What is Design Thinking (DT)?

Design thinking is a non-linear, iterative process that teams use to understand users,
challenge assumptions, redefine problems and create innovative solutions to prototype and
test.

* Definition
“Design thinking is a human-centered approach to innovation that draws
from the designer's toolkit to integrate the needs of people, the possibilities
of technology, and the requirements for business success.”
— Tim Brown

The End Goal of Design Thinking: Be Desirable, Feasible and Viable

Desirability: Meet People’s Needs

The design thinking process starts by looking at the needs, dreams and behaviours of
people—the end users. The team listens with empathy to understand what people want, not
what the organization thinks they want or need. The team then thinks about solutions to
satisfy these needs from the end user’s point of view.
Feasibility: Be Technologically Possible
Once the team identifies one or more solutions, they determine whether the organization
can implement them. In theory, any solution is feasible if the organization has infinite
resources and time to develop the solution. However, given the team’s current (or future
resources), the team evaluates if the solution is worth pursuing. The team may iterate on the
solution to make it more feasible or plan to increase its resources (say, hire more people or
acquire specialized machinery).

Viability: Generate Profits

A desirable and technically feasible product isn’t enough. The organization must be able to
generate revenues and profits from the solution. The viability lens is essential not only for
commercial organizations but also for non-profits.
Traditionally, companies begin with feasibility or viability and then try to find a problem to fit
the solution and push it to the market. Design thinking reverses this process and advocates
that teams begin with desirability and bring in the other two lenses later.

Convergent vs divergent thinking: what’s the difference?

Convergent and divergent thinking are opposite forces that call for very different mindsets.
While it’s impossible—and contradictory—to engage in both kinds of thinking at the same
time, using both types of thinking throughout the problem-solving process will enhance the
overall outcome. Let’s take a closer look at the differences between divergent thinking vs
convergent thinking.
What is divergent thinking?
Divergent thinking involves generating as much information and as many ideas and solutions
as possible—think quantity over quality. This kind of thinking is all about gathering
information, coming up with ideas, and letting creativity run wild. It’s a free-flowing form of
thinking where no idea is off limits and the goal is to generate multiple potential paths
forward.
Divergent thinking is a creative process, but that doesn’t mean you should forgo a
structured, thoughtful session for your brainstorming. When we host brainstorms, we put
plenty of thought into the prompts, activities, and structure of the session in order
to brainstorm better solutions.
Divergent thinking techniques
As mentioned above, there are many different techniques you can use to stimulate creativity
and divergent thinking. It’s important to find the ones that work best for you—everyone is
different and it’s okay to try something, realize it doesn’t work, and move onto another
technique. As a user experience company, we utilize many divergent thinking techniques:
• Freewriting: this technique is helpful when you need to focus on one topic. Choose
an allotted amount of time and start writing, don’t worry about revising or
proofreading just let the thoughts spill onto the page (or screen). This technique
allows a lot of thought generation without blockers that you can come back to,
restructure, and organize.

• Brainstorming: this common group-problem solving technique involves contribution

of ideas from multiple people and discussion around the ideas provided. Encouraging
all to participate and not be afraid of right or wrong answers can help improve the
session and divergent thinking.

• Nominal Group Technique: this is a form of structured brainstorming that starts with
individuals silently generating ideas, then moves through sharing and discussion of
those ideas. The silent generation of ideas ensures everyone in the room has an
equal voice, rather than just the most gregarious.
• Keeping a journal: a great technique that allows you to record whatever
spontaneous thought comes to your mind. Writing down thoughts when they
happen allows you to revisit them later. Our designers enjoy journaling, check out
how one of our experience designers used a work journal.
• Scenario role play: a technique that involves providing a prompt that users put
themselves into and act out the scenario using their imagination and putting
themselves into the shoes of the characters (users of a product).
• Mind mapping: This visual technique involves turning brainstormed ideas into a
visual map that shows the relations of the brainstorming. A common type of
mapping our researchers enjoy—affinity mapping, allows topics to be synthesized
and organized to work through later.

What is convergent thinking?

Divergent and convergent thinking are on opposite sides of the same coin. Where divergent
thinking is about discovering, convergent thinking is about defining. You’ve gathered plenty
of information and ideas, now it’s time to focus on systematically synthesizing, organizing,
and categorizing it all to arrive at a well-defined solution.

