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Kickstarting Europe’s biggest smart energy company

Strategies to bring a new product to market.

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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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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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Climate

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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AI & Emerging Tech
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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

Is it time to reimagine the C-suite?

The current structure for leading companies may no longer be sustainable.

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Reprinted from the SHRM Executive Network’s People + Strategy journal.

Derek Robson, our CEO, and Tim Brown, our Chair, believe that the fundamental role of leadership teams has changed.

The fundamental role of the C-suite has changed. In the past, the leadership team's job was to keep the existing machine humming, optimizing for efficiency and profitability. But now the challenge goes beyond delivering business results to driving transformation—in effect, building a new machine that will thrive in the future and, ideally, the present.

And the demands placed on most senior leaders of organizations have grown exponentially. Not only are they required to be constantly reinventing the company, but they must also navigate the growing expectations of employees, investors, and other stakeholders who believe that corporations and their leaders should play a larger role addressing broader issues in society that historically fell outside the purview of business. And the demands these leaders face will only increase given that relentless disruption and uncertainty are now facts of life.

Who can live up to this superhuman job description? It's time to start contemplating a mindset shift and possible reimagining of how the C-suite operates. We see four fundamental shifts that can help executives teams evolve.

How might we shift from answers to questions?

It used to be that chief executives were expected to have all the answers to any question, as if they were Athena, the goddess of wisdom. But in our conversations with CEOs over the last few years, many share the opinion that the primary role of chief executives has to shift to being constantly curious rather than all-knowing.

In a sense, the CEO needs to move from being chief executive officer to chief inquiry officer. The ability to ask the right questions is arguably more important for the CEO than having the right answers. That's because questions provide long-term focus for companies, whereas the right answer in one context can quickly become the wrong answer amid shifting contexts.

That then raises the question of whether one person can realistically be expected to be able to have all the knowledge, expertise, and insight required to explore new territory and create those questions. The answer to that is almost certainly no, and that creates a bit of a dilemma for the CEO.

Where do they get the help to be constantly curious? It may be too much to expect that support from their direct reports, given that their primary responsibility is to execute the strategies that emerge from those questions. The board may not be much help, either. Boards, for the most part, are not expert enough. They have an important role to play, and maybe some board members can play that role. But it's not something that boards are generally set up to do. They are governance mechanisms more than knowledge-seeking mechanisms.

One possible solution for providing more support to CEOs is for them to have a small set of peer advisors around them to help them figure out what the right questions are. For this to work, the CEO would need to be able to treat that group as true peers. And they not be on the payroll of the organization, so that the CEO doesn't have to also worry about the motivations of employees who might be looking to be promoted.

In most of their day-to-day interactions, CEOs have to be concerned about side agendas and ulterior motives. And for this advisory group to work, it would have to have a singular goal of helping the CEO think through challenges and questions, in the same way that U.S. presidents have assembled "brain trusts" to offer guidance on issues. The goal for the group would be to provide a series of perspectives on a problem, rather than trying to provide the answer, and help the CEO build their confidence and courage for navigating uncertainty.

How might we create more fluidity in executive roles?

This question underscores a fundamental tension in the role of the CEO and other members of the C-suite. At a time when people expect more of their CEO and their leaders—authenticity, humanity, inclusivity, greater visibility, constant communication—these senior executives also need more time away from the office to simply think, to calm the noise and figure out what questions they should be asking but aren't. And there's no way to do that other than being either intensely disciplined about it or by sharing the load. That thinking time is crucial, even if it is just to step back and ask yourself whether you are making progress on the big goals that you've articulated for the organization.

In theory, the responsibilities of leadership in organizations should be shared and spread across the other executives. One challenge there, as we mentioned earlier, is that the C-suite is primarily focused on executing the strategy, rather than contemplating new strategies.

In addition, those roles themselves are facing their own existential crisis. Not only are the responsibilities of each traditional role expanding rapidly with the complexity of the world, but we are seeing more C-suite leaders wearing multiple "chief" hats.

For example, many chief human resources officers are now also responsible for real estate, given that the future-of-work policies they are devising have enormous implications for their requirements for office space. As if that weren't enough, they are also taking on responsibility for communications—both internal and external—since it makes sense for them to be aligning corporate messaging with efforts to recruit and retain employees.

As new issues come up, responsibility for handling them will likely fall on the shoulders of the existing leadership team. But this model isn't set in stone, and it should be revisited.

