Flevy Management Insights Case Study
Design Thinking Revamp for Biotech Firm
     David Tang    |    Design Thinking


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Design Thinking to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The biotech company faced challenges in innovation due to outdated Design Thinking processes, resulting in missed drug development opportunities and slower time-to-market. By adopting a more agile and user-centered Design Thinking approach, the company accelerated its innovation pipeline by 25% and reduced time-to-market for new therapies by 18%, highlighting the importance of adaptability and collaboration in driving successful outcomes.

Reading time: 6 minutes

Consider this scenario: The organization is a biotech company that has recently expanded its research and development efforts.

Despite this growth, the organization has struggled to innovate at the pace of market demands due to outdated and rigid Design Thinking processes. This has led to missed opportunities in drug development and a slower time-to-market for new therapies. The company aims to adopt a more agile and user-centered approach to Design Thinking to enhance its innovation pipeline.



Based on the provided context, one could hypothesize that the biotech firm's challenges stem from a lack of cross-functional collaboration and a design process that is not sufficiently iterative or patient-centric. Additionally, there may be a cultural resistance to adopting new Design Thinking methodologies that emphasize rapid prototyping and continuous feedback.

Methodology

A 6-phase approach to Design Thinking is proposed to address the biotech firm's challenges:

  1. Empathize with Users: Identify key stakeholders and gather insights through interviews and observations. Questions to consider include: "How do users interact with our products?" and "What are the pain points in our current process?" Key activities involve stakeholder mapping and empathy workshops.
  2. Define the Problem: Synthesize user research to define the core problems. Key questions include: "What user needs are not being met?" and "How do these needs translate into design opportunities?" The deliverable will be a problem statement document.
  3. Ideate Solutions: Generate a wide range of ideas to address the defined problems. Teams should ask: "What are potential solutions to the user needs identified?" Activities include brainstorming sessions and idea ranking. Insights on feasible and high-impact ideas are expected.
  4. Prototype: Develop scaled-down versions of the product concepts. Key questions include: "Which concepts best address the user needs?" and "How can we quickly test these prototypes?" Common challenges include resource constraints and selecting the right fidelity for prototypes.
  5. Test: Gather user feedback on prototypes to refine concepts. Questions to consider: "How do users interact with the prototype?" and "What refinements are necessary for the design?" Interim deliverables include testing reports and feedback analysis.
  6. Implement: Develop the final product based on the tested prototype and prepare for launch. Key activities include finalizing the design, planning the rollout, and preparing the market launch strategy. Potential insights include identifying the necessary changes for large-scale production.

For effective implementation, take a look at these Design Thinking best practices:

Design Thinking (225-slide PowerPoint deck and supporting PDF)
Design Thinking - Poster (printable in A0, A1, A2) (1-page PDF document and supporting ZIP)
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Design Thinking Project Template (71-slide PowerPoint deck)
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Key Considerations

The CEO may be concerned about the integration of user feedback into the existing R&D process. It is essential to establish a feedback loop that is both efficient and effective, ensuring that user insights lead to actionable design improvements without disrupting the research workflow.

Another consideration is the scalability of the Design Thinking approach. As the organization continues to grow, it must maintain the agility and user focus of the Design Thinking process, while also managing the complexities of larger-scale operations.

Finally, the CEO will likely question the measurement of success. It is crucial to define clear metrics that align with both the Design Thinking process and the organization's strategic objectives, allowing for ongoing assessment and refinement of the approach.

  • Increased innovation pipeline velocity
  • Reduced time-to-market for new therapies
  • Enhanced user satisfaction and engagement
  • Resistance to change within the organization
  • Alignment of cross-functional teams
  • Resource allocation for iterative design cycles
  • Time to Market (TTM): Measures the speed of the innovation process
  • User Engagement Score: Gauges the effectiveness of the design in meeting user needs
  • Innovation Conversion Rate: Tracks the percentage of ideas that become marketable products

Sample Deliverables

  • Design Thinking Framework (PDF)
  • User Research Summary (PowerPoint)
  • Problem Statement Document (Word)
  • Ideation Workshop Toolkit (PDF)
  • Prototype Feedback Report (Excel)

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Design Thinking Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Design Thinking. These resources below were developed by management consulting firms and Design Thinking subject matter experts.

Stakeholder Engagement

Effective stakeholder engagement is crucial in ensuring the Design Thinking process is aligned with business goals. This includes regular communication, transparent sharing of progress, and incorporating feedback from key stakeholders into the design process.

Resource Optimization

Resource optimization will be a key factor in the successful implementation of Design Thinking. The organization should focus on leveraging existing assets and aligning new investments with strategic priorities to ensure maximum return on investment.

Cultural Transformation

For Design Thinking to be successful, a shift in organizational culture may be required. This involves fostering a culture of innovation, encouraging collaboration across departments, and promoting a mindset that values user-centric design and rapid prototyping.

Technology Enablement

Adopting the right technology platforms can significantly enhance the Design Thinking process. Tools for collaboration, project management, and user testing can streamline workflows and facilitate better communication among teams.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Accelerated the innovation pipeline by 25% through the integration of a 6-phase Design Thinking approach.
  • Reduced time-to-market for new drug therapies by 18%, enhancing competitive positioning.
  • Improved user satisfaction scores by 30% post-implementation of user-centered design prototypes.
  • Increased cross-functional team alignment, evidenced by a 40% uptick in collaborative project initiatives.
  • Overcame initial resistance to change, resulting in a 50% reduction in project lead times.
  • Implemented a scalable Design Thinking framework, adaptable to future organizational growth.
  • Established clear success metrics, including Time to Market (TTM) and User Engagement Score, aligning with strategic objectives.

The initiative to integrate a more agile and user-centered approach to Design Thinking within the biotech firm has been markedly successful. The significant acceleration of the innovation pipeline and reduction in time-to-market for new therapies directly address the initial challenges faced by the company. Improved user satisfaction scores not only demonstrate the effectiveness of the user-centered design prototypes but also suggest a positive impact on the market acceptance of new products. The increased alignment of cross-functional teams and the overcoming of initial resistance to change are particularly noteworthy, as these factors are critical for sustaining innovation and agility in the long term. While the results are commendable, exploring additional strategies for enhancing resource allocation and further reducing resistance to new methodologies could potentially amplify success. For instance, more focused training programs and innovation workshops could have been utilized to foster a deeper understanding and appreciation of the Design Thinking process across all levels of the organization.

Given the success and learnings from this initiative, the recommended next steps include a deeper focus on continuous improvement and scalability of the Design Thinking process. This entails regular review sessions to assess the effectiveness of current methodologies and identify areas for refinement. Additionally, expanding the scope of user research to include a broader range of stakeholders could uncover new insights and opportunities for innovation. To further enhance cross-functional collaboration, the establishment of a dedicated innovation hub, equipped with the latest technology and resources, is recommended. This hub would serve as a central point for ideation, prototyping, and user testing, fostering a culture of continuous innovation and collaboration. Finally, ongoing training and development programs should be implemented to ensure that all employees are equipped with the skills and mindset needed to contribute effectively to the Design Thinking process.


 
David Tang, New York

Strategy & Operations, Digital Transformation, Management Consulting

The development of this case study was overseen by David Tang.

To cite this article, please use:

Source: Global Market Penetration Strategy for an Online Sports Broadcasting Platform, Flevy Management Insights, David Tang, 2024


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