MTI Project Presentation Ideo Product Development

AMBRISH ANIL DEEPIKA

ANKIT

KARTIK D RAVISHANKAR

RITUT RITU TAPAN

BHUWANESHWARI

ANKITA ANKIT A SONAL

APARNA

AGENDA

BUSINESS MODEL

• IDEO

• Introduction

• Timeline

• Process

• Palm-V Project

• Organisation

• Evaluation of Options

• Culture

• Recommendation

INTRODUCTION

• Management

HANDSPRING PROJECT

INTRODUCTION •

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

Moggridge) and Matrix (Mike Nuttall) – Kelley, CEO pioneered the design version of “concurrent engineering”

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Merger

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Major clients: Apple Computer, AT&T, Samsung, Philips, Amtrak, Steelcase, Baxter International, NEC Corp & Hollywood film projects

Brainstorming

Prototyping

Methodology

Design Philosophy

Phased Development

Innovation Process

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Equal emphasis on design and engineering; Diverse product portfolio

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World’s largest award-winning design firm

TIMELINE

1978: David Kelley Design formed

Reengineered shopping cart

Mid 1980s: Newton => handheld Computing starts

1991: Merger to form IDEO

ABC’s Nightline illustration

Late 1990s: IDEO had 300 staff, design centers across geography

1996: Revenues of $40-$50 million • Fall: Palm V Project starts

National prominence

1997-98: Phases I – IV of Palm V

1999: 1st shipment of Palm V expected

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Early 1990s - Apple Computer’s Newton pad - ahead of its time – met near demise

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March 1996: “Palm Pilot” Pilot”; critical technologies (Graffiti program for handwriting recognition and “syncing,”

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Hawkins - maniacal focus on product simplicity - wood prototype

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Palm Company Company to U.S. Robotics to 3Com

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New approach -

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Inspiration- sleek Motorola StarTac mobile phone,

female users - turned to IDEO

metal Canon minicamera, Pentax opera glasses, and a telescoping pair of eyeglasses •

 Janice Robert, VP 3Com – “appeal at not just the level” rational level but the emotional level”

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Late 1996: Palm V project

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Boyle - observational database –spread to 200 staff Market release in February 1999

PALM-V PALMPROJECT

Innovation Process PROTOTYPING

• Central to IDEO’s IDEO’s design philosophy • Tool to communicate with everyone • Ensured that everyone was imagining the same design d esign during discussions about a product • Followed the three “R’s”: “R’s”: “Rough, Rapid, and Right!”

BRAINSTORMING

• Daily sessions • Brainstormers • Deep dive approach

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

CULTURE •

Desirability o o o

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Democracy of ideas Archived discarded ideas for future

Smaller units Playroom atmosphere  –

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Focusing on small section Greater number of iteration “Enlightened trial and error” – failure part of the culture

“show-and-tells” “Tech Box”

Workspace to reflect refle ct personalities Encouraged to leave their work & walk around – loner bicycles Email brainstorming

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Synthesis Ideation Prototyping Evolution (Live in Beta)

MANAGEMENT •

Recruitment o o

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Projects o o o o o o

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Young individuals out of its own internship programs Long process – meeting with 10 staff members 1 large project as principal 3 to 4 projects as contributor contributor Teams disbanded after project completion No permanent assignments /job titles High involvement of clients “creeping elegance”

Assessment o o

Peer review sessions High performers rewarded Challenging projects Shares in its client venture capital base No fire policy •

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o •

Compensation o

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Increase in attrition from 5% to 10% led to compensation strategy change Compensation strategy redone to do more equity deals and seek royalties royalties

Begin at the beginning Take a human-centered approach Fail early and often

Seek outside help Blend big and small projects Budget to the pace of innovation. Find talent

Design for the cycle

HANDSPRING PROJECT

INTRODUCTION Formation

Objective

Hawkins and Donna Dubinsky

Come up with a new fully compatible , slightly smaller and inexpensive clone of palm

Resigned from 3Com

Addressing palm’s inability to add functionality

Team  Joined by ten members of original palm team Collaborated with IDEO to come up with the new product

Specifications Inspiration from Nintendo Game boy

Ability to link up through “ROM” cards

Simplicity was the main mantra

Springboard slot at the back

Games, Pagers, Cellphones, GPS, voice recorders, MP3, Cardiac monitors, etc.

Project 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

Accept the Visor project ??

Short term v/s long term • Monetary gains v/s image

Ideologies at loggerhead • Rigorous customer centered development – IDEO • Felt unnecessary to engage in market research ot time intensive experimentation :Visor

Reputation at stake • IDEO worked long and hard to create a culture of innovation and creativity

Persuade Per suade to change aggressive launch schedule ?? •

Dec 1996 – Phase 0

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Sep 1997 – Phase III

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Mar 1997 – Phase I

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Jan 1998 – Phase IV

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May 1997 – Phase II

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Oct 1998 – Process Smoothing

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Sep 1997 – Phase III

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Feb 1999 – Market Release

Reasons to Stick to Schedule •

Considerable knowledge acquired during Palm V

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Number of functionalities planned – 10

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Each function, different user profile, different use-case

Team at Handspring same as Palm V Project

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Reasons to Extend

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Each functionality will go through parts of each of the phases of designing at

Being Secretive within IDEO itself

IDEO

could be difficult •

Palm V Project still “ON”

Decline the Project ?? Legal contract – 3Com may take legal action against IDEO

Conflict of interest within IDEO

Philosophy & Culture - 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, company, design process consisted cons isted 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

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

RECOMMENDATIONS

Competencies

Time

• IDEO’s Deep Drive, large resources pooled to achieve more in short time eg: shopping cart in just 5 days

• Time should not be a constraint • Need of shorter product development cycle

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Market research

Resources Allocation

• Palm and Visor fundamentally different • In sync with IDEO’s practices

• IDE IDEO’ O’ss reputation on line • Better Visor (Quality & Design)

Accept the Project Hybrid process & design methodology m ethodology to cope with the demands