Project Management- Chapter 3

Build Great Products: Lessons from Agile,

Lean Start-Up, and Stage-Gate

Presented By:

KALPESH MORE VIDHEN PATEL

DATE: 11.11.2020 Prof. Dr. Georg Fischer, Project Management Group II 1
Index

1. Introduction
2. IDEO Framework
3. Product Development Process
4. Incremental Delivery
5. Lean Startup Innovation Movement
6. The Agile Approach to Software Development
7. The Stage-Gate System for New Product development
8. Summary
 1. Introduction

PRODUCT DEVELOPMENT LIFE CYCLE

 Hitting the value target
• What should be built
• Build it correctly
 Also known as “Product Development Process”

PROJECT MANAGEMENT VS PRODUCT DEVELOPMENT PROCESS

 Not the same and complementary to each other
 Project Management: same in every industry
 Product Development processes: Unique to every industry

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5 3
 2. IDEO Framework

WHAT IS A SUCCESSFUL PROJECT?

 Budget
 Schedule
 Deliver

IDEO

 Innovation Design Engineering Organization

 Design and consulting firm
 IDEO Framework - Easy to understand and apply

Source: Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
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https://spin.atomicobject.com/2015/01/06/human-centered-software-creating-value-balancing-feasibility-viability-
 2. IDEO Framework

FEASABILITY • The solution is technically feasible.

• There is a market for this solution.

DESIRABILITY People want it.

• The solution can be delivered within

VIABILITY a sustainable busi­ness model.

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5 4
 3. Product Development Process

 Project Management – Techniques and processes

 Product Development Process – Guarantee right and
correct

 Micro and macro level

 Serves as Repository

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5 5
https://www.marketing91.com/product-development-process/
 3.1 Product Development Process - Uniqueness

Pharmaceutical Development Process Capital Project Development Process

1. Research & Preclinical 1. Scoping

2. Phase I Clinical Trials 2. Feasibility

3. Phase II Clinical Trials 3. Programming

4. Phase III Clinical Trials 4. Schematic Design

5. New Drug Application 5. Design Development

6. Launch & Production 6. Construction Documents

7. Construction
8. Closeout

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 3.2 Product Development Process - Levarage

Reduces Risk and Increases Repeatability

 A well defined development process
 A standard work guidelines
 Work breakdown structure (WBS)
Addresses Feasibility, Viability, and Desirability

 Drug development process focus on feasibility.

• greatest unknown - chemical compounds
 New product development: invention and discovery
 Capital project development process focus on desirability balancing with
viability.
Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 3.3 Product Development Process- Best Practices For Capturing Requirements

Capturing requirements is a key element

 Successful projects meet stakeholders expectations

(desirability and viability)
• Unclear envision- Unuseful outcomes
 Difficulties overcome by standardized tasks &
quality reviews
 Capturing user’s requirement- requirement
engineering

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 4. Incremental Delivery - Less Expensive Than Requirements Failure

Incremental Delivery

 Also known as “Iterative development ”

DELIVERY OF
SMALL PIECE CUSTOMER
ADDITIONAL
OF A USING THE FEEDBACK PRODUCTION REPEAT
PICES OF
PRODUCT PRODUCT
PRODUCT

 Works best for Internet based products

 Less expensive to just let users experiment.
 This approach has become known as agile software development

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 5. The Lean Startup Innovation Movement

Lean
Lean + Startup =
Startup
Emphasize on reducing A Startup is a human
waste and focusing on institution designed to
activities that create create a new product or
value service under the
conditions of extreme
uncertainty.
WHY?

 In Startups, developing complicated products and marketing plans while facing extreme uncertainty
is a very high risk and has the potential to waste lot of time, money and effort.

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 5.1 Minimum viable products(MVPs)

 Found in agile software development

 MVP represents a feature or set of features that we are trying out on real customers to capture the
most authentic feedback possible.

 Example- Food on table

 A company with national audience isn’t built on a single MVP experiment, but a chain of experiments

5.2 Startup Metrics

 Each variable is important
 Actionable metrics
 Example- Online Gaming product

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 5.3 PIVOTS

• Making a fundamental change in Business strategy

• Change in strategy

PIVOT Learning from the past LEAP Abandon the old and start new

Startup PRODUCT/
MVP’s Pivot MARKET FIT
Metrics

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 6. The Agile Approach to Software Development

Stepwise approach to discovery

Delivering Value Quickly  Extra costs

 Release size
 Enough

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 6.1 The Waterfall Approach

PROS CONS
Clear goals and Time consuming
directions
Progress can be Customer
easily measured Dissatisfaction
Saves money High risk

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 6.2 The Agile Approach

Stages of work

Analysis

Design

Construction

Test
• Build one feature at a time
• Once the stages of work are done, then move on to next feature
• Greatly reduces risk Development

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 6.3 Agile Construction and Quality

 Design pattern focus on code quality and extensibility

 Refactoring
 Test driven Development

Misconception about Agility

 Agile teams do not document anything.

 With agile, you can’t predict when software will be done.
 Developers don’t need to do any design; they just jump in and start coding.
 Agile and scrum are the same thing.

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 7. The Stage-Gate System for New-Product Development

 5-stage 5-gate process

 Stages are cross functional
 Stage-Gate manages risk
 Each stage has a focused purpose
 Gates serve as quality-control
check points

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 7.1 Getting the right system for your Business

Source:Verzuh, Eric. The Fast Forw ard MBA in Project Management. Hoboken: John Wiley & Sons, Incorporated, 201 5
 8. Summary

 Successful projects deliver to a goal that balances a timely delivery of a useful product within a budget that is
affordable. The process for discerning the right product to build and then building it correctly is known as a product
development process or development life cycle.

When a firm establishes a consistent development process, they experience several benefits:

 Quality increases and costs decrease, because lessons learned from the past are integrated into their
development activities.
 Estimating becomes more accurate, as actual performance costs from past projects is easier to correlate to future
projects.
 Product development process is not project management. Instead, these are separate and complemen­tary
processes.

Agile, Lean Startup and Stage-Gate all contribute different insights to the challenges of creating a valuable product.
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