Design Thinking in 2025: What product owners & business leaders need to know

Design Thinking for Businesses in 2025

As we progress into 2025, the relevance of design thinking in business strategy is more pronounced than ever. With over 20 years of experience in the design industry, we recognize that the application of design thinking goes beyond surface-level understanding; it requires a nuanced approach that integrates deep user insights, innovative methodologies, and a robust organizational culture. This blog will delve into the complexities of design thinking, providing rich context, detailed examples, and actionable insights for businesses looking to harness this powerful framework.

The Evolution of Design Thinking

Design thinking has evolved significantly since its inception. Originally rooted in product design, it has expanded to encompass service design, organizational development, and strategic innovation. This evolution reflects a broader understanding of how human-centered design can address complex challenges across various sectors.

When did Design Thinking “begin”?

• 1970s-1980s: Design thinking began as a methodology primarily within product design, with pioneers like Herbert Simon advocating for a systematic approach to problem-solving.
• 1990s: The concept gained traction in business contexts, particularly with the work of IDEO, which popularized human-centered design.
• 2000s-Present: Design thinking has become integral to corporate innovation strategies, with companies like Apple and Google embedding it into their cultures.

Key Principles of Advanced Design Thinking

Understanding the principles that underpin advanced design thinking is crucial for its effective application. Here are some core principles that organizations should embrace:

• Human-Centered Focus: At its core, design thinking is about understanding the user. This involves not only identifying user needs but also empathizing with their experiences and pain points. Techniques such as empathy mapping and journey mapping can help teams visualize user experiences and identify opportunities for improvement.
• Iterative Process: Design thinking is inherently iterative. Each phase—empathy, define, ideate, prototype, and test—should be revisited as new insights emerge. This iterative nature allows teams to refine their solutions continuously based on real-world feedback.
• Collaborative Mindset: Successful design thinking requires collaboration across disciplines. Diverse teams bring varied perspectives that can lead to more innovative solutions. Techniques such as co-design workshops can facilitate collaboration among stakeholders.
• Fail Fast, Learn Fast: Embracing failure as a part of the learning process is essential. Rapid prototyping allows teams to test ideas quickly and learn from failures without significant resource investment.
• Systems Thinking: Recognizing the interconnectedness of various elements within an organization or ecosystem is vital for sustainable solutions. Systems thinking encourages teams to consider how changes in one area can impact others.

Deep Dive into Real-World Applications of Design Thinking

To illustrate how advanced design thinking principles are applied in practice, let’s explore several case studies across different industries:

1. IBM’s Enterprise Design Thinking

IBM has integrated design thinking into its corporate DNA through its Enterprise Design Thinking framework. This framework emphasizes three key pillars: user outcomes, business outcomes, and technical feasibility.

• User Outcomes: IBM conducts extensive user research through interviews and observations to understand the needs of their clients.
• Business Outcomes: They align user needs with business goals by involving stakeholders from various departments in the design process.
• Technical Feasibility: By collaborating with technical teams early in the process, IBM ensures that proposed solutions are viable.

This comprehensive approach has led to successful products like IBM Watson Health, which leverages AI to provide personalized healthcare solutions based on patient data analysis.

2. Airbnb’s Community-Centric Approach

Airbnb faced significant challenges related to trust and safety in its early days. To address these issues, they adopted a community-centric approach driven by design thinking:

• Empathy Workshops: Airbnb organized workshops where hosts and guests could share their experiences openly. This feedback was invaluable in redesigning their platform.
• Safety Features: The company implemented new safety features based on user feedback, such as verified profiles and secure messaging systems.

By prioritizing community engagement and trust-building measures, Airbnb transformed its platform into a trusted marketplace for travelers worldwide.

3. Tesla’s User-Centric Innovation

Tesla exemplifies how design thinking can drive innovation in highly competitive industries like automotive manufacturing:

• User Feedback Loops: Tesla actively solicits feedback from its customers through software updates and online forums. This direct line to users allows them to iterate on features rapidly.
• Prototyping New Features: Tesla’s over-the-air software updates allow them to prototype new features in real-time based on user interactions and preferences.

