Outstanding Companies: The Power of Design Thinking

In today’s competitive business landscape, companies like Apple, Nike, and Tesla stand out as exceptional examples of success. These companies have one thing in common— they are all design-driven. They understand the importance of design thinking when it comes to creating groundbreaking products and solving complex business problems. And their efforts have paid off, as companies that utilize design thinking have experienced a 41% higher market share, a 46% competitive advantage, and customers who are 50% more loyal. In fact, these companies have outperformed the average American stock market by an astounding 219%.

Let’s take a closer look at Apple as a prime example of a company that has harnessed the power of design thinking. It wasn’t always the mega-success that it is today. In 1997, Apple was undergoing a major overhaul when Steve Jobs took the reins. Jobs made the bold move of cutting several product lines and pushing the company toward developing a distinctly Apple experience. From that point on, all of Apple’s products, such as the “i” series, have had a unique look, feel, and user-friendliness that sets them apart from competitors. Design thinking showed the world that Apple was a company with a soul and vision, and this message continues to resonate with customers. Jobs not only conveyed what he was selling, but also why customers needed it.

Design thinking is not just limited to design professionals. It is a discipline that can benefit everyone in any profession. Whether it’s research and development, strategy, or content creation, design thinking can improve the way we approach problem-solving and innovation. It allows us to look at problems holistically and find creative solutions that go beyond surface-level fixes.

At its core, design thinking is about solving problems creatively. Instead of getting stuck in the negative spiral of focusing solely on problems, design thinkers have a mindset that always envisions an ideal future. They focus on solutions rather than dwelling on the issues at hand. This creative mindset requires individuals to use every tool at their disposal, from intuition and imagination to logic and reasoning, to unravel complex problems and explore possibilities.

Design thinking is an iterative and reflexive commitment to innovation. It involves several stages that can be applied to any problem-solving process. These stages include empathizing, defining, ideating, prototyping, and evaluating.

Let’s look at a case study from Watsons, a pharmacy chain, to see how these stages can be applied in a real-world scenario.

The first stage is empathizing, which involves gathering as much information about the problem as possible. In this case, Watsons realized that many shoppers were visiting the oral health aisle of their pharmacies but leaving empty-handed. To understand why, they developed a collaborative relationship with other companies to figure out what was holding customers back.

Once enough background information is collected, the next stage is defining the problem. This involves conducting surveys and observing how people interact with the products. In Watsons’ case, they interviewed shoppers and listened to their feedback. Customers expressed difficulty in finding the oral health products they were looking for, citing issues like constantly changing shelf layouts and a lack of product availability.

With a clear understanding of the problem, the next stage is ideating. This is where the creative juices flow. The goal is to reconcile the gap between customer expectations and what the company currently offers. By analyzing customer feedback, patterns, and brainstorming sessions, solutions that didn’t previously exist start to take shape. In Watsons’ case, they identified a common problem— customers couldn’t find the ideal toothpaste for their needs. In response, the collaborators decided to come up with a system, called the “Quick Finder,” to make it easier for customers to locate the best toothpaste for them.

The fourth stage is prototyping. Design thinking requires novel solutions, and prototyping allows for the development and refinement of ideas. Watsons started with rough drawings and consulted with customers and workers throughout the design process. Eventually, they created a prototype machine where customers could input information about the product they wanted, and the system would highlight the best options.

The final stage is evaluating. No solution is complete without testing and obtaining feedback. In this stage, end-user input is crucial, but quantitative data is also considered to measure the effectiveness of the prototype. Watsons gathered feedback from customers and store workers to ensure that the “Quick Finder” addressed their needs. They also compared oral care sales before and after implementing the new design to measure its impact.

Design thinking isn’t just for designers. Any individual or company can benefit from adopting this mindset and approach to problem-solving. By looking at issues holistically and addressing the needs of end-users, businesses can improve their innovation capabilities and enhance their customers’ experiences. So, whether you’re a small business owner, a marketer, or a CEO, embracing design thinking can lead to outstanding results.