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Connecting the underserved to the digital economy

Designing inclusive digital financial services for the last mile.

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Case study
Case Studies
Strategic Futures
Financial Services
Public Sector

Money works differently in communities traditionally excluded from formal banking, which makes designing products that really serve their needs a very different kind of challenge. People who live in the last mile often prefer cash because it’s physical. They can see it, touch it, and access it at any time.

While digital money offers many benefits, such as securely sending money over long distances and accessing new forms of credit, many don’t trust it because the places where they can access digital currency have often been too far away.

In 2017, over 500 million adults lived more than three miles from a financial access point in eight emerging markets studied by the Gates Foundation. This may not sound like much of a barrier, but for those living in the last mile, it means having to close their shops, lose a day of earnings, arrange family care, and pay for travel, which can be time-consuming and difficult, especially during rainy seasons. For low-income people, the inaccessibility of financial services has been a deal-breaker for adopting digital money. On the flip side, banks, telecoms, and other companies struggled to reach these customers because their products were not inclusively designed for them, and their distribution models failed to scale in rural areas.

Amid these myriad challenges, IDEO and the Gates Foundation saw an opportunity to introduce innovative ways to provide access to digital financial services even in the most remote areas of the world. And to make bold new bets: Could we design new digital experiences centered around the financial needs of people in the last mile? What would happen if we mobilized hundreds of actors to develop new ways to address financial access at the last mile? What if we took the most exciting financial innovations that worked in East Africa and piloted them in South Asia—and vice versa?

Working with more than 70 partners, including local startups, corporations, including Google, Unilever, Telenor, Standard Chartered, and BNI, as well as IDEO.org’s Women & Money program, LMM adopted a collaborative, ecosystem approach to drive and scale new digital financial products and systems.

A few of the life-changing innovations launched by LMM and its partners include:

  • Finja’s intuitive small-business app that helps micro-merchants in Pakistan access flexible, interest-avoiding Islamic credit  to order products from fast-moving consumer goods companies like Unilever. Finja now serves 45,000 merchants and reaches 10.2 million customers.
  • Accessing government benefits can be a challenge, especially when it’s through a mobile phone, so IDEO helped Indian startup Haqdarshak develop a robust digital experience for its 52,000 community agents to facilitate access for low-income people. The agent network—70 percent of whom are women—now serves more than 7.6 million families and has unlocked $2.2 billion in social benefits for those who need it most.
  • Making micro-credit nearly instantaneous was a solution that startup Kuunda offered to financial agents in Tanzania. IDEO helped adapt the product to deliver working capital for merchants in Pakistan. Today, Kuunda continues to grow across markets in Africa, totaling 6.1 million active users and distributing $1.1 billion in loans globally.   

While the LMM program officially concluded in 2024, lessons, tools, and case studies from the program are accessible on IDEO’s Financial Futures website. Those looking to catalyze equity and inclusion in digital financial services for the last mile can consult LMM’s Financial Confidence Playbook, the open-source Digital Confidence Toolkit (created in collaboration with Google), or the Gender Evaluation Framework, among other helpful resources.

Over 1.3 billion people worldwide in poor and rural areas are excluded from formal financial services, including savings accounts, credit lines, and insurance, making it harder for them to move out of poverty.

34M

underserved users reached by 100+ new financial products, pilots, and prototypes

70+ LMM partners

including Google, Unilever, Grab, Standard Chartered, Cargill, Airtel, Celo Foundation, and BNI

Today, 1 in 10 people live in extreme poverty, or on less than $3 per day. Many of them don't have a bank account. They rely on cash, physical assets such as jewelry or livestock, and money lenders to meet their financial needs. Though easily accessible, these informal tools can be insecure, expensive, and difficult to use. And if an emergency occurs, they often fail completely, with devastating results. The Gates Foundation believes that connecting the underserved rural poor in emerging markets to the modern digital economy is key to helping people lift themselves out of poverty. That’s why from 2019 to 2024, Gates partnered with IDEO on Last Mile Money (LMM). Working together with 70-plus global partners and high-growth local startups, the comprehensive innovation program launched more than 100 inclusive digital financial services in un(der)banked communities around the world, positively impacting 34 million lives—and counting.
With Last Mile Money, the Gates Foundation and IDEO bring the promise of modern financial services closer to remote rural communities worldwide.
Last Mile Money takes a systemic approach to designing inclusive financial futures in the hardest-to
Gates Foundation
Gates Foundation
Connecting the underserved to the digital economy, telecommunications, telecom innovation, Gates Foundation, financial services, fintech, financial innovation, public sector innovation, government services, civic innovation, digital transformation, digital experience, digital product design, UX design, growth strategy, business growth, scaling innovation, inclusive design, accessible design, equitable design, financial services innovation, banking experience, financial inclusion, innovation strategy, business innovation, design innovation, how to innovate, how to design a digital product, innovation, strategy, product design, startup, transformation, government, how do we innovate

Disrupting the beauty goliaths

How a new Peruvian brand overcame the odds—by design.

