The document presents a detailed overview of design thinking as a methodology for problem-solving, particularly in the context of retail and the digital payments sector exemplified by Paytm. It highlights Paytm's evolution from a mobile recharge platform to a comprehensive fintech company, emphasizing its innovative approaches, key services, and the impact of external factors like India's demonetization on its growth. It also discusses the benefits and challenges of implementing design thinking in retail, focusing on aspects such as customer-centric solutions, adaptability, and the importance of collaboration.

1. WELCOME TO MY
PRESENTATION
DESIGN THINKING

2. Assignment - 1
◦ Faculty – Dr. Manu Priya Gaur
◦ Prepared by :- Akshit Maheshwari
◦ Team Members - Meet Nain, Mohit
◦ Course :- MBA

3. Introduction to Design thinking
Design thinking is a methodology that provides a solution-based approach to solving problems.
Design thinking refers to the set of cognitive, strategic and practical procedures used by
designers in the process of designing, and to the body of knowledge that has been developed
about how people reason when engaging with design problems.
Design thinking methods and strategies belong at every level of the design process.
With design thinking, teams have the freedom to generate ground-breaking solutions.

4. Introduction to Industry/Sector (PAYTM)
Paytm is a digital payments and financial services company based in India.
Paytm is the most commonly used payment app in India.
It allows you to pay at merchant locations using a phone number or QR Code.
Since its introduction in 2014, Paytm Wallet is the most widely used payment app in the country.
Paytm Wallet opened the Indian economy to digital banking.
It was founded in 2010 by Vijay Shekhar Sharma under One97 Communications.

5. More about PAYTM
◦ Name: Paytm (an acronym for "Pay Through Mobile")
◦ Founded: Paytm was founded in 2010 by Vijay
Shekhar Sharma.
◦ Headquarters: Noida, Uttar Pradesh, India.
◦ Industry: Financial Technology (Fintech), E-
commerce, Digital Payments.

6. Elements of DT in details
◦ Design thinking has become a powerful tool for retailers to understand their customers,
innovate, and ultimately, thrive in a competitive landscape. Its core principles, when applied
effectively, can transform the entire retail experience, from product conception to post-purchase
interactions.
◦ Here are some key elements of design thinking that hold significant value in the world of retail:
◦ Human
◦ Customer-centricity: At the heart of design thinking lies a deep understanding of human
needs, desires, and motivations. retailers who adopt this approach prioritize empathizing with their
customers, observing their behaviors, and uncovering their unspoken needs.
◦ Collaboration and co-creation: Design thinking encourages an inclusive approach, where
diverse stakeholders come together to share their perspectives and co-create solutions. This could
involve store associates, product designers, marketers, and even customers themselves, working
together to brainstorm ideas and test prototypes.

7. Elements of DT in details
◦ Product/ Service
◦ Holistic experience design: Retail isn’t just about selling products; it’s about crafting a compelling
narrative and holistic experience. Design thinking helps retailers move beyond individual products and
consider the entire customer journey, from pre-purchase anticipation to post-purchase engagement.
◦ Prototyping and iterative testing: Design thinking shuns perfectionism and embraces
experimentation. Instead of getting stuck in the planning stages, retailers are encouraged to build
quick, low-fidelity prototypes of their ideas and test them with real customers.

8. Reason Detail Thinking Matters in Retail
1.Customer-Centric Solutions: Prioritizes understanding and meeting customer needs.
2.Innovation and Differentiation: Encourages creative problem-solving for a competitive edge.
3.Adaptability to Trends: Enables quick adaptation to changing consumer preferences.
4.Enhanced User Experience: Focuses on creating positive and seamless interactions.
5.Efficient Problem Solving: Provides a structured yet flexible framework for addressing
challenges.
6.Cross-Functional Collaboration: Promotes collaboration across different business functions.
7.Rapid Prototyping: Allows quick testing and refinement of ideas.
8.Humanizing Technology: Integrates technology in ways that enhance the human experience.
9.Brand Loyalty: Creates emotionally resonant experiences for customer loyalty.
10.Agility and Flexibility: Fosters an agile mindset for quick adaptation to market shifts.

