Kessler,B.(2015). Design, Business & Brand: How Creativity Becomes Innovation. [online].

Available from:
http://knowledge.insead.edu/entrepreneurship/design-business-brand-how-creativity-becomes-innovation4130

How would you characterize IDEOs process, organization, culture, and management? 2. What should
IDEO do and why? a. Should IDEO accept the Visor project as is (on a dramatically reduced schedule, b.
try to persuade Handsprings management to change its aggressive launch schedule? c. Or should they

simply decline the project? \ In your discussions, it is important to discuss, in addition to what, but why
IDEO should or should not take certain actions; evaluate each alternative.

Introduction:
Founded in 1991, IDEO is known as pioneers in developing innovative and
design consulting enterprise. IDEO has set forth a successful example
through

its

innovative

processes

and

designs

that

how

distinctive

accomplishments could be made. The new direction and trend that was set
forth

by

its

exclusive

invention

of

Palm

PDA

that

became

the

groundbreaking design for PDAs and keeping the function simple it attained
exclusive market positioning. Palm V is the most successful execution of
IDEO that has led to creation of benchmark and a successful innovative
product to strike back the competitors in the industry. The business model of
IDEO is more like an open and flexible place that facilitates innovative
product

designs

and

inventions

and

furthermore

advocates

the

manufacturing of more new designs and featured products. The profit

margins of IDEO are being triggered over last 20 years of success of the
company originating from innovation oriented product designs and that has
led to consumer satisfaction and continuous improvement for IDEO. The
constant improvements in engineering practices at IDEO along with process
reengineering amalgamate efforts to produce aesthetically exclusive and
functionally exceptional products at IDEO. Setting itself apart from other
companies, IDEO focus on holistic approach of product design set it apart
from other companies whose prime focus is on industrial designs rather than
overall product engineering. The company aims at improving its strengths
and abilities to meet clients expectations and pace out from other high
technology firms. The proven production system at IDEO sets forth a
welcoming culture for other organizations and corporations to avail their

services and appraise their key input and skills employed in designing
product strategy. Their fastest selling computer product called Palm pilot won
IDEO the laurels of success and fame and earned the name of fastest selling
computer product in the industry. Being compatible to technological
marketplace IDEO had also produced Newton handheld for Apple that was
totally a disruptive technology for users that furthermore triggered the need
of handheld device. Considering this as their core strategy IDEO is constantly
taking in the flux of renovation and constant inventions by refining their
processes and design strategies. This moreover won IDEO the market
positioning of the brand that not only cater the technological needs of the
consumer but consider innovative and differentiated features that endorses
differentiated technological interfaces.

IDEOS METHODOLOGIES:
The design methodologies at IDEO are the combined efforts of its expert
teams of engineers and professional whose knowledge, adeptness and
abilities reflect the companys doctrine of fulfilling anticipated demands of
the target market. The methodologies and techniques at IDEO incorporate
open innovation and acquire the benefits of assembling the skills of diverse
teams that bring forth distinctive product. The idea of best practices is
obtained from their clients that they furthermore integrates in their
processes and thus continually improve and evolve. IDEO makes this sure
that their design varies from that of their clients an competitors and that
their product should be next level epitome of innovation and creativity that is
produced through continuous improvement. the methodological emphasis at
IDEO is on design and engineering to produce distinctive product portfolio
and this methodological distinction have won them the award of worlds
largest design firm. The major clients of IDEO includes Apple , AT&T
Samsung, Philips and Hollywood film projects and many more, appraise IDEO
for their methodological transition and fore endorsing systematic approach
that initiates with brainstorming, prototyping, phased development and
innovation process.

The innovation process at IDEO as exhibited above is reflection of

prototyping, Brainstorming, product development process. The prototyping
part of the innovation process is the core element and is potential to IDEOs
basic design philosophy. It serves as tool and measure to communicate with
everyone involved in the design process. this entails a discussion process
and make sure that everyone is moving along the same prototype imaging .
Moreover prototyping entails three Rs that refer to rough (robust), rapid and
right prototype.
Business Environment

IDEOs culture
unconventional, exciting, creative, and innovative. Theeccentric working styles and
shifting of working groups helps keep the team members fresh andconstantly
excited. In the 90s, it got so innovative to the point of being ambiguous at times for
thestaff and management teams, but this was seen as providing fruitful conditions
for the generation of innovative thinking and ideas.
Process and Operations
IDEOs product creation process is unique
as it embraces the eccentricities of its business culture.This welcomed so as to
increase the value and creativity of product ideas. Teams are formed for thelife of a
project and then disbanded. As a result, there were no permanent job assignments
or jobtitles. Healthy teams are extremely important for stimulating creativity(Gino,
Todorova, Miron-Spektor, & Argote, 2009), but once a team has been established for
a long period of time, teammembers tend to fall into patterns of thought or role or
persona, of which might restrict theircreative ability and flexibility of
thought(Latendresse, 2006).
Moreover,

