The 5 Phases of Design Thinking

Analyzing the value of the design thinking process and solutions for marketers in better understanding your consumers.

What is Design thinking

Design Thinking is a process concerned with solving complex problems in a highly consumer-centric way. If you work in design or innovation in any capacity, you’ve probably heard of, and even leveraged, Design Thinking.

At the very least, you’ve heard people talk about it so much that in some circles, it’s been relegated to buzz language with little meaning. But what is the real, honest value of Design Thinking, and in what contexts is it particularly useful?

What’s special (but not radical) about Design Thinking is that designers—and all creative people for that matter—have been using these methods of creative development intuitively since the beginning of time. Design Thinking, in many ways, is simply an articulation and codification of the creative process that drives all human endeavors.

What’s special (and in fact radical) about Design Thinking is that it puts human beings first, the people for whom we ultimately solve problems. In the current landscape of big data and depersonalization, this is a surprisingly radical act.

If we decouple the discipline of design from the people it serves, it is nothing but a hollow aesthetic exercise.

Another way that Design Thinking is still a radical act is that it is rooted in questioning: It questions the problem, questions the assumptions, and questions the implications.

Consequently, Design Thinking is a powerful tool for tackling all kinds of challenges that are ill-defined or complex by reframing the problem in human-centric ways.

The Five Phases of the Design Thinking Process

The Design Thinking process follows five fundamental phases: Empathize, Define, Ideate, Prototype, and Test.

These phases are non-linear and iterative, meaning teams can revisit earlier stages based on new insights gained throughout the process.

While these steps provide a structured approach to problem-solving, Design Thinking is ultimately about flexibility, creativity, and a deep focus on user needs.

Let’s explore each phase in depth.

Phase 1: Empathize – Understanding the user

The first step in Design Thinking is about deeply understanding the people you’re designing for.

This goes beyond demographics or surface-level preferences—it’s about stepping into their shoes, uncovering their motivations, frustrations, and desires.

Without genuine empathy, any solution is just an educated guess.

To build this understanding, designers use a mix of these research methods:

User interviews and surveys – Direct conversations help uncover the “why” behind user behaviors.
Observational studies – Watching how people interact with a product, service, or environment reveals things they might not articulate in words.
Empathy maps – These visual tools capture what users think, feel, say, and do, helping teams identify deeper emotional drivers.
Customer journey mapping – Laying out the full user experience highlights pain points and missed opportunities.

The key to this phase is listening without assumptions. Instead of jumping to conclusions about what users need, teams must engage with real people, ask thoughtful questions, and observe behaviors.

Be careful not to rely too much on digital research or secondhand data. Real human interaction is irreplaceable in uncovering insights that will shape meaningful solutions.

Phase 2: Define – Framing the problem

Once your team has gathered a wealth of user insights, it’s time to synthesize that information into a clear, actionable problem statement. This phase is about turning observations into a focused challenge—one that inspires creative solutions.

A strong problem statement should:

Be human-centered, focusing on the needs of real people rather than business goals.
Avoid assumptions, using research-backed insights rather than pre-existing biases.
Provide direction without limiting creativity, allowing multiple possible solutions.

A great way to frame a problem is with a “How Might We” (HMW) statement. This keeps the challenge open-ended but still specific. For example:

❌ “We need to increase sign-ups by 20%.”
✅ “How might we make signing up more seamless and engaging for first-time users?”

A common mistake is defining problems that are too broad or too narrow. A problem like “How can we improve the entire customer experience?” is too vague to guide action, while “How can we redesign the checkout button?” might be too limiting.

The goal is to strike a balance, ensuring the problem is focused enough to be solvable but open enough to inspire a range of ideas.

Phase 3: Ideate – Generating creative solutions

With a well-defined problem in hand, it’s time to start brainstorming solutions. The ideation phase is about exploring possibilities, pushing beyond obvious answers, and encouraging unconventional thinking.

There are many ways to spark creativity during this stage:

Brainstorming sessions – Teams generate as many ideas as possible, without judgment or filtering.
Mind mapping – Visualizing connections between ideas helps uncover unexpected insights.
Worst possible idea – By deliberately coming up with terrible ideas, teams can reverse-engineer innovative solutions.
SCAMPER technique – This method challenges teams to Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, or Rearrange elements of an existing solution.

A common challenge in this phase is the tendency to judge ideas too quickly. It’s natural to want to focus on feasibility, but at this stage, the priority is volume over perfection. Filtering and refining ideas comes later—right now, the goal is to think big.

That said, it’s equally important not to get stuck on one idea too soon. The best solutions often come from unexpected angles, so teams should remain open to exploring multiple directions before moving forward.

Phase 4: Prototype – Bringing ideas to life

Ideas alone are not enough—they need to be translated into tangible prototypes that can be tested and refined. Prototyping allows teams to experiment quickly, learn from mistakes, and refine solutions based on real-world feedback.

