AMBRISH ANIL ANKIT ANKITA

DEEPIKA KARTIK D SONAL

RAVISHANKAR
RITUTAPAN BHUWANESHWARI APARNA
 AGENDA

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

Phased Innovation
Brainstorming Prototyping
Development Process

Design
Methodology Philosophy

Equal emphasis on design and engineering; Diverse product portfolio

Worlds largest award-winning design firm
 TIMELINE
1999: 1st
1997-98: shipment
Phases I of Palm
1996:
IV of Palm V
Late 1990s: Revenues
V expected
IDEO had of $40-$50
1991:
300 staff, million
Mid 1980s: Merger
to form design Fall:
1978: Newton =>
IDEO centers Palm V
David handheld
across Project
Kelley Computing
geography starts
Design starts
formed

Re-
ABCs
engineered National
Nightline
shopping prominence
illustration
cart
 Early 1990s - Apple Computers Newton pad - ahead of
its time met near demise PALM-V
March 1996: Palm Pilot; critical technologies (Graffiti
PROJECT
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 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 Process
PHASE 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 > Structure

Flat 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
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
Synthesis
Workspace to reflect personalities Ideation
Encouraged to leave their work & Prototyping
walk around loner bicycles Evolution (Live in Beta)
Email brainstorming
 MANAGEMENT
Recruitment Begin at the beginning
o Young individuals out of its own internship programs
o Long process meeting with 10 staff members
Take a human-centered
Projects approach
o 1 large project as principal
o 3 to 4 projects as contributor
Fail early and often
o Teams disbanded after project completion
o No permanent assignments /job titles
o High involvement of clients Seek outside help
o creeping elegance
Assessment Blend big and small
o Peer review sessions projects
o High performers rewarded
Challenging projects Budget to the pace of
Shares in its client venture capital base innovation.
o No fire policy
Compensation Find talent
o Increase in attrition from 5% to 10% led to compensation
strategy change
o Compensation strategy redone to do more equity deals and Design for the cycle
seek royalties
HANDSPRING PROJECT
 INTRODUCTION

Formation Objective Team

Hawkins and Come up with a Joined by ten
Donna Dubinsky new fully members of
Resigned from compatible, original palm
3Com slightly smaller team
and inexpensive Collaborated with
clone of palm IDEO to come up
Addressing palms with the new
inability to add product
functionality
 Specifications Project

Inspiration Springboard slot at Launch of At a time when

from the back project hand held devices
Nintendo were used for
Game boy minor activities

Price 150 $ rather 300$

Ability to link Games, Pagers, demanded by
up through Cellphones, GPS, Palm
ROM cards voice recorders,
MP3, Cardiac
monitors, etc. Late 1999 just in
Deadline time for the
holiday season
Simplicity was
To ensure
the main maximum sales at
mantra the time of product
launch
 Accept the Visor project ??

Short term v/s long Ideologies at Reputation at

term loggerhead stake

Monetary gains v/s Rigorous customer IDEO worked long

image centered and hard to create a
development culture of
IDEO innovation and
Felt unnecessary to creativity
engage in market
research ot time
intensive
experimentation :-
Visor
 Persuade to change aggressive launch schedule ??

Dec 1996 Phase 0 Sep 1997 Phase III

Mar 1997 Phase I Jan 1998 Phase IV
May 1997 Phase II Oct 1998 Process Smoothing
Sep 1997 Phase III Feb 1999 Market Release

Reasons to Stick to Schedule Reasons to Extend

Considerable knowledge acquired Number of functionalities planned 10

during Palm V Each function, different user profile,

Team at Handspring same as Palm V different use-case

Project Each functionality will go through parts

Being Secretive within IDEO itself of each of the phases of designing at

IDEO
could be difficult
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 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 Time Market Resources

IDEOs Deep Time should research Allocation
Drive, large not be a Palm and Visor IDEOs
resources constraint fundamentally reputation on
pooled to Need of different line
achieve more shorter In sync with Better Visor
in short time product IDEOs (Quality &
eg: shopping development practices Design)
cart in just 5 cycle
days

Accept the Project

Hybrid process & design methodology to cope with the demands