Antifragility in New Product Development: How Enhancing Optionality Improves Development Experience
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In the book Antifragile: Things that Gain from Disorder, Nassim Nicholas Taleb shared insights on optionality that can be expanded to include new product development environments. This presentation provides an introduction to the non-linear gains associated with antifragile systems that may be realized by designing new product development environments that help individuals improve their capability to synthesize many new options continuously and enhance their proficiency to exercise options that are attractive. This presentation includes a comparison to concepts represented in Boyd's OODA Loop sketch.
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Antifragility in New Product Development: How Enhancing Optionality Improves Development Experience
- 1. Mark A Hart, NPDP 1 Antifragility in New Product Development: How Enhancing Optionality Improves Development Experience
- 2. Outline • Characterizing development environments • Iatrogenesis • Typical Options • Development Options • Comparing Development Options to Concepts Represented in Boyd’s OODA Loop Sketch • Enhancing Optionality throughout Development • Antifragility and Development Experience 2
- 3. Characterizations of development environments • Fragile • Robust • Resilient • Antifragile 3
- 4. Fragile development environments • Do not welcome disorder • When uncertainty is injected, the typical results are unpleasant 4
- 5. 5 One obstacle can prevent the realization of value
- 6. Examples of harmful conditions: • Incorrect, incomplete, or misleading information • Problematic handoffs • Disagreements among functional groups 6
- 7. Examples of unpleasant results: • Delays • Cost overruns • Insufficient adoption of the product • Frustration 7
- 8. 8 The more fragile the development environment, the less likely it is to thrive
- 9. From project-to-project • Robust development environments tend to survive unchanged • Resilient development environments survive changes from external factors 9
- 10. Antifragile • An adjective created by Taleb • The exact opposite of fragile 10
- 12. Antifragile An antifragile system thrives and grows when exposed to volatility, randomness, disorder, and stressors and it welcomes adventure, risk, and uncertainty 12
- 13. 13 Iatrogenics: Damage from treatment in excess of the benefits
- 14. 14 Preventable harm resulting from the treatment or advice of a healer Iatrogenics:
- 15. Sources of potentially harmful inputs • Specialists that insist that the development problem relates to their area of expertise • Innovation pundits, consultants, and vendors • Interventionalists • Status quo 15
- 16. 16 Recognizing harmfulness is more difficult in development environments that isolate individuals of different functional specialties
- 18. Reduce harmful inputs by: • Requisite Variety • Disintermediation • Pair Development 18
- 19. 19 Formulated by W Ross Ashby = variety of potential responses = variety of disturbances (problems) = variety of outcomes tolerable by the essential variables Requisite Variety
- 20. 20 Requisite variety requires a large repertoire of possible responses
- 21. 21 Achieving Requisite Variety • Mobilize network of contributors with diverse specialties and multiple perspectives • Additional training • Access to expertise • Cooperation
- 22. 22 Without requisite variety, familiar patterns may not be recognized as insufficient responses
- 23. 23 Without a variety of potential responses at the appropriate times, a development environment may be
- 25. To ensure the adaptability of the development network • Amplify appropriately • Attenuate appropriately 25
- 26. Disintermediation • Remove layers between individual contributors and data • Remove barriers between decision makers 26
- 27. 27 Facilitate Disintermediation • Experience interactions of customers with prototypes • Direct observations that promote full- fidelity interactions
- 28. Pair Development • Interaction of disciplines • Synthesis of options • Develop self-correcting focus and direction 28
- 29. 29 Reducing iatrogenesis is a prerequisite to synthesizing more attractive options
- 30. Typical Options • Provides the buyer the potential to take action • No obligation to buy or sell 30
- 31. 31 A quality of state where choice or discretion is allowed
- 32. 32 An option is a substitute for knowledge
- 34. Typical Options • Initially depends on factors such as negotiation skills • Eventually depends on the type of control individuals have over their decisions 34
- 35. Development Options • Associated with current capabilities • Within project constraints 35
- 36. 36 Synthesis: a process of connection to generate something new and different
- 37. 37 A synthesis approach enables one to imagine how several capabilities may work together to produce the desired result
- 38. 38 Analyze situations and synthesize new options continuously
- 39. 39 Interaction with the environment that enables individuals to comprehend, shape, and adapt
- 40. 40 Enables faster tempos and rhythms and compression of cycle times
- 41. 41 Non-linear gains by synthesizing many options and exercising attractive development options
- 42. 42 Comparing Development Options to Concepts Represented in Boyd’s OODA Loop Sketch © Illustration by Mark A Hart 2014. Lower graphic is based on “The Essence of Winning and Losing,” John R Boyd, June 1995.
