See Ideo General Manager Tom Kelley expound the famous design firm's methods.

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In Kelley's analysis, most consumer products have reached the end of their design processes. Now, as companies such as Ideo develop products and services, the focus is on the experience the consumer will have.

"We talk about the idea of verbs, not nouns," he says. "Especially when you're designing a product, there's a temptation to focus on the object. You get a much better product or service when you let go of that."

In designing kids' toothbrushes for Oral B, Ideo designers at first assumed a smaller, more fun version of an adult toothbrush would work fine. But when the researchers observed actual kids using toothbrushes, they saw they'd have to innovate.

"We found that kids hold their toothbrushes like this," said Kelley, making a fist around a toothbrush. "Once we saw that, it flipped our point of view. We found that we actually needed something fatter, something meaty to hold onto."

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