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Here is P&G and IDEO's case...interesting read from an article in Business week-
"To understand why the creativity movement is becoming so important, you need to go back to its roots at P&G. By harnessing the power of design, P&G has transformed itself from a stagnant brand manager into a model of innovation efficiency that outperforms industry rivals.Before Lafley, P&G's volume growth was basically flat. The company cared more about how its products functioned than it did about how customers felt about them. "P&G had the best chemical engineering and marketing operations in the country," says Patrick Whitney, director of the Institute of Design at Illinois Institute of Technology. "It didn't care about the user experience." P&G could tell retailers to stock eight kinds of Crest, and they did. As power shifted to big retailers, P&G couldn't do that. "It had to create new products, and to do that, P&G had to get closer to the consumer," says Whitney.Fresh EyesLafley turned to design. In 2001 he established a new executive post: vice-president for design, innovation, and strategy, naming Claudia B. Kotchka, now 53, to fill it. She and Lafley knew they couldn't change P&G's culture without fresh eyes from the outside. So they made a major decision: Even as P&G began laying off thousands of top executives, middle managers, scientists, and others, it quadrupled its design staff. For the first time it hired a legion of designers who had worked at other companies and in other industries.In a second crucial decision, Kotchka dispatched designers to work directly with R&D staffers to help to conceive new products. This changed P&G's entire innovation process, making it consumer-centric rather than driven by new technology. To open up the company further, P&G started hiring different kinds of consultants. Among them were Design Continuum; ZIBA Design in Portland, Ore.; Chicago's Doblin Inc.; and IDEO in Palo Alto, Calif.Here's how it works at P&G: Kotchka contacts P&G's divisional heads, asking for a list of possible opportunities designers might address. Recently, the head of home care said it was time to look at bathroom cleaning. Kotchka brought in IDEO with the goal of helping out. IDEO and P&G's designers went out and observed people cleaning bathrooms around the world. In South America they saw women using brooms to clean walls and showers effectively and built a prototype combining a small hand cleaner with a long pole. P&G tested the idea via a survey. People hated it.But P&G hung in there. What is fast becoming the Holy Grail of innovation -- the "unmet, unarticulated" needs of consumers -- didn't show up in the survey. Instead, P&G relied on the informed intuition of designers and tested the idea again, using working prototypes. People loved the real thing. P&G then broke down the walls of its Mr. Clean brand, reached in and used the Mr. Clean detergent for the new product. The Mr. Clean MagicReach was introduced in April -- with a four-foot detachable pole. Mundane as this example may be, it shows how design strategy can generate innovative new products and sales.
Here is P&G and IDEO's case...interesting read from an article in Business week-
"To understand why the creativity movement is becoming so important, you need to go back to its roots at P&G. By harnessing the power of design, P&G has transformed itself from a stagnant brand manager into a model of innovation efficiency that outperforms industry rivals.Before Lafley, P&G's volume growth was basically flat. The company cared more about how its products functioned than it did about how customers felt about them. "P&G had the best chemical engineering and marketing operations in the country," says Patrick Whitney, director of the Institute of Design at Illinois Institute of Technology. "It didn't care about the user experience." P&G could tell retailers to stock eight kinds of Crest, and they did. As power shifted to big retailers, P&G couldn't do that. "It had to create new products, and to do that, P&G had to get closer to the consumer," says Whitney.Fresh EyesLafley turned to design. In 2001 he established a new executive post: vice-president for design, innovation, and strategy, naming Claudia B. Kotchka, now 53, to fill it. She and Lafley knew they couldn't change P&G's culture without fresh eyes from the outside. So they made a major decision: Even as P&G began laying off thousands of top executives, middle managers, scientists, and others, it quadrupled its design staff. For the first time it hired a legion of designers who had worked at other companies and in other industries.In a second crucial decision, Kotchka dispatched designers to work directly with R&D staffers to help to conceive new products. This changed P&G's entire innovation process, making it consumer-centric rather than driven by new technology. To open up the company further, P&G started hiring different kinds of consultants. Among them were Design Continuum; ZIBA Design in Portland, Ore.; Chicago's Doblin Inc.; and IDEO in Palo Alto, Calif.Here's how it works at P&G: Kotchka contacts P&G's divisional heads, asking for a list of possible opportunities designers might address. Recently, the head of home care said it was time to look at bathroom cleaning. Kotchka brought in IDEO with the goal of helping out. IDEO and P&G's designers went out and observed people cleaning bathrooms around the world. In South America they saw women using brooms to clean walls and showers effectively and built a prototype combining a small hand cleaner with a long pole. P&G tested the idea via a survey. People hated it.But P&G hung in there. What is fast becoming the Holy Grail of innovation -- the "unmet, unarticulated" needs of consumers -- didn't show up in the survey. Instead, P&G relied on the informed intuition of designers and tested the idea again, using working prototypes. People loved the real thing. P&G then broke down the walls of its Mr. Clean brand, reached in and used the Mr. Clean detergent for the new product. The Mr. Clean MagicReach was introduced in April -- with a four-foot detachable pole. Mundane as this example may be, it shows how design strategy can generate innovative new products and sales.
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