2013: Design-Driven Product Management

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Page 1: 2013: Design-Driven Product Management

Design-Driven Product Line and Portfolio ManagementMatt May!eldIIT Institute of Design, ChicagoAssistant Dean, Academics

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Matt May!eld . Dec 2013

IIT Institute of Design, Chicago- Graduate and PhD programs in advanced Design- Emphasis on disciplined methods for guiding innovation

Motorola Mobility (now a part of Google)- Mobile devices/services strategy and planning - Emphasis on understanding the impact of mobility on daily life

Doblin Group (now a part of Deloitte)- Innovation & strategy consulting- Emphasis on user-centered techniques for business innovation

2004-present

1992-2001

2001-2008

Academic

Corporate

Consulting

Matt Mayfield

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Matt May!eld . Dec 2013

• McDonalds• Amway

• Haworth furniture

• Texas Instruments• Motorola

• Baxter Medical

• SAS Airlines

• Sto Corp• Wierton Steel

• Polycom• Monsanto

Consumer

Product

B2B

Service

• SC Johnson

Areas of experience

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Matt May!eld . Dec 2013

IIT Institute of Design

Product Design

Comm. Design

Interaction Design

Strategy & Planning

User Research

Systems & Platforms

The evolution of the field of design has led to intersecting areas of study

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Matt May!eld . Dec 2013

Product management is increasingly difficult...

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Matt May!eld . Dec 2013 . image: http://en.wikipedia.org/wiki/Supermarket

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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://isabelles!shbowl.!les.wordpress.com/2012/02/img_0657.jpg

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Matt May!eld . Dec 2013

How to make things/services

What’s worth making

NowThen

Capa

bilit

yThe challenge

Matt May!eld . Dec 2013 . source: Patrick Whitney, IIT Institute of Design

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Matt May!eld . Dec 2013 . image: http://www.zdnet.com/blog/btl/

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Ring tone

VR/TTS

2011 Expected Market Value Chain Revenue ($bil)

Personal safety Hospitality wayfinding

CA

GR

% 2

009-

2013

Enterprise VPN/Security

Professional healthcare

Personal care & wellness Enterprise unified communication

Video on demand Mobile payment

Outdoor/rugged phone

VoIP

Advertising

Music streaming Music on demand

Mobile TV

Gaming

Elderly phone

Coordinate Parenting & family monitoring

Wearables

-10%

20%

40%

60%

80%

100%

$0

MID

Netbook

UMPC

$35 $20 $10 $4 $2

Consumer IM Mobile banking

Ringback tone

Education Access

Wallpaper

Navigation

Pets tracking

0%

$60

Mobile Social Networking Consumer Email Consumer MMS

Memory keeping/sharing

Digital picture frame

Fashion / Luxury phone

Enterprise mobile broadband

Consumer SMS

eBook Eco

PND Broadband Game console

Broadband audio player

Broadband video player

Broadband digital still camera

Broadband camcorder ??

?

Tangential opportunities in mobile wireless

Matt May!eld . Dec 2013

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Matt May!eld . Dec 2013

Traditional tools are limited...

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Matt May!eld . Dec 2013 . image: http://market.qlikview.com/idiscover-for-imis.html

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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://newsroom.blogs.cnn.com/2013/04/15/a-rather-rare-weather-prediction/

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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . images: wikimedia.org/wikipedia/commons/2/2b/ and http://news.mynavi.jp/news/2001/05/23/10l.jpg

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Matt May!eld . Dec 2013

What now...?

