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Kickstarting Europe’s biggest smart energy company

Strategies to bring a new product to market.

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Strategic Futures
Breakthrough Products
Consumer Products & Retail
Technology

Have you ever had that gnawing feeling, just as you’re sitting down to your computer at work, that you’ve left the central heating on at home? You’re not alone. Rising concern about wasted energy and the financial cost of unregulated thermostats, as well as the convenience of a connected and cozy home, all point to the rise of the smart thermostat. Berg Insights projects it’ll grow 64.7 percent over the next five years.

Founded in Munich in 2011, tado° is Europe’s biggest maker of smart thermostats and air-conditioning controls. Looking to grow, tado° approached IDEO, a longtime collaborator, with a late-stage prototype for a new, wall-mounted gadget to connect any air-conditioning unit to the web so it could be controlled remotely through a smartphone app.

Dubbed tado° Cooling, the device recognizes when people leave their house and heats or cools the house upon their return. The brand tasked IDEO with a three-fold goal: gauge interest in the device, raise brand awareness, and work out product/market fit.

Owners can monitor and control their A/C via tado°'s smartphone app.

After stakeholder interviews, research, and prototyping, IDEO supported tado°’s team in refreshing the industrial design of the hardware and creating a distinctive yet unified user-interface language for the brand’s existing and future products.

To work out what potential customers thought of tado° Cooling, tado° turned to a novel research medium: Kickstarter. Its ultimate goal? Knowing whether people would part with their money for one. The IDEO team provided an overarching crowdfunding strategy, including funding goals, giving tiers, and marketing, and shot the brand’s Kickstarter campaign video.

As a result, the campaign burst through its $150,000 funding goal to $200,000, and scored coverage in a raft of tech media outlets including TechCrunch, GigaOm, TheNextWeb, Engadget, and PC Magazine. After hitting its “stretch goal,” tado° is adding non-A/C device controls, a Windows Phone app, and IFTTT and Jawbone Up integration.

In addition to media coverage, and showing the public’s appetite for the device, the Kickstarter community’s conversation unearthed further user insights that fed into product development, according to tado° head of design, Jens Pohl.

Buoyed by that success, tado° enlisted IDEO to translate user insights and a big-picture overview of the connected home sector into new services to enhance the device’s UX, and introduced new business models to strengthen its European brand strategy. Early visual concepts, learnings, and evidence from this exploration supported the brand’s investor pitch, securing a further round of $15 million venture capital.

TADO°
TADO°
Kickstarting Europe’s biggest smart energy company, TADO°, consumer products, retail, consumer experience, retail innovation, technology innovation, digital products, product design, industrial design, new product development, innovation, strategy, brand strategy, research, prototyping, product development

Invigorating a pharmaceutical company’s culture

How four simple words helped a global company activate its purpose.

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Health
Consumer Products & Retail

Dr. Reddy’s, a 36-year-old global pharmaceutical company headquartered in India, was growing at a rapid pace. Over the years, the company’s main focus had been on producing affordable generic medication. But with more than 24,000 employees and seven distinct business units operating in 100 countries, there was an urgent need to identify a core, unifying purpose—one that would articulate a set of shared values and align leaders on key business decisions and goals.

G.V. Prasad, the company’s Co-Chairman and Managing Director, knew that the vision had to be simple and elegant–an emotional drive that every employee across the company could relate to and act upon.

Prasad partnered with IDEO to distill the focus that would align the company. Over the course of several months, Dr. Reddy’s team worked with IDEO to learn about the needs of everyone, from shop floor workers to scientists, external partners and investors. Together, they defined and distilled the essence of the company, paring it down to four simple words that center on the patient: Good health can’t wait.

The simplicity of these words belie their power. According to Prasad, the newly articulated purpose has resonated across the company, changing the whole culture of the organization. The idea of infusing a sense of urgency and nimbleness to their systems as a means of serving their customers has had a direct application in almost every corner of the business. Employees connect the message to their own experience, and each of the different business units are now moving towards a common goal.

Every employee is driven by the mission to accelerate the delivery of good health.

