The Design of Business by Roger Martin is among the most fundamental and comprehensive books ever written about the subject of business design and design thinking.
The book begins by clearly explaining the knowledge funnel concept. The basis of the knowledge funnel is that new business knowledge begins as a mystery – scattered and unorganized. The mystery, when advanced through the knowledge funnel, is refined into a workable and more manageable order called a heuristic. When focused even further, the heuristic becomes an algorithm, which breeds ultimate productivity; a strict, “cookie-cutter” process that produces consistent results. Computer code, for example, is an algorithm which, without thought, can perform at break neck speeds and produce the same results over and over again.
Martin then explains that most companies, whether operating as a heuristic or an algorithm, focus on exploiting their current level of knowledge and focus on gaining mastery of that particular knowledge. Innovative companies, on the other hand, exploit their current knowledge in the same way, however they also dive back into the mystery portion of the knowledge funnel and explore new opportunities to advance and refine new knowledge through the knowledge funnel.
Both exploitation and exploration are equally as important – the companies who successfully balance the two, are design thinking companies. Design thinking companies who pursue innovation in this way will discover new concepts for products and services that could make their competitor’s offerings obsolete – which is why Martin argues that “design thinking is the next competitive advantage”.
Creating a design thinking company, Martin points out, is very much a game of balance. The company which balances exploration and exploitation must also balance Invention of business and administration of business, originality and mastery, and validity and reliability. These are all balanced by the company’s design thinking employees, who themselves use a balance of analytical and intuitive thinking.
At the heart of design thinking, Martin notes, is the use of abductive logic which is best described as “logical leaps of the mind”. Abductive logic is concerned with the future, but it also incorporates deductive and inductive logic which provides reliable proof based on the past. As pointed out by philosopher Charles Sanders Pierce, its not possible to prove any idea in advance: all new ideas can only be validated by the unfolding of future events. However, to advance knowledge and create truly innovative solutions, we must make an “inference to the best explanation” and imagine a heuristic for understanding the mystery. Abuctive logic then, sits in between past-driven analytical thinking and knowing-without-reasoning intuitive thinking.
To become a design thinker, Martin describes that you must develop the stance, tools, and experiences that facilitate design thinking. Stance being your view of the world and your role in it. Tools being the models you use to understand your world and organize your thinking and experiences which develop your skills and sensitivities over time. In the final chapter of the book, Roger explains, in detail, how to develop yourself as a design thinker. Throughout the book he gives real life examples of design thinking in the business world and further explains the advantages of design thinking and how to balance reliability and validity.
The Design of Business is more than just a must read for any design or business professional. Business professionals will gain insight into how to build innovative organizations and design professionals will benefit by learning how to apply their pre-established design thinking to the business world and make a real lasting difference. Roger Martin is at the forefront of the business design world and to have his complete and comprehensible guide about the subject is an absolute pleasure. Design thinking is not just a competitive advantage; its a lifestyle, and a tool that will act as a catalyst to help you design a better future.
Jesse is a graphic designer who is passionate about developing business
concepts through the use of design. A graduate of the Design Management program at George Brown College in Toronto, Jesse has learned to bring business concepts to reality in unconventional but effective ways. After he receives his MBA, he aspires to become a business design consultant, bringing design thinking and practices into the corporate world. His favourite negotiating technique is the triangle choke.
“Design is everything, and everything is design. By integrating form,
function and design thinking & practices into business as usual, you can
create better products, procedures, strategies, and services which result in
a happier end user.” – Jesse Thompson