scenarios.
 When there is a lot of disagreement about what needs to happen next, and no
compromise seems possible without a lot of effort. Also need to be able to understand a situation fully before thinking creatively
 When you need something new, that hasn’t been tried before, but you are not sure about it. That means you also need to be a good listener. You may come up with a
what. unique solution by asking the right questions and listening to the answers.

Dynamics of Creative Thinking Process of Design Thinking

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E Define: State Your Users’ Needs and Problems

7 HOURS It’s time to accumulate the information gathered during the Empathize
stage. You then analyze your observations and synthesize them to define
LEAVE A COMMENT the core problems you and your team have identified. These definitions
Design thinking is a popular methodology that inspires a human-centered are called problem statements. You can create personas to help keep your
approach to design. It is used by many design teams at some of the world’s efforts human-centered before proceeding to ideation.
most successful tech companies. Design thinking is a non-linear, iterative Ideation
process that teams use to understand users, challenge assumptions,
redefine problems and create innovative solutions to prototype and test. The ideation stage leans heavily on the ability to invent. Designers who
The design thinking process is broken up into five specific design thinking have captured the human experience fully during the empathy stage set
stages: empathy, definition, ideation, prototyping, and testing. out to ideate around creative solutions for solving the defined problem.
Thinking outside the box is the name of the game, as, during this stage,
Empathy designers often don’t worry about budget or scalability.
At this stage in the design thinking methodology, designers sit down with At this point, designers should have a workable understanding of their
real people and absorb their points of view, world, and introspections user base, so this is an excellent time to get creative and not dwell too
without bias. much on limitations. An example of a popular technique in the ideation
Without attempting to master empathy, designers face an uphill climb phase is an exercise called “worst possible idea.” By inverting the search
when solving human-centric problems. When designing a product or for a solution into a brainstorm of what would not work, this process sets
service, empathy in design thinking builds a crucial and necessary bridge the design team up for success by helping build up trust and confidence.
between the target user or audience and the product, project, or service Since no idea can technically be “wrong” in this process, designers build up
being designed. good practices of sharing their thoughts with confidence.

Some steps that are often taken during this stage of the design thinking Prototype: Start to Create Solutions
methodology are: This is an experimental phase. The aim is to identify the best possible
Consulting subject matter experts about their insights solution for each problem found. Your team should produce some
inexpensive, scaled-down versions of the product (or specific features
Engaging more personally with an issue to gain a better understanding of a found within the product) to investigate the ideas you’ve generated. This
user’s POV could involve simply paper prototyping.

Having in-depth conversations about the topic with other designers Test

Immersing oneself in a physical environment The testing stage of the design thinking process requires real users to
generate real data. However, the final stage of design thinking is not

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necessarily the last thing designers will do. Remember, design thinking is Some steps that are often taken during this stage of the design
built upon a foundation of iteration, so many designers roll out multiple thinking methodology are:
prototypes to test different change factors within their idea. Without a
comprehensive testing stage, user experiences and solutions have  Consulting subject matter experts about their insights
difficulty scaling.  Engaging more personally with an issue to gain a better
understanding of a user’s POV
Testing is often an iterative process. Designers can expect to go through a  Having in-depth conversations about the topic with other
series of changes, edits, and refinements during the testing stage. For this designers
reason, it’s not uncommon for the testing phase to “restart” some other  Immersing oneself in a physical environment
design thinking processes such as ideation or testing, as newfound ideas
might spark additional potential solutions that require an entirely fresh Define: State Your Users’ Needs and Problems
approach.
It’s time to accumulate the information gathered during the
Empathize stage. You then analyze your observations and
Process of Design Thinking synthesize them to define the core problems you and your team
have identified. These definitions are called problem statements.
Design thinking is a popular methodology that inspires a human- You can create personas to help keep your efforts human-centered
centered approach to design. It is used by many design teams at before proceeding to ideation.
some of the world’s most successful tech companies. Design
thinking is a non-linear, iterative process that teams use to Ideation
understand users, challenge assumptions, redefine problems and
create innovative solutions to prototype and test. The design The ideation stage leans heavily on the ability to invent. Designers
thinking process is broken up into five specific design thinking who have captured the human experience fully during the empathy
stages: empathy, definition, ideation, prototyping, and testing. stage set out to ideate around creative solutions for solving the
defined problem. Thinking outside the box is the name of the game,
Empathy as, during this stage, designers often don’t worry about budget or
scalability.
At this stage in the design thinking methodology, designers sit down
with real people and absorb their points of view, world, and At this point, designers should have a workable understanding of
introspections without bias. their user base, so this is an excellent time to get creative and not
dwell too much on limitations. An example of a popular technique in
Without attempting to master empathy, designers face an uphill the ideation phase is an exercise called “worst possible idea.” By
climb when solving human-centric problems. When designing a inverting the search for a solution into a brainstorm of what would
product or service, empathy in design thinking builds a crucial and not work, this process sets the design team up for success by helping
necessary bridge between the target user or audience and the build up trust and confidence. Since no idea can technically be
product, project, or service being designed.
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“wrong” in this process, designers build up good practices of sharing Strategy: A clearly defined innovation strategy which guides decisions, and an
their thoughts with confidence. explicit innovation ambition from the Board and Top Management.

People: People are innovative, have a strong capability to innovate, and have

Prototype: Start to Create Solutions innovation tools and innovation metrics.

