Design Thinking a Business Solution

Business, governments and nations alike, all have one thing in common. Problems that needs to be solved. In fact, to some extend, various organisation's existence is made possible through, their ability to solve problems for their clients, customers, stakeholders or people.
The methodology, technique and skill used in each organisation, government or business, may vary, depending on the nature or cause of the problem; however, one form of thinking that can be applied across the board, is that of design thinking.
What is design thinking? The text book definition reads something like this:

EMPATHIZE: Work to fully understand the experience of the user for whom you are designing.  Do this through observation, interaction, and immersing yourself in their experiences.

DEFINE: Process and synthesize the findings from your empathy work in order to form a user point of view that you will address with your design.

IDEATE: Explore a wide variety of possible solutions through generating a large quantity of diverse possible solutions, allowing you to step beyond the obvious and explore a range of ideas.

PROTOTYPE: Transform your ideas into a physical form so that you can experience and interact with them and, in the process, learn and develop more empathy.

TEST: Try out high-resolution products and use observations and feedback to refine prototypes, learn more about the user, and refine your original point of view. (According to Stanford University)

Whatever definition you subscribe to regarding the process of design thinking. A few things always remain constant. That, design thinking is always human centred, takes into consideration the technological feasibility and economic viability.

Across all industries, primary, secondary or tertiary sectors of business; design thinking is applicable. It is a way of thinking, a form of culture, a manner of approach to problem solving; that can be learned. Although, occasionally, one may need to call in a team of experts who are experienced and skilled in design thinking, to help the particular organisation. This manner of approach can be beneficial and help set the tone so problem solving.

Design thinking is a discipline, however, it does not mean that since it is applicable across all sectors of business, professional skills that are critical in those functions of business, all need to be replaced by designers.

Design thinking allows organisations to change their outlook in their solutions findings, to look beyond the immediate surroundings for solutions. It is an integration and collaboration of resources and skills, with an objective of finding human solutions.

 

Sustainability a key driver to brand success

According to Bloomberg, 8 out of 10 entrepreneurs who start business fail within the first 18 months. In South Africa, 86% of start-up businesses fail in their first year. The reasons why these businesses  fail may vary, but, here are five key reasons according to Eric T. Wagner:
 #1: Not really in touch with customers through deep dialogue.
#2: No real differentiation in the market (lack of unique value propositions)
#3: Failure to communicate value propositions in clear, concise and compelling fashion.
#4: Leadership breakdown at the top (founder dysfunction).
#5: Inability to nail a profitable business model with proven revenue streams.
To succeed, well established brands with a larger market share, including immerging brands, with a smaller balance sheet or less experience in the particular market, this could also include brands with less recognition. All need to have sustainability at the core of their existence.
Without a proper sustainability strategy or plan. The life of the particular brand may be at risk.
To big brands, sustainability could mean that the brand ensures that it follows three principles that govern the business model: Green economy, social conscience (CSI) including, health & wellness. However, for a small or emerging brands that are still aspiring to grow in to the market, sustainability may take a different turn/meaning. It means being able to articulate the business motivation, or rather, why they do what they are doing? Then taking into consideration first its consumers, and how to communicate the business motivation to them. Using medium(s) that are relevant to consumers, in order to sell the products or services. In essence, design thinking needs to be at the core of every small brand to spear-head sustainability and progression. According to David Kelley founder of IDEO,design thinking is defined as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Thus, the method focuses on three main elements of a product or solution: people, technology, and business.
When a brand has an effective sustainability plan. It is easier to build a self-sustaining consumer community, that uses its own social and mobile channels to amplify your brand story, In the process, building a reputation and increasing the social impact necessary to earn the brand more value.

A culture of innovation to unlock potential

In the current global financial, environmental and socio-economic challenges. We often hear words such as, tightening the belt, following austerity measures and cost-cutting as some of the proposed solutions. Very few times do we hear of innovation being proposed as a solution to our current challenges.
Let us take the South African context as an example, with our current challenges and how we can approach them differently? Think of the recent water shortages caused by draught? Is saving water the only solution, to keeping our reservoirs at high levels? What about the decline in matric pass rate in various provinces? Are there better ways to improve learning, besides increasing the hours, which learners spend in classroom? Are there other means that government can collect its revenue, remain profitable; than to increase tariffs more often? To what extend can innovation trigger an improved, yet different way of looking at finding solutions to problems?

