In the fast-paced, ever-evolving world of business, the ability to innovate and adapt is no longer a luxury but a necessity. One of the most powerful tools in this regard is Design Thinking—a strategy that transforms the way businesses approach problems, engage with customers, and create value. But how exactly does Design Thinking work?
More importantly, how can it revolutionise your business approach?
The power of design thinking strategies
A fresh perspective on problem-solving
Design Thinking is more than just a buzzword; it’s a mindset that prioritises empathy, creativity, and experimentation. Unlike traditional problem-solving methods, which often focus on linear processes and efficiency, Design Thinking encourages businesses to view challenges through the eyes of their customers. This human-centred approach ensures that solutions are not only innovative but also deeply resonant with the needs and desires of the target audience.
Case study: Airbnb
One of the most compelling examples of Design Thinking in action is Airbnb.
The company’s co-founders, Brian Chesky, and Joe Gebbia, both designers, shared a flat in San Francisco after meeting at university. In 2007, during a design conference that caused a spike in hotel prices, they sought a solution to help attendees find affordable accommodation. They decided to purchase air mattresses and launched airbedandbreakfast.com, offering their space to visitors.
Encouraged by the initial success, Chesky and Gebbia saw potential in further developing their concept. Leveraging their design backgrounds, they employed empathy-driven techniques to address key questions: “What do travellers need during their stay? How can they easily navigate from the airport to their accommodation? How can hosts provide personal recommendations for local dining?”
These insights guided the evolution of their platform, enabling users to book a place to stay, order breakfast, and communicate with hosts for tips or recommendations. The addition of a feedback system for both guests and hosts helped build trust within the community.
Today, every design team at Airbnb includes a leader whose primary role is to advocate for the customer and ensure their needs are central to the development process.
Design thinking is a catalyst for innovation
What sets Design Thinking apart is its ability to foster innovation. By encouraging divergent thinking—where all ideas, no matter how unconventional, are explored—businesses can break free from the constraints of traditional thinking. This often leads to breakthrough innovations that redefine industries.
Real-life case study: IBM
IBM’s turnaround in the early 2010s is a testament to the power of Design Thinking.
IBM’s design thinking framework, tailored to the complexities of the global enterprise, has revolutionised their approach to innovation. By aligning diverse teams around user needs, IBM has accelerated product development and enhanced client engagement. Over five years, IBM has integrated more than 1,600 designers into a global network of 50 studios, fostering collaboration and co-creation. This methodology has become a core practice at IBM, with 114,000 employees—nearly one-third of their global workforce—certified in design thinking through their Enterprise Design Thinking program. Forrester Research has validated IBM’s approach, highlighting its ability to innovate, deliver faster, more efficient workflows, and a substantial return on investment.
- Forrester found that IBM teams using design thinking with adequate design talent are reaching the market twice as fast, cutting design and development time by up to 75%.
- This efficiency also leads to cost savings, risk reduction, and increased profitability. For instance, a health and human services organisation reduced defects by over 50%, achieving a 300% ROI.
- In a survey, 52% of senior leaders associated IBM with design thinking expertise, solidifying their leadership in this area.
IBM’s leadership in enterprise design thinking not only benefits the company but also its clients, demonstrating the significant business value of this human-centred, innovative approach.
Embracing change management: navigating unprecedented challenges
Organisations are continually faced with unprecedented circumstances, from market disruptions to global crises. This is where change management becomes critical. When the unexpected occurs, businesses need leaders who can remain composed, think strategically, and guide their teams through the storm. Confidence in dealing with business crises is not innate; it’s developed through experience and holistic management education from top B-schools like Badruka School of Management, where students are trained to not only survive but thrive in difficult times.
The role of leadership in driving design thinking
While Design Thinking can significantly impact business strategy, its success largely depends on leadership. CEOs and business leaders must champion this approach, creating an environment where creativity and experimentation are encouraged. Leaders who embrace Design Thinking are better equipped to navigate the complexities of the modern business landscape, making them more effective in driving innovation and growth.
Ford motor company under Alan Mulally’s leadership
When Alan Mulally became CEO of Ford in 2006, the company was on the brink of bankruptcy, suffering from outdated practices and a lack of innovation. Mulally introduced a radical cultural shift, leveraging design thinking to transform Ford’s approach to product development and customer experience.
Mulally’s leadership emphasised cross-functional collaboration and a deep understanding of customer needs. He encouraged teams to break down silos, work together more effectively, and focus on designing vehicles that resonated with modern consumers. By integrating design thinking into the core strategy, Ford not only revitalised its product line but also enhanced its overall brand image.
Under Mulally’s guidance, Ford avoided bankruptcy, returned to profitability, and re-established itself as a leader in the automotive industry. His commitment to design thinking and innovation was instrumental in driving Ford’s successful turnaround, illustrating the critical role of leadership in fostering a culture of creativity and user-centred design.
Transform your business with design thinking from the top B-school
The real-world examples highlight the transformative potential of Design Thinking. This strategy goes beyond mere problem-solving; it’s about reimagining the way businesses operate, interact with customers, and create value. By prioritising empathy, fostering innovation, and encouraging leadership to embrace these principles, businesses can unlock new opportunities for growth and success.
At Badruka School of Management (BSM), we recognise the immense potential of Design Thinking in shaping the future of business. Our PGDM programme is designed to equip students with the skills and mindset required to excel in this area.
We also understand that Design Thinking alone is not enough to move mountains. A professional might be exceptionally skilled in Design Thinking, but without effective communication, that expertise can go unnoticed or misunderstood. If the professional fails to articulate their ideas clearly or miscommunicates their vision, the value of their skill is diminished. The power of Design Thinking lies not only in innovative solutions but also in the ability to convey those ideas persuasively to stakeholders.
Hence, BSM’s PGDM programme is committed to the holistic development of our students, which is why the curriculum includes short-term courses in Essential Skills and Perspectives. These courses cover everything from problem-solving and effective communication to persuasive writing and business ethics. The goal is to produce professionals who are capable of navigating the complexities of the modern business world with confidence and integrity.
Get more details on Badruka’s PGDM programme!