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    Production & OperationManagement

    PresentationIDEO PRODUCT DEVELOPMENT

    Shruti Sarar !Shu(ham Shu

    !"#$"%%#*'Sumita+a Ro, Suresh Chandr!"#$"%%##'Sushumna !"#

     Trishi Das !"#

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    CONTENTS

    Current Industr, Scenario

     The Product De+e)opment Phase

     The 2andspring Pro3ect

     The P4LM V Pro3ect

    IDEO5s inno+ation Process

    Design6 Phi)osoph, and Cu)ture

    2istor, o7 IDEO

    Introduction

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    •  T,pe8 Pri+ate

    • Industr, 8 Design 9rm

    • :ounder 8 Da+id 0e))e,6 ;i))Moggridge6 Mie Nutta))

    • Num(er o7 emp)o,ees = .%%

    • CEO = Tim ;ro>n

    • C:O = Da+e Strong

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    • Locations 8 ;oston6 Chicago6 London6 Munich ?or Cit,6 Pa)o 4)to6 San :rancisco6 Sha

    Singapore and To,o

    • Discip)ines 8 ;eha+iora) Science6 ;randing6 ;uDesign6 Communication Design and SoEngineering6 Digita) Design6 Education6 E)e

    Engineering6 En+ironments Design6 :ood Scien

    • C)ients 8 4ir Ne> Aea)and6 Coca8Co)a6 Co:oods6 E)i Li)),6 :ord6 Medtronic6 Sea),6 and Stee

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      2ISTOR? O:IDEO IS 4N 4B4RD8BINNIN LO;4L

    DESIN :IRM T24T T40ES 4 2UM4N8CENTERED6 DESIN8;4SED 4PPRO4C2 TO2ELPIN OR4NIA4TIONS IN T2E PU;LIC4ND PRIV4TE SECTORS INNOV4TE 4NDROB @

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    Da+id M@ 0e))e, a7ter graduating 7rom Carnegie8Me))on engineer 7or Nationa) Cash Register !NCR' and ;oeingentered a graduate program in design at the Stan7oSchoo) o7 Engineering@

    47ter earning a masters degree6 0e))e, 7ormed his o>n "1/$6 partnering >ith 7e))o> student Dean 2o+e,@ Temp)o,ees >ere a)) 7riends 7rom Stan7ord@

    0e))e, had met 4pp)e Computer Inc@ 7ounder Ste+e o(and (, "1$*6 the group had designed the 9rst commerccomputer mouse 7or 4pp)es Lisa computer6 )ater usedMacintosh@

    In "11%6 oFces opened in ;oston and Chicago@ Bithin a headGuarters >as spread across se+era) (ui)dings in PIDEO had oFces in San :rancisco6 Chicago6 ;oston6 To,o

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    enera) Manager Tom 0e))e,6 (rother o7 the compan,s 7descri(ed Innovation  as the neHt (ig >a+e 7or coem(race

    a7ter ua)it, contro) and Cost cutting@

    Principal Divisions: 

    2ea)thJ Consumer EHperience DesignJ TechnoEHperiencesJ Ser+ice Design and Inno+ationJ Trans7orma

    Aero% !design 7or ,outh'J Smart Space@

    Principal Competitors: Design Continuum Inc@J 7rog design inc@J

    IncorporatedJ Ai(a Design6 Inc@6 Mc0inse, & Co@

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    Design6 Phi)osoph, &

    Cu)ture• K?ou )earn 3ust as much 7rom

    a mode) that5s >rong as ,oudo 7rom one that5s right

    • Designers and engineersthemse)+es created ear),protot,pes 7rom readi),

    a+ai)a()e materia) such ascard(oard 7oamcore Le os

    I7 a picture is >orth a thousand >ords6 a protot,pe is >orth ten th

    IDEO inno+ation princip)e

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    • Rapid protot,ping at IDEO 7o))o>ed the three KR5s KRough6 Rapid

    •  The 9na) R6 KRight6 re7erred to (ui)ding se+era) mode)s 7ocuspeci9c aspects o7 a product right@

