S PRODUCT DEVELOPMENT OF TELECOMMUNICATION SYSTEMS * Practicalities * Product Development Process * Systematic Ideation

2 Timo O. Korhonen, Aalto-University, Comnet, Finland S Product Development of Telecommunication Systems n Objectives: –To understand modern, high-tech product development process in theory and practice –Learn to search and verify information –Learn to outline and present knowledge –Learn to work in groups n Course contents: –Student seminars (period III) –Industry-driven Workshop (period IV) n Grading: –Student seminars - review based learning –Workshop - group presentations and reports –Exam (based on course book) –Submitting your leacture notes can give further bonus (!) – see Optima for further info

3 Timo O. Korhonen, Aalto-University, Comnet, FinlandOutline n Materials: Presentations /links in Optima. External course materials (using for instance Ebrary) listed in Optima. They can be accessed by using nelli – portal and/or web-links. n Student seminars (period III) apply review based learning: Seminars are based on course materials as described in Optima. Group seminars are graded by students and course personnel. n Workshop (period IV) discusses practical elements of product development process. Deals with an industry case. Takes full-day work of 5 days. n Grading scheme: note: seminar grade is the average of students’ and instructors’ grades

4 Timo O. Korhonen, Aalto-University, Comnet, Finland Student Seminars (period III) n Groups give presentations of given topics. Outputs: 1.presentation slides 2.5 q_a: question and answers of the group’s seminar topic (in the last slides of the presentation) 3.summary, 1-2 pages (doc(x) / pdf) (So, combine 1. and 2. to the same.ppt(x)) n Opponents submit (see allocations is optima) –peer-review scorings (print grading form from optima and submit to your own mailbox in optima) n All to be returned to Optima n 5 question and answers summarized in the end of presentation slides and discussed after the presentation Outline n Presentations graded by students and course staff 50/50 n Grading forms in Optima – fill immediately after each seminar!

5 Timo O. Korhonen, Aalto-University, Comnet, Finland n Workshop tasks & reports prepared in groups n Follows Innovation in a Week – method: from ideation to weighted product/service concept in a week n Tutoring arranged by joint effort of Comnet & industry partner n Earlier Workshops arranged with Vivago, Elisa, Telia, Ericsson, Satama Interactive, Sonera, Teleste etc. n Earlier workshop topics: RFID applications, Wi-Fi Networks, Company Customer Relation Management (CRM) system design, Video Surveillance Services, Prepaid Calling Cards... Industry Driven Workshop (period IV)

6 Timo O. Korhonen, Aalto-University, Comnet, Finland Example: Vivago Ltd (Spring 2011)

7 Timo O. Korhonen, Aalto-University, Comnet, Finland Introduction n Telecommunications product development Role of vision, mission and strategy Defining modern product development process –Project plan –Industrial product development Telecommunications as a business environment n Tools for idea cultivation and project management –How to produce ideas –How to select applicable ideas –How to sketch a project plan and recognize time- critical events

8 Timo O. Korhonen, Aalto-University, Comnet, Finland High-tech Product Development Financing Products Production Process Usability Quality Leadership Project management Strategic management Innovations IPR Commercialization Product design Marketing Business Plan IPR=Intellectual property rights

9 Timo O. Korhonen, Aalto-University, Comnet, Finland Vision, Mission and Strategy n Vision –A view of the future development n Mission (our way) –General way to distribute know-how, resources and results in Own organization Partner networks n Strategy (order of acts and focus points in our way) –Specific way to work to ensure success (for instance, might be tailored for a project) –Objectives: To acknowledge, achieve, maintain & update information flows and goals Vision Mission Values/Attitudes Strategy … to provide our customers with state-of-the art telecommunication equipment, with integrated operation and maintenance services … market leader after five years … success factors for the company are technology competence within telecommunications and ICT and flexible cooperation with worldwide partners

10 Timo O. Korhonen, Aalto-University, Comnet, Finland Challenges and Rewards in Product/Service Development n Recognizing, understanding and managing key challenges (customers, services, market, technology) is elementary in creating successful product/service development n High-tech service/product development team is multi-disciplinary, motivated and cooperative Trade-offs Dynamics Details TimetablesEconomics Manifestation of creativity Satisfaction of individual & social needs Team spirit Team diversity

11 Timo O. Korhonen, Aalto-University, Comnet, Finland Industrial Product Development Process Theoretic functionality? What about in practice? Sub-unit functionality? Functionality of the whole process? First study & demo Practical proto Proto for mass- production Mass production Opportunity Concept works? Sub-unit funcs? Massprod. Requirements?

