This chapter reviews two important approaches to developing strategies: Design Thinking and the Innovation Framework. Design is transforming the way leading companies create value. The focus of innovation has shifted from being engineering-driven to design-driven, from product-centric to customer-centric, and from marketing-focused to user-experience-focused. Design thinking is our best tool for sense-making, meaning-making, simplifying processes, and improving customer experiences. Design thinking needs to be integrated with strategy because firms wrestle with the problem of product–market fit. Design thinking has emerged over the last 60 years as a method for collecting and analyzing the market and customer-level data, using tools that are visually instantiated, such as personas and sketching, and physically instantiated, such as prototypes and customer observation. Managers sought to empathetically simulate their end user's experience of their product or service in real time.