What Is Design Thinking Process? Steps, Benefits, and Real-World Examples
Product Design
UX Design
February 21, 2025
7 Mins Read
illustration of design thinking benefits

Design Thinking Process: Essential Steps to Innovate and Solve Problems Effectively

Like the development world, the field of design has several methodologies and approaches to choose from. One of the most well-known frameworks is Design Thinking, a problem-solving approach that is deeply rooted in empathy and understanding user needs. While it may not be the best choice for every situation, it remains an incredibly powerful tool for driving innovation, solving complex problems, and improving user experiences.

If you’re unfamiliar with Design Thinking or want to dive deeper into its principles, this guide will walk you through its definition, the key steps involved, the benefits it offers, and real-world examples of its application.

Infographic showing the 5 stages of Design Thinking process

Source: Interaction Design Foundation

What is Design Thinking?

According to the Interaction Design Foundation (IxdF), “Design thinking is a non-linear, iterative process that teams use to understand users, challenge assumptions, redefine problems and create innovative solutions to prototype and test. It is most useful to tackle ill-defined or unknown problems and involves five phases: Empathise, Define, Ideate, Prototype and Test.” At its core, Design Thinking is a human-centered approach to innovation. Instead of rushing to develop a solution, it prioritises a deep understanding of the problem space and the people affected by it. It helps teams avoid assumptions, embrace uncertainty, and refine their ideas based on real user feedback.

This methodology is particularly useful for complex, ambiguous, or user-centric problems where conventional approaches may fall short. Now, let's break down each of the five phases of Design Thinking. 

  • Empathize: Generating empathy for users by understanding their pain points and diving deeper into their behaviors and motivations
  • Define: Issues identified in the previous phases are summarized in the form of problem statements, which serve as a reference in the ideation phase
  • Ideate: The team comes together for a brainstorming session, focused on creating solutions that solve the problem
  • Prototype: A low-cost and scaled-down model, resembling the solution, is created to test and invalidate any hypotheses.
  • Test: The prototype is then tested with real users to gather feedback and gauge the effectiveness of the proposed solution.

These steps are not necessarily linear. Designers often loop back and forth, refining their ideas based on new insights. Let's explore each phase in detail.

Steps in Design Thinking

Empathize

The first step in Design Thinking is to develop a deep understanding of the people you are designing for. This phase focuses on generating empathy by immersing oneself in users' experiences, pain points, and behaviors. Generative research methods are employed to generate insights that help us understand the problem on a deeper level. Common qualitative techniques include ethnographic studies, user interviews and focus groups, which are commonly used to answer those questions. By putting themselves in the users’ shoes, designers can create solutions that truly address their problems rather than relying on assumptions. This phase also ensures that the design team is aligned with user needs before moving forward.

designer conducting user interview to understand needs

Photo by Christina @ wocintechchat.com on Unsplash 

Define

Once enough data is gathered, the next step is to analyze the findings and pinpoint the core problem that needs solving. Without a well-defined problem, even the most creative ideas may miss the mark. Designers may use tools like affinity diagrams and problem statements in this process to identify common themes and summarize the insights. Additionally, journey mapping and user personas may be used to highlight pain points and represent different users, respectively.

team analyzing research findings and documenting insights

Photo by Scott Graham on Unsplash 

Ideate

With a clear problem defined, the team moves into the Ideation phase, where they brainstorm possible solutions. This is the stage where creativity takes center stage, and all ideas, no matter how unconventional, are encouraged. There is usually a set time limit and tools like sticky notes and a whiteboard can come in handy. Brainstorming techniques like Crazy Eight and How Might We are commonly used to think out-of-the-box solutions. Once the timer is up, ideas are sorted and sifted through to shortlist the most viable ones.

Ideation phase in design thinking

Photo by Per Lööv on Unsplash 

Prototype

According to UXPin, “A prototype is an early model or simulation of a product used to test and validate ideas before full-scale production.” The Prototype phase involves building a basic version of the solution to test its feasibility. This is an essential step in bringing ideas to life in a low-risk, cost-effective way. Based on the degree of closeness to the finished product, there are generally two main types of prototypes - low (sketches, paper wireframes, digital wireframes) and high fidelity (interactive digital prototypes and coded prototypes).

Prototypes help validate assumptions before investing time and money. They provide a hands-on way to test different approaches and encourage rapid iteration based on user feedback.

Design thinking prototype sketches

Photo by Hal Gatewood on Unsplash 

Test

In the Test phase, prototypes are put in front of real users to gather feedback. Testing helps designers identify usability and accessibility issues, design flaws, and areas for improvement. Common testing methods like usability testing, A/B testing, surveys and interviews are conducted. Based on the testing results, designers may choose to revisit previous phases or move forward and hand off the design to the next team in the process.

Design team testing prototypes

Photo by UX Indonesia on Unsplash 

Benefits of Design Thinking

Design Thinking is a powerful, human-centered approach that helps teams solve complex problems and create innovative solutions. Its structured yet flexible methodology offers numerous benefits, making it a valuable tool for businesses, designers, educators, healthcare professionals, and more. Below are some of the key advantages of applying Design Thinking in various industries.

Human-Centered

At the heart of Design Thinking is empathy, which ensures that all solutions are designed with real users in mind. Instead of assuming what people need, teams engage with users through research methods like interviews, observations, and usability testing to gain deep insights into their experiences, behaviors, and challenges.

