Textbook in PDF format The business environment is changing more rapidly than ever before, and new business ideas are emerging. This book discusses applying insights from design thinking and the jobs-to-be-done framework to craft novel strategies that satisfy customer needs, make use of available capabilities, integrate requirements for financial success, and provide a competitive advantage. It guides readers through the jungle encountered when developing a strategy for sustained growth and profitability. It addresses strategy design holistically by applying abductive reasoning, iteratively observing customers, focusing on empathy and prototyping ideas, and validating them by actual customers. This second edition extends the original design thinking for the strategy process by adding a robust framework for strategic decision-making based on customer value creation and firm value appropriation rooted in the jobs-to-be-done theory. It particularly focuses on how market structures, including peer-to-peer markets, impact strategy design. Uniquely applying insights from design thinking to strategy, this book is a must-read for graduates, MBAs, and executives interested in innovation and strategy, as well as corporate strategists, innovation managers, business analysts, and consultants. The Concepts and Theories Behind Innovative Strategy Design Understanding the Need for a New Approach to Strategy Development How Design Thinking Adds Value to Strategy Customers and Their Needs How Value Impacts Strategy Design Revisiting the Business Model Canvas as a Common Language A Structured Approach to Strategy Development Gaining a Collective Understanding of the Strategy Development Challenge A Novel Strategy Development Process Based on Design Thinking Laying the Foundation for a Successful Strategy Understanding the Industry Environment and Its Implications Choosing a Tangible Strategic Focus Rather Than Building Upon an Abstract Vision to Strategy Iteratively Developing the Business Model Underlying the Strategy Gaining Insights by Observing Target Customers in Their Natural Environment Understanding Target Populations and Their Jobs Through Learning Shaping the Strategy by Designing Business Model Prototypes Managing Uncertainty Through Experiment-Based Validation Exposing the Designed Strategy to the Competitive Environment Exploiting Findings from Game Theory to Succeed Laying the Groundwork for Strategy Implementation Through Stakeholder Focused Communication in a Competitive Environment Index