From Ideas to Impact: Stage 3 of Design Thinking – What Wows?
Stage 3: What Wows?
After generating many creative ideas in Stage 2 (What If?), it’s time to filter and choose the best ones. This stage helps identify concepts that have both high customer value and strong business potential—the “wow” zone.
Key Focus:
✅ Prioritizing the most promising ideas from brainstorming.
✅ Selecting ideas that balance customer excitement and business profitability.
✅ Using real-world data and testing to validate assumptions.
Tools Used in Stage 3: "What Wows?"
Tool 7: Assumption Testing
New business concepts are based on assumptions (educated guesses). Assumption Testing helps check if these assumptions are true or false using real data.
How It Works:
- Identify assumptions behind a business concept.
- Test them with real data (customer feedback, market research, experiments).
- Confirm, modify, or discard ideas based on the results.
Example:
- Amazon Prime assumed that customers would pay extra for fast delivery.
- Instead of guessing, they tested it with a small group of users.
- The positive response led to Amazon Prime’s launch, which became a huge success.
Tool 8: Rapid Prototyping
Prototyping means quickly creating a basic version of a concept to test its feasibility. The goal is to learn fast, make improvements, and refine ideas.
Types of Prototypes:
| Type | Description | Example |
|---|---|---|
| Low-Fidelity (Basic & Quick) | Rough sketches, paper models, or mock-ups | A simple hand-drawn app interface |
| Medium-Fidelity | Digital wireframes, clickable demos | A working version of an app |
| High-Fidelity (Near-Final Product) | Polished, ready-for-testing version | A fully functional prototype |
Example:
- Apple tested the first iPhone with a low-fidelity prototype before making the final product.
- Tesla created a prototype of an electric car to test customer interest before full-scale production.
Comparison: Assumption Testing vs. Rapid Prototyping
| Feature | Assumption Testing | Rapid Prototyping |
|---|---|---|
| Purpose | Validate business assumptions | Create quick versions of a concept |
| Focus | Testing ideas with data | Building and refining a working model |
| Process | Surveys, user interviews, market research | Sketching, digital mock-ups, early-stage testing |
| Example | Testing if customers would pay for Amazon Prime | Apple’s early iPhone prototypes |
Case Studies of Stage 3: "What Wows?"
1. Netflix – Testing Subscription-Based Streaming
📌 Problem: Netflix wanted to shift from DVDs to a streaming service, but was unsure if users would subscribe.
📌 Assumption: People would pay monthly for unlimited streaming instead of buying DVDs.
📌 Testing: They ran a limited test with early subscribers.
📌 Result: The test was successful, leading to Netflix becoming the world’s largest streaming platform.
2. Airbnb – Building Trust with Guests
📌 Problem: Airbnb faced trust issues between hosts and guests.
📌 Assumption: Adding user reviews and secure payments would increase trust.
📌 Prototyping: They launched a small-scale website with reviews.
📌 Result: The feature worked, leading to millions of safe and trusted stays worldwide.
Key Takeaways:
- Stage 3 (What Wows?) helps narrow down ideas to the most viable ones.
- Assumption Testing verifies if an idea is based on real customer needs.
- Rapid Prototyping creates a quick model to test and refine before launch.
- Companies like Amazon, Apple, Netflix, and Airbnb use these methods to bring successful innovations to life.
Here are industry-specific case studies showcasing Stage 3: What Wows? in Design Thinking for different sectors.
Case Study 1: Healthcare – Testing AI-Based Diagnostics (IBM Watson Health)
Problem:
Doctors needed a faster, more accurate way to diagnose diseases, especially in complex cases like cancer detection.
Assumption Testing:
IBM assumed that AI could analyze medical data faster and assist doctors in diagnosis.
✅ They tested AI algorithms on historical patient data.
✅ AI successfully detected patterns in medical reports that human doctors missed.
Rapid Prototyping:
📌 IBM built an early prototype of Watson Health, feeding it real-world medical cases.
📌 The system recommended diagnoses and treatment options, which were compared with expert doctors.
📌 Feedback from doctors helped IBM refine the AI model.
Result:
Today, IBM Watson assists doctors in predicting diseases early and suggesting personalized treatments. 🚑
Case Study 2: Fintech – Contactless Payments (Google Pay, Apple Pay)
Problem:
Customers found credit card swiping slow and insecure, leading to fraud risks.
Assumption Testing:
Tech companies assumed:
✅ People wanted a faster way to pay.
✅ A secure mobile-based system would reduce fraud.
Google and Apple tested these assumptions by:
📌 Surveying customers on their frustrations with card payments.
📌 Testing a small prototype of contactless payments in select stores.
Rapid Prototyping:
📌 Google & Apple developed early versions of their payment apps.
📌 They partnered with retailers and banks to test contactless payments.
📌 Data was collected on security, speed, and user adoption.
Result:
📌 Google Pay and Apple Pay became global leaders in contactless payments, making transactions seamless.
Case Study 3: Retail – Virtual Try-On for Online Shopping (Sephora, IKEA, Warby Parker)
Problem:
Customers were hesitant to buy products online (clothes, makeup, furniture) because they couldn’t see how they looked before purchase.
Assumption Testing:
Retailers assumed:
✅ Augmented Reality (AR) and Virtual Try-On would increase online shopping confidence.
✅ Customers would trust digital experiences for buying high-value products.
Rapid Prototyping:
📌 Sephora’s AR beauty app let users try on makeup digitally.
📌 IKEA’s AR app showed how furniture would look in a customer’s home.
📌 Warby Parker’s eyewear app allowed users to try glasses using face-scanning tech.
Result:
These brands saw a huge boost in online sales as customers gained confidence in virtual try-ons.
Comparison Table: Industry-Specific Prototyping Examples
| Industry | Problem | Assumption Tested | Prototype Built | Final Outcome |
|---|---|---|---|---|
| Healthcare (IBM Watson) | Doctors need faster, more accurate diagnoses. | AI can predict diseases using medical data. | AI model trained on patient records. | AI assists doctors in medical diagnoses. |
| Fintech (Google Pay) | Card payments are slow & unsafe. | Customers want fast, secure digital payments. | Contactless payment prototype in select stores. | Google Pay & Apple Pay revolutionized digital payments. |
| Retail (Sephora, IKEA) | Customers hesitate to buy online without seeing the product. | Virtual Try-On increases confidence in online shopping. | AR-based apps for makeup, furniture, eyewear. | Customers embraced AR, boosting online sales. |
Key Learnings from These Case Studies
✅ Testing assumptions prevents costly mistakes.
✅ Rapid Prototyping allows businesses to improve before full-scale launch.
✅ Major brands like IBM, Google, Apple, and IKEA use Design Thinking to drive innovation.
