AMBRISH ANIL ANKIT ANKITA DEEPIKA KARTIK D SONAL RAVISHANKAR RITUTAPAN BHUWANESHWARI APARNA

AGENDA

• IDEO

• Timeline

• Palm-V Project

INTRODUCTION

• Process

• Organisation

• Culture

• Management

BUSINESS MODEL

• Introduction

• Evaluation of

Options

• Recommendation

HANDSPRING PROJECT

INTRODUCTION

• Estd. in 1991: David Kelley Design merged with ID Two, (Bill

Moggridge) and Matrix (Mike Nuttall) – Kelley, CEO

• Merger pioneered the design version of “concurrent engineering”

• Major clients: Apple Computer, AT&T, Samsung, Philips, Amtrak,

Steelcase, Baxter International, NEC Corp & Hollywood film projects

• Equal emphasis on design and engineering; Diverse product portfolio

• World’s largest award-winning design firm

Brainstorming

Methodology

Prototyping

Design Philosophy

Phased Development

Innovation Process

TIMELINE

1978: David Kelley Design formed

Mid 1980s: Newton => handheld Computing starts

1991: Merger to form IDEO

Late 1990s: IDEO had 300 staff, design centers across geography

1996: Revenues of $40-$50 million

• Fall: Palm V Project starts

1997-98: Phases I – IV of Palm V

1999: 1st shipment of Palm V expected

Re-engineered shopping

cart

ABC’s Nightline

illustration

National prominence

PALM-V PROJECT

• Early 1990s - Apple Computer’s Newton pad - ahead of

its time – met near demise

• March 1996: “Palm Pilot”; critical technologies (Graffiti

program for handwriting recognition and “syncing,”

• Hawkins - maniacal focus on product simplicity - wood

prototype

• Palm Company to U.S. Robotics to 3Com

• New approach - female users - turned to IDEO

• Inspiration- sleek Motorola StarTac mobile phone,

metal Canon minicamera, Pentax opera glasses, and a

telescoping pair of eyeglasses

• Janice Robert, VP 3Com – “appeal at not just the

rational level but the emotional level”

• Late 1996: Palm V project

• Boyle - observational database –spread to 200 staff

• Market release in February 1999

Innovation Process

PROTOTYPING

• Central to IDEO’s design philosophy

• Tool to communicate with everyone

• Ensured that everyone was imagining the same design during discussions about a product

• Followed the three “R’s”: “Rough, Rapid, and Right!”

BRAINSTORMING

• Daily sessions

• Brainstormers

• Deep dive approach

Innovation Process

PHASE IV: Implement (manufacturing liaison)

PHASE III: Implement (detailed engineering)

PHASE II: Evaluating/Refining

PHASE I: Visualize/ Realize

PHASE 0: Understand/ Observe

IDEO’s product creation process is unique in that it embraces the eccentricities of its corporate culture, and does so to increase the creativity and value of the designs it produces.

Product Development Process

Organization > Structure

• No organization chart

• No permanent job assignments or job titles

• Motivation from peer pressure

• No administrative issues

Flat organization

Followed Amoeboid growth strategy

If a picture is worth a thousand words, a prototype is worth ten thousand

CULTURE

• Desirability o Focusing on small section

o Greater number of iteration

o “Enlightened trial and error” – failure part of the culture

• Democracy of ideas

• Archived discarded ideas for future

• Smaller units

• Playroom atmosphere

– “show-and-tells”

– “Tech Box”

• Workspace to reflect personalities

• Encouraged to leave their work & walk around – loner bicycles

• Email brainstorming

• Synthesis

• Ideation

• Prototyping

• Evolution (Live in Beta)

MANAGEMENT

• Recruitment o Young individuals out of its own internship programs

o Long process – meeting with 10 staff members

• Projects o 1 large project as principal

o 3 to 4 projects as contributor

o Teams disbanded after project completion

o No permanent assignments /job titles

o High involvement of clients

o “creeping elegance”

• Assessment o Peer review sessions

o High performers rewarded

• Challenging projects

• Shares in its client venture capital base

o No fire policy

• Compensation o Increase in attrition from 5% to 10% led to compensation

strategy change

o Compensation strategy redone to do more equity deals and seek royalties

Begin at the beginning

Take a human-centered approach

Fail early and often

Seek outside help

Blend big and small projects

Budget to the pace of innovation.