This is an experimental phase. The aim is to identify the best Process: Deep market and customer insights, constantly uncovering and
possible solution for each problem found. Your team should produce understanding today’s and tomorrow’s customer needs, collaborate well with
some inexpensive, scaled-down versions of the product (or specific partners and leading-edge customers.
features found within the product) to investigate the ideas you’ve
generated. This could involve simply paper prototyping. Culture: Encouraged to think big, dream big and take calculated strategic risks.
Great at making innovation investments, funding is easily available for new
innovative projects, and have the time and freedom to innovate.
Test
Innovation as a Strategy
he testing stage of the design thinking process requires real users to
generate real data. However, the final stage of design thinking is not Innovation means different things to different people and is industry and sector
necessarily the last thing designers will do. Remember, design context specific. For example, an innovation in the health sector will differ from an
thinking is built upon a foundation of iteration, so many designers innovation that relates to the use of solar technology. In the former, people’s
health is at risk if the innovation’s downstream impacts are poorly understood,
roll out multiple prototypes to test different change factors within while in the latter, failure would be an inconvenience, or even seen as a major
their idea. Without a comprehensive testing stage, user experiences political issue in the rapidly evolving industry.
and solutions have difficulty scaling.
People
Testing is often an iterative process. Designers can expect to go
through a series of changes, edits, and refinements during the Innovation requires individuals who have a mindset which is comfortable dealing
with uncertainty and ambiguity. These individuals love to explore, learn, create
testing stage. For this reason, it’s not uncommon for the testing
and test opportunities. They view roadblocks as learning opportunities to reshape
phase to “restart” some other design thinking processes such as or pivot their innovation.
ideation or testing, as newfound ideas might spark additional
potential solutions that require an entirely fresh approach. Highly-innovative organisations are encouraging their people to innovation,
without implementing disruptive change programs. The practical starting point to
improve an organisation’s chances of stimulating and sustaining innovation is
Implementing the process in amongst the organisation’s people.

driving innovation The leadership team is ultimately responsible for driving innovation and manage
it formally as part of the organisation’s strategy. Holding the leadership team
accountable for encouraging innovation makes a big difference through formal
Innovation Capabilities innovation targets or metrics. In this way, innovation can be not only be
encouraged but can also be managed, tracked and measured as a core element in
We have identified four key capabilities that truly innovative organisations do an organisation’s strategic initiatives.
well.
12
 The four Innovation Phases are: You need to have an idea screening processes in place so your employees know
that their ideas are being considered. This can be done in different ways.
 Opportunity Identification: Ideation, finding great ideas, concept development;
 Opportunity Development: Market research, strategy development, developing, testing At Electrolux, cross-functional team consisting of design, research and
and piloting those ideas into the new product, service, program or business; development, and marketing professionals are involved in the screening process
 Scaling Up: Launching the innovation, testing and validating that systems and which involves ideas being tested with focus groups. Any design failing to achieve
processes are ready to scale; a 70% approval rating from the focus group is eliminated automatically. Whereas
 Growth: Delivering the innovation at scale, driving growth so that the innovation is Google simply collects ideas from employees through emails at a company-wide
sustainable and merges successfully into the organisation. suggestion box, and make the ideas available for all other employees to rate and
comment on.
Culture
4. Employ innovation advocates
The cultural part of innovation is key. Innovation results from iterative
experimental learning. Innovation requires an empowering work environment. To Have a team of advocates on board who support the idea generation and
facilitate increased innovation, one needs to enable and drive innovative innovation process. This group will inspire change throughout the organization by
behaviours by aligning culture, structure, leadership behaviours, measurements asking questions, supporting ideas, and demanding radical changes.
and rewards.
For example, at Boeing, a ‘Phantom Works’ group was created which supported
Implementation Process the idea generation and innovation process by communicating between
departments and sought ideas and technologies that could be applied in newly
1. Create dedicated innovation teams identified areas of the organization.

It is important to remember that there may be employees in your company who 5. Encourage collaborative experimentation
have the best ideas but are not good at communicating them. Therefore, it is
important to have a team to help support and encourage idea sharing. If your Organizations should employ collaborative experimentation to improve the
company does not have the resource for a dedicated team this can be made up of chance of success at innovation. Communicating with stakeholders brings new
members from different areas in your business.  ideas, corrects problems, addresses market needs, and speeds up the innovation
process.
2. Introduce an idea sharing platform
An example of this is when Google made prototypes of products such as Gmail and
You need to bring employees together to share and collaboratively generate ideas, Google Earth available for existing users which helped with developments.
whether in-person or virtually, the right platform is important.
6. Communicate with your employees
For example, Dell IdeaStorm (www.ideastorm.com) provides a platform for
anyone to submit their ideas, and to comment and vote on ideas from other It is important for your employees to ‘buy in’ to your ideas and know as much as
people whereas HP organizes brown bag lunches for their employees to they can about the development of them.
encourage them to discuss their ideas.
For example, HP Labs uses electronic newsletters, informal coffee talks, and peer
3. Create a screening process for all the ideas reviews to convey its latest innovation developments to employees. Having
several venues for sharing information increases the likelihood that every
employee will find a useful source for information about innovation and new

13
 ideas in the organization. This decreases uncertainty and negativity and helps radical or incremental innovation, creative dynamism at the individual
people to be open to new ideas. level has a cumulative effect on the innovation process.
7. Be specific with your communication A pervasive image of innovation casts a scenario centering on the
individual innovator.
Beyond communicating to your employees, you need to let them know how the
innovation affects them and the positive outcomes it could bring. For example, at
Indeed, as authors Cameron Ford and Dennis Gioia, emphasize in their
PNC Bank, online learning courses for employees were tied to specific job skills so
each employee could tailor their online learning to meet their objectives. In this book of collected essays, Creative Action in Organizations (1995) those
way, employees could see how the innovative course offerings applied directly to searching for the fountain of creativity have traditionally focused on the
their situation and could then decide how to invest their time. solitary inventor. A single person-centered view has outlived its
usefulness. Even the most legendary inventor, such as Thomas
Individual Creativity: Roles and Process
Edison, is often a team in disguise (Kelley, 2001). The idea of a lone genius
AKTUE
distracts us from the more useful focus on the higher potential source of
22 MAR 2019 creativity: the organization as a collective of creative people working as a
team. To promote organizational creativity among individuals attempt to
2 COMMENTS remove barriers and obstacles that hinder creativity and denote the lone
inventor as a myth.
Creativity fills one gaping hole: our need to communicate and to create
new ideas and new knowledge. The term knowledge is used here in its Creativity does not just happen. It is a cognitive process that produces new
broadest sense, to encompass what we call knowledge, expertise, skills ideas or transforms old ideas into updated concepts, according to Brussels
and information (Faulkner, 1994: 426). Free University psychology professor Liane Gabora. Scientists such as
Jacques Hadamard and Henri Poincaré studied the creative process and
However, my main concern in this article is narrowly focused, on the
contributed to the Creative Process Model, which explains how an
cognitive features of knowledge generated by creative processes. This
individual can form seemingly random thoughts into an ideal combination
knowledge is intimately related to questions of who has particular
or solution, according to the website The Information Philosopher.
knowledge and how easily it is to make use of this knowledge in an
organization laden with instantaneous demand and response times. Are The Preparation Step of the Creative Process Model
individuals defined by their knowledge rather than how they apply it? Are
we finding a new pace, time, space and depth to how we innovate? During the preparation step of the creative process model, an individual
becomes curious after encountering a problem. Examples of problems can
Individual Creativity include an artistic challenge or an assignment to write a paper. During this
stage, she may perform research, creates goals, organize thoughts and
As old products are replaced by new, creativity is the identifying factor
brainstorm as different ideas formulate. For example, a marketing
changing the way we do things? Creativity drives entrepreneurship at all
professional may prepare for a marketing campaign by conducting market
levels anticipating profits through early product innovation. Whether
research and formulating different advertisement ideas.

