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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
Case Studies
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

How One Designer Learned to Love Constraints

Getting nap-trapped by a newborn will do that to you

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Article
Articles

It turns out there’s a strong correlation between social media use and nap entrapment. Personally, I found my Instagram use skyrocketed during the first four months of my then-newborn’s life. And during the entrapment days, two Instagram accounts really stood out from the rest. The first was the actor/rapper Will Smith’s energetic, curious, family-friendly account. His posts are a mix of throwback photos featuring Jeff Goldblum, comparisons of his baby pictures to Rhianna, and vintage videos of wife Jada mouthing off to Eazy-E about feminism.

The second belonged to the musician and artist Patti Smith. Her account is poetic, reflective, and sincere. Its posts range from a meditation on the morning light playing upon her “thinking chair,” to fanning out hard over Law and Order: Criminal Intent.

Perhaps it was the sleep deprivation. Or maybe it was a hankering to fit some synthesis—the IDEO designer's process of creating a cohesive narrative from a sea of nuanced human stories—into my maternity leave. But I grew intrigued by their common last name.

Thus came constraint number two: Could one create a captive, compelling Insta feed, one that guides the viewer on an engaging, winding, whimsical journey, featuring only Smiths? What story would come out of weaving multiple online personalities together? It was synthesis, but with other people’s lives.

To make things really interesting, I added two more Smith feeds. Kevin, one of the masterminds behind films like Clerks and Dogma, balances goofball humor with poignant reflections on life and health. Singer Sam, the fourth and final Smith, is a modern day crooner who keeps his posts pithy and punchy.

Together, the four Smith feeds created balance in a random sort of harmony. Squinting from just the right angle, I was surprised to find common threads in their posts. Stills from Sam’s iconographic performance stages flowed seamlessly into Patti’s gently-lit trip to La Recoleta cemetery. Kevin’s collection of Weebles set up Sam’s visit to a trinket-ridden open air market, before handing off to Will’s portrait of an eclectic man’s fashion in Tybee Island, GA.

With nothing more than a ubiquitous last name and fame connecting these four, gestural themes emerged. Parenthood, childhood, dental hygiene, activism, Rhianna.

These are more than Smith themes. These are modern human themes. But Instagram’s real-time format muddied this story. I wondered if there was a way to create a thematic flow—one long, chaptered story—rather than a chronological one. The solution lied in a third, and final, constraint: a fixed feed. One in service of a single story in time, rather than a constantly evolving one.

And so, Selected_Smiths was born. A static Instagram narrative, comprised of snaps from all four instagram feeds. The final edit was made on July 22, 2018. 59 posts total, culled from the original Smiths’ feeds. Best viewed from bottom to top and with 30 minutes to spare, so as to read all comments and hashtags.

What started as a nap-trapped experiment turned into a lesson on the power of constraint. Selected_Smiths was born of three constraints: one situational, one coincidental, and one editorial. If Selected_Smiths is the steel ball, then these constraints were the bumpers in the pinball machine of my mind. Launched with gusto, frantically bouncing past flashing lights and through sound fields, the bumpers present a barrier, ricocheting the ball to loss or victory. Constraint demands perseverance, triggers ingenuity, and every once in awhile helps you execute on a weird idea.

Like creating one story with four people who share the same last name. Funny, serious, flip, human—the internet really does it all.

Nap-trapped (noun): When an infant falls asleep on a person in such a way that they are rendered immobile. As in: On maternity leave, I often found myself nap-trapped in a position that demanded complete stillness of all extremities… apart from my right arm. This constraint inspired a somewhat esoteric design research experiment that I took on—sometimes literally—with one hand tied behind my back.

No items found.
how one designer learned to love constraints, user research, research, experimentation, testing new ideas, creativity, creative confidence

Don’t Throw Away Your Innovation Budget

How to avoid the common missteps that kill good ideas

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Article
Articles

This lack of contextual thinking and foresight is why so many innovation investments fail—it’s not for lack of ingenuity, but because companies build innovation teams, then neglect to design a complete ecosystem to take promising ideas forward.

Here are the three most common traps that cause even the smartest business leaders to throw their innovation money away:

1. The Outcome Trap — If you don’t define a clear vision for how innovation is supposed to contribute to your company’s growth, don’t be surprised when innovation teams fail to make a contribution.

