Thursday, March 16, 2006

"Design Thinking" vs. "Business Thinking"

I've been more deeply into the topic of design thinking for several months now. One thing I have always wanted to do was to compare more traditional "business thinking" with the "design thinking" trend that is currently captivating the business world. Luckily, Luke Wroblewski has given this a try on his blogpost title "A Difference of Design".

I really like the table in which he opposes the "business approach" with the "design approach", though I don't think the world is as black and white, as Luke describes it.

I copied the table below (though the formatting didn't really want to follow my design wishes ;-)

























































Business Approach Design Approach
Problem Solving Approach

Definitive. Relies on equations for “proof”.
Iterative. Relies on a “build to think”
process dependent on trial and error.
Validation through What customers say: often a combination of qualitative
(focus groups) and quantitative (surveys) research.
What customers do: often direct observation and
usability testing.
Informed by Market analysis and aggregate consumer behavior. Direct consumer observation and abductive reasoning
(“what might be”).
Completed Completion of strategy phase marks the start of
product development phase.
Never: continually evolving with customers.
Focused on An understanding of the results
of customer activities.
An understanding of customer activities.
Tools used to communicate strategic
vision
Spreadsheets and PowerPoint decks. Prototypes, films, and scenarios.
Described through Words (often open to interpretation). Pictorial representations and direct experiences
with prototypes.
Team members Vertical expertise and individual responsibilities. “T-shaped” expertise: a principal vertical
skill and a horizontal set of secondary skills. Collaborative (team) responsibilities.
Work patterns Permanent jobs, on-going tasks, and fixed hours. emporary projects with associated tasks and flexible
hours.
Reward structure Corporate recognition based on the bottom line. Peer recognition based on the quality of solutions.


I think this reflection on the difference between business thinking and design thinking is a good start to understand how strategy, business and management is shifting information age (numbers, facts & info dominate) towards the conceptual age (relationships and understanding dominates). I will come up with more indepth reflection when I have the opportunity to dig even deeper into this topic in the coming months.



2 comments:

Victor said...

Alex -- thanks for the interesting blog.

I've been thinking about this issue for a while, you may find some of my posts useful...

http://noisebetweenstations.com/personal/essays/DesignThinking-Business/
http://noisebetweenstations.com/personal/weblogs/?page_id=1688
http://noisebetweenstations.com/personal/weblogs/index.php?cat=5

I also like Luke's table. Though now it reminds me of my first trips to Europe (I live in New York). During those early experiences I constantly observed how different Americans and Europeans can be in language, customs, food, etc. After having visited several more times and marrying a European, I now see how much we have in common.

Likewise I see -- like you -- that business and design thinking aren't black and white. I see how financial modelers "play" with numbers, and how designers validate business ideas. It's impossible for any one person to do it all, but through learning and collaboration we can combine them to great effect.

Alex Osterwalder said...

Victor, thanks for the links to your postings. I have always regarded your writings on business and design as an inspiring input to my own emerging thinking!

Regarding Europeans and Americans it is like for the business and design field: There are differences and there are similarities, but it is from the many communalities that we must start in order to learn, share and strive and build our competencies ;-)