14
The Incubation Step of the Creative Process Model Creativity fills one gaping hole: our need to communicate and to
create new ideas and new knowledge. The term knowledge is used
While the individual begins to process her ideas, he begins to synthesize here in its broadest sense, to encompass what we call knowledge,
them using his imagination and begins to construct a creation. Gabora expertise, skills and information (Faulkner, 1994: 426).
states that during this step, the individual does not actively try a find a
solution, but continues to mull over the idea in the back of his head. However, my main concern in this article is narrowly focused, on the
cognitive features of knowledge generated by creative processes.
The Illumination Step of the Creative Process Model This knowledge is intimately related to questions of who has
As ideas begin to mature, the individual has an epiphany regarding how to particular knowledge and how easily it is to make use of this
knowledge in an organization laden with instantaneous demand and
piece her thoughts together in a manner that makes sense. The moment of
response times. Are individuals defined by their knowledge rather
illumination can happen unexpectedly. For example, an individual with the
than how they apply it? Are we finding a new pace, time, space and
task of putting together an office party may have an idea for a theme while
depth to how we innovate?
driving home from work.
Individual Creativity
The Evaluation Step of the Creative Process Model

After a solution reveals itself in an epiphany, the individual then evaluates As old products are replaced by new, creativity is the identifying
whether the insight is worth the pursuit. He may make changes to his factor changing the way we do things? Creativity drives
solution so it is clearer. He may consult with peers or supervisors entrepreneurship at all levels anticipating profits through early
regarding his insights during this step before pursuing it further. If he product innovation. Whether radical or incremental innovation,
works with clients, he may seek a client’s input and approval before creative dynamism at the individual level has a cumulative effect on
moving on to the next step. the innovation process.

The Implementation Step of the Creative Process Model A pervasive image of innovation casts a scenario centering on the
individual innovator.
The implementation of an idea or solution in the creative process model is
when an individual begins the process of transforming her thoughts into a Indeed, as authors Cameron Ford and Dennis Gioia, emphasize in
final product. For example, during this step, a painter may begin outlining their book of collected essays, Creative Action in Organizations
shapes on a canvas with charcoal before applying oil paints to the medium. (1995) those searching for the fountain of creativity have
According to Gabora, an individual may begin this step more than once in traditionally focused on the solitary inventor. A single person-
order to reach the desired outcome. centered view has outlived its usefulness. Even the most legendary
inventor, such as Thomas

Individual Creativity: Roles and Edison, is often a team in disguise (Kelley, 2001). The idea of a lone
genius distracts us from the more useful focus on the higher
Process potential source of creativity: the organization as a collective of

15
creative people working as a team. To promote organizational As ideas begin to mature, the individual has an epiphany regarding
creativity among individuals attempt to remove barriers and how to piece her thoughts together in a manner that makes sense.
obstacles that hinder creativity and denote the lone inventor as a The moment of illumination can happen unexpectedly. For example,
myth. an individual with the task of putting together an office party may
have an idea for a theme while driving home from work.
Creativity does not just happen. It is a cognitive process that
produces new ideas or transforms old ideas into updated concepts, The Evaluation Step of the Creative Process Model
according to Brussels Free University psychology professor Liane
Gabora. Scientists such as Jacques Hadamard and Henri Poincaré After a solution reveals itself in an epiphany, the individual then
studied the creative process and contributed to the Creative Process evaluates whether the insight is worth the pursuit. He may make
Model, which explains how an individual can form seemingly changes to his solution so it is clearer. He may consult with peers or
random thoughts into an ideal combination or solution, according to supervisors regarding his insights during this step before pursuing
the website The Information Philosopher. it further. If he works with clients, he may seek a client’s input and
approval before moving on to the next step.
The Preparation Step of the Creative Process Model
The Implementation Step of the Creative Process Model
During the preparation step of the creative process model, an
individual becomes curious after encountering a problem. Examples The implementation of an idea or solution in the creative process
of problems can include an artistic challenge or an assignment to model is when an individual begins the process of transforming her
write a paper. During this stage, she may perform research, creates thoughts into a final product. For example, during this step, a
goals, organize thoughts and brainstorm as different ideas painter may begin outlining shapes on a canvas with charcoal before
formulate. For example, a marketing professional may prepare for a applying oil paints to the medium. According to Gabora, an
marketing campaign by conducting market research and individual may begin this step more than once in order to reach the
formulating different advertisement ideas. desired outcome.