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Case study
Case Studies
Breakthrough Products
Creative Capabilities
Consumer Products & Retail

Multinational CPGs excel at creating popular, mass-market products for large countries. When they enter smaller countries like Peru, they often parachute their brands onto store shelves and skip consumer product testing altogether, largely relying on brand recognition to drive sales. This oversight presented Alicorp and IDEO with an opportunity: flip the script and invite young Peruvian women to work together with them to create a new hair care brand from scratch. Over the course of a four-year transformational journey, IDEO worked closely with Alicorp, adopting a “learn by doing” approach to foster a culture of innovation, launch a new brand, and drive growth for the company through consumer-centric design.

The collaboration began with an inspirational trip 10,000 miles away to Seoul, South Korea, the epicenter of global beauty trends. To expand their thinking, the Alicorp/IDEO team received K-Pop glow-ups and explored other cutting-edge beauty experiences. They were inspired by the Korean market’s unwavering focus on meeting the particular hair care and skin needs of Korean women.

Back in Peru, the team conducted multiple rounds of in-depth interviews with young women, teenagers, beauty influencers, and experts across the country. They learned about their beauty goals, personal care routines, and “mixto” hair texture. They heard about women’s struggles with regional weather—the Andean region’s extreme dryness versus Lima’s humidity and the city’s hard water. The research revealed that Peruvian women wanted natural products that worked hard, wouldn’t harm their hair, and celebrated what made them unique. They wanted a brand that spoke to them honestly and authentically. That represented and empowered them. That didn’t overpromise, underdeliver, or hold up European and American beauty ideals that didn't resonate with Latin American women like the multinationals did.

Initial IDEO packaging design and branding prototypes

Armed with these insights, the Alicorp/IDEO team developed tangible brand prototypes for women to respond to during successive rounds of user research, including in a beauty pop-up store in Lima. The team shared various bottle types, ingredient mixtures, and brand positioning options. Should the new brand’s personality be an outspoken feminist or a gal pal? Au naturel or sophisticated? The iterative feedback cycles informed everything from brand strategy and ingredient recommendations to product line-up, brand and product naming, launch strategy, and digital activations.

The final design, Amarás (“you will love”), is a personal care line that centers the needs and aspirations of Peruvian women. Hitting shelves in 2022, its shampoos and conditioners feature local, bio-diverse ingredients, including mangoes, macadamia nuts, and goldenberries, that help address the specific hair texture needs of women in LATAM and the climate realities of the Andean region. The brand’s launch campaign included TV and print ads featuring Peruvian models from every region as well as commissioned murals celebrating local beauty by artists across Peru. Most notably, the unapologetically authentic Peruvian hair care brand became a TikTok sensation, garnering over seven million organic views and more than 300 viral videos from enthusiastic new fans.

Initial IDEO advertising prototypes for the new Amarás brand

Three months after its launch, Amarás seized a 7.5 percent share of the personal care aisle—a remarkable goal it had set for year three.Since then, Alicorp has continued to expand its creative capabilities, designing personal care products tailored to the cultural and beauty needs of Latin American consumers.

Alicorp launched numerous successful brand extensions across its food and home care categories, but was unable to crack the $340M USD hair care product market in its home country of Peru.

7.5%

Amarás’ share of the Peruvian hair care market 3 months after launch—a goal Alicorp had set for year 3

7M+ organic views and 300+ organic fan videos

created on TikTok during Amarás’  launch campaign
Personal care is one of the most profitable markets in Peru. Projected to reach $1.7 to $1.8 billion in revenue in 2026, it has one of the largest growth rates in the consumer packaged goods (CPG) industry. Until now, the country’s hair care category has been dominated by multinational beauty brand goliaths such as P&G, Unilever, and L’Oréal. Alicorp is one of the largest CPGs in Latin America (LATAM). But despite a track record of success in its food and home care categories, Alicorp had struggled and failed twice to break into the highly competitive—and lucrative—personal care market. After a transformational multi-year collaboration with IDEO, however, Alicorp went up against the giants again. This time, it won.
Alicorp embarks on a four-year journey with IDEO to transform its culture, build a best-selling personal care brand, and spur lasting growth through human-centered innovation.
Introducing Amarás, a bold new brand celebrating authentic Latin American beauty.
Alicorp
Alicorp
Disrupting the beauty goliaths, Alicorp, consumer products, retail, consumer experience, retail innovation, brand strategy, brand design, brand identity, brand experience, packaging design, product packaging, packaging innovation, product design, industrial design, new product development, growth strategy, business growth, scaling innovation, business transformation, organizational transformation, culture change, retail experience, store of the future, food experience, food systems, future of food, understanding user needs, how to build a brand, innovation, strategy, research, user research, prototyping, product development, transformation

Enhancing garment worker well-being with AI

Introducing Aitu, “Smart Machines, Uplifting People.”