A Shift Inside

“Good health can’t wait” has become a powerful recruitment tool and employee rallying cry. It makes clear that the company is in the business of serving patients, not just creating products, no matter how innovative or affordable. This has given a new sense of meaning to all personnel, from frontline sales representatives to senior leaders to scientists. Many key decision-makers, including new CEO Erez Israeli, share that the purpose statement inspired them to join the company.

Articulating Dr. Reddy’s purpose has empowered these employees to take risks, experiment, and work together. For example, the marketing department has refocused its efforts on finding solutions that improve patients’ consistent use of their medications. And motivated by the idea that patients can no longer wait for a cure, employees from different disciplines are coming together to find inventive ways of bringing new products to market in record time.

“The website medznat.ru required immense collaboration between various teams—medical, information technology, marketing, and analytics,” says Mvsma Raja, Head of Strategy and Marketing for Emerging Markets. “This served as a platform to bring the latest happenings in the area of pain management to doctors in Russia, who we learned are looking for the latest medical updates on the go.” Building on this cross-functional collaboration and momentum, Dr. Reddy’s established an internal design studio dedicated to using consumer insights and rapid prototyping to drive innovation.

New Offerings

“Our brand belief has inspired how we’ve thought about our future growth,” says CEO Erez Israeli. The new purpose unlocked a series of initiatives, including the aforementioned website for Russian physicians and innovative pill packaging that helps patients better understand their instructions.

Purple Pack is a new type of pill package that ensures that vital information like the expiration date is not torn off and thrown away. Born out of Dr. Reddy’s in-house design studio, Purple Pack allows the pharmacist or patient to mark their daily dosage and reminders on the packaging itself, as paper prescriptions are often misplaced.

A Business Boost

“Good health can’t wait” has not only attracted and unified talent and inspired new offerings, it’s boosted both sales and profit. For example, Dr. Reddy’s generic oral diabetes medication, Metsmall, has become the fourth largest brand in India based on the number of pills sold. The medication is distinct from competitors’ versions in that the pill is smaller and easier to swallow—a clear embodiment of product development oriented around the patient. With its signature Purple Pack convenience packaging, the medication has been one of the fast-growing Indian pharmaceutical brands over the last two years.

Looking ahead, both Prasad and Israeli hope to continue building a purpose-led culture that influences the business from the inside out, inspiring employees to be empathetic and responsive and realizing its mission to deliver good health to all.

Dr. Reddy's Laboratories
Dr. Reddy's Laboratories
Invigorating a pharmaceutical company’s culture, diabetes care, diabetes management, Dr. Reddy's Laboratories, healthcare, health innovation, patient experience, consumer products, retail, consumer experience, retail innovation, innovation, strategy, consumer insights, prototyping, rapid prototyping, product development, team collaboration

Creating a social enterprise to bring learning into the real world

Designing for youth, with a focus on learning as a lifestyle.

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In 2006, the MacArthur Foundation made what became a big bet about the future of education, shifting its attention away from the traditional school-based model of reform toward a more youth-centered approach.

By 2014, the bet was starting to pay off, but for it to really succeed, it needed an innovative path to scale and an entrepreneurial approach to sustainability. That’s when MacArthur came to IDEO for help in designing a new organization.

Together, IDEO and MacArthur set out to transform the foundation’s efforts into a self-sustaining enterprise that could balance the social responsibilities of a nonprofit with the lasting viability of a business—an opportunity that was as much about designing a new infrastructure as it was about creating a new culture.

LRNG's approach combines in-school, out-of-school, work-based, and online learning opportunities that are accessible to all.

Using a novel prototyping process, IDEO created three illustrated scenarios to tell different versions of LRNG’s possible future, each with an alternative portraiture of its purpose, vision, operating structure, product portfolio, and business model. Through a playful, modular storytelling structure, the stakeholders considered the potential trade-offs of the different approaches and how to prioritize their organizational goals with clear definitions of success.

These different future-forward scenarios helped funders and partners grasp a radical organizational vision, as well as a clear operational model that was go-to-market-ready.

In October 2015, the MacArthur Foundation launched Collective Shift, the organization behind LRNG, with $25 million in seed funding and 30 partners, including Arizona State University, Gap Foundation, the Boys & Girls Clubs, Electronic Arts, and musical artist John Legend.

