new product & service development ag winning isn't everything…its the only thing -vince...
TRANSCRIPT
New Product & Service Development
AG
“Winning isn't everything…it’s the only thing”-Vince Lombardi
Introducing BarterQuest
• BarterQuest is a New York startup that was founded in 2006 as a global cashless e-market for members to trade products, services and real estate.
• Although membership is increasing at a rapid rate, many companies are now emulating them and their service is becoming commoditized.
• The company understands that new innovative capabilities that are true to their vision and completely unique will be the differentiator between them and their competitors.
Phase-Gate Process
• Cross-functional teams develop ideas into successful products in a logical cost & time efficient manner.– Little money is spent until the ideas have been truly vetted
• Risk is mitigated by combining logically phased due diligence, strict gate criteria, and honest gate keepers
Current Idea Selection Process
• The idea is either chosen via:– Senior Management
Executive Order– Brainstorming Session– Vendor / Client
demand
Ideation: Creating The BarterQuest Idea Bank
• Build a formal process & structure to capture, action, and store ideas– Entry:
• BarterQuest will place an idea / suggestion box on the footer of all its web pages. This link will open the idea entry screen
• Periodic emails will be blasted out to customers with this link to an idea entry screen
• All employees will be tasked with entering 5 ideas per week• Vendors will be asked to participate (hopefully new efficiencies will be found)• Competitive intelligence will be up to date to ensure we are reviewing our
competitors capabilities– Process:
• New ideas will be reviewed and scored on a biweekly basis. All ideas will have a status of Good / Dead / Hold / Clarification
• The Idea Bank owner will provide feedback to the submitters• The “Good” ideas will be promoted to the Expansion & Surface Evaluation• The “Dead” ideas will be killed• The “Hold” ideas will be subject to periodic review• The “Clarification” ideas will be returned to the submitter and asked for more
in depth clarification
Desired Idea Selection Process
• The idea funnel is now widened and Ideas are coming from many different sources both internal & external
Ideation• Objectives:
• Identify unmet market and customer needs
• Don’t be afraid of the really big disruptive ideas; Embrace them
• The ideas should be differentiators• Live in the Future
• Activities• Meet or talk with the top 20% of our
customers that make up 80% of our business
• ***Build and update a list of customers to serve on a Customer Advisory Board (CAB)***
• Meet with vendors to discuss their roadmaps
• Research market trends
Ideation Screen• Criteria
– Do they match with our e-market vision?– Is the idea a strategic fit for our niche?
• e.g.: BarterQuest does not want to compete with Ebay or Craigslist
– What is the value to the company, potential for reward?
– Likelihood of technical & marketable feasibility (Roughly)
• Output– The idea pool should be weeded down
from 100 to 7– Go / Kill / Hold / Recycle
• Gatekeepers:– Product Management
Ideation Screen Continued• Example ideas that may pass
– Private Labeling the platform and marketing it to B2B bartering exchanges– Creating an API to integrate with other Bartering e-market portals. This will be
a symbiotic relationship with our competitors to extend our reach and offering.
– Setup a project alliance with PayPal to create a currency for uneven trades• E.g. I want notebook computer but only have a few DVDs in exchange
• Example ideas that would probably fail– Cash / Credit Card auctions– Providing Bank services for transactions– Selling digital identities as an additional security mechanism and a revenue
generator
Expansion & Surface Evaluation
• Objectives:– Gentle Screen for Market
opportunity and ability
• Activities:– Preliminary Market assessment– Preliminary Technical assessment– Preliminary Business & Financial
Assessment– Recommendation for Stage 2 (Go
/ Kill)
Surface Evaluation Screen
• Criteria:– BarterQuest is a startup that is still in
the red; hence, a lot of weight will be put on the market and business / financial assessment.