The Incubation Step of the Creative Process Model

While the individual begins to process her ideas, he begins to

synthesize them using his imagination and begins to construct a
creation. Gabora states that during this step, the individual does not
actively try a find a solution, but continues to mull over the idea in
the back of his head.
UNIT 2
The Illumination Step of the Creative Process Model AN EXERCISE IN DESIGN THINKING & IMPLEMENTING

DESIGN THINKING THROUGH A WORKSHOP

16
 NA Having in-depth conversations about the topic with other designers
Immersing oneself in a physical environment
Define: State Your Users’ Needs and Problems
EXERCISE CASE STUDIES IN DESIGN THINKING
It’s time to accumulate the information gathered during the
NA Empathize stage. You then analyze your observations and
synthesize them to define the core problems you and your team
have identified. These definitions are called problem statements.
Process of Design Thinking
You can create personas to help keep your efforts human-centered
before proceeding to ideation.
Design thinking is a popular methodology that inspires a human-
centered approach to design. It is used by many design teams at
Ideation
some of the world’s most successful tech companies. Design
thinking is a non-linear, iterative process that teams use to
The ideation stage leans heavily on the ability to invent. Designers
understand users, challenge assumptions, redefine problems and
who have captured the human experience fully during the empathy
create innovative solutions to prototype and test. The design
stage set out to ideate around creative solutions for solving the
thinking process is broken up into five specific design thinking
defined problem. Thinking outside the box is the name of the game,
stages: empathy, definition, ideation, prototyping, and testing.
as, during this stage, designers often don’t worry about budget or
scalability.
Empathy
At this point, designers should have a workable understanding of
At this stage in the design thinking methodology, designers sit down
their user base, so this is an excellent time to get creative and not
with real people and absorb their points of view, world, and
dwell too much on limitations. An example of a popular technique in
introspections without bias.
the ideation phase is an exercise called “worst possible idea.” By
inverting the search for a solution into a brainstorm of what would
Without attempting to master empathy, designers face an uphill
not work, this process sets the design team up for success by helping
climb when solving human-centric problems. When designing a
build up trust and confidence. Since no idea can technically be
product or service, empathy in design thinking builds a crucial and
“wrong” in this process, designers build up good practices of sharing
necessary bridge between the target user or audience and the
their thoughts with confidence.
product, project, or service being designed.
Prototype: Start to Create Solutions
Some steps that are often taken during this stage of the design
thinking methodology are:
This is an experimental phase. The aim is to identify the best
possible solution for each problem found. Your team should produce
Consulting subject matter experts about their insights
some inexpensive, scaled-down versions of the product (or specific
Engaging more personally with an issue to gain a better
understanding of a user’s POV
17
 features found within the product) to investigate the ideas you’ve  Health plans and other healthcare organizations can apply design
generated. This could involve simply paper prototyping. thinking to solve some of the industry’s most urgent challenges,
such as improving the customer experience.
Test
Many leading hospitals are starting to focus more on understanding the patient
he testing stage of the design thinking process requires real users to experience to solve these kinds of problems, as well as to improve overall patient
experience and to lower costs. Yet it’s not always easy to get key stakeholders to
generate real data. However, the final stage of design thinking is not consider nonclinical aspects of this type of work.
necessarily the last thing designers will do. Remember, design
thinking is built upon a foundation of iteration, so many designers One of the most promising approaches for understanding patients’ experiences
roll out multiple prototypes to test different change factors within has been design thinking, a creative, human-centered problem-solving approach
their idea. Without a comprehensive testing stage, user experiences that leverages empathy, collective idea generation, rapid prototyping, and
and solutions have difficulty scaling. continuous testing to tackle complex challenges. Unlike traditional approaches to
problem solving, design thinkers take great efforts to understand patients and
their experiences before coming up with solutions. This thorough understanding
Testing is often an iterative process. Designers can expect to go of patients (for example, those who regularly miss appointments) is what guides
through a series of changes, edits, and refinements during the the rest of the process. And because design thinking involves continuously testing
testing stage. For this reason, it’s not uncommon for the testing and refining ideas, feedback is sought early and often, especially from patients.
phase to “restart” some other design thinking processes such as
ideation or testing, as newfound ideas might spark additional Design thinking has already taken hold in health care, leading to the development
of new products and the improved design of spaces. Yet it remains underused in
potential solutions that require an entirely fresh approach. addressing other important challenges, such as patient transportation,
communication issues between clinicians and patients, and differential treatment
of patients due to implicit bias, to name just a few. If more leaders embrace design

Unit 3
thinking, they can leverage a deeper understanding of patients to solve such
problems, achieving better clinical outcomes, improved patient experience, and
lower costs along the way.
Design Thinking in Health Designing a Patient-Centered Experience

