Global Product Lifecycle

Iterative Funding

@LeanPLC@craigstrong

Budgeting & Forecasting

Uncertainty—in the economy, society, politics—has become so great as to render futile, if

not counterproductive, the kind

of planning most companies still practice: forecasting

based on probabilities

“

”

Big Ideas & Big Bets

X X

Self Perpetuating Risk

BigPlans

BigBudgets

BigSystems

HighRisk

Command & Control Behaviours

Cost Of Change is High

ConstrainsInnovation

Increased Management Overhead

Traditional Governance Reduces the Capability to Innovate

New Ideas

Products

Long time to marketBottleneck of ideas

Strategic force field which limits ideas internally

The World Has Changed

Jeremy Hope, 2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Edition. Harvard Business Review Press.

Investment StrategiesHigh Probability

Low Probability

Low Impact

Large Organisations

High Impact

Start Ups

Larry Downes is co-author, with Paul Nunes, of Big Bang Disruption: Strategy in the Age of Devastating Innovation

Traditional Models Are ChangingBig Bang Market Adoption

Roger’s Market Segments

Projects vs Products

Global Product Lifecycle

Key Questions

Can you identify a core user problem in a target market?

Are there real customers who get value from your concept?Is there a viable business model for this product?

Can you demonstrate Product/Market Fit or validated business model?

Expanding market reach, improving product performance and outcomes?

Continuing to provide value, retain customers, deliver on outcomes?

What residual value can be gleaned from the business?

Idea Explore Validate Grow Sustain Retire

A Non-Linear Process

Learn Build

Measure

Reducing Risk

Funding & Evidence

Risk

Time

Idea Explore Validate Grow

PLC Governance Criteria

● Accessibility● Security● Quality● Efficacy

● Product Management● Operations● Safeguarding● Marketing & Brand

● Sales● Legal● Customer Experience● Many More +

QuarterlyHypotheses

Product Metrics

£?Strategic Growth

Hypotheses

Political

Economic

Social

Technological

Legal

Environmental

Before After

Iterative Funding

http://blog.mercdev.com/mvp-when-less-is-more/

Not like this…

Like this…?

Product Lifecycle Principles More Ideas, More Bets, More Tests

New Ideas

Not all the ideas survive but all the learnings are recorded

All the ideas are quickly captured and tested

One to three months turnaround

Walls are pervious allowing ideas into and out of the company

Open Innovation

5 Key Take Aways

● Agility is an organisational shift● Bet small, don’t bet big upfront● Certainty is a fallacy● Diversity is key to innovation● Environment is shifting rapidly

Thank You

Feedback & Questions

@leanplc@craigstrong