- Problem Innovation
Is there a problem you’re stuck on and can’t seem to find a solution to? If you’re like me, you may get stuck in analysis paralysis trying to figure out a problem. For others, you might want to jump into action immediately and go with the first solution that comes to mind. At Plaid, we like to tackle a good problem. While there are many approaches to solving a problem, I want to share one that has changed how I think about solutions: design thinking.
Design thinking is an approach to solving problems in an innovative and human-centered way. As chronicled in “The History of Design Thinking and IDEO” by Medium, it’s a concept that has been around for decades but was further developed by the design firm IDEO in the 1990s. Major companies soon started using it as a product development tool, and then it became more mainstream when IDEO’s CEO at the time, Tim Brown, published “Change by Design”. It is also now the foundational framework for Stanford University’s d.school, established by IDEO co-founder David Kelley, teaching and applying design thinking principles across industries.
Before learning about design thinking, I thought innovation only belonged to the great minds from our history books, like Thomas Edison, the Wright brothers or even modern-day innovators like Steve Jobs. Design thinking has shown me you don’t need to create the next iPhone to be innovative. So, why not us?
- Elements of Design Thinking
Creating innovative solutions is not about having a light-bulb moment (here’s looking at you, Thomas Edison) or throwing spaghetti at the wall to see what sticks. There are five phases to move you through the design thinking process: empathize, define, ideate, prototype, and test. Below is a high-level overview of each phase based on the Institute of Design at Stanford’s Introduction to Design Thinking: Process Guide.

Image Source: Design thinking process (Stanford’s d.school 2007)
- Emphatize: One of the cornerstones of design thinking is that it is human-centered. You are seeking a solution that meets the user’s needs. Rather than assume, you would gather information through research, observation, and engaging directly with the user.
- Define: Once you’ve collected information, you’ll start to make sense of it by identifying patterns and using these insights to define the problem you’re trying to solve. A clearly defined problem is half the battle in finding an effective solution.
- Ideate: This is often where our brains want to start, but the first two steps are essential to solving the right problem. Then you can use what you’ve learned and the problem you’ve defined to guide your brainstorming session. Nothing is off limits here; let the imagination run wild. You will narrow down ideas as you move to the Prototype phase.
- Prototype: Once you’ve chosen an idea to prototype, or even two or three, this is where you’ll build it. Quickly create a first rough draft that you can test. Once you gain feedback in the test phase, you may return to prototype some more to make adjustments.
- Test: Congrats! You’ve built a prototype, ready for user testing. This is another chance to empathize with and better understand your user. It’s okay for your prototype not to be perfect here; it shouldn’t be. Embrace failure — that’s how you’ll learn and refine.
Though these steps are listed in a particular order, you can’t truly design without getting a little messy. These phases are iterative. You may bounce back and forth between them, and once you reach the testing phase, you may need to use what you’ve learned and go through the cycle again.
- Applying it to Your Work
Though design thinking has been popular among product research and development, there are no limitations to what this framework can be applied to. We partner with all different types of organizations — corporations, higher education institutions, national fraternal organizations, non-profits, and more — and every single one can benefit from a design thinking approach.
First, start with a guiding question. What are you wondering about the problem that you’re trying to solve? For example, how might we design the ideal wallet? From there, you’ll work through the five phases. Finding the right guiding question is important. Brainstorm with your team to workshop your question to make sure you’re all on the same page before starting. Let’s explore some ways your organization might use design thinking.
How might we use design thinking to improve the services we offer?
From Fortune 500 companies to entrepreneurs, design thinking can be a transformative tool in the creation of products and services. What defines a great product? It should have value or fill a need for the customer. You can do that using this human-centered approach to understand user pain points, needs, and desires to create a product or service that will do just that.
How might we use design thinking to solve human issues?
Your end user doesn’t always need to be a customer. Design thinking can also be applied to personal and community development. It can be used to improve employee experiences, address cultural issues, or guide leaders in serving their communities. Individuals can also use it for personal development as outlined in “Designing Your Life” by Bill Burnett and Dave Evans.
How might we use design thinking in developing educational programs?
Similar to the curriculum development framework of Backward Design, design thinking begins with the end in mind to address the needs of the end user or learner. This lends itself well to designing educational programs that will solve a problem or fill a gap. It can also be an experiential learning tool. “Designed to Learn” by Lindsay Portnoy explores the use of design thinking in the classroom, showing educators how to collaborate with students to apply their learning.
Regardless of the type of problem you are trying to solve, design thinking provides a framework that is collaborative, iterative, and most importantly, human-centered. The user’s needs should be front and center throughout the five phases. This is especially important to emphasize as AI becomes increasingly integrated into our society. I use AI as much as the next person from brainstorming dinosaur birthday party activities to designing my front landscaping (those are both real!) but there is one thing it cannot do. It cannot think creatively. It cannot innovate. To design something entirely new is uniquely human and that is beautiful.