Sector How might design thinking be applied to the persistent and costly problem of no-
shows? In Mary’s case, she couldn’t explain her concerns through the standard
patient experience survey, which is initiated after an appointment and which
 Design thinking is an approach to innovation that produces more- comprises general questions focused on the medical visit. Were it not for the
comprehensive solutions than other process-improvement hospital administrator’s initiative to ask Mary what was going on, her concerns
strategies. may have gone both unnoticed and unaddressed.
 Design thinking involves four main components: empathy,
multidisciplinary thinking, rapid solutions deployment and This tailored, human-centered approach of problem solving is the foundation of
continual improvement. design thinking. Hospitals versed in design thinking would identify this general
challenge and then assign a team or task force (ideally a multidisciplinary one) to
spend weeks or even a few months studying the patients it affects. The team
would use qualitative research methods, such as surveys, focus groups, and
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observations, to better understand people’s experiences. They would seek out The benefits the Design thinking vision can bring to healthcare are many, but the
patterns and aim to define the real problem at hand. For instance, a team benefits related to patients are probably those that cause more social concern,
investigating several no-shows would quickly see that many cases do not precisely because it is something that affects us all, because at some point in our
necessarily involve a patient’s forgetfulness or time management. They’d find that life will have to go through that.
the issue faced by patients like Mary is often more socioemotional than
organizational. Among the benefits design thinking application has brought to healthcare, we can
highlight the user experience improvement when interacting with machines
After this phase, the team would brainstorm possible solutions, and then begin (reducing anxiety and fear), the improvement of the professional-user
rapid prototyping to test them. Depending on the proposed solution, a prototype communication (the doctor-patient communication or pharmacist-consumer) or
could be anything from a physical mock-up to a skit or a flowchart. For example, if the increase of comfort and mobility of patients.
the team wanted to design a screening process to identify individuals with
transport-related concerns, they could design a simple computerized simulation Shift
that illustrates how that process might look and feel to both patients and staff.
Once created, this prototype would be tested by relevant stakeholders and
1. Shifts to Value-based Care
perhaps even outside parties to collect critical feedback. Often, the feedback
indicates when or how to modify solutions, or whether to go back and gather
more information. The result is a solution focused on what will most help the Healthcare is moving beyond the walls of hospitals and into communities and the
patient. role of healthcare providers is shifting. We’re seeing new questions like, what do
we do about loneliness; as it turns out loneliness is as much of a killer as smoking
and diabetes. These types of questions lead to a better understanding of patients
Addressing a Broader Spectrum of Patient Challenges
and creating whole ecosystems of care.
There are already a few promising examples of design thinking being used to
2. Shift from Being Reactive to Proactive
create a better experience for patients. For instance, the department of obstetrics
and gynecology at Mayo Clinic used design thinking to reimagine prenatal care.
They wanted to better meet the expectations and needs of expectant mothers, Everyone is empowered to get to know their bodies and their health before
who desired a greater emphasis on the emotional experience of pregnancy, rather anything is wrong with them. Health is becoming this process of self-exploration,
than just the clinical side of it. Through interviews with and observations of local which creates entry points for people into healthcare offerings. We’re seeing a
expectant mothers, the design thinking team learned that it was extremely shift from healthcare to consumer products that can help us better understand
important for these women to have a sense of community. So, the department who we are.
created online care communities, facilitated by nurses and other pregnancy
advisers. The result was an overall improvement in how prepared and 3. Balance High Regulation with Experimentation
empowered these expectant mothers felt.
Privacy and risk committees often block tools out of security controls. But there’s
Design thinking can be used to address challenges in a variety of domains related opportunity to invite people to be fully informed about the choices they make in
to the patient experience. Consider reimagining the emergency-room waiting terms of the technology they use and give them the choice to opt into the tools. We
experience. Because care is prioritized based on the severity of a patient’s should have high standards of privacy and make sure our tools are secure, but
condition, wait times are difficult to predict. Patients and their families often there’s still room to experiment and use informed consent to prototype tools that
spend hours waiting to be seen and treated. Design thinking may uncover new may not be ready for primetime yet.
ways of helping patients feel comfortable and safe during such long waits. An
approach that starts with investigating the patients’ perspectives, including their Design Thinking in Finance
greatest pain points, may give administrators ideas for how to make the E
emergency room experience more bearable. 7 HOURS
LEAVE A COMMENT
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Design Thinking is a human-centred approach to innovation that draws from the product and service strategy have a strong understanding of the organization’s
designer’s toolkit to integrate the needs of people, the possibilities of technology, operations and possess financial knowledge that’s much better than the average
and the requirements for business success by making more desirable solutions for user. As a result, they end up designing products and services that may be well-
clients. suited for someone who knows how the company does business, but are
bewildering and downright unfriendly to customers.
Corporate finance and financial services, disrupted by technology and endangered
by the FinTech firms, are in unprecedented need of Design Thinkers able to Even worse, they don’t put much thought into how to integrate the disparate
anticipate customer preference shifts and innovate to respond to the ever- elements of the customer experience into a cohesive whole, which only leads to
changing industry needs. This course will help to understand the importance of more frustration for users. Take, for example, a typical bank. The key touchpoint
Design Thinking in finance, teach the frameworks, techniques and how to apply for the interaction comes from the bank’s mobile app, the bank’s website, a phone
them in the daily practice. representative, and the tellers at the local branch. These services each developed
organically over time as new technologies changed the way people interacted
Traditionally, finance transformation initiatives are driven by cost reduction with their bank; in many cases, they are still organized and operated
strategies. The focus is on squeezing out as much fat as possible and achieve independently. Some services can be completed over the phone, but not on the
efficiency. Take adoption of new finance software as an example. Rather than view mobile app. Other services require customers to physically visit a local branch
the adoption as an opportunity to relieve finance teams of rudimentary tasks and office. For the average user, using the bank can be a confusing and frustrating
focus on initiatives that require critical thinking, CFOs view this as an opportunity experience.
get rid of employees and cut costs.
Finding a balance between exploration and exploitation
If a business is heavily dependent on analytical thinking, especially where
performance and rewards are budget and or forecast driven, maintaining the Balancing innovation and efficiency demands the organization’s resource
status quo often prevails. The organization finds itself operating as it always has allocation not to be based entirely on past performance. Rather, a portion of the
and is reluctant to design and redesign itself dynamically over time. resources should be distributed based on the unproved ideas and projects each
business unit presents for the coming year.
When faced with a decision about investing in a new product, market or
something new and promising, but not in the current budget, the answer is always One of the reasons why a number of promising projects fail to see the light of the
no. Many at times the argument is that if something cannot be planned and day is because management have created a culture that first seeks a predictable
budgeted for in advance, it is not worth pursuing. This ultimately breeds outcome before paving way for the project. They seek reliability, which is in direct
conformity and stifles innovation as resources are allocated to business units contrast to a designer’s mindset.
based on past performance.
A designer seeks validity over reliability with the goal of producing outcomes that
meet a desired objective. The end result is shown to be correct through the
passage of time.
The financial services industry is a good example of this hesitancy. Part of the
problem here is that while design thinking emphasizes understanding and The current business environment is awash with mysteries, which take an infinite
empathizing with the user and then building products and services around their variety of forms. For example, we don’t know how our product and market
needs, financial institutions tend to operate in the reverse. Rather than focusing segments will continue to perform in future. We are not certain which
on customer experience, they develop products and services that meet their own technologies will have an immediate impact on our business. Or we might explore
needs and then expect users to adapt accordingly. the mysteries of competition and geopolitical tension.