12 Timo O. Korhonen, Aalto-University, Comnet, Finland Realizing Units of Industrial Product Development Marketing Design ManufacturingTeam leader Central factors of a project Mechanical designers Electronics designers Marketing Team Purchasing engineer Manufacturing engineer Industrial designers Example: Teams to design an electro-mechanical product Financial Legal Patents

Defining a product (or a service) Core product: Core service or product that the customer would like to enjoy. Service/Product image: Brand name, package, color, form, service environment; reputation, ;image gives ‘shape’ to the product Supplementary services : service(s) that can be combined to the core product. Increased value. For example: guarantee, installation, home delivery… Supplementary services Service/ product image Core product

14 Timo O. Korhonen, Aalto-University, Comnet, Finland Conventional Product Development Process MARKETING DESIGN MANUFACTURING CONCEPT DEVELOPMENT SYSTEM -LEVEL DETAILED DESIGN TESTINGRAMP-UP & LAUNCH PLANNING -Promotion materials -Early production with key customers -Marketing plan -Product options -Pricing strategy -Lead users -Competitive products Identify: -market opportunity -market segments -Evaluation of early product outputs -Regulatory approvement -Performance testing -Tolerances -Components -Part geometry -Subsystems -Interfaces -Feasibility studies -Experimental prototypes -Identify new technologies -Consider product platform -Production constraints -Supply chain strategy -Estimate manufacturing costs -Suppliers for key components -Quality assurance processes -Fabrication and assembly process -Follow-up product system (O&M) Ramp-up: Increases company's operational intensity to respond to the new launch O & M: Operation & Maintenance

Product development process (Kotler’s view) Visio, mission, strategy, values IdeationUser- centric design Pricing models Marketing goals & environment Industrial requirements Marketing studies, ramp-up & launch

Product requirements Ref: John Kim (2005) – Where do product requirements come from? Innovation Through Information, Inc

17 Timo O. Korhonen, Aalto-University, Comnet, Finland Measuring Quality CONCEPT DEVELOP SYSTEM -LEVEL DETAILED DESIGN TESTING RAMP-UP & LAUNCH Development phases Good quality indicators: commonly agreed: fair & simple followed & updated generally acknowledged keep workers informed of all the relevant aspects of process goodness keep customers willing to use products again and support company branding return of investme nt Technical Design Aesthetical Design Quality/price Return of Investment Customer satisfaction Follow-up of specification Target Pricing Early identification of triggers Making measurement for quality becomes easier Tracking critical fault conditions Subsystem & interface design

18 Timo O. Korhonen, Aalto-University, Comnet, Finland Maturity of Project Control Reference: T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academy Press, 2003 add-hoc repeatable & defined action & integration MATURITY OF ORGANIZATION MANAGEMENT AMBITION Vision Mission Actions Measurements Vision Mission Actions Measurements + management & optimization synchronization & overview control & supervision

19 Timo O. Korhonen, Aalto-University, Comnet, Finland Binary Organization Developed Organization n Focus on –interactions –excessive feedback –rapid development speed n Overflow of potential ideas n Competitors are customers n Customers are extensively educated n Fashion (product/organization) changes fast and unpredictable way n Developed way to measure working of organizational body to keep it in good update shape n Globalization is a potential n Salary is a function of performance n Fixed organization n Clearly defined roles n Known customers n Known competitors n Known products n Known, traditional pricing n Fixed, slowly increasing market size n Hierarchical or matrix organization n Slow information flow, especially in feedback n Quality measured in cash flow n Globalization is a threat n Salary is a function of luck (High-tech product development)

20 Timo O. Korhonen, Aalto-University, Comnet, Finland High-tech Product Development - Process FUZZY FRONT- END Vision driven Tension Values Targeting REALIZATION PROCESSES Talents & Skills Strategies & Mission Customer interfaces Outputs Hard Constraints Quality Control Measurements CONCEPT DEVELOPMENT DETAILED DESIGN RAMP-UP & LAUNCH Customers Competitors Profitability

21 Timo O. Korhonen, Aalto-University, Comnet, Finland High-tech Product Development - Another View n constant product improvements n high development velocity n knowledge sharing from suppliers, competitors, and customers n feedback on demand from customers Reference: T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academy Press, 2003

22 Timo O. Korhonen, Aalto-University, Comnet, Finland Technology Politics, legislation regulation Rapidly evolving services & applications New lifestyles & fashion GLOBAL NETWORKING ECONOMY - Immediate, personalized, mobile access to services - Information Society - Force Fields -

23 Timo O. Korhonen, Aalto-University, Comnet, Finland Research networking Future & emerging technologies Systems & services Multimedia contents & tools Essential technologies & infrastructure New methods of tech Factors in Telecommunications Business Framework

24 Timo O. Korhonen, Aalto-University, Comnet, Finland Telecom Market Players: Interoperable Hierarchy End-Users Content and Service Providers Service Operators/ Networking Solutions Physical Telecommunication Networks & Terminals Individuals, companies Paramount pictures, MTV.. Elisa,TeliaSonera…. Nokia, Motorola...

