What’s the secret to success in business? What if there was a new formula—a new way of thinking—that resulted in long-term gains? According to designer, educator and writer Roger Martin, author of the new book The Design of Business, it’s all about innovation. “It’s the key to long-term business success,” he explains, “but companies think in ways that inadvertently squelch it time and again.”

At Continuum last night for a book signing and discussion led by Continuum CEO Harry West, Martin told a group of approximately 100 designers and business leaders about his theories and strategies from the recently published book. “In the modern business world,” says Martin, “analytical thinking is dominant.” Ever more scientific thinking is being applied to business. In corporations today, it’s not considered a rigorous idea if you can’t bring in data. The problem with this logic: You can’t prove anything new. “It drives out advances,” he says, “companies are lobbing off innovation with this thinking.”

When corporations begin to incorporate design thinking into their practices, they’ll see innovation take hold. How does it work? Design thinking, according to Martin, represents the advancement of knowledge. Martin’s theory posits that knowledge moves through a set of steps, from “mystery” (an unexplainable problem) to “heuristic” (a rule of thumb that guides us toward a solution) to “algorithm” (a replicable success formula). As knowledge advances through this “knowledge funnel,” productivity grows and costs drop. “The companies that will be successful in the next century are those that use this system,” he says, “and then reinvest in the next idea.”

One of the keys to making it work: Encourage abductive logic—acting on what’s probable, not certain; pushing yourself to live in the land of “what if.” “That’s where breakthroughs happen,” he says. Martin’s advice for all those folks working to make their business successful: Remain curious. “If you do this, innovation will happen,” he says. “And how hard—or expensive—is that?”

Last week, I had the pleasure of judging the first annual Staples Global EcoEasy Challenge, a competition among universities from around the world to develop the next environmentally friendly office product. Some of the world’s top engineering students, from colleges and universities in Australia, Brazil, Germany, India, and the United States, presented some really clever ideas.

The students from the University of New South Wales in Australia took first place — and a $25,000 grand prize — with their BIND concept, which stands for Binder Interlock Neat Device. A cool innovation that works like a tie-and-ring system for organizing documents, BIND represents an elegant improvement from zip ties, increasing the potential uses and likely reuses of the product. The assumption is that people will use BIND in place of less eco-friendly solutions for binding paper, such as three binders, and will be more likely to hold onto BIND as opposed to the use-and-dispose model associated with most zip ties.

In addition, there were two runners up, who each received $5,000. A team from the University of California Berkeley created an Eco Stapler made of bamboo. It was an obvious eco improvement to the everyday stapler. Nothing surprising, but the idea was well thought out and the team did their homework. Lastly, a team from the Indian Institute of Technology in Madras won for the Step Shredder, an innovative idea to make a manually powered shredder. It would encourage exercise (much needed in the work environment!) and reduce energy consumption (much needed in our world). I wonder how receptive the office consumer would be to this idea…

It was great to get a glimpse into the minds of the next generation of designers and engineers. Here are a couple of additional learnings from event:

Ideas – There is no shortage of ideas that could help reduce our impact on the environment. The larger challenge remains; getting consumers to adopt new practices.

Passion – The students were passionate about the environment to the point they were often looking to trade convenience for a more sustainable solutions.

PowerPoint – Who needs PowerPoint? Each presenter used Presi to zoom and circle their way through their ideas, with many incorporating well-produced animations and video shorts.

Storytelling – These students definitely understand the value of a well-told story. Presentations included consideration of how an idea could impact a country, an economy, a business and the consumer.

Science and Emotion – Each presentation presented the math that substantiated the benefits (these were engineers, after all), and they also invested equal time on the emotional values and benefits.

I’m looking forward to seeing how this competition evolves next year, and I hope it can continue to raise awareness around sustainability and the office to help introduce creative solutions that reduce the corporate footprint. Kudos to Staples for taking a responsible leadership position on environmental affairs.

For more information on the event and the winners, go to: http://ecoeasychallenge.com/