Production & Operation

Management
Presentation
IDEO PRODUCT DEVELOPMENT
Shruti Sarkar (15810052)
Shubham Shukla
(15810053)
Sumitava Roy (15810054)
Suresh Chandran V
(15810055)
Sushumna (15810056)
Trishik Das (15810057)

CONTENTS
Introduction
History of IDEO
Design, Philosophy and Culture
IDEOs innovation Process
The PALM V Project
The Handspring Project
The Product Development Phase
Current Industry Scenario

 Type- Private
Industry - Design firm
Founder - David Kelley, Bill
Moggridge,Mike Nuttall
Number of employees 600
CEO Tim Brown
CFO Dave Strong

 Locations - Boston, Chicago, London, Munich, New

York
City, Palo Alto, San Francisco, Shanghai,
Singapore and Tokyo
Disciplines - Behavioral Science, Branding, Business
Design, Communication Design and Software
Engineering, Digital Design, Education, Electrical
Engineering, Environments Design, Food Science.
Clients - Air New Zealand, Coca-Cola,ConAgra
Foods,Eli Lilly,Ford, Medtronic, Sealy, andSteelcase

HISTORY OF
IDEO
IS
AN
AWARD-WINNING
GLOBAL
DESIGN FIRM THAT TAKES A HUMANCENTERED, DESIGN-BASED APPROACH TO
HELPING ORGANIZATIONS IN THE PUBLIC
AND PRIVATE SECTORS INNOVATE AND
GROW .

David M. Kelley after graduating from Carnegie-Mellon worked as an

engineer for National Cash Register (NCR) and Boeing. Kelley then
entered a graduate program in design at the Stanford University
School of Engineering.
After earning a master's degree, Kelley formed his own design firm in
1978, partnering with fellow student Dean Hovey. Their first four
employees were all friends from Stanford.
Kelley had met Apple Computer Inc. founder Steve Jobs at Stanford,
and by 1983, the group had designed the first commercially available
computer mouse for Apple's Lisa computer, later used on the first
Macintosh.
In 1990, offices opened in Boston and Chicago. Within a few years, the
headquarters was spread across several buildings in Palo Alto, and
IDEO had offices in San Francisco, Chicago, Boston, Tokyo, and London,

General Manager Tom Kelley, brother of the company's founder,

described Innovation as the next big wave for corporations to
embrace
after Quality control and Cost cutting.
Principal Divisions:
Health; Consumer Experience Design; Technology Enabled
Experiences; Service Design and Innovation; Transformation Services;
Zero20 (design for youth); Smart Space.
Principal Competitors:
Design Continuum Inc.; frog design inc.; Lunar Design
Incorporated; Ziba Design, Inc., McKinsey & Co.

Design, Philosophy &

Culture

If a picture is worth a thousand words, a prototype is worth ten thousand.

IDEO innovation principle

You learn just as much from

a model thats wrong as you
do from one thats right

Designers
and
engineers
themselves
created
early
prototypes
from
readily
available material such as
cardboard, foamcore, Legos,

 Rapid prototyping at IDEO followed the three Rs: Rough, Rapid, and Right!
The final R, Right, referred to building several models focused on getting
specific aspects of a product right.

Discarded ideas were archived and sometimes kept for possible future products.
At the beginning of a new project, IDEO would submit cost and time estimates to
potential clients. As a project unfolded and designers came up with innovative
ideas and concepts, project managers had to ensure that those concepts were
within agreed upon budgets and timelines. However, designers often aimed for

 In keeping with its playroom

atmosphere,
on
Mondays
all
company branches held showand-tells where designers and
engineers could showcase their
latest insights and products.
IDEOs Tech Box, the companys
giant shoebox for curiosities and
interesting gadgets meant to
inspire innovators.
Growing IDEO to 300 employees
involved keeping each unit small.
Thus, growth was achieved by
budding
An individual
could
workstudios
on one large project as a
out smaller
design
principal or on as many as three to four projects as a
contributor.

