IBM Design Thinking

IBM faced several challenges that led them to adopt design thinking

CustomerCentricity: IBM realized that they needed to shift from a product-

centric to a customer
centric approach. They wanted to better understand and meet the needs of their
customers.

Innovation Stagnation: The Company recognized that their tradition-

al methods were not fostering enough innovation. They needed a new approach
to drive creativity and innovation within the organization.

Complexity: IBM's vast array of products and services made it difficult to main
tain a consistent and highquality customer experience. They needed a way to str
eamline and simplify their offerings.

Internal Resistance: Implementing a new methodology across a large, establish

ed company like IBM came with its own set of challenges, including resistance
from employees who were accustomed to the old ways of working

IBM recognized the need to shift from a product-centric to a customer-centric

approach to stay competitive they aimed to foster innovation and improve
customer experience across their various business units

Implementation: IBM hired thousands of designers to serve on every product

team alongside technical engineers, developers, and product managers This was
part of their broader effort to implement design thinking throughout the
company

Key Business Units: The design thinking approach was adopted in several key
business units, including IBM's Z mainframes business, IBM Security, IBM's
data and artificial intelligence (AI) business, and the Digital Strategies and
Interactive Experience (DS/iX)

Design Program Office: IBM established a centralized Design Program Office

led by General Manager Phil Gilbert to support the organizational change
effort7

This office played a crucial role in driving the design thinking transformation
Outcomes: The adoption of design thinking led to improved customer
experiences, streamlined operations, and innovative solutions that better met the
needs of customers.

Empathy and Research:

 The team conducted extensive user research, including interviews and

usability tests. They identified pain points and areas where users
struggled.

Defining

 The team defined specific user-centric goals (Hills) to guide their design.
For instance, one hill could be “Users can easily find and deploy cloud
services in under five minutes.”

Ideation and Prototyping:

 Through collaborative brainstorming sessions, they generated a range of

ideas. Rapid prototypes were created to visualize concepts, allowing for
quick feedback. Regular sessions were held to present progress and
gather input from stakeholders, ensuring that the design remained aligned
with user needs and business objectives.

Testing:

 The prototypes were tested with real users, leading to further iterations
based on feedback. This iterative loop helped refine the design before
final implementation.

Airbnb Design Thinking

Here are some of the key problems Airbnb encountered and how design
thinking helped address them:

1. Trust and Safety:

 Problem: Connecting strangers for accommodation posed significant

safety concerns.
2. Photography Quality:

 Problem: Poor quality listing photos made it difficult for guests to assess
properties accurately.

3. Payment and Cancellation Policies:

 Problem: Establishing fair and flexible payment and cancellation policies

was challenging for a new marketplace.

4. Scalability:

 Problem: As Airbnb grow rapidly, it faced challenges in scaling its

operations and ensuring a consistent user experience.

1. Empathy: Airbnb's founders, Brian Chesky and Joe Gebbia, started by u

nderstanding the needs of both hosts and guests. They realized that people
were looking for unique and affordable accommodations, and hosts want
ed to monetize their extra space.

Airbnb began by deeply understanding its users: hosts and guests. They
conducted interviews, surveys, and observations to gather insights about
their needs, motivations, and pain points This helped them realize that
many hosts struggled with presenting their homes attractively and guests
desired authentic local experiences.

2. Define: They identified the problem: traditional hotels were too expensiv
e and impersonal, while renting out a room or home was inconvenient an
d risky. Based on the insights gathered, They recognized that the platform
needed to facilitate trust between hosts and guests, ensuring a safe and
welcoming experience. They also aimed to enhance the overall booking
experience.

3. Ideate: Airbnb brainstormed various solutions, eventually deciding to cre

ate a platform that would connect hosts and guests in a safe, easy, and aff
ordable way. This included ideas like improved photography services for
hosts, the introduction of detailed user profiles, and enhanced review
systems to build trust. They focused on creating features that would foster
community and connection.

