S-72.3510 PRODUCT DEVELOPMENT OF TELECOMMUNICATION SYSTEMS

1. S-72.3510 PRODUCT DEVELOPMENT OF TELECOMMUNICATION SYSTEMS I Elements of Telecommunication Product Development Process II Tools for Generating and Cultivating Ideas

2. S-72.3510 Product Development of Telecommunication Systems • Objectives To understand modern, high-tech product development process by theory and practice • Lectures discuss dominant elements of product development process: Handouts www.comlab. hut.fi/studies/3510 (Some lecture handouts might not be published! -> Participate to lectures!) • Workshop(II term): deals with practical cases; takes full-day work of 4-5 days • Lecture Diary (optional): Guides available at course homepage. Return Diary within one week from the lecture to the mailbox (E-wing 2th floor). Max length 1 page of A4. • Grading based on Exam and Workshop reports (50/50). Lecture Diaries can increase your grade max by 0.5 (pass/failed).

3. S-72.3510 Product Development of Telecommunication Systems • Workshop tasks & report prepared in groups • Group tutoring by joint effort of Communications Lab. & industry partner(s) • Earlier Workshops arranged by Elisa, Telia, Ericsson, Satama Interactive, Sonera, Teleste etc. • Workshop topics: Prepaid Calling Cards, Wi-Fi Networks, Company Customer Relation Management (CRM) system design, Video Surveillance Services ... • Join to listen lectures and make your own notes & questions • Writing a Lecture Diary is a splendid tool for assembling your own handouts to systematic notes. (guides available at: http://www.comlab.hut.fi/studies/3510/writing_lecture_diary.htm).

4. Lectures 2006 • 16.3.06 Thursday 14-16, hall S3, Product Development Process/Ideation, Prof.Timo O. Korhonen, Communications Lab.   • 22.3.06 Wednesday 12-14, hall S3, Managing Value Networks, Prof. Arto Rajala, Helsinki School of Economics • 23.3.06 Thursday 14-16, hall S3, User Centric Product Development, Prof. Marko Nieminen, Software Business and Engineering Institute • 29.3.06 Wednesday 12-14, hall S3, Quality in High-tech Product Development , Dr Jaakko Kujala, Dep. of Industrial Eng. and Management

5. Lectures 2006, cont. • 30.3.06 Thursday 14-16, hall S3, Techno-economic Analysis, Research Scientist Timo Smura, Networking Laboratory • 5.4.06 Wednesday 12-14, hall S3, Project Planning and Management,  Research Scientist Miia Martinsuo, Dep. of Industrial Eng. and Management • 6.4.06 Thursday 14-16, hall S3, Entrepreneurship and the New Economy, Dr Peter Kelly, Dep. of Industrial Eng. and Management • 12.4.06 Wednesday 12-14, hall S3, Management of Immaterial Rights, Innovation Manager Panu Kuosmanen, Otaniemi Innovation Centre

6. Lectures 2006, cont. • 20.4.06 Thursday 14-16, hall S3, Leading Collaboration, Lic.Sc. Jari Ylitalo, Dep. of Industrial Eng. and Management • 26.4.06 Wednesday 12-14, hall S3, Business Support Activities in TKK, Dr. Tuomas Mennola, Otaniemi Innovation Centre, Anni Kauranen, TKK Venture Cup coordinator; D.r Mikko Pirinen, Business Dev. Adviser, TKK • 27.4.06 Thursday 14-16, hall S3, Advanced Industrial Usability Design, Prof. Pertti Aula, Univ. of Oulu • 3.5.06 Wednesday 12-14, hall S3, Measuring and Diagnosing of High-tech Product Development Processes, Prof. Pekka Berg, Dep. of Industrial Eng. and Management , TKK

7. Topics Today • Telecommunications product development • Role of vision, mission and strategy • Defining modern product development process • Project plan • Industrial product development • Telecommunications as business environment • Tools for idea cultivation and project management • How to produce ideas • How to select applicable ideas • How to sketch a project plan and recognize time-critical events

8. High-tech Product Development Financing Quality Production Process Products Usability Leadership Productdesign Strategic management Commercialization Marketing Project management Business Plan Innovations IPR IPR=Intellectual property rights