Based on the scenarios created by IDEO, LRNG is dedicated to creating a “learning as a lifestyle” movement that will transform the learning landscape and close the equity and opportunity gap for young people.

Three illustrated scenarios paint different versions of LRNG’s possible future, each with an alternative view of purpose, vision, operating structure, product portfolio, and business model.
Archetypal comic book characters helped stakeholders understand the many possible roles the new enterprise could embody in the learning landscape.
MacArthur Foundation
MacArthur Foundation
Creating a social enterprise to bring learning into the real world, MacArthur Foundation, climate innovation, sustainability, education innovation, student experience, future of education, design for children, family experience, youth experience, innovation, prototyping, transformation, education, learning

Designing for smarter mobility

Helping Ford evolve from an automaker to a mobility provider.

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Mobility
AI & Emerging Tech
Technology

Hundreds of millions of people, from excitable teens driving their first hatchback, to new parents going in for a minivan, have driven Fords off lots around the world since the first Ford Model A was produced in 1903. And cars have changed how we shop, travel, and work; they’ve reshaped our homes, towns, and the world’s infrastructure.

Today, Ford, along with the entire industry, is at an inflection point. As millions around the world move into gridlocked, polluted cities, the allure of owning a shiny new car has dulled. In some places, young people are driving less, and getting their licenses later or not at all. Lightening their load, city dwellers are relying on ride-sharing services and other alternatives to individual ownership.

Modified Raspberry Pi computers captured and transmitted telematic data from a fleet of Ford Fiestas in London.

Technology underpins that shift from ownership to usership. Smartphones, sensors, and open data have enabled new ways of getting from point A to B: from car-sharing services like Zipcar to taxi services like Uber or clever transport apps like Citymapper that help people skip effortlessly between the bus, a shared bike scheme, and renting a car.

While the owner of the very first commercially available Model A—Chicagoan dentist, Ernest Pfennig—couldn’t see more than a century ago how cars would change the world, Ford is squinting into its future by prototyping it now. Building on a longstanding relationship with IDEO, the carmaker approached us, along with a number of other partners, to undertake two of 25 experiments exploring a car company’s place in the changing world of mobility.

The first, Data-Driven Insurance, investigates a new pay-as-you-go insurance offer based on people’s driving behavior, as measured by a small adapter plugged into the car. The second, Infocycle, plots a snapshot of how bikes traverse the city and interact with cars and public transport by using Ford’s open source API, Open XC, to track cyclists around San Francisco.

Ford's Open XC hardware, attached to bikes in San Francisco, tracked their movements around the city.

Tackling the tangled ecosystems of bike sharing, private cars, and open city data proved an international effort. The two projects brought together a multidisciplinary team of researchers, hardware and software developers, data scientists, and interaction, industrial, and business designers from IDEO’s San Francisco, Palo Alto, Chicago, and London studios.

Have we cracked the future of mobility? Probably not. And that’s okay, says Fields. Smart mobility is simply part of Ford’s journey of evolution. Along with global competitions, collaborations with universities, and opening up their hardware and software platform Open XC, these experiments help Ford meet the needs of a fast-changing mobile world. “As we drive innovation in every part of our business,” Fields said, “we are determined to learn, to take risks, to challenge custom and question tradition, and to change our business going forward.”

More information on Ford’s Smart Mobility projects can be found here.

FORD
FORD
Designing for smarter mobility, bike sharing, urban cycling, FORD, mobility, transportation innovation, AI, artificial intelligence, emerging technology, technology innovation, digital products, mobility design, future of mobility, innovation, prototyping, transportation

Gift guide: IDEO’s favorite things for 2023

Our best ideas for the design-savvy on your list.

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To make gifting a little easier, we’ve pulled together a list of IDEOers’ favorite things, from the best pens for drawing to our favorite pottery, and even a superior garbage can. We asked our Play Lab to weigh in on their favorite toys, too. So make your list, check it twice, and take a stroll through our 2023 Gift Guide.

FOR THE CRAFT

Pentel Sign Pens, $8 for a box of 12

Offering amazing ink flow with tips smaller than Sharpies, these pens are one of our designers’ favorite drawing tools. 

Culture Hustle: Black 4.0, $49.99

According to the company, it’s the blackest black paint “in the known universe.” 