25 Timo O. Korhonen, Aalto-University, Comnet, Finland Example: Telecommunications in Home/Office Access -TV/MOVIES -GAMES -broadcasting INTERNET services - unicasting - multicasting - peer-to-peer... Fiber/Copper (2 way) Galileo/GPS 4G Mobile 10 G Ethernet, Cable TV ADSL/ ISDN cable- modems Mobile access: 2G: GSM 2.5G: GPRS, HSCSD, EDGE 3G : UMTS 4G: LTE, WiMAX Network operators Service providers Content providers Device manufacturers ENERGY Power line comms (PLC) Wi-Fi/ Bluetooth/ Ethernet Satellite TV

26 Timo O. Korhonen, Aalto-University, Comnet, Finland Telecommunication Service are Getting Faster, Complex and more Intrusive!

27 Timo O. Korhonen, Aalto-University, Comnet, Finland 4G Mobile services LTE, Wimax, n, femto-cells… Digital Living Network Alliance 3D TV Mobile video calls (Iphone 4) Social Media Streaming apps IP telephony Cloud services

28 Timo O. Korhonen, Aalto-University, Comnet, Finland

29 Timo O. Korhonen, Aalto-University, Comnet, Finland Example: Add2Phone Ltd Value Network (a mobile marketing company) 1. Companies/products to be advertised/ sponsored 2. Renting advertisement space 3. Buying contents (protected by IPRs) 4. Fees from joining/using the services Ring tones background images Audio Video … Concert Sports event Space in a Social Media … Company negotiating with advertisers and/or content providers deals how to share the media space Tele-operator having permission of user to allow for instance push-adds 4

30 Timo O. Korhonen, Aalto-University, Comnet, Finland II Tools for Generating and Cultivating Ideas

31 Timo O. Korhonen, Aalto-University, Comnet, Finland Personal Process of Creativity* *T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academic Press, 2003

32 Timo O. Korhonen, Aalto-University, Comnet, Finland A Cycle in The Process of Creativity n Creativity cultivation requires different talents in different phases n In practice system contains extensive feedback n Best workgroups are multidisciplinary (Developed communication skills required!)

33 Timo O. Korhonen, Aalto-University, Comnet, Finland Some Creativity Tools idea generation filter modifications associative mapping concept testing, decision making Random pictures/words/sentences Reinforced pictures/words /sentences (doodles) Lateral thinking: Synetics The Six Thinking Hats Mind Maps: Fish Bones SWOT-method Critical Path Analysis Force Field Analysis Decision Tree *T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academic Press, 2003

34 Timo O. Korhonen, Aalto-University, Comnet, Finland How to Select Cultivation Methods? n Some methods are primarily targeted for mapping the current status (eg SWOT), other for decision making (eg Force Field Analysis) and some are general purpose tools to assist project management (Critical Path Analysis). n Methods work well when they are used simultaneously; in-series or in-parallel, as for instance brainstorming+ SWOT n Successful product development requires that one should have sufficient information about –customer's requirements –competitors’ product launches –market –latest technology n Knowledge of state-of-the-art and vision of future development and trends is very important! Customers Market Technology Competitors Future visions

35 Timo O. Korhonen, Aalto-University, Comnet, Finland Ideation and Creativity Cultivation Tools n Ideation –Brainstorming –Mind Mapping –SWOT n Filter modifications –Six Thinking Hats –Synetics n Concept formation & Decision making –Force Field Analysis –Critical Path Analysis

36 Timo O. Korhonen, Aalto-University, Comnet, Finland Brainstorming n Objectives: Bring about creative solutions (even for unidentified!) problems n Take solution candidates one after another until unusual solutions are generated n Generate ideas without critics! Thus –many potential solution candidates are generated –whole problem dilemma may change! n To continue –analyze results for instance by SWOT, Force Field Analysis (FFA) and/or Mind Mapping –Condensed and classified ideas can be used to support new sessions or other applications

37 Timo O. Korhonen, Aalto-University, Comnet, Finland Brainstorming - Leader and Group Tasks n Session leader –definition of the start-up point –gives limits to the problem –gives limits to discussions (These limits must be very broad) –minute amount of critics –encouraging and enthusiastic –follows (the fixed) session time table! –Takes care that ‘idea jamming’ is only temporary! n Session participants –have diverged orientations related to the problem at hand –their background is as different as possible –good communication skills –substance should be known preferably by everybody (at least by somebody!!!)