Innovation is not limited to a few creative individuals, every one of us, has it in them, to be innovate; that is why innovation can be taught as a discipline.
With the acknowledgement of all conventional experts and various professions, be either economists, financial experts, environmentalists, engineers and others we did not mention. Innovation can be the underlying principle that guides and underpins the solutions process to curb various global challenges .
It sounds cliché, to offer innovation as a solution. In a world that professes to be highly innovative. Even though there are very few results to prove. However, innovation has become almost the buzz word lately, more organisations have even included the word innovation in their business strategies. With that said, even the very companies that are aware of the need for innovation and creativity, remain traditional and non-transformed to innovate.
Since innovation is enabled by and depends upon the connection of strategy, process, structure, capability, and the human element. A critical enabler or significant barrier to an organisation’s ability to innovate remains its culture. Many companies preach innovation, but, hardly have what it takes, nor an appetite for innovation. This is because many organisations have very little room for risk tolerance and flexibility to allow error. Of which, many creative and innovative solutions come up as a result of trial & error. When Steve Jobs started Apple Computers, he didn't have a large research centre that could produce feasibility studies that guaranteed future success of Apple. And Neither did Mark Zuckerberg, have a large research and development (R&D) centre to start a social platform that could now be attributed to having changed the landscape of social media forever, being Facebook.
So organisations that look only to proven methodologies for business solutions, are as it were paralysed to innovate. This is because innovation does not rely heavily on R&D, nor does it always look to proven methodologies to forecast solutions.
Another challenge for business that prevents the implementation of innovation is because, more often than not, organisations see innovation as incrementally better version, or, a brand extension or a new fruit flavour for example. Or processes that are built into the slow, organic growth line projections.

The innovation we are talking about here is as referred by Ken Perlman of Kotter International, "Ground-breaking innovations, things that cannibalise existing markets, things that disrupt the old models, and services that challenge the embedded ways of thinking and working".
However, very few companies are able to allow the so-called risk takers, of being able to try an innovation; due to rigid and strict rules, that govern and make up company culture. This leading to more individuals shy-away, and, losing confidence of sharing their new ideas, in fear of criticism or not been taken seriously.
In a conducive environment, where problem solving is not solely reliant on R&D. Innovation will thrive. Without barriers or limits. Allowing a collaborative approach to problem solving.
And before long, with proper guidance, solutions to problems will have been identified and hopefully implemented. Not because the solutions were found by a few individuals who are dubbed experts in certain areas, but, from a collective effort, under proper guidance. Building a culture of problem solving and to some extend boosting employee morale; because everyone will feel they have a bigger role to play. And can contribute solutions beyond their job description, to the business.
With such a culture that is open to ideas and risk tolerant, we can be confident that more business solutions will be found. Maybe not all problems will be resolved, however, a large part could be sorted.

The value of Brand Building

Iconic brands are instantly recognisable, globally renowned, and, able to stand the test of time. For iconic personal brands like Martin Luther, Steve Jobs and Nelson Mandela, the longevity and strength of their brand is not dependant on them being alive, nor do they lose status after their death. In fact, the dubbed King of Pop, Michael Jackson remains the highest selling artist after death.

 In South Africa we have a liberation stalwart Nelson Mandela as an example of an iconic global brand Without having a caption next to his picture, irrespective of whatever part of the world you stay, people almost immediately recognise Nelson Mandela. But, can we say the same about a South African brand that was once iconic in the country around the 80s to 90s called Chappies? What went wrong with Chappies? And why do most of our South African brands not reach an iconic status compared to other players/brands in the same industry elsewhere? Even with the best quality products we have in S.A, there’s a very few brands that reach iconic stage.