4. Prototype: They tested the platform with a small user base to gather feed
back and make necessary adjustments.
 Creating Low-Fidelity Prototypes: Airbnb built prototypes of key
features to visualize solutions. Examples included: User Interface
Mockups: Simplified designs for easier navigation. Elements such as
verified IDs, safety protocols, and guest reviews.

Rapid Testing: Prototypes were quickly developed and tested with real
users for immediate feedback.

5. Test: After refining their service, Airbnb launched a fullscale platform, c

ontinuously Improving based on user feedback and data.Airbnb engaged
both hosts and guests in testing the prototypes. Key observations
included:

 Users appreciated clear guidelines and communication.

 The importance of a seamless booking process became evident.

Challenges:

Regulatory Issues: Many cities have imposed strict regulations on short-term

rentals to protect housing markets and address concerns about noise and safety.
Competition: The rise of other platforms (e.g., Vrbo, Booking.com) and
traditional hotels adapting to offer similar services increased competition.
Trust and Safety: Ensuring guest safety and host reliability has been an
ongoing challenge, with incidents prompting scrutiny and demand for better
vetting processes.

Banking Chabot Case Study: Applying Design Thinking

This case study explores how a banking institution developed a chatbot using
design thinking principles to enhance customer service and streamline
operations.

1. Empathize

The first step involved engaging with customers and bank staff to identify pain
points in customer service interactions. Customers often faced long wait times
for support. Many had repetitive queries about account balances, transaction
history, and loan information. Bank representatives expressed frustration with
handling high volumes of similar inquiries, which took time away from more
complex customer needs. Interviews and Surveys: Conducted with customers
to gather feedback on their experiences. Staff observed customer interactions to
identify common issues and needs.

2. Define: From the empathy phase, several key challenges emerged: “How
might we reduce customer wait times while providing instant answers to
common queries? “Quick access to information. A seamless experience across
platforms.

3. Ideate: The team brainstormed potential features and functionalities for the
Chabot. Ideas included: Natural Language Processing (NLP): Enabling the
bot to understand and respond to customer inquiries in natural language.24/7
Availability: Offering support outside of regular banking hours. Personalized
Interactions: Tailoring responses based on customer profiles and transaction
history. Collaborative Workshops: Engaged diverse teams including tech
developers, customer service reps, and marketing.

4. Prototype: A working prototype of the Chabot was created, incorporating

key functionalities: Designed to mimic human-like interactions. Included
answers to frequently asked questions (FAQs) and guided users through
common tasks. The prototype was tested internally with bank employees to
identify potential issues and areas for improvement.

5. Test: The prototype was rolled out to a select group of customers for
feedback. Customers were encouraged to share their experiences and
suggestions. Users appreciated the speed of responses. Some found the bot’s
understanding of complex queries limited.

Amazon Case Study: Applying Design Thinking

Amazon is renowned for its customer-centric approach, and its use of design
thinking has been instrumental in driving innovation and improving user
experience. This case study explores how Amazon has applied design thinking
principles to enhance its services and products.

1. Empathize: Amazon's approach begins with a deep understanding of

customer needs and behaviors. They leverage various methods to gather
insights: Amazon collects extensive feedback through reviews, surveys, and
user interactions. Regular testing of new features with real users to observe their
behaviour and gather insights. Customers desire convenience, speed, and a
seamless shopping experience. Pain points include difficulty in finding products
and concerns about delivery reliability.
2. Define: Amazon synthesizes insights to define clear problem statements:
"How might we make the online shopping experience as seamless and efficient
as possible for our customers? “Easy navigation and search ability. Reliable
delivery options.

3. Ideate

Generating Solutions: Amazon fosters a culture of innovation where

brainstorming sessions and workshops lead to the development of new ideas.
Some notable initiatives include: One-Click Ordering: Simplifying the
checkout process to minimize cart abandonment. Personalized
Recommendations: Using algorithms to suggest products based on user
behavior and preferences.

4. Prototype: Amazon creates prototypes to test new features before full

implementation. Examples include. Designing new layouts for product pages
and the checkout process. A/B Testing: Testing different versions of a feature
(e.g., button colors, layouts) to see which performs better.

