ROI Case File No.254 | 'Eastern European Startup's Product Development'

Chapter One: A Development Site Losing Direction—The Trap of Technology-First

The week following the resolution of RetailMax USA's RFM analysis case, a consultation arrived from Eastern Europe regarding product development stagnation. This case, the 254th episode of the twentieth volume "Integration of Practice," concerned the challenge of breaking away from technology bias to create true user value.

"Detective, we're a Polish startup developing a health management app, but features created by our excellent engineers aren't being used by users at all. They should be technically superior, yet the market won't accept them."

Anna Kowalska, co-founder of HealthLink Technologies from Warsaw, visited 221B Baker Street unable to hide her deep confusion. In her hands, she held advanced technical specifications alongside starkly low user evaluation data.

"We're developing a health management app for chronic disease patients. We've implemented cutting-edge features led by physicians and engineers, but actual users only say 'it's hard to use' and 'I don't know what to do.'"

HealthLink Technologies' Gap Between Technical Capability and Market Evaluation: - Founded: 2020 (health tech startup) - Development Team: 2 physicians, 8 engineers, 1 designer - Technical Features: AI diagnostic support, medical data integration, automatic vital recording - Downloads: 50,000 - Active User Rate: 8% (industry average 30%)

The numbers showed technical richness. However, deep frustration was etched on Anna's face.

"The problem is we conceived from 'what's technically possible,' not understanding 'what users truly need.' We built from physician and engineer perspectives only."

Gap Between Technology and Needs: - Features developed: 50+ detailed health metric tracking - User response: "Too complex, don't know where to start" - Pride feature: Detailed AI health analysis reports - Actual usage: Only 15% open reports - Retention rate: 82% stop using after 1 month

"We created something 'wonderful' from a technologist's perspective, but didn't understand the context of patients' daily lives."

Chapter Two: Introducing Design Thinking—Into the Users' World

"Ms. Kowalska, in your current product development process, how do you understand user needs?"

Holmes inquired quietly.

Anna began explaining the current situation with a bitter expression.

"We determine features based on physicians' clinical experience and engineers' technical judgment. We conducted user research, but only asked about 'desired features' through surveys, not deeply understanding actual life difficulties."

Current Development Process (Technology-First):

Requirements Definition: - Physician perspective: "Patients should record detailed data" - Engineer perspective: "Implement all technically feasible features" - User research: Only superficial surveys - Result: Design based on creators' assumptions

Design & Development: - Feature priority: Continuously adding what's technically achievable - UI/UX: Engineers create as side task - User testing: Conducted formally only after development completion - Result: Difficult to use, complex product

I noted fundamental problems in the development process.

"You need to start from users' lives and challenges, not from technology."

Anna responded with a serious expression.

"Exactly. But how can we understand users' real needs?"

⬜️ ChatGPT | Catalyst of Conception

"Empathize, Define, Ideate, Prototype, Test. Five user-centered stages create innovation."

🟧 Claude | Alchemist of Narrative

"Technology is merely a means. What must be solved are human challenges."

🟦 Gemini | Compass of Reason

"Design Thinking is the technology of human understanding. True innovation springs from deep empathy."

The three members began their analysis. Gemini deployed a "Healthcare-Specific Design Thinking" framework on the whiteboard.

The Five Stages of Design Thinking: - Empathize - Deeply understand users - Define - Define the true problem - Ideate - Broadly conceive solutions - Prototype - Quickly create forms - Test - Improve together with users

"Ms. Kowalska, let's rebuild HealthLink's development through user-centered Design Thinking."

Chapter Three: Discovering the User Perspective—Truth Within Daily Life

HealthLink's Design Thinking Practice:

Phase 1: Empathize - Understanding Users (2 months)

In-Depth Interviews: Visited homes of 20 diabetes patients, observing daily life.