The argument may be that not all brands will reach iconic stage even with the best brand marketing  & quality of product brand. Whilst that may be true, it seems apparent that what distinguishes an iconic brand to an ordinary good performing brand, is twofold:

1.       FOCUS.

2.       Ability to define clearly and communicate consistently emotional benefits.

We live in what is called a global village, where brands cannot and should not overlook other markets outside their immediate market dominance. However, many strategies, campaigns for communication and advertising, are usually inward looking. Focusing at a very narrow market. Lacking the foresight, to focus on the future which is global, whilst still servicing local consumers.

Other marketers will also argue that using emotional and/or functional marketing will depend on what drives a potential customer to convert into a purchasing customer. Well, let’s take a look at some of the leading iconic brands, the likes of Apple, BMW and Coke, e.g. Coke offering “Happiness”, rather than a good tasting soft drink.

Most iconic brands are driven by an emotional function. That transcends beyond cultural even political barriers, and finds a connection that is much deeper than the function. However, a brand still needs to execute its functional benefits well, in order for emotional functions to complement and reinforce those functional benefits. Otherwise, consumers may find it difficult to be believe the emotional benefits if they do not see the connection with functionality.

Brands bridging the digital gap

 

By age group, millennials are between 15yrs – 35yrs. This means, millennials are now becoming the largest living generation, and we know them to be a body of digital natives. And are now about to move into their prime spending years.

This means that brands and business have no choice, but to start planning on how to target these millennials. With the aim of getting them to consume their brands, build loyalty and influence their decision making in choosing products and services.

Whilst it is very clear for us to define the millennials, it is not that easy to try and understand how best to target this age group. More so, if we take into consideration the survey done by Michael Osborne, CEO of SmarterHQ, trying to understand consumer trends. The research findings that surveyed 1 000 millennials in the US between the ages 18 – 35. One finding was that, when it comes to retail products like buying clothes etc., millennials are not brand loyalists. In fact, only 7% of millennials identify themselves as brand loyalists. That 75% of millennials are influenced to shop during a retail sale or promotion, and 30% classify themselves as bargain shoppers.

According to the same survey by Michael Osborne, millennials prefer personalised messages. Meaning, brands need to pay close attention to how consumers use information. Things like their browser experience, likes and purchasing patterns etc. Need to be closely monitored. 

In South Africa, a survey by GFK reveals that, these young consumers, aged 20-34 in 2016, represent 14 million consumers or 27% of the South African population and are responsible for some large shifts in mind-set that have had a major impact on brands requirements to win. Our data supports global finding that these millennials are better educated, 84% of millennials have completed a matric or some level of tertiary education compared to the older generations of 58% and 11% have completed a university or other post grad degree as compared to 7%. With greater access to education they are more self-assured and believe that they control their own destiny, this self-reliance is revealed in their lower value in faith unlike previous generations in South Africa.

Brands need to find a more compelling reason(s) that will draw consumers to their products and services. Those reasons need to be more than just about price and offering. But, also about creating an experience and is tylor-made to the consumer. For example, brand activations like Insta-meeting; where brands take the data gathered about the consumer, and uses it to create an experience that will connect the consumer to the brand at a more emotional level. As the English phrase says: “the devil is in the detail”. Using the same Insta-meeting example; from how the message is written, to the graphics used, going into which artists perform, the kind of beverages served, and how they are served. All the way to gifts and further surveys done at the particular activation. All these ‘softer’ issues together will either make or break the experience that may be the only opportunity that the brand had to make a meaningful lasting connection and loyalty with the potential consumer.

The reality is that millennials know exactly what they want, they have access to information in abundance, they prefer tailor-made solutions, and you cannot lie to them. They are well connected and will soon find out the truth. Brands that will succeed in building loyalty with millennials, are those that will pay close attention to the real needs of consumers. Make an effort to take the necessary steps in reaching their targeted consumers.

What could happen if SA was to fully emprace digitalization?

