INNOVATIVE ENTREPRENEURSHIP

Lecture No.3
Design-Thinking in Innovation
management.

1. What is Design Thinking and how it corelates with Innovations

2. Stages of Design Thinking. Stanford model
3. Design-Driven approach for business development.

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Management Department | I. Makarchuk | 2022

 INNOVATIVE ENTREPRENEURSHIP

Design thinking is a human-centered approach to

innovation anchored in understanding customer’s
needs, rapid prototyping, and generating creative ideas, that
will transform the way you develop products, services,
processes, and organizations. By using design thinking, you
make decisions based on what customers really want instead
of relying only on historical data or making risky bets based
on instinct instead of evidence.
Design thinking brings together what is desirable from a
human point of view with what is technologically feasible and
economically viable.
Ø Desirability: What makes sense to people and for
people?
Ø Feasibility: What is technically possible within the
foreseeable future?
Ø Viability: What is likely to become part of a
sustainable business model?
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The Standard and Poor's 500, or simply

Design-led companies such as Apple, Pepsi, Procter &
Gamble and SAP have outperformed the S&P 500 by an
extraordinary 211%.
the S&P 500, is a stock market index
tracking the stock performance of 500 large
companies listed on stock exchanges in the
United States. It is one of the most followed
equity indices.

The DVI, which Motive Strategies published in

collaboration with the Boston-based non-profit
organization for designers, the Design
Management Institute, identifies a portfolio of
publicly traded companies based on specific
design management criteria, and tracks their stock
value over a ten-year period.

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Designing is more than creating products and services; it can be

applied to systems, procedures, protocols, and customer experiences.

A design mindset is not problem-focused, it’s solution-focused and

action-oriented. It involves both analysis and imagination.

Design thinking provides leaders with a framework for addressing complex

human-centred challenges and making the best possible decisions concerning:
• Redefining value;
• Re-inventing business models;
• Shifting markets and behaviors;
• Organizational culture change;
• Complex societal challenges such as health, education, food, water and
climate change;
• Problems affecting diverse stakeholders and multiple systems

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This framework integrates classic creative problem-solving

(CPS) with art and design methodologies.

Creativity at Work Design

Innovation Protocol

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The Hasso Plattner Institute of Design at Stanford (aka the

d.school) describes design thinking as a five-stage process. Note: These
stages are not always sequential, and teams often run them in parallel,
out of order and repeat them in an iterative fashion.

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The five practices that enable innovation include:

a) the development of a deep empathic
understanding of user needs and context;
b) the formation of heterogeneous teams;
c) dialogue-based conversations;
d) the generation of multiple solutions winnowed
through experimentation;
e) the use of a structured and facilitated process.

Stanford’s Design Thinking Model

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The design-driven innovation

methods helps you identify new
Design-driven is an approach to business that views business opportunities using user
everything as a design. Design is the practice of creating insight. Rough drafts of plans,
form, function and experience. The process of design can be prototypes and solution descriptions
are key tools in this method.
applied to develop strategy, solve problems and create value.

Design-driven innovation is a process that

The main benefit of the design-
driven approach is an opportunity to
formulate the project vision together with
the client. The client arrives at essential
conclusions during those first analysis and
design sessions.
focuses on the user when developing new
products or services. The method reveals
user behavior, practice and potential
needs. Users may be consumers,
customers, co-workers, businesses,
collaborative partners, suppliers or other
members of society.

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Design-Driven Approach

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Learn More about Design Thinking

Design consultancy IDEO’s design kit is a great repository of Design Thinking tools and case studies:
https://www.designkit.org/
To keep up with recent developments in Design Thinking, read Design Thinking pioneer Tim Brown’s
blog: https://designthinking.ideo.com/
To learn how to engage in Design Thinking, check out our course “Design Thinking: The Ultimate
Guide” – an excellent guide to get you started on your own Design Thinking projects:
https://www.interaction-design.org/courses/design-thinking-the-ultimate-guide
Design Thinking Podcast
https://dochangeright.com/episode-20-using-design-thinking-to-drive-
innovation/?gclid=CjwKCAjwqJSaBhBUEiwAg5W9pzvNmivZDlcqKUgQpqIjdt2HinP6U5bvOP5c5
EO7VrUo-9wHH7HqBBoCuIAQAvD_BwE

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Management Department | I. Makarchuk | 2022