Business

How to Use Design Thinking: IT Problem Solving Guide

When leading a tech company, you can expect to face complex issues that will tend to fall outside the “strictly technical” umbrella. When these issues arise, you’ll need to be able to think outside the box. The typical challenges that solution companies see involve systems, whether data sharing, working with varying technical architectures, or dealing with IT that is difficult to control, as seen with cloud computing. 

While we expect to run into challenges when working with technology, additional situations arise when running an IT service business. A client may have a particularly complex issue or your technicians may be struggling with the given timeline of a project. In these cases, every team will have methodologies they fall back on that can be useful. With that in mind, it must also be recognized that problem-solving doesn’t always happen from static approaches. 

Every team’s issues will be subjective and how to approach them is what we’re going to outline:

People, Process, Technology

Tech companies who have faced issues on an organizational level are likely aware of a popular response outlined as People, Process, and Technology (PPT). Brought to fruition during the 1960s and earning the name “the golden triangle”, PPT was designed to boost operational efficiency among employees. The premise behind this process is that it balances three crucial elements when dealing with a problem (the people, the process, and the technology). While using PPT, it is intended that those on the front line will rely on the companies' processes and technological resources to resolve issues. When it comes to a software company, most will employ this for IT management since these are the main elements at play.

In the modern day, however, the issues seen in the IT spectrum are heavily varied since companies and technology function much differently than they did 50 years ago. Some big contributors to this shift are the introduction of cloud computing, AI, and the internet which are automated systems with complex software. Traditional problem solving for technology (like that of PPT) tends to focus on task performance as opposed to dealing with the unknown.

Oh and there’s one more factor left out of the framework… Creativity. This is where the concept of design thinking came into play. It involves focusing on the stakeholders within an issue, the technological resources, what is required for the business to be successful, and then brainstorming solutions as a team to materialize an outcome. Noticeably, the framework of PPT is embedded within the concept, which gives it some level of familiarity for those utilizing it.

How Can We Use Design Thinking?

When you’re working in IT you can get used to implementing so much that creativity takes a back seat. The concept of design thinking can be thought of as a practice as well as an ideology. Similar to the “balanced triangle'' we saw in PPT, design thinking follows its outcome-driven phases. In his 2009 Ted Talk, Tim Brown, a popular designer from the UK and a connoisseur of design thinking describes the process of design as “balancing desirability with technical feasibility and economic viability”. 

There is an art form to traditional methods of design and they are not limited to artistic practice. Creativity is a tool meant to construct a resolution for the needs of any given situation. This is the framework that design thinking is based on. By tapping into creativity, you’ll avoid static development approaches. Though it is an intuitive concept, implementation is often where challenges are found. To get a better understanding, here’s a list of the phases involved in design thinking (in no particular order):

  • Empathize: Since this approach emphasizes the people, it is best to view the problem from the perspective of the end-user. This will allow leadership to detach from presumptions and focus on resolving from a neutral level. 

  • Define: Once you’ve empathized with the stakeholders and made an analysis you’ll now define what the clear issues are. Drafting a problem statement (Point of View) is a great way to do this as your considerations will, again, be from the user's perspective. For example “if we don’t do x,y, or z to mitigate this issue then we can expect this” or “the previous process keeps running into this wall, let's overcome that before anything else”. Simply put, remove assumptions and deeply consider the problem (define) then you can develop a solution. 

  • Ideate: Based on the knowledge you’ve gathered from the last two phases, you’ll now begin brainstorming. Since your perspective is in line with filling specific gaps that you’ve identified, there should be a variety of concepts on the table. From there, build on ideas to reach the desired outcome.

  • Prototype: Branching off of the ideate phase, you’ll now want to get hands-on with your solutions. This is done by developing a variety of samples of the product that can be tested at a low cost. From there, you’ll be ready to move on to the final phase. 

  • Test: After developing the prototype version of your solution, what's left is making sure it works. Running tests is how you mitigate risk by building on areas that will prevent future issues. 

IT Example

If you look at a software implementation process, when examining the needs of the customer, there’s a tendency to focus solely on the technology. What’s more important at that moment however is considering the need it’s being built to fill. This is when the phases of design thinking are useful. Using creativity to identify challenges and brainstorm methods to mitigate them for the end-user makes the software selection process much more efficient. Once the software is selected, the team will make the necessary changes and have the user run tests to ensure that it fills the recipient's needs. 

Everyday Examples

While we’ve focused on how to apply design thinking in IT, you should understand that this methodology has carry-over. Imagine you’re a mechanic and you’ve brought a car that the owner claims needs an oil change because there is a “knocking sound in the engine”. You can take the customer's word for it or dive deeper and find out that there is an issue with the spark plugs. 

You likely get the idea at this point, that design thinking is handling issues with care by doing the extra steps to ensure issues are resolved for good. Designers apply this in their work and it is what makes innovation so useful to people. It’s difficult to walk across all 50 states, so we made cars, trains, and planes. A machine needs more memory so we created RAM. The examples are endless.