38 Timo O. Korhonen, Aalto-University, Comnet, Finland Individual vs. Group Brainstorming n Individual BS –many ideas –tendency to jam into some fixed trails –easy to find unresolved questions n Group BS –ideas develop themselves into more elaborated form –ideas develop more efficiently –there might be less ideas (group follows the group behavior laws!) n One may mix individual and group barnstorming: For instance each member might first BS of his own and then one may have a meeting based on each individual’s BS sessions

39 Timo O. Korhonen, Aalto-University, Comnet, Finland Getting more fruitful Brainstorming n Methods of Six Thinking Hats (Edward de Bono) or Six Eyes (Rodney King) can be used to get Brainstorming to work better n Assign a different hat for each group member & mix the hats! intuition: feelings and emotions facts: figures, information needs and gaps logical negative: judgment and caution logical positive: why something works creativity: alternatives, proposals, what is interesting, provocations and changes meta-cognition: creativity process control

40 Timo O. Korhonen, Aalto-University, Comnet, Finland Mind Mapping n Mind Mapping is a technique to organizing information in its natural associative way, that is multidimensional. n Procedure: –List the main topic, subtopics and facts. Search short expressions for them all. –Identify the main connections between themes –Set the main theme in the middle of the paper and arrange the sub-themes to surround the main theme –Recognize idea groups (for instance by colors) –Indicate interdependencies as the cause and consequence by arrows –Use symbols and figures and even sub-maps to give to total picture

41 Timo O. Korhonen, Aalto-University, Comnet, Finland Example of a Mind Map Mind Manager (

42 Timo O. Korhonen, Aalto-University, Comnet, Finland Mind Mapping Summarized –A Mind Map is an associative structure. Therefore its topology contains a lot of information. –Mind Map allows to identify the essential features and links of the problem at glance. –Mind Maps can be an extremely compact way to present information. –A problem of mind mapping is that the chart may up to be so messy that it can even hide the main themes. Therefore Mind Map can, and should be cultivated after it is formed by pruning less important branches –Mind Maps can be created by computer program (as FreeMind, MindManager ® or eMindMaps ® ) or by using simple detachable notes on a blackboard.

43 Timo O. Korhonen, Aalto-University, Comnet, Finland Alternate Mind Mapping n Fishbone* diagram: Enables to focus onto the problem and perceive the causes and its relative importance n After drawing the diagram the next step is to analyze the magnitude of each of the identified causes *

44 Timo O. Korhonen, Aalto-University, Comnet, Finland SWOT analysis n SWOT is applicable for sorting unorganized knowledge bases and analyzing current status n Successful SWOT yields structured mapping of the problem at hand n For instance in product analysis –identify strength and weaknesses of the product –search through possibilities and threats (for instance for product launch) n Realization: List all the relevant properties and sort them into SWOT boxes! Strength Weakness Opportunity Threats inside outside

45 Timo O. Korhonen, Aalto-University, Comnet, Finland A case of SWOT: WAP-based Knowledge Base Service* Strengths Expandable, flexible, easy to use, dynamic, easy to personalize, bypassing of telephone exchange, more effective graphics, utilization of location information Strengths Expandable, flexible, easy to use, dynamic, easy to personalize, bypassing of telephone exchange, more effective graphics, utilization of location information Weaknesses Need for WAP terminal managing, search routines require Dedication Weaknesses Need for WAP terminal managing, search routines require Dedication Opportunities If first at the market may be a killer-kind app. Due to usage of immediate location info by GPS or GSM location technology Opportunities If first at the market may be a killer-kind app. Due to usage of immediate location info by GPS or GSM location technology Threats No popularity, one applies terminal specific catalogs, competitive techniques may hit markets Threats No popularity, one applies terminal specific catalogs, competitive techniques may hit markets *S spring ‘99

46 Timo O. Korhonen, Aalto-University, Comnet, Finland Force Field Analysis n FFA is a method to analyze factors for and against an act n Objective: To create an unified description of the factors forming the problem. This is used to alter the process state to the wanted direction! n Benefits –Describes all the relevant forces –Allows to plan contra strategies for negative forces supporting strategies for positive forces n The FFA method: Identify, Sort and Grade the different forces and illustrate the problem by a diagram including the forces! n The first result of this method describes the current state n Alteration of forces can change the current state to the objective state!

47 Timo O. Korhonen, Aalto-University, Comnet, Finland Force Field Analysis: Example

48 Timo O. Korhonen, Aalto-University, Comnet, Finland In Conclusion... n We had an overview on Telecommunications Product/Service Development Process n We discussed the following ”mind- and process mapping” techniques: –Brainstorming –Mind Mapping –SWOT analysis –Six Thinking Hats –Force Field Analysis n The best way to learn these methods is to use them!