Children are the future of our nation and therefore, it is imperative that they are provided with necessary means to realise their potential - Forbes India. The statement is true for South Africa (SA)

 as well. What are these means that the children need, that are being spoken of? Answers may vary, but ultimately; they need connectivity in a form of digital connection. Simply put, we are talking about the internet and data.
There is rapid progress on digital migration in big cities like the Western Cape and Gauteng, as stats SA estimating that for the period 2016-2021, Gauteng and Western Cape are estimated to experience the largest inflow of migrants of approximately 1 595 106 and 485 560 respectively.
So, it is not the urban child we are talking about in particular, but the rural child who happens to not get a chance to move to the big city for one reason or another. How will he/she remain connected with the world and exposed to opportunities available to other children living in the urban city?
There is only one answer to the question; digital connectivity.
Taking into consideration the research results findings that were released in 2017,  that measured SA using indicators such as business competitiveness of countries across 260 indicators using data with partner institutions within countries. The research also took into account survey responses from 6 250 business executives. South Africa ranked 47 out of 63 countries in the IMD World Digital Competitiveness Ranking for 2017.
Such information tells us that South Africa is capable of effectively connecting the entire country, particularly the youth, through education. So, as to be better prepared and positioned for opportunities.
There is no doubt that youth unemployment could possibly be impacted positively, with the rise of digital. As we have seen in the past 10 yrs, due to digital, there has been new jobs created that never existed before in the past.
SA’s unemployment rate stands at 26.5% and, at 31.2%, is even higher among the youth. Graduates make up 7% of this number, according to Statistics SA’s fourth-quarter 2016 labour force survey.

The misalignment

Generation Y, refers to people born during the 1980s and early 1990s. The name is based on Generation X, the generation that preceded them. And now we have Gen Z these are people born between 1997 and 2012. So as of 2023, the Gen Z age range is anywhere from 11 to 26. They are commonly referred to as the first fully “digitally native” generation. But, why are these generations often misunderstood? To a point that this generation gets called names like "The lost Generation" as one politician, (The former Democratic Alliance Leader, Mmusi Maimane) in South African parliament once named them.
They are misunderstood because they always ask the question WHY? Many a times they are seen to be arrogant, inconsistent, unreliable and half hearted people. Who only want a flashy life and instant gratification.

And the most unfortunate of all this misunderstanding is that, this attitude also affects their relationship with employers in the workplace, therefore, affecting their longevity in a particular company. But, why is it like this? It is because these generations always believes:- There is a better way & they try to find it. Whilst the traditional set up believes:- Why change something that is working?

A large part of what sets these generation apart from other earlier  generations is that, they have what is called the entrepreneurial mind set. Meaning, they are: passionate, energetic, risk takers, determined, flexible, and optimistic. They are well informed for the most part, they consistently question the status quo. And many at times create their own destiny, not waiting for a particular system to define their future. We may refer to a few years back, taking the South African example in the higher education debacle that sparked the global #FeesMustFall trend on the X (formerly known as Twitter).

Perhaps the biggest question is, can business, political and social structures use the positive energy found in these generations positively? The most probable answer from those closest to their hierarchical structures of their organization, their obvious answer will be Yes. However, the statistics and the individual on the ground will have a different response. Because, the current reality is that more young people are either not included / participating in the mainstream economy. The rising youth unemployment figures is evidence of this reality, showing that 2022 was 29.81%, a 1.04% increase from 2021. South Africa unemployment rate for 2021 was 28.77%, a 4.43% increase from 2020.

What is evidently continuing to increase is more entrepreneur forums, conferences and programs; but, sad to say, that the results are either very slow or not impactful enough to translate to tangible and measurable results that impact the economy positively.
A few of this youth that manage to make it in the entrepreneur or business arena; are either a start up and remain in that phase for longer, and more often than not the business dies a few years later; or, those that stay active continue to make a very small turnover that often does not make much of a significant impact, at most employing maybe 3-6 people in their company.

Maybe to tackle this issue better we must start at the grass roots; from our society, to education system and to corporate. In South Africa, the Global Entrepreneurship Monitor research highlights that negative perceptions towards entrepreneurship as a career option are rife. With families and friends considering it to be low status or not socially accepted. in our education system, most of the programs do not have a course that teaches entrepreneurship. Whilst in the corporate, innovative thinking and risk taking is not popular, nor embraced. Decisions and ideas are always from top down, and never bottom up.

Will there ever be a solution to bridging this generational gap?