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In Mexico, redefining retail

FEMSA creates a digital ecosystem to increase customer value at its network of OXXO stores.

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Case study
Case Studies
Strategic Futures
Consumer Products & Retail

The IDEO team quickly discovered that the challenge of designing a Digital@FEMSA super app for tens of millions of customers was matched only by the operational complexity of bringing together different teams that had already created various apps with separate value propositions. Not to mention the 22,000 stores specifically tailored to local communities.

To kick off the project, the IDEO team built on FEMSA’s already deep understanding of its customers by meeting them in their homes and communities. The team discovered that users didn't care about long-term rewards; instead, they wanted everyday help to thrive long-term. Connecting omnichannel rewards to regular spending would allow them to save time and money—something they said was particularly important. Along with market research, insights like these directly informed the app's design, ensuring that it was compatible with users' everyday habits and preferences.

Meanwhile, the project team also worked to ensure the app fit the priorities of the various teams inside Digital@FEMSA, designing a comprehensive process for testing joint value propositions. Together, the team created a new design system, iconography, and set of unifying principles. IDEO also worked closely with the Digital@FEMSA teams to ensure that the app's design was in line with their strategic goals and technical capabilities, and built the app's initial information architecture. They incorporated secure transactions, effortless coupon redemption, personalized offers, and a cohesive loyalty program.

From there, the IDEO and Digital@FEMSA teams quickly transitioned into the design and development phase, producing prototypes of the new app, dubbed Spin Premia. With the help of user testing, they were able to continuously iterate to improve the app's features and functionalities, creating a user experience that was both seamless and intuitive. In just 10 months, they went from a small digital team with an ambitious idea, to a 150+ people product organization and an MVP launched in one region. And thanks to a tight partnership, the teams were able to seamlessly integrate Spin Premia into Digital@FEMSA's existing systems, resulting in a scalable implementation nationwide just a few months later.

The introduction of Spin Premia was a milestone in FEMSA's digital transformation path. Following a true ship and iterate model, just a few months into the project, the company released a smaller, focused version of the app in just one city in Mexico to quickly learn from customer experience before expanding to new regions. Since then, the Spin Premia app has quickly gained popularity, offering a safe and user-friendly platform that millions of Mexican consumers have embraced. It has also allowed FEMSA to broaden its digital portfolio and extend its customer base throughout Mexico, elevating customer satisfaction and fueling business expansion.

13 million Mexicans visit FEMSA’s OXXO convenience stores every day. But the company had ambitions to leverage digital experiences to increase customer engagement.

To get there, Digital@FEMSA needed to deliver exceptional digital products with the agility to serve an entire population.

4.7 stars

Spin Premia’s app store rating

22.8 million

active Spin Premia program users

FEMSA, a leading Mexican retail, digital, and beverage firm, operates OXXO, the largest network of convenience stores in Latin America. More than just corner stores, the 22,000 OXXOs are also local hubs that simplify Mexican lives, offering thousands of services including payments for private services and banking, phone top-ups, and even utility bills. But FEMSA saw even greater potential for the chain, and wanted to create a digital ecosystem that would allow the 13 million people who visit the store every day to access even more features, like financial operations and loyalty benefits—all in one place. In 2022, the company created a new division in service of that goal. Digital@FEMSA partnered with IDEO to build that ecosystem, which would not only add convenience, but more value for each peso customers spent in both in-person and digital interactions.
Digital@FEMSA creates a super app to better serve the 30 million Mexicans who frequent its network of OXXO stores.
Digital@FEMSA creates a super app to better serve customers at its OXXO stores.
Femsa
North America
Femsa
In Mexico, redefining retail, Femsa, consumer products, retail, consumer experience, retail innovation, digital transformation, digital experience, digital product design, UX design, systems thinking, systems design, service ecosystem, behavior change, behavioral design, customer engagement, retail experience, store of the future, financial services innovation, banking experience, financial inclusion, understanding user needs, how to design a digital product, innovation, customer experience, user experience, product design, research, prototyping, transformation, financial services

A hotel brand for new travel paradigms

IHG introduces Garner, a midsize brand elevated by thoughtful design.

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Case study
Case Studies
Breakthrough Products
Hospitality
Consumer Products & Retail

Midscale hotel brands are the fastest-growing hotel segment in the US, attractive to both travelers and hotel owners. But often, their messaging feels repetitive, and travelers have a tough time differentiating between them. With a warm, thoughtfully designed midscale brand, IHG had an enormous opportunity to distinguish itself in a crowded market. 

