Intrapreneurship and Corporate Venturing 397have some wacko problem, chances are that someone at [IDEO] has the skills to take
care of it.”^38
IDEO was created in 1991 as a merger of two firms: David Kelley Design and ID
Two. In 1982 Kelley designed the first mouse for Apple Computer and ID Two designed
the first laptop computer, so IDEO’s roots are in the design industry. It has won many
awards, and in 1996 even redesigned chocolate.^39 Kelley and the ID Two founder Bill
Moggridege still manage IDEO, along with current CEO Tim Brown.
Over the years IDEO has become a force in the design industry and in the world of
corporate innovation. It is huge for a design firm, with over 350 employees and rev-
enues of $60+ million. The client list includes such Fortune 100 companies as Apple
Computer, IBM, Hewlet-Packard, ATT Wireless, BBC, Samsung, and P&G. More than
half the firm’s turnover comes from overseas.
As IDEO has become the iconic innovation house, its methods have drawn increas-
ing attention and, of course, imitation (the sincerest form of flattery). IDEO too has a
five stage process:
- Observation. IDEO consultants are psychologists, sociologists, anthropologists,
engineers, graphic designers, architects, and other people with unusual (for a busi-
ness consultancy) skills. When they observe, they see different things: They see rela-
tionships, networks, behaviors, and environments. Their job is to understand the
consumer experience. Among the techniques IDEO uses are shadowing the cus-
tomer, mapping the behavior in 3-D space, and storytelling. - Brainstorming. This technique has been employed by many businesses for over 50
years, but IDEO is a leader in its effective use. It sets a firm time limit of one hour
per session. The rules are written on the walls and strictly enforced. Participants
include the extremely diverse IDEO consultants and the client’s people. Outside-
the-box thinking is encouraged and there is an absolute “no criticism” rule.
Frequently over a hundred ideas are generated in these sessions. - Rapid-prototyping. According to IDEO philosophy, it is easier to understand an
innovation when you can see it than when it is just a concept. So they build mod-
els of products, environments, experiences, and technologies. Using cheap supplies
(frequently just cardboard) and short movies, IDEO designs prototypes of the
ideas generated in the brainstorming session. They move fast and without frills to
see if it will work. - Refining. IDEO then helps clients winnow out the less valuable ideas and focus on
a few big ideas. The consultants are disciplined in their selection and make hard
choices. The process requires prioritization and resource calculations. Stakeholders
must agree on the final list before the next stage. This is the buy-in. - Implementation. IDEO stays with the client throughout implementation. Its
diverse workforce from over forty countries continues to provide input and creative
thinking during the final stage.
In his book The Ten Faces of Innovation (2003), IDEO founder Kelley writes that
“innovation is a team sport.” His firm is unique for two reasons. First it has the most
diverse team. IDEO divides the process participants into ten people-centric “personas,”
each with a role in the innovation process. When acting in a new persona, people see