Design Thinking: From a Problem-Solving Method to an Innovation Capability  In the following sections, we exami e the field of design with a focus on one of its recent developments, design think-ing, because of its ambition to con- ribute to the field of management in general.   Design as the Field of Innovation  According to Simon (  1969  ), desi n is the process by which we devise courses of action aimed at changing existing situ-ations into preferred ones thro gh the creation of artifacts� objects created by humans through creative reasoning. Design is concerned with innova ion: It is the science of the artificial (Simon,   1969  ). In this sense, it is different from other cognitive approaches su h as decision making because it requires us to define the options among which the choice and the optimization is rea ized.  For a long time, design was con-sidered the creative activity whose aim was to determine the formal qualities  f manufactured objects (Maldonado & Cullars,   1991  ). Loewy renewed this perspective by emphasizing the func-ti nality dimension through industrial design. The Bauhaus (Droste,   2002  ), a landmark in the academic field of desi n that was founded in 1919 by Walter Gropius, is generally consid-ered the birthplace of design that went beyond th  pure aesthetic and artistic perspective. It was based on the union of all arts and crafts. Gropius developed a craft-bas d system of teaching that aimed at developing skills, resulting in the creation of useful and beautiful artifacts for mas - production products that achieved functional and aestheti-cally satisfactory design. In Gropius �  s thinking, desig ers were to integrate the materials and colors as well as the artistic, the visual dimension, and, pro-gressively, the tec nology. They were encouraged to produce their own cre-ative designs based on their subjec-tive perceptions. Thoug  the Bauhaus school existed for only 14  years, it had      The biggest driving force is the accelerated rate of change in business and society caused by advances in technology. As companies become more software-driven, and the rate of change increases, so does complexity.       Most companies are optimised to execute and solve a stated problem. Creativity is about finding the problem worth s lving. An absence of a scalable creative framework encourages incremental innovation in lieu of disruptive innovati n. As companies strive for disruptive innovation, they must find ways to inject and scale creativity across their organ sations.       Digital transformation is about the accelerated disruption of business models and requires a mind-set shift from prob em solving to problem finding. CEOs need to be visionary leaders: from establishing an internal culture that encoura es ideation, creation, and iteration, to building strategic partnerships to create new value propositions.7  �  Sam Yen  Chief Design Officer and Dr. Chakib Bouhdary, Digital Transformation Officer, at SAP      Design thinking is our best tool for sense-making, meaning making, simplifying processes, and improving customer  xperiences. Additionally, design thinking minimises risk, reduces costs, improves speed, and energises employees.  esign 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 behaviours   �  Organisational culture change   �  Complex societal challenges such as health, education, food, water and climate change   �  Problems affecting diverse stakeholders and multiple systems      Design thinking succeeds when it finds ideal solutions based on the real needs of real people. In a recent Harvard Bu iness Review article on the evolution of design thinking, Jon Kolko8 noted,      People need their interactions with technologies and other complex systems to be simple, intuitive, and pleasurable.  hen done well, human-centred design enhances the user experience at every touch point and fuels the creation of pro ucts and services that deeply resonate with customers.Design is empathic, and thus implicitly drives a more thoughtf l, human approach to business.      When done well, human-centred design enhances the user experience at every touch point and fuels the creation of p

oducts and services that deeply resonate with customers.      Design thinking informs human-centred innovation. It begins with developing an understanding of customers�  or u ers�  unmet or unarticulated needs. � The most secure source of new ideas that have true competitive advantage, an  hence, higher margins, is customers�  unarticulated needs,�  says Jeanne Liedtka (Batten Briefings, 20149), � Cus omer intimacy �  a deep knowledge of customers and their problems �  helps to uncover those needs.�       Design thinking minimises the uncertainty and risk of innovation by engaging customers or users through a series of prototypes to learn, test, and refine concepts. Design thinkers rely on customer insights gained from real-world expe iments, not just historical data or market research. McKinsey reports the best results come from constantly blending  ser research � quantitative (such as conjoint analysis) and qualitative (such as ethnographic interviews) with market analytics.


