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MTI Project Presentation Ideo Product Development

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BUSINESS MODEL IDEO Timeline Palm-V Project Process Organisation Culture INTRODUCTION Management Introduction Evaluation of Options


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



Phased Development

Innovation Process


Design Philosophy

Equal emphasis on design and engineering; Diverse product portfolio Worlds largest award-winning design firm

TIMELINE1997-98: Phases I IV of Palm V 1999: 1st shipment of Palm V expected

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

Reengineered shopping cart

ABCs Nightline illustration

National prominence

Early 1990s - Apple Computers Newton pad - ahead of its time met near demise

March 1996: Palm Pilot; critical technologies (Graffitiprogram 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 ProcessPROTOTYPING Central to IDEOs design philosophy Tool to communicate with everyone Ensured that everyone was imagining the same design during discussions about a product Followed the three Rs: Rough, Rapid, and Right!

BRAINSTORMING Daily sessions Brainstormers Deep dive approach

Innovation Process

Product Development ProcessPHASE 0: Understand/ Observe

PHASE I: Visualize/ Realize

PHASE II: Evaluating/Refining

PHASE III: Implement (detailed engineering)

PHASE IV: Implement (manufacturing liaison)

IDEOs 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.

Organization > StructureFlat organization

No organization chart No permanent job assignments or job titles Motivation from peer pressure No administrative issues

Followed Amoeboid growth strategy

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

CULTURE Desirabilityo 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 Recruitmento Young individuals out of its own internship programs o Long process meeting with 10 staff members Begin at the beginning Take a human-centered approach Fail early and often

Projectso o o o o o 1 large project as principal 3 to 4 projects as contributor Teams disbanded after project completion No permanent assignments /job titles High involvement of clients creeping elegance

Seek outside help Blend big and small projects Budget to the pace of innovation. Find talent

Assessmento Peer review sessions o High performers rewarded Challenging projects Shares in its client venture capital base o No fire policy

Compensationo Increase in attrition from 5% to 10% led to compensation strategy change o Compensation strategy redone to do more equity deals and seek royalties

Design for the cycle


INTRODUCTIONFormationHawkins and Donna Dubinsky Resigned from 3Com

ObjectiveCome up with a new fully compatible, slightly smaller and inexpensive clone of palm Addressing palms inability to add functionality

TeamJoined by ten members of original palm team Collaborated with IDEO to come up with the new product

SpecificationsInspiration from Nintendo Game boySpringboard slot at the back

ProjectLaunch of projectAt a time when hand held devices were used for minor activities

Ability to link up through ROM cards

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

150 $ rather 300$ demanded by Palm


Late 1999 just in time for the holiday season To ensure maximum sales at the time of product launch

Simplicity was the main mantra

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

Persuade to change aggressive launch schedule ?? 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 SmoothingFeb 1999 Market Release

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 ExtendNumber 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 atIDEO Palm V Project still ON

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 employeesUnique 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 constraintsLosing trust in the market new clients would be apprehensive of hiring IDEO for new projects

HANDSPRING PERSPECTIVEIDEO 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


Competencies IDEOs 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 IDEOs practices

Resources Allocation IDEOs reputation on line Better Visor (Quality & Design)

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