– The ROI must be exponential – Must be a strategic match– Can be completed in-house
• Output:– Go / Kill / Hold / Recycle– The idea pool is now brought down to
the final three
• Gatekeepers: Market Manager
Detailed Evaluation: Building the Business Case
• Objectives:– Define the opportunity, business model, and
explain how business success will be measured
• Activities:– User Needs and wants study: Customers
have completed a “Concept” test questionnaire
– Competitive Analysis– Market analysis– Technology department provides a detailed
technical assessment– Concept testing with operations & providers– Financial / Business Analysis (supporting
numbers cost, projections, etc)– Placing something in front of the
customer for feedback, whether its screenshots, mock drawings or a limited prototype
Detailed Evaluation Screen: Building the Business Case
• Criteria:• Project Financial , Risk, and Business
Assessments pass• Marketing, Operations, Technology and
Test plans pass• Customer approval• Value / Benefit to the customer; meets
unarticulated needs• Not just delights the customer but
answers their hot button issue
• Output• Completed “Concept” test
questionnaire validates assumptions• Plan of Action; high level project plan
that answers the “how” & “by whom” questions
• Detailed Evaluation Screen: Final check before heavy spending
• Go / Kill / Hold / Recycle
• Gatekeepers: President, CTO, Operations, and Marketing
Cross-Functional Development• Objectives
– Physical Development will commence across all work-streams (Sub-NPSD funnels)
• Activities– Master project plan is created– Business Case Plans are being translated into
deliverables– Prototype creation and review with the
“CAB” customers often – When Questions arise there will be constant
customer contact– Parallel Actions: Sub NPSD Phase Gate
Processes (Funnels) commence– Sales & Marketing will commence their full
blown marketing and launch plan– Objectives, Strategy (including Go-To-Market),
Tactics, Distribution, etc– IT & Engineering– Operations, Support, and Logistics will
develop their processes– Intellectual Property: BarterQuest currently
owns several patents– New Patents may need to be filed
– Commence development Alpha Test (Pre-Test Test)
Cross-Functional Development Gate• Criteria
– Milestones are being hit on time.– Project is operating within budget– Market, Business, Technical, and
Operation requirements have been addressed
• Output– Prototype created– Business Case Plans translated into deliverables– Post Development Review & Quality Assurance– Budget Review– Signoffs form the other NPSD Sub Funnels– Go / Kill / Hold / Recycle
• Gatekeepers: Finance, Marketing, Operations, Product Management, & Technology
***Project definition or market requirement may change, if so the idea must start over and be re-evaluated***
Testing and Validation• Objectives:
– Validation of the new product, capability, or service
• Activities:– End-to-end Internal Technology and
Business UAT testing• Including stress & connectivity test with
vendors systems when applicable • Setting up Beta, and Pilots with “CAB”
customers– Letting customers test drive the
application– Operations will test their processes
and workflows– Fix bugs in the product, optimize
pricing and refine operation process– Defects are tracked differently than
enhancement request– Send enhancement request to the
idea bank– Marketing will need to update their
collateral with screenshots, slip sheets, etc.
– Soft Launch a Test Market for CAB and “Opt in” customers
Testing and Validation• Criteria:
– The product or full working Prototype is now complete
– Product quality and workflows have been evaluated across all work streams e.g. Technology, Marketing, Operations, Sales, etc
– All “Critical” & “High” bugs have been fixed
– Product completeness has been verified– Back-out / Rollback plan has been tested
• Output:– Empower Marketing & Sales with a
working Demo for prospective customers, road & trade shows
– Go / Kill / Hold / Recycle
• Gatekeepers:– Marketing, Operations, & Product
Management
Deployment
• Activities:– Sales, Operations, Logistics, and
Support (Help Desk) are in the Readiness / Deployment State
– Marketing executing their “Go-To-Market” strategy
• PR, Coordinated product reviews, customer quotes, etc
• All online help and other legacy documents are updated to reflect the new capabilities
– Product Management will provide the final Go/No recommendation
• Objective:– Mobilize the work-streams and
ensure all units are ready for the launch
Deployment
• Output:– Marketing, Sales, Technology,
Operations, Logistics, and Support (Help Desk) have signed off on the launch
– Marketing is executing their “Go-To-Market” strategy
– Launch Date & Backup Launch Date have been planned
– Final refinements are tweaked for the Launch commencement
– Go / Kill / Hold / Recycle
• Gatekeepers:– Marketing, Operations, Product,
Technology, & Senior Management
• Criteria:– All work-streams are in the
readiness state– Market conditions have not
changed • If the market has changed its still
cheaper to call this off before the launch
Launch Phase• Activities:
– Update the home page with a positive awareness note on the upcoming capabilities
• Posted 2 weeks prior to cutover– Marketing continues executing the final
stages of their “Go-to-Market” strategy– Launch occurs on the previously agreed
upon date• The site closes for a 3 hour maintenance
window• Development promotes the code• Internal business tester check out the
code• Go/No-go decision is made• Promoted code is now the new
production• Operations and support are on a
heightened sense of alert for 72 hours• The site comes back online
• Objective:– Releasing the new product,
capability, or service on the web site
Post Launch Review
• Objectives:– Assess the quality and effectiveness of the deliverables and the process
• Activities:– Conduct a performance review
• Usage• Updated project costs• Revenue and Projections
– Capability Evaluation– Strengths– Weaknesses– Lessons learned
Post Launch Review Gate
• Criteria:– The product is achieving the desired goals: Sales & Usage
• Output:– Performance review– Continue / Kill decision
• Gatekeepers:– Product Management & Senior Management
Thank You