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Case study
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Strategic Futures
Industrial & Manufacturing
AI & Emerging Tech

Thirty years ago, China-based Jack Technology started as a home sewing machine manufacturer. A decade ago, the innovative global leader began investing in robotics and exploring AI, a decision that positioned it well to address today’s urgent need for smarter manufacturing solutions.

Believing that a new, strategically positioned sub-brand could draw in larger, more premium global manufacturing customers, Jack Technology and IDEO set out to understand their needs. IDEO began by visiting more than a dozen garment factories across China, Vietnam, and Bangladesh, conducting in-depth interviews with factory managers, industrial engineers, pattern-making leaders, and frontline workers. It soon became clear: the apparel manufacturing industry is at a critical juncture. The way apparel manufacturers navigate the promises of intelligent technology—while addressing deep-rooted structural issues like labor shortages and working conditions—will shape the industry's development for years to come.

For premium clothing brands, garment factory compliance and worker well-being are priorities when selecting production partners, so many owners proudly showcased their improvement efforts. They discussed investing in quieter machines and air conditioning, enhancing lighting, adding greenery, and implementing no-overtime policies. Amid rows of identical sewing stations, the IDEO team noticed small human gestures, such as a small vase of flowers. As one operator said, “I just want to uplift myself during work.”

The research helped IDEO identify a core opportunity for differentiation. Create human-centered products and services that further enhance working conditions in large apparel factories, strengthen their ability to attract and retain talent, and drive the industry toward a more sustainable future. Through multiple rounds of co-creation with the Jack Technology team and key apparel-sector stakeholders, a clear brand direction for Aitu began to take shape: “Smart Machines, Uplifting People.”

Guided by this human-centered ethos, IDEO helped build a comprehensive brand system for Aitu. The idea of “uplifting people” and showcasing garment workers’ professionalism and skill is expressed throughout all brand communications, the industrial design of its smart sewing machines, and the interaction and industrial design of a humanoid sewing robot.

In the eyes of factory workers, this is the new work experience Aitu brings to life. Compared with traditional bulky industrial machinery, the clean lines and soft edges of Aitu’s new AI-powered sewing machines feel more like the professional office tools found in bright, organized workplaces. Concave surfaces and soft materials diffuse glare from overhead lighting, reducing eye strain, while clear interaction logic and icon-based visuals accommodate operators with varying levels of skill and education. AI technology, seamlessly embedded in the machine’s core functions, automatically adjusts parameters for different fabrics and tasks, allowing operators to achieve high-precision results with less effort. A soft halo-like light glows whenever the AI-assisted function is active, fostering users’ trust in both the technology and the AI-powered sewing machine as a whole. When hundreds or thousands of Aitu machines are arranged together in a factory, the overall effect is a modern, professional, and high-end work environment.

Working closely with Aitu’s robotics team, IDEO’s final design challenge was to bring a human-machine collaboration to life through a full-scale AI robot, AI10. The robot has an elegant, biomimetic silhouette. Its fabric-like outer finish features design elements commonly found in garment making, such as cutting and stitching lines, giving the robot the approachable look and the feel of a skilled tailor companion who can assist with simple, repetitive tasks. When AI10 is in operation, a circular light ring gently pulses at the sides of the robot’s ears as well as on the paired sewing machine’s display screen, clearly signaling the robot’s activity to its human co-workers.

In September 2025, Jack Technology debuted its new Aitu brand, along with its first AI sewing machine and a humanoid robot prototype, at a launch event at Shanghai Tower and at the China International Sewing Machine & Accessories Show. IFA Berlin, Europe’s largest trade show for consumer electronics, honored Aitu with a Gold Award for AI Product Innovation for seamlessly integrating AI technology and industrial design. Jack Technology’s humanoid robot is expected to go into full-scale production in 2026.

Before AI, the apparel manufacturing industry had experienced little fundamental change since the invention of the lockstitch sewing machine nearly two centuries ago.

