Design Thinking is a 5-stage iterative process that involves empathizing with users to understand problems, defining the core problems, ideating potential solutions, prototyping solutions, and testing them. It is a human-centered approach useful for solving ill-defined problems. The 5 stages are empathize, define, ideate, prototype, and test. Design thinking helps businesses optimize processes, the IT industry develop solutions that meet user needs, education institutions address student challenges, and healthcare lower costs while improving quality.