Ep 185| 5 Reasons why design thinking is important in todays produt development

Why design thinking is very important in today's day and age. In this podcast I'm going to tell you a little history of this particular word, why it has emerged, how it has emerged, and the five important reasons why it is flourishing in a huge way in product development life cycle. Okay, so take a lot of notes. You're going to get a perspective of why it is very important and you're going to learn how this learning is going to integrate into your product design development process so that you can do your stuff very effectively, you can be more productive, you can be more linear, non linear in your thinking process. Okay, so take a lot of notes. Let's jump in. Welcome to Design for Change. Thank you for staying tuning in with me. 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And we're going to be learning a lot of things inside my program, but this could be a very good kind of a moment where you can know what is design thinking, what are its perspectives? Ok, but if you want a very detailed construction of this particular tool and how you want to use it, how you want to implement it, and why certain industries are not using, why they are using to all to learn all these nuances. I would highly, highly recommend you can jump into my program. Ok, so yes, so let us come into this design thinking. What is this? Actually it is definitely a human centered approach. It is not an animal centered approach or it's not a plant centered approach. It's not a global centered approach. It is human centered approach. Many people get a big confusion here itself. Okay, let me stop. Design thinking is a human centered approach in order to make some designs or to make some innovation that is a overlapping thing between needs of the people and the technology possibilities and the business requirement. If you draw three Circles and intersect it. Then you can able to find a sweet spot. And the toolkit which is going to integrate all these three things is what is called design thinking. So how you want to use it it is up to up to the methodology framework. But that this is the basic definition of it. See, this has come initially from the guy called David Kelly and Tim Brown of ideo. You can read a book called Change by Design. It is a beautiful book. And they are a consulting firm in early 90s. They have really made this work. See, the roots can be tracked back to somebody called Herbert Simon, an American economist in cognitive psychology psychologist who proposed this. But it was a 1960 I am saying but it was actually prevalently used after this IDEO Design Studio have used prevalently in this. So what are the five reasons? Let me tell you quickly guys. See before going into the five reasons I want to emphasize see. According to Design Management Institute Design Value Index design driven companies are outperforming the S&P 500 by 228 percentage in the last 10 years, which is like phenomenal. IBM's 2018 Design Value Index study found that design led companies achieve 32% more revenue growth and 56 percentage total higher return on shareholders investment compared to any other peer industry. So can you see the correlation between the design thinking methodology applied and the design industry's taking decision on how it is going into return on investment? Can I tell you guys in UI UX field, when you invest 1 rupee for your product or service, you're going to get hundred hundred times in return. That's like 1000 percentage ROI. So a 2019 McKenzie Design Index survey found that 300 publicly listed companies found that those with the highest McKinsey index scores experienced 32% higher revenue growth and 56% higher stakeholder returns than industry counterparts. So McKinsey Design Index survey so you can understand the word design is playing a huge role even in the consulting industries like McKinsey. So a survey by Adobe found in 2019 revealed that companies that foster creativity innovations are 3.5 times more likely to outperform their peers. So what does it really mean? So you need to understand there are some studies which proves that increase in website conversion rate have gone up to 200 percentage for the people who are applying design thinking and understand the empathy and do it. And also people who are doing this design thinking, they were able to forecast the testing errors, the bugs and the major changes in their software deployment. And that can save lot of money before a major investment. IBM found 79 percentage reduction in development cost through this design thinking approach. So this was an IBM case study which was found. So this is all clearly proving that this is one of the highest skill guys which is going to be valued in the design world. And companies seek candidates with design thinking skills to stay competitive. Can I tell you one important statistics? A LinkedIn Learning report found that design thinking is the top one soft skill for the future of work, particularly for design studios. It is a report by LinkedIn Learning. So now you are going getting an understanding how it is related to business development, how it is relating to what you call future of the skills requirement, how it is relating to the world of product design and UI UX design. So having understood this, now you have to know the reasons why it has really created that impact. Very first thing is it is a human centered approach. I already told you so this plays a very strong emphasize guys like understanding the users, the needs of the business, the behavior of the user. The designers can really create the solution by truly resonating with them. See, there is a huge difference between people who are solving the normal problem and people are using the design thinking approach. Because many times engineers and other people ignore the people out of the equation. I have seen that, I have experienced that, I have been there because I am also a engineer who worked in the product development process for five years. In fact we are developing one automotive which is a transportation for tractors like let's say agriculture equipment. So the thinking process is because the people are same, right? The people who are going to engineer it or research it is going to be the same. But the moment when a design thinking process comes, there is another attribute which will add which is called iterative process. See, design thinking involves a major repetitive of cycles like multiple types of ideation, prototyping, testing. You know, this allows you to get more feedbacks, it refines your idea and going to the team. So human centered approach, iterative process. This leads to the two important steps and the third step is going to be creativity and innovation. The moment when you do iteration, your design thinking encourages your divergent and convergent. Like let's say you can think broad in your area of ideation and you can go very narrow and deep in your area. The moment when you use this convergent divergent thinking a lot in your design thinking process, you will see creativity, you'll see huge out of box thinking. People called it so called out of box so that there is nothing called box. But anyway people call it like that way. So you will get all those creative ideas. For me that doesn't exist. But yeah, you will get those kind of an ideas. I mean box is something you draw. In my context I would say erase all those boxes. Think freely. Whatever you want to do, really make it relevant for the problem. What you are trying to solve. Use divergent, use convergent, use neutral. Use whatever thinking you want. It explores you a range of possibilities. So let me recollect you guys. First is it is important why? Because of a human centered approach. It is important why? Because it follows an iterative process. Third is it is important why? Because of the creativity and innovation which brought in fourth one of the major important pillars of design thinking. Why it's important it promotes the interdisciplinary collaborations by bringing different, different teams together. Like let's say testing teams, engineering teams, different skill set, marketing, sales, R and D. So this can leverage a great expertise and tackle multidisciplinary problems. You know what? Sometimes you will not consider environment. Sometimes you will not consider business. Sometimes you will not consider cost. Sometimes you will not consider the logistics part. Your product could not be transported even. It can be user friendly, it can be business friendly, it can be profit making. Everything is there. But literally it is not possible to ship that product because of huge hazardous issues. What you will do, that is where you need to have a overlapping advantage and disadvantage of knowing all the departments and skill sets and how it can go. That is why guys, design thinking is flourishing in every industry. And that's why I told you it's a top hot skill. And the last but important thing is user experience focus. See why we are doing all these things is to make sure the ui, UX and product design is having the huge user experience in Paramount. Let it come to TV advertisements of the product. Let it come to store experience of a product. Let it comes to purchasing a product. Let it comes to using the product. Let it comes to throwing out the product. How the whole user experience is affecting the touch point. You know what? This is what makes the design thinking process even more sweeter. To understand the deep needs of the user and their behavior. If you get a point, if you get this five important things, guys, you're going to value design thinking like anything. Okay? I hope this podcast would have given you clarity. Thank you so much. We'll see another episode. If you need more details about this, you can ping to that email and we'll be happy to help you out to take our deep sessions on design thinking approach. Okay? So come and experience it. Take care. Bye bye guys.