2025 Gold Award for AI Product Innovation

from IFA, the world’s largest home and consumer tech event
Global garment manufacturing is at a crossroads. Skilled operators are retiring, and too few young people are interested in replacing them, resulting in crippling labor shortages. At the same time, trend cycles and rising demand for innovative textiles are increasing the complexity of apparel production. All of this is compounded by increased scrutiny of working conditions by global apparel brands, putting pressure on owners to improve the day-to-day experience on factory floors. Amid these myriad challenges, Jack Technology, the worldwide leader in industrial sewing machine sales, identified a strategic opportunity: Redefine the future of sewing by launching a new premium AI-enabled equipment brand, Aitu. IDEO’s role? Strategically position the brand and bring it to life to appeal to the world’s leading clothing makers.
Jack Technology and IDEO create Aitu, a new high-end brand of AI-enabled industrial sewing equipment that helps large-scale apparel manufacturers enhance operations while building a more human-centered workplace for the future.
Aitu envisions the future of human-machine interaction in global apparel manufacturing.
Jack Technology
Jack Technology
Enhancing garment worker well-being with AI, robotics, human robot interaction, garment workers, worker well-being, smart manufacturing, Jack Technology, manufacturing innovation, industrial design, AI, artificial intelligence, emerging technology, AI strategy, AI product design, responsible AI, designing with AI, brand strategy, brand design, brand identity, brand experience, venture design, new business creation, business model innovation, creative leadership, leadership development, human centered design, design thinking, customer centricity, employee experience, workplace design, team collaboration, future strategy, how to use AI, innovation, strategy, product design, research, prototyping, leadership, creativity

Helping Peru’s top hot sauce find US success

Introducing Tari, a flavorful new kick for everyday American foods.

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Case study
Case Studies
Breakthrough Products
Strategic Futures
Food

Alicorp has direct operations in Peru, Bolivia, Ecuador, and Chile, manages export operations in more than 30 countries, and oversees over 150 brands. While its AlaCena sauces are ubiquitous in South America, the brand’s North American market primarily consisted of purchases made via Amazon by Peruvians living abroad. To help the CPG giant expand meaningfully and sustainably onto US grocery shelves—and achieve its ambitious $50 million retail sales goal in five years—Alicorp and IDEO collaborated on multiple projects over a two-year period. The partnership began in early 2020 with consumer research and product strategy, ultimately leading to the development of initial product branding, positioning for launch, and an in-market pilot in late 2021.

Initial IDEO Tari packaging design prototypes

Through a combination of large-scale digital surveys and in-depth, in-person and remote research interviews, IDEO discovered that AlaCena’s Tari and Uchucuta’s hot sauce recipes resonated the most with US consumers. Made from native Aji Amarillo and Rocoto chili peppers ground using a traditional Andean “batán” technique, consumers appreciated their complex flavors and enjoyed how they enhanced, not overpowered, everyday foods like burgers and fries. The sauces’ authentic Peruvian culinary roots were also a key differentiator. In addition to consumers, IDEO consulted with industry experts—including executives from large-scale grocery chains and chief merchants of leading big-box stores—to explore retail and marketing trends and identify potential innovation partners for Alicorp in the US.

Initial IDEO ad prototypes for Tari

Based on the research, IDEO recommended a few changes to ensure a successful launch: Lead with the Tari brand, which was the most memorable and easiest to pronounce, and position it as an “everything sauce.” Change the packaging from a large plastic pouch to a smaller squeeze bottle to better align with consumers’ expectations and stand out on the inside of refrigerator doors. Adjust the product formulation to appeal to mainstream consumers looking for cleaner labels. And visually celebrate Tari’s Peruvian roots through bright colors, traditional textiles, and a llama, an animal closely associated with the Andes Mountains. In addition to these recommendations, IDEO provided a comprehensive go-to-market retail strategy that included potential US regions for launch, retail brokers, distributors, manufacturers, and R&D and pilot retail lab partners, as well as job descriptions for a new North American-based sales team.

While Alicorp worked on reformulation and packaging strategies, IDEO refined Tari’s initial branding strategy. Steeped in Peruvian aesthetics, the brand’s new look and feel featured a vibrant color palette, geometric patterns, and—of course—a friendly llama icon, which could also be found on all in-store point-of-sale items IDEO designed for Tari's pilot launch in late 2021.

The successful 12-week in-market pilot in Tom Thumb grocery stores gave Alicorp the confidence to have its in-house design team make the brand even bolder and more eye catching, and to launch two flavors, Amarillo Pepper and Rocoto Pepper, on Amazon and in over 50 retail stores in late 2024.

Since then, the popular sauces consistently rank among the top 50 percent of the fastest-selling products on US shelves, with 80 percent of sales revenue representing new business. In 2025, Tari expanded its offerings with three additional flavors: Zesty Verde, Tropical Kick, and Smoky Heat. Today, Tari is in transit to 3,000 major grocery stores, including Wegmans, Meijer, Central Market, and The Fresh Market, as well as available for purchase on Amazon.

Alicorp had a vision to expand its beloved and delicious hot sauces to the US market, but needed help fine-tuning the brand and product for an American audience.