- 43. Enhancing Optionality throughout Development Change the environment to improve the capability to synthesize many development options and exercise attractive development options 43
- 44. Enhancing Optionality throughout Development • Design the development environment to embrace optionality • Produce new repertoire • Develop capabilities for rapid observation, orientation, decision, and action • Improve the capability to shift rapidly between options • Improve the capability to synthesize options that are cohesive across the network and cohesive over the duration of the project • Improve the proficiency to exercise attractive options 44
- 45. “skin in the game” Development Experience 45
- 46. 46 Development Experience may improve incrementally by reducing fragility, increasing robustness, or increasing resilience
- 47. 47 Development Experience may improve dramatically by designing the environment to improve antifragility
- 48. 48 The option is an agent of antifragility
- 49. 49 Development options are agents of development experience
- 50. Developing Winners: Assimilating the Insights Encapsulated in Boyd's OODA Loop 50 www.Developing-Winners.com
- 51. Mark A Hart 51 www.OpLaunch.com Twitter: Antifragility in New Product Development: How Enhancing Optionality Improves Development Experience 18 June 2014 Development Experience @OpLaunch
Hinweis der Redaktion
- From project-to-project, a robust development environment tends to survive unchanged. Processes tend to be preserved. Individual contributors tend to retain their employment status. From project-to-project, a resilient development environment survives changes from external factors. After a project is complete, there may be changes such as a re-arrangement of the organizational chart. New tools may be incorporated. The organization survives to serve the needs of the next project.
- Requisite Variety For a development environment to be successful, only a large repertoire of possible responses can address the variety presented by a complex set of development problems that emerge throughout projects.
- Achieving Requisite Variety In a new product development environment, requisite variety may be achieved by mobilizing a network of contributors with diverse specialties and multiple perspectives. To be successful, individuals may require additional training, access to individuals with unique expertise, and cooperation.
- Without requisite variety, previously successful responses to familiar patterns may not be recognized as insufficient responses.
- Without a variety of potential responses at the appropriate times, a development environment may be fragile.
- If there is excessive variety, the agility of the development environment may be reduced.
- To ensure appropriate adaptability, the network determines that certain responses should be amplified. Other responses are attenuated.
- Disintermediation removes layers between individual contributors and data. It removes barriers between decision makers.
- Facilitate Disintermediation One way to facilitate disintermediation in new product development environments involves individual contributors experiencing the interactions of customers with prototypes (or other experiments related to the product being developed). Direct observations that promote full-fidelity interactions are preferable to mediation approaches such as presenting individuals with reports that summarize activities.
- Pair Development is implemented by facilitating the interaction of individuals of different disciplines (such as a coder and a marketer). Pair development provides an opportunity for interaction through activities such as dialog and sketching. The result of pair development should be the synthesis of options, not a summary of previous activities. Typically, no slides sets are used during these interactions. The purpose of pair development is not cross-training. The purpose is to develop a self-correcting focus and direction informed by the analyses of multiple perspectives.
- Reducing iatrogenesis is a pre-requisite to synthesizing more attractive options.
- If you would like to learn more about “Antifragility in New Product Development” or explore other new product development resources, I invite you to visit the OpLaunch website at www.oplaunch.com The “Development Experience” podcast is available on iTunes. Copyright Mark A Hart, June 18th, 2014.