Ideo - Successful Product Development Firm

        IDEO had become one of the world’s largest and most successful product development firms.  According to its founders this achievement stemmed from several factors; two of the most important coming from their design philosophy and company culture.  However, the proposed new project by Handspring’s management team could very well disrupt the very ideals that allowed IDEO to rise to prominence.  Having just led a group through a similar product development process with 3Com’s Palm V, Dennis Boyle realizes the potential road bumps IDEO will have to navigate in order to successfully launch the proposed Handspring project.  

The major obstacles that IDEO faces by taking on the Handspring project listed by priority are:  Boyle’s team being forced to keep the rest of IDEO in the dark about their project.  A situation that would go directly against the culture that IDEO strived to create, and could potentially stifle the creative process which had been a major driver of their previous success.  Secondly, the development schedule, which is less than half that of the Palm V, would require the team to bypass many of the important early development stages.  Both of these obstacles, coupled with the time and price pressures, could lead to a finished product that is not up to the standards that has allowed IDEO to differentiate themselves from other product development firms.  Thirdly, with teams still working on the Palm V project in the Silicon Valley office creates a major conflict of interest for IDEO dealing with competing companies.  Finally, the lack of market research on the “slot concept” along with the set price point puts the team at a major disadvantage from the start.

IDEO should decline the Visor Project from the Silicon Valley office.  The conflict of interest created by working on both the Visor and Razor projects out of the same location is just too risky.  While the Handspring Project has great potential for revenue the potential harm of having both work out of the same office outweighs any upside.  With the Palm V project further along it takes priority over any potential new business.  The already established working relationship with Palm cannot be jeopardized by taking on a project to build a similar competing device.