3,000

major US grocers, including Wegmans and Meijer, have signed on to sell Tari hot sauces

80%

of Tari’s sales revenue represents new business, a significant expansion of the overall category

Ranked in the top 50%

of the fastest-selling products on US grocery shelves
The global hot sauce market is booming. The category is projected to grow from $3.54 billion in 2025 to $5.98 billion in 2032, with North America accounting for a market share of more than 44 percent, driven in part by increasing consumer demand for bold flavors from Asia and Latin America. Peru’s largest consumer goods company, Alicorp, knows what it’s like to dominate the category. Its iconic AlaCena chili sauces have been top sellers in Peru for more than 25 years. Spotting an opportunity to expand its reach and bring its signature recipes north to the US, Alicorp asked IDEO to help reimagine the brand, fine-tune the product, and craft a go-to-market strategy that would entice adventurous American eaters to add an AlaCena sauce or two to their refrigerators—and turn the Peruvian upstart into a mainstream must-have in the process.
Alicorp and IDEO bring Peru’s favorite hot sauce to eager US eaters looking to spice up daily meals with regional South American flavors.
Finding US market fit for one of Peru’s most popular chili sauces.
Alicorp
Alicorp
Helping Peru’s top hot sauce find US success, Alicorp, food innovation, food and beverage, brand strategy, brand design, brand identity, brand experience, product design, industrial design, new product development, innovation strategy, business innovation, design innovation, how to innovate, understanding user needs, how to build a brand, innovation, strategy, product strategy, research, customer research, prototyping, product development, sustainability

Build Your Creative Confidence: Customer Journey Map

One way to develop more empathy with—and gain new insights about—your customers is to look beyond the narrow definition of your offering and consider the customer’s total experience.

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Creativity Challenge #8: Empathize with customers, employees, and other end users.

One way to develop more empathy with—and gain new insights about—your customers is to look beyond the narrow definition of your offering and consider the customer’s total experience. The more broadly you define the customer experience, the more opportunities you can identify for improvement through design.

Say, for example, you make interior house paint. You could focus narrowly on the characteristics of the product itself, on making the paint less drippy or making it cover a surface in a single coat. But you’ll find many more opportunities for innovation if you think about the arc of the customer experience. In something as simple as repainting a bedroom, there are probably a dozen steps (each one of which is a chance to innovate): from getting the customer to realize that it’s time to repaint, to helping them choose the color, to shortening the preparation and cleanup time, to keeping track of which colors are on which walls for future reference when it comes time for touch-up.

A journey map helps you think systematically through the steps your customers—internal or external—have when they interact with your product or service. We use maps to synthesize what we learn from interviews and observations. (Or, during field research, you can also try asking your end user to map out his or her own journey.)

Tool: Customer Journey Map
Participants: Solo or groups of two to six people
Time: 1-4 hours
Supplies: Whiteboard or Post-its

Instructions

Step 1: Choose a process or journey that you want to map.
Step 2: Write down the steps. Make sure to include even small steps that may seem trivial. The goal is to get you to consider the nuances of the experience that you may normally overlook.
Step 3: Organize the steps into a map. Usually we display the steps sequentially in a timeline. Your map may include branches to show alternative paths in the customer journey. You could also use a series of pictures or whatever method fits your data.
Step 4: Look for insights. What patterns emerge? Anything surprising or strange? Question why certain steps occur, the order they occur in, and so forth. Ask yourself how you might innovate each step.
Step 5: If possible, show the map to people familiar with the journey and ask them what you’ve overlooked or gotten out of sequence.

Tips from the Field

Here is an example using this method:

Think about a trip to the hospital’s emergency room. Of course the most important moment is at the point of care, when the doc is diagnosing the problem or delivering treatment. But when people complain about (or, less commonly, rave about) their emergency room experience, it’s not usually the skill of the doctor they are talking about. A simple version of the patient journey might include moments like these:

  • Experience the pain or discover the symptom
  • Consider home treatment versus going to the hospital: the go/no go decision
  • Choose transportation to the hospital
  • Arrive and park (or pay the taxi, etc.)
  • Enter the hospital and find the emergency room
  • See the triage nurse
  • Fill out the insurance forms
  • Wait. And wait some more.
  • Get ushered to the treatment room
  • Put on an uncomfortable hospital gown, and wait some more
  • See multiple preliminary nurses and technicians
  • See the doctor for an assessment and sometimes preliminary diagnosis
  • Undergo additional blood tests, X-rays, and so forth
  • Receive a firmer diagnosis, which can lead to getting: instructions for home care, an outpatient procedure, a prescription, a follow-up appointment with a general practitioner or specialist, or admission to the hospital

As you lay out every step, ask yourself how you might cost-effectively innovate and turn the ordinary experience into something extraordinary.

Because emergency healthcare is often high-anxiety, we’ve discovered that patients are calmer if you spell out the journey ahead. We sometimes call that “journifying” the journey—taking an amorphous or scary process and breaking it down into tangible, predictable steps. We’ve found “journifying” helps people not only in the emergency room, but in any number of healthcare situations: taking your newborn home from the hospital, going in for surgery, or beginning a new treatment regimen.

This post was taken from Chapter 7 of Creative Confidence. Purchase the book for more on how to use creativity to solve problems, or read more from this series of creative exercises on the IDEO blog.

