IDEO (formed in 1991) is an international design and innovation consultancy founded in Palo Alto, California, United States with other locations in San Francisco, Chicago, New York, Boston, London, Munich, Shanghai, Singapore, Mumbai, Seoul, and Tokyo. The company helps design products, services, environments, and digital experiences. Additionally, the company has become increasingly involved in management consulting and organizational design.
There are two Business Models those IDEO develop:
- Consulting services:
The majority of IDEO revenues are from consulting services, structured in a variety of different ways. For long-term clients, there can be a multi-year contract with revenues in the millions. For others, it may be based on a per-project basis to try stuff out.
IDEO also has a toy lab called zero20 that has a licensing model for generating revenues. The company invents toys and then sells them to manufacturers.
IDEO helps other people to innovate. IDEO helps people to build business. IDEO helps people to grow. IDEO helps people to develop capabilities. IDEO makes people inspired of what they have done, and open for new ideas and they who are willing to develop their ideas into something real.
IDEO is a very good (self-) marketing & design firm but not an industry rocking firm. Large firms just love IDEO because IDEO just offers such a well designed process to solve the big problem of “being not innovative”. You hire IDEO for comforting yourself for not using your own common sense and your own customer insights. You just outsource your understanding of the customer to IDEO.