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The System is the Product by Adam Richardson at SVPMA Monthly Event August 2007
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SVPMA The System is the Product 1© 2007 frog design. confidential & proprietary. August 3, 2007
The System is the ProductAdam Richardson / Director of Product Strategy
SVPMA
August 3, 2007
© 2007 frog design. confidential & proprietary.
SVPMA The System is the Product 2© 2007 frog design. confidential & proprietary. August 3, 2007
We are a strategic-creative consulting firm.
frog brings a unique combination of strategic and creative talent to helpcompanies envision, realize, and deliver actionable strategies for growth.
Our rigorous yet unorthodox approach yields breakthrough innovationand a sustainable competitive edge.
SVPMA The System is the Product 3© 2007 frog design. confidential & proprietary. August 3, 2007
325 people from 32 countries. 39 years global experience.
New York, NY USA Stuttgart, GermanyMilan, Italy
Shanghai, China
San Francisco, CA USAPalo Alto, CA USA (HQ)
San Jose, CA USAAustin, TXUSA
Seattle, WAUSA
SVPMA The System is the Product 4© 2007 frog design. confidential & proprietary. August 3, 2007
The System is the Product
SVPMA The System is the Product 5© 2007 frog design. confidential & proprietary. August 3, 2007
100 Years Ago: “You push the button, we do the rest”
SVPMA The System is the Product 6© 2007 frog design. confidential & proprietary. August 3, 2007
Systems are more common today
SVPMA The System is the Product 7© 2007 frog design. confidential & proprietary. August 3, 2007
But designing systems is di!cult
SVPMA The System is the Product 8© 2007 frog design. confidential & proprietary. August 3, 2007
Systems are abstract and di!cult to see
SVPMA The System is the Product 9© 2007 frog design. confidential & proprietary. August 3, 2007
Systems are often boring
Train schedule
SVPMA The System is the Product 10© 2007 frog design. confidential & proprietary. August 3, 2007
Systems cross over organizational boundaries
SVPMA The System is the Product 11© 2007 frog design. confidential & proprietary. August 3, 2007
The Apple iPod
Why it Stinks• High price• Limited features• Easy to scratch• Hard to carry• Can’t replace battery• Cumbersome menus
SVPMA The System is the Product 12© 2007 frog design. confidential & proprietary. August 3, 2007
Why the iPod Succeeded
A convergent system that has givenApple a 5+ year competitive edge
SVPMA The System is the Product 13© 2007 frog design. confidential & proprietary. August 3, 2007
Tecosystems
SVPMA The System is the Product 14© 2007 frog design. confidential & proprietary. August 3, 2007
Manage Tecosystems Across Experience Touchpoints
SVPMA The System is the Product 15© 2007 frog design. confidential & proprietary. August 3, 2007
Accessories
MINIRetail
Web
Lifestyle
SVPMA The System is the Product 16© 2007 frog design. confidential & proprietary. August 3, 2007
Maxtor OneTouch III
SVPMA The System is the Product 17© 2007 frog design. confidential & proprietary. August 3, 2007
Maxtor OneTouch III
AWARENESS PURCHASE
OUT OF BOXUSE
SVPMA The System is the Product 18© 2007 frog design. confidential & proprietary. August 3, 2007
Convergence
Convergence
SVPMA The System is the Product 19© 2007 frog design. confidential & proprietary. August 3, 2007
Turbochef Speedcook Oven
SVPMA The System is the Product 20© 2007 frog design. confidential & proprietary. August 3, 2007
Turbochef Speedcook Oven
SVPMA The System is the Product 21© 2007 frog design. confidential & proprietary. August 3, 2007
Turbochef Speedcook Oven
Analogous ProductsCustomer InsightsCultural Trends
SVPMA The System is the Product 22© 2007 frog design. confidential & proprietary. August 3, 2007
SVPMA The System is the Product 23© 2007 frog design. confidential & proprietary. August 3, 2007
Alltel Lessons
• Manage up and down• Prototypes as tools for buy-in• Intensive stakeholder
coordination
SVPMA The System is the Product 24© 2007 frog design. confidential & proprietary. August 3, 2007
Know Thy Organization
GOOGLE APPLE
HP GE
TOP-DOWNBOTTOM-UP
FAITH-BASED
PROOF-BASED
SVPMA The System is the Product 25© 2007 frog design. confidential & proprietary. August 3, 2007
Business and Technology Challenges
SVPMA The System is the Product 26© 2007 frog design. confidential & proprietary. August 3, 2007
The User Experience Gap
High
Low
EmergingCategory
MatureCategory
ExperiencePerformance
Crossover
Vertically integratedsystems better
Modular/open-standardssystems better
ExperiencePerformance
ExperienceExpectation
Profit Margin
SVPMA The System is the Product 27© 2007 frog design. confidential & proprietary. August 3, 2007
Strategic Questions
High
Low
ExperiencePerformance
ExperienceExpectation
EmergingCategory
MatureCategory
Performance/ExperienceCrossover
Profit Margin
How long and what will ittake to close the gap?
How long after acompetitor crosses thegap before profits drop
unacceptably?
How big isthe gap?
SVPMA The System is the Product 28© 2007 frog design. confidential & proprietary. August 3, 2007
What PMs can do to facilitate convergence
1. Map out the system elements2. Define proximity to experience performance crossover3. Embed systems thinking into the MRD and use it to influence PRD4. Get the whole system in one room5. Set the interfaces within the system as early as possible6. Continually communicate up, down and across to maintain alignment
SVPMA The System is the Product 29© 2007 frog design. confidential & proprietary. August 3, 2007