IDEO Innovation Process

It is inconceivable that the head guy in any organization
will know all the answers.
David Kelley, IDEO founder
If PROTOTYPING was central to IDEOs
design process, BRAINSTORMING was
central to its methodology.
The goal was to quickly create a whirlwind
of activity and ideas, with the most
promising ideas developed into prototypes

IDEO Innovation Process

Principles of
BRAINSTORMING
Stay
FOCUSED
on topic.

Be VISUAL,
DEFER
Hold only
Go for
Sketch the
JUDGMENT
one
QUANTITY
ideas for
to not
CONVERSAT (150 ideas in
better
interrupt flow
ION at a
30 45
understandin
of ideas.
time.
minutes).
g.

IDEO Innovation Process

Throughout a single project, the project leader might hold
brainstorming sessions, or brainstormers.
No more than 8 invitees attended these sessions, which
ran under the above rules.
IDEO personnel viewed invitations to these sessions as a
sign of worth and rarely turned them down.
brainstormers are the candy. . . . You are in the middle of a project,
handling endless details, and then you get invited to a brainstormer, where
you get to have all sorts of good ideas and leave with no responsibility for
them. Its cathartic, to dump your ideas.

IDEO Innovation Process

Phase 0

Understand/Obser
ve
Phase I

Visualize/Realize
Phase II

Evaluating/Refinin
g
Phase III

Implement /
Detailed
Engineering
Phase IV

Implement /
Manufacturin
g Liaison

IDEO Innovation Process

IDEO had mixed feelings about a formalized
innovation process.
Its a delicate balance between process and innovation. . . . Its no
good if you crank the handle and you know exactly what is going to
come out the other end. You also have to be prepared to fail a lot. The
great thing about a prototype culture like ours is that we have lots of
spectacular failures. We celebrate that.
- Tim Brown, European Director of IDEO

IDEO Innovation Process

Armed with the tools of rapid

prototyping, brainstorming, and
a well-honed product
development process, the
company viewed itself as being
able to provide value to virtually
any client.
The very diversity and
experience of its personnel
ensured that it would rarely
encounter entirely new
problems.

PALM V PROJECT

Palm Pilot introduced in March 1996 by Jeff Hawkins.

Reasons for success:
Focus on competing with paper rather than large
computers
Failure of Apples Newton pad
Development of Graffiti
Capability to sync
Entry of competitors in the market
Palm turns to IDEO(Dennis Boyle) to tackle the market
competition

Motorola Star Tac mobile phones became inspiration

for the team
The team was inspired by the Think Different
campaign of Apple
Reduced thickness from 19mm to 11mm and one-third
weight

Palm Vs Product
Development Timeline
(22 months)

 Understand/Observe
Phase 0 3 months
Visualize/Realize
Phase 1 2 months
Evaluate/Refine
Phase 2 5 months
Phase
3/4

Implement
12 months

THE HANDSPRING
PROJECT
The new product was introduced
as a successor of PALM V . . .
With a greater efficiency,
ease of usage and
much less price. . .

PROJECT OUTLINES
The idea for the project started in July, 1998.
Hawkins, along with his business partner Donna
Dubinsky, set up a shop in Palo Alto.
The goal of the new company was to create a fullycompatible, slightly smaller and less-expensive clone
of the PALM computers.
The company wanted to recover the PALMs inability to
easily add functionality.

PROJECT OUTLINES (contd.)

The team wanted the modules to be simple to use.
The compatibility idea was generated from Hawkins
daughters Nintendo Game Boy, which uses
interchangeable cartridges for new games.
The name was proposed by Hawkins 10 year old
daughter VISOR, short for Advisor.
Along with the original engineering team of PALM V,
about two dozens of third party developers had shown
interest to provide software in the project.

SALIENT FEATURES OF THE PRODUCT

VISORs cost was $150, where the PALM V was far
more expensive @$450.
SPRING-BOARD facility was used to insert new
modules for performing various multimedia tasks.
Rechargeable Lithium-ion batteries replaced
batteries used in the PALM V computer.

AAA

The development of the product included a PRODUCT

DEVELOPMENT CYCLE of 10 months before handing off
the product to production.

