1. S-72.3510 PRODUCT DEVELOPMENT OF TELECOMMUNICATION SYSTEMS I Elements of Telecommunication Product Development Process II Tools for Generating and Cultivating Ideas

2. 2 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen S-72.3510 Product Development of Telecommunication Systems n Objectives To understand modern, high-tech product development process by theory and practice n Lectures discuss dominant elements of product development process: Handouts www.comlab. hut.fi/studies/3510 (Some lecture handouts might not be published! -> Participate to lectures!) n Workshop (II term): deals with practical cases; takes full-day work of 4-5 days n Lecture Diary (optional): Guides available at course homepage. Return Diary within one week from the lecture to the mailbox (E-wing 2th floor). Max length 1 page of A4. n Grading based on Exam and Workshop reports (50/50). Lecture Diaries can increase your grade max by 0.5 (pass/failed).

3. 3 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen n Workshop tasks & report prepared in groups n Group tutoring by joint effort of Communications Lab. & industry partner(s) n Earlier Workshops arranged by Elisa, Telia, Ericsson, Satama Interactive, Sonera, Teleste etc. n Workshop topics: Prepaid Calling Cards, Wi-Fi Networks, Company Customer Relation Management (CRM) system design, Video Surveillance Services... n Join to listen lectures and make your own notes & questions n Writing a Lecture Diary is a splendid tool for assembling your own handouts to systematic notes. ( guides available at: http://www.comlab.hut.fi/studies/3510/writing_lecture_diary.htm ). S-72.3510 Product Development of Telecommunication Systems

4. 4 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Lectures 2006 n 16.3.06 Thursday 14-16, hall S3, Product Development Process/Ideation, Prof. Timo O. Korhonen, Communications Lab. n 22.3.06 Wednesday 12-14, hall S3, Managing Value Networks, Prof. Arto Rajala, Helsinki School of Economics n 23.3.06 Thursday 14-16, hall S3, User Centric Product Development, Prof. Marko Nieminen, Software Business and Engineering Institute n 29.3.06 Wednesday 12-14, hall S3, Quality in High- tech Product Development, Dr Jaakko Kujala, Dep. of Industrial Eng. and Management

5. 5 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Lectures 2006, cont. n 30.3.06 Thursday 14-16, hall S3, Techno-economic Analysis, Research Scientist Timo Smura, Networking Laboratory n 5.4.06 Wednesday 12-14, hall S3, Project Planning and Management, Research Scientist Miia Martinsuo, Dep. of Industrial Eng. and Management n 6.4.06 Thursday 14-16, hall S3, Entrepreneurship and the New Economy, Dr Peter Kelly, Dep. of Industrial Eng. and Management n 12.4.06 Wednesday 12-14, hall S3, Management of Immaterial Rights, Innovation Manager Panu Kuosmanen, Otaniemi Innovation Centre

6. 6 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Lectures 2006, cont. n 20.4.06 Thursday 14-16, hall S3, Leading Collaboration, Lic.Sc. Jari Ylitalo, Dep. of Industrial Eng. and Management n 26.4.06 Wednesday 12-14, hall S3, Business Support Activities in TKK, Dr. Tuomas Mennola, Otaniemi Innovation Centre, Anni Kauranen, TKK Venture Cup coordinator; D.r Mikko Pirinen, Business Dev. Adviser, TKK n 27.4.06 Thursday 14-16, hall S3, Advanced Industrial Usability Design, Prof. Pertti Aula, Univ. of Oulu n 3.5.06 Wednesday 12-14, hall S3, Measuring and Diagnosing of High-tech Product Development Processes, Prof. Pekka Berg, Dep. of Industrial Eng. and Management, TKK

7. 7 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Topics Today n Telecommunications product development Role of vision, mission and strategy Defining modern product development process –Project plan –Industrial product development Telecommunications as 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. 8 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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. 9 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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. 10 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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. 11 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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. reqs.