9. Benefits of Design Thinking in Retail
1. Customer-Centric Solutions: Understands and addresses customer needs, leading to products and services that resonate with the
target audience.
2. Innovation and Creativity: Encourages creative problem-solving, fostering a culture of innovation and differentiation in product
development and customer experiences.
3. Agile Problem-Solving: Provides a flexible and iterative approach, allowing retailers to adapt quickly to changing market conditions
and consumer preferences.
4. Enhanced User Experience: Focuses on creating seamless and enjoyable customer interactions, leading to improved satisfaction and
loyalty.
5. Cross-Functional Collaboration: Promotes collaboration among different departments, ensuring diverse perspectives contribute to
comprehensive solutions.
6. Efficient Resource Utilization: Reduces the risk of investing resources in ideas that may not resonate by emphasizing rapid
prototyping and testing.
7. Empathy and Understanding: Builds a deep understanding of customer emotions and experiences, fostering stronger connections
between the brand and its audience.
8. Adaptation to Trends: Enables retailers to stay ahead of market trends and proactively address emerging consumer demands.
9. Risk Mitigation: Minimizes the risk of product or service failure by validating ideas through testing and iteration.
10.Brand Loyalty and Trust: Creates emotionally resonant experiences, fostering brand loyalty and trust among customers.

10. Challenges of Design Thinking in Retail
1. Time and Resource Constraints: The iterative nature of Design Thinking, involving multiple rounds of prototyping and testing, can be time-consuming and may
require significant resources. In a fast-paced retail environment, time and resource constraints can impede the thorough application of the methodology.
2. Resistance to Change: Implementing Design Thinking often requires a cultural shift within the organization. Resistance to change from employees accustomed to
traditional processes may hinder the effective adoption of Design Thinking principles.
3. Balancing Creativity and Business Realities: While Design Thinking encourages creative ideation, it's essential to balance innovative ideas with practical
business considerations, such as cost, feasibility, and scalability.
4. Data Overload: Gathering and analyzing vast amounts of customer data is a fundamental aspect of Design Thinking. However, retailers may face challenges in
managing and interpreting the abundance of data, leading to potential analysis paralysis.
5. Inconsistent Customer Feedback: Obtaining consistent and representative customer feedback can be challenging. Different customer segments may provide
conflicting opinions, making it difficult to determine the most effective design solutions.
6. Integration with Existing Systems: Integrating new Design Thinking processes with existing systems and workflows can be challenging. Compatibility issues
may arise, particularly in large retail organizations with established structures.
7. Limited Understanding of Design Thinking: Lack of understanding or awareness of Design Thinking principles among employees and stakeholders may hinder
its effective implementation. Proper training and communication are essential to ensure a shared understanding.
8. Budgetary Constraints: Design Thinking may require investments in training, tools, and resources. Budgetary constraints could limit the extent to which
organizations can implement Design Thinking effectively.
9. Overemphasis on Technology: While technology is a valuable tool in Design Thinking, an overemphasis on digital solutions may neglect the importance of
physical retail spaces and face-to-face interactions, which are crucial in certain retail contexts.
10.Difficulty in Measuring Impact: Quantifying the impact of Design Thinking initiatives on key performance indicators can be challenging. Metrics for success may
not be immediately evident, making it difficult to assess the effectiveness of the approach.

11. SUCCESS
STORY OF
PAYTM

14. KEY OFFERINGS
1.Digital Wallet: Paytm started as a mobile wallet service, allowing users to store money digitally and make payments for
various services, including mobile recharge, utility bills, and online shopping.
2.Payments Bank: In 2017, Paytm received a license to operate as a Payments Bank from the Reserve Bank of India (RBI).
This allowed Paytm to offer a broader range of financial services, including savings and current accounts, fixed deposits, and
more.
3.Online Marketplace: Paytm operates an e-commerce platform where users can purchase a wide range of products,
including electronics, fashion, home goods, and more.
4.Ticket Booking: Paytm allows users to book tickets for various services, such as flights, trains, buses, and movies, providing
a one-stop platform for multiple needs.
5.Insurance and Financial Services: Paytm expanded its services to include insurance products, mutual funds, and other
financial instruments, making it a comprehensive financial services platform.
6.QR Code Payments: Paytm popularized the use of QR codes for payments, enabling merchants to accept digital payments
easily.
7.Digital Lending: Paytm ventured into digital lending, providing small-ticket loans and other financial products.