We can look for lessons on fluidity from outside the world of business. Some years ago, we worked with the government of Dubai to create new ministries—including establishing the Ministry of Possibilities—and merge existing ones to address the evolving challenges and issues that society faces. Should businesses start to think the same way? Should we start to imagine C-suite leadership roles that are more agile and can be continuously restructured to deal with the challenges of the moment while also considering the future?

What's the strategy? Does the organizational structure match it? In many cases, it doesn't. You kind of drift away one degree every year, and suddenly you're a long, long way away from delivering against what you've set out for your shareholders and for the company itself.

How might we balance performance with regeneration?

As we contemplate the future of C-suite roles, another question arises: Can we structure the jobs so they aren't so reliant on people who have a tremendous amount of stamina and energy, or those who have the capacity to work constantly?

It's almost as if a requirement for the job now is to be able to score well in the equivalent of an NFL "combine," where potential draft picks are tested in various speed, skill, and agility drills. To sign up for these C-suite jobs requires a certain amount of internal drive but also pure physical endurance.

Is it possible to imagine doing this job without requiring that level of relentless physical and mental effort? Sports are often used in useful ways as a metaphor for business, but there is a key difference between the two. In sports, you don't spend all your time just playing the game. You spend a lot of time training. And the same is true for other pursuits like dance and music—you are practicing most of the time and performing for a relatively small amount of time. But in the workplace, we don't have that concept, and so we assume that leaders can both practice and perform at the same time all the time. And if you really want elite performers, that may not be humanly possible.

We may be expecting simply too much out of human beings to have them be practicing and performing to extremely high levels for thousands of hours a year. So, what can be done about that?

Organizations have to spread the load so leaders can regenerate some of the time and perform some of the time. But businesspeople are not very intentional about how we regenerate today. We are quite intentional about it in the world of sports, where there is a whole science around what it takes for an athlete to regenerate both physically and mentally. Could we be intentional in the same way in the world of business, rather than having leaders run so hard all the time that they're not giving themselves time to recover?

There are no easy answers to these questions, but they need to be asked now, before the C-suite becomes unsustainable. Rather than worshipping at the altar of the CEO, organizations need a more collaborative approach as we look to the future. Ultimately, the goal would be to create more of a collective leadership body, rather than relying on one person, the CEO, or their direct reports.

Reprinted with permission from SHRM, ©2023. All rights reserved.

Given the growing demands on leadership teams, particularly the CEO, the current structure for leading companies may no longer be sustainable.

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is it time to reimagine the c-suite, leadership, organizational transformation, future of business

Reimagining space travel: The magic in the mundane

Once, Frederik Pohl, famed science fiction author, left us pondering a nugget of wisdom: A good science fiction story should be able to predict not the automobile but the traffic jam.

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The project team, from left: Tomoya Mori (Business Design Lead, IDEO Play Lab), Shintaro Chofuku (Engineer, JAXA), Mio Yokota (Communications Design Lead, IDEO Tokyo)

When we're dreaming up futures, we often overlook the very human challenges that such futures might present. But we need to remember, it's us people living there, muddling through the everyday problems that future tech will inevitably toss our way.

This holds true even when our future is projected into outer space.

In October 2021, a rocket engineer from the Japan Aerospace Exploration Agency (JAXA) joined IDEO Tokyo for a month-long "cross-border study program”. This resulted in exploring the intriguing intersection of human-centered design and space exploration. The question at hand: what would space travel feel like when it's no longer just for astronauts but for the rest of us?

This posed a unique challenge: to reimagine space travel with a human touch, crafting an enjoyable experience for everyone, regardless of their physical abilities or cultural backgrounds.

Crafting the Future User Journey

At IDEO, we value creating new experiences by empathizing with users. But with space travel, we're dealing with a unique situation—the user may still be beyond our reach.

To envision the future of space travel in the most comprehensive manner, we leaned into expert interviews. These dialogues with specialists in various fields provided invaluable insights for designing future experiences and services.

We discovered from spacecraft engineers the mental and physical challenges astronauts face. An Experience Designer from IDEO's PlayLab further provided tips on how to craft experiences that preemptively mitigate discomfort.

What dawned on us was that space travel isn't just about the Overview Effect. It starts way before hitting the 'Book Now' button and lasts way after you're back on Mother Earth.

As the team conducted expert interviews, they began to depict the user journey of a space traveler.

