Launched in 1959, Mattel’s Barbie doll has been a defining childhood experience for generations of American children, particularly girls. In 2020, Mattel sold more than $1.3 billion worth of Barbie dolls and accessories. Over the decades Barbie has worked to become more diverse and inclusive, incorporating a range of skin tones and hair styles to incorporate racial diversity and dresses and physical characteristics to represent a range of national origins even as the brand has gone increasingly global. But Barbie’s biggest challenge has been the onset of the digital age. Today, children look to computers, smartphones, and other mobile devices for interactive and engaging games, entertainment, and social networking. Barbie made some early attempts to go digital. These included Barbie Video Girl, which recorded short, uploadable video snippets; and the networked Hello Barbie, which featured the ability to hold short conversations with users, drawing on responses from an artificial intelligence– enabled algorithm that worked in conjunction with a virtual database. But both efforts floundered in the face of privacy and security concerns. Barbie’s future in the digital world remains uncertain.

What changes must Mattel make in the new product development process to enable it to thrive in the digital age?