Posts Tagged ‘market’

The knack of developing ‘new products’

Thursday, October 27th, 2011

As you all know, during the recently held “Lets talk iPhone” event, Apple officially announced the launch of  iPhone4S, iOS5 and iCloud. While it was a disappointment to some people who were expecting the big upgrade to iPhone4, that’s beside the point I want to make in this post. Rewind to April2010, when Apple first launched iPad, as the first ever consumer Tablet in the market. There was a knee-jerk reaction from lot of people, who rejected Apple’s new Tablet concept. There were more naysayers who expressed that they didn’t find any use for it and that the iPad was just a “glorified and bigger iPhone which can’t be used for calls”.  Its everybody’s knowledge how that perception and reactions changed drastically over a period of time. Apple created the undisputed benchmark and a leader in the Tablets market, with many more companies bucking the trend and releasing their me-too versions. In this post, let us look at what it takes to create great products by managing users’ reactions and how you can better define the product.

Great products vs. good products

Some times, you would have come across products that not only have features and functionality to help you do the mundane tasks, but also fit in very well into your life and work. Discerning readers like you are very well aware that there is a difference between great products and good products. Great products differ in that they offer rich context, enable users to realize their goals and enchant them satisfying their implicit and unmet needs. These often go beyond the briefing and provide more than just nice features. Its true that not all products are created with this intent and that they gain users’ acceptance slowly over time.

iPhone and iPad

How users relate and adopt to new products

I have seen an almost pattern-like behavior from users on how they react to products launched as groundbreaking new concepts which go on to become a huge success. I call this the 5A model of User reactions to new products. It starts with an almost hatred like feeling towards the new product. This is because users develop habits with the existing products and are happy using them the way they are. They perceive the new product as a change and a potential threat to their comfort. This could be because of the innate behavior of aversion to change and anything new. Then over time, due to various factors, both external and internal, customers tend to develop an acquired taste for the product.

The 5A model for product adoption

The perceptions and reactions of users to new products almost always follows a gradual progression of steps leading to great adoration for the products. I am not sure if anybody has patented this model already, but these terms came to my mind 3 months ago, when I was working on a new concept product for one of my clients.

  1. Aversion
  2. Acceptance
  3. Admiration
  4. Aspiration
  5. Adoration

I observed this model applicable to many successful products, tracing back to the times of their launch, how they changed with marketing, alignment to business and better product definition.  One of the most successful product companies, Apple and its successful creation, the iPad are not an exception to this model, as we discussed above.

Ask what you are creating

The trickiest thing in developing new products is in understanding, defining and communicating what your product is and what it can do. Most products fail, not because they are designed badly or implemented in a technically incorrect way. They fail because the product vendors could not communicate the purpose and benefits of the product clearly to the customers and users. Or worse still, products are hit the hardest, when the product owners themselves are not clear about the vision and definition of their product.

How to define your new product

Innovation and thinking differently often help you in defining your product, which is a first step in paving the way for its success. The standing example for a successful application of innovation with thinking big is Metamorphosi which changed the way lamps and lighting are created.

Lighting Solution, not just a lamp  Metamorfosi_lighting_solution

While every other player in this market thinks of creating better and attractive table lamps, Artemide realized that they are not merely creating lamps, but helping keep people in better mood through their lighting. So, they decided their product definition as not just as a lamp, but a ‘lighting solution’! Small wonder that Artemide and Metamorfosi are equated to innovation in the home decor segment that triggered many admirers, followers and copy cats too, all around the world.

New product development checklist

The critical success factor in the product development is having a clear vision, direction and purpose for the product or application, that you are creating. You need to define the scope, intent and content of your product, which help in translating the vision into the product design, development and delivery. It is often necessary to go beyond the immediate form and name of the product under description. Do not get attached to, nor be limited by the physical aspects of your product. I always do a check with the following parameters to decide how well we are doing and whether we are on the right path. I use these as a definitive check list to assess the potential success of your product or concept.

  • Business viability
  • Technical feasibility
  • Product usability
  • Resource availability
  • Consistent Quality

The above factors play a decisive and definitive role in the assessment of your product’s potential and performance. Do not underestimate the potential of validating your product against this check list. This would give you a very good measure of how your product is faring and in what direction it is heading to. You can then take necessary course correction and take preventive steps to steer your product back on track. We can talk in detail about applying each of these in the context of your new product, in a separate blog post.

Hope you found this post informative and usable. Happy Diwali to all my Indian friends and followers. Until next post, ciao!

 

Manage change with agility, not just ability

Saturday, August 27th, 2011

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change”.  When I pondered over this popular quote of Charles Darwin, the other day, it occurred to me that ‘change’ is a profound phenomenon that impacts the way we live, work and do virtually every task. Change affects to a large extent, every human being in every phase and walk of life…young and old, rich and poor. Not only people, but organizations too have ‘change’ staring in their face and they have a greater responsibility to manage it and use it to their advantage. In this post, I will touch upon the key aspects of managing change and how organizations need to respond effectively.

