1. Copyright © 2004 Lean 360° LLC Developing the Software Product Concept Ammon Cookson VP Product Development ProWorks Corporation Principal, Lean360° ammonc@lean360.com 503.317.6518

2. Copyright © 2004 Lean360° LLC 2 Lean  Pioneered by Toyota over the last 50 years.  Enabled sustained competitive advantage.  #2 Car maker  #1 in Profitability  Adapted for Software  Lockheed Martin  Timberline Software  ProWorks

3. Copyright © 2004 Lean360° LLC 3 Intro to Lean – 4 Principles 1.The customer defines value 2.Make value flow – “along streams” 3.Data driven decisions 4.Continuous improvement

4. Copyright © 2004 Lean360° LLC 4 Lean Enterprise Uses time and the relentless pursuit of waste elimination as competitive leverage Any activity which absorbs resources but does not create value Does it improve the fit, form, or function of the product or service? Is the customer willing to pay for it? Principle #1: The customer defines value

5. Copyright © 2004 Lean360° LLC 5 Value Delivery System

6. Copyright © 2004 Lean360° LLC 6 360°  What are the areas/functions required to delivery software product to customers and make a profit?  Value Delivery System Elements  Strategy/Owner  Marketing  Sales  Engineering  QA  Publications  Client Support Services  Operations

7. Copyright © 2004 Lean360° LLC 7 What makes good product concepts Great Products?

8. Copyright © 2004 Lean360° LLC 8 What makes good product concepts Great Products?  Identify the right customer personas/stakeholders  Translate spoken and unspoken customer requirements into the right mix of must-be and attractive features.  Create a product concept trajectory  Release 1.0  Release 2.0

9. Copyright © 2004 Lean360° LLC 9 Concept Phase  Define Process  Identify Personas/Stakeholders  Interview Personas  Feature Discovery  KANO analysis  Validate Process  Working models  Customer testing Define Validate SPC Strategy

10. Copyright © 2004 Lean360° LLC 10 Define: Personas  Consider the personas from a 360° view.  Identify the personas and make them real.  Consider micro-market segmentations.

11. Copyright © 2004 Lean360° LLC 11 Define: Interviews  Create a Topic Guide  Interview personas  Lots of interviews  Everyone on the team does interviews.

12. Copyright © 2004 Lean360° LLC 12 Define: Feature Discovery  Team reviews the interviews.  Generates a list of possible features.

13. Copyright © 2004 Lean360° LLC 13 KANO  Connects the voice of the customer to facts and data.  Makes facts and data the center of the conversation around requirements and features across all stakeholders.  Enables scope/feature trade off decisions to be based on facts.  Helps balance scope between must-be and attractive.

14. Copyright © 2004 Lean360° LLC 14 Spoken and Unspoken Customer Requirements

15. Copyright © 2004 Lean360° LLC 15 Kano Steps 1.Create survey with present/absent questions for each potential feature. 2.Evaluate each respondent’s answers for each feature using the KANO Priority Matrix.  (M) Must be, (A) Attractive, (O) One-dimensional,  (I) Indifferent, (R) Reversing, (Q) Questionable 3.Total feature preference scores for all features– for all users.

16. Copyright © 2004 Lean360° LLC 16  For each feature, ask how would you feel if it were PRESENT and ABSENT? How would you feel if you DID NOT have a central place (such as a repository) to store all estimates for cross estimate reporting and analysis? ______ I would be delighted to find it that way. ______ I expect it to be that way. ______ I am neutral. ___X__ I don't like it that way but I can live with it. ______ It must not be that way. ______ None of the above How would you feel if you could have a central place (such as a repository) to store all estimates for cross estimate reporting and analysis? __X__ I would be delighted to find it that way. ______ I expect it to be that way. ______ I am neutral. ______ I don't like it that way but I can live with it. ______ It must not be that way. ______ None of the above How do you feel if the feature is PRESENT? How do you feel if the feature is ABSENT? Create feature question pairs…

17. Copyright © 2004 Lean360° LLC 17 Determine Feature Preference KANO Survey: Judith’s responses KANO Survey: Judith’s responses KANO Survey: Susan’s responses KANO Survey: Susan’s responses KANO Survey: Sally’s responses KANO Survey: Sally’s responses

18. Copyright © 2004 Lean360° LLC 18 Feature Priority Matrix – Survey Totals M: Must Be = 3pts A: Attractive = 5pts O: One-dimensional = 1pts I: Indifferent = 0 pts R: Reversing = -5pts Q: Questionable result = 0pts

19. Copyright © 2004 Lean360° LLC 19 KANO Survey Totals Example

20. Copyright © 2004 Lean360° LLC 20 KANO Survey Totals Example Feature DescriptionScore Attractive Must-do One- Dimensn. Reversing Be able to filter the repository and get estimates based on specific user defined criteria.5440154-5 Have a central repository for doing cross estimate reporting and analysis.524566-5 Be able to apply different productivity factors for different locations.484562-5 Be able to store in the central repository estimated and actual costs.464038-5 Be able to apply factors and percentages to adjust for different locations.373534-5 Be able to generate a new estimate that's based on the averages of the estimates filtered.322566-5 Create the estimate in one currency than see the estimate in a different currency.25 32-5 Have a table of currency conversion rates.1925 4-10