9. Vision, Mission and Strategy Vision Mission Strategy • Vision • A view of the future development • Mission (our way) • General way to distribute know-how, resources and results in • Own organization • Partner networks • Strategy (order of acts and focus points in our way) • Specific way to work to ensure success (for instance, might be tailored for a project) • Objectives: To acknowledge, achieve, maintain & update information flows and goals … market leader after five years Values/Attitudes … to provide our customers with state-of-the art telecommunication equipment, with integrated operation and maintenance services … success factors for the company are technology competence within telecommunications and ICT and flexible cooperation with worldwide partners

10. Challenges and Rewards in Product/Service Development • Recognizing, understanding andmanaging key challenges (customers, services, market, technology) is elementary in creating successfulproduct/service development • High-tech service/product development team is multi-disciplinary, motivated and cooperative Satisfaction of individual & social needs Timetables Economics Dynamics Details Team spirit Trade-offs Manifestation of creativity Team diversity

11. Industrial Product Development Process Theoretic functionality? Opportunity Firststudy& demo What about in practice? Concept works? Practical proto Sub-unit functionality? Sub-unit funcs? Proto for mass- production Functionality of the whole process? Massprod. reqs. Mass production

12. Realizing Units of Industrial Product Development Electronics designers Marketing Team Mechanical designers Design Purchasing engineer Marketing Industrial designers Manufacturing Team leader Legal Central factors of a project Patents Manufacturing engineer Financial Example: Teams to design an electro-mechanical product

13. Conventional Product Development Process MARKETING -Lead users -Competitive products Identify: -market opportunity -market segments -Product options -Pricing strategy -Marketing plan -Promotion materials -Early production with key customers DESIGN -Feasibility studies -Experimental prototypes -Tolerances -Components -Part geometry -Regulatory approvement -Performance testing -Subsystems -Interfaces -Identify new technologies -Consider product platform -Evaluation of early product outputs MANUFACTURING -Production constraints -Supply chain strategy -Estimate manufacturing costs -Suppliers for key components -Quality assurance processes -Fabrication and assembly process -Follow-up product system (O&M) PLANNING CONCEPT DEVELOPMENT SYSTEM -LEVEL DETAILED DESIGN TESTING RAMP-UP & LAUNCH Ramp-up: To increase a company's operational intensity to respond to increased demand O & M: Operation & Maintenance

14. Measuring Quality Subsystem & interface design Technical Design Follow-up of specification Return of Investment return of investment Quality/price Making measurement for quality becomes easier Customer satisfaction Early identification of triggers Target Pricing Aesthetical Design Tracking critical fault conditions CONCEPT DEVELOP SYSTEM -LEVEL DETAILED DESIGN RAMP-UP & LAUNCH TESTING Development phases • Good quality indicators: • commonly agreed: fair & simple • followed & updated • generally acknowledged • keep workers informed of all the relevant aspects of process goodness • keep customers willing to use products again and support company branding

15. Maturity of Project Control Vision Mission Actions Measurements MATURITY OF ORGANIZATION + action & integration repeatable & defined add-hoc MANAGEMENT AMBITION control & supervision synchronization & overview management & optimization Reference: T. Korhonen, A. Ainamo: Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academy Press, 2003

16. Binary Organization Developed Organization (High-tech product development) • Fixed organization • Clearly defined roles • Known customers • Known competitors • Known products • Known, traditional pricing • Fixed, slowly increasing market size • Hierachial or matrix organization • Slow information flow, especially in feedback • Quality measuredin cash flow • Globalization is a threat • Salary is a function of luck • Focus on • interactions • excessive feedback • rapid development speed • Overflow of potential ideas • Competitors are customers • Customers are extensively educated • Fashion (product/organization) changes fast and unpredictable way • Developed way to measure working of organizational body to keep it in good update shape • Globalization is a potential • Salary is a function of performance

17. High-tech Product Development • constant product improvements • high development velocity • knowledge sharing from suppliers, competitors, and customers • feedback on demand from customers

18. Customers Competitors Profitability High-tech product development process Hard Constraints • FUZZY FRONT-END • Vision driven Tension • Values • Targeting • REALIZATION • PROCESSES • Talents & Skills • Strategies & Mission Outputs CONCEPT DEVELOPMENT RAMP-UP & LAUNCH Quality Control Measurements DETAILED DESIGN Measurements Customer interfaces