2. The Incentive Trap — No one wants to play Russian roulette with their career. If you don’t incentivize business units to make the right mix of bets, they’ll have no reason to invest in anything other than short term sure things.

3. The Metrics Trap — Success isn’t subjective. If you don’t create innovation metrics that the rest of the organization can understand, the rest of the business may view innovation as frivolous.

The Outcome Trap

About 10 years ago, a parcel courier (one of those companies that brings cardboard boxes to your door) built an innovation unit to help power their future. Senior executives had held inspiring conversations and decided that “innovation” would build the future of their company, so they built a new team and recruited a former startup guy to run it. Everyone had high hopes for the team’s success.

What happened next? The startup guy built them a startup. The team found some cool technology and a strong customer need. They used that to build, launch, and sell a profitable new solution to a small but growing pool of customers.

Was it a success? Well, only to some stakeholders. When the team began to share their results, they faced surprisingly hostile reception: One senior executive wanted to know when the innovation division was going to yield strategic insights for the core company. Another asked when it would start developing new technologies for the core business. A third wondered when it would train her teams in innovation. Despite some wins in the market, few stakeholders were happy with the results. Within 18 months of their launch, they were disbanded.

This company fell into a surprisingly common trap: Everyone thought that “innovation” was important, but nobody ever talked about why they wanted it. It was like the execs had asked a waiter for ice cream and then got upset when their server showed up with Rum Raisin.

So, how can you avoid the Outcome Trap?

Work backwards. First, define why innovation is important and why now. Once you define the outcomes needed from innovation, you can craft a portfolio of projects designed to meet those goals. That portfolio then suggests the talent, skills, and even the number of people or teams you’ll need to drive innovation. When we break them down, successful innovation portfolios consist of a mix of four activities.

In the graphic below, we’ve plotted businesses and teams based on our evaluation of their primary objective (even though many of these teams invest in more than one quadrant).

As shown in the above graphic, Discover teams focus on uncovering new insights or opportunities that could be developed into new businesses or offers. This long-term innovation work includes the efforts of R&D labs focused on emerging technology. Those in the Invest quadrant develop, launch, or acquire new businesses in the short term. This includes the work of M&A teams, accelerators, incubators, and corporate venture capital. Define teams initiate tangible strategic visions for how existing business units may need to evolve to succeed in the future, and reveal opportunities for how current offers can adapt to changing customer demands or new technologies. And lastly, Evolve teams differ in that they partner with existing business units to adapt to a changing environment—develop new offers, approaches, and skills to improve the business in the near- to mid-term. This includes the services offered by SWAT teams, internal agencies, and coaches.

By intentionally balancing the portfolio—say, by focusing sharply on incubating new digital ventures and adapting current offers—the innovation team can define their projects, align their stakeholders, and allocate their staff.

The above graphic highlights the shape of a lab portfolio at a successful retail conglomerate—80% of their efforts are focused on either evolving the current subsidiaries or helping those subsidiaries invest in new digital ventures. The remaining 20% of their effort goes into defining future strategy and discovering new tech to harness.


To avoid this trap, ask yourself: Why innovation, and why now? What does success look like? What’s the future vision for our company, and how should innovation contribute to that? Where are we facing the biggest market threats—in the short term or the long term? Will innovation provide services to core business units or will it build new subsidiaries? Your innovation portfolio and your teams will naturally evolve over time, but you can control that evolution by intentionally defining the purpose of the team and the outcomes that they need to deliver.

The Incentive Trap

Once you’ve defined the ideal innovation portfolio, you need to find the right sponsors willing to make the right bets on the right projects. The best strategy is doomed if no one has any incentive to make good bets. That’s the Incentive Trap.

Several years ago, a global home appliances company created a Lifestyle Research Lab to design new products that address consumers’ changing attitudes and behaviors. In isolation, the team conducted their own research and used it to develop new ideas that could transform their white goods businesses—creating radically new dishwashers, refrigerators, or washing machines. When they hit on a juicy idea, they would then try to sell it to a business unit for development.

Now, imagine yourself leading one of those businesses: One day, out of the blue, someone you’ve never met pitches you on a new product. Based on some research you’ve never seen and some shiny concept sketches, this team insists that you should change up your five-year product development roadmap. You didn’t ask for this idea, you didn’t pay for this work, and their analysis doesn’t match up with the numbers that you normally track. Your budget, your people, and your manufacturing are already committed. Even if you love their idea, you’d need to do a lot of heavy lifting to justify changing your plans. Few executives at the appliance company were willing to do that work.

