Design thinking transforms complex problems into human-centered solutions through an iterative approach. This methodology shifts teams from solving assumed problems to addressing real user needs through systematic exploration and testing.

Here are the steps involved:

1. Empathize with users. Conduct research through interviews, observations, and surveys to understand user challenges, behaviors, and motivations firsthand.
2. Define the problem. Synthesize research insights into clear problem statements that capture user needs. For example, "Young professionals need a way to track expenses because traditional budgeting apps are too complex."
3. Ideate solutions. Generate diverse solution ideas through techniques like brainstorming, mind mapping, and worst possible idea. Focus on quantity before quality.
4. Prototype concepts. Create simple versions of promising solutions — from paper sketches to clickable mockups — to make ideas tangible quickly.
5. Test with users. Gather feedback through user testing sessions, refine solutions based on insights, and iterate as needed.