Although banks, credit card companies, and credit unions have made a genuine Data on past performance might help us extrapolate future performance but the
effort to provide a better user experience for their customers, they often suffer future is no guarantee.
from the problem of top-down thinking. The key decision makers behind their

20
Given that the future is a mystery, the business should embrace a new way of Individuals employees see their work as own territory to be protected by all
thinking that provides a simplified understanding of the mystery and in turn help means.
devise an explicit, step-by-step procedure for solving the problem.
There is little to none collaboration. It’s all about “my responsibilities,” not “our
An organization may decide to focus on exploration, which involves a search for responsibilities.” As a result, individuals limit their focus to those individual
new knowledge and the reinvention of the business, or exploitation which focuses responsibilities, refining and perfecting outputs before sharing a complete final
on business administration and seeks to increase payoff from existing knowledge. product with others. This can be routine production of monthly reports.

Intuition, originality and hypotheses about the future are often the driving forces In contrast, designers are accustomed to working collaboratively with adhoc
behind exploration. On the other hand, analysis, reasoning, historical data and teams and clearly defined goals in a projected-oriented environment. Rather than
mastery are the forces behind exploitation. Both approaches can create significant waiting until the outcome is right, designers expose their clients to a series of
value, and both are important to the success of any business organization. prototypes that improve with each iteration.
However, organizations struggle to pursue both approaches simultaneously.
Considering that finance business partnering extends beyond traditional month-
More often, an organization chooses to focus on exploitation, to the exclusion of end reporting tasks and involves working on various business related projects,
exploration and to its own disadvantage. The solution is not to embrace the sharing performance insights and creating value, CFOs should therefore foster a
randomness of intuitive thinking and avoid analytical thinking completely. The culture that supports project-based work and explicitly make it clear that working
solution lies in the organization embracing both approaches, turn away from the on a project is no less important or rewarded than running a business segment.
false certainty of the past, and instead peer into a mystery to ask what could be.
Industry Needs Design Thinking
In other words, balance exploration and exploitation, invention of business and
business administration, and originality and mastery. Design thinking can help resolve this problem by focusing less on how the
financial institution thinks its products and services should work and more on
Finance plays a critical role in helping the business achieve efficiencies, redeploy what its customers need those products and services to do for them. The
the savings and redirect freed-up resources towards exploration of new distinction here is critically important. Nobody wants to use a banking mobile app
opportunities. just for the sake of using it; the bank is a means to an end. To put it another way,
people don’t want to use a bank; they want to manage their money effectively to
Building design into finance meet other needs in their life.

As design thinking is frequently associated with marketing and product In fairness to the financial services industry, it faces many constraints that other
development, finance is deemed an unlikely place to apply design thinking businesses do not have to take into account. Government regulations limit how
principles. However, design thinking can be applied to the finance function in much they can do with their products and services, and security concerns make it
every organization. The key is to identify and define the customers clearly and difficult to provide the usability customers want while still protecting their money
approach their needs empathetically. and data. Despite these challenges, financial institutions cannot afford to use them
as an excuse for standing still. Amazon recently announced its intention to
Unlike the marketing function which focuses its efforts on external customers, provide its own current account service, which would allow people to make
finance’s efforts are focused on meeting the needs of its internal customers. To payments without going through banks or credit card companies. Given Amazon’s
elevate design thinking in finance, the function should think differently about its success in building a compelling customer experience that consistently keeps its
structures, its processes, and its cultural norms. users engaged, financial institutions need to move quickly to keep ahead of a new
generation of competitors.
Quite a number of finance organizations are organized around ongoing,
permanent tasks. Roles are firmly defined, with clear responsibilities and reward Even working within the constraints of the industry, design thinking can still
incentives linked tightly to those individual responsibilities. The problem with uncover new ways of delivering products and services that empower users and
such a structure is that it discourages employees to see the bigger picture. meet their needs. The financial services industry needs to move away from a
21
model in which it dictates the terms of the customer experience to one that’s Design Consultation for projects, session, and courses, including
catered to what the customer wants. Reframing their design methodology to a active learning and facilitation strategies.
more “bottom-up” model will help financial institutions to better understand their
users. But simply knowing what people want is only the first step. After
identifying key pain points and needs, design teams can get to work iterating Brainstorming Kits including Post-it notes, Sharpie markers, and
products and services for testing. This process must be every bit as responsive to stickable chart paper.
users as the initial research. Simply designing a solution from start to finish based
on what users say they want often misses the mark. People may think they know
what they want until they have a solution in their hand that doesn’t feel right.
Through continuous iterative testing, design teams can be sure that they’re
adapting their solutions to the needs of intended users. Physical Prototyping Cart with dozens of creative, constructivist
supplies, including felt, yarn, foil, craft sticks, rubber bands, Play-
Although the financial services industry faces a number of challenges in Doh, Legos, and more.
implementing design thinking practices, shifting customer expectations are
making it more difficult for them to avoid doing so. As newer, less rigid companies
Prototyping. Design Thinking use cases, collated workbooks, and
begin to offer their own financial products and services, the competition promises
to become more heated. Existing financial institutions have a legacy advantage for curated research.
the time being, but if they can’t find a way to adapt to the disruptions beginning to
shake up the industry, they may quickly discover that their customers are no To Do:
longer willing to tolerate a subpar user experience when they have alternatives.