Prototypes can vary in complexity depending on the stage of development:

Low-fidelity prototypes – These are quick, inexpensive representations, such as paper sketches, wireframes, or role-playing scenarios. They allow for rapid exploration without heavy investment.

For example, a restaurant owner sketches a new menu layout on a napkin to test how customers might navigate the sections before investing in professional design.

High-fidelity prototypes – These are more detailed, interactive models, such as clickable digital wireframes or working beta versions. These help simulate real user interactions and test more nuanced elements.

For example, a travel app team builds a clickable prototype in Figma, allowing users to go through the flight booking process and provide feedback before coding the final product.

A common misconception about prototyping is that it needs to be polished from the start. In reality, rough, fast iterations are more valuable than spending weeks perfecting a single prototype.

To make the most of this phase, teams should:

Test multiple variations, not just one, to compare effectiveness.
Get user feedback early, rather than waiting until everything is “finished.”
Embrace failure as part of the process—every prototype is a learning opportunity.

Don’t over-engineer too soon. Prototypes should be just detailed enough to test ideas, but simple enough to change quickly.

Phase 5: Test – Validating the solution

The final step in the Design Thinking process is testing the prototype with real users to gather feedback and refine the solution. Testing isn’t about proving that a design “works”—it’s about identifying what doesn’t work and improving it.

There are multiple ways to gather insights during testing:

A/B testing – Comparing different versions of a solution to see which performs better.
Usability testing – Observing users as they interact with the prototype to spot issues.
Feedback sessions – Direct conversations help uncover user frustrations and areas for improvement.

Testing should be iterative, meaning that after each round of feedback, teams should refine and retest. The process doesn’t end until the solution truly meets user needs.

Don’t fall into a pitfall of treating feedback as final. No design is perfect on the first attempt, and even a well-received solution can usually be improved.

Stay open to change, learning from users rather than defending the original idea.

The Design Thinking Mindset

Design Thinking is more than a process—it’s a way of thinking that encourages creativity, adaptability, and problem-solving through a user-centered lens.

Successful teams don’t just follow the steps; they embrace a mindset that prioritizes real human needs, thrives in uncertainty, values diverse perspectives, and takes action quickly.

These four fundamental principles shape how Design Thinking is applied in real-world problem-solving:

A human-centered approach

At its core, Design Thinking is about prioritizing people over processes. Instead of assuming what users need, it requires direct engagement and observation to uncover real pain points and unmet needs.

This approach ensures that solutions are rooted in actual experiences rather than assumptions or internal business goals.

Shifting to a human-centered mindset means asking questions like:

“What problem are we solving for the user?” instead of “What features can we add?”
“How does this solution fit into their daily lives?” rather than “How does this align with our internal strategy?”

When design is built around real human experiences, the result is products and services that are not only functional but deeply impactful.

Embracing ambiguity and iteration

Not all challenges come with clear answers, and the best solutions often emerge from uncertainty. Design Thinking encourages teams to experiment, test, and refine rather than waiting for a perfect, risk-free solution.

This iterative mindset will allow your team to:

Explore multiple angles before committing to a single solution.
Treat failures as learning opportunities rather than roadblocks.
Remain flexible and open to new insights, even if they challenge original assumptions.

Instead of asking, “What’s the right answer?”, your team should ask, “What can we learn from this version, and how can we improve it?”

Collaboration and cross-disciplinary thinking

Innovative solutions don’t come from a single perspective—they emerge when diverse disciplines work together. Design Thinking breaks down silos and fosters collaboration across teams, industries, and even end-users.

By integrating insights from engineering, psychology, business, and design, your team can:

Challenge assumptions from different viewpoints.
Tap into expertise beyond traditional roles.
Build solutions that work across multiple touchpoints.

By collaborating and co-creating solutions with the people who will use them, you ensure practical, effective, and meaningful outcomes.

Action-oriented problem solving

In Design Thinking, progress happens through action, not discussion. The emphasis is on prototyping, testing, and refining rather than endless theorizing.

This approach helps teams avoid analysis paralysis and move quickly from idea to execution.

An action-driven mindset:

Tests ideas early and often, reducing the risk of costly mistakes later.
Encourages quick, low-risk experimentation before committing resources.
Turns insights into tangible outcomes that can be measured and improved.

Instead of asking, “Will this work?”, your team should ask, “How can we test this tomorrow?”

Popular Design Thinking Frameworks

Different organizations have developed structured frameworks for applying Design Thinking. While they share common principles, they offer unique approaches tailored to different needs.