Looking at the innovation portfolio and the purpose that’s been defined, what kind of bets should business units to make?

In a completely rational world, a decision between investing on a sure thing or a smart bet should be a toss up. However, to many executives, investing in riskier projects can feel like career Russian roulette. In your own company, how much of a balance do you have between sure things and smart bets?

To create a more balanced mix of bets, many companies fund innovation from some central, corporate pool. This promotes riskier bets—it’s always easier to gamble someone else’s money. But there’s a catch: when the business units pay too little for innovation, they don’t value the work. Business leaders can see this kind of innovation as a sideshow. When the going gets tough, and those business leaders need to improve their metrics, they will kill any innovation projects that aren’t yet proven.

So, what happens when a business unit pays the tab? Although leaders are more invested in the outcomes (literally and figuratively), their demand for innovation is far lower. When betting their own money, most people prefer sure things—even when the expected returns are the same, they choose an option that’s easier to predict. So, how do you promote riskier bets? With corporate funds. We often see these corporate subsidies falling into three tiers. This model isn’t just true for how business units spend their money, it’s also true for how they assign their best people. They aren’t likely to put their best people on their riskiest projects.

The above graphic illustrates that as you define your portfolio, you’ll also need to define a funding mix for the work that incentivizes the right bets. The incentives tend to fall into three tiers: Tier 1 investments feel more like sure things; tier 2 investments feel a little riskier, but still appealing; tier 3 investments feel too risky to make without senior executive support.


To avoid this trap, ask yourself: Looking at your ideal portfolio, what is a healthy mix between sure things and smart bets? How adventurous are your business units, and how much do you need to incentivize their investments? The more corporate pays, the more risk business units will take on.

The Metrics Trap

Once you make your bets, how do you know if they’re paying off? If innovation isn’t seen to create measurable value, it’s worthless. That’s the Metrics Trap.

One sneaky reason that so many companies throw away good money on bad innovation efforts is that innovation may take years to show impact on metrics that the business units typically track, like revenue, profit, lifetime value, or customer satisfaction. But that doesn’t mean that innovation teams can’t show value in the short term. By setting simple baselines, teams can measure progress over time, showing that their work improves outcomes, drives efficiency, or changes behavior. These progress measures demonstrate indisputable value, and can often satisfy skeptical stakeholders in the short term—until innovation’s portfolio of work hits the market and begins to generate real growth.

To properly measure both the productivity of individual projects and the performance of the overall investment strategy, many innovation units build a basket of metrics that they can track in various timescales, as captured in the diagram above.

One global financial services company has taken some smart steps to avoid the Metrics Trap. They built a Fintech Incubator to develop new digital offers on behalf of the bank’s business units. Before the Incubator will take on a project, a sponsoring business unit must make a business case for the product, put up a majority of the development costs, and define a series of success criteria for further investment. This aligns the innovation process with the business unit’s needs. On top of those project metrics, the incubator’s leaders also track a set of progress metrics across all of their work. These measures demonstrate how, over time, the incubator is moving down the cost curve. They’ve used progress measures as an argument for how the core business should rethink the way that they build and test new concepts.


To avoid this trap, ask yourself: Once you make your bets, what metrics will you use to calculate whether they’re paying off? What does your business value? What will you measure in various timescales to demonstrate the success of your projects, your progress, and your portfolio?

These aren’t the only innovation traps, but they are the deadliest. Innovation should not be a game of Russian roulette. By carefully considering and designing solutions to each trap, you can get that much closer to crafting an investment portfolio and innovation ecosystem that can nurture the future of your company.

Visuals by Gracia Lam.

With threats looming from every direction, it can be tempting to make precautionary investments in innovation. All too often, though, companies bet on new projects without thinking through how they will integrate with current offers and teams. That's like running a water main up to your house, then not connecting it to your plumbing. Yes, you’ll have water, but you won’t be able to channel it toward anything useful.

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don't throw away your innovation budget, innovation, water, sanitation, how do we innovate

Why Everyone at the Office Should Care About Workplace Culture

Culture is more than snacks and perks—it impacts the bottom line

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The office is an important place, and it’s one we believe should be designed with care. Culture matters—that means everything from the physical space to the values a company shares with new hires on their very first day.