19. Information Society -Force Fields - - Immediate, personalized, mobile access to services - Politics, legislation regulation Technology Rapidly evolving services & applications New lifestyles & fashion GLOBAL NETWORKING ECONOMY

20. Future & emerging technologies Research networking Factors in Telecommunications Business Framework New methods of working: @-business+mobile tech Multimediacontents & tools Systems & services Essential technologies& infrastructure

21. Telecom Market Players: Interoperable Hierarchy End-Users Individuals, companies Content and Service Providers Paramount pictures, MTV.. Service Operators/ Networking Solutions Elisa,TeliaSonera…. Physical Telecommunication Networks & Terminals Nokia, Motorola ...

22. Example: Telecommunications in Home/Office Access Device manufacturers DVB-S Mobile access: 2G: GSM 2.5G: GPRS, HSCSD, EDGE 3G : UMTS DVB-Terrestrial (DiGi-TV) -TV/MOVIES -GAMES -broadcasting INTERNET services - unicasting - multicasting - peer-to-peer ... DVB-C, Cable TV Copper (2 way) ADSL/ ISDN cable- modems Wi-Fi/ Bluetooth/ Ethernet PLC Network operators Service providers Content providers ENERGY

23. Telecommunication Service Environment is Complex and Evolving!

24. Example: Add2Phone’s* Value Network (a mobile marketing company) 2 1 3 1. Companies/products to be advertised/ sponsored 2. Renting advertisement space 3. Buying content (protected by IPRs) *Add2phone was the industrial partner in S-72.124 Workshop in spring 2000

25. Practical Value Networks are Complex For more discussion see http://www.sveiby.com/articles/Allee-ValueNets.htm

26. II Tools for Generating and Cultivating Ideas

27. *T. Korhonen, A. Ainamo:Handbook of Product and Service Development in Communication and Information Technology, Kluwer Academic Press, 2003 Personal Process of Creativity*

28. A Cycle in The Process of Creativity • Creativity cultivation requires different talents in different phases • In practice system contains extensive feedback • Best workgroups are multidisciplinary (Developed communication skills required!)

29. Some Creativity Tools • Critical Path Analysis • Force Field Analysis • Decision Tree concept testing, decision making • Mind Maps: Fish Bones • SWOT-method associative mapping • Lateral Thinking: Synetics • The Six Thinking Hats filter modifications • Random pictures/words/sentences • Reinforced pictures/words /sentences (doodles) idea generation

30. Customers Competitors Market Technology Future visions How to Select Cultivation Methods? • Some methods are primarily targeted for mapping the current status (eg SWOT), other for decision making (eg Force Field Analysis) and some are general purpose tools to assist project management (Critical Path Analysis). • Methods work well when they are used simultaneously;in-series or in-parallel, as for instance brainstorming+ SWOT • Successful product development requires that one should have sufficient information about • customer's requirements • competitors’ product launches • market • latest technology • Vision of state-of-the-artand future trends is very important!

31. Ideation and Creativity Cultivation Tools • Ideation • Brainstorming • Mind Mapping • SWOT • Filter modifications • Six Thinking Hats • Synetics • Concept formation & Decision making • Force Field Analysis • Critical Path Analysis

32. Brainstorming • Objectives: Bring about creative solutions (even for unidentified!) problems • Take solution candidates one after another until unusual solutions are generated • For a start take a word or words, from “a dictionary at hand” to feed the process and apply associations • Generate ideas without critics! Thus • many potential solution candidates are generated • whole problem dilemma may change! • For concluding the session • analyze results for instance by SWOT, FFA and/or Mind Mapping • Condensed and classified ideas can be used to support new sessions or other applications

33. Brainstorming - Leader and Group Tasks • Session leader • definition of the start-up point • gives limits to the problem • gives limits to discussions (These limits must be very broad) • minute amount of critics • encouraging and enthusiastic • follows (the fixed) session time table! • Takes care that ‘idea jamming’ is only temporary! • Session participants • have diverged orientations related to the problem at hand • their background is as different as possible • good communication skills • substance should be known preferably by everybody (at least by somebody!!!)