Stanford d.school’s 5-Phase Model

Developed at Stanford’s Hasso Plattner Institute of Design, this widely recognized framework structures Design Thinking into five iterative phases:

1️⃣ Empathize – Understand users through research and observation.
2️⃣ Define – Synthesize insights into a clear problem statement.
3️⃣ Ideate – Generate multiple possible solutions.
4️⃣ Prototype – Build tangible models to test ideas.
5️⃣ Test – Gather feedback and refine the solution.

This model is particularly useful in education and structured innovation processes, as it provides clear steps while remaining flexible.

IDEO’s Human-Centered Approach

IDEO, the consultancy that popularized Design Thinking, follows a three-phase model that emphasizes human insight and rapid iteration:

1️⃣ Inspiration – Research and observe real user behavior to uncover deep insights.
2️⃣ Ideation – Explore creative possibilities, challenge assumptions, and prototype.
3️⃣ Implementation – Refine the solution and scale it for real-world use.

IDEO’s approach is less rigid than Stanford’s and focuses heavily on storytelling, empathy, and iterative prototyping.

The Double Diamond Model by the Design Council

Created by the UK Design Council, this model emphasizes divergent and convergent thinking, helping teams avoid jumping to conclusions too soon:

🔹 Discover – Research broadly to understand the full problem space.
🔹 Define – Narrow focus to a specific, solvable problem.
🔹 Develop – Brainstorm and prototype multiple solutions.
🔹 Deliver – Finalize, test, and implement the best solution.

This framework is particularly useful for organizations tackling complex, large-scale challenges, as it prevents teams from rushing into solutions prematurely.

Design Thinking vs. Agile vs. Lean Startup

Design Thinking is a powerful approach to problem-solving and innovation, but it is often compared to Agile and Lean Startup, two other methodologies widely used in product development and business strategy.

While all three emphasize iteration, user feedback, and adaptability, they serve different purposes and are applied at different stages of the creative and development process.

Here’s how they stack up against each other:

Feature	Design Thinking 🧠	Agile ⚡	Lean Startup 🚀
Primary Focus	Understanding user needs and designing innovative solutions.	Developing a working product through continuous iteration.	Testing business assumptions with rapid experiments.
Main Objective	Solve complex, ill-defined problems with a human-centered approach.	Deliver small, incremental product improvements efficiently.	Validate ideas quickly and determine if they should pivot or continue.
Core Principle	Empathy & Innovation	Continuous Delivery	Build-Measure-Learn
Process Structure	5 Stages: Empathize → Define → Ideate → Prototype → Test.	Iterative sprints (Scrum/Kanban).	Experiment-driven loop: Build → Measure → Learn.
Speed of Execution	Flexible (Takes time to explore deep user insights).	Fast-paced (Frequent product releases).	Extremely fast (Testing assumptions ASAP).
End Goal	A well-researched, user-friendly solution that meets real needs.	A functional, continuously improving product.	A validated business idea that is worth scaling.
Best For…	Problem exploration & early-stage ideation when user needs are unclear.	Ongoing product development that requires constant iteration.	Startups & new products testing market demand with minimal investment.
Key Outputs	User insights, prototypes, and tested concepts.	Working product increments with improvements.	Validated (or invalidated) business ideas, MVPs, and pivot decisions.
Key Tools Used	Empathy Maps, Journey Maps, Brainstorming, Prototyping, User Testing.	Scrum, Kanban, User Stories, Sprints, Retrospectives.	MVPs, A/B Testing, Customer Feedback, Pivot Metrics.
Example Scenario	You want to redesign a public park: You research what users need (benches, lighting, playgrounds), create different layouts, and test small-scale models before construction.	You’re improving a mobile app: Every two weeks, you release small updates (new features, bug fixes) and refine the app based on user feedback.	You want to start a new coffee shop: Instead of opening a full store, you set up a small coffee cart to test demand before investing in a full café.

Understanding how Design Thinking interacts with Agile and Lean Startup helps teams apply the right methodology at the right time or combine them for maximum impact.

Common Myths and Misconceptions About Design Thinking

Despite its widespread adoption, Design Thinking is often misunderstood. Some dismiss it as a buzzword, while others believe it’s only useful for designers.

These misconceptions can prevent organizations from fully leveraging their power to drive innovation and solve complex problems.

Let’s debunk some of the most common myths.

Myth #1: “Design thinking is only for designers”

Many assume that Design Thinking is exclusively for graphic designers, UX professionals, or product designers, but that couldn’t be further from the truth.

While designers were among the first to formalize the process, Design Thinking is a problem-solving approach that can be applied in any industry and by any team.

Here’s who would benefit from Design Thinking:

Business leaders → To reimagine customer experiences and improve operations.
Educators → To design better learning environments and teaching methods.
Healthcare professionals → To improve patient experiences and streamline processes.
Software developers → To build more intuitive, user-friendly products.
Marketing teams → To craft campaigns that truly resonate with audiences.

