IDEO 2.0 to 3.0, the Innovators Dilemma:

Working in a team of 6 students, we examined the classic innovators dilemma: IDEO, the design consultancy is considered a leader among firms, but as new companies and new competition flourish, how does IDEO adapt to stay ahead?

Some of the newest offerings from IDEO are business design and innovation consulting. Our objective was to evaluate these offerings and determine a strategy for IDEO.

First, we identified what IDEO considers important, from their core competencies of product development, design strategy, and innovation consulting; to their business objectives including return on investment and market share; and their values like collaboration, building to think, and having a positive impact with their work.

Using these qualities as a guide, we then charted them against their competition, design consultancies like Frog and Fuse Project, and new-found competitors: traditional business consulting firms like McKinsey. When we charted the analysis, we were very surprised to see that based on our criteria, there was very little difference between design consultancies, business consultancies, and IDEO.

In order for IDEO to stay ahead, it was clear that their new differentiators – business design and innovation consulting – needed to be developed further, through alignment within the company, and the building of resources to support the business design efforts. To do so we proposed the IDEO gym, co-working for business innovation.

The IDEO Gym would allow IDEO to attract entrepreneurs and coach them, building both a talent resource and the business design expertise needed to keep IDEO ahead. By starting small and allowing space to prototype, the space and program can shift and adapt to meet IDEO’s needs.

This project was purely speculative, and included no contact with IDEO by the team.

Full project report available upon request.

Date: Spring 2010
Class: Strategic Management
Contributed to: Secondary Research, Writing, Analysis, Competitive Analysis, Concept Development, Ideation, Project Management