New Product Development: Old vs New
Old NPD
Developed markets
Industrial Enterprises
Large R&D $$$s
$(Technology) >> $(People)
Closed Innovation
Technology-driven
Forecast based Production
Long gestation period
Top 3 / Land grab
Mostly Commercial
Slow upgrade cycle
New NPD
Saturated + emerging markets
Knowledge-based enterprises
Small Startup $s (and ¢)
$(Technology) << $(People)
Open Innovation
User needs-driven
Feedback based Design
Short experimentations
Long tail / Zero Billion $
Often Social Innovations
Fast upgrade cycle
Many reasons, but my 2¢…
Uncalibrated assumptions
about the constantly
changing opportunity,
market, products and
customer needs
Stealth mode mindset that
gives no opportunity to get
early real-world feedback
for course correction
Poor collaboration
among internal
stakeholders leading to
conflicts, delays in
decision-making and
execution, duplication of
efforts and diffusion of
responsibility, among
others
Premature Scaling up
too soon before all aspects
of opportunity, market,
products and customer
needs have been validated
How about the scientific method…
“a method or procedure
that has characterized
natural science since
the 17th century,
consisting in systematic
observation,
measurement, and
experiment, and the
formulation, testing,
and modification of
hypotheses”
http://www.moisiadis.com/creation_science/Scientific%20Method%20edited.JPG
Would it solve all problems?
The scientific method is a pattern of
problem-solving behavior employed
in finding out the nature of what
exists, whereas the design method is
a pattern of behavior employed in
inventing things of value which do
not yet exists. Science is analytic,
design is constructive.” (Gregory,
1966)
…and how does our product
development process look like?
“The Stage-Gate system assumes that the proposed strategy is the right strategy; the
problem is that except in the case of incremental innovations, the right
strategy cannot be completely known in advance. The Stage-Gate system is not
suited to the task of assessing innovations whose purpose is to build new growth
businesses, but most companies continue to follow it simply because they see no
alternative.”
Clayton Christensen, “The Innovator’s Dilemma”
Does Agile help?...yes, but…
http://www.infoq.com/resource/news/2008/01/iterating-and-incrementing/en/resources/Patton_Incremental_Iterative_MnaLisa.jpg
What if you didn’t
know if you wanted a
painting, a sculpture or
a mousetrap, a
Monalisa or a Facebook
or a Porsche?
How would you
design and
develop
something the
world hasn’t
known yet?
How Children Learn?
Holt observed hundreds of children and came to an
interesting conclusion. He found that the best
learners are also the ones that are having the
most fun. The best learners are the ones that like
to play with the noise around them.
Play doesn’t work if it isn’t fun, which means that
learning in times of chaos and change will tend to
work best when it is fun as well. Play minus fun
equals labor, which doesn’t have the same
learning benefits.
http://news.noahraford.com/?p=203
Minimize
TOTAL time
through the
loop
Instead of making complex plans
that are based on a lot of
assumptions, you can make
constant adjustments with a
steering wheel call the Build-
Measure-Learn feedback loops.
Through this process of steering,
we can learn when and if it’s time
to make a sharp turn called a pivot
or whether we should persevere
along the current path
The MVP is that version of a new
product which allows a team to
collect the maximum amount of
validated learning about
customers with the least effort or
development time. The MVP lacks
many features that may prove
essential later on.
MVP is not a minimal product!
Validated Learning
• Validated learning about customers is the measure of progress in a Lean
Startup – not lines of working code or achieving product development
milestones.
• Process in which one learns by trying out an initial idea and then
measuring it to validate the effect. Each test of an idea is single iteration in
a larger process of many iterations whereby something is learnt and the
lessons applied to the succeeding tests.[1]
• Typical steps in validated learning:
– Specify a goal
– Specify a metric that represents the goal
– Act to achieve the goal
– Analyze the metric - did you get closer to the goal?
– Improve and try again
To conclude…
Solving a problem
makes us happy
Happy minds are
better learners
Continuous
feedback amplifies
learning
Experimentation is
a great way to
solve problems
and get feedback
And remember…in the end, there is no
such thing as a „problem‟
http://www.modernanalyst.com/Resources/BusinessAnalystHumor/tabid/218/articleType/ArticleView/articleId/1742/Problem_Solving_Process_for_Business_Analysts.aspx
Business schools tend to focus on inductive thinking (based on directly observable facts) and deductive thinking (logic and analysis, typically based on past evidence)," he writes. "Design schools emphasize abductive thinking—imagining what could be possible. This new thinking approach helps us challenge assumed constraints and add to ideas, versus discouraging them = Lafley Wikipedia: As a style of thinking, design thinking is generally considered the ability to combine empathy for the context of a problem, creativity in the generation of insights and solutions, and rationality to analyze and fit solutions to the context. This differs from the scientific method, which starts with defining all the parameters of the problem in order to define the solution. Rather, the design way of problem solving starts with a solution in order to start to define enough of the parameters to optimize the path to the goal. The solution, then, is actually the starting point. Design thinking is a solution-based approach to solving problems, and is especially useful when addressing what design thinkers refer to as Wicked Problems. Wicked problems are wicked in the sense that they are ill-defined or tricky, not wicked in the sense of malicious.[16] For ill-defined problems, both the problem and the solution are unknown at the outset of the problem-solving exercise. This is as opposed to "tame" or "well-defined" problems where the problem is clear, and the solution is available through some technical knowledge.[17] The design thinking process is best thought of as a system of overlapping spaces rather than a sequence of orderly steps. There are three spaces to keep in mind: inspiration, ideation, and implementation. Think ofinspiration as the problem or opportunity that motivates the search for solutions; ideation as the process of generating, developing, and testing ideas; and implementation as the path that leads from the project stage into people’s lives.