This document provides an overview of the design firm IDEO and discusses a case where they were asked to design a new handheld computer called the Visor for Handspring on an accelerated 10 month timeline. This would require IDEO to cut many of their early development stages focused on user research and prototyping. The document outlines the alternatives available to IDEO, including not accepting the project, only accepting if more time is given, or negotiating for more time while still accepting. It suggests the possible solution of requesting more time for proper market research and development to create a high quality product, or engaging in what research they can before design if time cannot be extended.

1. Case Discussion:
IDEO Product Development
Presented By: Group-4 1

2. Agenda
1.Company Profile
2.Company Analysis
3.IDEO Development & Design process
4.Situation Analysis
5.Problem Identification
6.Available Alternatives
7.Possible Solution
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3. Company Profile
Is a design and innovation firm founded in 1991 by merger of ID two
and David Kelly Design. The merger brought many services like
engineering (both mechanical and electrical) ergonomics,
information technology, prototype machining and cognitive
psychology under one umbrella.
Company Type Private
Headquarters Palo Alto, California, United States
Area served Worldwide
Key people Tim Brown, CEO
Tom Kelley, General Manager
David Kelley
Employees 550+
Major Client Apple Computer, AT & T, Samsung,
Philips, Amtrak, Steelcase etc.
Website www.ideo.com
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4. Company Analysis
Process Culture
PH 0 :- Understand/observe 1. Playful and Messy
Environment.
PH- I :- Visualize /realize
2. Learning culture.
PH- II :- Evaluating/refining 3. Frequent Prototyping and
brainstorming.
PH- III:- Implement (Detailed 4. Freedom to showcase
Engineering) Innovative and creative
PH- III:- Implement ideas and inspiring
(manufacturing liaison) innovators.
5. Operated on the principle
Funnel Process & Provide all of failing often to succeed
services under one umbrella that sooner.
client needs.
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5. Company Analysis
Organization Management
1. Extremely Flat organization. 1. Creative and inspired group
2. No permanent team, job and of people.
assignment to promote fresh 2. At times company’s leader
ideas. follow a deep dive
3. Flexible and have experience of approach.
over a thousand projects. 3. Creating a democracy of
4. Respect for new ideas and ideas.
invention. 4. Fast decision making.
5. Comfortable with confusion ,
incomplete information.
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6. IDEO Development & Design Process
Phase 0
1.Feasibility of
designing of OUTPUT
product.
Feasibility record
2.Understanding along with major
and observing the discoveries about
client's needs and market place and
its business and users.
consumer needs.
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7. IDEO Development & Design Process
Phase I
OUTPUT
1.Potential solution
through prototypes. 1.Understanding of
product context.
2. Involved similar
activates as phase -0 2.Manufacturing
. Like market strategy
research data
3. Concept for 3D
model
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8. IDEO Development & Design Process
Phase II
1. Development of
functional prototype. OUTPUT
2. Resolve technical
problem and user 1. Functional model.
concerned
3. Engineering part 2. Documentation of
also comes in this
detailed engineering
phase
4. Close coordination and technical
with other project specification
groups for proper
alignment
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9. IDEO Development & Design Process
Phase III
1. Product designing and
verification of
OUTPUT
working.
2. Validate 1. Fully functional
manufacturability and design model.
performance. 2. Tooling database and
3. Low level involvement technical
with design team and documentation.
machine shop. 3. Vender selection.
4. Testing for
government
regulation
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10. IDEO Development & Design Process
Phase IV
1. Issue resolving in final
design. To ensure
smooth release for
manufacturing. OUTPUT
2. Supervision of tooling
production, 1. Product handover to
regulatory approval. the client.
3. Construction for pilot
run and testing
manufacturing
feasibility
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11. Case Situation analysis
 IDEO developed Pam V hand –held computer for 3Com considered a
successful product with large commercial potential.
 Now IDEO was asked to design the Palm competing product called Visor
with the same team they had worked during development of Palm V.
 Now the same team is working for Handspring a new venture with a goal
to develop a Palm V competing product.
 Hawkins and Dubinsky decided to keep the price of Visor $150 far below
Palm series.
 Since, They wanted to reach Visor to customers as quickly as possible.
For the reason they propone the date of launch in late 1999 instead of
spring 2000 which was earlier communicated to IDEO.
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12. Problem Identification
This would force the IDEO to reduce the product
development cycle by 10 months.
Which would require them to eliminate many of the early
development stages that firm was particularly good at.
Forcing IDEO to Sacrifice innovation and design in order
to meet client goal that could effect the quality of design
and product may fail.
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13. Question Arises??
 What would be the difference in the quality of the
product if it is launched in late 1999 rather than in
spring 2000?
 Will visor lose market share if launched in 2000?
 Is market research necessary for such an innovative and
never seen before product?
 Can IDEO sustain its quality standards by designing the
product in less than half of the time which they usually
take to design a new product?
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14. Analysis
Contingency Table:
Product launch 1999 2000
Target Group
Men
Women
Children
Market share More Less
Product Quality Less More
Innovation in product Less More
Customer loyalty for More Less (Competition)
next product in the
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series

15. Alternatives:
1. Don’t accept the project.
2. Accept the project only if handspring management
provides enough time to complete it.
3. Accept the project as it is.
4. Negotiate to get some more time but accept the project
anyways.
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16. Alternative 1.
Do not Accept the IDEO Perspective
Pros:
project 3. Failure of development
can be avoided.
Cons:
1.IDEO will miss the
opportunity to develop a
revolutionary product with
the team they already had
done a successful project
Palm V.
2.It will effect the
reputation of IDEO as it
had potential to meet
challenging deadlines.
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17. Alternative 2
Delay the release RISK- Handspring’s
so that more time Perspective
Risk of missing out on
could be spent
valuable market entry
designing it timing, which could cut
properly for the into profits or allow
market it was competitors time to
gain control of the
intended for. market and gain
followers that
potentially could have
been Visor customers.
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18. Alternative 3
Accept the RISK- IDEO Perspective
1. Though the IDEO team is
project as it is. capable but still the
chances are there that
product could fail.
Handspring’s Perspective
1. Product will be avail. At
the time of festival
season which could help
to gain mkt share.
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19. Alternative 4
Negotiate to get some RISK- Handspring’s
more time but accept Perspective
the project anyways.
Risk of missing out on
valuable market entry
timing, which could cut
into profits or allow
competitors time to
gain control of the
market and gain
followers that
potentially could have
been Visor customers.
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20. Suggested Possible Solution
• Request for more time :- So that high quality end product can be
created.
Emphasize on need for market research; the Palm V and the Visor are similar
products in some ways, but are, in fact, different in fundamental ways that will
affect the appeal for the target customers. Knowing who their target customers
are in the first place will help them to design the product that their customers
want.
• If Accept, Provide complementary promise of(put large amount f resource) offer
to handspring. It will give IDEO a chance to live up to its reputation as a world-class
innovative designing consultancy.
• If Declines, will request that they engage in whatever market research they are
able to do before pushing ahead the design and production of the new device. This
will contribute to a better product that is more tailored for the consumers when it
does enter the marketplace**.
** In this situation several independent teams would require working simultaneously
on the Visor project to increase innovation over the short period of time. 20

21. Thank You
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