Market-driven software engineering

Basic concepts

Different drives

Technology driven Contract driven (bespoke development) Market driven

Originator: Joachim Karlsson

Product management – where are they?

Marketing and sales Research and development Own department under CEO

Originator: Joachim Karlsson

IndustryWeeks 2002 Value-Chain Survey- focus

Meet customer

needs69%

Lowest product

cost13%

Most innovative

features11%

First on market

5%

Other

2%

Originator: Joachim Karlsson

IndustryWeeks 2002 Value-Chain Survey- problem root causes

Lack of

resources20%

Weak business

strategy14%

Bad execution

14%

Other

12%

Low support

from management

6%

Low

understanding of customer

needs34%

IndustryWeeks 2002 Value-Chain Survey- most impact on TTM

Formal product development

process22%

Focus on product platforms

8%Other 9%

Collaboration with customers and

partners32%

Reallocation of resources

between projects29%

Originator: Joachim Karlsson

Often 19 %

Never 45 %

Sometimes or always 45 %

Doing too much of some things…

How often features areused in practice. Source: Butler Group.

Originator: Joachim Karlsson

Originator: Joachim Karlsson

Market segmentation

Segment: a subgroup of consumers sharing the same needs Consumers are organisations or people Variables for segmentation:

Geographic Demographic Psychographic Behavioural

Statistical clustering techniques: distance measurement and linkage rules (http://www.statsoft.com/textbook/stathome.html)

Related topics: Targeting Positioning Niche market

Segmentation

Volvo Segments per country and family type

Cell phones From adoption models to price and age

ABB company Chose two customers to focus on The rest had to adapt

Originator: Joachim Karlsson

Segmentation: Harley-Davidson

Dream Riders 40 % Zen Riders 20 % Tour Gliders 14 % Hard Core 10 % Hog Heaven 9 % Live to Ride 7 %

Originator: Joachim Karlsson

Portfolio analysis

A collection of business and products that makes up the company

Optimise company strengths and opportunities Outcome: investment and growth plan Sample method The Boston Consulting Group Box:

Competitor analysis

Analyse strengths and weaknesses of competitors Use information to define opportunities and threats Sample method: Competitor array

Key Industry Success Factors

Weighting

Competitor #1 rating

Competitor #1 weighted

Competitor #2 rating

Competitor #2 weighted

1 - Extensive distribution .4 6 2.4 3 1.2

2 - Customer focus .3 4 1.2 5 1.5

3 - Economies of scale .2 3 .6 3 .6

4 - Product innovation .1 7 .7 4 .4

Totals 1.0 20 4.9 18 3.7

Competitors?