The writing is on the wall

When they say that change is the only constant in this world, they meant it to the letter and spirit. Understand that everything is bound to change one day or the other in one way or the other. Don’t think that change is a negative thing and that we need to avoid it, evade it or confront it, to the least. On the contrary, change is for the benefit of all of us and take it as a positive factor that drives us in our lives and careers. Change is inevitable, be prepared for it and embrace it with all the preparation you can.

“Change, for your good
Change to take the lead
Change to be the best!”
 
Ride on the waves of change

In the context of product development and management too, change does play its role to a large extent and leaves its rather heavy imprints. Here, it does touch and signify its presence across all the strata starting from stakeholders, to customers and from partners to the development team. And to manage this change at various levels, organizations need to rely not just on their traditional abilities such as reputation, market capitalization, production capacities etc. To stay ahead in this game of managing change and lead the pack, organizations need to be nimble-footed, flexible and embrace change and act swiftly. Don’t fight change, you may not win the battle and it is not worth the effort. Instead try and ride on the waves of change and you will potentially have a joy ride.

Factoring for change – external and internal

The most important reason for success is to aspire for and be prepared for it. I like the Scouts movement started by Robert Baden Powell and the motto with which the cadets are trained. Every Scout lives by the motto “Be Prepared” and is ready to face, come what may. The Scouts go through a series of training sessions, equipped with the right tools and techniques to be prepared all the time. Similarly, organizations and especially product managers have to follow a few things to do as a precursor and warm up to the game of managing change effectively.

Identify all the potential factors that could affect your organization and products. Categorize them into external and internal factors for easy listing. Some of the external factors that are possibly candidates for change are the market forces, competition,  out-of-control factors related to demand and supply dynamics, Government policies etc. The internal factors could be the capabilities of your own development teams, their skill sets, organizational set up, company policies and politics, to name a few. Of course, these factors could vary from industry to industry and also depends on the nature, size and type of the product you are developing or managing.

To be and to do 

The most important thing is to know what you want to be and what you need to do to reach that stage.

  • Identify the strategic vision of the organization
  • Put together the long term, medium term and short terms goals for the business
  • Identify the key stakeholders who directly influence or influenced by these goals
  • Get all stakeholders aligned and seek their commitment

After you are done with listing the ‘to be’ goals, map them with the internal and external change factors that you identified earlier. The next immediate step is the creation of a ‘to do’ list which is derived from the mapping of ‘to be’ and the internal and external change factors. Often this list of action items is all you need to kick start a movement in your organization. I can’t prescribe the ‘to be’ points as they vary to a great extent based on the industry, domains, your own organization goals, products, people and processes. When you have this list by you, your product can be said to be put on the track. Once on the track, it is entirely up to you as a product manager to drive it in a way to meet the ‘to be’ goals.

Making elephants dance

What among the two items do you think makes it to breaking news- a dancing hyena or a dancing elephant? You are right, its the dancing elephant that makes it to the rolling marquee. It might be for various reasons, but sticking to the subject of the post, I wish to focus on the abilities of a dancing elephant such as its size, presence, and respect that make it a head-turner along with its newly acquired talent of dancing. The combination of agility with the abilities such as market presence, strong brand, talented workforce etc., would work wonders for your organizations and products. It is this healthy blend of the critical success factors and better change management tactics that make successful companies and products.

When I was doing my MBA, a few years ago, I read a book written by Louis Gerstner “Who Says Elephants Can’t Dance? – Inside IBM’s Historic Turnaround”. I loved the way that a company of the size and presence of IBM could be successful despite its size. IBM today is a 100 year-old organization which has seen itself grow from a company making ‘adding machines’ to a pure-play services company that it is today.

   

Everyone would have been surprised when IBM (I guess in 2005) announced that it was selling their PC business to Lenovo. I still remember some people questioning the decision to move out of the business which the company had grown out of as bread and butter for almost 50 years. Even Mr.Gerstner would not have imagined that IBM would rewrite its own History in such a bold way. But, IBM stood by its decision, after reading the writing on the wall, assessing their own strengths and heading up the path of action. A classic case in managing change, using the agility as the key over abilities as the key differentiation.

Agility is the key 

Think of something that could work. Try it for sometime and check if it  is working or not. Adapt it to suit your goals and continue the process. This is the only way to manage the ever-changing landscape of products market. To be able to manage change on a continuous basis, it is not enough if you do the above things once and leave them there.

Here are my tips for making agility as your all-weather friend!

  • Take a few tasks and stick to them religiously. Discipline is paramount for success
  • Be always on the lookout – learn, apply and share the learning
  • Look, observe, listen and understand what is happening around you
  • Revisit your change factors, to be and to do items continually
  • Assess where you are, where you need to go and re-plan how you can reach there
  • Restructure your teams to suit the ever changing demands
  • Try new and different ways of doing things
  • Don’t be too rigid with products, processes and people

Hope you have some useful takeaways from this post. Try the tips I gave here and see if it works for you. Let me know your views and ideas. Till the next post, ciao!