34. Individual vs. Group Brainstorming • Individual BS • many ideas • tendency to jam into some fixed trails • easy to find unresolved questions • Group BS • ideas develop themselves into more elaborated form • ideas develop more efficiently • there might be less ideas (group follows the group behavior laws!) • One may mix individual and group barnstorming: For instance each member might first BS of his own and then one may have a meeting based on each individual’s BS sessions

35. facts: figures, information needs and gaps creativity: alternatives, proposals, what is interesting, provocations and changes logical positive: why something works logical negative: judgment and caution meta-cognition: creativity process control Getting more fruitful Brainstorming • Methods of Six Thinking Hats (Edward de Bono) or Six Eyes* (Rodney King) can be used to get Brainstorming to work better • Assign a different hat for each group member / mix the hats! intuition: feelings and emotions

36. Understanding process outputs a different way • Themes can be seen from different perspectives by using “Synetics*”: *Gordon, W.J.J., Synetics: The development of creative capacity, 1961. Fig: Axon 2002, http://web.singnet.com.sg/~axon2000/index.htm

37. Synetics questions explained • Substitute/Simplify (What would you do in my place?) • Combine (Think about software being capable of evolving and • reproducing?) • Adapt (Think what would happen if you would have wings?) • Modify/Distort (What if cars would sometimes be used upsidedown?) • Put to other purposes (Think your mailbox as a kite!) • Eliminate (What would you end up by removing the batteries?) • Rearrange/Reverse/Scale (Reverse the order of blocks?)

39. Mind Mapping • Mind Mapping is a technique to organizing information in its natural associative way, that is multidimensional. • Procedure: • List the main topic, subtopics and facts. Search short expressions for them all. • Identify the main connections between themes • Set the main theme in the middle of the paper and arrange the sub-themes to surround the main theme • Recognize idea groups (for instance by colors) • Indicate interdependencies as the cause and consequence by arrows • Use symbols and figures and even sub-maps to give to total picture

40. Example of a Mind Map Mind Manager (www.mindman.com)

41. Mind Mapping Summarized • A Mind Map is an associative structure. Therefore its topology contains a lot of information. • Mind Map allows to identify the essential features and links of the problem at glance. • Mind Maps can be an extremely compact way to present information. • A problem of mind mapping is that the chart may up to be so messy that it can even hide the main themes. Therefore Mind Map can, and should be cultivated after it is formed by pruning less important branches • Mind Maps can be created by computer program (as MindManager® or eMindMaps®) or by using simple detachable notes on a blackboard.

42. Alternate Mind Mapping • Fishbone* diagram: Enables to focus onto the problem and perceive the causes and its relative importance • After drawing the diagram the next step is to analyze the magnitude of each of the identified causes *http://web.singnet.com.sg/~axon2000/index.htm

43. Strength Weakness Opportunity Threats SWOT analysis • SWOT is applicable for sorting unorganized knowledge bases and analyzing current status • Successful SWOT yields structured mapping of the problem at hand • For instance in product analysis • identify strength and weaknesses of the product • search through possibilities and threats (for instance for product launch) • Realization: List all the relevant properties and sort them into SWOT boxes! inside outside

44. A case of SWOT: WAP-based Knowledge Base Service* Strengths Expandable, flexible, easy to use, dynamic, easy to personalize, bypassing of telephone exchange, more effective graphics, utilization of location information Weaknesses Need for WAP terminal managing, search routines require Dedication Opportunities If first at the market may be a killer-kind app. Due to usage of immediatelocation info by GPS or GSM location technology Threats No popularity, one applies terminal specific catalogs, competitive techniques may hit markets *S-72.124 spring ‘99

45. Force Field Analysis • FFA is a method to analyze factors for and against an act • Objective: To create an unified description of the factors forming the problem. This is used to alter the process state to the wanted direction! • Benefits • Describes all the relevant forces • Allows to plan • contra strategies for negative forces • supporting strategies for positive forces • The FFA method: Identify, Sort and Grade the different forces and illustrate the problem by a diagram including the forces! • The first result of this method describes the current state • Alteration of forces can change the current state to the objective state!

46. Force Field Analysis: Example

47. In Conclusion... • We had an overview on Telecommunications Product/Service Development Process • We discussed the following ”mind- and process mapping” techniques: • Brainstorming • Mind Mapping • SWOT analysis • Six Thinking Hats • Synetics • Force Field Analysis • The best way to learn these methods is to use them!