Takeaway

Ideas aren’t created out of standard practices or strictly followed processes. Every idea is formed once someone’s mind is free to think. Design thinking is breaking the chains of capped potential by avoiding standardized reactions. Try this out with the little things first, start with the next time you find yourself in conflict by considering the situation from the other person's perspective. Detach and decide, notice how the outcome changes when you do so. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

 
 
 

What Investors Are Saying Amid The Spread of FinTech

As FinTech adoption rates continue to rise, investors are eagerly watching the industry for opportunities to get behind. FinTech is more than a series of unique digital payment methods in today's market. It’s a new approach to personal finance, systems enabled by software, and a connection platform between businesses and consumers. When we add these variables together, we notice that they equate to a transparent and practical system. Naturally, this is what users want— transparent institutions that make them feel they are in the driver's seat of their money. What does this mean for competitors? Nearly 90% of them expect FinTech companies to wipe out the majority of their consumer base. 

In addition to the feasibility of these systems, international adoption is a major push for consumer engagement. One recent example is the introduction of mobile payment in the Association of Southeast Asian Nations (ASEAN). This venture brought plenty of attention from foreign investors who pumped $1.6 billion into ASEAN-based FinTech startups during 2020. The industry is growing as a result of this level of adoption all over the world. In 2021, the FinTech industry was estimated to be worth $112.5 billion. By 2028 it is expected to be worth nearly threefold at over $332 billion. What’s the reason behind this growth? Here are some of the services’ attractive components:

Total Cost of Ownership (TCO): 

The price of an asset and the cost of operation is useful when determining the direct and indirect costs you’re getting into with long-term ownership of an asset.

Low Cost of Operation:

Operating virtually whilst not being governed as a depository institution makes way for FinTech companies to bring in clients and function at a rate less than that of a traditional bank. 

Big Data:

This is a process used by FinTech service providers which keeps track of everything from transactions and credit scores to where consumers like to shop. This information is then used to tailor the service’s approach to users by showing them more of what they need.

Shift to Mobile Wallets:

There was a huge shift to digital payments in 2020 but there was also uncertainty around its longevity. Flash forward two years later and now 75% of consumers use this service. Additionally, it was found that 60% of consumers feel more comfortable with their smartphone as opposed to a physical wallet.

Cross-Border Payment:

Whether it’s retail, wholesale, or remittances, FinTech opens its reach to this market through blockchain technology. Ultimately this allows ledgers no matter where in the world to transfer funds from one to another.

These factors draw in consumers as well as investors but this is still only the beginning. Remember that mobile banking itself has only been around since 2007 and by 2012 only 21% of smartphone users in America reported having used mobile banking. Flash forward to today, the rate of users who prefer mobile banking now sits around 65%. If we wanted to look at an even larger user base we’d shift focus to China, where a whopping 90% of the population uses FinTech services. 

With a broad understanding of FinTech’s reach, what's next is focusing on what investors are saying. Whether you’re a company, competitor, current user, or just curious about FinTech, this information will be useful. Here are some common topics for discussion among FinTech investors:

Uniqueness

The market gets crowded with companies taking after one another which, to investors, doesn't present anything worth getting behind. This is especially difficult as a business when the giants of the industry have set the bar so high. Inevitably as an organization that wants to prove itself, it comes down to the question of “what makes me special?”. There are tens of thousands of companies in this industry. Being one of them you need to have a clear purpose with research that supports your rationale for pursuit. Investors want stability, investing in a company that serves the same purpose as 5 others without dramatic outperformance doesn’t stand out. 

Long Term Planning

Profiting as a financial institution does not begin the first day you’re open for business, it is a long path especially in a climate as competitive as the FinTech industry. Investors need to see planning for the long term with clearly defined goals. Additionally, they’ll need to have confidence in your understanding that longevity in FinTech requires substantial capital. Marketing, bringing in clientele, retaining clientele, and ultimately being able to monetize your services will take time and commitment. Trying to make a fast profit or “passive income” is not an attitude that will serve well in a search for funding.

Partnerships

This applies at any stage of development but is especially beneficial for startups. Partnering companies bring numerous benefits in terms of innovation, services offered, problem-solving, and backend operations. It comes back to standing out in this crowded market and partnering entities are more likely to make their presence known. However, there will also be a handful of risks with mergers and this will need to be mitigated by the team as best as possible. 

The Team and its Leaders

The logistics of running a business ultimately comes down to the people working on it daily. It should be noted that a team is only as good as its leader. Of course, a leader who can get positive results from their team will thrive. Most importantly a leader who is competent when faced with uncertainty and able to bounce back from failure will build confidence in their team as well as investors. 

Put yourself in the shoes of an investor and imagine you’re looking at two companies with similar performance in the last 2 years. One of them embraces company culture, has had to make hard decisions and has seen steady growth. The other has a high employee turnover rate, is behind on its goal timeline, is not interested in change, yet still has seen a level of growth. Which of the two are you going to fund?

