Product Development at IDEO: A Case Study Analysis of Key Strategies

This case study examines IDEO's product development process, organizational structure, culture, and management practices. The analysis begins with IDEO's inception, highlighting the merger of three companies and the establishment of a flat organizational structure with project-based teams. The study explores IDEO's culture, emphasizing its focus on prototyping, the democracy of ideas, and employee empowerment. It delves into the innovation process, particularly the importance of prototyping and brainstorming, and analyzes the decision-making process for projects like the Visor, drawing parallels with the successful Palm V project. The case study also touches on the Handspring project, highlighting the company's focus on simplicity, market research, and aggressive timelines to achieve market success.

Case Study : IDEO PRODUCT DEVELOPMENT
How would you characterize IDEO’s process , organisation, culture and management?
IDEO started by David Kelley in 1991 who was founder of IDEO, He merged with two
companies-
ID ONE which is owned by Bill Moggridge who was renowned designer and Matrix which was
started by Mik Nuttall.
David Kelley had larger company than two company so he became Chief Executive of new firm,
IDEO.
IDEO’s Organisation and Management
IDEO was a flat organisation .All task was organised into project teams which were formed for
project project completion after that they were scattered. There were job assignments or job
titles which were not permanent in nature. They did not follow any organisation charts or titles ,
they believed in healthy environment. That was reason Project heads emerged because they had
personal excitement to complete the project.
There were 300 staff in the IDEO and handled design system in various countries like London,
Chicago, Boston, Tokyo, New York and so many countries. All centers across the world
operated individually, they were fully independent and manage business locally. they had very
high communication by e-mail and always shared human talent when required.
CULTURE AND PHILOSOPHY
IDEO always tried to prototype as per clients demand and better than it’s competitors .
Prototypes provided blueprint of the product and ensured everyone ,it would be same design as
decided at the time of discussion about project.
The culture itself reflected the importance that management focused on the creation of
democracy of ideas. IDEO was growing to 300 employees but keeped each unit small.
Employees are motivated to design their workplace as they wished so that they could reflect their
personalities.Company did not follow formal titles and any dress code, employee could come as
they wished.Management provided freedom to all employees, they could leave their desk and
walk anywhere to relax from mental blocks.

Management did not dismiss their employees .Management believed that they can do better if
they manage all types of employee from lower to upper level.Every employee’s performance was
assessed by their peer’s review and peer was selected by management.
INNOVATION PROCESS
Prototyping was very important for design process of product and brainstorming was core factor
to get right design. IDEO followed several principles of brainstorming like be focused on topic,
insisted wild ideas , unique judgement to avoid interrupting, flow of ideas etc. It involves several
phases such as
● Understand - Team members tried to understand business of client and involved
themselves in searching out the feasibility of a product.
● Visualize - By using the product in daily life , team could understand the characters of
product and visualise product.
● Evaluating - Designs prototypes evaluated through testing functional prototypes.
● Implement - After testing , product could be manufactured
● Manufacture liaison - When product released to manufacturing , it was transfersd from
shop to the client’s.
Decision Point - IDEO should accept the visor project -
Ideo must accept Visor project because Ideo already had an experience of successful Palm V
project. Ideo have an excellent team of engineers, designers.
Palm V Project - Palm Pilot achieved the target, selling computer faster in the market.Hawkins
and his team accomplished their proficiency in engineering and designing. The success story of
Palm Pilot motivated other entrants and start-ups to new field. Palm eventually turned to IDEO
to fulfill Hawkins’ vision .
Hawkins focused deliriously on simplicity of product . this was a direction to him to go ahead
and reach to his vision. He carried a crude wood as a prototype in his pocket to feel how
customer might feel and use product throughout the whole day.
The team started work on Palm V project late in 1996. First 10- 12 weeks ,Palms spreaded
throughout the company with Boyle’s team over 200 staff members and they started using
Palms.
And after some time this project became successful in the market.

The Handspring Project - In 1998, Hawkins and Donna Dubinsky started Handspring together
Hawkins ,now chief product officer at Handspring. In July 1998, once again hawkins got the
chance to work in IDEO for designing a new product .Hawkins offered Boyle a proposal to work
again together with new challenges. Hawkins’s daughter who was ten years old proposed the
name of the product i.e. ‘Visor’.
The handspring team believed in simplicity and they wanted the modules to be very simple so
that user can use it, for this module was inserted with the device. Product features understood by
them such as memory, price and colors. Visor team wanted to go for market research because
they felt they should understand market pretty well. Hawkins and Donna wanted that Visor’s
cost would not be increase than $150 so they insisted to keep it $150 . The price was meant to
attract mass following and handspring’s strategy consisted to provide product into many hands as
soon as possible with new standards.
Hawkins and Dubinsky exerted force for a product launch in late of 1999. They were not
troubled about meeting deadlines on time because IDEO could achieved any tough deadlines, at
the eleventh hour and fifty-ninth minute too. Moreover, the team of Boyle had already
confronted and performed evenly with dozens of prior meetings
IDEO and Handspring both shared a common reliance in a consumer-centered mentality and
quick prototyping. Boyle had faith, his team could achieve goal and create a killer product that
would match the Palm V project in designing and capability and in other excellence.
So they should accept the client’s request for a aggressive schedule .