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Design thinking for innovation: Considering distinctions, fit, and use in firms

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  • Nakata, Cheryl

Abstract

As firms struggle with high failure rates when developing new products and services, they seek new approaches to innovation. One method garnering attention is design thinking (DT), a design-based method of problem solving. Businesses as varied as Airbnb and PepsiCo are embracing DT in growing numbers, but some may be joining the bandwagon without understanding its distinctions compared to the main alternative, the Stage-Gate (SG) methodology. SG, a project-review process, is used in many firms today to create innovations. To guide managerial consideration of DT, this article provides an explanation of DT as compared with SG, a framework to assess DT’s fit with the firm, and ways DT may be effectively used.

Suggested Citation

  • Nakata, Cheryl, 2020. "Design thinking for innovation: Considering distinctions, fit, and use in firms," Business Horizons, Elsevier, vol. 63(6), pages 763-772.
    • Handle: RePEc:eee:bushor:v:63:y:2020:i:6:p:763-772
    DOI: 10.1016/j.bushor.2020.07.008
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    References listed on IDEAS

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    1. Mortati, Marzia & Magistretti, Stefano & Cautela, Cabirio & Dell’Era, Claudio, 2023. "Data in design: How big data and thick data inform design thinking projects," Technovation, Elsevier, vol. 122(C).
    2. Dedhy Sulistiawan & Felizia Arni Rudiawarni & Bruno S. Sergi, 2023. "Intangible Assets and Crash Risk: The Case of Low Intellectual Capital Firms in Indonesia," The American Economist, Sage Publications, vol. 68(2), pages 216-232, October.
    3. Cai, Ying & Lin, Jun & Zhang, Ruxin & Qiao, Jianqi & Shang, Yanying, 2025. "When does design thinking promote radical and incremental innovation? The moderating role of the innovation stage," Technovation, Elsevier, vol. 146(C).
    4. Dominika Siwiec & Andrzej Pacana, 2025. "Life Cycle-Based Product Sustainability Assessment Employing Quality and Cost," Sustainability, MDPI, vol. 17(8), pages 1-26, April.
    5. Samadhiya, Ashutosh & Agrawal, Rajat, 2022. "Developing a handloom through d.schools design thinking approach," Technology in Society, Elsevier, vol. 71(C).
    6. Lemons, Camilla & Hudson, Kayleigh & Mazzei, Matthew J., 2025. "Experience design: Creating value for nonprofits," Business Horizons, Elsevier, vol. 68(5), pages 627-643.
    7. Granato, Giulia & Fischer, Arnout R.H. & van Trijp, Hans C.M., 2022. "“Misalignments between users and designers as source of inspiration: A novel hybrid method for physical new product development”," Technovation, Elsevier, vol. 111(C).

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