Experiencing the Future

In our quest to enhance empathy, we devised a method to immerse ourselves in the user's world, to get under their skin and understand their experiences more intuitively. At IDEO, we call this the Empathy Exercise. As Bill Moggridge, one of the founders of IDEO and a product designer, succinctly put it, "The only way to experience an experience is to experience it." So, we thought, why not bring a taste of space right here on Earth? Thus, our makeshift 'space camp' was born, where we mimicked the space traveler's journey under as-real-as-it-gets conditions.

Our space camp menu? Only freeze-dried food to be rehydrated with hot water, akin to space cuisine. We rationed water, limiting each participant to 3.5L per day for cooking, drinking, and freshening up—just like on the International Space Station.

We even simulated the trials of toilet use in space. You see, in a spaceship, you've got to don diapers or use a wall-mounted toilet while other passengers are just a step away. During the camp, we used portable toilets for urination. For the other, ahem, business, we had a two-person arrangement in a private room: one person turns a blind eye while the other does their thing.

Food and supplies given to each person. Like actual space travel, they were allowed to choose their favorite freeze-dried food in advance.
An IDEO designer eating rice porridge with a tapioca straw.

While it may sound like a game at first, spending a whole day under these restrictions opened our eyes to various insights. For instance, the novelty of freeze-dried meals wore off after the first few bites. Eating straight from the package or ziplock bag was not only visually uninspiring but also cumbersome. So, we started getting creative with the packaging from the second meal onwards to make the food more palatable.

The bathroom experience was another big takeaway. In our daily grind, the loo is a private space, a welcome escape from the hustle and bustle. But in a cramped spaceship with no privacy, it's quite the stress-fest to hurry up to spare the waiting person and to keep any, well, olfactory offenses at bay.

Writing a 'One-Star Review' for Future Experiences

Our research revealed a number of human-centric problems hidden in space travel. To share these findings, we created a fictional news program from the future, featuring 'one-star reviews' penned by space travelers.

These fictional viral tweets aren't just complaints, but a launchpad for designing more enticing space travel experiences. By forecasting the everyday snags of a future where space travel is as common as a trip to Hawaii, we're one step closer to engineering a genuinely otherworldly experience.

Creating the Design Principles for the Future

Once challenges were identified, the impulse to dive straight into problem-solving was strong. However, at IDEO, we use 'Design Principles' to maintain our focus on the user's perspective.

For instance, our experience designer highlighted the need for psychological safety within a spaceship. Building trustful relationships is crucial for everyone to fully engage in the experience during space travel, where varied groups share a confined space.

We also learned from former astronaut Naoko Yamazaki about the value of fostering creativity. Space, free from gravity and conventional rules, allows for the redesign of norms. Rather than preparing all experiences in advance, we found that leaving room for travelers to create their own unique enjoyment might lead to more memorable journeys.

"If I had a free day in space, I'd want to make something. I'd create crystals, color soap bubbles, or use intense UV rays to create art pieces. Ideas for experiments in zero gravity are limitless." - Naoko Yamazaki

Ultimately, we crafted five core design principles, each considering various perspectives from physical fitness preparations for the journey to designing an inclusive spacecraft interior. As we begin to design concrete concepts, these principles serve as our compass, enabling us to continually envision a future of space travel that is fundamentally human-centric.

In these uncertain times, we must remember the people are always at the heart of our evolving narrative. As we dream, our focus should extend beyond technology to include the everyday challenges it brings along.

With a touch of creativity and a playful mindset, let's 'experience' this future together. The secret to a brighter tomorrow might well be hidden in the most mundane problems.

Learn more about the project at spacetravel.ideo.com. (Japanese Only)

Once, Frederik Pohl, famed science fiction author, left us pondering a nugget of wisdom: A good science fiction story should be able to predict not the automobile but the traffic jam.

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reimagining space travel the magic in the mundane, reimagining space travel, the magic in the mundane, space travel, future of travel, travel experience

Will AI interfere with relationships?

Gen Z thinks so.

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Earlier this year,  Snapchat introduced My AI, a relentlessly cheerful chatbot powered by OpenAI’s GPT technology. The avatar, pinned to the top of your chat feed, was ready to respond to every passing thought, be your 24/7 rant buddy, or even…your new best friend.

You might imagine that Gen Z, cradled by the arms of technology from their earliest friendships found on Club Penguin or Minecraft, would welcome My AI. After all, this is a generation for whom dating starts with the subtle “like” of a post or in the DMs of a swiped-up Instagram story.

