2. Decision(Insurance?% Me in 2005: 2 Product VP: UX is blah
blah contextual inquiry usability heuristic evaluation yadda yadda
etc.
3. Decision(Insurance?% Me in 2005: 3 Product VP: Oh. You mean
youre my decision insurance. You conrm whether weve made the right
decision. Or not. UX is blah blah contextual inquiry usability
heuristic evaluation yadda yadda etc.
4. Decision(Insurance?% Me in 2005: 4 Product VP: Oh. You mean
youre my decision insurance. You conrm whether weve made the right
decision. Or not. Umyes.Yes we are!
5. In(This(Talk% Biz speak Risk Disruption
InnovationPrototyping A cautionary talePrototyping as part of
innovation strategyYour homework assignment 5
6. Biz Speak 6
7. Risk(In(Business% Theres a metric crapton* of dierent risk
types in the business literature 7* 1,000 craptons = 1
kilocrapton
8. New(Product(Development(Risk% Were talking about the risks
associated with new product development (NPD).Some fundamental
points:Businesses dont take risks without the possibility of
reward.New product development risk can never be completely
quantied. It is inherently uncertain. 8
9. Perceived(Versus(Actual(Risk% We are biased.
9http://en.wikipedia.org/wiki/Risk_perceptionhttp://www.susannahertrich.com/risk.php
PerceivedRisk ActualRisk http://http://www.psandman.com/
10.
Bias(In(Percep/on(of(New(Product(Development(Risk%Perceptions of
NPD risk are aected by: Organizational cultureInstitutional
barriers to innovationPerverse incentive structuresIncumbency
complacency And so on10
11. The(Biggest(Risk(Of(All% Time and again, its been shown
that the greatest risk of all is not acting.Peachtree vs.
QuickBooksiRiver & Creative vs. iPod11
12. The(Biggest(Risk(Of(All% WordStar & WordPerfect vs.
OceBlackBerry vs. iOS & Android12
14. Disrup/on:(Just(One(Type(Of(Innova/on% 14 TermDenition
Innovation New products and services that succeed in the market.
They meet customers needs or address their pain points. Sustaining
innovation An innovation that improves an existing product or
service. It sustains the current business model or revenue stream.
Disruptive innovation An innovation that enters a market and
disturbs the prevailing order of things, taking share from the
market incumbents.The Innovators Dilemma: When New Technologies
Cause Great Firms to Fail (1997). Clayton M. Christensen. Harvard
Business School Press.
15. Sustaining(Versus(Disrup/ve(Innova/ons% 15 ExistingNew New
Existing Product Market DisruptiveNew product Existing market
DisruptiveNew product New market SustainingExisting product
Existing market DisruptiveExisting product New market The
Innovators Dilemma: When New Technologies Cause Great Firms to Fail
(1997). Clayton M. Christensen. Harvard Business School Press.
16. Innova/on% Innovation is one of those terms that everyone
thinks they knowbut do we all share the same
understanding?Innovation means creating new products or services
that succeed in the market.Q: If it doesnt succeed, is it an
innovation? A: Nope.16
17. An(Innova/on(Fills(A(Job(To(Be(Done% People "hire" a
product to handle a "jobInnovation is the process of solving for
the job.What is the job? It could be anythingeither functional or
emotional. 17 Finding the Right Job For Your Product. (2007,
Spring). Clayton M. Christensen, Scott D. Anthony, Gerald Berstell
& Denise Nitterhouse. MIT Sloan Management
Review.http://sloanreview.mit.edu/article/nding-the-right-job-for-your-product/
18. Avoiding(Disrup/on(Is(Easy((In(Theory)% The solution is
self-disruption. 18
19. SelfRDisrup/on% Identifying a new basis of competition a
dimension of customer value and orienting your efforts to this new
world. Entering a market youre already in with a low-end,
high-convenience disruptive innovation. Letting your mature
products profits decline naturally while the new product takes off.
19Blue Ocean Strategy: How To Create Uncontested Market Space And
Make The Competition Irrelevant. (2005). W. Chan Kim & Rene
Mauborgne. Harvard Business Review Press.
20. What(Have(We(Learned?% The greatest risk is in not
attempting to innovate.Failing to act leaves you open to
disruption.Self-disruption is an eective way to maintain market
position.20
21. Prototyping 21
22. 22
23. Prototype(Versus(Mockup% Prototypes are tested in the eld.
Mockups arent.If you test your mockup in the eld, it magically
becomes a prototype. 23
24. Typical(Prototype(Tes/ng(Session% 24
25. A Cautionary Tale 25
26. We(SpoVed(An(Opportunity% At a former company, product
management asked the UX team to conduct eld research with small
businesses. We identied an opportunity for an accounting product
that served new value dimensions.Thats awesome! Woo! 26
27. Product management began writing up a business case. We
created personas and goals And mocked up workows and views.We
started testing the mockups 27
28. Product management began writing up a business case. We
created personas and goals And mocked up workows and views.We
started testing the mockups And senior management promptly went
batshit crazy. 28
29. What went wrong? 29 Org Culture New products just werent
done here. Growth by acquisition.Executives had no incentives to
create new products.In fact they had strong disincentives.