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Matt May!eld . Dec 2013

Analysis Synthesis

• Examine market• Know customers• Generate options

• Choose direction• Specify offerings• Deliver offerings

Simplified view of InnovationStepping back from the details

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Matt May!eld . Dec 2013

Analysis Synthesis

• Examine market• Know customers• Generate options

• Choose direction• Specify offerings• Deliver offerings

Simplified view of InnovationStepping back from the details

Product Management

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Matt May!eld . Dec 2013

Strategy

Portfolio Planning

Planning also requires two perspectives

De!nition

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Matt May!eld . Dec 2013

Strategy

Portfolio Planning

Planning also requires two perspectives

De!nition

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Matt May!eld . Dec 2013

Strategy

Portfolio Planning

Planning also requires two perspectives

De!nition

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Matt May!eld . Dec 2013

Strategy

Challenges that design can help with

De!nition

Analysis Synthesis

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Matt May!eld . Dec 2013

Strategy

Challenges that design can help with

De!nition

Analysis Synthesis

Partial context

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Matt May!eld . Dec 2013

Strategy

Challenges that design can help with

De!nition

Analysis Synthesis

Partial context

Random options

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Matt May!eld . Dec 2013

Strategy

Challenges that design can help with

De!nition

Analysis Synthesis

Partial context

Random options

Dull decisions

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Matt May!eld . Dec 2013

Integrating the context

Challenge 1

Strategy

Definition

Analysis Synthesis

Random options

Dull decisions

Partial context

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Matt May!eld . Dec 2013

Customers Competition

Context has many elements

Company

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Matt May!eld . Dec 2013

CompetenciesUseful for focus, can sometimes be too narrowing

Goalsstrategic goals are often implicit and emergent

Positionbenchmarks are ambiguous

Desire to changepain can felt unevenly across the organization

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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://img1.etsystatic.com/000/0/5715016/

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Matt May!eld . Dec 2013

Form

Lenovo Miix 2

Apple iPad mini 2

Samsung Galaxy Tab 3

Acer Iconia W3

Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com

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Matt May!eld . Dec 2013

Form

Lenovo Miix 2

Apple iPad mini 2

Samsung Galaxy Tab 3

Acer Iconia W3

Category

Apple iPod touch

Google Nexus 10

Samsung Galaxy

Samsung Galaxy Note

Motorola DROID XYBOARD

Microsoft Surface Pro 2

Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com

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Benefit

Nokia Lumia 1520

HTC One mini

Amazon Kindle Fire HDX

Sony Playstation Vita

Canon Powershot A2600

Samsung Netbook

Asus G51Jx 3DE

Matt May!eld . Dec 2013

Form

Lenovo Miix 2

Apple iPad mini 2

Samsung Galaxy Tab 3

Acer Iconia W3

Category

Apple iPod touch

Google Nexus 10

Samsung Galaxy

Samsung Galaxy Note

Motorola DROID XYBOARD

Microsoft Surface Pro 2

Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com

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Benefit

Nokia Lumia 1520

HTC One mini

Amazon Kindle Fire HDX

Sony Playstation Vita

Canon Powershot A2600

Samsung Netbook

Asus G51Jx 3DE

Matt May!eld . Dec 2013

Form

Lenovo Miix 2

Apple iPad mini 2

Samsung Galaxy Tab 3

Acer Iconia W3

Category

Apple iPod touch

Google Nexus 10

Samsung Galaxy

Samsung Galaxy Note

Motorola DROID XYBOARD

Microsoft Surface Pro 2

Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com

Entertainment

Communication

Productivity

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Matt May!eld . Dec 2013

Customers Competition

Integrated and interpreted context

Company• Activities• Adoption

• Benefits• Differentiation

• Position• Pain

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Context of Healthcare & Mobile Technology

Matt May!eld . Dec 2013

Dimensions of customers and competitive drivers

Domains of technical innovation

Product and service directions

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Matt May!eld . Dec 2013

Directing meaningful options

Challenge 2

Strategy

Definition

Analysis Synthesis Dull decisions

Partial context

Random options

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Matt May!eld . Dec 2013

Viable

Desirable

Possible

Sustainable profits

Technology capability

Valued benefits

Looking for the innovation sweet spot...

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Matt May!eld . Dec 2013

Viable

Desirable

Possible

Sustainable profits

Technology capability

Valued benefits

...requires cross-disciplinary teamwork

Marketing

Finance

Engineering

Management

Design

Distribution

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Matt May!eld . Dec 2013 . image: http://www.albemarle.edu/news/397/511/QEP-Brainstorming-Session-at-COA

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Matt May!eld . Dec 2013

Focus on quantity ...many ideas

Simplified view of InnovationBasic brainstorming is ineffective

Traditional “rules” result in...

Withhold criticism ...many bad ideas

Welcome unusual ideas ...many silly, bad ideas

Build on others’ ideas ...many more, silly, bad ideas

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Matt May!eld . Dec 2013

New / Better product experiencesNew / Better business modelsNew / Better market spacesNew / Better capabilities

Simplified view of InnovationKnow what you are solving for

Different types of problems require different techniques, and none of them can be finished in a single session.