But in a surprising twist, Snap’s chatbot was an instant flop, resulting in a spike of 1-star reviews.

That tracks with the responses of the 13- to 21-year-olds we spoke to, all of whom voiced a resounding “no” to the idea of AI infringing upon their relationships. Rather than forming attachments to the programmed responses of AI, they are interested in cultivating genuine bonds with others that don’t require an algorithmic intermediary.

“How does this change our expectations of real life people?” asked one 19-year-old. “I feel like that could be super problematic for friendships because you're like, oh, I just want this person to be different. Why can't they talk like this? Why do they laugh like this? Why can't they understand this? Why don't they know everything about me? Why can't they read my mind?”

Young people already feel the damage social media has had on their relationships and mental health. And they're wary that AI will interfere with the relationships they’re just learning to foster.

Meanwhile, brands are in an arms race to create AI companions and AI clones that can be integrated into products and services. But when our team put a series of hypothetical Gen AI-powered relationship products in front of a group of young people, they balked and even expressed discomfort. They want technology that augments human relationships, not bots that replace them.

These insights led to three principles that we’re using as guideposts as we design this space.

1️⃣ Skip the engineered reality; reflect authenticity

Perfect, personalized AI bots might breed dissatisfaction with flawed human friends. Plus, they’re just plain spooky. Gen Zs told us they would prefer tools designed to help them embrace the imperfections of relationships and help them navigate. “I don't like the idea of being able to mold someone,” one respondent told us. “One of the teachings that I feel is super valuable in my life is acceptance and being able to go, okay, this is where I can meet this person.” Wary of social peacocking, face filters, and all the doctored images of social media, they feel AI friends would only further the fakery they’re actively trying to undo.

2️⃣ Elevate human intuition and empathy

There is a real concern that an over-reliance on AI could cause people to lose touch with their intuition. Gen Zers know that awkward moments with others—conflicts with friends, job interviews, even a bad vacation—are part of the human handshake. “Relationships are about you learning as you go,” another respondent said. “You're not going to learn how to resolve conflict by yourself, you're not going to learn how it feels to be lonely and push yourself to go meet people.” At the same time, they’d gladly accept help with maintaining friendships. A personal coach that could suggest activities or check calendars for times when you’re both free? Sure. Relationship advice? Bring it on. Perfectly streamlined interactions? No thanks.

3️⃣ Build in transparency to gain trust

The people we chatted with were concerned about AI accessing their conversations. “There's a lot of personal things that my friends and I talk about. And I wouldn't just want a third party listener all up in the mix or storing photos or information. I wouldn't want to feel like it knows my whole life.” They want to know how much listening AI is doing, and how their data will be used by the companies that create it. They’re concerned about the racism that has surfaced, and how a system that reflects human bias might shape their perceptions of their own identity and the world. The concern is well-founded, and presents an opportunity for companies to be transparent about the information they collect and use to improve AI models, and mitigate unintended consequences.

Snapchat's My AI and the host of potential AI-powered relationship products may seem attractive, promising the allure of companionship and understanding. Yet, this generation, while tech savvy, recognizes the value of genuine, organic human connections. The charm of flawlessly crafted bots pales against the nuanced, idiosyncratic, tender core of human interactions.

The next generation has opinions about what we build, and their message is clear: AI is welcome to augment, enhance, and support, but when it comes to forging meaningful relationships, humans must remain at the helm. It’s a potent reminder that while technology shapes our world in novel ways and companies vie to be first to market, the essence of humanity—the value of mutual understanding, the beauty of our imperfection, and the need for companionship without a whiff of profit motive—should never be sidelined.

As we step into a future where AI is integrated into every experience, let’s remember that the best guides are our own instincts, not a bot trained on reading the internet. The collective wisdom of Gen Z might just be the compass we need.

Is your organization interested in designing more human-centered AI experiences? Let’s talk.

If you've missed Parts One and Two of our Gen Z + Gen AI series, you can catch up here and here.

Technology
AI & Emerging Tech
will ai interfere with relationships, technology, digital innovation, ai, emerging technology, artificial intelligence, ai strategy, generative ai, how to use ai, future of ai

Gen Z to AI: don’t kill my creative vibe

3 principles to design AI creative tools Gen Zs will actually want to use.

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AI helped you with your final paper and made your workout plan—why not have it help resolve a conflict between you and your friends, or help you pick your career?

