AMBRISH ANIL ANKIT ANKITADEEPIKA 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 Diverse product portfolio • World’s largest award-winning design firm . Philips. Steelcase. Amtrak. in 1991: David Kelley Design merged with ID Two. NEC Corp & Hollywood film projects Phased Innovation Brainstorming Prototyping Development Process Design Methodology Philosophy • Equal emphasis on design and engineering. CEO • Merger pioneered the design version of “concurrent engineering” • Major clients: Apple Computer. AT&T. Samsung. INTRODUCTION • Estd. (Bill Moggridge) and Matrix (Mike Nuttall) – Kelley. Baxter International. 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- ABC’s engineered National Nightline shopping prominence illustration cart . metal Canon minicamera. Robotics to 3Com • New approach .Apple Computer’s Newton pad .ahead of its time – met near demise PALM-V • March 1996: “Palm Pilot”.wood prototype • Palm Company to U. and a telescoping pair of eyeglasses • Janice Robert. critical technologies (Graffiti PROJECT program for handwriting recognition and “syncing.maniacal focus on product simplicity .S.” • Hawkins . VP 3Com – “appeal at not just the rational level but the emotional level” • Late 1996: Palm V project • Boyle .• Early 1990s .observational database –spread to 200 staff • Market release in February 1999 .sleek Motorola StarTac mobile phone. Pentax opera glasses. female users .turned to IDEO • Inspiration. . Rapid. and Right!” BRAINSTORMING • Daily sessions • Brainstormers • Deep dive approach .Innovation Process PROTOTYPING • Central to IDEO’s design philosophy • Tool to communicate with everyone • Ensured that everyone was imagining the same design during discussions about a product • Followed the three “R’s”: “Rough. 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) IDEO’s 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 . a prototype is worth ten thousand .If a picture is worth a thousand words. 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 . 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 . 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. 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 palm’s with the new inability to add product functionality . Palm “ROM” cards voice recorders. Cardiac monitors. Pagers. GPS. MP3. etc. demanded by up through Cellphones. 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. 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 . • 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” . different user profile. 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. 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 .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. Decline the Project ?? Legal contract – 3Com may take legal action against IDEO Conflict of interest within IDEO Philosophy & Culture . 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 . large not be a • Palm and Visor • IDEO’s resources constraint fundamentally reputation on pooled to • Need of different line achieve more shorter • In sync with • Better Visor in short time product IDEO’s (Quality & eg: shopping development practices Design) cart in just 5 cycle days Accept the Project Hybrid process & design methodology to cope with the demands . RECOMMENDATIONS Competencies Time Market Resources • IDEO’s Deep • Time should research Allocation Drive.