Design Thinking for Business: A Creative Approach to Problem Solving

Every business faces challenges that don’t have easy answers. From responding to shifting customer expectations to improving internal processes, leaders need an approach that sparks creativity while keeping solutions practical.

That’s where design thinking comes in. Rather than focus solely on efficiency or short-term fixes, the design thinking process emphasizes understanding people and experimenting with new ideas. For organizations that want to strengthen innovation and build lasting value, this method provides a structured yet flexible path forward.

Understanding Design Thinking

What Is Design Thinking?

Design thinking is a problem-solving approach that starts with people, not products. Instead of asking, “What can we build?” the method begins with, “What do people need?” From there, businesses use a cycle of research, creative brainstorming, prototyping, and testing to devise solutions that are both useful and practical. This focus on human-centered design makes the approach valuable for organizations seeking to strengthen innovation and connect with customers. 

Core Principles

Design thinking is unique due to a collection of guiding principles that create a culture where new ideas are encouraged, tested, and refined with purpose:

  • Empathy first – Every project begins with understanding people. Tools like empathy mapping help capture the voice of the customer, so that solutions are shaped around lived experiences rather than assumptions.
  • Collaboration across roles – The best ideas rarely come from one department alone. Design thinking depends on cross-functional collaboration, where marketing, product, operations, and other areas come together to share perspectives.
  • Experimentation and learning – Instead of waiting until the end to test an idea, design thinking promotes iterative testing. This means trying out small prototypes, gathering stakeholder feedback, and adjusting quickly.
  • Problem framing – Teams are encouraged to revisit how a challenge is defined. Using tools like “how might we statements,” problems are phrased in ways that open the door to creative exploration rather than narrow solutions (more on this below).
  • Continuous improvement – Design thinking aligns well with improvement models such as the PDCA cycle (Plan, Do, Check, Act). The principle here is that innovation is never a one-time effort. Each project generates learning that feeds into the next, creating an ongoing rhythm of improvement.

The Design Thinking Framework

The design thinking process follows a flexible framework often described in five stages. While these stages are presented in sequence, teams frequently cycle back and forth between them. The goal is not to move through the steps as quickly as possible but to build understanding, generate ideas, and refine solutions in a structured way.

Empathize

Every project starts with understanding the people who will use or be affected by the solution. One common tool is customer journey mapping, which visually lays out each step a customer takes when interacting with a product or service. The map highlights pain points, moments of frustration, and opportunities for improvement. Focusing on the voice of customers at this stage helps ensure that later solutions address genuine needs rather than assumptions.

Define

Once insights are gathered, the next step is clarifying the problem. This stage involves problem framing, where research is distilled into a clear statement of what needs to be solved. As mentioned above, a helpful tool is “how might we” statements, which reframe challenges in a way that invites creativity. For example, “How might we reduce wait times?” yields more possibilities than, “We need faster checkouts.”

Ideate

The ideation phase is where teams shift from defining the problem to exploring possible solutions. Teams often use structured brainstorming techniques to push thinking beyond the obvious.

For example, the SCAMPER technique (substitute, combine, adapt, modify, put to another use, eliminate, reverse) encourages participants to look at a problem from different angles, such as:

  • Substituting one element
  • Combining two ideas
  • Adapting an existing solution

Another helpful tool is a design thinking workshop, which brings together cross-functional teams for creative brainstorming sessions.

Prototype

Ideas move from abstract concepts to tangible forms in the prototyping stage. Prototypes don’t have to be fully functional; they can be sketches, mock-ups, or simple models. The goal is to make ideas concrete enough for discussion and stakeholder feedback. Prototyping lays the groundwork for idea validation, too, helping teams quickly identify what resonates and what needs rethinking.

Test

Finally, prototypes are shared and tested with real users. This stage focuses on iterative testing, or making adjustments until the solution fits the need. Testing is less about proving a single “right” answer and more about learning what does and doesn’t work.

Operationalizing Continuous Improvement

Design thinking is most powerful when it becomes part of everyday business practice as opposed to a one-time exercise. To sustain its impact, organizations should embed feedback loops, habits, and shared responsibilities that make improvement continuous.

Embedding Loops Into Operations

The design thinking process works best when it’s treated as an ongoing cycle rather than a linear project plan. Teams gather insights, test ideas, and refine solutions repeatedly, building on what they learn each time. Embedding these loops into daily operations ensures that new knowledge doesn’t sit in a report but actively shapes products and processes. 

For instance, regular customer journey mapping can highlight fresh pain points, while scheduled sessions for stakeholder feedback keep solutions aligned with customer and business needs. Over time, these small but repeated adjustments add up to meaningful improvements.

Roles and Rituals

Sustaining an innovation culture depends on people and routines. Clearly defining roles helps ensure that cross-functional teams know how they contribute, whether that’s by leading research, facilitating creative problem-solving, or coordinating idea validation.

Some helpful rituals include: 

  • Short design reviews to check progress and keep solutions aligned with project goals
  • Design thinking workshops to capture lessons learned
  • Weekly brainstorming sessions to keep fresh ideas flowing

These practices create visible opportunities for stakeholder buy-in, or active support from all the people who influence or are affected by a project. When stakeholders see their input reflected in outcomes, they’re more likely to champion the solution and help guarantee its success.

