TABLE OF CONTENTS
ABSTRACT. ii
TABLE OF CONTENTS………………………………………………………iii
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study. 1
1.2 Statement of the Problem.. 4
1.3 Objectives of the Study. 5
1.4 Research Questions. 6
1.5 Research Hypothesis. 6
1.6 Significance of the Study. 7
1.7 Scope of the Study. 8
1.8 Limitations of the Study. 8
1.9 Organization of the Study. 8
1.10 Definition of Terms. 9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction. 11
2.2 Theoretical Review.. 11
2.2.1 User-Centered Design Theory. 11
2.2.2 Cross-Disciplinary Collaboration Theory. 12
2.2.3 Human-Centered Innovation Theory. 13
2.3 Conceptual Review.. 13
2.3.1 Overview.. 13
2.3.2 Understanding Design Thinking. 14
2.3.3 Empathy and User-Centered Design. 14
2.3.4 Ideation and Creativity. 14
2.3.5 Prototyping and Iterative Development 15
2.3.6 Collaboration and Interdisciplinary Teams. 15
2.3.7 Design Thinking and Market Success. 15
2.3.8 Overcoming Challenges. 15
2.3.9 Scaling Design Thinking. 16
2.4 Empirical Review.. 16
2.5 Summary of Literature Review.. 18
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction. 20
3.2 Research Design. 20
3.3 Population of the Study. 21
3.4 Sample Size and Sampling Technique. 21
3.5 Data Collection Methods. 22
3.6 Research Instruments. 22
3.7 Data Analysis Techniques. 23
3.8 Validity and Reliability of the Study. 23
3.9 Ethical Considerations. 24
3.10 Limitations of the Study. 24
3.11 Summary. 25
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.1 Preamble. 27
4.2 Socio-Demographic Characteristics of Respondents. 27
4.3 Analysis of the Respondents’ Views on Research Question one: 32
4.4 Testing Hypothesis. 46
4.5 Discussion of findings. 48
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings. 52
5.2 Conclusion. 53
5.3 Recommendations. 53
REFERENCES. 55
APPENDICES. 59
Appendix I: Research Questionnaire. 59
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
A product is defined as “any item that can be presented to a market for consideration, acquisition, use, or consumption and that can satisfy a want or need” (Armstrong and Kotler, 2009). Products can be natural resources such as crude oil, scenic beaches, or mountains that attract tourists. They can also be man-made, such as graduates of educational institutions, political party candidates, or factory-produced objects. Goods manufactured in factories, such as automobiles, are often made up of multiple components and are intended to suit people's requirements and desires.
Product development is an important aspect of marketing that focuses on creating new products or upgrading existing ones in order to offer value and meet specific consumer wants. According to Anyanwu (1996), this process involves predicting market needs and taking steps to identify and produce products and services that most effectively meet consumer expectations. Ulrich and Krishnan (2001) describe the goal of the product development process as the translation of market opportunities and assumptions regarding product technology into a market-ready product.
In the ever-evolving business environment, it often becomes a task to design and launch new successful products. Traditional product development processes are normally market and technology driven, and therefore more often than not can trigger incremental improvements instead of true innovations (Ali, 2022). In contrast, design thinking has become a crucial methodology in modern product development, changing the way companies imagine, develop and improve their products.
Design thinking is characterized as a collaborative, user-centered approach based on a deep understanding of user wants and requirements (Beckman, 2020). It is used to solve often poorly formulated problems in an organizational or social environment. The problem-solving process includes the investigation phase in which decisions may be made that are not absolutely necessary and one may even ignore the definition of the problem (Nakata, 2020).
This approach emerged in the late 20th century when researchers began to explore the basic cognitive strategies of designers (Lal, 2021). In recent years, the concept of design thinking has expanded beyond its traditional boundaries (Hall, 2020). Today it is recognized as a multi-layered cognitive process for imagining new possibilities, which means integrating design culture and its methods into areas such as business innovation (Morris & Reid, 2020) It is not a predefined series of orderly steps, but represents a human-centered methodology that integrates empathy, creativity, and rationality to tackle complex problems and generate innovative solutions. It places users in the middle of the product development process. Gaining knowledge about users' preferences and problems allows a company to develop products that are most attractive to the target audience. This user-centric approach has proven to be a critical enabler as customers want personalization and customization more than ever (Ali, 2022).
