The benefits of applying a design-thinking mindset can be seen throughout the entire cycle, from problem definition to scaling a solution. Michael Lewrick and Larry Leifer outline the Problem to Growth and Scale Framework
On the journey from problem recognition to the scaling of a solution, different approaches and tools are helpful. The process begins with a problem that is often poorly defined and understood. Design thinking, research and co-creation can help establish the problem/solution fit as well as the market/solution fit.
The ‘Problem to Growth and Scale Framework’ is one of the central tools outlined in The Design Thinking Playbook and helps us to put different approaches in the right sequence.
Although the renowned design-thinking mindset is still the vital baseline for all our activities, it often needs some adjusting when it comes to designing digital solutions to capture the current essence of creating digital products and services. In addition, changing customer and market needs also demand an evolutionary step and this, in turn, drives the evolution of design thinking. Customer expectations of useability and automation are increasing and products should meet their personal needs.
Realising new market opportunities in the context of a large enterprise can be very challenging in view of two major disruptive forces – new technologies (for example AI and blockchain) and innovative business models or re-designed business ecosystems. Due to low entry barriers, the number of disruptive players is constantly increasing. This presents great opportunities for entrepreneurs to kick-start new ideas.
However, startups and mature companies alike should accept that new systems and business models create unique value propositions more and more frequently, with a product-service-offering combination at the desired place and time. In the future, the customer will also ask for greater sovereignty over their personal data and this might be realised in decentralised network structures, such as blockchain.
This underlines the value of thinking in terms of systems, and makes the combination of systems thinking and design thinking a core capability. For all digital projects and endeavours, it is therefore good for project teams to keep four simple rules in mind: iterate, collaborate, fail, and
enjoy ambiguity.
A framework: from problem to growth
The Problem to Growth and Scale Framework combines different approaches that build on each other, allowing different mindsets for each specific challenge from a problem statement to reach a scalable solution. The steps are useful for anyone, be they an entrepreneur or an innovator at a large organisation. The journey begins with identifying a real-world problem that needs to be solved and the ambition to monetise in the long term.
The framework’s emphasis is on the process from problem definition through to the methods and tools used in design thinking, lean startup and lean/agile development (for example Scrum) and MVPs (minimum viable products). It then continues on to the design of a business ecosystem, in the form of an MVE (minimum viable ecosystem) before growth and scale become the focus for an organisation.
There are six important steps on the way to a scaling company in the Problem to Growth and Scale Framework:
Step 1: Design thinking
Step 2: Research
Step 3: Co-creation
Step 4: Lean startup
Step 5: Business ecosystem design, and agile product and customer development
Step 6: Scale
Step 1: Design thinking – what’s important?
• Start with design thinking and identify your potential users, customers
and stakeholders.
• Recognise true customer needs and find elegant and simple solutions.
• Determine a first vision of the value proposition for potential users
and customers.
• Use systems thinking and data analytics to understand complex issues and to gain deeper insights.
Step 2: Research – how can ‘research’ support the process of obtaining market and customer data?
• Understand the problem and the situation holistically.
• Use market research and other analytical approaches to assess the problem and the situation quantitatively.
• Validate and supplement your findings.
Step 3: Co-creation – how does this benefit each phase?
• Integrates additional customers and users as well as lead users in your process.
• Allows teams to get as much help as necessary from the outside, and to search for further solutions and more radical ideas.
• Allows people to work together across departmental and company boundaries.
• Enables teams to develop their first MVPs and build trust with partners and customers.
Step 4: Lean startup – how does this support the efficient development of your offering?
• Use the lean startup approach to develop your offer with only a small amount of capital.
• Structure the solution step by step. With iterations taking place quickly, the product and business model are steadily improved and validated.
• Clarify the biggest uncertainties with experiments first.
Step 5: Business ecosystem design, and agile product and customer development – why are these central for the product/market fit?
• The focus shifts from problem solving and finding the solution (problem/solution fit) to the elaboration of the right business model by means of business design (product/market fit).
• Business ecosystem design becomes a complex effort, especially for decentralised business ecosystems in which all actors have to contribute to an inter-coordinated value proposition. Start by building an MVE and further grow the scope of the value proposition and the scale of your ecosystem (WeChat provides a useful example for a business ecosystem in the platform economy).
• The product and the business model are developed in an agile way. Methods such as SCRUM are helpful. Think in variants when developing business models. Consider service aspects (servitisation) or concepts such as circular economy and cradle to cradle design.
Step 6: Scale – what processes are required?
• Growth is only envisaged in this last step when the business is scaled.
• Introduce the product into the market.
• Prepare the organisation for growth and scaling.
• Establish scalable processes, structures and platforms.
• Assess the mindset and skills in your organisation and do not just follow
a blueprint.
• Take the whole organisation a step forward and follow new paths.
One of the critical steps in any innovation project is finding the right problem/solution fit and describing a vision to the development team. In the problem/solution fit, the ‘desirability’ of the user/customer, the ‘viability’ from a business perspective and the ‘feasibility’ from a technical perspective for the proposed concept must be demonstrated. Tools such as the enhanced version of the lean canvas provide a very useful starting point.
The design-thinking mindset
1. Human-centred
The human being and their needs, possibilities, experiences, and knowledge is the starting point for considerations. People have desires (‘gains’) and frustrations (‘pains’) and tasks to be fulfilled (‘jobs to be done’).
2. Create awareness of the problem
Understanding what we are working on and the greater vision we want to pursue is central to design thinking. To find a solution, the team must have understood the problem.
3. Work in interdisciplinary teams
Teamwork and ‘teams of teams’ are central to taking a holistic approach to problems. Team members with different competencies and expert knowledge (T-shaped) help in the creative process and reflection of ideas.
4. Start experiments with prototypes
A solution’s potential can only be seen in practice. The implementation of simple and physical prototypes helps garner feedback from potential users.
5. Pay attention to the design process
All team members need to know where they
stand in the design cycle, the goals they are currently pursuing, and which tools should be used to achieve these.
6. Visualise and show ideas
The value proposition of an idea must be demand-driven and communicated effectively. Visualisation allows teams to demonstrate the needs of the user.
7. Bias towards action
Design thinking isn’t based on long considerations in the quiet room, but
lives on action..
8. Accept complexity
In digitisation, the problem is usually complex, since we integrate different systems and react to events in an agile and targeted manner.
9. Co-create, grow and scale
Design thinking helps solve problems, but business ecosystems must also achieve market success. Therefore, we combine situational approaches with design thinking.
Michael Lewrick (PhD, MBA) teaches design thinking as a visiting professor at various universities. Currently, he focuses on the design of business ecosystems for blockchain applications in the Crypto Valley, Switzerland. He recently published a book about blockchain, crypto and the new business ecosystems titled Live from CRYPTO Valley.
Larry Leifer (PhD) is the founding Director of the Center for Design Research at Stanford University. His design-thinking research focuses on instrumenting design teams to understand, support and improve design practice and theory.
Michael Lerwick and Larry Leifer, alongside Patrick Link, are also co-authors of the international bestseller, The Design Thinking Playbook. See www.design-thinking-playbook.com