Part of workplace culture is fun watercooler talk and good snacks, but it’s much more than that too. Solid culture lays the groundwork for the lightbulb moments that happen when people feel truly comfortable at work.

Good news: You don’t have to be an office manager to concern yourself with company culture. If you’re interested in building a positive, supportive office experience, check out the advice below from the Octopus archives.

1. When you’re curious about the folks that design the place where you work

How does a company agree on its values? What do truly authentic rituals look like? And how does that translate to business value? Follow one of IDEO New York’s organizational designers through a day to see what org design looks like in practice. (For more on what org designers do, read another piece from Mollie and her colleague, Mat Chow.)

READ: What Org Design Actually Looks Like

2. When you’re trying to convince your colleagues or your boss that culture matters

IDEO Chicago’s Annette Ferrera acknowledges that in some conversations, “culture” can mean “cool perks.” But culture is so much more than that: “It’s about creating an environment that makes it possible for people to work together to come up with innovative products and ideas—the same products and ideas that drive revenue.” Annette’s tips are both a blueprint for enacting your own cultural change and proof that a solid company culture can boost the bottom line.

READ: Why Workplace Culture Matters (And How to Build a Good One)

3. When you’re not quite ready to tackle that big project, but you want to make a small change

Designer, author, and IDEO alum Ingrid Fetell Lee runs Aesthetics of Joy, a blog about discovering joy in everyday life. If you’re not ready to tackle culture at an organizational level, use these bite-sized tips—like adding a plant to your desk—to create more joyful moments throughout the workplace.

READ: 6 Ways to Hack Your Workspace and Find More Joy at Work

4. When you’re not sure how you’re “supposed to feel” at the office

American work culture tells us we shouldn’t feel, fail, or fuss in our place of business, but org designer Mollie West Duffy doesn’t agree—in fact, there’s evidence that a little emotion at work can actually help us connect with our colleagues and feel more confident in our work. Learn more about “emotional culture” (and the book Mollie co-wrote on the subject) in this Q&A.

READ: Turns Out Emotions Do Belong in the Workplace—Here’s Why

According to a survey, the average person spends 13 years and 2 months—that’s 4,821 days—of his or her life at work. For comparison, the survey says we spend 1,583 days eating and 1,146 days on vacation. The only place we spend more time than the office? Our beds (12,045 days, or 33-plus years—thank goodness).

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why everyone at the office should care about workplace culture, workplace design, employee experience, future of work

Serverless Computing: the Instapot of Digital Problem Solving

How this technology is like making chili—sort of

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At these conferences, attendees are split up into group sessions: some big, some small, some on specific topics, and some designed to create new connections. Though grouping folks together might seem like a straightforward task, there is actually a dizzying number of ways to put people together—for one recent conference, the number in the neighborhood of 14 duodecillion possible combinations. That’s 1.4 x 10 to the 40th, which is close to the number you would get if you were to multiply the number of grains of sand on Earth by the number of stars in the universe.

Fortunately, for data scientists, sifting through haystacks to find needles is our bread and butter. We looked at this dataset with one goal: to create groups of individuals that foster conversations and catalyze new cross-disciplinary research. Easy, right?

We built an optimization algorithm that scores combinations of people based on diversity, trying to create well-mixed groups. To make sure we had truly excellent combinations, we needed to run the algorithm more than 1,000 times, after which a human had to examine the top scoring combinations. A human ultimately judging the top few options is crucial to making sure we incorporate nuances that the algorithm does not get. But at more than four minutes per algorithm run, it took an average of three days to get results. Three days! Three days between prototypes wasn’t going to cut it.

To solve our time problem, we turned to serverless computing. While we typically use it to deploy microservices, we couldn’t resist using it to massively scale our computational ability on the cheap. After all, we love hacking and repurposing things for atypical use cases, and digital tools are no different.

In a way, putting these groups together is like making chili—there are many different ways to make it, and all are valid (and many are tasty!). But to have a truly great chili, it’s essential that the ingredients are balanced and cooked properly to produce a dish that is elevated beyond the sum of its parts.

No humans were harmed in the making of this metaphor.