Stanford d.school Book Collection, $128

We’re big fans of this collection of 10 design guide books, which is “designed to help you adapt to change, see things in new ways, work well with others, and peer into our collective future.” Give the whole set, or break them up—You Need a Manifesto is helpful for anyone navigating change, or running their own practice, while Design Social Change is a great guide to meeting the current moment.

Envisioning Emotional Epistemological Information by David Byrne, $98

EEEI not only shows that PowerPoint can be art, it contains one of our designers’ favorite definition of knowledge management

Manufactum Notebooks, $18

These are small enough to fit in a pocket, but with enough pages to last you for months. 

FOR THE KIDS ON YOUR LIST

Magformers, $54

The fun, fidgety way these building blocks snap together makes them perfect for kids of all ages to build all sorts of things with—and of course, smash apart! Magna-Tiles may be more popular, but we prefer Magformers with their rounded edges.

Books from Ashay by the Bay

This black-owned bookstore specializes in African-American and multicultural kids books, from baby board books all the way up to novels written for teens. It’s based in Vallejo, California, but ships across the country and to Canada. 

Bitzee, $25

This interactive Tamagotchi—like toy with a techie twist includes 15 cute little pets for kids to discover, nurture, evolve, and play with.

COOKEEZ MAKERY Cinnamon Treatz Oven, $51

Mix the ingredients into dough, mold it into a pet, pretend to bake it in the oven, and surprise! Out pops a plush pet. The trick here is finding it—it’s incredibly popular, and comes highly recommended by the Toy Lab.  

Twister Air, $15

The one toy on our list that we helped make, Twister Air is an active, digital take on the classic game. Challenge your friends to move their hands and feet to the beat—or play solo! For an app-based game, it’s a great way to get moving. 

FOR SOMETHING MORE PERSONAL

Block Shop Textiles, $145-$195

The Southern California textile, art, and design studio run by two sisters has such big fans at IDEO, we actually interviewed them to learn more about their craft. Gift ideas range from a bandana printing kit to beautifully patterned bathrobes.

Monastery Skincare, $48-$293

This brand is a big favorite in IDEO’s skincare lovers’ Slack channel. Fans love it for its beautiful, luxurious texture and scent. 

Anecdote Candles, $26-34

An IDEO alum is behind these scented candles that also “spark a conversation.”

Casio Men's Casual Classic Digital Bracelet Watch, $22

Missing the features of a smart watch, sure, but this Casio is a classic favorite that won’t have your emails popping up on your wrist.

Concha Coin Purse, $7

A sweet gift with a sweeter price point, this coin purse would make a great stocking stuffer. But if you’re looking for something bigger, Chicago’s Mestiza focuses on Latinx artisanal products, and ships around the country. 

FOR THE KITCHEN

Sichuan Chili Crisp, $17

At this point, Fly By Jing’s perfectly savory, spicy, crispy condiment needs no introduction from us, so consider this a gentle reminder that delicious gifts make the best gifts. 

Yes, Chef Gift Box, $46

Thrill fans of The Bear with four of Oaktown Spice Shop’s favorites, vadouvan, urfa biber, umami sea salt, and kampot peppercorns. Bay Areans can visit the store in Oakland or Albany, but it ships across the country, too. 

Kinto’s Travel Tumbler, $34

One IDEOer is a big fan of Kinto’s minimalist and refined design aesthetic, and the tumbler in particular, which has held up over the years with just a few dings and dents. “ As a product designer, you really can’t argue with any detail on those products,” he says. 

Mill, $33-$45 per month

Composting. Great for the planet, not always great for the smell in our kitchens. Mill is something different, a bin that dehydrates and shrinks your food scraps, and a service that picks them up. One of our designers calls it “life-changing.”

FOR THE HOME

Herringbone Outdoor Scraper Door Mat, $31

This doormat is a serious defender of the cleanliness of your floors, and won’t cause a wood deck to discolor or rot.

Rubbermaid Defenders Step-On Trash Can, $217

If it’s good enough for infectious waste, hopefully it can handle whatever is going on at your house. One IDEOer recommends these garbage cans for their clean, classic lines, robust construction that can handle kids and dogs, and their ability to contain smells. 