By focusing on users from the very beginning, Design Thinking helps create products and services that are intuitive, accessible, and meaningful. Whether designing a new smartphone app, a medical device, or a public service, this approach ensures that real problems are solved in ways that enhance user satisfaction and engagement.

Encourages Innovation

Design Thinking promotes innovation by encouraging teams to explore ideas that would generally be considered weird and wacky. It pushes designers to think boldly without being limited by the fear of failure, opening up pathways for more unique and one-of-a-kind solutions. Instead of sticking to traditional approaches, teams challenge assumptions, reframe problems, and experiment with different perspectives to find the most effective, impactful and feasible solutions. The process welcomes collaboration between designers, engineers, business strategists, and end-users, leading to groundbreaking solutions.

Reduces Risk

One of the biggest risks in product development is investing time, money, and resources into an idea that may ultimately fail. Design Thinking mitigates this risk by emphasizing prototyping and user testing early in the process. Instead of waiting until the final stages of development to test an idea, teams create low-cost prototypes to quickly gather feedback, identify issues, and refine their designs. This iterative approach saves companies millions by avoiding costly mistakes and ensuring that only the best ideas move forward.

Fosters Collaboration

Great ideas don’t come from working alone; they emerge from cross-functional collaboration. Design Thinking brings together diverse perspectives from different backgrounds, including designers, engineers, business experts, and end-users. This approach promotes open communication, teamwork, and knowledge sharing. By encouraging brainstorming sessions, ideation workshops, and collaborative prototyping, Design Thinking ensures that every voice is heard and that solutions are holistic and well-rounded.

Adaptable

Unlike rigid problem-solving frameworks, Design Thinking is highly flexible and adaptable. It can be applied to any industry or challenge, from designing digital products to solving social issues and improving workplace efficiency. Organizations in business, technology, education, government, and healthcare have successfully used Design Thinking to create better experiences and drive positive change. Because of its scalability, it can be used by small startups, global corporations, and even non-profits to address challenges of all sizes.

Real-World Examples of Design Thinking

Design Thinking has been successfully applied across industries, leading to groundbreaking innovations, improved customer experiences, and business success. Below are real-world examples of companies and organizations that have leveraged Design Thinking to solve complex challenges and create impactful solutions.

Airbnb

In its early years, Airbnb struggled with low user engagement and poor booking rates. The founders realized that bad-quality photos of rental spaces were deterring potential customers. The Airbnb team applied Design Thinking by empathizing with users and identifying pain points. Instead of relying on assumptions, they went out and spoke directly to hosts and guests. They discovered that poor-quality listing photos made spaces look unappealing.

Airbnb sent professional photographers to hosts' homes to take high-quality photos, significantly improving the visual appeal of listings. This simple yet user-focused solution led to a dramatic increase in bookings, helping Airbnb grow into a multi-billion-dollar company.

Apple

Human centered design has been at the heart of Apple’s design philosophy and remains the case today too. In Apple’s design thinking approach, it prioritizes putting user needs over business requirements and solving everyday problems while maintaining the aesthetic appeal of their designs. The design teams at Apple value creativity and innovation, using brainstorming sessions to explore new ideas.

In addition, they test their early prototypes and gather feedback from real users. Paying close attention to details from software to hardware, they ensure high quality products are delivered. They focus on creating simple and user-friendly solutions instead of complex ones.

IBM

The three pillars of IBM’s design philosophy - user-centered outcome, multidisciplinary collaboration and the loop process - is what makes them stand out from other tech organizations. IBM Garage focuses on identifying and solidifying their understanding of the core issue they are trying to solve. They then gather a diverse group of stakeholders and users for a two-day design thinking workshop. Having the full scope of the problem, they narrow it down to the part of the problem that has the largest impact on users.

The stakeholders and users both participate in a brainstorming session to ideate innovative solutions to the problem, usually amounting to at least 100 ideas. They zero in on the one that strikes the perfect balance between “do-ability and awesomeness”.

Mayo Clinic

Mayo Clinic established the Centre For Innovation (CFI) in 2008 to enhance patient experience and patient delivery. The facility consists of a cross-functional team of more than 50 members, including service designers, project managers, information technology specialists and clinicians, all working together to develop healthcare delivery solutions.

At CFI’s Design Research Studio, design and healthcare professionals come together to ideate and create prototypes for healthcare issues. They conduct research with patients and their families to improve collaborative communication between them.

Conclusion

In conclusion, Design Thinking is a powerful, human-centered approach to problem-solving that fosters creativity, collaboration, and innovation. By following its key steps - empathize, define, ideate, prototype, and test - organizations can develop effective solutions that truly meet users' needs. The benefits of Design Thinking include improved customer satisfaction, faster innovation cycles, and a culture of continuous improvement. Real-world examples from companies like Apple, Airbnb, and IBM demonstrate its effectiveness in transforming industries and driving success. By embracing Design Thinking, businesses and individuals can navigate complex challenges and create meaningful, user-centric solutions.

Ready to harness the power of Design Thinking for your next project? Partner with a trusted product design agency to turn insights into impactful solutions. Let’s innovate together!

Building Alien and helping startups and enterprises with Branding, Websites, Mobile & Web Apps. Alien crew deployed 20+ Projects across industries in the last two and half years: - Banking - Financal services - Ecommerce - Healthcare - Edutech - Enterprise softwares

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