5. Test: Amazon conducts extensive testing of new features with real

users:Rolling out new features to a select group of users to gather feedback.
Using data analytics to monitor user behavior and identify areas for
improvement.

The application of design thinking has led to several significant outcomes for
Amazon:

 Increased Conversion Rates: Simplified checkout processes and

personalized recommendations have boosted sales.
 Enhanced Customer Loyalty: A focus on user experience fosters trust
and encourages repeat purchases.
 Market Leadership: Amazon maintains its position as a leader in e-
commerce through on-going innovation.

Tesla Case Study: Applying Design Thinking

Tesla, known for its innovative electric vehicles (EVs) and sustainable energy
solutions, employs design thinking principles to drive its product development
and enhance customer experience. This case study explores how Tesla has
applied these principles effectively.
1. Empathize:Tesla begins by deeply understanding the needs, behaviors, and
motivations of its customers and stakeholders. Many customers are
environmentally conscious and seek sustainable alternatives to traditional
vehicles. Users value technology, performance, and unique features in their
vehicles. Regularly collects data from customers about their experiences with
Tesla products. Engages with customers to discuss their driving experiences and
expectations from electric vehicles.

2. Define Based on the insights gathered, Tesla defines key challenges to

address: "How might we create an electric vehicle that not only meets the
sustainability needs of our customers but also exceeds their performance
expectations? “High-performance vehicles that are fun to drive. An integrated
technology ecosystem for a seamless user experience.

3. Ideate: Tesla encourages a culture of innovation and brainstorming to

explore new ideas. Some notable initiatives include:Autopilot and Full Self-
Driving Features: Development of advanced driver-assistance systems to
enhance safety and convenience.Supercharger Network: Creating a robust
charging infrastructure to address range anxiety among potential EV buyers.

4. Prototype: Tesla rapidly develops prototypes to test new features and

designs, focusing on: Vehicle Models: Producing prototypes of new models to
gather feedback on design and performance. Software Features: Testing new
software updates in beta with select users to evaluate functionality and user
experience.

5. Test

User Testing: Tesla conducts extensive testing with real users to validate its
designs and features Gathering data from vehicles in operation to monitor
performance and gather user feedback.

Netflix Case Study: Design Thinking Approach

Overview

Netflix has successfully leveraged design thinking principles to enhance user

experience, drive innovation, and improve its service offerings. Design thinking
emphasizes empathy, ideation, prototyping, and testing, allowing companies to
develop solutions that genuinely meet user needs.
Netflix was founded in 1997, offering online movie rentals with less than 1000
titles. Soon, it switched to the subscriber-based model, and in 2000 Netflix
introduced a personalized movie recommendation system. By 2005 Netflix had
over 4.2 million subscribers and started work on a video recommendation
algorithm. And finally, in 2007, Netflix began its streaming services and
original content creation. By 2016 Netflix had over 50 million subscribers; the
story continues today as it is a worldwide presence in the video-on-demand
industry.

Netflix faced several challenges that led them to adopt design thinking:

1. Competition: With the rise of ondemand streaming services from cable c

ompanies and other competitors like Amazon Prime and Disney+, Netflix
needed to innovate to stay ahead
2. Changing Consumer Preferences: Customers were moving away from
physical DVD rentals and mail-
order services in favor of instant streaming.
3. Technological Advancements: The rapid evolution of internet speeds an
d streaming technology required Netflix to adapt and improve their servic
e continuously.
4. User Experience: As their content library grew, Netflix needed to ensure
that users could easily find and enjoy the content they wanted without fee
ling overwhelmed by choices

.Step 1: Empathize

Netflix prioritizes understanding its users deeply. Through qualitative research

methods such as interviews, surveys, and focus groups, they gather insights into
user preferences, viewing habits, and pain points. Netflix creates detailed user
personas to represent different segments of their audience, helping teams
visualize and understand user motivations and behaviors.Given its international
presence, Netflix conducts regional studies to cater to cultural preferences,
ensuring local content resonates with diverse audiences.

