Balancing Business + Usage + Technology Workshop by Daniel Walsh nuCognitive

Balancing Business+Usage+Technology
Developing Product Managers
Austin – January 2018
Copyright © 2018 nuCognitive. All rights reserved. SOTA|Walsh,2018-Jan@danielwalsh Linkedin.com/in/danwalsh1115

Copyright © 2018 nuCognitive. All rights reserved. SOTA|Walsh,2018-Jan
Three-Circle Model Development
*Reference: Norman, Donald. The Invisible Computer: Why Good Products Can Fail. 1998.
@danielwalsh
Don Norman’s Three-legged Stool*
The Product
Marketing

Three Fundamental Perspectives
Presentation Copyright © 2017 nuCognitive LLC & Material Copyright Erik Simmons © 2017. All rights reserved.
The best solutions, platforms, and products are:
Marketable, profitable, and affordable:
desirable, useful, and usable:
Manufacturable, functional, and consumable:
Business
Usage
Technology
@danielwalsh

The Three-Circle Model
The three circles combine to create seven regions:
Compelling solutions are found in the
center, balancing all three perspectives
A system lacking sufficient coherence in
all these areas will not be successful
Technology
Usage
Business
@danielwalsh

The Three-Circle Model
The Three-Circle Model is much more than just a picture
The model also introduces a taxonomy and domain
ontology for system design and development that
relates the three major perspectives in detail
The model is both descriptive and prescriptive, and is
derived from practice and experience more than theory
The Three-Circle Model provides concepts and vocabulary that aid discussion and
description of system design and development
@danielwalsh

Balanced Solution Development
Each new system presents its own challenges, as does the environment surrounding the system, the
experience of the development team, and many other factors
Weighting the business, usage, and technology perspectives according to these factors makes sense;
ignoring a perspective entirely does not
Business
Usage
Although the three circles in the model are shown at
the same size, there is a need for balance, not
necessarily equality
We need to develop solutions using a balanced, systematic approach
@danielwalsh

Individual Circles

Business | Economic Viewpoint
Also represented are the economic aspects of interdisciplinary
concerns, such as marketing and production
The business perspective includes economic success criteria for the system, value network
descriptions, and associated business models
Profitable
• Payback period
• ROI1, NPV1
• Business models
Marketable
• TAM1, ASP1, MSS1
• Ecosystem, value networks
• Brand implications
• Relationship to other branded
products
Affordable
• Development &
manufacturing costs
• Resource constraints
1 Total Available Market, Average Selling Price, Market Segment Share, Return on Investment, Net Present Value
Example data:
Business
@danielwalsh

Business | Investment Flow
The financial view of the system involves the flow of investment
Strategy helps transform the organization’s mission into objectives
Objectives guide investment, yielding results
The effect of the results is judged by comparison with objectives,
and this effect is in turn judged in light of the mission
All these activities are governed by financial disciplines, which form
the basis of business models
Business
Finance
Objectives
Results
Strategy
Effect
Mission
@danielwalsh

Usage | Conceptual Viewpoint
Also represented are the conceptual aspects of interdisciplinary concerns,
such as marketing and design
The usage perspective includes a description of the people who will use the
solution, their conceptual model of it, and the associated usage models
Usage
Useful
• Goals, needs, and tasks
• Fit with mental models and
physical abilities
• Confidentiality, integrity,
availability
Usable
• Ease of use
• Intuitiveness, ease of
learning
• Reliability
Desirable
• Connection to human
values
• Willingness to pay
• Aesthetics
Example data:
@danielwalsh

Usage | Experience Flow
Usage
Users
Goals Satisfaction
Human Values
Needs
& Wants
Experience
Qualities
The users’ view of the system involves the flow of experience
Human values shape needs & wants that lead people to set goals for
solution use
Goals shape experience during use, which yields some level of
satisfaction via comparison with goals
Experience qualities are key to interpreting satisfaction in terms of the
underlying human values
All these activities are centered on users and usage models
@danielwalsh

Technology | Implementation Viewpoint
Also represented are the implementation aspects of
interdisciplinary concerns, such as design and production
The technology perspective includes implementation architecture, workloads, and
performance characteristics
Manufacturable
• Alignment with
production capabilities
• Required competencies
• Supply chain readiness
Functional
• Effectiveness
• Fitness for use
Consumable
• Compatibility with current
infrastructure and services
• Acceptability by
community and personal
standards
Example data:
Technology
@danielwalsh

Technology | Workload Flow
Tolerance is key in judging performance as well as
validating the underlying engineering heuristics and
parameters
All these activities are based on and enabled by
engineering disciplines
Technology
Engineering
Performance
Targets
Tolerance
Heuristics
Parameters &
Assumptions
The engineering view of the system is illustrated through the flow of workload
Parameters & assumptions help determine appropriate heuristics that lead to targets
The workload is applied to the solution, which yields some level of performance via
comparison with the targets
@danielwalsh