Everyone is creative. This belief runs through everything we do at IDEO, and in 2013, it led my brother David and me to write a book that would help others—even those who don’t think of themselves as “creative types”—to unleash their creative potential. Creative Confidence has inspired thousands of people to adopt a creative mindset and apply it to the diverse real-world challenges they face. In this series, we’ll share some exercises from the book that can help you approach your challenges from a new perspective.

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build your creative confidence customer journey map, build your creative confidence, customer journey map, customer experience, creativity, creative confidence, journey mapping, empathy, what do customers want

Training a Computer to Find Shapes in the Clouds

This IDEO software designer created an app that searches the sky

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I spent my afternoons on a small wooden pier, relaxing and staring up at clouds, looking for shapes. That pursuit is an exploration of pareidolia, the psychological phenomenon in which the mind responds to a stimulus, usually an image or a sound, by perceiving a familiar pattern where none exists. It was in that leisure time, trying to make sense of the clouds, that I found the comfort that I’d been seeking.

Nine years later, I found myself back in America, interning at IDEO Chicago, where I had far less opportunity for leisurely cloud gazing. Without the spare time to hang out on a pier, I wondered if I could engineer the same kind of comfort. Could I design an experience that brought back those long dreamy pareidolia days with the help of an app?

After all, people in my age bracket, between 25-34 years old, only spend an average of 13 minutes per day relaxing, according to the American Use of Time Survey, and experts say that we need to acknowledge and accept that we’re leisure-limited. Maybe this could be a shortcut to that leisure we’re missing.

So I created “Pareidolia,” an app that searches the sky on my behalf. It’s my way of trying to keep a part of my mind exploring, even when I need to be inside, working. If the app thinks it sees something in the clouds, it pings me to take a look.

Images of flowers in clouds

To create Pareidolia, I set up a Raspberry Pi and a camera on the terrace of our Chicago studio, and programmed it to look continuously at the sky, searching for interesting shapes. The project uses computer vision, tensorflow, and keras to perceive images in clouds, then snaps an image, generates a drawing of what it imagines it might look like, and shares them via Slack. (The code can be found and downloaded from this Github repo.) It tells us what it sees in the sky in real time and invites us to go out and look for it.

Images of cats in clouds

As I started to share Pareidolia with colleagues and friends, my creation was met with mixed reviews. Ross Weijer, a data scientist here at IDEO Chicago, thought that it created efficiency while offering a different perspective. “Technology is something that speeds up your life and, lets you do things quicker,” he said. “So I think it’s subversive and helpful to have the aim of this project be to spare your imagination. It’s saying, ‘Stop, stop, take a moment to consider this.’”

Others, though, felt that the payoff wasn’t seeing images in the clouds, but actually, the act of searching for them. “I look at the sky so little, that when I do it’s because I am looking for an escape,” said Kevin Matuszeski, regional director of business operations “There are very few places left without the presence of screens or where you have to read something. So the pure joy of staring at something just for its beauty should be respected."

In other words, for some people, the joy lays in the process, and Pareidolia seemed to eliminate that.

Pareidolia didn’t turn out to be quite the leisure fix that I hoped it would. And it didn’t quite prove to be an antidote to homesickness, either. But it did encourage me to get outside, take my eyes off a screen for a few minutes, and enjoy nature as much as I could from the concrete of my downtown Chicago office. And even if it wasn’t a total fix, it does brighten up my days.

I was only 16 when I moved across the Atlantic to Vancouver Island, Canada, thousands of miles away from my home in Spain. In this strange new world, I found myself struggling to find something that felt familiar, and could give me comforts of home.

Technology
training a computer to find shapes in the clouds, technology, digital innovation

4 Common Missteps on the Road to Innovation

Unexpected insights garnered from studying 500 companies & their cultures

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We know this is easier said than done, especially for large teams spread across multiple locations. Over the years, IDEO has helped organizations around the globe develop the capacity to innovate, and that work has allowed us to gather data on the behaviors that have the greatest impact on a team’s ability to develop a successful solution.

Here are four insights into the ways today’s businesses innovate—and what you can learn from what they’ve learned.

1. Quick and dirty prototyping isn’t just for software

Though many executives dismiss MVP-style prototyping as a software-only approach, we've found it's actually more effective in other industries.

In fact, rough, low-fidelity prototyping is significantly more impactful when used in industries where it's currently least applied—particularly for companies with long development cycles and long product lifecycles.

When we looked at data from our research, we found that organizations with long development cycles and long product lifecycles saw their chance of successful launches increase by 109% compared to their more nimble counterparts.

Why? And how? Let’s consider a car company: For those teams, the cost and risk of investing in poorly thought-out ideas is much, much higher. Building a high-fidelity vehicle prototype can cost millions of dollars using traditional methods. Instead, low fidelity mock-ups (in this case, using foam core and tape to create a simulated car dashboard) can uncover critical flaws that can save millions of dollars and years of effort.

