Discuss about the MGT5EBP Entrepreneurial Business Planning. Effectively apply and interpret judgements and conclusions to develop advanced knowledge of the contemporary issue.
Design Thinking in Entrepreneurship
In the highly competitive business scenario, running own business has become the key trend in order to strengthen the financial competency and sty aide from the competition. There lies the significance of entrepreneurship, which can be regarded as the process of setting and running own business by taking own risk and advantages. This is the way of exploring new business related opportunities, prevailing in the market, which is the key of running own business in a grant scale. Scarborough (2016) discussed that entrepreneurship, in its simplest form, is considered as the willingness to organize and manage own business venture and thereby taking risk in order to amplify the rate of profit margin. However, Goldsby et al., (2017) argued on the ground that there are certain risk, being faced by entrepreneurs in recent times that are creating restrictions for them to run their business in a systematic manner. Design thinking is a major issue, being faced by the entrepreneurs in recent times. Present paper will put forth in-forth discussion of the design thinking related issues, being faced by the entrepreneurs in recent times. Theoretical foundations of this issue will also be covered. This paper will shade light on the impact of the issue of design thinking on the entrepreneurial venture.
Entrepreneurship is basically the mode of starting and running own business venture, which in one of the most emerging trends in sustaining in the hardcore competitive business scenario. Innovation and creativity are two of the most important factors, which can have a firm impact on running the entrepreneurial venture in a unique way. According to Drucker (2014) design thinking is one of the most significant aspect of successful entrepreneurship. This can be regarded as the creative approaches of solving impending business related issues and running the entrepreneurial venture in a systematic manner. Design thinking plays a pivotal role in the way of empowering the design thinkers to develop innovative solutions in a timely and cost effective manner. It is true that, over the past few years design thinking is being considered as the major factors of solving problems in an innovative manner. However, Kuratko (2016) contended by saying that there are certain issues, which the entrepreneurs might face in the way of implementing design thinking with utmost proficiency. The process of design thinking lacks the culture of innovation in an organization, which is very much needed to align all the significant factors of entrepreneurship within a single platform. This approach does not lead the management of entrepreneurial venture to conduct any kind of training for the staffs, which is very much needed for the sake of enabling them to explore the creative problem solving approach.
Challenges of Implementing Design Thinking
A comprehensive business plan plays a very significant role in exploring creative way of solving problem. This is the way, through which the independent business venture can be operated in a consistent manner. However, Kazanjian, Drazin & Glynn, (2017) argued on the ground that the notion of design thinking cannot serve the companies with the ability to integrate any kind of resources of innovation within the business plan. In this case also, skill and competency of the staff plays a major role in the way of attaining innovation, which is not being considered by design thinking.
Successful implementation of innovative strategy is one of the key factors of attaining success from business. However, Daniel (2016) argued on the basis that the approach of design thinking does not pave the way for business ventures to execute innovative business strategy. It is true that design thinking is a critical factor in exploring the way of generating interest among the customers. Still, it does not determine the innovative strategy, which is to be implemented by the business ventures in order to run the business in a unique manner. One of the major challenges of design thinking is that, it is not focused on a clear and comprehensive growth strategy, which is an extremely important factors in integrating innovation within the business process.
Motivation is the key factor in amplifying the level of commitment among staffs to accomplish organizational goals and objectives. However, design thinking creates barrier for the entrepreneurs to execute the methodologies in order to generate motivation among the staffs. As highlighted by Huggins & Thompson (2015) this restricts the entrepreneurs to ensure that clear motivating purposes are there, which can support in strengthening work related commitment among the human resources. As running entrepreneurial venture is all about running business in unique way, such lack of clear motivational technique can make it difficult to generate a clear sense of progress among the staffs. This is one of the most crucial factors in enabling them to work in utterly challenging environment. In addition, impulsive reaction among the staffs is also a major issue in practicing designing thinking. This create reluctant attitude among the staffs. As design thinking does not consider any kind of motivational factors among the staffs, it creates barrier for the staffs to show positive attitude to cope up with the new process of working.
Resistance towards impulsive reaction is the greatest way of solving any kind of critical business related issue. Yet, lack of training among the people can create barrier for them to gain holistic understanding regarding the way of solving critical business related issue. Piperopoulos (2016) stated that design thinking does not embrace group thinking, which hampers the harmony of an entrepreneurial venture which is truly a critical factor in aligning all the employees within a single platform. This results in dysfunctional outcome in the decision making process which is really a challenge in attaining desired outcome from business. Such lack of harmony can also create conflicting attitude among the staffs.
Design thinking is considered as a critical problem solving approach, which is the greatest way of solving any kind of business related issue with utmost proficiency. According to the Creative Human Centered discovery process of design thinking, there are three different factors which can have a firm impact on implementing the design thinking approach in a systematic manner. Inspiration is the diverging and most important part in the entire process of design thinking. Furman et al., (2017) showed that this step comprises of all the necessary activities that are required to explore any kind of impending issue. This is the way, through which strong actions can also be taken for the sake of overcoming the issue. Reframing the issue is the most crucial step of implementing decision thinking approach. Ideation is the second important step of this process which comprises of executing the problem solving mode directly through innovation and original thinking. This is the way, through which, most effective solution to any impending problem can be explored which is very much needed in order to overcome any kind of business related issue in a timely manner. Sketching the idea and explaining the issue are the initial steps of the process of ideation.