Step 2.Define:Based on the insights gathered, Netflix defines key problems to

address. Challenge of Content Discovery: Users often struggle to find content
that matches their tastes amid a vast library. Retention Issues: Understanding
that user churn is a significant concern, Netflix identifies the need for engaging
content and personalized recommendations.

Step 3.IdeateIn this phase, Netflix teams brainstorm potential

solutions.Enhanced Recommendation Algorithms: Utilizing data analytics to
refine how content is recommended based on viewing habits and preferences.
User Interface Improvements: Exploring various layouts and design elements
to create a more intuitive and engaging browsing experience.

Step 4.PrototypeNetflix develops prototypes to visualize ideas and test

assumptions. A/B Testing: Netflix frequently conducts A/B tests to compare
different versions of their interface and recommendation system. This allows
them to gather real-time data on user interactions and preferences.Mockups
and Wireframes: Teams create mock-ups of new features (like the "Top 10"
lists) to gather feedback before full implementation.

Step 5.Test:Testing prototypes with actual users is crucial for validation. User
Feedback Sessions: After launching new features, Netflix gathers feedback
from users to identify what works and what doesn’t. This iterative process
allows for continuous improvement. Data Analysis: Post-launch analytics
provide insights into user engagement and satisfaction, helping to refine the
offering further.

Redesigning the Customer Contact Centre at Toyota: A Design

Thinking Case Study
This case study explores how Toyota applied design thinking principles to
redesign its customer contact centre, enhancing customer experience and
operational efficiency.

1. Empathize

Understanding Users: Toyota started by gathering insights from both

customers and contact centre staff to understand their experiences, needs, and
pain points. Customer Insights:

Customers expressed frustration with long wait times and inconsistent service
quality. Many felt that their inquiries were not addressed thoroughly, leading to
dissatisfaction.

Staff Insights:Contact centre representatives faced challenges with outdated

systems and processes that hindered their ability to assist customers effectively.
Staff reported feeling overwhelmed by high call volumes and lacked the
necessary tools for efficient service. Interviews and Surveys: Conducted with
customers to understand their expectations and experiences.

2. Define: From the insights gathered, Toyota defined specific challenges to

address:"How might we reduce customer wait times while improving the quality
of support?" "How might we empower contact centre staff with the right tools
and information to enhance customer interactions?"User Needs:Timely and
personalized responses to inquiries.A streamlined process for staff to access
information quickly.

3. Ideate: The team brainstormed potential solutions, focusing on both

customer experience and staff support:Integrated CRM System: Developing a
user-friendly Customer Relationship Management (CRM) system to provide
staff with real-time access to customer information.Self-Service Options:
Implementing an intuitive online self-service portal for customers to address
common inquiries without needing to contact support.Training Programs:
Enhancing training for staff to improve product knowledge and customer
interaction skills.Collaborative Workshops: Engaged cross-functional teams,
including IT, customer service, and design, to generate a wide range of ideas.

4. Prototype

Developing Prototypes: Toyota created prototypes of the proposed solutions to

visualize and test them:CRM System Mockups: Developed user interface
mockups for the new CRM system, focusing on ease of use.Self-Service
Portal: Created a prototype of the online self-service portal to facilitate
customer inquiries.

5. Test:User Testing: The prototypes were tested with both customers and staff
to validate their effectiveness:Feedback Sessions: Conducted with contact
centre staff to evaluate the CRM system and self-service portal.Customer
Trials: Selected customers tested the self-service portal, providing feedback on
usability and effectiveness.

The redesign of the customer contact centre led to several positive outcomes:

 Reduced Wait Times: Average call wait times decreased significantly,

improving overall customer satisfaction.
 Enhanced Staff Efficiency: Contact centre representatives reported
increased confidence in addressing customer inquiries, leading to faster
resolution times.
 Increased Customer Satisfaction: Customer feedback showed improved
perceptions of service quality and responsiveness.