Daxue Folding Garden Lounge Chairs, $265 for two

Folding chairs aren’t known for their looks, but these wooden numbers have an attractive design, don’t hold water, and are easy for kids to climb on. 

East Fork Pottery, $40-$94

The Asheville, N.C.-based ceramics company makes pottery with clays from the American Southeast, crafting everything from mugs and plates to vessels that hold candles. Check out gifts under $100, like a four-pack of bowls in panna cotta, or a mug in Henri’s red. 

FOR SOMETHING DIFFERENT

AI Against Humanity, $40

Made by a former IDEOer, this dystopian take on Cards Against Humanity puts the future of the world in your hands. It comes complete with 200 cards of technological turmoil and venture capitalist wild cards. “Get ready for a dystopian deck where Silicon Valley fantasy gets a reality-check.” 

Session Bong, $185

IDEO alum Vinh Pho’s Session Goods has created award-winning glass bongs and other smoking essentials for the well-curated home. 

Actually Curious Cards, $25

The original version is less a party game than a deck of cards with questions that are designed to spark conversations that help people get to know each other better. Want something more light-hearted? Go for the Happy Hour edition.

Pluto Pillow, $160

Part travel pillow, part sensory deprivation tank, this product IDEO helped design will get you to your destination as well rested as anyone on a plane can be.

Wondering what to get the design-obsessed in your life this holiday season? We’ve been there.

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gift guide ideo's favorite things for 2023, gift guide, ideo's favorite things for 2023

We tried to build a health venture With ChatGPT

What worked—and what didn’t—in the process.

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To answer that question, we teamed up with Healthworx Studio to run an intensive five-week sprint and design a business that would address issues of access in rural health, leaning on AI to supercharge the process.

We kicked off with a lot of questions: Could we produce more rigorous, higher-quality results if we used gen AI tools to augment our team? Would it come up with innovative ideas for how to make healthcare more equitable? Could we get further faster? The answer was yes—with a lot of caveats. (For a deep dive into our approach, principles, and learnings, check out our Designing with AI Report.)

It quickly became clear that while Gen AI tools can’t replace human ingenuity, they certainly fuel it. When it came to generating solutions to a problem this complex, AI had very little to offer in comparison to human teammates. But it did help us innovate much faster and with more depth, bringing us up to speed on initial stakeholder context and synthesizing and incorporating datasets —crucial parts of the process that can take a lot of time. Here’s where we succeeded and failed, and what that taught us about using AI going forward.

Prompt: An infographic with a dark background with a lot of imaginary logos in rows and columns, one logo is much bigger than the others, dark background, dominant teal, retro poster style

Opening the aperture

Did a machine just listen to dozens of podcasts, summarize them, and give us themes in an hour? Yes it did. Thanks to tools like Preplexity.ai, which enables social listening on platforms like Reddit, we were able to quickly synthesize diverse perspectives from varied sources and distill themes that seamlessly integrated into our research process. 

Working with these tools feels like being bitten by a radioactive spider and gaining a suite of superpowers. We can rapidly develop contextual awareness of numerous stakeholders and their pain points in relation to the challenges we aim to address. With our lens widened, the questions we asked became more pointed and the concepts we designed more crisp. “The AI enables efficient pattern matching across massive datasets, unlocking value from information that was previously siloed or inaccessible,” explains Jaime Goff, Product Design Lead at Healthworx Studio. “By leveraging these capabilities, we can incorporate a breadth of knowledge beyond what our team could internalize before. It really expands what we can achieve by connecting us to data in new ways.”

Prompt: Five people at separated cubicles working on computers, dark background, retro poster style

The importance of coming together

But as our use of AI tools increased, there were unexpected sandtraps, too. For one, we noticed a steep decline in the quality of our team interactions. We thought that getting an AI boost would be “like having an extra designer in the room with us.” But the reality was we each retreated into our corners with our own AI assistant, forging ahead with new ideas. When it was time to reconvene, we were on wildly divergent tracks, and re-aligning to move forward as a team was an enormous undertaking. 

Another caveat: While generative AI tools helped us gather new forms of data, it was still critical to hear directly from the people who would be using these solutions. 