IHG’s goal was to deliver a guest experience that felt genuinely unique and resonant—and quickly. With costs on the rise, many owners were motivated to turn toward conversion brands, which allow them to refurbish hotels under a new brand rather than invest in construction, a way to grow their portfolio in a tight financing market. Meanwhile, IHG’s competitors were set to introduce new conversion brands of their own. The company was looking for a partner that could work swiftly and iteratively to deliver a distinct brand.

For the IDEO team, the answer lay in communicating the brand’s value, starting with a custom logo rendered by hand. Inspired by vintage sign painting and modernist typography, the team sketched different versions of the letterforms, reviewing them with IHG until they had a set that brought to life the generosity and sense of invitation associated with the hotel’s spaces. They also worked to ensure the wordmark was visually balanced and would translate well across a variety range of scales. From there, they built an expansive brand world, including bespoke navigation icons, a full interior and exterior signage system, and a video to support the Garner launch.

The result is a hotel brand that stands apart in its category for both travelers and owners: thoughtful and well-designed yet affordable. As competition in the midscale segment continues to increase, Garner has been central to IHG’s growth strategy. Launched in the fall of 2023, Garner opened 100 hotels worldwide in just 16 months, making it the fastest-ever IHG brand to scale globally. The brand’s increasing popularity among owners and developers is driven by the growing demand for conversion properties, which accounted for 52% of IHG’s room openings in 2025. Garner plans to continue its rapid expansion with nearly 80 additional hotels in 12 key markets, including the US, Mexico, Italy, and Japan.

Conversions account for 12% of the global hotel pipeline, enabling hotels to switch brands and refurbish, boosting revenue without expensive construction.

The US midscale hotel segment, valued at $14B, is expected to reach $18B by 2030.

100 new Garner Hotels

in less than 3 years—the fastest-scaling brand in IHG's history

500 Garner Hotels

planned in the next 10 years; 1,000 over the next 20
The pandemic ushered in a new era of travel that galvanized dramatic changes in the hotel industry. Remote workers began to blend business and leisure trips (“bleisure”) at an unprecedented rate, smaller market cities grew in popularity and size, and guests craved more flexible and authentic hotel experiences. At the same time, major economic disruptions led to tighter lending and higher interest rates and construction costs, which made building new hotels prohibitively expensive. Renovations became out of reach for many hotel owners. IHG Hotels & Resorts wanted to create a new midscale conversion brand to meet this moment, providing the warmth and design considerations that guests crave and offering hotel owners a way to distinguish themselves from the competition. In 2023, IHG partnered with IDEO to build Garner, a hotel brand designed to cultivate a welcoming and adventurous atmosphere.
IHG and IDEO build Garner, a competitive midsize brand created for a new era of travel.
IHG builds Garner, a competitive midsize brand for a new era.
IHG
North America
IHG
A hotel brand for new travel paradigms, hotel design, hotel experience, IHG, hospitality innovation, guest experience, travel experience, consumer products, retail, consumer experience, retail innovation, brand strategy, brand design, brand identity, brand experience, growth strategy, business growth, scaling innovation, hospitality design, future of hospitality, how to build a brand, innovation, strategy

Moving dementia care forward

Together Senior Health provides digital solutions to combat cognitive decline.

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Case study
Case Studies
Breakthrough Products
Health

Alzheimer’s and dementia are notoriously difficult to treat—and scientists estimate that some 50 percent of people who have dementia are undiagnosed. Recognition of symptoms and early intervention are key. Together and IDEO set out to conduct user research to inspire new products that would help patients with cognitive decline take charge of their brain health.

The first priority was to expand the reach of the Moving Together program, which combines group movement exercises with mindfulness techniques, led by a trained group instructor. The IDEO team conducted remote and in-person interviews in Florida, where one in five residents is age 65 and older, and rates of Alzheimer’s and dementia are among the highest in the country. One of the key insights the team discovered was that many older adults didn’t understand how behaviors like smoking, exercise, and diet can be risk factors for cognitive decline. Their input inspired a new design principle for the program: “No naked feedback.” Any time participants received health coaching advice about modifying their lifestyle, they would also be given resources on why and how to do it, so they would have a pathway to boosting their brain health. 

The IDEO team folded insights like this one into the design for four new product offerings, including personalized brain health education, new online community engagement tools, partnership programs, and health coaching services, as well as a new user interface to illustrate them. Along with Together they also developed an implementation roadmap of next steps to bring the new digital product offerings to market, such as hiring a brain health coach and creating a new course curriculum. Now, Together has enrolled 165 people in the Boost Your Brain Health Clinical Trial, which is looking at outcomes such as reduced risk of Alzheimer's and maintenance of cognitive function for the Brain Health Together program. With trial completion in Q3 2024 and product launch in early 2025, growing numbers of people with MCI will have access to this exciting program. Together incorporated almost all of the elements from the IDEO roadmap into the final curriculum, and the team often refers back to insights the team gathered as guiding design principles.