Business
Finance
Objectives
Results
Strategy
Effect
Mission
Usage
Users
Goals Satisfaction
Human Values
Needs
& Wants
Experience
Qualities
Technology
Engineering
Performance
Targets
Tolerance
Heuristics
Parameters &
Assumptions
Three Fundamental Perspectives and Flows
@danielwalsh

Two-Circle Overlaps

Two-Circle Overlaps
Value relates business and usage
This interaction defines how usage contributes to market share,
competitive advantage, and positioning
Capability relates usage and technology
This interaction defines the interplay between usage, system architecture,
and supporting technologies
Ingredient relates technology and business
This interaction defines how technologies drive profitability and
marketability
@danielwalsh

Value | Market Relationships
Value
Usage
Business
Brand
The economic and conceptual models of the system are related through value
Brand is a combination of physical, functional and emotional
attributes
Brand includes a name and a symbol, and is a foundation of
marketing
An offering consists of a product, service, or combination made
available for sale by a business to a customer
A promise is the anticipation of value created in the mind of a
customer by marketing, user experience, and brand
The market cycle unites the outside world with the economic and
conceptual merits of the product, expressed as value, and focused
on brand
@danielwalsh

Three-Circle Integration

Solution Life Cycle Milestones
Opportunity
An idea, event, or
situation with
favorable
characteristics in
business, usage, and
technology
Concept
One or more abstract
initial renderings of
the eventual solution
suitable to guide
additional work
Candidate
One or more feasible,
detailed realizations of
the concept with
validated value,
capability, and
ingredients
Solution
An integrated set of
products and services
that solves a customer
problem and meets
the requirements of
the opportunity
Creating effective solutions requires a consistent vision that pulls the team forward
Obsolescence
The end of support,
with reuse and
recycling of the
existing solution as
appropriate
@danielwalsh

The Value of Early Solution Information
The Three-Circle Model focuses attention on the overall solution very early
“You will find out how the system performs eventually… the only question is how soon?“ –Tom Gilb
Sequential development processes often make system performance
information available near the end of the process, once later
milestones are met
Early integration based on holistic system design allows for
earlier understanding of how the system functions and performs
Early information about system performance allows for agility in
the development process and prevents extensive rework later on
@danielwalsh

The Three-Circle Model Integration
Integrating business, usage, and
technology combines ingredients to
provide capabilities that deliver value
@danielwalsh

Diagnosing Issues in Solution Development
The Three-Circle Model can serve as a diagnostic tool for teams that are struggling to produce compelling
solutions, or who need to improve their solution development process
Draw the Three-Circle model and place sticky-notes on the model in the appropriate areas to describe
• development activities and deliverables
• assumptions and knowledge gaps
• team skills and experience
Typically, some areas of the model are well populated,
and others are empty
Individuals can identify priorities and propose additions
or changes to what is specified
The result is a strategy for closing gaps, eliminating
redundancy, and improving overall solution definition ?

Exercise
https://www.indiegogo.com/projects/fusion-lens-capture-in-full-360-no-battery-needed-iphone-camera#/
@danielwalsh
New product and service development is full of
assumptions and risks
Brainstorm a list of risks and “leap of faith”
assumptions
http://bit.ly/example360

Debrief
https://www.indiegogo.com/projects/fusion-lens-capture-in-full-360-no-battery-needed-iphone-camera#/
@danielwalsh
Can we make seamless images?
Is the image processing time fast enough?
Will the housing interfere with the flash?
Which phones should we target first?
Are the ruggedized components durable (e.g. lens, housing)?
How long will it take to become profitable?
Are the Customer Acquisition Costs < Lifetime Value of Customer?
Do we have the right price point ($69)?
Is the app easy to use?
How will our 360 image be integrated with sharing ecosystem?
Compatibility with additional phone cases?
What is the right balance between HW & SW revenue streams?
What are the lens and housing manufacturing and supply risks?
Can our suppliers’ mass production capacity meet forecasted demand?
Do we need a 6k image for our MVP?
Will people be willing to carry an additional component?
…

Balancing Business+Usage+Technology
Copyright © 2018 nuCognitive. All rights reserved. SOTA|Walsh,2018-Jan@danielwalsh LinkedIn.com/in/danwalsh1115
Thank you for your participation!
Any feedback on session is appreciated!
www.nuCognitive.com
daniel.walsh@nuCognitive.com
http://bit.ly/walshslides

Balancing Business + Usage + Technology Workshop by Daniel Walsh nuCognitive

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