How Carleton engineers can contribute to product development success Tony Bailetti, Ph.D. January 31, 2002

Professional PracticeSlide 2 What is different in technology environments? Market uncertainty Ambiguity about the type and extent of customer needs technology can satisfy Once known, customer needs change dramatically Uncertainty as to what the dominant design will be or when it will appear Difficult to predict extent of customer adoption Size of market is unknown

Professional PracticeSlide 3 What is different in technology environments? Technological uncertainty not sure about a product’s functional performance technology supplier may not have a proven record for delivery/service not sure about unanticipated side effects not sure if another technology will provide superior performance

Professional PracticeSlide 4 Critical success factors Target a market that is growing Make proposed product or service fit with customer needs (existing or anticipated), the line of business mission, and team capability Know upfront the reasons why customers will prefer your offer over alternatives Know upfront the reasons why customers will prefer buying from your organization over competing alternatives Involve customers in the exploitation of the market opportunity

Professional PracticeSlide 5 Leaders act on opportunities early Opportunity Clarity act early act when others do Leaders move the point of action higher lead Time $ Details

Professional PracticeSlide 6 Leaders get to stage 4 early X XO 12% 100% XO Revenue Time XO 20% XO 70%

Professional PracticeSlide 7 Stages -2 = sell technology knowledge -1 = sell technology and opportunity knowledge 0 = sell various products that embody technology without satisfying100% of customer needs 1 = sell to satisfy 100% of needs of customers in one market segment 2 = sell to satisfy 100% of needs of customers in two or more market segments 3 = sell commodity like product 4 = sell portfolio of differentiated commodity products

Professional PracticeSlide 8 Leader’s role changes as business grows Growth ExistenceSurvival Profitable status-quo Get resources for growth Growth Return on investment Key challenge: Lead existing stage Build architecture for next stage Move to the next stage

Professional PracticeSlide 9 First stage’s and last stage’s critical success factors are opposite Management style direct supervisionline and staff Organization values channels to tech knowledge; minimal systems values channels to market; formal systems Customer bet on what is coming; break from the pack; pay for new ways to solve new problems; target difficult to define fast ramp up; follow the norm; pay to solve known problems; target easier to define Funding fund as you go; measure return on customer relationship well-funded up-front; measure return on investment Partnerships input basedoutput based Competitors unknownknown

Professional PracticeSlide 10 Leaders remove barriers to market making Align with current market Create market Need known, improved solution Need known, new solution Need anticipated, new solution Need uncertain, solution evolves Difficulty of defining and communicating offer Leaders act on opportunities to create markets, not just satisfy known needs