The goal of convergent thinking is to take a structured approach to arriving at a clear

solution. During this stage, you’ll analyze the inputs from the divergent-thinking phase to
determine an outcome or actionable next step—it’s a decision-making moment defined by
logical thinking, analyzing, and evaluating.
Convergent thinking techniques
So how do you get started? There are many convergent technique that can be used and
below are a few that our teams use regularly:

• Grouping: In order to understand information that comes from a divergent thinking

exercise we need to group together similar ideas and hypotheses. This is when
mapping comes into play. We like to use tools like FigJam and Miro (or if you’re in
person, a good old whiteboard and post-its) to start organizing similar ideas into
categories. This helps us take a large amount of data or ideas and narrow them down
to a more succinct data reference.
• Prioritizing: From there, it’s important to decide which concepts are crucial and
which can come a little later on (if at all). When thinking about our product design
mapping, that might mean we prioritize features around mobile experience if the
application is primarily mobile, and we place any desktop capabilities a little lower on
the priority list.
• Dot-voting: This technique allows each participant to join in a prioritization activity
regardless of their participation style or preferences. Individuals are given a set
number of dots and apply them to the choices in a list.
• Filtering: Importantly, we can’t do it all. Applying filtering convergent techniques
allows us to eliminate ideas or concepts that we won’t take action on (maybe
because of time, lift, or importance). Ultimately, we can’t review copious amounts of
data or complete every feature that comes to the table, filtering helps us remove
those unreachable ideas and focus where we need to.

What is Large Firm Innovation and What is Startup Innovation?

Large Firm Innovation refers to the process of innovation within established, typically large-
scale corporations. These firms have significant resources at their disposal, including
dedicated research and development (R&D) departments, substantial financial assets, and a
broad customer base. The focus in Large Firm Innovation is often on incremental
improvements in products or processes, risk management, and sustaining their position in the
market. Such firms may innovate to enhance their existing product lines, improve operational
efficiency, or respond to competitive pressures. The innovation process in large firms can be
slower due to their size, complex organizational structures, and the need to align innovation
with the existing corporate strategy and market expectations.

What is Co-Creation?
In the early 2000s, C.K. Prahalad and Venkat Ramaswamy wrote a Harvard Business
Review article with the title “Co-Opting Customer Competence”. In this article, they
argued that companies should involve customers in the value creation process and it
was the same article where they first coined the term “Co-Creation”. Since then, the
 concept of co-creation has become popular and many businesses adopted it to boost
their innovation.
Simply put, co-creation is an innovation technique in which companies partner with
customers, suppliers, or other stakeholders to co-develop and co-create value. Co-
creation is perfect when it comes to enhancing customer engagement and
relationships with stakeholders by directly involving them in the company’s value
creation and product development processes.

What is Open Innovation?

Open innovation is a term coined by Henry Chesbrough in 2003 to describe a process
in which organizations collaborate with external stakeholders to create new ideas,
products, or services. Based on the notion that “most of the smart people don’t work
for you”, Chesbrough believed that interacting with external talents can enhance an
organization’s innovative capability.

# The 7 Sources Of Innovative Opportunity

The 7 sources of innovative opportunity were listed by Peter Drucker in his book “Innovation
and Entrepreneurship. If you’re unaware, Peter Drucker is considered one of the truly great
management consultants. He wrote 39 books and is considered a seminal thinking in the
field of management.
[Link] Unexpected
The market place is the number one area to look for opportunities. A good manager should
be constantly studying the market. Is a particular product or service in greater or lesser
demand than anticipated? Why? Is there a way we can exploit this unexpected success?
What has to happen if we want to convert this success into an opportunity?
[Link] Incongruity
There is a discrepancy between what is and what should be. This is a key to developing
wildly successful businesses but it’s tricky. Facebook is a company that nailed it. Prior to the
social network’s prolific rise Myspace was the dominant player, but it had its downfalls.
Facebook wisely noted what Myspace was vs. what should be and built that platform. The
end result? A company that just had an IPO versus. one that has fallen off considerably.

One of the best places to look for incongruity is in your own customers. Their complaints
and unmet wants are all the hints you need.
[Link] Need
Process need involves identifying your company’s process weak spots and correcting or
redesigning them. This is a task oriented solution meaning that the source of innovation
comes from within your existing capabilities and ways of doing business – not the market.
An example might be a restaurant that identifies that people wait too long for their entrees
and so decides to hire another chef to speed up creation times.
Essentially your company will want to look for all weak links and eliminate them.