Discovered Truths:

Patient A (58-year-old woman, 10 years with diabetes): - Morning: After waking, measures blood sugar. Handwrites numbers in notebook - Observation: Measurement is habitual, but recording seems tedious - True feeling: "I don't really understand what the numbers mean. Just recording to show the doctor"

Patient B (45-year-old man, 5 years with diabetes): - Lunch: Eating out, estimates carbohydrates. Guilt after meals - Observation: Searches carbohydrate amounts on phone, but information is scattered - True feeling: "Anxious about what I can eat. But a life of only restrictions is painful"

Patient C (62-year-old man, 15 years with diabetes): - Evening: Taking medication. Confused about which medicine when - Observation: Medication management complex, forgetting or taking wrong medicine occurs - True feeling: "I hate facing the disease. Would rather not think about it"

Phase 2: Define - The Real Problem (1 month)

From interviews and observation, defining the true problem:

Wrong Problem Definition (Previous): "Patients should record and analyze detailed health data but aren't"

Correct Problem Definition (After Design Thinking): "Chronic disease patients feel psychological burden facing their illness while wanting to live normal lives. However, not knowing what to do or whether it's effective, they live with anxiety and guilt."

Phase 3: Ideate - 100 Solutions (1 month)

Entire team brainstorming. Physicians, engineers, designers, plus 5 patients participated.

Ideas Generated (Selection): - "Today's One Step": Suggest one simple healthy action daily - "Food Traffic Light": Photograph meal, evaluate as green, yellow, red - "Medicine Buddy": Gentle voice reminder at medication time - "Small Victory Journal": Record and celebrate healthy actions

Phase 4: Prototype - Build and Break (2 months)

Selected 5 from 100 ideas, creating simple prototypes.

Pilot "Simple Version": - Features: Only "Today's One Step," "Food Traffic Light," "Medicine Buddy" - Screen: One screen daily, simple three cards - Data: Minimal recording, no complex analysis

Phase 5: Test - Together with Users (2 months)

20 patients used it for 2 weeks, daily feedback.

Surprising Results: - Retention rate: Previous 8% → Pilot 78% - Daily usage: Previous 5% → Pilot 65% - Satisfaction: Previous 2.1/5 → Pilot 4.5/5

User Voices: "I can continue with this. Happy I don't have to think only about illness" "Celebrating small successes keeps me motivated"

Chapter Four: Co-Creation Takes Form—Building Products with Users

Results After 12 Months:

Released new version redeveloped through Design Thinking.

Product Transformation: - Feature count: 50+ → Narrowed to 8 core features - Initial startup explanation: 15-minute detailed tutorial → 1-minute simple guide - Data entry: Manual detailed recording → Automatic recording + minimal confirmation - Feedback: Complex analysis reports → "Today's One Step" suggestions

Business Results: - Active user rate: 8% → 52% (6.5x) - Retention rate (1 month): 18% → 73% (4x) - User rating: 2.3/5 → 4.6/5 - Downloads: +150% monthly growth through word-of-mouth

Patient Voices:

Patient A (58-year-old woman): "The previous app was for doctors. This app is for me. Daily small encouragements make me happy."

Patient B (45-year-old man): "The food traffic light lets me enjoy meals without guilt. Even red says 'sometimes okay,' which is a relief."

Chapter Five: The Detective's Design Thinking Diagnosis—Human-Centered Innovation

Holmes compiled his comprehensive analysis.

"Ms. Kowalska, the essence of Design Thinking is 'the technology of human understanding.' Technology is merely a means. What must be solved are human challenges, and true innovation springs from deeply understanding those challenges."

Final Report After 24 Months:

HealthLink Technologies became Eastern Europe's leading health tech company.

Final Results: - Downloads: 50,000 → 800,000 (16x) - Paid members: 30,000 (established healthy revenue model) - Medical institution partnerships: 150 hospitals (physician recommendations) - Awards: European Health Tech Award Best Prize

The letter from Anna contained deep gratitude:

"Through Design Thinking, we completely pivoted from 'products for technologists' to 'products for patients.' Most important was understanding not what's technically possible, but what difficulties patients face in daily life. Now patients are always present in our development team, building products together."

The Detective's Perspective—Creation Beginning with Empathy

That evening, I contemplated the essence of innovation.

The true value of Design Thinking lies in shifting from technology bias to human-centeredness. No matter how superior the technology, if it doesn't solve true human challenges, no value is created.

Deep empathy is the starting point of true innovation. Entering users' lives, understanding their joys and pains, and weaving solutions from there. That process itself is Design Thinking.

"Innovation springs not from laboratories, but from human lives. Only those who understand this truth can create truly valuable things."

The next case will also depict the moment when human understanding opens up a company's future.

"Technology is cold. But technology warmed by empathy for humans has the power to change the world."—From the Detective's Notes