Fighting barriers to diagnosis

With its online program growing, Together wanted to take on an even bigger problem: dementia underdiagnosis. Co-founder Dr. Deborah Barnes had recently developed an algorithm that uses patients’ health records to calculate their risk of undiagnosed dementia, called the electronic health record Risk of Alzheimer's and Dementia Assessment Rule (eRADAR). Together was looking to find creative ways to equip and empower providers to use risk scores like eRADAR in primary care settings.

One piece of the puzzle? Many primary care doctors are unaware that better management of Alzheimer’s disease and dementia can have a positive impact on other chronic health issues—like diabetes, hypertension, and depression. So by encouraging providers to prioritize dementia care, they can help support the overall health of older adults with cognitive decline. The IDEO team recommended a curriculum for continuing education courses for doctors that make that link clear—another step toward increasing dementia diagnosis and improving overall health.


Better help, sooner

To understand the patient experience, Together and IDEO decided to work directly with patients and caregivers to uncover what was stopping them from asking for dementia screening. The IDEO team quickly learned many patients were afraid of facing a diagnosis that signified a loss of agency and control, especially when they didn’t believe there were good treatment options. Often, they were unaware that there were things they could do to improve their brain health. They needed to know what steps to take after a diagnosis, and who could provide actionable advice. In response, the IDEO team designed a digital activity toolkit and physical booklet to guide patient families through the early stages of a dementia diagnosis, including recognizing the signs and symptoms, having better conversations with their doctor, and getting connected to support groups and programs like Moving Together.

Solving the problem of dementia underdiagnosis involves complex systems-level thinking and designing for the entire health ecosystem of patients, providers, and insurance payers, and solutions for Alzheimer’s and dementia care are still in their infancy. But already, this work is empowering patients and doctors to prioritize brain health and get screened sooner, and Together, which has since been acquired by Linus Health, is still working to move dementia care forward.

Approximately 12-18% of people aged 60 or older live with mild cognitive impairment, while memory loss, Alzheimer's and dementia affect more than 50 million people around the world.

An estimated 50% of people living with dementia are undiagnosed.

165 enrolled

in the Boost Your Brain Health Clinical Trial
Around the world, more than 50 million people are affected by memory loss, Alzheimer's, and dementia. As a Stanford d.school graduate and early employee at IDEO, Cynthia Benjamin understood the potential of human-centered design to create tools and experiences that could improve health outcomes. In 2017, Cynthia teamed up with longtime friend Dr. Deborah Barnes, a leading epidemiology researcher at University of California at San Francisco (UCSF), to co-found a new venture focused on treating and preventing neurodegenerative diseases. They started Together Senior Health and worked to scale their evidence-based, in-person intervention program for people with cognitive decline. Even before the pandemic hit in 2020, they realized the program would need to go online to reach more people. They started by adapting the in-person program for online delivery. With this new format, Together then contacted IDEO to help expand the reach of their program, Moving Together, make it more engaging for adults with early cognitive decline, and create better pathways to diagnosis.
A physician-led startup expands tools to combat cognitive decline, and creates smoother pathways to diagnosis.
Together Senior Health helps people take charge of their brain health.
Together Senior Health
North America
Together Senior Health
Moving dementia care forward, diabetes care, diabetes management, Together Senior Health, healthcare, health innovation, patient experience, digital transformation, digital experience, digital product design, UX design, venture design, new business creation, business model innovation, growth strategy, business growth, scaling innovation, human centered design, design thinking, customer centricity, healthcare design, digital health, patient-centered care, education innovation, student experience, future of education, employee experience, workplace design, team collaboration, understanding user needs, how to launch a new business, how to design a digital product, innovation, strategy, product design, research, user research, startup, transformation, education

Culture as catalyst

Moderna defines its Mindsets to preserve its future.

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Case study
Case Studies
Creative Capabilities
Health
Learning & Work

Many companies view culture-building initiatives as nice-to-haves. At Moderna, Mindsets are a business imperative, crucial to its plans to develop breakthrough products quickly.

For companies working on solutions as vital as a COVID-19 vaccine, delays and mistakes don’t just mean missing a product launch date—they’re life-or-death, and on a large scale. Moderna had to ensure that its employees knew how to make the right decisions, evaluate risk, and move quickly—even if they came from organizations with more bureaucracy and less risk tolerance. In 2021, IDEO sat down with longtime Moderna veterans to hear stories about moments that exemplify the company's culture, like the day a critical piece of equipment arrived but was too big to fit through the door. Taking it apart would have added days to their timeline. So employees took sledgehammers to a wall instead. Stories like this one fed into the crafting of the list of Mindsets, such as “Act with urgency: Action today compounds the lives saved tomorrow” and “We behave like owners: The solutions we’re building go beyond any job description.”

