Capability building for digital transformation through design thinking

Abstract

Design Thinking has been used to tackle complex problems and guide innovation across several industries. Most studies have relied on recounting experiences of the application of design thinking at the project level rather than the organizational level. The relationships among design thinking, digital transformation, and dynamic capabilities have received attention in recent times. We conduct a longitudinal analysis for a hospital's innovation department that has been implementing design thinking as a comprehensive organizational approach for digital transformation and innovation for six years. We analyze design thinking adoption, its relation to other innovation initiatives, and its contribution in developing dynamic capabilities for digital transformation. The data collection comprises interviews, document analysis, and participant observations. We show that design thinking supports the development of digital transformation and innovation capabilities. Additionally, we elaborate on how design thinking has positively contributed to capability development for digital transformation and analyze how this process has evolved over time. We contribute to the limited literature on the impacts of the adoption of design thinking at an organizational level by establishing its foundation in theories of dynamic capabilities and digital transformation. For practitioners, this study elucidates how to lead an incumbent down the path of digital disruption.