BarCamp Perth 10 May 2008 Real Options in Development

By Marc Lehmann | Director/Founder

Real OptionsThe right, but not the obligation, to undertake some business decision, typically the option to make a capital investment.

http://en.wikipedia.org/wiki/Real_options_analysis

Crazy PersonBe a crazy inventor, there's not

enough time to be any other way.

InventionsInventions are cheap real

options. Prototyping & Trials.

Strange(ness)Strange is good. Strange is a real option that has no known upside

but quite often the cost is well known.

Strange AttractorsThe option management has to mix odd skills in development, architecture or business models can cause unexpected results.

FeaturesThe choice, decision, or system that chooses the features has a real option.

AbstainSome real options are better not exercised such as the choice of brand early in a product lifecycle. You give up the real options to act on customer feedback and test brands in smaller markets first.

What FloatsExploit your real options. Throw stuff in the river to see what floats. Try stuff on. Try stuff out.

Organic Engineering

Nature buys lots and lots of options when it produces a multiplicity of offspring. Nature has engineered itself to ensure it has as many options up its sleeve as possible - for survival.

Organic Probability

Nature creates many random variations and some variations survive an prosper. Others fade and die.

Nature is the original Venture Capitalist.

Option = Choice1. Create 1 large feature over a year2. Create 10 small features over a year

and terminate what doesn't work

2 trumps 1 every time2 has natural selection

MathsLet the maths decide. Emotive, personal, instinctive has its place but as portfolio management shows, very few are good at getting it right this way.

Brand OptionsWhen building product or thematic brands below you main brand domains are an example of cheap options. Buy words, names and things you like for $7.99 just in case you need them.

AutomationOne real option a developer holds is the choice to automate or not. This crosses testing, help systems, service, et al.

The option to automate has a premium. Keep assessing these options to see what needs to be exercised.

Marc Lehmann

marc@saasu.comskype: marcleh

twitter: marclehmann

web: saasu.comblog: saasu.com/blog

personal blog: marclehmann.netlinkedin: www.linkedin.com/in/marclehmann

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