To gather feedback, the team shared the draft Mindsets with a diverse set of employees—new hires, veterans, folks already closely aligned with the culture, folks for whom it wasn’t the most natural fit, and a plethora of employee resource groups. CEO Stéphane Bancel and the leadership team took crafting and iterating on the Mindsets very seriously, wordsmithing and tweaking them with the team until they were ready to share them officially. Now, new hires learn about the company’s Mindsets in Moderna ONE, an onboarding process that IDEO helped revamp, while existing employees attend a workshop to ensure everyone at the company knows not only what to do but also how to do it effectively. In a matter of weeks, IDEO helped Moderna codify its culture for employees and set the company up for continued success. Moderna continues to embed these Mindsets across the entire employee lifecycle to systematically scale its culture.

For employees new and old, the clarity of the Mindsets has made it easier to understand expectations and to understand the company itself. Long-term veterans responded with comments like, "These really help explain why we're working this way,” while one newbie said, "It feels like a homecoming to hear the culture that we’re trying to bring through.” But more than just solving a cultural issue, the new Mindsets have fulfilled a business imperative: Holding on to the secret sauce that made Moderna successful to begin with, setting the stage for its next five years of breakthroughs.

When the World Health Organization (WHO) declared the COVID-19 health crisis a pandemic in March of 2020, Moderna had fewer than 1,000 employees. Four years later, it’s more than five times the size.

Ranked #1

BioSpace Best Place to Work, large company in 2024

Ranked #6

Boston Consulting Group’s 50 Most Innovative Report in 2023

Ranked #4

Deloitte’s Technology Fast 500 List in 2023
In early 2020, Moderna delivered a COVID-19 vaccine to human clinical trials in just 42 days after finalizing the vaccine sequence, setting a record for the pharmaceutical industry. But what seemed like a miracle was engineered by a culture that embraced speed and accepted risk, setting the stage not just for the rapid development of a COVID vaccine, but for work on potential breakthrough products against other viruses and diseases, and even cancer. As the company went through a phase of extraordinary growth to protect millions of people around the world as quickly as possible, it faced an existential threat: Bringing in hundreds of new people from more established pharma companies could dilute its entrepreneurial culture, the very foundation Moderna was built on, and make the platform company less prepared to take on new diseases in the future. In 2021, Moderna partnered with IDEO to help codify its culture and values into a set of Mindsets that drive crucial innovation, a business imperative that has set the stage for its next goal: advancing its broad, diverse portfolio to deliver transformative mRNA medicines for patients.
Moderna defines its culture to maintain its momentum during a time of massive growth, setting the stage for delivering transformative new mRNA medicines.
A clarified culture helps the biotech company navigate the future.
Moderna
North America
Moderna
Culture as catalyst, veteran housing, accessible housing, Moderna, healthcare, health innovation, patient experience, education innovation, learning experience, future of work, digital transformation, digital experience, digital product design, UX design, growth strategy, business growth, scaling innovation, business transformation, organizational transformation, culture change, healthcare design, digital health, patient-centered care, future strategy, strategic futures, designing for the future, innovation strategy, business innovation, design innovation, how to innovate, how to design a digital product, innovation, strategy, product design, transformation, leadership, education, learning, how do we innovate

How One Designer Learned to Love Constraints

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

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Article
Articles

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

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

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

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

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

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

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

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

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

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

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

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

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how one designer learned to love constraints, user research, research, experimentation, testing new ideas, creativity, creative confidence

Don’t Throw Away Your Innovation Budget

How to avoid the common missteps that kill good ideas

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Article
Articles

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

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

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

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

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

The Outcome Trap

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

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

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

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

So, how can you avoid the Outcome Trap?

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

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

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

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

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


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

The Incentive Trap

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

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

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

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

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

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

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

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


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

The Metrics Trap

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

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

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

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


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

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

Visuals by Gracia Lam.

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

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

Why Everyone at the Office Should Care About Workplace Culture

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

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Articles

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

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

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

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

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

READ: What Org Design Actually Looks Like

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

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

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

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

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

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

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

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

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

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

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

Serverless Computing: the Instapot of Digital Problem Solving

How this technology is like making chili—sort of

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

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

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

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

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

No humans were harmed in the making of this metaphor.

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

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

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

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

Food truck army: go forth and chili.

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

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

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

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

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

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

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

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

Lindsey Turner

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

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

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

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

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

I have a thing for antique maps.
Developing China-led innovation and capabilities'
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Episode image

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.

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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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