    • Discarded ideas >ere archi+ed and sometimes ept 7or possi()e 7u

    • 4t the (eginning o7 a ne> pro3ect6 IDEO >ou)d su(mit cost and tipotentia) c)ients@ 4s a pro3ect un7o)ded and designers came up

    ideas and concepts6 pro3ect managers had to ensure that those>ithin a reed u on (ud ets and time)ines@ 2o>e+er desi ners

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    •  In eeping >ith its p)a,roomatmosphere6 on Monda,s a))compan, (ranches he)d Ksho>8and8te))s >here designers and

    engineers cou)d sho>case their)atest insights and products@

    • IDEO5s KTech ;oH6 the compan,5sgiant Kshoe(oH 7or curiosities andinteresting gadgets meant toinspire inno+ators@

    •  ro>ing IDEO to *%% emp)o,eesin+o)+ed eeping each unit sma))@ Thus6 gro>th >as achie+ed (,(udding out sma))er design studios•  4n indi+idua) cou)d >or on one )arge pro3ect as aprincipa) or on as man, as three to 7our pro3ects as a

    contri(utor@

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    IDEO Inno+ation Process

    “It is inconceivable that the head guy in any organizat

    will know all the answers.”

     — David Kelley, IDEO fou

    I7 PROTOTYPING  >as centra) to IDEdesign process6 BRAINSTORMING centra) to its methodo)og,@

    •  The goa) >as to quicl! create a "#irl"o% activit! an$ i$eas6 >ith the m

    promisin& i$eas de+e)oped into protot!

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    IDEO Inno+ation Process

    Princip)es o7

    BRAINSTORMING

    Sta,

    )OC*S+D on topic@

    D+)+R ,*DGM+NT 

    to notinterrupt o>

    o7 ideas@

    2o)d on),one

    CON-+RSATION at a

    time@

    o 7or.*ANTITY  

    !"#% ideas in*% = -#

    minutes'@

    ;

    u

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    IDEO Inno+ation Process

    •  Throughout a sing)e pro3ect6 the pro3ect )eade(rainstorming sessions6 or K0rainstormers@

    • No more than 1 invitees  attended these sesran under the a(o+e ru)es@

    • IDEO personne) +ie>ed in+itations to these ssi&n o% "ort# and rare), turned them do>n@

    “brainstormers are the candy. . . . You are in the middle of a p

    handling endless details, and then you get invited to a brains

     you get to have all sorts of good ideas and leave with no resp

    them. Its cathartic, to dump your ideas.”

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    IDEO Inno+ation Process

    Phase % *n$erstan$2O0serve

    Phase I -isuali3e2Reali3e

    Phase II+valuatin&2Re4ni&

    Phase IIIImplemDetaile$+n&inee

    Phase IV

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    IDEO Inno+ation Process

    • IDEO had miHed 7ee)ings a(out a 7orma)iQedinno+ation process@

    “Its a delicate balance between process and innovation. . .

     good if you crank the handle and you know e"actly what is

    come out the other end. You also have to be prepared to fail

     great thing about a prototype culture like ours is that we ha spectacular failures. $e celebrate that.”

    - Tim Brown, European Directo

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    IDEO Inno+ation Process

    4rmed >ith the too)s of rapid prototyping, brainstorming, and

    a well-honed productdevelopment process, the

    compan, +ie>ed itse)7 as (einga()e to pro+ide +a)ue to virtuallyany client @

     The +er, $iversit! an$e5perience o7 its personne)ensured that it >ou)d rarel!encounter entirel! ne"

    pro0lems@

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    PA/M - PRO,+CT

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    Pa)m Pi)ot introduced in March "11. (, e 2a

    Reasons 7or success

    :ocus on competing >ith paper rather than )arcomputers

    :ai)ure o7 4pp)e5s Ne>ton pad

    De+e)opment o7 raFti

    Capa(i)it, to s,nc

    Entr, o7 competitors in the maret

    Pa)m turns to IDEO!Dennis ;o,)e' to tac)e thecompetition

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    Motoro)a Star Tac mo(i)e phones (ecame insp7or the team

