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Design-Driven Product Line and Portfolio ManagementMatt May!eldIIT Institute of Design, ChicagoAssistant Dean, Academics
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Matt May!eld . Dec 2013
IIT Institute of Design, Chicago- Graduate and PhD programs in advanced Design- Emphasis on disciplined methods for guiding innovation
Motorola Mobility (now a part of Google)- Mobile devices/services strategy and planning - Emphasis on understanding the impact of mobility on daily life
Doblin Group (now a part of Deloitte)- Innovation & strategy consulting- Emphasis on user-centered techniques for business innovation
2004-present
1992-2001
2001-2008
Academic
Corporate
Consulting
Matt Mayfield
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Matt May!eld . Dec 2013
• McDonalds• Amway
• Haworth furniture
• Texas Instruments• Motorola
• Baxter Medical
• SAS Airlines
• Sto Corp• Wierton Steel
• Polycom• Monsanto
Consumer
Product
B2B
Service
• SC Johnson
Areas of experience
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Matt May!eld . Dec 2013
IIT Institute of Design
Product Design
Comm. Design
Interaction Design
Strategy & Planning
User Research
Systems & Platforms
The evolution of the field of design has led to intersecting areas of study
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Matt May!eld . Dec 2013
Product management is increasingly difficult...
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Matt May!eld . Dec 2013 . image: http://en.wikipedia.org/wiki/Supermarket
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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://isabelles!shbowl.!les.wordpress.com/2012/02/img_0657.jpg
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Matt May!eld . Dec 2013
How to make things/services
What’s worth making
NowThen
Capa
bilit
yThe challenge
Matt May!eld . Dec 2013 . source: Patrick Whitney, IIT Institute of Design
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Matt May!eld . Dec 2013 . image: http://www.zdnet.com/blog/btl/
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Ring tone
VR/TTS
2011 Expected Market Value Chain Revenue ($bil)
Personal safety Hospitality wayfinding
CA
GR
% 2
009-
2013
Enterprise VPN/Security
Professional healthcare
Personal care & wellness Enterprise unified communication
Video on demand Mobile payment
Outdoor/rugged phone
VoIP
Advertising
Music streaming Music on demand
Mobile TV
Gaming
Elderly phone
Coordinate Parenting & family monitoring
Wearables
-10%
20%
40%
60%
80%
100%
$0
MID
Netbook
UMPC
$35 $20 $10 $4 $2
Consumer IM Mobile banking
Ringback tone
Education Access
Wallpaper
Navigation
Pets tracking
0%
$60
Mobile Social Networking Consumer Email Consumer MMS
Memory keeping/sharing
Digital picture frame
Fashion / Luxury phone
Enterprise mobile broadband
Consumer SMS
eBook Eco
PND Broadband Game console
Broadband audio player
Broadband video player
Broadband digital still camera
Broadband camcorder ??
?
Tangential opportunities in mobile wireless
Matt May!eld . Dec 2013
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Matt May!eld . Dec 2013
Traditional tools are limited...
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Matt May!eld . Dec 2013 . image: http://market.qlikview.com/idiscover-for-imis.html
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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://newsroom.blogs.cnn.com/2013/04/15/a-rather-rare-weather-prediction/
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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . images: wikimedia.org/wikipedia/commons/2/2b/ and http://news.mynavi.jp/news/2001/05/23/10l.jpg
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Matt May!eld . Dec 2013
What now...?