Because that’s where artificial intelligence crosses the line from innocuous to intrusive—at least for the group of 13- to 21-year-olds with whom we spoke. To better understand how the next generation will respond to a new wave of AI products, services, and experiences coming online, we prototyped hypothetical apps to elicit feedback. “AI Passion Coach” for one, is a guide that identifies your skills and makes suggestions for how and where to apply them. That didn’t go over so well. “I’m all for AI helping me find the most optimal way to learn once I know what my passion is,” a college freshman told us, “but finding a passion for me? Not so much.”

After sharing six concepts, we came away with some strong hunches about how this cohort wants to show up in the world—both in person and digitally. They’re not looking for products that can be creative for them, they want tools that help them be creative themselves—a subtle but important difference.

Just as digital maps have ruined our collective sense of direction, Gen Z fears that the generative AI’s shortcuts and automations may diminish their ability to form their own identity.

As one 19 year-old explained, “It's so much more valuable when you experience and learn something yourself versus being told it.”

Several feedback sessions on AI Passion Coach, along with two other hypothetical concepts: AI Venture Accelerator, a creative co-founder that helps you bring your idea to life, and AI Muse, an idea generator that accelerates your creative pursuits, yielded insights from which we drew three design principles for creating products and services that are more aligned with what young people want. If your business is integrating generative AI, consider these guidelines:

1️⃣ Use AI to Scaffold the Creative Process

The Gen Zs we talked to don’t want to be handed the answer. They want to develop the capabilities to create something of their own. “I think there's a line where AI can provide the groundwork and help be a resource, but then we get to choose what we do with it from there,” one 19-year-old said. Exploration, experimentation, and reflection are important parts of the creative process that young people don’t want to see stripped away.

To align with that desire, companies can create AI services that help users discover and learn why and how something is created. Those aged 12 to 25 told us over and over again that being able to adjust their level of input, and add their own vibe was very important to expressing who they are.

2️⃣ Lower the Barriers to Entry

This cohort recognizes that there are tactical skill sets that they and others may not have access to. They welcome AI opening up opportunities for those who may have great ideas, but lack the knowhow to execute them. “I’ve been working on developing an app for sustainability. I can't code, and I don't know how to make an app, but I had the idea and wanted to make it real,” a college freshman shared with us. Instead of removing humans from the equation, companies could leverage AI to help users jumpstart their ideas and offer access to the resources and knowledge necessary to turn those ideas into reality.

3️⃣ Connect Creative Communities

Gen Zs find a sense of belonging and community through creative pursuits and look for those who share similar interests. “I feel like the beauty in creating things is definitely the insights I'm getting from other people,” said a 19-year-old entrepreneur. Just as mobile phones consume our attention, they suspect that other emergent technologies will isolate people and put optimization and productivity above the slower process of sharing ideas. “You achieve things more quickly,” said a 20-year-old student, “but you're lacking the relationships that you build over time when trying to achieve those things together.” For companies looking to augment human creativity, this presents an opportunity. Instead of being a generator of machine-made solutions, AI can be a facilitator of human collaboration, allowing people to share tips, learn from diverse experiences, and build community.

As generative AI upends the way humans work, there’s a lesson to glean from this research. Generative AI’s omniscience and ability to generate staggering creative output almost instantaneously is undeniably seductive. But the fundamental values that we cherish—our creative agency, our ability to actualize new ideas, and our need to bond with others through collaborative work—are all key to the successful adoption of the AI products and services of the future.

These principles are a good starting point for how to innovate wisely with human needs in mind. In Part III of this series, we will dive into how AI might impact the next generation’s relationships and mental wellbeing.

Missed Part One of our Gen Z + Gen AI series? Head here.

Technology
AI & Emerging Tech
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Lindsey Turner

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

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Leader
Leaders

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

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

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

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

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

Rachel Young

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

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

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

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

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

The greatest project to which I’ve ever contributed is raising my two daughters with my husband.
Uncovering unmet needs
Consumer Products & Retail
Learning & Work
Media & Entertainment
Play
Public Sector

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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Leader
Leaders

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

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

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

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

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

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

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Leader
Leaders

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

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

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

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

I have a thing for antique maps.
Developing China-led innovation and capabilities'
Consumer Products & Retail
Food
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Industrial & Manufacturing
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How to use AI as an editor, not a writer

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

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.

Health
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Technology
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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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