Find talent

Design for the cycle

HANDSPRING PROJECT

Hawkins and Donna Dubinsky

Resigned from 3Com

Formation Come up with a new fully compatible, slightly smaller and inexpensive clone of palm

Addressing palm’s inability to add functionality

Objective Joined by ten members of original palm team

Collaborated with IDEO to come up with the new product

Team

INTRODUCTION

Inspiration from Nintendo Game boy

Springboard slot at the back

Ability to link up through “ROM” cards

Games, Pagers, Cellphones, GPS, voice recorders, MP3, Cardiac monitors, etc.

Simplicity was the main mantra

Launch of project

At a time when hand held devices were used for minor activities

Price 150 $ rather 300$ demanded by Palm

Deadline Late 1999 just in time for the holiday season

To ensure maximum sales at the time of product launch

Specifications Project

Accept the Visor project ??

Short term v/s long term

• Monetary gains v/s

image

Ideologies at loggerhead

• Rigorous customer

centered

development –

IDEO

• Felt unnecessary to

engage in market

research ot time

intensive

experimentation :-

Visor

Reputation at stake

• IDEO worked long

and hard to create a

culture of

innovation and

creativity

Reasons to Stick to Schedule

• Considerable knowledge acquired

during Palm V

• Team at Handspring same as Palm V

Project

• Being Secretive within IDEO itself

could be difficult

Reasons to Extend

• Number of functionalities planned – 10

• Each function, different user profile,

different use-case

• Each functionality will go through parts

of each of the phases of designing at

IDEO

• Palm V Project still “ON”

• Dec 1996 – Phase 0

• Mar 1997 – Phase I

• May 1997 – Phase II

• Sep 1997 – Phase III

• Sep 1997 – Phase III

• Jan 1998 – Phase IV

• Oct 1998 – Process Smoothing

• Feb 1999 – Market Release

Persuade to change aggressive launch schedule ??

Decline the Project ??

Legal contract – 3Com may take legal action against IDEO

Conflict of interest within IDEO

Philosophy & Culture - IDEO had created a supportive culture for creativity and innovation

Informality & free ideations would not be possible as the project would have to be kept secret from other IDEO employees

Unique methodology – not a mainstream design company, design process consisted of intense prototyping & brainstorming

Fear of failure – reputation could be damaged by taking on a product that has such tight cost and time constraints

Losing trust in the market – new clients would be apprehensive of hiring IDEO for new projects

HANDSPRING PERSPECTIVE

IDEO is its best bet to complete the design of its new device in the short period, should try to convince with commitment of more resources

As IDEO has already worked on similar products with the client team, it can do away with the Phase 0 & I

Handspring leadership is also committed to serve the customer needs and is experienced in sensing the market pulse – Leverage this expertise

Handspring should try to push for sticking to the proposed aggressive timelines otherwise the new Palm V might eat into a lot of potential customer base

IDEO should be persuaded to deviate from its tried & tested process to take up this project as a challenge with time & cost constraints

RECOMMENDATIONS

Competencies

• IDEO’s Deep Drive, large resources pooled to achieve more in short time eg: shopping cart in just 5 days

Time

• Time should not be a constraint

• Need of shorter product development cycle

Market research

• Palm and Visor fundamentally different

• In sync with IDEO’s practices

Resources Allocation

• IDEO’s reputation on line

• Better Visor (Quality & Design)

Accept the Project Hybrid process & design methodology to cope with the demands