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Matt May!eld . Dec 2013
Analysis Synthesis
• Examine market• Know customers• Generate options
• Choose direction• Specify offerings• Deliver offerings
Simplified view of InnovationStepping back from the details
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Matt May!eld . Dec 2013
Analysis Synthesis
• Examine market• Know customers• Generate options
• Choose direction• Specify offerings• Deliver offerings
Simplified view of InnovationStepping back from the details
Product Management
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Matt May!eld . Dec 2013
Strategy
Portfolio Planning
Planning also requires two perspectives
De!nition
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Matt May!eld . Dec 2013
Strategy
Portfolio Planning
Planning also requires two perspectives
De!nition
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Matt May!eld . Dec 2013
Strategy
Portfolio Planning
Planning also requires two perspectives
De!nition
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Matt May!eld . Dec 2013
Strategy
Challenges that design can help with
De!nition
Analysis Synthesis
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Matt May!eld . Dec 2013
Strategy
Challenges that design can help with
De!nition
Analysis Synthesis
Partial context
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Matt May!eld . Dec 2013
Strategy
Challenges that design can help with
De!nition
Analysis Synthesis
Partial context
Random options
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Matt May!eld . Dec 2013
Strategy
Challenges that design can help with
De!nition
Analysis Synthesis
Partial context
Random options
Dull decisions
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Matt May!eld . Dec 2013
Integrating the context
Challenge 1
Strategy
Definition
Analysis Synthesis
Random options
Dull decisions
Partial context
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Matt May!eld . Dec 2013
Customers Competition
Context has many elements
Company
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Matt May!eld . Dec 2013
CompetenciesUseful for focus, can sometimes be too narrowing
Goalsstrategic goals are often implicit and emergent
Positionbenchmarks are ambiguous
Desire to changepain can felt unevenly across the organization
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Matt May!eld . Dec 2013 Matt May!eld . Dec 2013 . image: http://img1.etsystatic.com/000/0/5715016/
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Matt May!eld . Dec 2013
Form
Lenovo Miix 2
Apple iPad mini 2
Samsung Galaxy Tab 3
Acer Iconia W3
Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
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Matt May!eld . Dec 2013
Form
Lenovo Miix 2
Apple iPad mini 2
Samsung Galaxy Tab 3
Acer Iconia W3
Category
Apple iPod touch
Google Nexus 10
Samsung Galaxy
Samsung Galaxy Note
Motorola DROID XYBOARD
Microsoft Surface Pro 2
Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
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Benefit
Nokia Lumia 1520
HTC One mini
Amazon Kindle Fire HDX
Sony Playstation Vita
Canon Powershot A2600
Samsung Netbook
Asus G51Jx 3DE
Matt May!eld . Dec 2013
Form
Lenovo Miix 2
Apple iPad mini 2
Samsung Galaxy Tab 3
Acer Iconia W3
Category
Apple iPod touch
Google Nexus 10
Samsung Galaxy
Samsung Galaxy Note
Motorola DROID XYBOARD
Microsoft Surface Pro 2
Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
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Benefit
Nokia Lumia 1520
HTC One mini
Amazon Kindle Fire HDX
Sony Playstation Vita
Canon Powershot A2600
Samsung Netbook
Asus G51Jx 3DE
Matt May!eld . Dec 2013
Form
Lenovo Miix 2
Apple iPad mini 2
Samsung Galaxy Tab 3
Acer Iconia W3
Category
Apple iPod touch
Google Nexus 10
Samsung Galaxy
Samsung Galaxy Note
Motorola DROID XYBOARD
Microsoft Surface Pro 2
Matt May!eld . Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
Entertainment
Communication
Productivity
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Matt May!eld . Dec 2013
Customers Competition
Integrated and interpreted context
Company• Activities• Adoption
• Benefits• Differentiation
• Position• Pain
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Context of Healthcare & Mobile Technology
Matt May!eld . Dec 2013
Dimensions of customers and competitive drivers
Domains of technical innovation
Product and service directions
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Matt May!eld . Dec 2013
Directing meaningful options
Challenge 2
Strategy
Definition
Analysis Synthesis Dull decisions
Partial context
Random options
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Matt May!eld . Dec 2013
Viable
Desirable
Possible
Sustainable profits
Technology capability
Valued benefits
Looking for the innovation sweet spot...
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Matt May!eld . Dec 2013
Viable
Desirable
Possible
Sustainable profits
Technology capability
Valued benefits
...requires cross-disciplinary teamwork
Marketing
Finance
Engineering
Management
Design
Distribution
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Matt May!eld . Dec 2013 . image: http://www.albemarle.edu/news/397/511/QEP-Brainstorming-Session-at-COA
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Matt May!eld . Dec 2013
Focus on quantity ...many ideas
Simplified view of InnovationBasic brainstorming is ineffective
Traditional “rules” result in...
Withhold criticism ...many bad ideas
Welcome unusual ideas ...many silly, bad ideas
Build on others’ ideas ...many more, silly, bad ideas
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Matt May!eld . Dec 2013
New / Better product experiencesNew / Better business modelsNew / Better market spacesNew / Better capabilities
Simplified view of InnovationKnow what you are solving for
Different types of problems require different techniques, and none of them can be finished in a single session.