Intrinsicpsychological rewards such as achievement, challenge,recognition, creative

expression, and fun seem to be thedominate factors motivating employees to

engage in IDEO'sinnovation process. As IDEO does not have titles andorganizational

charts more extrinsic rewards such aspromotions and money are not what are
drawing theemployees to work for a company like IDEO. As said in thecase, being
asked to participate in a brainstorming session isactually the fun part of the job and
it is seen as a sign of being valued
Current Situation
Though the Palm V project is yet to be completed, a new company called
Handspring was formed in1998. With the help of IDEO, Handspring is intending to
create a more colorful and easier to usepalm-size computer. Handspring is intending
to make the new Palm less expensive, smaller and fullycompatible product that
could easily add functionality.
Issues
However, because of time pressures, low-cost goals, and the fact that the founders
were formerexecutives of 3Com and Palm, the company decided that market
research would not be essential forthe development of its first project. Dennis Boyle
was asked to design the competing product,though because of the ongoing
relationship to the competitor Palm, Boyle's team will have to keepthe rest of IDEO
in the dark about the project and the product would have to be developed
nearlytwice as quickly as the Palm V.The problem facing Boyle
was whether or not to put aside his companys tradition of spending
substantial amounts of time and energy on the design phase of a product in order to
rush the VisorPDA to market, which would be cheaper and have more potential for
expanding functionality, butwould lack the trademark high-quality and wellresearched design that had made IDEO designs thefront runners of innovation in the
industry.In a way, it seems that the priorities of IDEO and Handspring were at odds
with each other. IDEOfocuses on research and creativity as such deadlines were of
little concern to IDEO. On the other
hand, Handspring was proposing a process which will challenge IDEOs
operative routine with tightdateline. Boyle understands that IDEO
s
reputation could be damaged by taking on a product thathas such tight cost and
time constraints. He knows that Visor could be significantly better given that

IDEO Product Development

| University of Canterbury: Operations Managementthere were no development
constraints. However, with the reputation of the firm on the line, onemust take a
long-term approach when having to choose between such difficult options.
Choices
Boyle could:

Reject the offer to assist in the Handspring Visor product, but because so many of
theHandspring team members have close links to IDEO, it could create bitterness
orresentment between the teams.

Alternatively, he could ask the management to delay the release so that more time
could bespent designing it properly for the market it was intended for. This comes at
the risk of missing out on the planned market entry timing Handspring demanded.

Third option is to accept the development timelines and constraints. This means
using the
Palm Vs market research result
to improve functionality that would make it a popular,useful, and competitive
product.
Recommendations
If Handspring were to produce the Visor, it would need to market it towards a
different group of consumers than those who would buy a Palm V. The Visor
consumers will be a group of people whonot tech-savvy, less interested in design
and are price sensitive. The Visor improved features,
versatility (slot function), and colors would be the
significant differentiators for these people.Some market research would have to be
done to determine the relative value of these differentcomponents of the device for

the consumers.The option of going forward with the Visor project with the
Handspring constraints would essentiallymean
IDEOs development
Stages 0 and I would be skipped. This is the process which IDEO uses toget to know
their
customers
product, the company producing it and its history. In this situation,Handspring felt
this was unnecessary because the team members invented the market for the
PalmPilots and similar PDAs. These initial phases of doing the background work
would be skipped todevelop a product that was already in mind, using the product
development model more widelyused in the mainstream industry. Given that IDEO
was far from a mainstream design company, withsuch a unique culture and
methodology that had proven itself to be successful again and again, it
isunderstandable how much apprehension Boyle must have felt.IDEO has
contradictory interests for the two projects, on its way to releasing a new innovative
product; it cant afford to take away from the market share of its Palm Pilot V.
However, if the Visor
project is successful, it could have its name on another successful project. However,
if the product isrushed to market before it is as good as it could be, it could fail
with IDEOs name on it.
My recommendation for Boyle is:

Request more time for the development phase, stressing

that IDEOs job is to create great
products, and the Visor could be one such great product given there was no
timeconstraints.

Emphasize on the need for market research; the Palm V and the Visor are similar
products insome ways, but are, in fact, different in fundamental ways that will affect
the appeal for thetarget customers. Knowing who their target customers are in the
first place will help themto design the product that their customers want.

3
IDEO Product Development
| University of Canterbury: Operations Management

If Handspring declines the request to extend the roll-out deadline, Boyle should
request thatHandspring engage in whatever market research they are able to do
before pushing aheadthe design and production of the new device. This will
contribute to a better product that ismore tailored for the consumers who will want
it, giving the Visor a better chance of successwhen it does enter the marketplace.Ha
ndsprings management should be able to see that more market research and time
for design
means a better, stronger product for the market. This will make sales and customer
retention morerobust, as well as improve the reception from critics, setting a good
precedent for the new company.The fact that the founders were senior executives
and experienced professionals may have made it
more difficult for them to believe that they didnt know something about the
market. But
considering that they were introducing a new product, and especially from a new
company, ahealthy amount of humility could save the team a substantial amount of
time and money by helpingthem make better decisions that are more in alignment
with the desires of their potentialcustomers