In today's highly competitive and rapidly evolving business environment, organizations are continuously seeking innovative approaches to solve complex problems, enhance customer satisfaction, and maintain sustainable competitive advantages. One such approach that has gained significant attention in both academic and professional circles is Design Thinking (DT). Design thinking is a human-centered, creative, and systematic problem-solving methodology that integrates user needs, technological feasibility, and business viability to generate innovative solutions. The primary objective of this study is to examine the concept of design thinking and explore its role in fostering innovation within organizations. The study adopts a systematic literature review approach, analyzing relevant scholarly articles, books, and industry reports to provide a comprehensive understanding of the theoretical foundations, processes, and practical applications of design thinking. The review highlights the key stages of the design thinking process, including problem definition, research, ideation, prototyping, selection, implementation, and learning. Findings indicate that design thinking contributes significantly to organizational innovation by encouraging creativity, collaboration, user engagement, and continuous learning. Furthermore, it assists organizations in addressing complex and uncertain challenges while improving product development, service delivery, and strategic decision-making. The study also identifies major benefits, challenges, and opportunities associated with implementing design thinking in diverse organizational contexts. By synthesizing existing knowledge, this paper contributes to the growing body of literature on design thinking and provides valuable insights for managers, practitioners, and researchers seeking to leverage innovation as a source of competitive advantage and long-term organizational success.