This commitment to user-centric innovation has positioned Tesla as a leader in electric vehicles and sustainable energy solutions.

The Impact of Advanced Design Thinking on Business Performance

The integration of advanced design thinking principles can lead to substantial improvements in business performance:

• Increased Innovation Velocity: Organizations that adopt design thinking report faster innovation cycles due to iterative prototyping and testing processes.
• Enhanced Customer Satisfaction: By focusing on user needs, companies can create products that resonate more deeply with their target audience, leading to higher satisfaction rates.
• Improved Employee Engagement: A collaborative culture fostered by design thinking can enhance employee morale and engagement by empowering teams to contribute creatively.
• Competitive Advantage: Businesses that effectively implement design thinking often outperform competitors by delivering unique value propositions that meet evolving market demands.

Metrics for Measuring Success

To gauge the effectiveness of design thinking initiatives, organizations should consider implementing metrics that reflect both qualitative and quantitative outcomes:

• Customer Satisfaction Scores (CSAT): Measure how well products meet customer expectations through surveys post-launch.
• Net Promoter Score (NPS): Assess customer loyalty by asking how likely customers are to recommend your product or service.
• Time-to-Market Metrics: Track how long it takes from concept development to product launch compared to previous cycles.
• Employee Engagement Surveys: Evaluate team morale and engagement levels before and after implementing design-thinking initiatives.
• Innovation Pipeline Metrics: Monitor the number of ideas generated versus those successfully implemented over time.

Overcoming Implementation Challenges

Despite the clear benefits of advanced design thinking, organizations often encounter challenges during implementation:

Cultural Barriers: Shifting from traditional top-down management styles to a more collaborative approach may face resistance from leadership or employees accustomed to established processes.

Solution: Leadership must model desired behaviors by actively participating in design-thinking initiatives and promoting an open culture where ideas are valued regardless of hierarchy.

Resource Allocation: Design-thinking processes require time and resources that may not be readily available within fast-paced environments.

Solution: Organizations should prioritize dedicated time for teams to engage in design-thinking activities without the pressure of immediate deliverables.

Skill Gaps: Teams may lack experience or training in applying advanced design-thinking methods effectively.

Solution: Invest in training programs that equip employees with essential skills such as empathy mapping, prototyping techniques, and facilitation skills for workshops.

Future Trends Shaping Design Thinking in 2025

• AI-Powered Insights: The integration of AI tools will enhance data collection methods during the empathy phase, allowing businesses to analyze vast amounts of user data quickly and derive actionable insights.
• Sustainability Integration: As environmental concerns gain prominence, businesses will increasingly apply design-thinking principles to develop sustainable products and services that align with consumer values around environmental responsibility.
• Remote Collaboration Tools: As remote work continues to be prevalent post-pandemic, organizations will need robust digital platforms that facilitate collaborative brainstorming sessions and co-design workshops across geographically dispersed teams.
• Focus on Diversity & Inclusion (D&I): Companies will prioritize diverse perspectives within their teams as research shows that diverse groups are more innovative problem solvers. Incorporating D&I into the design process will lead to more comprehensive solutions that cater to varied demographics.

How major brands implement Design Thinking

1. Empathize: Understanding User Needs

Empathy is the cornerstone of design thinking. Organizations must engage deeply with users to uncover their true needs and pain points. Here are several examples:

• PillPack: This online pharmacy recognized that older adults often struggle with managing multiple medications. By conducting user interviews and observations, PillPack designed a service that delivers pre-sorted medication packets labeled by date and time, simplifying the medication management process for seniors. 
• The Good Kitchen: In Denmark, Hatch and Bloom worked with the Municipality of Holstebro to improve meal delivery for elderly citizens. They engaged with users to understand their dietary needs and preferences, leading to a service that offered greater meal quality and flexibility, significantly enhancing the dining experience for seniors. 
• Oral-B: When redesigning their electric toothbrush, Oral-B enlisted designers who discovered that users were overwhelmed by excessive features. Instead of adding complexity, they focused on improving the basic brushing experience, leading to a product that better met user expectations without unnecessary stress. 

