Product development in a startup

1. Inputs Outputs Processes Product development in a startup Open LoopSystem: Closed Loop System: Inputs Outputs Processes Feedback

2. Some general ideas on product development in a startup • Concept test • First customers – reference customers: • Choose wisely • Treat them well • Beta Test • Get feedback • Get agreement to talk to press, luminaries • Partnerships for offering, credibility

3. What else should we keep in mind?(from Smith and Reinertsen) • Don’t try to do everything all at once – break up the project if need be • Complexity adds interactions, which increase time and risk • Pick an appropriate pace – do you really need to be fast out of the gate? • Freeze the concept early • Have a plan • Make mistakes and learn from them

4. More Smith and Reinertsen • Architecture • How modularized? Consider function, cost performance • Interfaces: robust, stable • Concentrate risk in a few modules • Develop technology off the critical path • Overlapping Activities w/partial information • Avoid project overload

5. More S & R • Small batch size • Test early and often – do it, test it, fix it – usually; some projects have high test costs, though • Test higher risk elements early • Pull system integration earlier to manage technical risk • Customer input

6. Reinertsen -- Patterns • Sequential vs. concurrent process • Sequential is good for cost or risk minimization • Concurrent is good for cycle time, product cost, or product performance • Information profile • Early information is relatively costly, but reduces costly late changes

7. Patterns continued • Decentralized control vs. centralized control – becomes an issue when multiple development programs are underway • Location of large batch queues • Not a big issue until you have multiple programs • A few big “go / no go” points can efficiently manage risk in a startup • E.g. pre-first customer; pre-translation to market

8. Key Questions that Surface • How do you maintain flexibility with minimal $$?