The Takeaway

The financial sector is extremely competitive and is always at high risk for consumers, investors, and businesses. For investors to consider your product your service needs to fit like a missing piece of the industry's puzzle. The development will take time just like any business which allows you to take your time. The interests of your consumers will change and so will the economy. As long as your team is open to that reality and employs the necessary tactics, you’ll be on your way to a long-term reward. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

 
 
 

5 North American Cities For Tech Startups to Thrive In

What names come to mind when we think of the places around the world that are considered “tech hubs”? Typically Silicon Valley, Tokyo, Barcelona, or Tel Aviv are all common answers since these places are prominent for innovation. In today’s society, there is a widespread movement toward digital governance of everyday life. With the influence of companies such as Apple, Google, Amazon, and Netflix (to name a few) there is never time to be bored. The consumer market for technology is hot and new companies are constantly popping up to support this market in North America. We must be aware of this future and the cities on the rise with infrastructures to support further advancements.

In a post-pandemic world, the economy is still recovering from the struggle faced by many businesses. The technology sector certainly felt the blow from this as issues with manufacturing and distribution were a big hit. When it comes to an economic downturn, any sign of strength in times of uncertainty is likely to have a ripple effect on morale within an industry. Tech sectors emerging within major cities are a great example. Let’s dive further into it.

Northern California was the largest hub for the technology market for a long time. Today, several cities in North America are coming out strong in the tech sphere. America remains home to the world's biggest technology companies, making it a default attraction for ambitious entrepreneurs looking to launch their businesses. However, startups need to know specifics and certainly won’t limit their long-term growth based on geography. With that being said, here are some cities that may be on their horizon:

Boston

SaaS (Software as a Service) companies such as Akamai, Robin, Hubspot, and SEMRush are just a few of the major organizations settled in Boston, Massachusetts. This is due in part to a couple of reasons. The first is the increase that the city is seeing in graduates from Science, Technology, Engineering, and Mathematics (STEM) related fields. This has opened the talent pool up dramatically. Not to mention that the state is home to Harvard, MIT, Boston College, and Boston University. The city saw an increase of over 7% in employed tech specialists from 2015-2020. A startup looking to build a network and take advantage of a booming market would be wise to consider a future in Boston.

New York

Startups eager to prove themselves to investors will be pleased to know that in 2021, New York City venture-backed companies saw funding of over $52 billion. The majority of the funding was allocated to startups in industries such as software, IT, healthcare, and financial services. The fast-growing tech space in NYC is home to nearly 300,000 jobs with an output of around $125 billion to the economy. This market is extra hot right now, especially with the impetus from those returning or migrating to the city since the recovery from the early days of the pandemic. The next 5 years of this market are unforeseeable but certainly, we can expect to see further growth. 

Toronto

Ranked as the 9th fastest growing tech city in the world and the most multicultural, Toronto Canada is a city that embraces innovation and collaboration. Technology is a focal point of the city's job market, with a 68.9 index score in the tech talent market and accounting for 88,900 jobs from 2016-2021. Additionally, this contributed more than $8 billion in employee wages yearly. Big companies have recognized the city's value which has introduced the city to companies such as Google, Netflix, Uber, Shopify, and Amazon. Now, Toronto is far from the new Silicon Valley which saw $132 billion invested into tech startups in 2021-2022. Toronto sits around the $5.4 billion range but this is still consistent growth year over year, which speaks to the level of talent in the area. 

San Francisco

A primary location for startups in North America is without question San Francisco. Housing Silicon Valley, the San Francisco Bay Area is a notorious tech bubble with companies such as Apple, Google, Microsoft, Uber, and Facebook establishing their headquarters here. The reputation and infrastructure of the area allow for a couple of benefits that include consistent attention from investors and high-quality workers. When it comes to workers, the tech talent pool in the Bay Area is among the largest in the world with over 370,000 tech industry professionals. As well, the proximity of colleges such as Stanford and SFSU makes it a breeding ground for talent in the labour market. 

Vancouver

Startups in Vancouver (nicknamed Techcouver) have seen tremendous growth over the last 10 years, specifically from 2019 - 2020 when the technology sector grew by 21%. The city reported 6% annual growth in the tech hub year over year. Vancouver-based tech companies are certainly making the most of this market as more than ten thousand of them bring in a revenue of more than $23 billion. This has made the city’s tech giants a major contributor to the province's GDP (adding more than $15 billion). Though Vancouver’s tech leaders are not on par with the likes of Toronto (who saw a 26% growth from 2019 - 2020), it is certainly bringing value to the table. 

 
 

What’s Next?

We can see that the tech market brings major profitability to the cities with the markets for it, which then brings attention from big name companies. This leads to jobs which attract citizens and consumers, all of which are in the best interest of a major city. There are numerous places for a startup to get its feet wet and for consumers to locate providers. No longer will anyone have to limit their view of tech hubs to Northern California. When it comes to tech startups, all of this information should scream one-word: potential. Even what seems great right now is likely amid growth and your business could be the next major contributor. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!