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Balancing Business + Usage + Technology by Daniel Walsh nuCognitive Agile Camp Dallas

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Balancing Business + Usage + Technology is a complex challenge for Product Managers and Product Owners. This talk introduces teams to the Three-Circle Model which can be used to deliver compelling solutions to customer problems. The model can also be used as the underlying architecture for a product lifecycle.

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Balancing Business + Usage + Technology by Daniel Walsh nuCognitive Agile Camp Dallas

  1. 1. @GoAgileCamp #AgileCamp2017 2017 Balancing Business+Usage+Technology Daniel Walsh @danielwalsh Founder
  2. 2. Balancing Business+Usage+Technology Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved.@danielwalsh LinkedIn.com/in/danwalsh1115 Three-Circle Model Life Cycle Case Studies & Exercise Q&A
  3. 3. 3 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Three-Circle Model Development *Reference: Norman, Donald. The Invisible Computer: Why Good Products Can Fail. 1998. @danielwalsh Don Norman’s Three-legged Stool* The Product Marketing
  4. 4. Three Fundamental Perspectives 4 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. The best solutions, platforms, and products are: Marketable, profitable, and affordable: desirable, useful, and usable: Manufacturable, functional, and consumable: Business Usage Technology @danielwalsh
  5. 5. The Three-Circle Model 5 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. The three circles combine to create seven regions: Compelling solutions are found in the center, balancing all three perspectives A system lacking sufficient coherence in all these areas will not be successful Technology Usage Business @danielwalsh
  6. 6. The Three-Circle Model 6 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. The Three-Circle Model is much more than just a picture The model also introduces a taxonomy and domain ontology for system design and development that relates the three major perspectives in detail The model is both descriptive and prescriptive, and is derived from practice and experience more than theory The Three-Circle Model provides concepts and vocabulary that aid discussion and description of system design and development @danielwalsh
  7. 7. Balanced Solution Development 7 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Each new system presents its own challenges, as does the environment surrounding the system, the experience of the development team, and many other factors Weighting the business, usage, and technology perspectives according to these factors makes sense; ignoring a perspective entirely does not Business Usage Although the three circles in the model are shown at the same size, there is a need for balance, not necessarily equality We need to develop solutions using a balanced, systematic approach @danielwalsh
  8. 8. Individual Circles Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved.8
  9. 9. Business | Economic Viewpoint 9 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Also represented are the economic aspects of interdisciplinary concerns, such as marketing and production The business perspective includes economic success criteria for the system, value network descriptions, and associated business models Profitable • Payback period • ROI1, NPV1 • Business models Marketable • TAM1, ASP1, MSS1 • Ecosystem, value networks • Brand implications • Relationship to other branded products Affordable • Development & manufacturing costs • Resource constraints 1 Total Available Market, Average Selling Price, Market Segment Share, Return on Investment, Net Present Value Example data: Business @danielwalsh
  10. 10. Business | Investment Flow 10 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. The financial view of the system involves the flow of investment Strategy helps transform the organization’s mission into objectives Objectives guide investment, yielding results The effect of the results is judged by comparison with objectives, and this effect is in turn judged in light of the mission All these activities are governed by financial disciplines, which form the basis of business models Business Finance Objectives Results Strategy Effect Mission @danielwalsh
  11. 11. Usage | Conceptual Viewpoint 11 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Also represented are the conceptual aspects of interdisciplinary concerns, such as marketing and design The usage perspective includes a description of the people who will use the solution, their conceptual model of it, and the associated usage models Usage Useful • Goals, needs, and tasks • Fit with mental models and physical abilities • Confidentiality, integrity, availability Usable • Ease of use • Intuitiveness, ease of learning • Reliability Desirable • Connection to human values • Willingness to pay • Aesthetics Example data: @danielwalsh
  12. 12. Usage | Experience Flow 12 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Usage Users Goals Satisfaction Human Values Needs & Wants Experience Qualities The users’ view of the system involves the flow of experience Human values shape needs & wants that lead people to set goals for solution use Goals shape experience during use, which yields some level of satisfaction via comparison with goals Experience qualities are key to interpreting satisfaction in terms of the underlying human values All these activities are centered on users and usage models @danielwalsh
  13. 13. Technology | Implementation Viewpoint 13 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Also represented are the implementation aspects of interdisciplinary concerns, such as design and production The technology perspective includes implementation architecture, workloads, and performance characteristics Manufacturable • Alignment with production capabilities • Required competencies • Supply chain readiness Functional • Effectiveness • Fitness for use Consumable • Compatibility with current infrastructure and services • Acceptability by community and personal standards Example data: Technology @danielwalsh