2. Define: Framing the Problem

Defining the problem accurately is crucial for effective ideation. Organizations must synthesize insights gathered during the empathy phase to articulate clear challenges.

• Airbnb: Initially struggling to gain traction, Airbnb founders realized they needed to redefine their problem from merely providing accommodation to creating trust between hosts and guests. By focusing on safety and community engagement, they transformed their platform into a trusted marketplace. 
• Intuit: The financial software company identified that users found their products cumbersome and intimidating. By framing the problem as one of user experience rather than just functionality, Intuit redefined its approach to product development, leading to more intuitive interfaces in products like QuickBooks and TurboTax. 
• GE Healthcare: When developing new medical imaging devices, GE Healthcare defined their challenge as not just improving technology but enhancing usability for healthcare professionals. This led them to involve doctors in the design process, resulting in devices that better fit clinical workflows. 

3. Ideate: Generating Creative Solutions

In this phase, teams brainstorm a wide range of ideas without judgment. The goal is to foster creativity and explore multiple avenues for solutions.

• Netflix: The streaming giant continuously iterates on its user interface based on viewer feedback. During brainstorming sessions, they explore various ways to enhance user engagement—such as personalized recommendations and interactive storytelling—which have become key differentiators in their service. 
• UberEats: The Walkabout Program allows UberEats designers to immerse themselves in different cities’ food cultures. This firsthand experience leads to innovative ideas tailored to local preferences, such as unique promotional campaigns or localized menu offerings. 
• Coca-Cola: The company has utilized design thinking workshops that bring together diverse teams from marketing, product development, and customer service. These collaborative sessions have generated creative ideas for new beverage flavors and packaging designs that resonate with consumer trends. 

4. Prototype: Creating Tangible Representations

Prototyping enables teams to visualize ideas and test them quickly. This phase is essential for validating concepts before full-scale implementation.

• Tesla: Tesla’s approach to prototyping includes rapid iterations of software updates for its vehicles based on user feedback. By deploying over-the-air updates, Tesla can test new features with real users in real-time, refining them based on actual usage data. 
• Braun/Oral-B: The development team created several prototypes of their electric toothbrush before finalizing the design. Each iteration was tested with users who provided feedback on usability and effectiveness, ensuring the final product met customer expectations. 
• PillPack: Before launching their service widely, PillPack developed prototype packaging solutions and conducted user testing sessions with seniors. This iterative process allowed them to refine their packaging design for ease of use before scaling up production. 

5. Test: Validating Solutions

Testing involves gathering feedback from users about prototypes and refining solutions based on this input.

• Airbnb’s Superhost Program: Airbnb tested various support systems for hosts by implementing a Superhost program that provided additional resources and recognition for top-performing hosts. Feedback from this program informed further enhancements in host support services. 
• GE Healthcare’s Imaging Devices: After developing prototypes of new imaging technology, GE Healthcare conducted extensive field tests with healthcare professionals who provided critical feedback on usability and functionality. This iterative testing led to significant improvements in the final product design. 
• UberEats Driver App: After launching initial versions of their driver app, UberEats continuously collects feedback from delivery partners regarding navigation features and parking assistance tools. This ongoing testing allows them to make data-driven adjustments that enhance the delivery experience.

Design Thinking Best Practices for Businesses in 2025 in the Context of AI

As businesses increasingly adopt design thinking methodologies in 2025, the integration of artificial intelligence (AI) into this process offers new opportunities for innovation and user-centric solutions. Here are 8-10 best practices for effectively implementing design thinking while leveraging AI technologies:

1. Leverage AI for Empathy Research

Utilize AI tools to analyze large datasets from user interactions, social media, and customer feedback. AI can identify patterns and sentiments that may not be immediately apparent through traditional research methods. Companies like Coca-Cola use AI-driven sentiment analysis to gauge consumer reactions to marketing campaigns, allowing them to empathize with customer preferences and adjust their strategies accordingly.

