March 14, 2007

The batting average!

I remember Mike Cowpland saying once "no one has a 1000 batting average in R&D", and it's true. So because of that fact what has happened - companies developing products have cut cost in Manufacturing, ship the manufacturing to China, and then start breathing again. That has worked for a few years, but then more pressure comes along, so they start shipping the product software development Globally, start breathing again, and that has also worked for a few years as well. So the reality has been for product companies:
  1. Reduce Manufacturing Costs
  2. Reduce Software Development Costs
What's next - we know prices aren't going to go up, they are bound to the law of gravity. The next thing is going to be for the years to come:
  • Reduce the failure rate
The third installment of the evolution of product creation, making sure you get the RIGHT product out of the gate! Shareholders are getting tired of paying for R&D efforts falling flat in the market place. They want Companies to bet on the RIGHT product. For 10 product initiatives in most organizations, the vast majority is not going to go anywhere - and 1 is going to be a winner. In consumer speak, the product I buy has roughly the cost of 9 not so great products embedded in it. A big part of the answer is in Design - it will greatly improve the odds for a successful product. Design helps create product that will be quickly adopted with users getting passionate about them. Design executes both with the user context and the Corporation objectives in mind. , Design speaks to the objectives of the corporation, the functionality that can be put forward, and last but not least the task users would be performing with such products. Creating a successful product is cost, time to market, quality, but it also creating the RIGHT product. Creation/Ideation is not done in a vacuum, speculating what the user needs, we need to involve the users. This is our motto at Macadamian. Apple certainly got that, Microsoft also, they have one of the biggest UX lab in number of experts under one roof.

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