Masih Anwar

Shella Bakke
Matthew Eldred
Karen He

IDEO Product Development

Breaking the traditional project management process
Overview of IDEO

Based out of Silicon Valley since 1991, IDEO uses Design Thinking methodologies
coupled with engineering to create aesthetically appealing products with ease of
use

 Prototyping is IDEO’s philosophy to go through multiple iterations and focus on small parts
of the prototype.

 Extremely challenging to create devices involving compact and complex design such as
automotive components, medical instruments, and small computing devices

 Clients: Apple, AT&T, Samsung, Philips, Amtrak, Steelcase, Baxter International, NEC Corp.

 Design Centers: Boston, Chicago, San Francisco, London, Palo Alto, Grand Rapids, New
York, Milan, Tel Aviv, Tokyo. DCs run independently for local business but best practice
exchanges.
Project Phases: IDEO versus PMBOK

IDEO PMBOK
 IDEO’s Innovation Process  Monitoring & Controlling
 Phase 0: Understand & Observe Processes
 Phase 1: Visualize & Realize  Initiating Processes
 Phase 2: Evaluate & Refine  Planning Processes
 Phase 3: Implement & Detailed  Executing Processes
Engineering  Monitoring and Controlling
 Phase 4: Implement & Processes
Manufacturing Liaison  Closing Processes
Brainstormers at IDEO

 Closely tied to prototyping – took place throughout Phases 1 and 2 of the

project
 Brainstorming Principles
 Stay focused on topic
 Encourage wild ideas
 Defer judgment to avoid interrupting flow of ideas
 Build on the ideas of others
 Hold only one conversation at a time
 Go for quantity!
 Be visual

 Other office initiatives designed to inspire creativity:

 Monday ‘Show & Tells’
 ‘Tech Box’ to inspire innovators by having them play with ~300 objects including switches,
buttons, archery bows, etc.
Prototypes at IDEO

 Used as a way to communicate

Prototypes ensured everyone was imagining the same design
 Could be simple or sophisticated
Depends upon project status
 Rough, Rapid, Right!
The goal of prototyping was to get one specific aspect of
design correct
Project Roles at IDEO

 Project roles were very transient

Roles assigned by team leaders and played out by team
members
Project teams formed for the life of a project and then
disbanded
 No permanent job titles or assignments
Leaders emerged on basis of personal excitement about a
project
Engineers and designers did not feel forced into management
Overview of Palm V Project

• Jeff Hawkins developed the ‘Palm Pilot’ that meant to

compete with paper rather than larger computers. Palm
Pilot had immediate customer acceptance, leading new
entrants in the market with new functionalities but Jeff
Hawkins cared about simplicity.
• Dennis Boyle from IDEO to work with Hawkins to
simplify the Palm and draw more female users.
Currently 95% of Palm users are men.
• Boyle’s team outlined plans for a slimmer, sleeker
version of the existing Palm. Reducing thickness from
19mm to 11mm and reducing weight by ⅓
Comparison: Palm V and Handspring Visor

 Palm V  Handspring Visor

 Project start Fall 1996, Project
end February 1999 (22 months)
 Phase 0: 3 months
 Phase 1: 2 months
 Phase 2: 5 months
 Phase 3: 6 months
 Phase 4: 6 months
 Project start July 1998, project end
October 1999 (10 months)
 Phase 1: 2 months
 Phase 2: 3 months
 Phase: 3 & 4: 5 months
 $150

 $450  Inexpensive plastic housing and

AAA batteries
 Rechargeable lithium-ion
battery  Springboard for cartridge insert
Should IDEO accept Visor Project?

 Innovation & design vs. client’s goals

 ‘tried and true technology’ vs. early phases of development process

Decline Project Accept Project Delay Project

Pro: Pro: Pro:

• IDEO’s brand & values • New design to IDEO’s portfolio • More time for design prototype
• Gain market share in hand-held • Better quality
Con: devices
• Potential lost revenue Con:
• Hawkin’s relationship at stake Con: • Lowered projected Handspring
• IDEO’s brand reputation sales
 Our Suggestion would be to go with option 3 – Delay Project.
Results

 Dennis Boyle accepted visor project

 Visor was released in September 1999, but the product had design
flaws
 “In one quarter of selling exclusively over its Website, Handspring racked up
sales of $15.8 million on an unspecified number of units with 32% gross margin” -
Fortune
 “As that selling season was marred by glitches at Handspring's Website, which
made it difficult for the company to satisfy demand, investors still don't have even
a real yardstick to measure sales” - Fortune

 In 2002, handspring discontinued Visor and integrated Visorphone to

launch TREO smartphones
 In 2003, Handspring merged with Palm, Inc. (defunct in 2011)
Questions & Discussion
Appendix
New Project Process

 IDEO would provide ideas and concepts that are within

budget and timelines
 IDEO submits cost and time estimates to potential clients,
ranging from $40K to $1M
 Designers’ perfectionism would lead to cost and time
overruns (Creeping elegance)
Palm V and Handspring Visor Timeline
Reviews about IDEO

 “We are at a critical point where rapid change is forcing us to

look not just to new ways of solving problems but to new
problems to solve.” -Tim Brown CEO
 “Opportunity
to work on amazing challenges. Flexibility to shape
your work and career. Amazing colleagues and culture.” –
Anonymous Employee “Glassdoor”
“One can’t help but wonder if these design flaws could have
been avoided, had IDEO been able to spend more time early on
during the product development” – Anonymous researcher