How design thinking transformed from academic research into a brilliant business product through IDEO's masterful strategy, while losing its original meaning
Design thinking has become what the presenter calls “a religion” based on two fundamental beliefs that are largely untrue:
However, design thinking is actually better understood as “an incredibly successful information product and marketing campaign” rather than a universal problem-solving methodology.
The story begins with John E. Arnold, a professor at MIT and Stanford in the 1950s who first explored the research question: “How do designers think?” Arnold wanted to create a science of creativity, invention, and innovation for engineering and business. He laid the foundation for modern design and innovation thinking but died in 1963 at age 50, before becoming widely recognized.
From the 1960s-1980s, scholars like Bruce Archer, Herbert Simon, Nigel Cross, Horst Rittel, and Donald Truman continued this research. Their key contributions included:
The most influential practical design thinking process emerged from IDEO, a California design consultancy famous for designing Apple’s first mouse. IDEO transformed from a small mechanical engineering shop in the 1970s to a global company employing nearly 1,000 people worldwide.
IDEO founder David Kelley studied at Stanford’s Joint Program in Design in the late 1970s - a program originally proposed by John E. Arnold that combined engineering and arts education. This direct academic lineage explains how scholarly design thinking concepts made their way into IDEO’s business practice.
IDEO’s success came from massively expanding the scope of design, allowing them to take on projects in branding, electronics, marketing, healthcare, software development, management consulting, and education. They achieved this by:
In 2000, Tim Brown became IDEO’s CEO, and this marked the critical turning point. Brown, educated at Northumbria University and Royal College of Arts, brought deep academic design research background. The presenter calls Brown “an absolute genius” not for what he says, but for what he never discusses - his masterful business strategy.
The transformation is visible in the Kelley brothers’ publications:
Tim Brown’s “Change by Design” mentions design thinking over 150 times and became the definitive book on the subject.
Productization involves taking a service business’s knowledge, expertise, and methodology and creating information products from it. Tim Brown masterfully executed this by:
This strategy creates a positive feedback loop:
The presenter argues that design thinking is widely misunderstood by most people who practice, sell, and teach it. Originally, design thinking was:
IDEO employees refer to “design muscles” that need continuous exercise - you can’t simply pick up design thinking in one day.
Modern design thinking has become “a religion with David Kelley as its prophet and Tim Brown as its apostle” with various factions like IBM Enterprise Design Thinking and Google Design Sprints. This religious following often misses the core truth: “doing is the truth of design” - design thinking has little to do with thinking and everything to do with practice.
The video reveals how a legitimate academic research area became a successful business product through masterful strategy, while highlighting the gap between the original intent and modern popular understanding of design thinking.