Therefore, design thinking activities in the context of new product development include various activities that arise from idea generation from prototyping to market launch. Design thinking therefore not only leads to better form and function of products, but also creates a better understanding of the needs and therefore the behavior of consumers (Brown, 2008).
This methodology includes empathy as one of its main principles, as designers and developers should think like users to better understand hidden needs and desires. Ethnographic studies, user interviews, observations, etc. used in the design thinking process help design thinkers understand user behavior, drivers and challenges faced by users. These help lay the foundation for ideation and solution finding to have products that meet the target market. Putting the user at the center of the development process means that companies can design products that solve real problems and provide deep value propositions (Kelley & Kelley, 2013).
Design thinking also promotes a culture of innovation that requires risk-taking and testing to find out what works and what doesn't. Rapid prototyping and testing during idea development reduces the opportunity to promote and bring to market ideas that are not favored by the market. Such an approach not only reduces the time needed to create the system, but also improves the effectiveness and significance of the final project. In this way, the focus on uncertainty as a positive characteristic and the pursuit of improvement and constant improvement leads to a more flexible attitude when designing a product (Norman & Verganti, 2014).
Against this background this study seeks to examine the role of design thinking in new product development.
1.2 Statement of the Problem
The role of design thinking in new product development is increasingly crucial in today's competitive market landscape. The problem lies in traditional product development approaches often failing to adequately address user needs and market demands. Without incorporating design thinking principles, companies risk creating products that may not resonate with users, leading to wasted resources and missed opportunities for innovation. Furthermore, the lack of a structured design thinking process can result in products that are not user-centric, lacking in usability, and ultimately failing to gain traction in the market. Therefore, understanding how design thinking can be effectively integrated into new product development processes is essential for organizations striving to deliver successful, user-centered products (Brown, 2008).
Moreover, the challenge extends to integrating design thinking seamlessly into the existing product development frameworks within organizations. Many companies struggle with adopting and implementing design thinking methodologies due to cultural resistance, lack of expertise, or rigid organizational structures. This resistance often stems from a mindset focused solely on technical feasibility and cost considerations rather than prioritizing user empathy and creative problem-solving. Consequently, there is a pressing need to explore strategies for overcoming these barriers and fostering a culture of innovation and user-centricity within organizations. Addressing this problem requires a comprehensive understanding of how design thinking principles can be effectively applied throughout all stages of the product development lifecycle to drive meaningful innovation and create products that truly resonate with users (Kelley & Kelley, 2013).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine The Role of design thinking in new product development. Specific objectives of the study are:
- 1. To investigate the impact of design thinking on the user-centricity of new product development (NPD) projects.
- 2. To analyze the correlation between the use of design thinking and the success of new products.
- To evaluate the effectiveness of design thinking in fostering innovation and creativity within NPD teams.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- 1. To what extent does design thinking empower NPD teams to develop products that truly address user needs and solve their problems?
- 2. Is there a statistically significant difference in the success rate of new products developed using a design thinking approach compared to traditional methods?
- How does the implementation of design thinking within NPD teams impact the generation of novel product ideas and the overall creative process?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between design thinking and new product development.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Marketing sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analyzed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organizations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Innosons Motors. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
1.10 Definition of Terms
- 1. Product:
A product is defined as any item that can be presented to a market for consideration, acquisition, use, or consumption and that can satisfy a want or need.
- 2. Product Development:
Product development is an important aspect of marketing that focuses on creating new products or upgrading existing ones in order to offer value and meet specific consumer wants.
- 3. Design Thinking:
Design thinking activities in the context of new product development include various activities that arise from idea generation from prototyping to market launch.