2. Don’t let your team become blinded by purpose

Purpose statements are incredibly valuable. We’ve seen that organizations without a sense of purpose find it difficult to innovate: They struggle to choose which opportunities to pursue, and they have a more difficult time getting employees excited about developing those ideas. Our data shows that organizations with a strong purpose are 12% more likely to launch new solutions successfully.

But purpose can have a downside. Our research has shown that it lowers the ability to listen objectively to the results of customer experimentation.

What does that mean? A benefit of a strong purpose is that it simplifies decision-making. However, at its extreme, this approach can lead to less flexible thinking, leaving organizations a little less likely to truly hear what a stakeholder or customer is telling them.

Does this mean you should crumple up your purpose statement and toss it in the trash? No, not at all. Purpose is fundamental to innovation: It energizes employees, speeds up decision-making, and leads to more productive collaboration. But beware the line where purpose turns into dogma and diminishes your team’s ability to truly listen to customers and interpret data.

3. Move fast—but not too fast

With the rise of lean startups, companies are feeling the pressure to get moving. But getting started without a plan and a clear idea of your objectives can end up being a drain on resources.

What’s the cost? First, skipping the steps of getting to know your customer and market causes teams to fail 180% more often. Also, organizations that evaluate multiple ways to solve a problem are much more likely to succeed—more than 42% more likely—and, on average, get to market faster.

We’ve seen two significant reasons for this: First, testing multiple ideas in parallel keeps the team’s mind flexible; and second, customers involved in research and testing during development provide more useful feedback when they are presented with multiple ideas.

If your guess is right from the start, great—you've saved a lot of time. But many startup or venture teams don’t have the right idea at the start. Teams that spend the time getting to know their customer early, then testing multiple ideas can take months off of the overall duration of their initiative.

4. Don’t underestimate the power of culture

When you're working to solve complicated problems, it’s natural to rely on process. Process feels tangible, comfortable. Nail that "innovation formula," and success will come.

But process isn’t—and can’t be—everything. Sure, certain methods are helpful for testing assumptions and getting to the right ideas, but it’s people—their spirit, their judgment, and their energy—that ultimately lead to the development of great ideas.

Organizations whose employees consistently state that they understand how to drive ideas forward and feel that they're making significant strides toward their organization’s goals are 16% more likely to have a successful launch.

One of the qualities we’ve measured is whether an organization’s team members describe their culture positively. Do they see their interactions with those in other organizational functions as productive and supportive? The teams who score each other in the top 5% are 30% less likely to fail than those under the 50th percentile.

Methodology and approach matter, but lean too hard on just those elements while neglecting culture and people will quickly lose their passion and energy, and resort to a paint-by-numbers approach that yields unspectacular results.

Countless more insights like these have yet to be uncovered, but one thing is already clear: Innovation leaders can’t fall back into old, stagnant patterns, but instead must continually find new edges for their teams to push.

Illustrations by Beena Mistry

Creative solutions don’t happen by accident. They aren’t enacted by lone geniuses—they come from diverse teams that work well together and optimize the right methods and behaviors.


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4 common missteps on the road to innovation, innovation, how do we innovate

Thoughtless Acts: The Commuter Shuffle

Thoughtless Acts: The Commuter Shuffle. The intuitive ways we adapt and react to things in our environments

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I’m grateful for Chicago’s trains—even amid the crush of people jammed into the morning’s rush hour commute and the thought-clouding clatter and clank that pervades every metal car. It’s a marvel that these hulking workhorses of public transport coordinate at all, and are generally safe, on time, and comfortable. And yet I often notice fellow train-goers challenged, like myself, by something basic: What do we do with our stuff? In my time as a commuter, I’ve seen myriad workarounds. Legs became walls propping up clothes and bags; thighs became resting ports for big headphones. And then there was the man who transformed his suitcase handle into a coat rack. Human ingenuity: It’s one more thing I’m grateful for during my commute.

Human-centered design requires us to observe human behavior with beginner's eyes, so that we can spot the innate ways people interact with the world around them. We call these intuitive and unconscious reactions Thoughtless Acts, and IDEO designers collect photos of them to inspire their work.

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thoughtless acts the commuter shuffle, thoughtless acts, the commuter shuffle, human centered design, design thinking, photography, visual design

Lindsey Turner

I’m passionate about building brands, products, and experiences that help organizations show up with meaning and momentum.

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Leader
Leaders

I help organizations cut through complexity by shaping how they show up, through brand strategy, identity, and storytelling.

Working at the intersection of brand and business, I bring an editorial eye and a bias toward making—turning ideas into tangible experiences that people can understand, trust, and believe in.

My work spans government, healthcare, financial services, media, and consumer goods, from launching Gen Z-focused ventures to building innovation labs and reimagining legacy brands. I relish moments of ambiguity and enjoy translating across teams, perspectives, and priorities to move ideas forward.