30. What went wrong? 30 Org Culture New products just werent
done here. Growth by acquisition.Executives had no incentives to
create new products.In fact they had strong
disincentives.Institutional The organization had very few people
who had ever worked on new products.There was no institutional
memory or process.
31. What went wrong? 31 Org Culture New products just werent
done here. Growth by acquisition.Executives had no incentives to
create new products.In fact they had strong
disincentives.Institutional The organization had very few people
who had ever worked on new products.There was no institutional
memory or process. PM & UX Mistakes We had the data, but we
failed to communicate the pressing need eectively.We failed to
build awareness and alignment.
32. What went wrong? 32 Org Culture New products just werent
done here. Growth by acquisition.Executives had no incentives to
create new products.In fact they had strong
disincentives.Institutional The organization had very few people
who had ever worked on new products.There was no institutional
memory or process. PM & UX Mistakes We had the data, but we
failed to communicate the pressing need eectively.We failed to
build awareness and alignment. Once we started showing the
prototype, it was perceived as insubordinate and threatening.
33. We got shut down within a couple weeks of the rst prototype
tests. 33
34. But organizational cultures are mutable. You can change an
organizations culture! So I gave it a shot34
35. Prototyping As Part Of Innovation Strategy 35
36. Picking(Up(The(Pieces%Executives like process. They really
like repeatable processes. So I created a business process for
catalyzing innovation at the company.It included:Field research
(not just surveys) to discover new value dimensions.Rapid
prototyping and design iteration.Cross-disciplinary involvement:
product, design, development. And a whole lot more.36
39. Win!% Prototyping and iteration based on customer feedback
became part of: Initial value discoveryNew product
developmentBusiness strategy 39 UX UX
40. Benets(For(The(UX(Team(And(The(Business%We moved UX up the
value creation chain. We utilized our skills at the front end of
the process On an equal footing with product management and
development. 40
41. Win?% Of course it got shut down with the next reorg and
change in management.And we never did get our executives incentives
changed so their compensation was tied to new product development.
41 I never had any illusions of winning that battle.
42. I(Made(Something(For(You%Ive kept working on the process.I
completely rewrote it and removed references to the prior
company.Its available under the Creative Commons license.Support
open culture!Get it here: http://shermanux.com/ resource_rci.php Or
http://bit.ly/1I0xz7Y42
43. What(It(Covers%The rapid contextual innovation model and
the 3-3-1 process.How to get executive buy-in for observation
research, rapid iterative prototyping, and opportunity
assessment.How to make it an ongoing program, not a one-time
deal.43
44. What(It(Doesnt(Cover% It doesnt cover prototyping tools or
techniques. It doesnt go into detail about how to run the discovery
and prototyping sessions. Those are topics for another day.Ill be
providing more resources going forward. 44
45. What(Else(You(Need(To(Implement(A(Program% More details for
how the team works together. Training on how to spot
opportunities.A rapid collaborative prototyping process. A template
for pitching the opportunity.The validation and iteration process.
45
46. The(Takeaways%Field observation and iterative prototyping
are a powerful combination for discovering customer value. Take a
strategic approach! Make the process yours.Create alignment across
disciplinesAnd up the chain of command.46 This leads to UX
success!
47. Your Homework Assignment 47
48. Make(a(30R60R90(Plan% 48 30 Days Learn about your
organization. Where are the obvious and hidden barriers? Assess
your / your teams eld observation & prototyping skills. Get
current on prototyping tools and techniques.090
49. Make(a(30R60R90(Plan% 49 30 Days Learn about your
organization. Where are the obvious and hidden barriers? Assess
your / your teams eld observation & prototyping skills. Get
current on prototyping tools and techniques.60 Days Start the
conversation with the power brokers. Make it clear you want to be a
service to product management, not supplant them. Build your
process model and ask to present it.Set realistic expectations: No
home runs the rst time out. Its a learning process. 090
50. Make(a(30R60R90(Plan% 50 30 Days Learn about your
organization. Where are the obvious and hidden barriers? Assess
your / your teams eld observation & prototyping skills. Get
current on prototyping tools and techniques.60 Days Start the
conversation with the power brokers. Make it clear you want to be a
service to product management, not supplant them. Build your
process model and ask to present it.Set realistic expectations: No
home runs the rst time out. Its a learning process. 90 Days Ask to
pilot it.Ask for contributor nominations from product, dev, and any
other organizations.Go to the eld.Run it like an agile project.
Report the results in terms of client value AND of culture
change.090
51. Bonus!%If you pull this o, youll have a major stake in your
organizations future growth. Thats pretty neat! 51
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