http://www.ted.com/talks/view/id/646

Building competitive advantage in our increasingly fast-moving, information-rich world of global access is not easy. For a while, technology was the answer. Engineers developed new technologies, whether a chip or chemistry, that did something wonderful, at least in the eyes of those who came up with it, and their companies rushed it to market and, often, to initial success. But technology alone is not enough. Take, for example, an electronic product laden with features, most of which are never used by the customer. By comparison, today’s biggest winners, such as the Palm V or the iPod, went beyond the raw technology; they used design to simplify technology, delivering it to consumers in a way that’s meaningful, engaging, and easy to use. The exceptional sales results speak for themselves, in these cases as well:

* OXO is the leader in the commodity marketplace of kitchen utensils because its commitment to the design process led to products that literally redefined this category.

* Whirlpool went from no market share in the front-end loading washer/dryer category to a 40% market share in one year through an extensive user-research and design effort that redefined the category and the money that could be made in it.

* Lenovo, which acquired IBM’s PC division, already had the largest market share of computers in China, in part because of its use of design to truly address the needs of the Chinese market.

* Proctor & Gamble continues to build new billion-dollar brands by using design to redefine existing technology. This effort is led by a vice president who reports to the chairman and CEO and whose mission is to “build design into the DNA of P&G.”

As these examples suggest, successful products and services result from joint efforts among marketing, engineering, research, design, and other disciplines. Design is intrinsically linked to a company’s ability to meet its business goals and achieve its mission. Done well, design can become a strategic resource to produce the kind of innovative customer experience that strengthens global brands. Yet design remains the most underutilized and misunderstood of all of the essential resources to achieve innovation and brand leadership.

What is design?

Let’s start with the basics. Just what is design? Design is a user-focused, prototype-based development process that simplifies complexity and achieves success through collaboration.

Design is user-focused, not just because it incorporates research on what customers say they want, but because it is grounded in observing potential users in their own environments and from that observation developing ideas that will improve their lives and provide an enjoyable experience.

Forty years ago, Thomas Watson Jr., chairman and chief executive of IBM during its most explosive period of growth, famously proclaimed, “Good design is good business.” Corporate America, however, barely looked up from its work. Except for a few mavericks such as IBM, Kodak, and Xerox, it would take years for design to move in from the fringes of business. But today, companies are creating products and services that delight customers with the grace of their fit and finish, and their exacting performance. Design, in short, is becoming an ever more important engine of corporate profit: It’s no longer enough simply to outperform the competition; to thrive in a world of ceaseless and rapid change, businesspeople have to outimagine the competition as well. They must begin to think—to become—more like designers.

succinctly outline how design processes differ from traditional business processes.

So what is Design Thinking?

* It’s a human-centered approach to innovation.
Being human-centered is unique to design, Designers think about people first, then the business second. The opposite is true for most companies.