Design Thinking in Education Developing and agreeing on criteria for their designs.
Selecting tools and materials in this case, Makers Empire and 3D
Design Thinking is a mindset and approach to learning,
printing.
collaboration, and problem solving. In practice, the design process is
Supporting each other to learn how to use the new tools.
a structured framework for identifying challenges, gathering
Producing a working prototype.
information, generating potential solutions, refining ideas, and
The testing process for our first graders involved:
testing solutions. Design Thinking can be flexibly implemented;
Giving each other feedback
serving equally well as a framework for a course design or a
Assessing their designs against the previous agreed criteria
roadmap for an activity or group project.
Making modifications and improvements to their designs
Testing their designs in the context they would be used.
Classrooms and schools across the world are facing design
Reflecting on their problem-solving processes and learning
challenges every single day, from teacher feedback systems to daily
outcomes.
schedules. Wherever they fall on the spectrum of scale the
Think about projects you can do with your own students that will
challenges educators are confronted with are real, complex, and
help enhance and deepen their learning. How might you support
varied. And as such, they require new perspectives, new tools, and
your students to:
new approaches. Design thinking is one of them.
Develop empathy, insights and understandings.
Design Support
Define a problem as an actionable question.
Generate and visualise ideas.

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Develop prototypes; and revolutionized the movement of goods; or the development of the electric power
Evaluate and test their designed solutions. grid, and how it revolutionized energy provision and use. What new systems are
required today? What new systems will be required for tomorrow? Infrastructure
also needs to be looked at in the context of some important related issues such as
sustainability, climate change (concrete production produces significant
Design Thinking in greenhouse gases), migration (new centers of population, urban blight, etc.) and
local natural resource availability.

Infrastructure
Design thinking refers to the application of a discipline that tries to understand
Design Thinking  in Retail
human behaviour in order to develop or improve products or services. As Design Thinking, which is used by top brands such as Apple, Google and Samsung,
opposed to customary approaches that rely excessively on analyzing and focuses on the human aspect of the user when ideating, creating and applying
answering questions by working out the last detail, the design thinking paradigm technology. It’s an approach to innovation that any consumer-related industry
is centered on collaborative experimentation and rapid prototyping. Chief Marketing Officer would embrace.

Traditional planning methodologies rely heavily on top-down approaches the With Design Thinking, smart digital-led technologies are just the starting point.
plans are first made and strategized, and only then are the citizens informed about Human emotions and conduct are priorities. The Design Thinking process is
it. These plans are usually made without involving the citizens in the process, and highly iterative, with experiments and continuous revisions to challenge
as a result, often fail to reflect the problems faced by citizens on the ground. assumptions and redefine problems. It’s about discovering innovative solutions to
Consequently, citizens naturally have a lesser degree of ownership of these top- better the customer experience.
down plans and responsibility towards maintenance of public infrastructure.
While participatory planning approaches seek to address these gaps by working
Success stories from Design Thinking include smart user interfaces that give
with the citizens in understanding their problems, they rarely ‘close the loop’ by
customers the power to personalize their experience as per their preferences. Or
seeking feedback from the citizens after the plan is prepared. Thus, the ownership
automated chatbots/voice agents that can understand voice or text and respond
of the plan by the citizens is not guaranteed. Additionally, this also precludes any
humanly.
further refinement of the existing plan.
A good example close to you would be Google Assistant, it actively provides
Design Thinking provides us a framework to overcome the flaws of the traditional
contextual notifications about flight status, traffic, product deliveries and more all
participatory planning approaches in the following ways- first, design thinking
without being asked.
enables the creation of an infrastructure plan that places citizens at the heart of
the process. A process of deep empathising (through household surveys,
interviews, and charettes) will enable the development of a granular Creating optimal customer experiences not only makes people feel good but also
understanding of the problems faced by citizens. Second, the design thinking has true business benefits.
method also facilitates a process of refinement of the plan through continuous
prototyping and testing. Customer Satisfaction should be seen as a Profit Center

It is hard to get excited about infrastructure, but it is crying out for a more holistic, When technology decisions flow from a human-centered Design Thinking
multi-disciplinary, innovative and longer-term perspective, one that can evolve approach, consumers will always have a superior experience. An experience in
and meet our needs rather than the current band-aid approach that has resulted which the technology is an enabler rather than a distraction. The information
in a crippled infrastructure not much evolved from the last great build period about customers that flows naturally from their interactions with the products
between the 1940s and 1960s. What is missing is strategic innovation: consider, and services will provide valuable data insights. These insights can make
for example, the impact of intermodal freight transport and how that
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 marketing leaders learn quickly from changing consumer habits and respond responsibility, allowing them more engagement with the Colgate-Palmolive brand
faster. Or even to anticipate consumer needs and drive innovations to meet them. while also actively involving them as conscious consumers.

As businesses and brands are rethinking how they offer value beyond product
benefits, design thinking methods continue to help bring fresh perspectives and Design Thinking Case studies in
new ways of doing things. It allows them to consider innovation not just for the
sake of creating a new product, but to solve real problems or open new avenues of Banking
engagement: The banking industry in India doesn’t usually consider the human
factor while developing products and services. But several financial
 Serving greater needs (that could be social or environmental)
institutions are now starting to understand how important it is.
 Enabling individual involvement & participation, not just consumption
 Building experiences and communities They are using proven business strategies to foster creativity and
innovation. This is called Design Thinking.
Colgate-Palmolive: Human-Centered Commerce Hub
People mistakenly believe that design thinking is all about aesthetics
The Insight a philosophy only limited to creative types of people, who specialize
in design. But that’s not at all the case. It does not mean that you can
The new generation of professionals and family heads are increasingly conscious ignore aesthetics, but a good-looking design that does nothing for
consumers interested in “do-good” enterprises. They are also tech-savvy
consumer needs or does not solve any consumer problems has zero
multitaskers using a wide variety of digital platforms.
chance at success.
The Opportunity
Design thinking is about applying the design principles to the way
Colgate-Palmolive (CP) is strategically positioned to leverage these behaviors:        people interact with the world, rather than focusing solely on
aesthetics. An iterative process in which you try to understand the
 Industry leader with a caring reputation user, challenge your assumptions and redefine problems in an
 Social responsibility trajectory in place attempt to identify different solutions that might not be easily
 Well-established online presence supported by e-commerce partnerships apparent using conventional methods. Design thinking revolves
around developing a deep interest in understanding users of
The Solution
products and services. This helps you develop empathy with the
A human-centered commerce hub bringing together e-commerce, social target user.
responsibility, and brand loyalty translates into a digital service that invites
consumers to be a part of something bigger, bringing to life Colgate’s caring This is the complete opposite of how the banking industry in India
mission. and the credit institutions traditionally design products and
services. Financial institutions tend to develop products based on
How It Works their internal processes and operational efficiencies, instead of
focusing on the consumers. Finishing up the product with a pretty
Consumers purchasing products via this commerce hub, a digital retail partner, or
in-store will have the option to donate to one of the 3 featured social initiatives wrapper and calling it a day.
they care about. The customer journey will be one of convenience and social

