Strategy by prototyping framework for SMEs through integrating design thinking and balanced scorecard

• Main Author: Azman, Hussin
• Format: Thesis
• Language: English; English
• Published: 2014
• Subjects: HD28-70 Management. Industrial Management
• Online Access: https://etd.uum.edu.my/4255/1/s93659.pdf; https://etd.uum.edu.my/4255/7/s93659_abstract.pdf; https://etd.uum.edu.my/4255/

The purpose of this research is to study the integration of two management concepts, Design Thinking (DT) and the Balanced Scorecard (BSC), for business strategy. Through Action Research (AR), DT and BSC were used to assist the selected case company from the ICT industry implement its strategic change agenda over a planning period of three years to achieve new growth by increasing its innovation capability. Seven major AR cycles are reported in this study that covers both the problem solving part and the new knowledge generation part of the research. Each AR cycle consists of the five stages of diagnosis, planning, action, evaluation and learning. The learning from the AR cycles were generalized to develop a framework for strategy development and implementation for SMEs that addresses many of the current issues related to managing strategy for SMEs. The results show that integrating DT practices with the BSC helped the case company successfully implement its innovation driven growth strategy. The learning through action was rigorously compared and supported with the academic literature. The lessons were generalized to create the DT-BSC Process Framework for business strategy development and implementation. The core concept underlying the proposed framework is ‘strategy by prototyping’ that is presented through a visual template. The practical knowledge contribution from this research is the development of a process framework that will allow SME owners and managers to create and implement their own innovation driven strategies. The framework integrates some established best practices from business strategy management with the innovative practices of designers into a series of practical and simple steps. The ‘strategy by prototyping’ concept and visual template articulated from the findings of this research may contribute a new paradigm in the field of business strategy.