15. KEY FEATURES AND INNOVATION
• Cashback and Discounts: Paytm has been known for its cashback offers and
discounts, attracting users to make digital transactions on its platform.
• User-Friendly App: The Paytm app provides a user-friendly interface, making it
accessible to a wide range of users.
• Partnerships and Integrations: Paytm has formed strategic partnerships with
various merchants, service providers, and banks to expand its service offerings.
• UPI (Unified Payments Interface): Paytm facilitates payments through the UPI
system, allowing users to link their bank accounts for seamless transactions.

16. Is PAYTM a Success
or Failure ?
◦ The success of Paytm has come to symbolize the
development of the Indian e-wallet start-up ecosystem
that Mr. Sharma had envisioned.
◦ Along with supporting UPI payments and online
shopping, the Paytm Payments bank is the first
platform to provide a zero-balance account option
◦ Paytm is working with the Government of India
Campaign i.e.; “THE CASHLESS INDIA”

18. Core Systems of PAYTM
• Wallet Engine: This system manages user accounts, stores wallet balances, and processes transactions.
• Payment Gateway: This system connects Paytm with various banks and financial institutions to facilitate online
and offline payments.
• UPI Engine: This system handles UPI-based transactions, including user authentication, bank account linking, and
fund transfers.
• Risk Management System: This system analyzes user behavior and transactions to detect and prevent
fraudulent activities.
• Data Lake: This system stores massive amounts of user data and transaction logs for analysis and
personalization.

19. Technical components of PAYTM
• APIs: These interfaces allow third-party developers to integrate Paytm features into their apps and websites.
• Cloud Infrastructure: Paytm utilizes cloud platforms like Amazon Web Services and Google Cloud Platform to
scale its infrastructure and ensure high availability.
• Microservices Architecture: This architecture breaks down Paytm's functionalities into smaller, independent
services that are easier to develop and manage.
• Security Measures: Paytm implements several security measures, including encryption, intrusion detection, and
data loss prevention, to protect user information.

20. Overall workflow of PAYTM
1.User initiates a transaction (e.g., sending money, paying a bill).
2.Request is routed to the relevant system (wallet engine, payment gateway, UPI engine).
3.System verifies user authentication and authorization.
4.Transaction details are communicated with the bank or financial institution.
5.Funds are transferred between accounts.
6.User receives confirmation of the transaction.
7.Transaction data is logged and analyzed for future use.

21. Additional Technical Aspects of PAYTM
• Machine Learning: Paytm utilizes advanced machine learning algorithms to
personalize user experiences, detect fraud, and optimize operations.
• Big Data Analytics: Paytm analyzes massive amounts of user data to gain insights
into customer behavior and trends, which helps them improve their services and target
marketing campaigns.
• Blockchain Technology: Paytm is exploring the use of blockchain technology to
enhance security and transparency in its transactions.

22. History of PAYTM
◦ Paytm, founded in 2010 by Vijay Shekhar Sharma, began as a
mobile recharge and bill payment platform. It introduced a mobile
wallet in 2014, attracting significant funding from Alibaba. The
2016 demonetization in India boosted its growth. Paytm
diversified into e-commerce, travel bookings, and financial
services. In 2017, it launched a payments bank. Paytm went
public with its IPO in 2021, marking a significant milestone in its
evolution as a leading Indian digital payments and financial
services platform.

23. Success story of PAYTM
• Paytm's success story is marked by its evolution from a mobile recharge and bill payment platform to becoming
one of India's leading digital payment and financial services providers. Here are key elements of Paytm's success
story:
1.Innovative Visionary Founder:
Founded in 2000 by Vijay Shekhar Sharma, Paytm's success is attributed to its visionary founder.
Sharma recognized the potential of digital payments in a country where mobile phone penetration was
rapidly increasing.
2.Early Focus on Mobile Recharge:
Paytm initially gained traction by focusing on mobile recharges and bill payments. It tapped into the
growing need for convenient and accessible ways to handle routine transactions.
3.Introduction of Mobile Wallet:
Paytm was quick to adapt to market demands by introducing its mobile wallet in 2014. This move
allowed users to store money digitally and make transactions beyond recharges, laying the foundation
for its future expansion.

