MTI Project Presentation Ideo Product Development

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AMBRISH

AMBRISH ANIL ANIL ANKIT ANKIT ANKITANKITAA

DEEPIKA

DEEPIKA KARTIK KARTIK D D SONALSONAL

RAVISHANKAR

RITU

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AGENDA

• • IDEO

IDEO

•

• Timeline

Timeline

•

• Palm-V Project

Palm-V Project

INTRODUCTION INTRODUCTION

• • Process

Process

• • Organisation

Organisation

• • Culture

Culture

• • Management

Management

BUSINESS MODEL BUSINESS MODEL

• • Introduction

Introduction

•

• Evaluation of

Evaluation of

Options

• • Recommendation

Recommendation

HANDSPRING HANDSPRING PROJECT PROJECT

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INTRODUCTION

•

Estd. in

Estd. in 1991

1991: David Kelley Design merged with ID Two, (Bill

: David Kelley Design merged with ID Two, (Bill

Moggridge) and Matrix (Mike Nuttall)

Moggridge) and Matrix (Mike Nuttall) –– Kelley, CEO

Kelley, CEO

•

Merger

pioneered

pioneered the

the design

design version

version of

of “concurrent

“concurrent

engineering

engineering””

•

Major clients: Apple Computer, AT&T, Samsung, Philips, Amtrak,

Steelcase, Baxter International, NEC Corp & Hollywood film projects

•

Equal emphasis

Equal emphasis on design and engineering;

on design and engineering; Diverse

Diverse product portfolio

product portfolio

•

World’s

largest award-winning

largest award-winning design

design firm

firm

Brainstorming Brainstorming Methodology Methodology Prototyping Prototyping Design Design Philosophy Philosophy Phased Phased Development Development Innovation Innovation Process Process

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TIMELINE

1978:

David

Kelley

Design

formed

Mid 1980s:

Newton =>

handheld

Computing

starts

1991:

Merger

to form

IDEO

Late 1990s

Late 1990s::

IDEO had

300 staff,

design

centers

across

geography

1996:

Revenues

of $40-$50

million

• • Fall:

Fall:

Palm V

Project

starts

1997-98:

Phases I

Phases I ––

IV of Palm

V

1999:

1999: 11

stst

shipment

of Palm

V

expected

Re-engineered engineered shopping shopping cart cart ABC’s ABC’s Nightline Nightline illustration illustration National National prominence prominence

(5)

PALM

-

V

PROJECT

•

Early 1990s - Apple

Computer’s

Newton pad

- ahead of

its time

–

met near demise

•

March 1996:

“

Palm Pilot

”

; critical technologies (Graffiti

program for handwriting recognition and

“syncing,”

•

Hawkins - maniacal focus on product simplicity -

wood

prototype

•

Palm Compan

y to U.S.

Robotics to

3Com

•

New approach -

female users

- turned to IDEO

•

Inspiration

- sleek Motorola StarTac mobile phone,

metal Canon minicamera, Pentax opera glasses, and a

telescoping pair of

eyeglasses

•

Janice

Robert,

VP

3Com

–

“appeal

at not just the

rational level but the

emotional level

”

•

Late 1996:

Palm V project

•

Boyle - observational database

–

spread to 200 staff

Market release

(6)

(7)

Innovation Process

PROTOTYPING

•

• Central to IDEO’

Central to IDEO’

s design philosophy

•

• Tool to communicate with everyone

Tool to communicate with everyone

•

• Ensured that everyone was imagining the same d

Ensured that everyone was imagining the same d

esign

during discussions about a product

•

• Followed the three “R’

Followed the three “R’

s”: “Rough, Rapid, and Right!”

BRAINSTORMING

•

• Daily sessions

Daily sessions

•

• Brainstormers

Brainstormers

•

(8)

Innovation Process

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PHASE IV: Implement (manufacturing liaison)

PHASE III: Implement (detailed engineering)

PHASE II: Evaluating/Refining

PHASE I: Visualize/ Realize

PHASE 0: Understand/ Observe

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.

Product Development Process

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Organization > Structure

• • No organization chart

No organization chart

• • No permanent job assignments or job titles

No permanent job assignments or job titles

• • Motivation from peer pressure

Motivation from peer pressure

• • No administrative issues

No administrative issues

Flat organization

Followed Amoeboid growth strategy

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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

“show-and-

-and-tells”

tells”

–

“Tech Box”

•

W

Workspace to refle

orkspace to reflect personalities

ct personalities

•

Encouraged to leave their work &

walk around

walk around –– loner bicycles

loner bicycles

•

Email brainstorming

• •

Synthesis

• •

Ideation

• •

Prototyping

•

(13)

MANAGEMENT

•

Recruitment

o

o Young individuals out of its own internship programsYoung individuals out of its own internship programs o

o Long processLong process –– meeting with 10 staff membersmeeting with 10 staff members

•

Projects

o

o 1 large project as 1 large project as principalprincipal o

o 3 to 4 3 to 4 projects as contributoprojects as contributorr o

o TTeams disbanded eams disbanded after after project completionproject completion o

o No permanent assignments /job titlesNo permanent assignments /job titles o

o High involvement of clientsHigh involvement of clients o

o “creeping“creeping elegance”elegance”

