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The System is the Product
                                                                 Adam Richardson / Director of Product Strategy
                                                                                                                   SVPMA


                                                                                                         August 3, 2007




© 2007 frog design. confidential & proprietary.
                                                                                                                       1
                                                 © 2007 frog design. confidential & proprietary.   August 3, 2007
 SVPMA   The System is the Product
We are a strategic-creative consulting firm.
             frog brings a unique combination of strategic and creative talent to help
            companies envision, realize, and deliver actionable strategies for growth.
               Our rigorous yet unorthodox approach yields breakthrough innovation
                                and a sustainable competitive edge.




                                                                                                                                   2
                                                                 © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
325 people from 32 countries. 39 years global experience.




        Seattle, WA
        USA
                                                 New York, NY USA
                                                                    Stuttgart, Germany
San Francisco, CA USA                                                        Milan, Italy
Palo Alto, CA USA (HQ)              Austin, TX
     San Jose, CA USA               USA                                                                                       Shanghai, China




                                                                                                                                                              3
                                                                                            © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
The System is the Product
                                                                                                           4
                                         © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
100 Years Ago: “You push the button, we do the rest”




                                                                                                      5
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Systems are more common today




                                                                                                      6
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
But designing systems is di cult




                                                                                                      7
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Systems are abstract and di cult to see




                                                                                                      8
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Systems are often boring

 Train schedule




                                                                                                      9
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Systems cross over organizational boundaries




                                                                                                      10
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
The Apple iPod




Why it Stinks
• High price
• Limited features
• Easy to scratch
• Hard to carry
• Can’t replace battery
• Cumbersome menus




                                                                                                      11
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Why the iPod Succeeded




                                    A convergent system that has given
                                     Apple a 5+ year competitive edge




                                                                                                                            12
                                                          © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Tecosystems
                                                                                                              13
                                            © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Manage Tecosystems Across Experience Touchpoints




                                                                                                      14
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
MINI
                                                                                                        Lifestyle
Retail

   Accessories




Web


                                                                                                            15
                                      © 2007 frog design. confidential & proprietary.   August 3, 2007
  SVPMA   The System is the Product
Maxtor OneTouch III




                                                                                                      16
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Maxtor OneTouch III




                            AWARENESS      PURCHASE




                            USE         OUT OF BOX



                                                                                                          17
                                        © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Convergence




                                    Convergence
                                                                                                              18
                                            © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Turbochef Speedcook Oven




                                                                                                      19
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Turbochef Speedcook Oven




                                                                                                      20
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Turbochef Speedcook Oven




            Cultural Trends         Customer Insights                                 Analogous Products


                                                                                                                          21
                                                        © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
22
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Alltel Lessons

 • Manage up and down
 • Prototypes as tools for buy-in
 • Intensive stakeholder
   coordination




                                                                                                      23
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Know Thy Organization


                                    BOTTOM-UP   TOP-DOWN




                                    GOOGLE       APPLE
     FAITH-BASED




  PROOF-BASED                          HP         GE




                                                                                                                    24
                                                  © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Business and Technology Challenges




                                                                                                      25
                                    © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
The User Experience Gap

                                                             Experience
                                                            Performance
                                                             Crossover

                 High
                                                                                                                              Experience
                                                                                                                              Performance



                                                                                                                              Experience
                                                                                                                              Expectation




                                                                                                                              Profit Margin
                 Low
                            Emerging                                                                          Mature
                            Category                                                                         Category



                                    Vertically integrated                 Modular/open-standards
                                      systems better                          systems better



                                                                                                                                               26
                                                                             © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Strategic Questions

                                                            Performance/
                                                             Experience
                                                             Crossover

                 High
                                                                                                                              Experience
                                                                                                                              Performance



                                                                                                                              Experience
                                                                                                                              Expectation



How big is
the gap?