  14. 14. Technology | Workload Flow 14 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Tolerance is key in judging performance as well as validating the underlying engineering heuristics and parameters All these activities are based on and enabled by engineering disciplines Technology Engineering Performance Targets Tolerance Heuristics Parameters & Assumptions The engineering view of the system is illustrated through the flow of workload Parameters & assumptions help determine appropriate heuristics that lead to targets The workload is applied to the solution, which yields some level of performance via comparison with the targets @danielwalsh
  15. 15. 15 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Business Finance Objectives Results Strategy Effect Mission Usage Users Goals Satisfaction Human Values Needs & Wants Experience Qualities Technology Engineering Performance Targets Tolerance Heuristics Parameters & Assumptions Do You Want To Know More? | B vs U vs T @danielwalsh
  16. 16. Two-Circle Overlaps Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved.16
  17. 17. Two-Circle Overlaps 17 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Value relates business and usage This interaction defines how usage contributes to market share, competitive advantage, and positioning Capability relates usage and technology This interaction defines the interplay between usage, system architecture, and supporting technologies Ingredient relates technology and business This interaction defines how technologies drive profitability and marketability @danielwalsh
  18. 18. Value | Market Relationships 18 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Value Usage Business Brand The economic and conceptual models of the system are related through value Brand is a combination of physical, functional and emotional attributes Brand includes a name and a symbol, and is a foundation of marketing An offering consists of a product, service, or combination made available for sale by a business to a customer A promise is the anticipation of value created in the mind of a customer by marketing, user experience, and brand The market cycle unites the outside world with the economic and conceptual merits of the product, expressed as value, and focused on brand @danielwalsh
  19. 19. Three-Circle Integration Copyright © 2017 nuCognitive LLC. All rights reserved.19
  20. 20. Solution Life Cycle Milestones 20 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Opportunity An idea, event, or situation with favorable characteristics in business, usage, and technology Concept One or more abstract initial renderings of the eventual solution suitable to guide additional work Candidate One or more feasible, detailed realizations of the concept with validated value, capability, and ingredients Solution An integrated set of products and services that solves a customer problem and meets the requirements of the opportunity Creating effective solutions requires a consistent vision that pulls the team forward Obsolescence The end of support, with reuse and recycling of the existing solution as appropriate @danielwalsh
  21. 21. The Value of Early Solution Information 21 Copyright © 2017 nuCognitive LLC. All rights reserved. The Three-Circle Model focuses attention on the overall solution very early “You will find out how the system performs eventually… the only question is how soon?“ –Tom Gilb Sequential development processes often make system performance information available near the end of the process, once later milestones are met Early integration based on holistic system design allows for earlier understanding of how the system functions and performs Early information about system performance allows for agility in the development process and prevents extensive rework later on @danielwalsh
  22. 22. The Three-Circle Model Regions 22 Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved. Integrating business, usage, and technology combines ingredients to provide capabilities that deliver value Business Value Ingredient Capability Usage Technology @danielwalsh
  23. 23. Applications and Case Studies users Presentation Copyright © 2017 nuCognitive LLC. Materials Copyright © Erik Simmons. All rights reserved.
  24. 24. Application: Fixing a “Stuck” Technology Presentation Copyright © 2017 nuCognitive LLC. Materials Copyright © Erik Simmons. All rights reserved. A team working on an interesting new technology is having trouble getting their technology placed into ingredients and products It seems like it would be simple, since the Ingredient region is right next to the Technology circle But demanding inclusion in the specification has led only to arguments and frustration @danielwalsh24
  25. 25. Fixing a “Stuck” Technology Presentation Copyright © 2017 nuCognitive LLC. Materials Copyright © Erik Simmons. All rights reserved. Rather than trying to force acceptance as an ingredient without supporting data, the technology team must make its case by showing it satisfies the entire model With the proper data, the team can show that their technology enables capabilities that support usages that add value to the company’s business After traveling this path, the technology is much more likely to be included in ingredients and products because the team is able to speak in a balanced way to all regions of the model with sufficient detail @danielwalsh25
  26. 26. Diagnosing Issues in Solution Development Presentation Copyright © 2017 nuCognitive LLC. Materials Copyright © Erik Simmons. All rights reserved. The Three-Circle Model can serve as a diagnostic tool for teams that are struggling to produce compelling solutions, or who need to improve their solution development process Draw the Three-Circle model on a whiteboard and place sticky-notes describing development activities, specifications, etc. on the model in the appropriate areas Typically, some areas of the model are well populated, and others are empty Individuals can identify priorities and propose additions or changes to what is specified The result is a strategy for closing gaps, eliminating redundancy, and improving overall solution definition ? @danielwalsh26
  27. 27. Balancing Business+Usage+Technology Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved.@danielwalsh LinkedIn.com/in/danwalsh1115 Thank you for your participation! Any feedback on session is appreciated! www.nuCognitive.com daniel.walsh@nuCognitive.com http://bit.ly/walshslides

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