BarCamp Perth 2008 - Real Options in Development

BarCamp Perth 10 May 2008 Real Options in Development By Marc Lehmann | Director/Founder

About Saasu The web finance engine.

Real Options The right, but not the obligation, to undertake some business decision, typically the option to make a capital investment. http://en.wikipedia.org/wiki/Real_options_analysis

Crazy Person Be a crazy inventor, there's not enough time to be any other way.

Inventions Inventions are cheap real options. Prototyping & Trials.

Strange(ness) Strange is good. Strange is a real option that has no known upside but quite often the cost is well known.

Strange Attractors The option management has to mix odd skills in development, architecture or business models can cause unexpected results.

Features The choice, decision, or system that choses the feature set holds a real option. Is is mart enough to know what to exercise and what not to?

Abstain Some real options are better not exercised such as the choice of brand early in a product lifecycle. You give up the real options to act on customer feedback and test brands in smaller markets first.

What Floats Exploit your real options. Throw stuff in the river to see what floats. Try stuff on. Try stuff out.

Organic Engineering Nature buys lots and lots of options when it produces a multiplicity of offspring. Nature has engineered itself to ensure it has as many options up its sleeve as possible - for survival.

Organic Probability Nature creates many random variations and some variations survive an prosper. Others fade and die. Nature is the original Venture Capitalist.

Option = Choice 1. Create 1 large feature over a year 2. Create 10 small features over a year and terminate what doesn't work 2 trumps 1 every time 2 has natural selection

Maths Let the maths decide. Emotive, personal, instinctive has its place but as portfolio management shows, very few are good at getting it right this way.

Brand Options When building product or thematic brands below you main brand domains are an example of cheap options. Buy words, names and things you like for $7.99 just in case you need them.

Automation One real option a developer holds is the choice to automate or not. This crosses testing, help systems, service, et al. The option to automate has a premium. Keep assessing these options to see what needs to be exercised.

Marc Lehmann marc@saasu.com skype: marcleh twitter: marclehmann mobile: +61 434 033 945 web: saasu.com blog: saasu.com/blog personal blog: marclehmann.net linkedin: www.linkedin.com/in/marclehmann Copyright 2008 Saasu Pty Ltd, 1st Floor, 111 Elizabeth St Sydney, Australia 2000

BarCamp Perth 2008 - Real Options in Development

by Marc Lehmann on May 29, 2008

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