•

Assessment

o

o Peer review sessionsPeer review sessions o

o High performers rewardedHigh performers rewarded •

• Challenging projectsChallenging projects •

• Shares in its Shares in its client venture capital baseclient venture capital base o

o No fire policyNo fire policy

•

Compensation

o

o Increase in attrition from 5% to 10% led to compensationIncrease in attrition from 5% to 10% led to compensation

strategy change strategy change

o

o Compensation strategy redone to do more equity deals andCompensation strategy redone to do more equity deals and

seek

seek royalroyaltiesties

Begin at the beginning Begin at the beginning Take a human-centered Take a human-centered

approach approach

Fail early and often Fail early and often

Seek outside help Seek outside help Blend big and small Blend big and small

projects projects

Budget to the pace of Budget to the pace of

innovation. innovation. Find talent Find talent

Design for the cycle Design for the cycle

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HANDSPRING PROJECT

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Hawkins and

Donna Dubinsky

Resigned from

3Com

Formation

Come up with a

new

new fully

fully

compatible

compatible , ,

slightly

slightly smaller

smaller

and

inexpensive

clone of palm

Addressing palm’s

inability to add

functionality

Objective

Joined by

Joined by ten

ten

members

members of

of

original palm

team

Collaborated with

IDEO to come up

with the new

product

Team

INTRODUCTION

(16)

Inspiration

from

Nintendo

Game boy

Springboard slot at

the back

Ability to link

up through

“ROM” cards

Games, Pagers,

Cellphones, GPS,

voice recorders,

MP3, Cardiac

monitors, etc.

Simplicity was

the main

mantra

Launch of

project

At a time when

hand held devices

were used for

minor activities

Price

_{150 $ rather 300$}

demanded by

Palm

Deadline

Late 1999 just in

_{time for the}

holiday season

To ensure

maximum sales at

the time of product

launch

Specifications

(17)

Accept the Visor project ??

Short term v/s long

term

• • Monetary gains v/s

Monetary gains v/s

image

Ideologies at

loggerhead

• • Rigorous customer

Rigorous customer

centered

development

development ––

IDEO

• • Felt unnecessary to

Felt unnecessary to

engage in market

research ot time

intensive

experimentation

:-Visor

Visor

Reputation at

stake

• • IDEO worked long

IDEO worked long

and hard to create a

culture of

innovation and

creativity

(18)

Reasons to Stick to Schedule

•

Considerable knowledge acquired

during Palm V

•

Team at Handspring same as Palm V

Project

•

Being Secretive within IDEO itself

could be difficult

Reasons to Extend

•

• Number of functionalities plannedNumber of functionalities planned –– 1010 •

• Each function, different user Each function, different user profile,profile,

different use-case different use-case

•

• Each functionality will go through partsEach functionality will go through parts

of each of the phases of

of each of the phases of designing atdesigning at IDEO

IDEO

•

• Palm V Project still “ON”Palm V Project still “ON”

•

Dec 1996

––

Phase 0

•

Mar 1997

––

Phase I

•

May 1997

––

Phase II

•

Sep 1997

––

Phase III

•

Sep 1997

––

Phase III

•

Jan 1998

––

Phase IV

•

Oct 1998

Oct 1998 –– Process Smoothing

Process Smoothing

•

Feb 1999

––

Market Release

Per

(19)

Decline the Project ??

Legal contract

Legal contract –– 3Com may take legal action against IDEO3Com may take legal action against IDEO

Conflict of interest

Conflict of interest within IDEOwithin IDEO

Philosophy & Culture

Philosophy & Culture - IDEO had created a - IDEO had created a supportive culture for creativity andsupportive culture for creativity and innovation

innovation

Informality & free ideations would not be possible as the project would have to be kept Informality & free ideations would not be possible as the project would have to be kept secret from other IDEO employees

secret from other IDEO employees Unique methodology

Unique methodology –– not a mainstream design not a mainstream design companycompany, design process cons, design process consisted ofisted of intense prototyping & brainstorming

intense prototyping & brainstorming Fear of failure

Fear of failure –– reputation could be damaged by taking on a product that has suchreputation could be damaged by taking on a product that has such tight cost and time constraints

tight cost and time constraints Losing trust

Losing trust in the marketin the market –– new clients would be apprehensive of hiring IDEO for newnew clients would be apprehensive of hiring IDEO for new projects

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HANDSPRING PERSPECTIVE

IDEO is its

IDEO is its best betbest bet to complete the design of its new device in the short period,to complete the design of its new device in the short period, should

should try to convincetry to convince with commitment of more resourceswith commitment of more resources

As IDEO has already worked on similar products with the client team, it

As IDEO has already worked on similar products with the client team, it can do awaycan do away with the Phase 0 & I

with the Phase 0 & I

Handspring leadership is also

Handspring leadership is also committedcommitted to serve the customer needs and isto serve the customer needs and is experienced in

experienced in sensing the market pulsesensing the market pulse––Leverage this expertiseLeverage this expertise

Handspring should try to push for sticking to the proposed aggressive timelines Handspring should try to push for sticking to the proposed aggressive timelines otherwise the

otherwise the new Palm V might eat into a lot of potentialnew Palm V might eat into a lot of potential customer basecustomer base

IDEO should be persuaded to deviate from its tried & tested process to take up this IDEO should be persuaded to deviate from its tried & tested process to take up this project as a challenge with time & cost constraints