Haniffan Zikri Anugrah De Tasya

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Case Summary for IDEO Case (Product Design)

• Dennis Boyle, a member of IDEO, reflects on his preference for café latte while sipping
espresso at Peet’s coffeehouse in Palo Alto.
• IDEO is a renowned product development firm based in Silicon Valley, known for its
success in designing innovative products.
• Boyle is tasked with designing the Visor, a competing product to the Palm V hand-held
computer, by his former colleagues who now work at Handspring.
• Handspring aims to release a slightly smaller and less expensive palm-size computer
compatible with 3Com’s operating software.
• IDEO’s approach to innovation emphasizes "failing often to succeed sooner,"
generating numerous innovative ideas before finalizing a product through discipline
and fast decision-making.
• IDEO's philosophy blends Californian iconoclasm with a genuine respect for new ideas
and invention, contributing to the design of thousands of products over two decades.
• IDEO gained national prominence when ABC’s Nightline showcased its innovation
process by redesigning the supermarket shopping cart in just five days.
• Boyle faces a dilemma of whether to suggest extending the development schedule for
the Visor, fearing that an overly aggressive timeline might compromise the quality of
the final product.

History of IDEO

• David Kelley's journey into design was sparked by a need for a saw during a college
move, leading him to explore the world of workshops and sparking his interest in
design.
• Despite briefly considering switching majors to fine arts, Kelley remained in
engineering but discovered a passion for design.
• Kelley's first significant design was a telephone that could only ring one number, which
he made for his college girlfriend.
• In 1975, Kelley joined the Stanford University program in product design during a time
of innovation and new opportunities in Silicon Valley.
• Kelley observed a gap in the market for general product development firms amidst the
specialists prevalent in consulting firms.
• In 1991, David Kelley Design merged with ID Two and Matrix to form IDEO, with
Kelley becoming the CEO.
 • IDEO provided a comprehensive range of services for designing, developing, and
manufacturing new products, pioneering concurrent engineering—a blend of art and
engineering to create both aesthetically pleasing and technically proficient products.
• The merger brought together various disciplines such as mechanical and electrical
engineering, industrial design, ergonomics, information technology, prototype
machining, and cognitive psychology under one roof.
• IDEO's approach exemplifies the utility of concurrent engineering, where close
collaboration between designers and engineers ensures both functionality and aesthetics
in product design.
• IDEO specializes in practicing concurrent engineering, particularly in challenging areas
such as automotive components, medical instruments, and small computing devices,
where small changes can have unforeseeable ripple effects.
• Unlike its competitors, IDEO places equal emphasis on both design and engineering,
allowing it to tackle complex design challenges effectively.
• Major clients of IDEO include Apple Computer, AT&T, Samsung, Philips, Amtrak,
Steelcase, Baxter International, and NEC Corp, with the company completing
thousands of projects across various industries.
• IDEO's diverse projects range from designing Apple's first mouse to creating ski
goggles, medical instrumentation, and even scale-model submarines for Hollywood
films like "The Abyss" and "Free Willy."
• By the late 1990s, IDEO employed over 300 staff and maintained design centers in
multiple cities worldwide, chosen for their stimulating environments.
• IDEO emphasizes continuous improvement, studying workplace interactions through
video cameras and reviewing completed projects to optimize its design processes.
• IDEO's success surged as companies outsourced more design projects due to corporate
downsizing, with revenues coming from various sectors such as medical, consumer,
and telecommunications/computers.
• IDEO gained national prominence when it televised a segment on ABC showcasing its
innovative redesign of the shopping cart, which included replacing the traditional large
basket with a system of baskets for increased usability and security features to deter
theft.

Design Philosophy and Culture

• Prototyping is central to IDEO's design philosophy, facilitating communication with