📌 Example: A hospital could use Design Thinking to redesign the emergency room experience, reducing wait times and improving patient satisfaction. This would have nothing to do with aesthetics—it would be about restructuring processes based on human needs.

Myth #2: “It’s just another business buzzword”

Some people dismiss Design Thinking as just another trendy corporate term, assuming it lacks substance.

This misconception arises when companies superficially adopt the process without truly integrating it into their culture.

Here’s why Design Thinking is more than a buzzword:

It has a proven track record. Companies like Apple, Google, and Airbnb have successfully used it to create game-changing innovations.
It’s backed by research. Leading institutions like Stanford d.school and IDEO have studied and refined its methods for decades.
It produces tangible results. From developing new products to solving large-scale social challenges, Design Thinking delivers measurable impact.

📌 Example: A company launching a subscription service assumes low sign-ups are due to pricing, so they offer discounts. After user testing, they discover the real issue is a confusing onboarding process. Instead of lowering prices further, they redesign the sign-up experience, leading to higher retention.

Myth #3: “It’s a linear process”

Because Design Thinking is often visualized as a five-phase framework (Empathize, Define, Ideate, Prototype, Test), some mistakenly believe it must be followed step by step in a strict order.

In reality, Design Thinking is highly iterative and non-linear.

Here’s how the process actually works:

Teams often jump between phases—new user insights may require redefining the problem, or testing may lead back to ideation.
Some steps happen in parallel—prototyping can begin before every detail is fully defined.
Failures lead to refinements—feedback loops drive continuous improvement.

📌 Example: A tech company working on a new app might test an early prototype, discover usability issues, and then go back to redefining the problem before creating another version.

How Companies Are Using Design Thinking to Drive Innovation

Design Thinking has transformed industries by helping companies deeply understand their users and create innovative solutions.

Here are three examples of businesses that successfully leveraged Design Thinking to rethink their strategies, products, and user experiences.

Netflix: Reinventing the viewing experience

Netflix has consistently applied Design Thinking to stay ahead in the entertainment industry. When it launched in the late 1990s, its biggest competitor, Blockbuster, required customers to visit physical stores to rent and return DVDs.

Netflix identified a key frustration—people wanted convenience—and introduced a DVD subscription model with home delivery.

As technology evolved, Netflix anticipated the shift toward instant access to content. Instead of optimizing its DVD rental service, it pivoted to on-demand streaming, eliminating wait times and making entertainment more accessible.

Netflix continued refining its service by using data-driven insights and user feedback to introduce:

Personalized recommendations, improving content discovery.
Auto-play trailers, helping users decide what to watch more quickly.
Original content production, responding to audience demand for exclusive, high-quality series.

By constantly observing user behavior and adapting, Netflix transitioned from a DVD rental company to the dominant force in global streaming.

Airbnb: Building trust in the short-term rental market

Airbnb’s early struggles weren’t due to a lack of demand, but rather a lack of trust between hosts and guests. Travelers hesitated to book because listings often featured poor-quality photos, vague descriptions, and no credibility indicators.

Using Design Thinking, Airbnb’s founders immersed themselves in the customer experience by traveling to listings and identifying key issues firsthand.

They discovered that professional-looking images and clearer descriptions of properties significantly increased bookings.

Airbnb took action by:

Providing high-quality photography services to hosts, making listings more appealing.
Encouraging detailed descriptions, including amenities and local neighborhood insights.
Introducing guest reviews and host verification, establishing credibility and trust.

These small but impactful changes doubled Airbnb’s revenue within a week, proving that the issue wasn’t the service itself, but how it was presented.

By applying empathy and rapid testing, Airbnb turned an underperforming platform into a global leader in hospitality.

IBM: Simplifying cloud development for enterprises

IBM has long embraced Design Thinking to align business strategy with user experience.

In 2014, the company applied this approach when developing Bluemix (now IBM Cloud), a platform designed to help enterprise developers build cloud applications more efficiently.

Through extensive user research, rapid prototyping, and iterative feedback, IBM identified key developer pain points:

Complex infrastructure setups that delayed project timelines.
Limited access to development tools, slowing down innovation.
Scalability challenges, making it difficult to expand applications.

Using these insights, IBM created Bluemix with:

Seamless multi-cloud deployment, reducing setup time.
A catalog of 150+ development tools, enabling faster application building.
A DevOps-friendly environment, streamlining scalability.

Bluemix attracted over a million developers, demonstrating how Design Thinking can drive user-centered innovation in enterprise technology.

Design Thinking Is Intuitive and Natural

Don’t get caught up in the academic dialogue around Design Thinking; it can be needlessly intimidating and can undermine its own fundamental purpose.

Embracing Design Thinking as a way to structure and guide creative development strengthens teams, fosters collaboration, and builds designer confidence. Most importantly, it cultivates a resilient design culture and drives solutions that can significantly improve people’s lives.