[Link] and Market Structure Change

Your industry and the market are in continual flux. Regulations change and some product
lines expand while others shrink. Firms should continually be on the watch for this.
One example is deregulation. When a previously regulated industry becomes open there is
historical precedence for companies that enter early to be very successful. Other things to
watch out for are the convergence of multiple technologies and structural problems that
occur from time to time (often immediately following an industry boom).
[Link]
We constantly see changes occur in populations, income levels, human capital (education)
and age ranges. Smart firms are constantly paying attention to this.
When it comes to the baby boomers businesses have been following them constantly as
they got older. At present they are one of the largest as well as the most affluent
demographic groups with high levels of disposable income.

Combining demographic data with segmentation and targeting is a powerful method of

accurately meeting a target market’s desires.
[Link] in Perception, Meaning, and Mood
Over time populations and people change. The way they view life changes, where they take
their meaning from, and how they feel about things also is modified over time and smart
companies must pay attention to this in order to capitalize (and avoid becoming forgotten, a
relic of ages past).
Here are two really good examples. First is a principle called “downaging” which refers to
people who look at 50 as being 40. Industries have responded to this, most notably in the
cosmetic and personal care industry which provides plenty of solutions to help these people
look younger. Full industries are creeping up that make people feel younger. Have you
spotted any lately?
Religion is another example. Across the world we’ve seen Islam and atheism rise. Companies
should adapt as overall meaning changes in culture.
[Link] Knowledge
As the speed of technological revolution increases there will be an ever increasing number
of opportunities that open up. The internet has been the most notable one in the last couple
decades but there have been a plethora of other industries and opportunities pop up as a
result of this technological revolution.
New knowledge is about more than just technology though, it’s about finding better ways of
doing things and improving processes. Your company should look to this new knowledge for
ways it can improve incrementally.

Intel does this constantly and it’s a major part of why they’re the leading processor
manufacturer today. Constantly paying attention to the latest in both academic research as
well as investing heavily in their own R&D, the company has managed to find continual
sources of innovation, driving its success.

UNIT-2
Concept of Entrepreneurship:
The word “entrepreneur” is derived from the French verb enterprendre, which means ‘to
undertake’. This refers to those who “undertake” the risk of new enterprises. An enterprise
is created by an entrepreneur. The process of creation is called “entrepreneurship”.

Entrepreneurship is a process of actions of an entrepreneur who is a person always in search

of something new and exploits such ideas into gainful opportunities by accepting the risk
and uncertainty with the enterprise.

Who is Entrepreneurs?
“An entrepreneur is an individual who identifies a need in the marketplace and works to
fulfill it. The term, historically, has been applied to an individual who starts a business,
seeing the ability to fulfill that identified need as an economic opportunity”.

Intrapreneurship?
Intrapreneurship can be defined as the practice of fostering an entrepreneurial mindset and
behaviour among employees within an existing organization. In essence, it involves
empowering individuals to take ownership of their projects, pursue innovative ideas, and
drive positive change from within the company’s framework.

What Is Intrapreneur?
An intrapreneur is an employee with entrepreneurial skills and is responsible for developing
innovative ideas, products, or services for their company. Their goal is to enhance the
sustainability of the business and help it stay ahead in the competition.
Characteristics of Successful Entrepreneurs
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other
organizational leaders: a sense of curiosity. An entrepreneur's ability to remain curious
allows them to continuously seek new opportunities. Rather than settling for what they
think they know, entrepreneurs ask challenging questions and explore different avenues.

This is validated in the online course Entrepreneurship Essentials, where entrepreneurship is

described as a “process of discovery." Without curiosity, entrepreneurs can’t achieve their
main objective: discovering new opportunities.
The drive they have to continuously ask questions and challenge the status quo can lead
them to valuable discoveries easily overlooked by other business professionals.
2. Willingness to Experiment
Along with curiosity, entrepreneurs require an understanding of structured experimentation,
such as design thinking. With each new opportunity, an entrepreneur must run tests to
determine if it’s worthwhile to pursue.
For example, if you have an idea for a new product or service that fulfills an underserved
demand, you’ll have to ensure customers are willing to pay for it and it meets their needs. To
do so, you’ll need to conduct thorough market research and run meaningful tests to validate
your idea and determine its potential.

3. Adaptability
Entrepreneurship is an iterative process, and new challenges and opportunities present
themselves at every turn. It’s nearly impossible to be prepared for every scenario, but
successful business leaders must be adaptable.

This is especially true for entrepreneurs who need to evaluate situations and remain flexible
to ensure their business keeps moving forward, no matter what unexpected changes occur.
4. Decisiveness
To be successful, an entrepreneur has to make difficult decisions and stand by them. As a
leader, they’re responsible for guiding the trajectory of their business, including every aspect
from funding and strategy to resource allocation.
Being decisive doesn’t always mean being correct. Entrepreneurs need the confidence to
make challenging decisions and see them through to the end. If the outcome turns out to be
less than favorable, the decision to take corrective action is just as important.
5. Self-Awareness
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their
abilities.