clients, marketers, experts, and end users by ensuring a shared understanding of product
design.
• IDEO emphasizes rapid prototyping, with skilled machinists in all offices producing
both simple and sophisticated prototypes using materials such as cardboard, foamcore,
Legos, and Erector sets.
• Early-stage prototypes are intentionally imperfect, allowing designers and engineers to
learn from both successes and failures.
• IDEO follows the three "R's" of prototyping: "Rough, Rapid, and Right," focusing on
specific aspects of a product to ensure they are correct.
• The company's prototyping process fosters creativity and innovation by encouraging a
greater number of iterations and the exploration of unconventional ideas.
• IDEO's culture embraces failure as part of the design process, with discarded ideas
archived for potential future use.
• The company employs brainstorming sessions to generate numerous ideas, often guided
by the principle that ideas should initially sound absurd.
• Deep Dive£ approaches are used to overcome project stagnation, allowing teams to
intensely focus on generating creative concepts and prototypes.
• IDEO's organizational culture mirrors David Kelley's playful and messy mindset,
fostering an environment comfortable with confusion, incomplete information,
paradox, irony, and fun.
• Client involvement is crucial throughout the design process, with frequent meetings to
discuss project progress, budgets, timelines, and opportunities for further innovation.
• IDEO's offices are described as lively and energetic playgrounds, fostering creativity
and collaboration among experts of various disciplines.
• The company encourages knowledge sharing through "show-and-tell" sessions and
maintains a "Tech Box" filled with curiosities and gadgets to inspire innovation.
• IDEO's growth strategy involves keeping units small to maintain a democracy of ideas,
with the company expanding by budding out smaller design studios.
• Employees are empowered to design their own workspaces, reflecting their
personalities and fostering rapid project transitions.
• IDEO embraced Silicon Valley's informal culture by discouraging formal titles and
dress codes, encouraging employees to leave their desks and interact with each other.
• The company invested in prime Silicon Valley locations to stimulate employee
interactions and provided free loaner bicycles for easy movement between buildings.
• Management rarely fired employees, focusing instead on managing and rewarding high
performers. Turnover remained low, at less than 5% per year throughout much of the
1990s.
• Recruitment involved extensive meetings with staff members, often over lunch, with
many recruits coming from IDEO's internship programs and Stanford University, where
David Kelley served as a professor.
• IDEO operated as a flat organization, with project teams forming for the duration of a
project and then disbanding, eliminating permanent job assignments or titles.
• Employees could work on multiple projects simultaneously, with project leaders
emerging based on personal excitement and peer pressure.
• The lack of hierarchy aimed to prevent the promotion of designers and engineers into
administrative roles, preserving their focus on product creation.
• However, growth led to some changes, with increased bureaucratization and the
emergence of politics and agendas within the company.
• By the late 1990s, turnover increased to 10% as employees sought opportunities in
Internet-based firms offering high-tech wealth.
 • To counter increasing attrition, IDEO planned to revise its compensation strategy,
incorporating more equity deals and seeking royalties for its employees.

IDEO’s Innovation Process

• Brainstorming was integral to IDEO's design methodology, often coupled with rapid
prototyping to generate a whirlwind of activity and ideas.
• IDEO followed several principles of brainstorming, including staying focused on the
topic, encouraging wild ideas, deferring judgment, building on others' ideas, holding
one conversation at a time, aiming for quantity, and using visuals to aid understanding.
• Brainstorming sessions, or "brainstormers," were limited to no more than eight invitees
and were viewed as a sign of worth within the organization.
• IDEO's product development process comprised several phases, including
understanding and observing the client's business (Phase 0), visualizing and realizing
product directions (Phase I), evaluating and refining design prototypes (Phase II),
implementing detailed engineering (Phase III), and liaising with manufacturing (Phase
IV).
• Despite delineated phases, IDEO had mixed feelings about formalizing the innovative
process, recognizing the delicate balance between process and innovation and
celebrating failures as part of the prototype culture.
• Equipped with rapid prototyping, brainstorming, and a well-honed product
development process, IDEO believed it could provide value to virtually any client,
leveraging the diversity and experience of its personnel to tackle a wide range of
problems.
• Occasionally, IDEO encountered unfamiliar challenges, such as when the governor of
Hawaii sought advice on economic reforms, highlighting the company's reputation for
creative problem-solving beyond traditional design projects.