Applying Design Thinking Across the Business

Design thinking principles can guide decisions across every part of an organization — shaping how businesses innovate, connect with customers, and support their people.

Product and Service Innovation

The most familiar use of design thinking is in creating new products or services. During the ideation phase, teams use creative brainstorming and structured methods such as the SCAMPER technique to explore possibilities. Prototyping then turns these ideas into tangible concepts that can be shared with customers, reducing the risk of launching something unproven.

Customer Experience and Marketing

Design thinking can be especially powerful in shaping how businesses connect with customers. One area where this is most visible is customer experience innovation — reworking touchpoints like websites, service interactions, or support channels to better match what customers actually need.

A common method for tackling these challenges is the design sprint process. This involves defining a problem, then building a simple prototype to test with real users. The condensed format helps marketing teams avoid months of planning without feedback.

Process and Operations

Internal processes also benefit from the design thinking process. Teams can map workflows, identify pain points, and co-create improvements that lead to more efficient operations. For example, techniques such as problem framing help pinpoint the root causes of inefficiency, while iterative testing ensures that solutions are refined before being scaled. The result is a cycle of continuous improvement supported through cross-functional collaboration.

People and Culture

Finally, design thinking influences how organizations support their workforce. Through rituals like design thinking workshops, teams can participate in creative problem-solving and share unique ideas. Ultimately, incorporating input from across the organization fosters an environment where curiosity and experimentation are not exceptions but rather everyday expectations.

Metrics, Governance, and Ethics

For design thinking to succeed long term, organizations must balance creativity with structure. Metrics, governance, and ethics provide that balance, making sure that innovation efforts deliver meaningful results and align with business priorities. 

Measuring What Matters

Innovation often produces ideas that are exciting but difficult to evaluate. To know whether a solution is truly working, teams need to define what success looks like from the start. Metrics such as customer satisfaction, ease of use, and engagement rates can reveal whether a new idea is improving the experience for the people it was designed to help.

Portfolio and Risk Management

Most organizations explore multiple ideas simultaneously. Some projects are aimed at quick wins; others are riskier but have the potential for bigger payoffs. Portfolio management is about keeping track of all these efforts to find the right balance between short-term improvements and long-term innovation.

Ethical and Inclusive Design

Every business decision affects people, so ethics and inclusivity need to be built into the process. Applying human-centered design principles means involving diverse perspectives early and testing ideas with a wide range of users. Not only does this reduce the risk of bias, but it also helps guarantee that products or services work for everyone (not just a narrow group).

Tools and Facilitation

Even the best framework depends on the right tools and practices to bring it to life. Design thinking gains momentum when teams have accessible ways to collaborate, prototype, and share ideas.

Collaboration and Prototyping Tools

Cross-functional collaboration tools help teams to share input and stay aligned, especially when working across departments or locations. Digital whiteboards, for instance, allow groups to sketch ideas in real time, while project platforms help track decisions. For prototyping, simple tools — such as wireframing software, clickable mock-ups, or even paper sketches — make concepts tangible without requiring heavy investment.

Workshop Best Practices

A well-run workshop gives participants a focused space to generate and refine ideas together. Clear facilitation is key: setting expectations, keeping sessions time-boxed, and encouraging equal participation so that every voice is heard. Mixing structured activities (like guided brainstorming or role-playing customer scenarios) with open discussion helps balance creativity with focus. Meanwhile, closing with agreed-upon next steps ensures that energy from the workshop carries forward into actual projects.

Getting Started

Shifting to design thinking doesn’t happen overnight. The most successful organizations start small, build skills, and expand gradually.

Pick the Right Pilot

Launching with a pilot project helps test design thinking in a manageable way. The best pilots focus on a challenge that’s important but not mission-critical — big enough to matter, but small enough to experiment safely. A well-chosen pilot creates visible results that demonstrate the value of this approach and helps secure support from leadership and other stakeholders.

Build Capability

Once the pilot is underway, attention turns to building skills across the organization. This can involve training sessions, design thinking workshops, or guided practice where teams apply brainstorming techniques to real problems. Developing internal facilitators (people who can lead sessions and coach colleagues) helps spread knowledge throughout the organization. When facilitation skills are distributed, design thinking becomes less dependent on a single champion and more of a shared practice.

Scale and Sustain

With early wins and growing expertise, design thinking can be scaled to larger and more complex projects. Sustaining it requires ongoing commitment. Keep collaboration tools accessible, schedule regular opportunities for feedback, and celebrate small successes that reinforce an innovation culture. Ideally, design thinking will be carried forward as part of everyday work.

Putting Design Thinking Into Action at Indiana Wesleyan University

Do you strive to deepen your understanding of innovation strategy and apply approaches like the design thinking process in real-world business settings? Indiana Wesleyan University (IWU) offers a solid foundation. Our DeVoe Division of Business prepares students for leadership and problem-solving across industries. No matter if you’re interested in studying entrepreneurship, want to pursue a bachelor’s in business administration, or are ready for your master’s, our programs offer pathways to match your goals.

Explore program options today or connect with IWU’s supportive staff to find the right fit for your professional future.

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