2. Define Problems with Data-Driven Insights

Incorporate AI analytics to refine problem statements based on empirical data. This helps teams articulate user needs more accurately by grounding definitions in real-world data. IBM Watson analyzes customer service interactions to identify common pain points, enabling teams to frame precise problem statements that address the root causes of user dissatisfaction.

3. Encourage Collaborative Ideation with AI Tools

Use AI-powered brainstorming tools that facilitate collaboration among team members, regardless of location. These tools can suggest ideas based on previous successful innovations and user feedback. Platforms like Miro leverage AI to enhance collaborative brainstorming sessions, allowing teams to generate a wide array of ideas quickly while integrating insights from past projects.

4. Rapid Prototyping with AI Simulations

Employ AI simulations to create prototypes quickly and test various scenarios without the need for extensive physical resources. This allows teams to iterate rapidly based on simulated user interactions. BMW uses AI-driven simulations to prototype vehicle designs before physical models are built, enabling them to test performance and aesthetics virtually.

5. Utilize Predictive Analytics in Testing

Incorporate predictive analytics during the testing phase to forecast user behavior and outcomes based on prototype interactions. This data can guide further iterations and refinements. Netflix employs A/B testing combined with predictive analytics to determine which content formats resonate best with viewers, allowing them to optimize their offerings continuously.

6. Foster a Culture of Continuous Learning

Encourage a culture where teams are motivated to learn from both successes and failures. Use AI tools to analyze project outcomes and derive lessons that inform future design thinking initiatives. Airbnb conducts regular retrospective sessions using data from user feedback and engagement metrics, fostering a culture of continuous improvement and innovation.

7. Integrate User Feedback Loops Using AI

Establish continuous feedback loops that utilize AI algorithms to analyze real-time user feedback on products or services. This allows organizations to make data-driven adjustments swiftly. Tesla’s over-the-air software updates enable them to gather user feedback continuously and implement changes based on actual usage patterns, ensuring their vehicles evolve with customer needs.

8. Cross-Functional Teams with Diverse Expertise

Build cross-functional teams that include members from design, engineering, marketing, and data science. This diversity fosters holistic solutions that consider various perspectives while leveraging AI capabilities effectively. Companies like Procter & Gamble (P&G) embed designers within cross-functional teams to ensure that insights from design thinking are integrated throughout the product development lifecycle.

9. Emphasize Ethical Considerations in Design

As businesses leverage AI in design thinking, it is crucial to address ethical considerations related to data privacy and algorithmic bias. Establish guidelines that prioritize ethical practices in all stages of the design process. Organizations like Microsoft have developed ethical frameworks for AI usage in design processes, ensuring that user data is handled responsibly while minimizing biases in algorithmic decision-making.

10. Measure Success Beyond Traditional Metrics

Adopt a broader set of metrics that encompass user satisfaction, engagement levels, and long-term impact on business goals rather than relying solely on financial metrics. Companies like Zara measure success through customer retention rates and brand loyalty alongside sales figures, allowing them to assess the effectiveness of their design thinking initiatives holistically.

Design Thinking in 2o25

In conclusion, advanced design thinking is an essential framework for businesses navigating the complexities of 2025 and beyond. By embedding empathy into their processes, fostering collaboration across disciplines, embracing iterative experimentation, and leveraging diverse perspectives, organizations can unlock new avenues for innovation while creating meaningful value for their customers.

As thought leaders in this space with decades of experience, we encourage businesses not only to adopt design-thinking methodologies but also to cultivate a culture that embraces continuous learning and adaptation. The journey may be challenging; however, the rewards—enhanced customer loyalty, increased efficiency, sustainable growth—are well worth the effort invested in this transformative approach.

By asking critical questions about their practices and remaining open to change, organizations can harness the full potential of advanced design thinking as they forge ahead into an ever-evolving business landscape.