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Matt May!eld . Dec 2013
Simplified view of InnovationBetter tools and techniquesCustomer Journey
Co-Design / Participatory Design
Design-Driven InnovationRoberto Verganti
101 Design MethodsVijay Kumar
Designing for GrowthJeanne Liedtka
Rapid Prototyping
Exposing the Magic of DesignJon Kolko
Context modelingConcept Systems
Experience Storyboards
Scenario Road-mapping
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Matt May!eld . Dec 2013
Leading powerful directions
Challenge 3
Strategy
Definition
Analysis Synthesis
Partial context
Random options
Dull directions
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Matt May!eld . Dec 2013
Strategic Alignment & Importance
Product & Competitive Advantage
Market Attractiveness
Leverage Core Competencies
Technical Feasibility
Financial Reward vs. Risk
LOW MED-LOW MED-HIGH HIGH
Not important to business; low impact
Somewhat supports business
Supports business strategy; good impact
Aligns well; very important; high impact
None; neutral customer feedback
Limited; marginally superior; OK value
Some new benefits; good value; positive
feedbackMajor new benefits; very
positive feedback
Low growth/margins; tough competition
Modest market; limited growth
Significant market; good growth/margins
Large, growing; weaker competition
No opportunities; required skills weak
Some opportunities; required skills moderate
Considerable leverage; skills / resources needed
exist
Excellent leverage; excellent fit between needs and company
Low; big gap; technology new to company
Modest; a few hurdles; limited evidence for technical feasibility
Good; small gap; some evidence of technical
feasibility
Straight-forward; have already demonstrated
technical feasibility
Poor; NPV negative; payback > 5yrs
Modest; NPV positive; payback ~ 4yrs
Fairly good; NPV positive; payback ~ 2yrs
Excellent; NPV positive; payback < 1yr
Scorecards can help...
Matt May!eld . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products
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Matt May!eld . Dec 2013
Strategic Alignment & Importance
Product & Competitive Advantage
Market Attractiveness
Leverage Core Competencies
Technical Feasibility
Financial Reward vs. Risk
LOW MED-LOW MED-HIGH HIGH
Not important to business; low impact
Somewhat supports business
Supports business strategy; good impact
Aligns well; very important; high impact
None; neutral customer feedback
Limited; marginally superior; OK value
Some new benefits; good value; positive
feedbackMajor new benefits; very
positive feedback
Low growth/margins; tough competition
Modest market; limited growth
Significant market; good growth/margins
Large, growing; weaker competition
No opportunities; required skills weak
Some opportunities; required skills moderate
Considerable leverage; skills / resources needed
exist
Excellent leverage; excellent fit between needs and company
Low; big gap; technology new to company
Modest; a few hurdles; limited evidence for technical feasibility
Good; small gap; some evidence of technical
feasibility
Straight-forward; have already demonstrated
technical feasibility
Poor; NPV negative; payback > 5yrs
Modest; NPV positive; payback ~ 4yrs
Fairly good; NPV positive; payback ~ 2yrs
Excellent; NPV positive; payback < 1yr
Scorecards can help...
Matt May!eld . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products
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Matt May!eld . Dec 2013
...but decision making can be biased
Complexityassuming one can fully see and understand a complex situation
Anchoringdifficulty revisiting initial assessments however inaccurate
Emotional taggingassociating past emotions when perceiving similar situations
Attributionoverweighting success as individual, failure as external
Matt May!eld . Dec 2013 . source: Daniel Kahneman (July 2003) “Delusions of Success” HBR, Andrew Campbell (Feb 2009) “Why Good Leaders Make Bad Decisions”, HBR
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Matt May!eld . Dec 2013 . source: Sir Patrick Moore (1969) & http://en.wikipedia.org/wiki/List_of_lunar_features
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Matt May!eld . Dec 2013 . source: Chesley Bonestell, The Great Wall. “Conquest of Space” (1949) Life Magazine
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Matt May!eld . Dec 2013 . sources: Motorola, Domus Academy, ReadyToPresent
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Matt May!eld . Dec 2013
Where does this leave us?
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Ultimately, management is leadership
Matt May!eld . Dec 2013
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Ultimately, management is leadership
Matt May!eld . Dec 2013
option 1
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Ultimately, management is leadership
Matt May!eld . Dec 2013
option 1
option 2
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Matt May!eld . Dec 2013
How to make things/services
What’s worth making
NowThen
Capa
bilit
yWhich is increasingly hard
Matt May!eld . Dec 2013 . source: Patrick Whitney, IIT Institute of Design
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Matt May!eld . Dec 2013
Fully integrated context
Directed and meaningful options
Compelling and powerful directions
Matt May!eld . Dec 2013
Design can help
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Matt May!eld . Dec 2013
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
Ahead
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
AheadBehind
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
Above
AheadBehind
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
Above
AheadBehind
Below
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
AboveBeyond
Beside
AheadBehind
Below
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
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Matt May!eld . Dec 2013
Through
AboveBeyond
Beside
AheadBehind
Below
Mintzberg: Strategic Thinking as “Seeing”
Matt May!eld . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland