The System is the Product

SVPMA   The System is the Product 1© 2007 frog design. confidential & proprietary. August 3, 2007

The System is the ProductAdam Richardson / Director of Product Strategy

SVPMA

August 3, 2007

© 2007 frog design. confidential & proprietary.

SVPMA   The System is the Product 2© 2007 frog design. confidential & proprietary. August 3, 2007

We are a strategic-creative consulting firm.

frog brings a unique combination of strategic and creative talent to helpcompanies envision, realize, and deliver actionable strategies for growth.

Our rigorous yet unorthodox approach yields breakthrough innovationand a sustainable competitive edge.

SVPMA   The System is the Product 3© 2007 frog design. confidential & proprietary. August 3, 2007

325 people from 32 countries. 39 years global experience.

New York, NY USA Stuttgart, GermanyMilan, Italy

Shanghai, China

San Francisco, CA USAPalo Alto, CA USA (HQ)

San Jose, CA USAAustin, TXUSA

Seattle, WAUSA

SVPMA   The System is the Product 4© 2007 frog design. confidential & proprietary. August 3, 2007

The System is the Product

SVPMA   The System is the Product 5© 2007 frog design. confidential & proprietary. August 3, 2007

100 Years Ago: “You push the button, we do the rest”

SVPMA   The System is the Product 6© 2007 frog design. confidential & proprietary. August 3, 2007

Systems are more common today

SVPMA   The System is the Product 7© 2007 frog design. confidential & proprietary. August 3, 2007

But designing systems is di!cult

SVPMA   The System is the Product 8© 2007 frog design. confidential & proprietary. August 3, 2007

Systems are abstract and di!cult to see

SVPMA   The System is the Product 9© 2007 frog design. confidential & proprietary. August 3, 2007

Systems are often boring

Train schedule

SVPMA   The System is the Product 10© 2007 frog design. confidential & proprietary. August 3, 2007

Systems cross over organizational boundaries

SVPMA   The System is the Product 11© 2007 frog design. confidential & proprietary. August 3, 2007

The Apple iPod

Why it Stinks• High price• Limited features• Easy to scratch• Hard to carry• Can’t replace battery• Cumbersome menus

SVPMA   The System is the Product 12© 2007 frog design. confidential & proprietary. August 3, 2007

Why the iPod Succeeded

A convergent system that has givenApple a 5+ year competitive edge

SVPMA   The System is the Product 13© 2007 frog design. confidential & proprietary. August 3, 2007

Tecosystems

SVPMA   The System is the Product 14© 2007 frog design. confidential & proprietary. August 3, 2007

Manage Tecosystems Across Experience Touchpoints

SVPMA   The System is the Product 15© 2007 frog design. confidential & proprietary. August 3, 2007

Accessories

MINIRetail

Web

Lifestyle

SVPMA   The System is the Product 16© 2007 frog design. confidential & proprietary. August 3, 2007

Maxtor OneTouch III

SVPMA   The System is the Product 17© 2007 frog design. confidential & proprietary. August 3, 2007

Maxtor OneTouch III

AWARENESS PURCHASE

OUT OF BOXUSE

SVPMA   The System is the Product 18© 2007 frog design. confidential & proprietary. August 3, 2007

Convergence

Convergence

SVPMA   The System is the Product 19© 2007 frog design. confidential & proprietary. August 3, 2007

Turbochef Speedcook Oven

SVPMA   The System is the Product 20© 2007 frog design. confidential & proprietary. August 3, 2007

Turbochef Speedcook Oven

SVPMA   The System is the Product 21© 2007 frog design. confidential & proprietary. August 3, 2007

Turbochef Speedcook Oven

Analogous ProductsCustomer InsightsCultural Trends

SVPMA   The System is the Product 22© 2007 frog design. confidential & proprietary. August 3, 2007

SVPMA   The System is the Product 23© 2007 frog design. confidential & proprietary. August 3, 2007

Alltel Lessons

• Manage up and down• Prototypes as tools for buy-in• Intensive stakeholder

coordination

SVPMA   The System is the Product 24© 2007 frog design. confidential & proprietary. August 3, 2007

Know Thy Organization

GOOGLE APPLE

HP GE

TOP-DOWNBOTTOM-UP

FAITH-BASED

PROOF-BASED

SVPMA   The System is the Product 25© 2007 frog design. confidential & proprietary. August 3, 2007

Business and Technology Challenges

SVPMA   The System is the Product 26© 2007 frog design. confidential & proprietary. August 3, 2007

The User Experience Gap

High

Low

EmergingCategory

MatureCategory

ExperiencePerformance

Crossover

Vertically integratedsystems better

Modular/open-standardssystems better

ExperiencePerformance

ExperienceExpectation

Profit Margin

SVPMA   The System is the Product 27© 2007 frog design. confidential & proprietary. August 3, 2007

Strategic Questions

High

Low

ExperiencePerformance

ExperienceExpectation

EmergingCategory

MatureCategory

Performance/ExperienceCrossover

Profit Margin

How long and what will ittake to close the gap?

How long after acompetitor crosses thegap before profits drop

unacceptably?

How big isthe gap?

SVPMA   The System is the Product 28© 2007 frog design. confidential & proprietary. August 3, 2007

What PMs can do to facilitate convergence

1. Map out the system elements2. Define proximity to experience performance crossover3. Embed systems thinking into the MRD and use it to influence PRD4. Get the whole system in one room5. Set the interfaces within the system as early as possible6. Continually communicate up, down and across to maintain alignment

SVPMA   The System is the Product 29© 2007 frog design. confidential & proprietary. August 3, 2007

Adam.Richardson@frogdesign.com