The Palm V Project

• In the early 1990s, handheld computing experienced both its inception and nearly its
demise with the introduction of Apple Computer's Newton pad, which proved ahead of
its time and faced user frustration due to handwriting recognition issues and
cumbersome size.
• California-based engineer Jeff Hawkins revolutionized the handheld computing market
with the introduction of the "Palm Pilot" in March 1996, focusing on simplicity and
essential functionalities like Graffiti handwriting recognition and data synchronization.
• Hawkins' relentless focus on simplicity led to the Palm Pilot's rapid acceptance despite
its basic features, becoming the fastest-selling computer product ever.
• The success of the Palm Pilot attracted competitors and spurred advancements in
handheld devices, with features like vibrating alarms and increased memory.
• Hawkins emphasized simplicity over new features, aiming to appeal to a broader
audience, including female users.
• IDEO was enlisted by Palm to fulfill Hawkins' vision, with Dennis Boyle leading the
project due to his expertise and enthusiasm for the Palm Pilot.
• Inspired by sleek products like the Motorola StarTac mobile phone, Boyle's team aimed
to create a slimmer, sleeker version of the Palm Pilot, focusing on emotional appeal as
well as functionality.
• The project involved extensive user research and feedback gathering, with IDEO staff
members becoming early users of the Palm Pilot to provide insights.
• Female designers at IDEO challenged conventional design norms, advocating for a
curvier, more aesthetically pleasing product to attract female users.
• Weekly meetings between IDEO and Palm ensured constant feedback and prototype
iterations, focusing on even the smallest details to accommodate various user needs and
preferences.
• Technical challenges, such as integrating lithium-ion batteries and working with
anodized aluminum for casing, were overcome through collaboration between the Palm
and IDEO teams and manufacturers.
• By May 1997, the Palm V project transitioned into Phase II, which focused on
evaluation and refinement. Computer-aided design (CAD) engineering was utilized to
create accurate industrial models resembling the final product.
• Usage patterns observed during Phase I were incorporated into the design to allow for
quick recharging without shortening battery life.
• The team moved towards finalizing the model by selecting solutions, vendors, and
sources. Each part of the mechanical model was machined to closely resemble the final
mass-produced parts.
• Around 20-25 prototypes were created by the end of Phase II, representing various
iterations of the design.
• Phase III, which began in the fall of 1997, involved detailed engineering and
implementation. Every component was engineered for functionality in terms of
electronics and software.
• Production prototypes were created for drop testing and to meet government
regulations. Prototype models could cost over $30,000 each by this stage.
• The team faced challenges, such as binding the complex unit together without using
screws, ultimately opting for industrial glue despite personnel changes within 3Com.
• By the end of Phase IV, the implementation phase, the "Razor" was ready for
production release. The Palm division planned to retain some IDEO personnel for
another six months to assist with gearing up for market release.
• Pilot production aimed to smooth processes for manufacturing up to 5,000 units a day,
with hundreds of personnel expected to be involved at manufacturing sites and vendor
sites worldwide.
• Challenges remained, including addressing display cracks, electrostatic charge,
docking problems, cover imperfections, and procurement of supplies. An aggressive
schedule added complexity to routine manufacturing tasks.
The Handspring Project

• In July 1998, Jeff Hawkins and Donna Dubinsky resigned from 3Com on amicable
terms to establish their own company in Palo Alto. Part of the motivation behind this
move was the desire for greater autonomy, as 3Com's overall performance didn't
sufficiently reward personnel with stock despite the success of the Palm line.
• Their new company aimed to produce a fully compatible, slightly smaller, and less
expensive clone of palm-size computers, addressing the Palm's limitations in adding
functionality.
• Hawkins, now chief product officer at Handspring, signed a licensing agreement with
3Com for the right to use the Palm operating system, ensuring compatibility with
existing Palm applications.
• The proposed device, named the "Visor," featured a "Springboard" slot on the back,
allowing users to plug in various modules for additional functionality, inspired by the
interchangeable cartridges of Nintendo's Game Boy.
• Venture capitalists readily funded the project, anticipating its potential success in the
handheld computing market.
• The Visor team saw little need for market research beyond basic considerations like
price, memory, and colors, confident in their understanding of the marketplace.
• Despite skeptics questioning the demand for multifunctional handheld devices,
Hawkins and Dubinsky insisted on a low price point of $150 to attract a wider audience.
• The aggressive development schedule aimed for a product launch by late 1999,
requiring a rapid development cycle of about 10 months.
• Dennis Boyle, leading the IDEO team working on the Visor project, faced challenges
balancing the client's aggressive schedule with IDEO's emphasis on innovation and
design excellence.
• The Visor project required compromises such as using inexpensive plastic housing and
AAA batteries instead of rechargeable lithium-ion batteries, sacrificing some of the
style and features found in previous projects like the Palm V.
• Boyle contemplated whether to persuade Handspring to postpone the Visor launch to
allow for a more comprehensive innovation process or to proceed with the aggressive
schedule as requested.