1. Stop Wasting Time on Technology Development Stephen Fenwick

2. Speaker Bio Technology Development Specialist, Concept to Market 10 years in technology industry (Navman, Intel, etc) Worked in areas that extended company’s technological capabilities PhD in Computer Science (Australian National University)

3. Overview The problem: – A lot of technology development effort gets wasted Why does this happen? – Difficulty integrating views of multiple stakeholders How can we improve?

4. What’s so Hard? Small Auckland company building PC-based PBX product – Several reworks of technology before project cancelled Dialogic/Intel built CT Media (telephony middleware) – Strong technical drive – Good initial reception – especially trade press – Revenue was underwhelming – local office eventually closed Navman car navigation – Major problems deciding what product features to pursue after initial success

5. The Problem Selecting good innovative ideas and aligning them to the needs of the business is often done badly Results: – Wasted development effort – Wasted $$$ – Products that don’t meet needs of customers – Delayed product launches – Endless chase for “the next big customer” – Demoralised company

6. Why does this happen?

7. The good…

8. The ugly…

9. The Pain Forget those bozos, we know best Build it and they’ll come Let’s just have fun Just tell us what to build and we’ll build it That looks like a customer, let’s chase it

10. Becoming Effective Understand different perspectives Allow different voices to be heard Reach as much agreement as possible – Avoid adversarial “win-lose” approach – Use objective data to avoid “loudest voice wins” Now plan way forward

11. Accept the inevitable… … but see this as the starting point

12. Product development is: Enabler of business growth Needs to know: How new product will advance business. Is everything going OK? Everything’s great… That’s all wrong – you need to change everything! Arrgh!! This is how our technology development helps meet the company’s goals…

13. Where’s the revenue to justify the development expense? Here’s half the budget you asked for. With that budget we can expect revenue of $xx by this date. Product development is: Cost centre with uncertain future revenue stream Needs to know: Accurate picture of costs and projected revenue of new product

14. I’ve just sold a …. We can do that, right? Yes, we can sell that The new key product features are… Product development is: Tool to help meet sales quota Needs to know: Key product features and how to sell them to customers

15. What do you need? We see an uptapped need for… How can we supply this need? We have an idea for... Do you see a market for this? Product development is: An offer to meet needs of new markets Needs to know: How product’s capabilities map to market needs What can you give us?

16. Needs to know: How the product will add value for them

17. Here’s a great new feature. It’s just what you were waiting for, right? This feature is great. What do you like/dislike about the product? This sucks!!! Product development is: Going to make my day easier/more fun/… or Oh no… why have they changed everything? Needs: Product that is easy to use and helps them

18. Bringing It Together Encourage open, non-adversarial discussion to determine the best path forward 1.Pose the questions in the right way 2.Allow all voices to be heard 3.Summarise findings effectively 4.Now plan strategy

19. Encourage Many Ideas Real- Time Traffic Touch Screen Camera Symbian OS Cost Reduction Usability Testing Improved Geocoding Refresh Industrial Design Automotive Grade Better Guidance

20. How Not To Ask Let’s build a product (or next release)! What shall we put in it? Real- Time Traffic Touch Screen Camera Symbian OS Cost Reduction Usability Testing Improved Geocoding Refresh Industrial Design Automotive Grade Better Guidance

21. A Better Way Focus on product capabilities one at a time Avoids immediate focus on trading off favourite ideas Gather 360° perspective on each proposal

22. Communicate Proposal 121 Lucerne Rd Remuera Auckland Points of Interest Landmarks “Improved Geocoding”

23. Gather Viewpoints Significant development cost, but where’s the revenue stream? Not a new feature, so hard to sell This will help expand the market beyond early adopters Can I find my home? If not, I’m not buying. Can I find where I want to go? If not I’m returning the product Our aim is automotive grade reliability. Geocoding is a major source of bug reports, so is a clear weakness that should be fixed.

24. Summarise Cost Cost to market: $500,000 Time to market: 9 months Benefits for Company Higher customer satisfaction Lower rate of customer returns: $300,000 per annum Wider adoption of product: $1,000,000 per annum Strategic Fit Readiness for automotive grade Pushes product towards mainstream Benefits for Customer/User Rapid ability to find intended destination

25. You now have Ability to discuss impact on overall business of tech development Clear picture of costs and benefits; ability to assess impact of budget changes. Clearly articulate who you expect to buy product and why. Understanding of how particular areas of functionality meet market needs. Ability to choose functionality that adds real value. Understanding of how users will actually use the product.

26. Plan Product Releases You now know what’s possible Define objectives of each product release – Target market – Specific customer needs – Revenue objectives Select features according to those objectives – You now have data to do this objectively

27. Conclusion Treat communication with multiple stakeholders as core part of tech development. Remember these stakeholders have very different viewpoints. Aim for styles of communication that engage different viewpoints in constructive way.

28. Questions? Slides available online: http://www.concepttomarket.co.nz/Articles++Downloads.html