I started my career in editorial and digital design, shaping cross-platform experiences and identity systems in publishing and agency environments. That foundation still shapes how I work today: I’m detail-oriented, collaborative, and overreliant on the Oxford comma. I hold a BFA in Visual Communication from the School of the Art Institute of Chicago.

My tween twins teach me more about technology and gen-alpha than the last decade of trend reports.
Making things that matter
Consumer Products & Retail
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AI & Emerging Tech

Rachel Young

My work helps organizations see who their products aren't working for—and build the will and the tools to do something about it

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For 25 years, I've asked the same question: Who does this design exclude—and what are we going to do about it?

My work spans human-centered strategy, inclusive design, and qualitative research, with clients ranging from Microsoft, Google, and Verizon to the National Science Foundation, and San Francisco Unified School District.

Before IDEO, I taught elementary school in East Palo Alto and spent a decade doing design work with social service organizations—where I learned firsthand what it costs people when systems are built without them in mind.

I am currently writing User Error, a nonfiction book about digital access and the design decisions behind it. I live in Oakland, California.

The greatest project to which I’ve ever contributed is raising my two daughters with my husband.
Uncovering unmet needs
Consumer Products & Retail
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Brian Pelsoh

I lead with craft, ensuring our work is creatively excellent: rooted in deep human insight and imagination, while also grounded in the realities of business and technology.

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My expertise spans brand, communication, and product design across tech, education, the arts, and social impact.

I believe great work demands both high-level vision and obsessive attention to detail, and only happens through collaboration.

I bring an inclusive, hands-on approach and a deep understanding of business, which enables me to consistently deliver excellence while always asking why.

Before joining IDEO, I worked at the brand firms Pentagram and VSA Partners. I began my career as a designer, leading teams at the School of the Art Institute of Chicago and the Milwaukee Art Museum. I hold an MFA in graphic design from Maryland Institute College of Art and a BFA in communication design from the Milwaukee Institute of Art & Design, and have taught at some of the best design schools in the US.

I love a good crit.
An inclusive, hands-on approach
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Tony Wong

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth.

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I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth. Specifically, I have helped Chinese companies design holistic brand solutions through the development of their products, communication, services, and innovation teams, and I have helped multinationals expand their presence and influence in China.

I advise global leaders on developing China-led innovation and capabilities.

In over 15 years in IDEO Shanghai, I have worked on projects that use design to elevate the quality of the experience of healthcare products and services, streamline processes that increase productivity, create spaces and programs that promote and enable inclusive communities, and build next generation mobility solutions that are planet-positive.

Before joining IDEO, I worked at Philips Electronics and the Electrolux Group in Italy, the Netherlands, and Singapore on a number of breakthrough commercial products. I am a member of the Young President Organization in Shanghai.

I have a thing for antique maps.
Developing China-led innovation and capabilities'
Consumer Products & Retail
Food
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Episode image

Building a personal AI for the messiness of life: Sida Li

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Most AI products today are built for work—a space with clear problems and established systems. One founder noticed a gap: personal life is messier, harder to systematize, and mostly left behind by the AI boom. So she built Cue, a personal AI that lives inside iMessage and group chats, to go where the other tools haven't.

In this episode, Becca Carroll, IDEO's Chief Strategy Officer, talks with Sida Li, co-founder and CEO of Shared Context Lab, about staying anchored to a human need while the technology around her keeps changing shape, why she treats her business model with the same rigor she'd bring to a product, and what it feels like to build a company at this particular, disorienting moment in AI.

The conversation also gets into how Sida makes design decisions: the language Cue uses to describe itself, the tradeoffs behind building inside iMessage instead of a new app, and a real story about a business idea that didn’t pan out.

This is the second in a two-part series profiling founders from IDEO's Startups-in-Residence program. The first conversation is with Johannes Seemann, founder of Sooner, on designing GenAI for the emotional side of money.

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Episode image

Designing GenAI for the emotional side of money: Johannes Seemann

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Most personal financial tools are built to run the numbers and optimize towards a budget. While that works for some, most people experience money as a lived relationship that does not neatly fit into a spreadsheet. Johannes Seemann and Becca Carroll discuss why money is emotional before it is mathematical, and what a human-centered approach to building a generative AI financial product looks like in practice.

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Financial Services
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The curious leader's edge in uncertainty: Scott Shigeoka

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Mina Seetharaman talks with Scott Shigeoka, author of Seek and Head of Curiosity Cultivation at the Eames Institute, about what distinguishes genuinely curious leadership from performative curiosity, how power dynamics shape curiosity, and why practicing curiosity can restore energy rather than drain it.

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How constraints make us more creative: David Epstein

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Mina Seetharaman talks with David Epstein, author of Inside the Box and Range, about why total freedom often produces average work, how leaders can design useful limits on purpose, and what organizations such as General Magic and Pixar reveal about the relationship between boundaries and creativity.

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