                                                                                                                              Profit Margin
                 Low
                            Emerging                                                                          Mature
                            Category                                                                         Category


                                                                              How long after a
                                    How long and what will it
                                                                           competitor crosses the
                                     take to close the gap?
                                                                           gap before profits drop
                                                                               unacceptably?

                                                                                                                                               27
                                                                             © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
What PMs can do to facilitate convergence

 1. Map out the system elements
 2. Define proximity to experience performance crossover
 3. Embed systems thinking into the MRD and use it to influence PRD
 4. Get the whole system in one room
 5. Set the interfaces within the system as early as possible
 6. Continually communicate up, down and across to maintain alignment




                                                                                                               28
                                             © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product
Adam.Richardson@frogdesign.com




                                                                                                          29
                                        © 2007 frog design. confidential & proprietary.   August 3, 2007
SVPMA   The System is the Product

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The System is the Product

  • 1. The System is the Product Adam Richardson / Director of Product Strategy SVPMA August 3, 2007 © 2007 frog design. confidential & proprietary. 1 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 2. We are a strategic-creative consulting firm. frog brings a unique combination of strategic and creative talent to help companies envision, realize, and deliver actionable strategies for growth. Our rigorous yet unorthodox approach yields breakthrough innovation and a sustainable competitive edge. 2 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 3. 325 people from 32 countries. 39 years global experience. Seattle, WA USA New York, NY USA Stuttgart, Germany San Francisco, CA USA Milan, Italy Palo Alto, CA USA (HQ) Austin, TX San Jose, CA USA USA Shanghai, China 3 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 4. The System is the Product 4 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 5. 100 Years Ago: “You push the button, we do the rest” 5 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 6. Systems are more common today 6 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 7. But designing systems is di cult 7 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 8. Systems are abstract and di cult to see 8 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 9. Systems are often boring Train schedule 9 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 10. Systems cross over organizational boundaries 10 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 11. The Apple iPod Why it Stinks • High price • Limited features • Easy to scratch • Hard to carry • Can’t replace battery • Cumbersome menus 11 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 12. Why the iPod Succeeded A convergent system that has given Apple a 5+ year competitive edge 12 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 13. Tecosystems 13 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 14. Manage Tecosystems Across Experience Touchpoints 14 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 15. MINI Lifestyle Retail Accessories Web 15 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 16. Maxtor OneTouch III 16 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 17. Maxtor OneTouch III AWARENESS PURCHASE USE OUT OF BOX 17 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 18. Convergence Convergence 18 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 19. Turbochef Speedcook Oven 19 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 20. Turbochef Speedcook Oven 20 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 21. Turbochef Speedcook Oven Cultural Trends Customer Insights Analogous Products 21 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 22. 22 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 23. Alltel Lessons • Manage up and down • Prototypes as tools for buy-in • Intensive stakeholder coordination 23 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 24. Know Thy Organization BOTTOM-UP TOP-DOWN GOOGLE APPLE FAITH-BASED PROOF-BASED HP GE 24 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 25. Business and Technology Challenges 25 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 26. The User Experience Gap Experience Performance Crossover High Experience Performance Experience Expectation Profit Margin Low Emerging Mature Category Category Vertically integrated Modular/open-standards systems better systems better 26 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 27. Strategic Questions Performance/ Experience Crossover High Experience Performance Experience Expectation How big is the gap? Profit Margin Low Emerging Mature Category Category How long after a How long and what will it competitor crosses the take to close the gap? gap before profits drop unacceptably? 27 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 28. What PMs can do to facilitate convergence 1. Map out the system elements 2. Define proximity to experience performance crossover 3. Embed systems thinking into the MRD and use it to influence PRD 4. Get the whole system in one room 5. Set the interfaces within the system as early as possible 6. Continually communicate up, down and across to maintain alignment 28 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product
  • 29. Adam.Richardson@frogdesign.com 29 © 2007 frog design. confidential & proprietary. August 3, 2007 SVPMA   The System is the Product