IDEO is the largest design consultancy firm in the United States, generating $120 million in revenues in 2008. It created some of the most recognizable technology icons like the first laptop and mouse. IDEO uses "Design Thinking", a human-centered methodology to design products that solve problems and offer superior experiences. Some major clients include AT&T, Ford, Nike, and Eli Lily. IDEO's success is attributed to its human-centered research methods involving observational studies to understand customer needs and viewpoints. However, conducting this type of in-depth customer research presents challenges such as subjective interviews, time and cost constraints, and small sample sizes.

1. Michaela Louise Delfinado
Kenneth P. Sulipa
Karla Mae S. Jalad
MM 230 – Marketing Management
University of the Philippines
Prof. Mita Angela M. Dimalanta

2. IDEO is the largest consultancy firm in the United
States who created some of the most recognizable
design icons of the technology age, which includes
the first laptop computer, first mouse, the Palm V
PDA and the TiVo digital video recorder. Since its
founding, it has been issued over 1,000 patents,
and in 2008 IDEO generated $120 million in
revenues.

3. IDEO’s Design Thinking is an approach based on
“Human-Centered Methodology” where the
company strives to design products that consumers
actively want because they offer a superior
experience and solve a problem.

4. IDEO’s clients
include:
• AT&T
• Bank of
America
• Ford Motor
• PepsiCO
• Nike
• Marriot
• Caterpillar
• Prada
• Mayo Clinic
• Eli Lily
• Lufthansa

5. Why has IDEO
been so
successful?
Success of IDEO is
credited to their human
centered research
methodology that
involves
observational methods to
uncover customers’
insights and points of
view.

7. • Methods collectively referred to as “design
thinking” integrate customers’ needs with
what is technologically feasible and
economically viable
• They
• Turn their customers to innovators.
• Design products from “outside in” by
putting customers first.
• Study consumer behavior to determine
how they purchase, interact with, use,
and even dispose of their products.
Why Has IDEO Been So Successful?

8. What is the most
difficult challenge
it faces in
conducting its
research and
designing its
product?
The customer-centered
approach which entails the
in-depth participation of
customers. It’s difficult to
obtain data from
consumers.

9. Customer Centered Approach
Interview
may be
subjective
and biased
Time
Consuming
Expensive
Sampling
can be
small &
skewed
Human
shadowing
can be
ethically
questioned
Challenges of Customer-Centered Approach

10. In the end, IDEO creates great solution
for companies that then receive all the
credit. Should IDEO try to create more
brand awareness for itself? Why or why
not?

11. IDEO should try to create
brand awareness for itself to
market its services to
potential clients. Its products
and innovations are
associated with their clients
and not to IDEO. IDEO is
relatively unknown to the
users of the products they
designed, although it is the
largest design consultancy
firm in the United States. To
become more competitive,
consumers should become
aware of the products and
services provided by IDEO.
There is no need for IDEO to create
more brand awareness for itself
because their clients are doing the
brand awareness for them. IDEO is a
global design company that creates
impact through their designs. Their
business is to connect people to
brands in harmonious, meaningful
ways. Primary clients of IDEO are
businesses that hire them, not end
consumers. Allowing their clients to
shine is building IDEO’s reputation in
the business world and this is the
best brand awareness one can get.
The reason why IDEO is the largest
and most trusted consulting firm in
the US is because they always put
their clients and consumers first,
instead of focusing on their own
brand.
REFERENCE : Kotler , P., & Keller , K. (2012 ). Marketing Excellence: Ideo . In P. Kotler, & K. L. Keller,
Marketing Management (pp. 119-120). Pearson Education Inc.