Design thinking is an approach that uses design methods and a creative mindset to address problems in a way that meets user needs. It emphasizes abductive thinking to imagine new possibilities rather than being constrained by past evidence. Implementing design thinking in large companies can prove challenging due to issues like integrating it with existing processes, measuring its impact, and adapting it beyond product design. Benefits include increased user focus, innovation, and improved communication, but proving value and adapting the approach to different contexts can be difficult.