     The team >as inspired (, the Thin Dierencampaign o7 4pp)e

    Reduced thicness 7rom "1mm to ""mm and>eight

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    Palm V’s ProductDevelopment Timeline

    (22 months

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    Phase %

    • UnderstandO(ser+e• * months

    Phase "

    • Visua)iQeRea)iQe• months

    Phase

    • E+a)uateRe9ne

    • # months

    Phase*-

    • Imp)ement• " months

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     T2E 24NDSPRINPROECT

     The ne> product >as introducedas a successor o7 P4LM V @ @ @

    Bith a greater eFcienc,6

    ease o7 usage and

    much )ess price@ @ @

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    PROECT OUTLINES

    •  The idea 7or the pro3ect started in u),6 "11$@

    • 2a>ins6 a)ong >ith his (usiness partneDu(ins,6 set up a shop in Pa)o 4)to@

    •  The goa) o7 the ne> compan, >as to creatcompati()e6 s)ight), sma))er and )ess8eHpens

    o7 the P4LM computers@

    •  The compan, >anted to reco+er the P4LM5s ineasi), add 7unctiona)it,@

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    PROECT OUTLINES !contd@'

    •  The team >anted the modu)es to (e simp)e to

    •  The compati(i)it, idea >as generated 7rom daughter5s Nintendo ame ;o,6 >hicinterchangea()e cartridges 7or ne> games@

    •  The name >as proposed (, 2a>ins5 "%

    daughter = VISOR56 short 7or 4d+isor5@

    • 4)ong >ith the origina) engineering team o7a(out t>o doQens o7 third part, de+e)opers hinterest to pro+ide so7t>are in the pro3ect@

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    S4LIENT :E4TURES O: T2E PRODUCT

    • VISOR5s cost >as "#%6 >here the P4LM Vmore eHpensi+e -#%@

    • SPRIN8;O4RD5 7aci)it, >as used to insmodu)es 7or per7orming +arious mu)timedia ta

    • Rechargea()e Lithium8ion (atteries rep)a

    (atteries used in the P4LM V computer@

    •  The de+e)opment o7 the product inc)uded a DEVELOPMENT C?CLE o7 "% months (e7ore hathe product to production@

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    PRODUCT DEVELOPMENT P24SES

    P24SE % UnderstandO(ser+e

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    P24SE % UnderstandO(ser+e

    •  The team sought to understand the c)ient5s (usiness aitse)7 in 9nding out a(out the 7easi(i)it, o7 a product@

    •  This in+o)+ed inha)ing e+er,thing e+er >ritten a(out product and potentia) users@

    • ;, the end o7 this process6 team mem(ers taced tcenter >a))s pictures and diagrams summariQing ma3oa(out the maretp)ace and users@

    • Product de+e)opers at most companies spent )itt)e time

    o7 dup)icating eorts o7 mareting or R&D@

    • ;, the end o7 Phase %6 the team create a 7easi(i)it, recodisco+eries a(out the maretp)ace and users@

    • Least eHpensi+e part o7 the entire pro3ect@

    P24SE I Visua)iQeRea)iQe

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    P24SE I Visua)iQeRea)iQe

    • 2ere the team ended up choosing a product direction (atechno)ogies6 and maret perceptions@

    •  The team a)so gain an understanding o7 the product contga))er, o7 en+isioned characters using the product in their

    •  This intensi+e stage reGuired c)ose coordination o7 ec)ient to ensure constant 7eed(ac@

    •  The team com(ined ideas6 techno)ogies6 and maret pe

    o(ser+ations o7 rea) >or)d users to in+estigate potentia) nproduct cou)d 9))@

    • ;, the end o7 Phase I6 the team >ou)d ha+e rough thremode)s o7 a product and a genera) idea o7 the manu7actto (e uti)iQed@

    P24SE II E+a)uatingRe9ning

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    P24SE II E+a)uatingRe9ning

