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IDEO
CASE ANALYSIS: IDEO

HISTORY
IDEO was founded in 1991 by David Kelley, Dean Hovey and Bill Moggridge in Palo Alto, California. Kelley & Hovey invented the first computer mouse that would eventually be used for the first Macintosh computer. When the company expanded to about 10 offices in the 1990’s, there was no hierarchy in the office and maintains a flat hierarchy until today.1 Its motto is “We think to build and build to think”.

CASE SUMMARY
IDEO is the largest design consultancy firm in the US. IDEO’s human-centered methodology helps them understand how consumers interact and utilize the products. Its success can be attributed to (1) customer-focused approach known as “design thinking” based on “human-centered methodology” and (2) prototyping, which allows participants in studies to test and improve upon each level of product development. IDEO designed the first laptop computer, the first mouse for Apple, the Palm V PDA and the TiVo digital video recorder.

Question 1
IDEO designs products that consumers actively want, by understanding how customers purchase, interact with, use and dispose products. Also, IDEO employs observational methods to study customer behavior with four techniques: “human factor”, “behavior mapping”, “camera journals” and “storytelling”. The most difficult challenge it faces is market-mix modeling (if the product isn’t advertised well or implemented properly, the investment could have a negative effect) and executing the decision. Additionally, the company they are creating the product for may not like the design or implement it, which leads to wasted resources such as time and money. Another challenge it faces is their clients’ failure to supply the appropriate problem parameters. Also, these clients may also have unrealistic expectations about IDEO.

Question 2
Although the company can increase brand recognition by creating brand awareness, IDEO helps organizations innovate, grow and build business by providing them with

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