Design Thinking : From a Problem - Solving Method to an Innovation Capability In the following sections , we exami e the field of design with a focus on one of its recent developments , design think - ing , because of its ambition to con- ribute to the field of management in general . Design as the Field of Innovation According to Simon ( 1969 ) , desi n is the process by which we devise courses of action aimed at changing existing situ - ations into preferred ones thro gh the creation of artifacts � objects created by humans through creative reasoning . Design is concerned with innova ion : It is the science of the artificial ( Simon , 1969 ) . In this sense , it is different from other cognitive approaches su h as decision making because it requires us to define the options among which the choice and the optimization is rea ized . For a long time , design was con - sidered the creative activity whose aim was to determine the formal qualities f manufactured objects ( Maldonado & Cullars , 1991 ) . Loewy renewed this perspective by emphasizing the func - ti nality dimension through industrial design . The Bauhaus ( Droste , 2002 ) , a landmark in the academic field of desi n that was founded in 1919 by Walter Gropius , is generally consid - ered the birthplace of design that went beyond th pure aesthetic and artistic perspective . It was based on the union of all arts and crafts . Gropius developed a craft - bas d system of teaching that aimed at developing skills , resulting in the creation of useful and beautiful artifacts for mas - production products that achieved functional and aestheti - cally satisfactory design . In Gropius � s thinking , desig ers were to integrate the materials and colors as well as the artistic , the visual dimension , and , pro - gressively , the tec nology . They were encouraged to produce their own cre - ative designs based on their subjec - tive perceptions . Thoug the Bauhaus school existed for only 14 years , it had The biggest driving force is the accelerated rate of change in business and society caused by advances in technology . As companies become more software - driven , and the rate of change increases , so does complexity . Most companies are optimised to execute and solve a stated problem . Creativity is about finding the problem worth s lving . An absence of a scalable creative framework encourages incremental innovation in lieu of disruptive innovati n. As companies strive for disruptive innovation , they must find ways to inject and scale creativity across their organ sations . Digital transformation is about the accelerated disruption of business models and requires a mind - set shift from prob em solving to problem finding . CEOs need to be visionary leaders : from establishing an internal culture that encoura es ideation , creation , and iteration , to building strategic partnerships to create new value propositions.7 � Sam Yen Chief Design Officer and Dr. Chakib Bouhdary , Digital Transformation Officer , at SAP Design thinking is our best tool for sense - making , meaning making , simplifying processes , and improving customer xperiences . Additionally , design thinking minimises risk , reduces costs , improves speed , and energises employees . esign 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 behaviours � Organisational culture change � Complex societal challenges such as health , education , food , water and climate change � Problems affecting diverse stakeholders and multiple systems Design thinking succeeds when it finds ideal solutions based on the real needs of real people . In a recent Harvard Bu iness Review article on the evolution of design thinking , Jon Kolko8 noted , People need their interactions with technologies and other complex systems to be simple , intuitive , and pleasurable . hen done well , human - centred design enhances the user experience at every touch point and fuels the creation of pro ucts and services that deeply resonate with customers . Design is empathic , and thus implicitly drives a more thoughtf l , human approach to business . When done well , human - centred design enhances the user experience at every touch point and fuels the creation of p oducts and services that deeply resonate with customers . Design thinking informs human - centred innovation . It begins with developing an understanding of customers � or u ers � unmet or unarticulated needs . � The most secure source of new ideas that have true competitive advantage , an hence , higher margins , is customers � unarticulated needs , � says Jeanne Liedtka ( Batten Briefings , 20149 ) , � Cus omer intimacy � a deep knowledge of customers and their problems � helps to uncover those needs . � Design thinking minimises the uncertainty and risk of innovation by engaging customers or users through a series of prototypes to learn , test , and refine concepts . Design thinkers rely on customer insights gained from real - world expe iments , not just historical data or market research . McKinsey reports the best results come from constantly blending ser research � quantitative ( such as conjoint analysis ) and qualitative ( such as ethnographic interviews ) with market analytics .