Nicole lives on a ranch the size of the City of San Francisco. After her husband broke his leg in a freak accident, she had to make a harrowing journey, traveling two hours to the nearest hospital. Stories like Nicole’s taught us a lot about what it’s actually like to access healthcare in rural areas, and the resilience it requires. It was the people we spoke with who brought nuance to the problem our team was trying to solve, inspiring our most critical insights and building confidence in our concepts. As much as we tried, we could not find an artificial substitute that could come close.

It was the people we spoke with who brought nuance to the problem our team was trying to solve, inspiring our most critical insights and building confidence in our concepts. As much as we tried, we could not find an artificial substitute that could come close.

Smelling the AI B.S.

When reviewing a few AI-generated venture concepts with the Healthworx team, the room fell silent. The concepts were all variations of the same idea, repeated and rehashed. “Generative AI can rapidly spin up concepts that seem good enough at first glance,” Goff says. “But when you scrutinize them, the limitations become obvious.” Even after extensive prompting with our AI co-pilots, we were still back to the same place, with a bunch of repetitive concepts. 

But when the team mined our own insights, we were able to find a truly compelling venture idea.

Late into the night, when the team was riffing, we shifted our approach from working alongside AI to guiding it. We had ChatGPT review and improve on its own ideas, asking it to strengthen the overall concept as it went. The tool acted like jet fuel, helping us add rigor and build out the venture, ultimately producing a successful pitch presentation that included high-fidelity mockups, early working AI prototypes, and an in-depth pitch deck.

Prompt: A girl disentangling an electronic neural network algorithm, dark background, simple lines, retro poster style

Supercharging our process

We’re in the caveman era of generative AI, and there are plenty of unintended consequences to be concerned about. But we’re optimistic about how a human-AI partnership that leverages human creativity and nuanced subject matter expertise alongside AI tools allows us to quickly outsource parts of the process, add rigor, and iterate faster, supercharging design and innovation.

And while the AI hype is founded, its limitations, which became patently clear in the ways it addressed a complex challenge like rural healthcare, made us appreciate how important humans are to this equation. Goff says it best: “This project showed the value of individuals bringing their unique brains and nuance to the table to work alongside AI. Our minds provide the spark that drives real progress.”

For those who crave the details, learn more about our approach, principles, and experiments with our transformative collaboration with Healthworx Studio here or reach out to ai@ideo.com

Visuals created with Midjourney.

Healthcare has a lot of big problems to solve. Could AI help?

Health
AI & Emerging Tech
we tried to build a health venture with chatgpt, healthcare, health innovation, ai, emerging technology, artificial intelligence, ai strategy, venture design, entrepreneurship

Can failure be and feel productive?

It doesn’t pay to cling to a bad idea.

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At a recent business roundtable, the topic was how to set product innovation up for success. I spend the bulk of my days helping organizations stretch to tackle business challenges by coming up with breakthrough ideas, so it might seem sacrilegious to allow those ideas to fail.  But since that breakfast, I found myself scrutinizing not only what failure looks like, but also how it feels.

There’s a saying that’s usually applied to writing: “Kill your darlings.” It’s a nudge to let go of a much-chewed-over clever phrase that doesn’t help the overall story.

We use the saying at IDEO, too. But our “darlings” are hypotheses or “sacrificial concepts” that we quickly put to the test and are willing to abandon. Iteration is the lifeblood of the design process—and the magic of it is that it allows for what Harvard Business School professor Amy Edmondson calls “productive failure.”

When companies face business challenges that require innovation, the instinct is to look for and land on a solution and sell it internally, so you secure permission to move forward. And what if the path you’ve chosen doesn’t pan out? We have a natural instinct to persist: The company has allocated money and resources, and it’s easier to hang onto the hope that a turnaround is just ahead than to pivot. 

But hope isn’t enough in an era of new baselines like disruptive AI and climate change. Companies must stretch further, build resilience, and find ways to meet an ever-evolving new customer. 

To keep pace, we have to reframe  business challenges as human challenges: What is desirable from a human point of view? What do people really need? How can we help a brand like H&M meet its customers’ desire to use less plastic? And also help the retailer meet its climate goals by reducing waste from its supply chain? Insights drawn from in-depth interviews with and observation of customers and other stakeholders combined with data already collected by the organization help us generate hypotheses that we can quickly test. 