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Financial institutions then wonder why consumers get frustrated features, thus researching the wire context around the product. Our
with their products and services. For example, a customer aim is to feel and emphasize with the problem we are trying to solve.
abandoning the online account, opening half-way through the To achieve this, we need to step into the shoes of the customer and
process. The process doesn’t meet the user’s need or address their business owner.
problem; to open an account without having to go to a branch.
Design thinking, in theory, can help solve that problem. Define core user problems and value

Design thinking is growing in popularity, but not a new At the Define stage, we analyze and synthesize collected data to
phenomenon define the core problems and prioritize key data. The main purpose
is to understand what value we could bring to customers and why
It is not a new concept. It’s been around in some form or the other they would prefer it over other solutions. To achieve this, we need to
since the 1960s. Today, it will be difficult to find a Fortune 100 approach data analysis from these different angles: business,
company that does not incorporate Design Thinking or at least some psychology, user behavior, competitors, marketing, technology, etc.
aspects of design thinking in how they get products and services to
market. Ideate digital banking solution

The banking industry in India and Financial services organizations At the Ideate stage, we start to generate multiple hypotheses about
are laggards in adopting laggards, but there are some exceptions. what our solution could be. Our main goal is to uncover the best way
For Example, BBVA launched a program “Design Thinking for to solve the previously defined problems. To achieve this, we need
Leaders”, to help the bank innovate and design for its customers. to step out of the box and create dozens of potential solutions.

Rob Brown, Head of Marketing, Design and Responsible Business at Prototype digital banking product
BBVA, believes that “All employees, regardless of their role, should
begin to see themselves as a designer that contributes to improving At the Prototype stage, we take dozens of previously generated
the customer experience” giving the bank an edge over its ideas about how our end solution could look and work, moving
competitors. toward designing the final version. We check all the solutions based
on previously generated user scenarios, business goals, etc. at the
Design thinking is big with technology companies that focus on the Synthesis stage. In this way, we narrow down multiple solutions into
consumer experience first. Making it likely that more financial one or more that are delivered as visual prototypes and could be
institutions will turn to design thinking since they increasingly find tested by users and business owners.
themselves competing against both mega-tech and fin-tech firms.
Test banking prototype
Empathize digital banking users
The final Test stage is needed to ensure that our visual prototype
At the Empathize stage, we collect a large amount of data about provides the needed solution according to the previously defined
business goals, customer needs and pain points, and product

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problem. If it is not, we then return to the first stage and repeat the holding cash on school premises (parents pay a lot of cash into
process. schools for trips and other school services) is a risk, as it attracts
thieves. But the real pain point for teachers is the administrative
Design Thinking in finance determines success in digital age overhead of collecting all the money for school trips, remembering
who has paid, who is going, and which parents still need to be
Design and Design Thinking have never before played a more chased. School outings enrich pupils’ lives, but the administrative
influential role in determining the success of any business in any burden on teachers reduces time invested in lesson planning their
industry. This fact is well supported by the Design Value Index core job of teaching.
(DVI), a summary of the market performance of 15 design-driven
companies including Apple, IBM, Nike, and SAP. Those companies Once it understood the real pain point, bank collaborated with an
share a high level of design strategy implementation across their tech partner to create a school app, similar to Uber. This is how it
organizations. Their executives practice design in everyday work, works. The parents associated with a class will receive a notice via
and they have design positions at the management levels. In the the app and can sign up directly no more need for signing
period from 2005 to 2015, design-driven companies outperformed attendance sheets. Parents’ bank accounts or credit cards are linked
the S&P 500 by 211%. to the app just like paying for an Uber cab so the financial
transaction takes place without cash. The app is also linked to
Impacting customers Outlook, providing diary management for everyone.

Bank is using design thinking to address big, knotty internal issues, The more perspectives that are included in the initial design
like centralizing multiple back-offices into one, to serve customers thinking stages, the easier it is to commercialize the outcome,
better. The big question is what impact have they seen on because you are uncovering real demand.
customers?
The greater good
Bank was able to see first-hand how design thinking can address
such a question through its work with its customers in the education Anything that reduces risk on school premises and increases the
space. Banks are governed and Bank is no exception by Basel 3 time teachers spend on teaching rather than on administration has
rules, a regulatory framework intended to strengthen bank capital to be a good thing. But there’s more. Bank is already contemplating
requirements by increasing bank liquidity. Schools are liquidity-rich, the wider ecosystem of the desperate need for free education in
yet they don’t need cash on site, so helping them to reduce their South Africa.
cash on site and improve their overall liquidity, while getting more
funding onto the bank’s balance sheet, enables a bank to lend more. “Design thinking helps us to solve problems at a higher level of
Sounds like a win-win proposition. Wrong. thinking it makes you think wider and bigger,” says du Plessis. “This
is a thin wedge strategy. It opens our minds to how an app like this
Using design thinking to uncover the real need, bank included might be used to offer free education in the future, especially to
teachers and educators their customers in the process, in pursuit of children in remote areas.”
radical collaboration. By doing this, they quickly discovered that

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Giving back and nation building are the next steps on the agenda.

Design thinking is a powerful tool. Used properly, it opens the

gateway to innovation that really works for customers. But it also
seems to be a recipe for cultural change changing the way a business
thinks about and manages itself.

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