12. 12 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

13. 13 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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: To increase a company's operational intensity to respond to increased demand O & M: Operation & Maintenance

14. 14 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

15. 15 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

16. 16 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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 Hierachial 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)

17. 17 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen High-tech Product Development n constant product improvements n high development velocity n knowledge sharing from suppliers, competitors, and customers n feedback on demand from customers

18. 18 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

19. 19 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Technology Politics, legislation regulation Rapidly evolving services & applications New lifestyles & fashion GLOBAL NETWORKING ECONOMY - Immediate, personalized, mobile access to services - Information Society - Force Fields -

20. 20 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Research networking Future & emerging technologies Systems & services Multimedia contents & tools Essential technologies & infrastructure New methods of working: @-business+mobile tech Factors in Telecommunications Business Framework

21. 21 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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...

22. 22 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Example: Telecommunications in Home/Office Access -TV/MOVIES -GAMES -broadcasting INTERNET services - unicasting - multicasting - peer-to-peer... Copper (2 way) DVB-S DVB-Terrestrial (DiGi-TV) DVB-C, Cable TV ADSL/ ISDN cable- modems Mobile access: 2G: GSM 2.5G: GPRS, HSCSD, EDGE 3G : UMTS Network operators Service providers Content providers Device manufacturers ENERGY PLC Wi-Fi/ Bluetooth/ Ethernet

23. 23 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Telecommunication Service Environment is Complex and Evolving!

24. 24 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Example: Add2Phone’s* Value Network (a mobile marketing company) 1. Companies/products to be advertised/ sponsored 2. Renting advertisement space 3. Buying content (protected by IPRs) 1 2 3 *Add2phone was the industrial partner in S-72.124 Workshop in spring 2000

25. 25 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Practical Value Networks are Complex For more discussion see http://www.sveiby.com/articles/Allee-ValueNets.htm

26. 26 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen II Tools for Generating and Cultivating Ideas

27. 27 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Personal Process of Creativity* *T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academic Press, 2003

28. 28 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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!)

29. 29 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

30. 30 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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 Vision of state-of-the-art and future trends is very important! Customers Market Technology Competitors Future visions

31. 31 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

32. 32 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Brainstorming n Objectives: Bring about creative solutions (even for unidentified!) problems n Take solution candidates one after another until unusual solutions are generated n For a start take a word or words, from “a dictionary at hand” to feed the process and apply associations n Generate ideas without critics! Thus –many potential solution candidates are generated –whole problem dilemma may change! n For concluding the session –analyze results for instance by SWOT, FFA and/or Mind Mapping –Condensed and classified ideas can be used to support new sessions or other applications

33. 33 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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!!!)

34. 34 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

35. 35 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

36. 36 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Understanding process outputs a different way n Themes can be seen from different perspectives by using “Synetics*”: *Gordon, W.J.J., Synetics: The development of creative capacity, 1961. Fig: Axon 2002, http://web.singnet.com.sg/~axon2000/index.htm

37. 37 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Synetics questions explained Substitute/Simplify (What would you do in my place?) Combine (Think about software being capable of evolving and reproducing?) Adapt (Think what would happen if you would have wings?) Modify/Distort (What if cars would sometimes be used upsidedown?) Put to other purposes (Think your mailbox as a kite!) Eliminate (What would you end up by removing the batteries?) Rearrange/Reverse/Scale (Reverse the order of blocks?)

38. 38 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen

39. 39 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

40. 40 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Example of a Mind Map Mind Manager (www.mindman.com)

41. 41 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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 MindManager ® or eMindMaps ® ) or by using simple detachable notes on a blackboard.

42. 42 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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 *http://web.singnet.com.sg/~axon2000/index.htm

43. 43 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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

44. 44 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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-72.124 spring ‘99

45. 45 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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!

46. 46 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen Force Field Analysis: Example

47. 47 Helsinki University of Technology,Communications Laboratory, Timo O. Korhonen 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 –Synetics –Force Field Analysis n The best way to learn these methods is to use them!