Design thinking is a non-linear, iterative process that uses five phases - Empathize, Define, Ideate, Prototype, and Test - to understand users, challenge assumptions, and create innovative solutions. It is a human-centered approach that draws from design methods to integrate user needs, technology possibilities, and business factors. The process starts by observing and empathizing with users to understand their needs, then defines the problem, ideates potential solutions, prototypes ideas, and tests them with users in an iterative process.