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Product Development, Business & Poker All Have One Thing In Common ...

Jun 28, 2018 10:55:46 AM / by Travis Jacobs

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Developing a new product is a gamble ... most new products fail ... the exact number is up for debate. There are rumors that Clayton Christensen from the Harvard Business School, estimate that 80 percent of new products fail, and other rumors claim that he never said it.

The exact number is irrelevant, it's a significant amount, if not the majority ... even 50 percent is entirely too high. All the blood, sweat, tears, time and money that go into a project, just to see it fail, is heart breaking, trust me ... I've been there ... you don't want to know how that feels.

There isn't nothing more wasteful than spending $100,000 to develop a product that needed $200,000 to achieve the objectives.

There is an old saying which contains a lot of truth ...

If you want to make $1 million dollars developing your own product ... start with $2 million ... There is a lot of truth in this statement, and a little bit of humor.

Trying to develop a product on the cheap is the longest and most expensive route to take.

Of course you don't believe me ... you have a budget and a timetable ... which may be completely ... well ...

 

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Inc Magazine, When Going Cheap Is Actually More Expensive

 

I hear constantly "Just get it done right now, we'll get it right later" Only later never comes and you have a very expensive mess on you hands, a product that doesn't work, and unhappy customers.

Up to 80 percent of the cost of a design is determined by decisions made early in process. So how can we reduce cost, increase quality and get to market faster?

By utilizing simulation and best practices in design we can cut time and costs, as well as increasing quality and innovation. Sound to good to be true?

The old design imperative is outdated and obsolete, the new design imperative is using simulation up front and throughout the entire product life cycle.

The old design imperative is a serial step by step process

 

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This process is old, outdated and obsolete, more importantly it takes too long and costs too much. Once you get to the end, all of the costs are already defined and locked in.

 

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The new design imperative is to simulate as the first step, this process is not a serial step by step process but rather a spinning flywheel that goes round and round. This is the key to reducing costs, improving quality and innovation all at the same time.

In the words of Jim Collins, this new pervasive simulation design philosophy is the "Genius Of The And" not "Tyranny Of The Or" We can have high quality, and innovation and lower costs. The traditional design process is we can have high quality or low cost but not both

 

Do you have a design challenge you can't solve?

 

Let's Talk

 

Topics: Product Development, Product Design, Project Management, Leadership, Engineering, Simulation, Management, Communication, SmallBusiness, Design, StartUps

Travis Jacobs

Written by Travis Jacobs

Travis is the president of JA Simulations, a product design & development firm in Denver Colorado. We help clients solve problems & get to market faster with innovative & high quality products

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