Design Thinking brings two points of reference into decision-making to better navigate through complexity.

1. Design Thinking in Business
Why This “New” Approach
Improves Decision-Making
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2. Design Thinking in Business
Just as ships use two
points of reference to
navigate hazardous
waters…
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3. Design Thinking in Business
Companies benefit
Value to Customer
from using two points
of reference in making
business decisions
Benefit to Company
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4. Design Thinking in Business
Yet companies often
Value to Customer
rely on a single point of
reference in making
business decisions
Benefit to Company
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5. Design Thinking in Business
Decisions based mostly
on what benefits the
company, exposes it to
more risk than
necessary
www.satopartners.com © 2009 Sato+Partners, LLC

6. Design Thinking in Business
So how does “Design
Value to Customer
Thinking” create this
second point of
reference?
Benefit to Company
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7. Design Thinking Approach
We’ll use this frame.
Reflect
It is…
Frameworks Principles • Iterative
Know Intent Make
• Non-linear
Discoveries Solutions
• Multidisciplinary
• Collaborative
• Adaptable
Act • Scalable
Source: Charles Owen Design Process
Newsletter, Institute of Design, 1993
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8. Design Thinking Approach
Reflect
Observing customers’
Frameworks Principles actions in their settings
Know Intent Make reveal:
Discoveries Solutions • disconnects
• work-arounds
See What’s
Missing • break-downs
Act
Example Customers say they love the
packaging just as it is, yet when observed,
reach for a tool to open it.
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9. Design Thinking Approach
Reflect
Fresh
Insights
Fresh insights arise
Frameworks Principles from combining:
Know Intent Make
• Discoveries
Discoveries Solutions • Business needs
• Technical limitations
See What’s
Missing
Act
Example Parents “manage-by-exception”, yet
scheduling programs on the market today are
optimized for “management-by-routine”
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10. Design Thinking Approach
Reflect
Fresh New Value
Insights Defined
Establishing principles
Frameworks Principles
ensures:
Know Intent Make
• Value to Customer
Discoveries Solutions
• Benefit to Company
will both be designed
See What’s for, and delivered.
Missing
Act
Examples  Make waiting a constructive part of
the customer’s experience.
 Reduce physical toll on customers.
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11. Design Thinking Approach
Fresh
Reflect
New Value
Brainstorming,
Insights Defined
prioritizing solutions,
Frameworks Principles
then prototyping with
customers results in:
Know Intent Make
Discoveries Solutions
• Better decisions
• Internal alignment
See What’s Unique & • Lower risk
Missing
Act
Profitable
• Value customers will
Examples  Office space rented out by the desk. pay for
 Vegawatt: Powers restaurants with
their kitchen grease
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12. Conventional Approach
Reflect
Fresh New Value
Insights Defined
Companies typically
Frameworks Principles
do part of the lower
Know Intent Make
half reliably, but lack
Discoveries Solutions
systematic, repeatable
ways to do the upper
Ask Company
Customers Responds
half.
Act
Company “like a fast food clerk”
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13. Conventional Approach
Reflect
Fresh New Value
Insights Defined
Symptoms?
Frameworks Principles
• Undifferentiated
Know Intent Make
Offerings
Discoveries Solutions
• Gadgets
• Feature Creep
Ask Company
Customers Responds
• Portfolio Bloat
Act
Company “like a fast food clerk”
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14. Design Thinking Approach
A “Design Thinking”
approach provides the
second point-of-
Value to Customer
reference for making
better decisions that:
• Reduce risk
• Yields better
Benefit to Company business results
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15. For More on Design Thinking in Business
See:
www.satopartners.com
Contact:
Steve Sato
Principal
steve@satopartners.com
360.335.3351 o
360.910.1530 m
www.satopartners.com © 2009 Sato+Partners, LLC

16. Steve Sato
Principal
steve@satopartners.com
360.335.3351 o
360.910.1530 m
www.satopartners.com