Liedtka (2015) observed that implementation is the final step of design thinking approach, which shows the significance of maintaining entrepreneurial venture for the sake of solving any critical issue in a collaborative manner. Prototyping is one of the major approaches of this step.
In the hardcore competitive business scenario, design thinking is one of the crucial methodologies, being used by entrepreneurial ventures in recent times in order to solve any kind of complex issues. According to the U model, both design thinking and open innovation are built from same platform. This model shows that, it is imperative to use multiple design thinking methodologies in terms of structuring open innovation.
This theoretical foundation is based on social innovation which shows that it is imperative to design some of the major practices, which can have a firm impact on strengthening the value of design thinking approach. As showed by Curedale (2018) this process comprises of listening, exploring, assessing and making judgment. However, it is imperative to recognize the issue, which is key of determining long term business strategy in future. With the assistance of this procedure, any kind of issue can be explored in future with utmost proficiency. According to this model, it is imperative to build the innovative process in the same design thinking tool, which is the key of integrating open innovation within the entrepreneurial venture (Jacobs, 2018).
Design thinking is a critical approach, through which critical business related issue can be solved. However, the barriers to design thinking can create major problem for the entrepreneurial ventures to integrate innovative ways and thus overcoming challenges. Lack of appropriate culture can have a major negative impact on the consistency the business process. This creates negative attitude among the employees to adjust with the new working process (Jordan & Lande, 2016). In addition, training and development session is also a major issue of design thinking. This is the reason, for which the employees might show negative attitude towards working in a new process as they lack the ability to understand the new process. Therefore, lack of skill and competency among the staffs can result in a conflicting culture within the organization and thus lead the employees to show negative attitude in exploring innovative way of working. Impulsive attitude among the staffs is also a major obstacle to design thinking. This is the instinctive mentality, which leads the employees to face obstacles in the way of solving any kind of complicated issue through innovative way (Geissdoerfer, Bocken & Hultink, 2016). This impulsive attitude is truly a block in maintaining consistency in the business process, which ultimately increases the consistency of the business. This also restricts the value of business.
Moreover, the process of innovative business strategy is not being considered by the notion of design thinking. This is one of the major issues, which the entrepreneurs face in contemporary times. In the extreme competition in the market, innovation is the critical factor in running the business in unique way. This is the key factor as entrepreneurship is all about introducing and observing own business venture. Thus, execution of design thinking can make it difficult for the entrepreneurs to embrace innovation within their business process, which is very much needed to attain success from business.
A comprehensive business plan is one of the most critical factors in running an entrepreneurial venture in an appropriate manner. There lies the problem faced by the entrepreneurs in the contemporary times in the application of design thinking approach. The notion of design thinking does not consider the resources that are highly required for the sake of integrating innovation. Timeframe and monetary resources are the critical factor in business plan. There lies the problem created by design thinking as it creates barrier for the entrepreneurs to estimate a budget and thereby run the business venture in a cost effective manner (Hernández-Ramírez, 2018). Higher level of motivation among the staffs is the major factor of keeping them aligned with that of the organizational goals and objectives. There are certain methodologies for keeping the employees motivated. However, this too is not being considered by the approach of design thinking. The implementation of design thinking creates restrictions for the entrepreneurial ventures to set clear motivational purpose, which is highly required for amplifying the level of commitment among the staffs. Such lack of motivational factor can make it difficult for the staffs to have strong sense of progress, which is the key factor of working in a challenging environment. In addition to that, lack of motivation among the staffs also creates barrier for the staffs to master new skill (Plattner, Meinel & Leifer, 2015).
It is quite evident from the above discussion that lack of learning opportunity inside an organization is one of the major challenges of design thinking. Such lagging can restrict the ability of the employees to respond properly towards the needs and requirements of the customers. In addition, lack of training can also make the staffs unable to change the working structure as per the needs and requirements of the customers (Durkin & Gunn, 2016). In the design thinking approach, decentralized approach is being followed, which can have a firm impact on reinforcing the ability of the employees to respond towards changing demand of the customers. Deficiency of clear vision is also a major obstacles towards design thinking which results in complicated organizational structure, which is really a threat towards arranging all the staffs within a single platform (Ikem, Aponte & Muffatto, 2015).
Based on the discussion, it can be concluded by saying that entrepreneurship is all about running independent business venture by taking own business venture. Design thinking is the major approach of successful entrepreneurial venture as support in solving any kind of critical business related issue in a unique manner. However, design thinking lacks a culture of learning and development, which creates barriers for the staffs to show reluctant attitude towards working new system. In addition, design thinking also restricts implementation of innovative business strategy, which is one of the most critical factors in sustaining in the hardcore competitive business scenario and thus accelerate statistics of profit margin.
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