PRODUCT DEVELOPMENT PHASES

PHASE 0: Understand/Observe
The team sought to understand the clients business and immersed
itself in finding out about the feasibility of a product.
This involved inhaling everything ever written about the planned
product and potential users.
By the end of this process, team members tacked to the project
center walls pictures and diagrams summarizing major discoveries
about the marketplace and users.
Product developers at most companies spent little time here for fear
of duplicating efforts of marketing or R&D.
By the end of Phase 0, the team create a feasibility record along with
discoveries about the marketplace and users.
Least expensive part of the entire project.

PHASE I: Visualize/Realize
Here the team ended up choosing a product direction based on ideas,
technologies, and market perceptions.
The team also gain an understanding of the product context through a
gallery of envisioned characters using the product in their daily lives.
This intensive stage required close coordination of efforts with the
client to ensure constant feedback.
The team combined ideas, technologies, and market perceptions with
observations of real world users to investigate potential needs that the
product could fill.
By the end of Phase I, the team would have rough three-dimensional
models of a product and a general idea of the manufacturing strategy
to be utilized.

PHASE II: Evaluating/Refining

In this phase the team enhance design prototypes
through testing functional prototypes.
Emphasis is shifted over the course of this stage from
human factors and ergonomics to engineering.
Concurrent engineering often occurred, through filling in
previously unspecified features using an iterative
process.
This process requires constant communications between
various subgroups to ensure that the final outcomes
would mesh well together.
Phase II culminated with a functional model as well as a

PHASE III: Implement (detailed engineering)

The team complete the product design and verifies the final
product works and could be manufactured.
Although engineering efforts predominate, continuous low-level
involvement with design team members occur.
For designers, frequent visits to the machine shops during this
phase provided a reality check.
By the end of this phase, the team delivers a fully functional
design model, tooling databases, and technical documentation.
Testing might also be undertaken in this phase to meet
government regulations.
The team also starts selecting vendors.

PHASE IV: Implement (manufacturing liaison)

In this phase, the team resolved issues involving the

final design to ensure smooth product release to
manufacturing as the product moved from the shop floor
to the clients factory lines.
The team still supervises production of tooling,
regulatory approvals, and construction of pilot runs of
the manufacturing line.
Testing of manufacturing feasibility is crucial: each days
loss of a production lines output might cost the client
company a substantial amount in lost revenues.
By the end of this phase, the product would be formally

2015: 10 Most innovative companies

2015
Rank

2014
Rank

R&D
Spend ($Bn)*

Company

Geography

Industry

Apple

United States

6.0

Google

United States

Computing and
electronics
Software and internet

Tesla Motors

United States

Automotive

0.5

Samsung

South Korea

Amazon

United States

Computing and
electronics
Software and internet

3M

United States

Industrials

1.8

General Electric

United States

Industrials

4.2

Microsoft

United States

Software and internet

IBM

United States

Computing and
electronics
Automotive

10

N/A Toyota

Japan

9.8

14.1
9.3

11.4
5.4
9.2

2015: Top 5 R & D spenders

1-Volkswagen

Germany Automotive 15.3

2-Samsung South Korea Computing and electronics

14.1
3-Intel United States Computing and electronics
11.5
4-Microsoft United States Software and internet
11.4
5-Roche Switzerland Healthcare 10.8

Strategies by Apple Inc.

An exceptional consumer
experience
Intuitive user interfaces
Sleek product design
Iconic branding

Innovation strategy models

Need seekers These companies actively engage current and
potential customers to shape new products, services, and
processes; they strive to be first to market with those products.
Market readers These companies watch their markets carefully,
but they maintain a more cautious approach, focusing largely on
creating value through incremental change.
Technology drivers These companies follow the direction
suggested by their technological capabilities, leveraging their
investment in research and development to drive breakthrough
innovation and incremental change, often seeking to address the
unarticulated needs of their customers.

Some facts about product development

In 2015, R&D spend by the premier companies has increased
5.1% to $680 billion.
U.S. remains largest country location for the conduct of
corporate R&D, representing the net of domestic, imported and
exported R&D.
China and India lead dynamic R&D growth in Asia region, driven
by imported R&D from the U.S.
The three largest industries for R&D Spend in 2015 are
computing and electronics (C&E), healthcare and auto.