Eureka Case 26 min Undergrad

The Prototype Rules

You lead product innovation at a company in Bilbao. You want to create something genuinely new, and two comfortable paths sit on the table: ask customers which features they want and build that list, or let engineering build what it considers technically best. But innovation rarely comes from there. It comes from observing how people actually behave —their unspoken needs— and prototyping fast to learn. That's how IDEO works; that's how Bank of America's "Keep the Change" was born, by observing that people round up and want to save effortlessly.

The situation

The design thinking approach rests innovation on three pillars: empathy (observing the user's real behavior and needs, not what they say), rapid prototyping (building rough versions to learn early), and iteration (improving with every test). Its counterintuitive idea is that the best opportunities lie in unarticulated needs: people can't ask for what doesn't exist yet. IDEO turned observation and prototyping into a method; Bank of America created "Keep the Change" —round up the purchase and save the difference— by observing what people already did and wanted, not by asking which feature they wanted.

Here's the trap, in two directions. Asking customers which features they want feels rigorous and "customer-centric," but people can only ask for improvements to what they already know: they describe the past, not the unspoken need; you get an incremental list, not an innovation. And building what engineering thinks is best produces elegant technical feats that solve no real need: in love with the solution, you ignore the problem. The defensible move is to observe real behavior and prototype: uncover unarticulated needs by watching what people do, and learn fast and cheap with prototypes before committing to full development.

Your job in this case: see how the unarticulated needs you uncover, the wasted rework, and the innovation success shift with how much you observe and prototype —and decide where your innovation comes from.

The decision

Where does your innovation come from?

  • A · Ask customers which features they want
  • B · Build what engineering thinks is best
  • C · Observe real behavior and prototype

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