Design Thinking: an innovative change process for the retail industry

The retail industry has its own unique set of norms, and the industry is constantly evolving and undergoing change. The idea of introducing innovative products and what the impact is can be found throughout the literature; however, there are not many frameworks presented to implement innovative change through a retail environment. The idea of design thinking will now be presented and explored as a source of information and guidance as an innovative change process.

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Design thinking was first introduced by Tim Brown in 2005 as a methodology based on design philosophy [1]. As an overlapping system of inspiration, ideation, and implementation, design thinking is a set of interrelated activities set along a continuum of innovation [2; 3; 4]. It is not a set of pre-determined steps to achieve one end goal [4]. The process enables the creation of technologically feasible solutions to problems that match users’ needs through a business strategy that converts into customer value and market opportunity [4]. Simply put, the methodology enables managers to solve problems through design thinking in the same way designers solve design problems in order to gain value [1; 4; 5].

Since the process is consistently compared to design and the roles of designers, the idea of design needs to be outlined. As a problem-solving activity, design is a natural, ubiquitous activity used to meet certain specifications, functions, and features [6]. Designing disseminates across various human activities ranging from engineering, architecture, the fine arts, financial planning, and the culinary arts [6]. While there is seemingly a difference between the creative process that artists use and the set of rules and formulas engineers follow, the underlying theory behind design is a process that is used to create a desired result [6]. Furthermore, it can be understood that the design thinking methodology follows the basic principles of design. What sets the design thinking process apart is the added element of collaboration and a human-centered focus to meet user needs [7]. Design thinking is said to be best for solving "wicked" or complex problems during times of intense, disruptive change [8]. According to the Standford d.school, design thinking follows a five-step approach: empathize, define, ideate, prototype, and test [9]. Through this way of thinking, designers utilize visual representations and diagrams to conceptualize, reflect, and self-critique their ideas in order to find relations to solve problems and understand the wants and needs of their users [4; 10].

Design Thinking Quick Guide

As the concept of design thinking has gained popularity, the true meaning has not remained consistent, and the depth of integration has been lost [7]. One criticism is that the design thinking process does not foster the skills associated with product development or the implementation process [11]. The lack of these skills becomes present when the prototypes from the design thinking process must be developed into real solutions [11]. Further research is needed on the success rates of problems solved through the design thinking process and if there is a need to establish another phase of the process that focuses on implementation. Another criticism of the process is the lack of diversified methods and tools available. With an increased population of new users who have no experience with the process, the current methods and tools used may not be applicable or beneficial to the problems they are trying to solve [12]. Chasanidou et al., argues that new collaborative methods and tools should be developed for each phase of the process since the degree of innovation and user experience may vary [12].

Design thinking allows management to facilitate innovative solutions to problems [4]. The approach focuses on the needs and wants of consumers in order to gain a competitive advantage and a sense of differentiation [4]. As a concept that is relatively new, there are gaps in the literature on the success rates of utilizing a design thinking approach, and there are growing criticisms on whether the process results in solutions if conducted by teams who do not have any experience. However, the design thinking approach has made a beneficial impact on business and management. When it comes to product management and the retail industry, design thinking can be used as a strategy to create and introduce new products in the market.

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The above description of design thinking is an excerpt from my master's dissertation. I was first introduced to the concept during one of my classes, Project Innovation and Change. Another course, Entrepreneurship and Innovation, further emphasized the rise in the concept's popularity.

I really enjoyed the Project Innovation and Change class, and I gained hands-on experience using the technique. The class was set up as one major project, where students found problems on campus and used design thinking to create innovative solutions. My group tackled the wayfinding and navigation issues on campus, which resulted in the creation of a new navigation app and updates to the paper maps found around campus. The class was a struggle, and it was very hard to adapt to the design thinking approach; however, in the end I found I enjoyed the process. I think breaking habits when it comes to problem-solving, such as assuming the answer before having all of the data, was the hardest part of adjusting to design thinking.

When it comes to applying the process to the retail industry, I think brands could use the approach when implementing change. Whether it is updating store layouts and formats, creating new processes, or identifying what products users want, design thinking would allow for brands to shift their focus to what their customers actually want not what they think customers want.

Have you used the design thinking approach? What are your thoughts?

Resources:

[1] Zheng, D. (2018). Design thinking is ambidextrous. Management Decision, 56(4), 736-756. doi: http://dx.doi.org.ezproxy.bond.edu.au/10.1108/MD-04-2017-0295

[2] Luebkeman, C. (2015). Design Is Our Answer: An Interview with Leading Design Thinker Tim Brown. Architectural Design, 85(4), 34–39. https://doi.org/10.1002/ad.1922

[3] Chasanidou, D., Gasparini, A., & Lee, E. (2014). Design thinking methods and tools for innovation in multidisciplinary teams. Innovation in HCI: What can we learn from Design Thinking, 27-30 

[4] Brown, T. (2008). Design thinking. Harvard Business Review, 86(6), 84–92, 141.

[5] Dunne, D., & Martin, R. (2006). Design Thinking and How It Will Change Management Education: An Interview and Discussion. Academy of Management Learning & Education, 5(4), 512–523. https://doi-org.ezproxy.bond.edu.au/10.5465/AMLE.2006.23473212 

[6] Braha, D., & Maimon, O. (1997). The design process: Properties, paradigms, and structure. Ieee Transactions On Systems Man And Cybernetics Part A-Systems And Humans, 27(2), 146–166. https://doi.org/10.1109/3468.554679 

[7] IDEO. (2019, February 21). Design Thinking History. Retrieved from https://designthinking.ideo.com/history

[8] Davis, J., Docherty, C., & Dowling, K. (2016). Design Thinking and Innovation: Synthesising Concepts of Knowledge Co-creation in Spaces of Professional Development. The Design Journal, 19(1), 117–139. https://doi.org/10.1080/14606925.2016.1109205

[9] d.school (2019). Available at: https://dschool.stanford.edu/resources/the-bootcamp-bootleg [accessed: 06 November 2019]

[10] Razzouk, R., & Shute, V. (2012). What Is Design Thinking and Why Is It Important? Review of Educational Research, 82(3), 330–348. https://doi.org/10.3102/0034654312457429

[11] Hillgren, P., Seravalli, A., & Emilson, A. (2011). Prototyping and infrastructuring in design for social innovation. CoDesign, 7(3-4), 169–183. https://doi.org/10.1080/15710882.2011.630474

[12] Chasanidou, D., Gasparini, A., & Lee, E. (2014). Design thinking methods and tools for innovation in multidisciplinary teams. Innovation in HCI: What can we learn from Design Thinking, 27-30