Lecture 7

PRODUCT DEVELOPMENT DISRUPTION

6. PRODUCT DEVELOPMENT

Businesses used to be top down. Products would be researched, developed, made and

marketed. Now businesses are emerging from interaction with the customer. In many cases

the customer is becoming the business. Product development is changing. Previously quite

regimented processes were observed in secrecy but now we are seeing open source

businesses that openly use customers to test and co develop. Labs are now a common

feature in businesses as diverse as soap manufacturers and Ad agencies. Data driven NPD is

on the rise as companies get more and more data through their doors.

We will look at contemporary Product development approaches including Agile, Iterative,

Crowdsourscing open source and JFDI.

“ IN THE MODERN WORLD OF BUSINESS, IT IS USELESS TO BE A CREATIVE ORIGINAL

THINKER UNLESS YOU CAN ALSO SELL WHAT YOU CREATE. MANAGEMENT CAN NOT BE

EXPECTED TO RECOGNIZE A GOOD IDEA UNLESS IT IS PRESENTED TO THEM BY A GOOD

SALESMAN”. (DAVID OGILVY) .

"A SENIOR BANKING TECHNOLOGIST HAS SAID TO ME: 'A RETAIL BANK IS NOTHING BUT

AN IT COMPANY WITH A BANKING LICENCE' ," CHAN TOLD THE REG . "WHILE THIS MAY

SEEM EXTREME, WHEN ONE LOOKS AT THE ECONOMICS OF ANY RETAIL BANK , IT IS CLEAR

THAT THIS IS THE CASE.“

D AV I D C H A N O F C I T Y U N I V E R S I T Y LO N D O N . H T T P : / / W W W . T H E R E G I S T E R . C O . U K / 2 0 1 2 / 0 8 / 0 1 / H O W _ C A N _ B A N K S _ S T O P _ I T _ C R A S H E S _ H A P P E N I N G _ A G A I N

CONTIGUOUS PEOPLE

WATERFALL – STAGE/GATE

AGILE

SO, WHAT IS AGILE?

Minimum viable state

Iterative

Flexible

Developer led

Reactive

OPEN SOURCE

http://www.industrialized-software.org/it-standards:managing-commodity-products-and-services

OPEN INNONVATION

http://www.nurturenergy.com

NEW INNOVATION

Ideas driven innovation is akin to someone having an idea to make a particular product and then pursuing how to do that; like sailing into the sea and casting a massive net in the hope of catching as many fish as one can..

Challenge driven innovation is a process that is targeted and uses much more interaction with consumers, employees etc. as well as iterative development.

Features of this include attaining minimal viable state, launching and then iterating.

HOWE’S FOUR PRIMARY CATEGORIES OF CROWDSOURCING

1.Collective Wisdom

2.Crowd Creation

3.Crowd Voting

4.Crowd Funding

http://www.wired.com/wired/archive/14.06/crowds.html

CROWDSOURCING ISSUES

Picking the right crowd

Offer the right incentives

Don’t try and replace employees

Give direction and guidance

Keep it simple and in small manageable objects

The 1/9/90 rule

The community is always right

What can you do for the crowd?

http://irevolution.net/2010/05/05/towards-a-model-for-successful-crowdsourcing/