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Matt May!eld . Dec 2013

Simplified view of InnovationBetter tools and techniquesCustomer Journey

Co-Design / Participatory Design

Design-Driven InnovationRoberto Verganti

101 Design MethodsVijay Kumar

Designing for GrowthJeanne Liedtka

Rapid Prototyping

Exposing the Magic of DesignJon Kolko

Context modelingConcept Systems

Experience Storyboards

Scenario Road-mapping

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Matt May!eld . Dec 2013

Leading powerful directions

Challenge 3

Strategy

Definition

Analysis Synthesis

Partial context

Random options

Dull directions

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Matt May!eld . Dec 2013

Strategic Alignment & Importance

Product & Competitive Advantage

Market Attractiveness

Leverage Core Competencies

Technical Feasibility

Financial Reward vs. Risk

LOW MED-LOW MED-HIGH HIGH

Not important to business; low impact

Somewhat supports business

Supports business strategy; good impact

Aligns well; very important; high impact

None; neutral customer feedback

Limited; marginally superior; OK value

Some new benefits; good value; positive

feedbackMajor new benefits; very

positive feedback

Low growth/margins; tough competition

Modest market; limited growth

Significant market; good growth/margins

Large, growing; weaker competition

No opportunities; required skills weak

Some opportunities; required skills moderate

Considerable leverage; skills / resources needed

exist

Excellent leverage; excellent fit between needs and company

Low; big gap; technology new to company

Modest; a few hurdles; limited evidence for technical feasibility

Good; small gap; some evidence of technical

feasibility

Straight-forward; have already demonstrated

technical feasibility

Poor; NPV negative; payback > 5yrs

Modest; NPV positive; payback ~ 4yrs

Fairly good; NPV positive; payback ~ 2yrs

Excellent; NPV positive; payback < 1yr

Scorecards can help...

Matt May!eld . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products

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Matt May!eld . Dec 2013

Strategic Alignment & Importance

Product & Competitive Advantage

Market Attractiveness

Leverage Core Competencies

Technical Feasibility

Financial Reward vs. Risk

LOW MED-LOW MED-HIGH HIGH

Not important to business; low impact

Somewhat supports business

Supports business strategy; good impact

Aligns well; very important; high impact

None; neutral customer feedback

Limited; marginally superior; OK value

Some new benefits; good value; positive

feedbackMajor new benefits; very

positive feedback

Low growth/margins; tough competition

Modest market; limited growth

Significant market; good growth/margins

Large, growing; weaker competition

No opportunities; required skills weak

Some opportunities; required skills moderate

Considerable leverage; skills / resources needed

exist

Excellent leverage; excellent fit between needs and company

Low; big gap; technology new to company

Modest; a few hurdles; limited evidence for technical feasibility

Good; small gap; some evidence of technical

feasibility

Straight-forward; have already demonstrated

technical feasibility

Poor; NPV negative; payback > 5yrs

Modest; NPV positive; payback ~ 4yrs

Fairly good; NPV positive; payback ~ 2yrs

Excellent; NPV positive; payback < 1yr

Scorecards can help...

Matt May!eld . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products

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Matt May!eld . Dec 2013

...but decision making can be biased

Complexityassuming one can fully see and understand a complex situation

Anchoringdifficulty revisiting initial assessments however inaccurate

Emotional taggingassociating past emotions when perceiving similar situations

Attributionoverweighting success as individual, failure as external

Matt May!eld . Dec 2013 . source: Daniel Kahneman (July 2003) “Delusions of Success” HBR, Andrew Campbell (Feb 2009) “Why Good Leaders Make Bad Decisions”, HBR

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Matt May!eld . Dec 2013 . source: Sir Patrick Moore (1969) & http://en.wikipedia.org/wiki/List_of_lunar_features

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Matt May!eld . Dec 2013 . source: Chesley Bonestell, The Great Wall. “Conquest of Space” (1949) Life Magazine

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Matt May!eld . Dec 2013 . sources: Motorola, Domus Academy, ReadyToPresent

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Matt May!eld . Dec 2013

Where does this leave us?

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Ultimately, management is leadership

Matt May!eld . Dec 2013

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Ultimately, management is leadership

Matt May!eld . Dec 2013

option 1

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Ultimately, management is leadership

Matt May!eld . Dec 2013

option 1

option 2

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Matt May!eld . Dec 2013

How to make things/services

What’s worth making

NowThen

Capa

bilit

yWhich is increasingly hard

Matt May!eld . Dec 2013 . source: Patrick Whitney, IIT Institute of Design

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Matt May!eld . Dec 2013

Fully integrated context

Directed and meaningful options

Compelling and powerful directions

Matt May!eld . Dec 2013

Design can help

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Matt May!eld . Dec 2013

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

Ahead

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

AheadBehind

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

Above

AheadBehind

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

Above

AheadBehind

Below

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

AboveBeyond

Beside

AheadBehind

Below

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

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Matt May!eld . Dec 2013

Through

AboveBeyond

Beside

AheadBehind

Below

Mintzberg: Strategic Thinking as “Seeing”

Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland