Key Points

• Design thinking is an iterative approach driven by empathy for customers.
• It is an approach that is beneficial for any organization or industry.
• Proper implementation of design thinking can see increased customer satisfaction.

What industries benefit the most from design thinking? Design thinking is a growing approach to the entire conceptualization and execution of new products to market. However, despite its increasing popularity, it is better suited for certain industries.

Now, that isn’t to say your organization should forego implementing design thinking. It all depends on the approach and the execution rather than where it is best suited. As you’ll see from some of the examples I’ll highlight, this method of product development might be just what you need for your next product release cycle.

What Is Design Thinking?

Design thinking can be seen as an iterative framework expressly for the creation of new products. Compared to other frameworks like DFSS or FMEA, design thinking primarily concerns itself with customer needs. Often, when creating a new product at least, there is always the question posed of which user need it solves.

However, this is where design thinking marks itself apart from other frameworks. You’re considering the way users interact with various elements in their day-to-day lives when creating new products. As such, wholly new situations and solutions can be drummed up in rather short order.

Consider something like a video store vs. a streaming site. A video store used to be the norm, with users having to leave their homes to pick out a handful of movies. A streaming site has no such considerations, instead letting customers view whatever they want. The latter is a textbook example of successful design thinking at work.

How Is Design Thinking Implemented?

There isn’t a set-in-stone approach to design thinking, especially when considering its wide-scale application across multiple industries. However, when it comes time to implement it in the design of a new product, it is typically segmented into distinct phases. One of the core concepts at the heart of it identifying and empathizing with a problem a customer is having.

From there, you can define the problem and begin designing solutions that best solve it. Returning to the video store vs. streaming site comparison, these are distinct products despite the same net result. However, the streaming site considers the user’s wants and needs, rather than offering just a basic service.

Further, this iterative approach is seen in how the streaming site continually updates its interface and user experience. There are distinct phases in how the streaming company handles each refresh of the streaming site, wherein the internal teams look at user needs, define them, create a solution, test said solution, and push the final design to production.

Industries That Benefit from Design Thinking

Now that we’ve got the creative juices flowing, it is time we take a closer look at some of the industries where design thinking is making a massive impact. This isn’t a new concept by any means, but we’re seeing the fruits of labor making a big splash in recent years.

It’s not wholly related to the likes of software or delivery systems either, despite my previous comparison. Placing the customer’s needs first isn’t an innovative or groundbreaking concept, but the way design thinking is ultimately executed is where it makes a true difference in the final deliverable.

In a way, it’s quite similar to how software development cycles in the modern era go. Iterative passes, constant prototyping and testing, and the final pass release a stable and effective deliverable. Contrary to this comparison, we’re also seeing industries embrace design thinking that has been set in their ways in previous years.

Fashion

Fashion isn’t an area that gets much headspace when it comes to design thinking, but it’s making a big splash regardless. Consider fashion firm Nordstrom’s Innovation Lab. This in-house team was tasked with implementing the principles of design thinking into the brand’s app. The Innovation Lab spent time at the flagship store and got hard to work at testing new concepts.

One area where user focus was noted was trying on sunglasses. Mobile apps at the time were uniquely terrible when it came to effectively displaying how a pair of sunglasses might look on a customer. Nordstrom’s Innovation Labs built paper prototypes, allowing customers to test out a new functionality.

This later came to fruition when the app implemented a way for users to see how sunglasses looked without being in the store. Further, they added functionality that allowed users to automatically get linked to the pair of sunglasses they enjoyed the most. Design thinking carved a new user experience out for the app, leading to increased sales and overall higher customer satisfaction when online shopping.

Finance

Finance is one area where it might not seem like the best fit for design thinking. However, Bank of America challenged this notion all the way back in 2010. Faced with the aftermath of an uncertain economy, Bank of America, with the help of design thinking firm IDEO, developed the round-up system.

The financial titan wagered that people were satisfied with the act of saving, regardless of the amount stashed into a savings account at the end of the year. As such, the round-up system made it so there was something saved after every transaction.

This innovative take on banking paid off in a major way. Bank of America walked away with over 10 million new customers after the introduction of the system, with nearly $2 billion saved thanks to some savvy applications of design thinking in how customers were approached.

Medical Technology

Going for any sort of medical scan can be daunting, especially for a child. General Electric has been one of the main pillars of development when it comes to likes of MRI and CT scanners. The empathic approach to design thinking is on full display with the solution developed by GE. How exactly do you create an imaging machine that children will relish being inside?