Think of each set of groups produced by the algorithm as a chili recipe. In the spirit of experimentation, you start putting together recipes that vary randomly in terms of ingredient amounts and cooking procedure. You’ve written down 1,000 recipes, and you’re going to cook and score them to find your ideal chili.

After a day of chopping, sautéing simmering, and tasting, you’ve only made 10 batches of chili. That's great, but in the grand scheme of things, that's nothing. So you think of ways you could cook and test your recipes more quickly. The most basic way is to make your cooking process (or code for your algorithm) more efficient: Chop faster and keep ingredients nearby. But this yields only a marginal gain. You would only crank out one or two more batches a day.

To really speed things up, you’re going to need some help. You could rent space in an industrial kitchen and hire chefs (servers on the cloud) who take a recipe, follow it exactly, and deliver the finished product to you. The downside: It takes a non-trivial amount of time and money to recruit and train chefs (much like setting up servers with the algorithm code).

But what if you had an army of 100 food trucks that are fully stocked, equipped, and happy to help you? That’s the equivalent of our serverless computing service. Serverless computing allows us to simply upload and then execute our algorithm code on cloud servers, taking away the hassle of setting up machines and allowing us to scale to hundreds or thousands of simultaneous runs effortlessly.

Food truck army: go forth and chili.

By using serverless tech, analyzing Scialog results goes from a process that runs in about three days to one that takes less than 10 minutes. With pricing schemes that only charge for the time the servers are being used, we can complete our thousand runs for less than $5.

This is great news, because it allows us to prototype our algorithms at scale much faster. What if, after looking at the results, we realize our scoring is missing a specific kind of input, like the balance of cat people vs. dog people? Previously that would necessitate another three-day wait for results. Now, we can tweak our algorithm, upload the new code, grab a cup of coffee (or chili), and come back to analyze the results.

Serverless computing is worth adding to your toolbox—or recipe box.

We love the creative freedom that serverless computing enables (the ability to iterate on prototypes), and especially being able to get tons of computing power on demand—and cheaply.

If you’re interested in doing something similar, we’ve had great experiences using Zappa to deploy to AWS Lambda, but you can do the same kinds of things with other serverless services like Google Cloud Functions and Microsoft Azure Functions.

Now go forth and prototype at scale. And if you get hungry, you know what to do.

For almost 10 years, the Research Corporation for Science Advancement—or RSCA—has tapped IDEO for a little data science help. It's a good match, because RCSA shares our enthusiasm for helping people meet and collaborate. Every spring and fall, they organize conferences called Scialogs that bring together scientists of different disciplines to converse on important topics and inspire further collaboration through grants.

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serverless computing the instapot of digital problem solving, serverless computing, the instapot of digital problem solving, technology, digital innovation, team collaboration

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
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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.
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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.
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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.
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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'
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How to use AI as an editor, not a writer

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Ed White shares how he uses AI as an editor—not a writer—to sharpen storytelling, rehearse ideas, and preserve the productive friction that makes creative work better.

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Ed White has a rule he's tested on his own writing: hold yourself as the writer, and let AI be your editor. Ed is a Senior Design Director at IDEO's London studio, where he co-leads the firm's AI portfolio across Europe. Before IDEO, he spent 12 years as a writer and editor at the Financial Times, Wired, and Contagious. So when he talks about when to use AI for storytelling and when not to, it comes from two decades of crafting his storytelling skills.

In this episode, Mina Seetharaman talks with Ed about two specific tools he uses to keep AI in an editor's seat: a "roasting agent" prompted to critique his drafts without any sugarcoating, and a simulated audience he rehearses pitches on before the real thing. They also get into what Ed is hearing from design leaders at Anthropic, Lovable, Shopify, and Google Creative Lab about how creative work is changing, and why he thinks the friction of writing something yourself is worth protecting rather than automating away.

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

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Becca Carroll talks with Cue co-founder Sida Li about designing a personal AI for the messiness of everyday life—not just work. They explore how Sida stays anchored to human needs while navigating fast-changing technology, product tradeoffs, business-model experimentation, and the realities of building an AI company today.

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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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Designing GenAI for the emotional side of money: Johannes Seemann

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Designing financial tools around the feelings that shape money decisions.

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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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The curious leader's edge in uncertainty: Scott Shigeoka

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How genuine curiosity helps leaders navigate uncertainty with greater confidence.

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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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