S-72.3510 Product Development of Telecommunication Systems

Workshop 2008

These slides available at http://tll.tkk.fi/en/node/487

Services Market

Techno -economics

Technology

Today• Workshop program and methods• Vilant Systems Ltd:

– Company overview– Introduction to RFID – Problem frameworks for groups

• Division of group works and practicalities

Contacts: Ville Saarinen@vilant.comMika.Nupponen@tkk.fiTimo.Korhonen@tkk.fi

Services Market

Techno -economics

Technology

Workshop objectives

• To acquaint oneself to real-life business process

• Learn product development process practicalities

• Learn to work together• Learn presentation skills• Learn to work with references

• Workshop tasks & reports prepared in groups starting from problem framework

• Follows Innovation in a Week - method• Tutoring arranged by joint effort of

ComNet & Vilant Ltd. • Earlier Workshops arranged by Elisa, Telia,

Ericsson, Satama Interactive, Sonera, Teleste etc.• Earlier workshop topics: Prepaid Calling Cards, Wi-Fi

Networks, Company Customer Relation Management (CRM) system design, Video Surveillance Services ...

Workshop outline

Outline…

• Groups produce business case concepts– Service description– Business case analysis– Technical solutions

• Striving to fit everything to partner company strategy

Monday 21.4

Tuesday22.4

Wednesday23.4

Thursday24.4

Friday25.4

9-12@S1•ComNet: Workshopmethod•Vilant:Company overview &Problem frameworks•ComNet: Groups & Tools

Innovate the problem•brainstorming•mind-mapping•Long list ofsolutions

9-14 hrs@E208bVilant Ltd.checkpoint

Develop•idea•case

Preparingpresentation•product /Service Description•marketing plan (Annex II & III)

Lunch break Lunch break

12-13 hrsLunch break Lunch break

Develop•Detailed design•Business case details•Customership special requirements•Vilant Ltd. requirements

Develop•business case•techno-economics

12-17@S5Presentations&Industry partner feedback

13-17 hrsInnovate the problem •divide tasks•search main references

Innovate the problem •double teams•Prepare to checkpoint

Problem framework

• Early-phase product development problems are not necessarily well-defined – there is a problem framework that is a description of interconnected elements

• Development teams strive to find applicable solutions; examine and validate the most promising solution(s) - in detail as possible

• In workshop group formation objective is creativity boosting: groups should be multidisciplinary! Group participants need not to know each other beforehand

• Note: Don’t forget to map risks relating to your solution and tell why you selected the particular solutions

Methods• Modified Satama Interactive’s Innovation Space

= Innovation in a week!

• To cultivate your work apply Brainstorming and various other methods of ideation as Mindmapping, Fish bones etc. as explained later

Innovatethe

problem

Innovatethe

problemDevelop Develop Present

Wed ThuMon Tue

customercheck points

Fri

Decision

Innovation Space• Monday: First focus on problem: understanding the

problem framework - don't focus to a single solutions• Tuesday : Groups generate long list of solutions, Continue

innovating the problem - double teams • Select the most import solutions to focus on and prepare for

customer check point. Start preparing idea document & business case

• Wednesday : Present and discuss your case candidates in customer check points

• Thursday: Evaluate solutions and prepare presentations– applicable solutions - conclusions from check point?– risks and how to get quality to your process outputs

- focus on development/production & target product/service

– degree of innovativiness - market potential & long run business vision

• Friday: Group presentations & customer feedback discussions

Deliverables

CaseIdea

Concrete deliverables are necessary to evaluate the concept!

Agriraha-asiakas5.3.5 Katso

Agriraha-tilannettaAgriraha-

järjestelmä

Tilausjärjestelmä

Kanta-asiakas

5.3.2.1 Katso laskun tarkennus

5.3.3 Katso Agribonus-tilannetta

Agribonus- ja asiakashallinta järjestelmä

Hinnoittelusopi- musten hallinta

5.3.1. Katso tilauksia

5.3.2 Katso laskut ja käteisostot

<<extend>>

5.3.4.1 Maksa ennakkomaksu

5.3.6 Katso sopimuksia

Ennakkomaksu- järjestelmä

5.3.4. Katso ennakko-maksutilannetta

Verkkokaupan asiakas

0

2

4

6

8

10

12

14

16

18

20

1 2 3 4 5 6

Series1

Business CaseWhat, why, context How a solution is used in

practise - examples Business effects and

reasoning

Deliverables Group reporting: summarizes workshop results

idea document: context; who, where, why and when will use the innovation

case: cartoon or story; one example that explains the core idea - How solution is used in practice

business case: analyze business case: efficiency, production timetables, if this changes something, what happens in business: list assumptions and how and why the figures were obtained

Group submits two reports:

Company’s report: solutions, application guidelines, bases for solution, solution risk and quality estimate (follows ‘up-front homework’, next slide)

Innovation workflow: problem framework, identified key issues, usage of ideation methods, rejected ideas, (rejection) arguments, discussions

