The business model layer of the design thinking for strategy approach focuses on designing how the organisation wants to create value for its customers and, subsequently, its stakeholders. The first step, observing, aims at identifying insights that may be of value during designing. The focus is on laying the groundwork for generating innovative ideas on which the organisation’s target business model and strategy can be based. To do so, the target population is observed in its natural environment, looking for analogies, associations, and contradictions. Observing proceeds in four steps: passively observing the target population, conducting ethnographic interviews with informants, cross-checking insights gained by running focus groups, and performing secondary research to get a holistic perspective. The goal of observing is identifying challenges to be addressed rather than focusing on symptoms as perceived by the target populations.