In the case of H&M, we suggested replacing the plastic packaging they used to ship online orders with paper. But there were many hurdles to clear to make sure that would work across a global supply chain with multiple brands. It ended up taking several months and multiple pilots to ensure the more sustainable packaging would work.

Finding out that something doesn’t work—and, crucially, why—sets you up to more deeply understand the constraints you're operating within. And reframing an abandoned concept as a learning rather than a failure allows you to prioritize continuous improvement, keep teams motivated, and build stakeholder confidence . 

Organizations may feel like they don’t have the luxury of time to test innovative ideas. But proof of concept needn’t take more than one to two weeks and can be done at low-cost. One timesaver is to test hypotheses in parallel. That approach also allows teams to let go of darling concepts and view the goal as learning rather than validation. 

By one estimate, 95 percent of new products fail, and baking failure into the exploratory phase helps ensure the product or service that emerges has been battle-tested. A hypothesis that doesn’t work out isn’t a Failure, it’s a failure, and that feels different. In the case of H&M, prototyping packaging options not only led us to a paper solution that cut plastic, it led to us digging deeper on climate goals and ultimately redesigning their supply chain to cut millions of tons of waste.  

At the roundtable, we talked about the challenge of working within a company culture that doesn’t tolerate failure. I’ve worked in a number of those environments and cultures; they’re tough. Failure carries emotional baggage. If you got a taste of it as a child and were a diligent but mostly average student like me, you did everything you could to avoid seeing that red letter atop a test ever again.  

I’m currently working within a culture that makes room for failure. Some of that is inherent in the design process, which is optimistic and pragmatic. But my colleagues also share an important mindset. They focus more on impact than the idea or activity that produces it. There is a deep respect for diversity of perspective and a shared belief that if there’s a better way to do it, we’re going to do it that way. 

A crumbled piece of paper has been framed and hung on a wall. It has writing on it in red marker. It reads: "I DON'T hate you. I hate YOUR DESIGN. Quotes by Kevin"

In IDEO’s London studio, we have a framed, handwritten quote: “I don’t hate you, I just hate your idea.” It was never intended to be framed, but it’s a fabulous reminder about not taking failure personally. If we truly share a collective goal of doing well and doing good, we need to generate and test as many ideas as we can—and be okay with killing our darlings to get there. It’s the only way to make real change.

Is your intolerance for failure holding you back? I’d love to hear more.

Should we allow new ideas to fail?

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can failure be and feel productive, experimentation, testing new ideas, creativity, innovation

How AI can help us solve the climate crisis

From talking jeans to Nature boardrooms, we’re stretching to meet the future.

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Two of those shifts? Generative AI, and our rapidly changing climate.

Together, these two forces are moving both the people side of the equation—what we need and how we behave—and the how side of design: what’s possible.

Welcome to the Climate Era

A new age is upon us. Steam propelled the original Industrial Revolution; electricity powered the second; preliminary automation and machinery engineered the third; and cyberphysical systems—or AI-powered computers—are shaping the Fourth Industrial Revolution.

But the universal context is our climate. The Climate Era is our time-windowed opportunity to reverse the costs of the industrial and digital eras—creating a more abundant future for all. The way through it is to find ways to reinvent our economies, in part by turning necessary choices (like conservation and circularity) into desirable ones.

To the degree that the climate crisis can be solved, we already have solutions and technologies. The central question of the Climate Era is not can we do it? It’s will we do it?


Hello, generative AI

If the challenges of the Climate Era have been building up over centuries, the transformative power of generative AI seems to have hit the world in a flash.

And this is a critical moment to interrogate our relationship with technology. At IDEO we do that through the tools and habits of design: building to think, taking time to understand people deeply, investigating the farthest consequences we can imagine, and embracing new skills, disciplines, and ways of being in the world through experiments.

Combined forces

These two forces—AI and the Climate Era—have the potential to change everything for everyone. And in some ways, they already have. More often than not, AI and Climate thought live in different conversations. But what might happen when they’re brought together?