Up-front Homework: The First Phase

1. A preliminary market assessment: a quick scoping of the marketplace toassess market existence, probable market size, and expected product definition;this is largely detective work: desk research; assessing available public andcommercial databases, reports, articles, etc.; utilizing in-house information andpeople; contacting a few lead users.2. A preliminary technical assessment: a quick technical appraisal topropose a technical solution, map out a probable route, and assess technicalcosts, times, and risks; this work is a largely conceptual: technical literaturesearch; utilizing in-house technical expertise; brainstorming and creativeproblem-solving sessions; reviewing competitive product solutions; drawing ontechnical gurus outside the firm.3. A preliminary business assessment: a quick financial assessment (e.g.,payback period) based on very rough estimates of sales, costs, and investmentrequired; a cursory legal assessment; and a quick risk assessment.For larger and more complex projects, many firms build in a second and morederailed homework phase, namely a detailed investigation stage, prior todevelopment.

from: Overhauling the New Product Process, Robert G. Cooper,Industrial Marketing Management 25, 465-482 (1996), © ElsevierScience Inc., 1996, 655 Avenue of the Americas, New York, NY1O010, O019-8501/ 96/ $15.00:

Techno-economic Analysis

• Inputs – scenario analysis– geographical service areas

– customer segments to be served

– services to be provided

– technology to be used to provide the services

– market characteristics

• Bases: – Literature studies– customer interviews– technology

modeling/simulations

EnvironmentalRegulatory

ServiceTechnology

• Estimates…– OPEX & CAPEX– level of competition in the

market– Penetration rates of different

throughput classes– Price evolution of

• service tariffs • network

modules/components

Example: Scenario Attributesfor a telecommunication network development

Working in groups

• Divide tasks– To look for further references in

• Technology• Customership• Services• Market • Techno-economics (what is calculated and how)• To think which methods to use

• Take notes in meetings, photographs• List key concepts that can be used when searching

further references

Special Notes in Reporting

• Carefully document applied methods used to obtain your solutions

• Document intermediate steps in your path to your group’s solution(s) - this is required especially for Innovation Workflow - report

• Strive to verify quality and risks of your solution• Report especially

– Why final solutions were selected!– Report/analyze your solution as in-detail as you

can to verify your claims!

S-72.3510 Product Development of Telecommunication Systems

Annexes

Project Plan

• Executive Summary

• Basic Information Briefly

– Goal

– Background

– Market Situation

• Goals

– Project Target

– Milestones

– Description of features

– Strategy

• Plans

– Timetable

– Resource plan and resource profile

– Project Budget

– Plans for Process• Sales Process• Delivery Process• Customer Care

• Project Tasks

– Product Planning and Specification

– Testing

– Service Implementation and Provisioning

– Product Launch

– Internal Support Function

Annex I

Project Plan (cont.)

• Project Tasks

– Product Planning and Specification

– Testing

– Service Implementation and Provisioning

– Product Launch

– Internal Support Functions

– Phase 2

• Project Organization

– Organization plan

– Project Management

– Roles, Responsibilities and Power

– Principles of Reporting and Communication

• Quality

– Quality Goal and Strategies

– Evaluation

– Processes in project

• Risks

• Project Completion

• References

Annex I

Product/Service Description• General• Service overview• Service components and features

– Service platform(s) (features, GUI)– Standard/optional features– Access (backbone, access, subscriber line)– Capacity– Addressing– Availability: definition, limitations

• Technical solution– Hardware/software – Placing: customer premises/network equipment…

• Pricing, costs and marketing information (more in marketing plan)

– Customer segments– Sale channels– Billing– Advertisement plan– Installation/connection costs– Outside Equipment Manufacturers (OEM)?

• Product support – O & M• Additional technical information

– Where does the competitive edge comes from?– Market placement: Existence of similar services?

• General• Service overview• Service components and features

– Service platform(s) (features, GUI)– Standard/optional features– Access (backbone, access, subscriber line)– Capacity– Addressing– Availability: definition, limitations

• Technical solution– Hardware/software – Placing: customer premises/network equipment…

• Pricing, costs and marketing information (more in marketing plan)

– Customer segments– Sale channels– Billing– Advertisement plan– Installation/connection costs– Outside Equipment Manufacturers (OEM)?

• Product support – O & M• Additional technical information

– Where does the competitive edge comes from?– Market placement: Existence of similar services?

Annex II

Marketing Plan• OVERVIEW – short description of

– Business goals– Market description (players/size/development)

• SERVICE– Describing name (note the difference to existing services/products)– Service content– Description of Competitive Edge– Pricing formation/strategy (time-line/customer segments)

• SERVICE/PRODUCT HIGH-LIGHTS– Core features creating cornerstones of marketing communication

• MARKET SITUATION – Competitors and their services (make a map: price vrs quality)– Marketing strategy (Project launching, target segments, timing)

• MARKETING COMMUNICATION– Flavour: Attacking/informative/defending/supporting – Goals: Image/credibility/user friendliness/ technical

advancement/functionality• TARGET SEGMENTS

– Service/product placement in current/forthcoming market– Customers (consumer/business/geographical availability)

• SALE CHANNELS• CUSTOMER SERVICES• MARKETING BUDGET Apply SWOT!

Annex III