In many cases, it’s the entrepreneurial team, rather than an individual, that drives a business
venture toward success. When starting your own business, it’s critical to surround yourself
with teammates who have complementary talents and contribute to a common goal.
6. Risk Tolerance

Entrepreneurship is often associated with risk. While it’s true that launching a venture
requires an entrepreneur to take risks, they also need to take steps to minimize it.
While many things can go wrong when launching a new venture, many things can go right.
According to Entrepreneurship Essentials, entrepreneurs who actively manage the
relationship between risk and reward position their companies to “benefit from the upside.”
Successful entrepreneurs are comfortable with encountering some level of risk to reap the
rewards of their efforts; however, their risk tolerance is tightly related to their efforts to
mitigate it.
7. Comfort with Failure

In addition to risk-management and calculated decision-making, entrepreneurship requires a

certain level of comfort with failure.
“Of startups that have more than one employee, 70 percent survive at least two years, half
last at least five years, and a quarter last 15 years,” says Harvard Business School Professor
William Sahlman in Entrepreneurship Essentials. “Even then, only a small fraction of the
survivors get to be significant employers.”
8. Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it
doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and
grow.
Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some
ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to
learn from mistakes, ask questions, and persist until they reach their goal.
9. Innovative Thinking
Innovation often goes hand-in-hand with entrepreneurship. While innovation in business can
be defined as an idea that’s both novel and useful, it doesn’t always involve creating an
entirely new product or service. Some of the most successful startups have taken existing
products or services and drastically improved them to meet the changing needs of the
market.
Although innovation doesn’t come naturally to every entrepreneur, it’s a type of strategic
mindset that can be cultivated. By developing your problem-solving skills, you’ll be well-
equipped to spot innovative opportunities and position your venture for success.

10. Long-Term Focus

Most people associate entrepreneurship with starting a business. While the early stages of
launching a venture, such as securing funding, are critical to its success, the process doesn’t
end once the business is operational.

According to Entrepreneurship Essentials, “it’s easy to start a business, but hard to grow a
sustainable and substantial one. Some of the greatest opportunities in history were
discovered well after a venture launched.”
Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the process
from beginning to end to ensure long-term success.

Types of Entrepreneurs:
Depending upon the level of willingness to create innovative ideas, there can be the
following types of entrepreneurs:
1. Innovative entrepreneurs:
These entrepreneurs have the ability to think newer, better and more economical ideas of
business organisation and management. They are the business leaders and contributors to
the economic development of a country.
Inventions like the introduction of a small car ‘Nano’ by Ratan Tata, organised retailing by
Kishore Biyani, making mobile phones available to the common may by Anil Ambani are the
works of innovative entrepreneurs.
2. Imitating entrepreneurs:
These entrepreneurs are people who follow the path shown by innovative entrepreneurs.
They imitate innovative entrepreneurs because the environment in which they operate is
such that it does not permit them to have creative and innovative ideas on their own.
Such entrepreneurs are found in countries and situations marked with weak industrial and
institutional base which creates difficulties in initiating innovative ideas.
In our country also, a large number of such entrepreneurs are found in every field of
business activity and they fulfill their need for achievement by imitating the ideas introduced
by innovative entrepreneurs.
Development of small shopping complexes is the work of imitating entrepreneurs. All the
small car manufacturers now are the imitating entrepreneurs.
3. Fabian entrepreneurs:

The dictionary meaning of the term ‘fabian’ is ‘a person seeking victory by delay rather than
by a decisive battle’. Fabian entrepreneurs are those individuals who do not show initiative
in visualising and implementing new ideas and innovations wait for some development
which would motivate them to initiate unless there is an imminent threat to their very
existence.

4. Drone entrepreneurs:
The dictionary meaning of the term ‘drone’ is ‘a person who lives on the labor of others’.
Drone entrepreneurs are those individuals who are satisfied with the existing mode and
speed of business activity and show no inclination in gaining market leadership. In other
words, drone entrepreneurs are die-hard conservatives and even ready to suffer the loss of
business.
5. Social Entrepreneur:
Social entrepreneurs drive social innovation and transformation in various fields including
education, health, human rights, workers’ rights, environmen and enterprise development.
They undertake poverty alleviation objectives with the zeal of an entrepreneur, business
practices and dare to overcome traditional practices and to innovate. Dr Mohammed Yunus
of Bangladesh who started Gramin Bank is a case of social entrepreneur.