Design Thinking and Inflation

In business, design thinking is used as a step-by-step process in order to understand the customer, challenge preconceptions, and redefine problems so that new solutions may present themselves.
As the economy struggles through the pandemic, companies are having to deal with rising commodity prices, supply chain issues, and higher wages. The producer price index (PPI), which measures the prices of goods, rose 10% in the first half of 2021.
Research shows that companies that do best during times of inflation boost productivity by primarily cutting costs. To find the best areas to cut back on, businesses have been using design thinking to come up with more creative ideas.
Stages of Design Thinking
Exploration Stage
A team of people should be put together, usually no more than 10, of different backgrounds, cultures, and ages. Then a major challenge facing the company should be put forth like higher costs.
They then look into what’s causing higher prices by examining suppliers, the process, and the customers. Ask yourself about your customer’s behavior. Are they buying less of your product? Are they buying a different product?
Brainstorming Stage
In the second phase, people come together to talk over ideas and come up with solutions. 
There are different methods for triggering creative ideas when tackling problems, one popular online method is called SCAMPER.

• SUBSTITUTE. You first ask yourself whether there are any materials, parts, or personnel you can substitute or exchange for.
  
• COMBINE. The second thing you may consider is whether there are any steps or processes you can combine. Like using Zoom or Facetime apps that can cut down on time and increase accessibility.
  
• ADAPT. Think about how a certain task or product can be re-worked so it performs better.
  
• MODIFY. How can things run smoother? If you’re having meetings that seem meaningless, how can they be more productive?
  
• RE-PURPOSE. How can products be used in a different market or re-purposed? Can a t-shirt company pivot to making masks during the pandemic?
  
• ELIMINATE. Doing inventory to see if there are any parts or resources you can eliminate is always a challenge. There are processes that some might not want to get rid of even though they’re clearly redundant.
  
• REVERSE. Give employees the power to make changes. Having teams of employees come up with new solutions to problems is key to successful design thinking.