    • In this phase the team enhance design pthrough testing 7unctiona) protot,pes@

    • Emphasis is shi7ted o+er the course o7 this shuman 7actors and ergonomics to engineering@

    • Concurrent engineering o7ten occurred6 througpre+ious), unspeci9ed 7eatures using an

    process@

    •  This process reGuires constant communications+arious su(groups to ensure that the 9na) >ou)d mesh >e)) together@

    •Phase II cu)minated >ith a 7unctiona) mode) as

    P24SE III Imp)ement !detai)ed engineering'

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    P24SE III Imp)ement !detai)ed engineering'

    •  The team comp)ete the product design and +eri9product >ors and cou)d (e manu7actured@

    • 4)though engineering eorts predominate6 continuoin+o)+ement >ith design team mem(ers occur@

    • :or designers6 7reGuent +isits to the machine shopsphase pro+ided a rea)it, chec@

    • ;, the end o7 this phase6 the team de)i+ers a 7u)design mode)6 too)ing data(ases6 and technica) docu

    •  Testing might a)so (e undertaen in this phago+ernment regu)ations@

    •  The team a)so starts se)ecting +endors@

    P24SE IV Imp)ement !manu7acturing )iaison'

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    P24SE IV Imp)ement !manu7acturing )iaison'

    • In this phase6 the team reso)+ed issues in+9na) design to ensure smooth product

    manu7acturing as the product mo+ed 7rom theto the c)ient5s 7actor, )ines@

    •  The team sti)) super+ises production oregu)ator, appro+a)s6 and construction o7 pithe manu7acturing )ine@

    •  Testing o7 manu7acturing 7easi(i)it, is crucia) )oss o7 a production )ine5s output might costcompan, a su(stantia) amount in )ost re+enue

    • ;, the end o7 this phase6 the product >ou)d (

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    2!"#$ "! %ost innovative companies%"#Ran

    %"-Ran

    Compan, eograph, Industr,Spe

    " " 4pp)e United States Computing ande)ectronics

    oog)e United States So7t>are and internet

    * # Tes)a Motors United States 4utomoti+e

    - - Samsung South 0orea Computing ande)ectronics

    # * 4maQon United States So7t>are and internet

    . . *M United States Industria)s

    / / enera) E)ectric United States Industria)s

    $ $ Microso7t United States So7t>are and internet

    1 1 I;M United States Computing ande)ectronics

    "% N4 To,ota apan 4utomoti+e

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    2!"#$ Top # & ' D spenders

    67-ols"a&en ermany )utomotive "#@*

    87Samsun&  *outh +orea omputing and electronics"-@"

    97Intel nited *tates omputing and electronics""@#

    7Microso%t nited *tates *oftware and internet""@-

    ;7Roc#e *wit.erland /ealthcare "%@$

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    Strategies (, 4pp)e Inc@

    =4n eHceptiona) consumer

    eHperience

    =Intuiti+e user inter7aces

    =S)ee product design

    =Iconic (randing

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    Inno+ation strateg, mode)s• Need seekers  These companies acti+e), engage cu

    potentia) customers to shape ne> products6 ser+icesprocessesJ the, stri+e to (e 9rst to maret >ith those

    • Market readers These companies >atch their mar(ut the, maintain a more cautious approach6 7ocusincreating +a)ue through incrementa) change@

    • Technology drivers These companies 7o))o> the dirsuggested (, their techno)ogica) capa(i)ities6 )e+eragin+estment in research and de+e)opment to dri+e (reinno+ation and incrementa) change6 o7ten seeing to unarticu)ated needs o7 their customers@

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    Some 7acts a(out product de+e)opme

    In %"#6 R&D spend (, the premier companies has incr

    #@"X to .$% (i))ion@

    0*0 remains largest country location for the conduct ofcorporate &'D, representing the net of domestic, impoe1ported &'D0

    China and India )ead d,namic R&D gro>th in 4sia regio(, imported R&D 7rom the U@S@

     The three )argest industries 7or R&D Spend in %"# arecomputing and e)ectronics !C&E'6 hea)thcare and auto@

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