The pull of personality

Here’s an example of how AI might help us be climate-friendly manufacturers and consumers: It can help you get to know your clothes before you buy them.

We want and we need to build a circular economy. But its biggest challenge is scale: getting to the necessary infrastructure and processes, and—maybe the most challenging—getting enough people to participate.

There are signs of shifts at the policy level: You see it in Europe, for example, where the EU has a regulatory framework to promote (and require) circular behaviors from both businesses and consumers alike. And more and more people are participating in circular-like ways, such as thrifting. We see younger consumers pushing brands to become more active in developing and promoting sustainable versions of their products (so long as they’re not more expensive).

All that made us think about a pair of jeans.

Jeans lack the physical traits necessary for conversation. But, for an exhibit of speculative design at IDEO, we imagined them capable of communication. 

For starters: We might ask the jeans about their (un)life story, what went into their creation, or how they like to be treated. We might learn about where they were manufactured, their previous owners, and how to fix them if they ripped. Knowing all this about your jeans would give you a much better sense of whether they were a good fit.

Through AI, all of us will soon be conversing regularly with non-humans. And what else might “speak” through AI? Vehicles that remind us that they’re happier when filled with passengers and bound for the carpool lane?

Speaking for the trees

Most of the sustainability problems we seek to fix were created in the design and strategy choices that were made early on in a product’s journey. The lifecycle analysis is a robust process. But it’s costly and generally retrospective, analyzing only those products and practices that already exist.

What about when we’re exploring different potential options and what could be, not what is

AI can help us incorporate a real sense of the “true cost” of a product and give nature a seat at the table early on. AI that draws on scope 1,2, and 3 datasets could help protect nature’s best interests in the decision-making phase. To be credible and useful, such an AI would need to synthesize scientific data, cultural data, and archives of experiments. And it would need to have some ability to understand the ground truth of things: learning from both human and technical inputs how things really are, right now, in the soil, in the ocean, in the community, and on and on.

With such a nature-centered AI in play, deployed ethically, we can imagine it occupying different roles and settings. As an advocate in the boardroom (where it might pose strategic questions or even cast a vote), or as an inventor in the materials lab (where it might suggest radically more sustainable ways to use resources and optimize production).

Everything in play

When we talk about making great choices in the Climate Era, especially at the policy or regulatory level, we’re talking about something unbelievably complicated. There are so many factors to consider, in so many dimensions.

And AI can help us think systemically. Take something like fishing. To regulate it, we need to understand  the immediate economic impact (such as business profit); the effect on communities and livelihoods; taxation and employment; the effect of granting more or fewer fishing licenses; how to balance production and protection of spawning areas); and biodiversity. AI can synthesize all of that information and data and make suggestions that expand our imagination about what’s possible. 

Another thing artificial intelligence has a knack for is running simulations. What if AI could help you simulate the tradeoffs among biodiversity, job creation/local livelihoods, and business success?

We imagined this kind of thing in a piece of work with our friends at Conservation International.

A simulation is often quite technical, and AI is already great at that. But we can also imagine an AI pushing people to consider their choices in other ways. What if it could point you to the right humans, on island nations for example, to enrich your understanding of potential impacts, far beyond your own frames of reference?

The age of transformers

There are so many ways the Climate Era and AI, two transformative forces, might collide in service of building better futures. We picked out just three:
• Driving consumer adoption and adaptation by making things that are better
• Optimizing and reimagining production by giving nature a voice and a seat at the table
• Radically reworking how we make climate choices, especially at the largest scale

But, of course, they’re not the only transformers at work. We are, too. Especially those of us in positions of power and influence.

The Climate Era is here.
The Age of AI has arrived.
And it’s still our world to make and remake—for the better, if we choose.

This article is adapted from a session delivered by IDEO in NYC at the 2023 FastCo Innovation Festival. With editing support from Christina Drill.

The problems we’re being asked to solve are changing. It’s less about helping partners innovate in incremental ways, and more about big transformational shifts in how we live and work.

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AI & Emerging Tech
how ai can help us solve the climate crisis, technology, digital innovation, sustainability, climate innovation, ai, emerging technology, artificial intelligence, ai strategy, innovation, climate change

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.

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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.
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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.

AI & Emerging Tech
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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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