24. Success story of PAYTM
4. Strategic Partnerships and Funding:
Paytm secured crucial partnerships, including investments from Alibaba and its affiliate Ant Financial. These
partnerships not only brought in significant funding but also provided access to valuable expertise and
resources.
5. Demonetization Boost (2016):
The Indian government's demonetization move in 2016 led to a surge in digital payments, benefiting Paytm
significantly. The platform capitalized on this opportunity to acquire a large user base and establish itself as a
go-to solution for digital transactions.
6. Diversification of Services:
Paytm strategically diversified its services beyond mobile recharges. It ventured into e-commerce, travel
bookings, and financial services, offering users a comprehensive platform for various needs.
7. Payments Bank Launch (2017):
Paytm became one of the first entities to launch a payments bank in India in 2017. This allowed it to offer a
range of banking services, further expanding its role in users' financial lives.

25. Success story of PAYTM
8. User-Friendly Interface and Accessibility:
Paytm's success is also attributed to its user-friendly interface and accessibility. The platform made
digital transactions easy and convenient for users, contributing to its widespread adoption.
9. Adoption of Technology:
Paytm embraced technological advancements, including the use of QR codes for transactions. This
tech-savvy approach aligned with the evolving digital landscape and contributed to Paytm's success.
10. Initial Public Offering (IPO):
Paytm's IPO in 2021 marked a significant milestone in its journey. While the listing faced challenges, the
company's move to go public highlighted its confidence in its future growth and solidified its position as a
major player in the Indian market.

26. GROWTH
OF
PAYTM
PER
QUARTER

27. Last 5 year
performance
of PAYTM
2018: A Year of Expansion and
Diversification
•Acquisitions: Paytm went on an acquisition
spree, snapping up companies like Ticket New (online
ticketing), Night Stay (hotel booking), Cube26 (Android OS
customization), and Balance Tech (smart savings). This
move diversified its offerings and laid the groundwork for
future growth.
•Payments Bank Launch: Paytm Payments Bank, India's
first digital bank, was launched. This strategic move
allowed Paytm to offer zero-balance accounts, mobile
banking, and other financial services, expanding its reach
beyond mobile wallets.
•UPI Integration: Recognizing the potential of UPI (Unified
Payments Interface), Paytm became an early
adopter, integrating it into its platform. This made digital
payments seamless and interoperable across various
apps, further boosting adoption.

28. Last 5 year performance of PAYTM
◦ 2019-2020: Riding the Demonetization Wave
• Demonetization Windfall: The Indian government's demonetization drive in 2016 proved to be a turning
point. With cash in short supply, Paytm witnessed explosive growth as users turned to digital
payments. Transactions skyrocketed, and Paytm's user base swelled to over 200 million.
• Financial Services Push: Paytm leveraged its massive user base to foray deeper into financial services. It
launched wealth management products, micro-loans, and insurance offerings, transforming itself into a one-
stop fintech platform.
• Offline Expansion: Recognizing the importance of physical touchpoints, Paytm launched its own network
of Point-of-Sale (PoS) devices. This enabled offline merchants to accept digital payments, further boosting
adoption and transaction volumes.

29. Last 5 year performance of PAYTM
◦ 2021-2023: Navigating Challenges and Scaling New Heights
• IPO and Market Volatility: Paytm's much-anticipated IPO in 2021, while historic, was met with market
volatility and a decline in share price. However, the company remained focused on long-term growth and
continued to invest in innovation.
• E-commerce Entry: Paytm Mall, its e-commerce venture, was rebranded as Paytm Commerce. This move
aimed to leverage Paytm's vast user base and payment infrastructure to compete with established players
like Amazon and Flipkart.
• Profitability Focus: Shifting gears towards profitability, Paytm streamlined its operations, reduced
costs, and focused on core revenue streams like payments and financial services. This resulted in a
significant improvement in financial performance.
• Super App Ambitions: Paytm's vision evolved towards becoming a "super app," offering everything from
payments and banking to shopping, travel, and entertainment. This ambitious goal keeps the company at
the forefront of India's digital revolution.