Archive for the 'Service development' Category

Hey, why not let everyone help develop your products?

Friday, June 27th, 2008

Another way companies are breaking down the barriers between themselves and their customers or other folks outside is via “crowdsourcing.” That is a way to get people on the outside to provide value to the organization on their own time. It is essentially the open source model applied to more than just software.

The best example I know is the Goldcorp story. Their president put all their proprietary geologic data for a mine on the web and held a contest. The winners with the best ideas of where to drill would share half a million dollars. The diversity and originality of ideas they received was far beyond anything they anticipated. Years later they were still drilling sites suggested by contestants. They were mining so much gold they were the only gold mining company that was stockpiling for better prices in the future. Furthermore, their stock price went up thirty fold. (See Taylor’s book referenced below.)

The internet and the decentralization of expertise has enabled crowd sourcing and it is typically used to develop solutions. That is at the back end of the product development process. Companies can gain key advantages via crowd sourcing.

achieving goals not possible with a limited fixed staff

This is the advantage of scale. For example, large companies experience many more customer demands for new products than they can keep up with. Some have formed external networks to act in an advisory role or even do project work directly (as in the Goldcorp example) to develop more new products. NASA has used volunteers to process enormous amounts of data making images available months earlier and freeing up researchers to concentrate on higher end work. Google essentially uses crowdsourcing in the way it ranks pages for its search engine.

access to a larger number and far more diverse range of ideas than possible in-house

I think William Taylor says it best in this chapter title from his book Mavericks at Work: Ideas Unlimited: Why Nobody is as Smart as Everybody.

Inviting people from other boxes to work on your problem is a pretty easy way to get real “out of the box” thinking.

I see parallels to the kind of work we do at the front end to understand the problems you should be working on in the first place. You can use crowdsourcing methods to find out what the most important problems are for you to solve, as well as to craft solutions. That is, from voice of the customer to voice of the collaborator. We have actually done both here.

For more,
“On the Edge,” by Tim Gilchrist, PMI Network, May 2007, p32.
Mavericks at Work, William C. Taylor and Polly LaBarre, Harper Collins, 2006. (See Chapter 4.)

Flexible Product Development

Friday, September 28th, 2007

This month a new book hit the market “Flexible Product Development, Building Agility for Changing Markets” by Preston Smith. Some of you might remember him from “Developing Products in Half the Time” which he co-authored with Donald Reinertsen in 1991. That was a seminal work in the time-to-market field. His new book could be another big step in thinking for product developers.

I probably should say at this point that I reviewed several chapters for Preston while he was writing the book. I am mentioned at the end of the book with the others that helped out. The small contributions I made show up mostly in the sections on customer needs and risk management. Even so, any bias you may detect here has more to do with how I see product development rather than any loyalty to the book.

To oversimplify, Preston takes concepts from Agile software development, translates them, and where necessary adapts them, for people developing other things besides software. Hence, many of the concepts aren’t new, but will be new to much of the audience. At it’s core the material revolves around how to deal with change in a development project. It is that familiar struggle — setting the plan and requirements and working to them versus changing things late in the process. Scope creep and changes late in a project can blow costs and schedule off the planet. On the other hand, when the world takes a sharp turn on you, proceeding as planned can make the entire effort futile.

This book is about working so you can make changes later in a development project without disrupting the work or costs. It’s about knowing when to preserve flexibility, how to preserve it, and when you must make hard decisions. For me all this boils down to risk management, particularly trading off the risks on either side of these decisions. An interesting part of this book is that Preston goes beyond the typical risk analysis to discuss what to do about the unknown risks or the “unknown, unknowns.” (Now who made that phrase famous a couple of years ago? Never mind.)

Preston thinks bringing flexibility to the product development process is increasingly important today. First, is due to an accelerating and increasingly chaotic world. Read that as shorter timelines, rapidly advancing technology, global competition and more knowledgeable customers (they use the internet). Second, is because current management processes reward rigidity, which then runs organizations into the buzz saw of his first reason.

To me this exposes an open secret known to many who have labored under rigid development processes in the past or still do. That is, smart developers circumvent their company process when it becomes an obstacle rather than a support. These troublemakers know you can’t steam ahead when a sudden change in the marketplace or regulatory environment, or competition just pushed an iceberg in front of you. They know that salvation will come from reworking the plan, rather than working the plan.

If Flexible Product Development helps codify that common sense for more general use Preston will have helped product developers take another big step forward.

It is an easy read and I like that he ends each chapter with a summary list of the key takeaway points to remember.