This massive challenge resulted in quite a bit of research by GE’s Imaging department. Finally, a solution was discovered: theming. By recontextualizing these imposing, yet vital machines, GE was able to land upon something that had children game to cooperate.

This empathic and iterative approach saw imaging machines themed after pirate adventures, outdoor camping, and underwater exploration. The results speak for themselves, however, as only around 10% of children needing imaging required sedation. This is an exponential decrease and leads to a lot of happy kids.

Hospitality

Food and drink is a fickle industry, prone to the whims of the state of the economy. As such, this is one area where design thinking can show the way forward. Starbucks has been one of the leading names in coffee, almost becoming shorthand for a hot cup of java for most of the United States. However, the company saw some holes in its approach to hospitality.

As such, they began taking on the tenets of design thinking, interviewing hundreds of customers to see what would have a greater impact on their user experience. The end result saw the interiors of Starbucks locations across the country changing.

Tables were replaced, the lighting was altered, and the overall ambiance of the stores was changed in such a way as to foster a welcoming and accepting atmosphere. Starbucks continues to enjoy high profits and the sort of cultural branding most organizations would die for, so something is working with how they’ve shown the power of design thinking in the hospitality sector.

Automotive

For most laypeople, design thinking focuses on aesthetics. This couldn’t be further from the truth, however, as demonstrated by how one company has embraced it. Tesla is one of the premier manufacturers of electric vehicles on the planet, but that doesn’t come down solely to the technology.

Beyond the sleek looks and cutting-edge tech behind the hood, there is quite a bit of design thinking at play. The user experience for the end customer is second to none, resulting in an automotive experience that fits the needs of the customers.

Functionality and user experience are one areas you don’t want to neglect when it comes to approaching design thinking. Tesla’s take on all aspects of design thinking has led to it becoming the top-valued automotive brand in the entire world.

Education

I can hear you asking exactly how design thinking works in education. When you get down to it, education’s primary goal isn’t congruent with the likes of design thinking. However, some colleges are going the extra mile. With so much of the user experience coming down to students interacting with faculty, it makes sense.

Take Austin Commerce College for example. The school went about emphatically approaching how it met students. Interviews resulted in quite a bit of data, showing different approaches at several levels of interaction.

The college was able to utilize design thinking to better tailor the experience of attending the school. This also impacted their marketing and course design, showing big waves in how the college experience is given for this particular school.

Software

I’ve talked a bit about apps today, and I likely will once more before it’s over. However, software isn’t just something you’re interacting with. There are developers behind every hit app, website, and so forth. As such, making their user experience more enjoyable can result in better overall results.

Consider WordPress, the leading framework for blogs, news, and so much more. It is modular by design, allowing users to use as much or as little code as necessary to get their work done. One of the big boons behind WordPress is plugins.

While the WordPress Foundation likely didn’t set out with design thinking in mind, it has accomplished just that. It has created a framework for delivering sites that are easy to use while remaining robust and powerful.

Entertainment

We’re returning once again to the likes of streaming, but not for the reasons you’d think. If you’re like me and many other folks, you might be a cable cutter. Design thinking has been paramount throughout the rise of streaming as the primary means of media consumption. However, few companies embody the ethos and approach completely like HBO.

HBO has been a premium cable channel for decades at this point, dating back to when cable got its start. The recent launch of HBO Max and the subsequent integration of its cable-exclusive channels into the likes of Philo and Sling is design thinking in motion.

HBO understood that the biggest point to getting new customers was the price of entry. By offering the content carte blanche, HBO was able to widen its market share, outpacing the likes of Showtime and Cinemax.

Other Useful Tools and Concepts

We’ve discussed design thinking ad nauseam today, but what about the other tools of the trade? You might want to consider some of the tools driving agility and adaptability in businesses today. These digital tools are easy to integrate, and allow any organization to roll with the punches.

Speaking of digital tools, learning how to pivot into a data-driven culture is crucial in today’s market. Data is the backbone of any major organization and is a driving factor behind decisions and choices made.

Conclusion

Design thinking is a robust approach and one that applies to any industry. While we can think of it as the purview of the digital domain, user experience isn’t solely apps. Learning some of the ways you can approach design thinking might see massive returns for your organization.

The image featured at the top of this post is ©Golden Dayz/Shutterstock.com.