Merges companies with David Kelley and Mike Nuttall, founding IDEO
Context: Moggridge's ID Two, David Kelley's David Kelley Design, and Mike Nuttall's Matrix Product Design — three Silicon Valley design firms — merged to form IDEO. Moggridge contributed interaction design methodology, Kelley contributed product design research, Nuttall contributed engineering design capability.
Decision: Chose merger rather than expansion, enhancing competitiveness by integrating complementary capabilities rather than purely expanding scale
Reasoning: Truly systematic innovative design requires complete integration of industrial design, interaction design, and engineering; the expertise of the three firms was perfectly complementary
Outcome: IDEO became the world's most influential design consulting firm, spreading human-centered design methodology to corporations and organizations worldwide
Lesson: Merging complementary professional capabilities creates far greater synergistic value than each expanding independently — the whole is greater than the sum of parts