A talk given at the Tsinghua International Design Management Symposium in Schenzhen Dec 2013

1. Design-Driven
Product Line and
Portfolio Management
Matt Mayfield
IIT Institute of Design, Chicago
Assistant Dean, Academics

2. Matt Mayfield
Academic
2004-present
IIT Institute of Design, Chicago
- Graduate and PhD programs in advanced Design
- Emphasis on disciplined methods for guiding innovation
Corporate
2001-2008
Motorola Mobility (now a part of Google)
- Mobile devices/services strategy and planning
- Emphasis on understanding the impact of mobility on daily life
Consulting
1992-2001
Doblin Group (now a part of Deloitte)
- Innovation & strategy consulting
- Emphasis on user-centered techniques for business innovation
Matt Mayfield . Dec 2013

3. Areas of experience
Consumer
• Motorola
• Amway
• Texas Instruments
• McDonalds
• Polycom
• Monsanto • SC Johnson
• Baxter Medical
• SAS Airlines
Service
• Sto Corp
• Wierton Steel
• Haworth furniture
B2B
Matt Mayfield . Dec 2013
Product

4. IIT Institute of Design
The evolution of the
field of design has
led to intersecting
areas of study
Strategy &
Planning
Interaction
Design
User
Research
Matt Mayfield . Dec 2013
Product
Design
Systems &
Platforms
Comm.
Design

5. Product
management is
increasingly
difficult...
Matt Mayfield . Dec 2013

6. Matt Mayfield . Dec 2013 . image: http://en.wikipedia.org/wiki/Supermarket

7. Matt Mayfield ..Dec 2013 . image: http://isabellesfishbowl.files.wordpress.com/2012/02/img_0657.jpg
Matt Mayfield Dec 2013

8. The challenge
Capability
How to make
things/services
What’s worth
making
Then
Matt Mayfield . Dec 2013 . source: Patrick Whitney, IIT Institute of Design
Now

9. Matt Mayfield . Dec 2013 . image: http://www.zdnet.com/blog/btl/

10. 100%
Broadband video player
Tangential opportunities in mobile wireless
Enterprise VPN/Security
Broadband audio player
Broadband camcorder
80%
CAGR% 2009-2013
Broadband digital still camera
60%
Memory keeping/sharing
eBook
Navigation
Eco
40%
Music streaming
20%
0%
-10%
?
?
?
Professional healthcare
Digital picture frame
Personal care & wellness
Enterprise unified communication
Enterprise mobile
broadband
Advertising
MID
Music on demand
Wearables
Netbook Mobile TV
Coordinate
Education
Parenting & family monitoring
Mobile banking
UMPC
Consumer IM
Access
Outdoor/rugged phone
Video on demand
Gaming
Mobile payment
Pets tracking
Ringback tone
PND
Ring tone
Wallpaper
Broadband
VoIP
Consumer SMS
Game
Personal safety
Mobile Social Networking
console
Hospitality wayfinding
Consumer Email
Fashion /
Consumer MMS
Luxury phone
VR/TTS
$60
$0 Elderly phone
$2
$4
$10
$20
$35
2011 Expected Market Value Chain Revenue ($bil)
Matt Mayfield . Dec 2013

11. Traditional
tools are
limited...
Matt Mayfield . Dec 2013

12. Matt Mayfield . Dec 2013 . image: http://market.qlikview.com/idiscover-for-imis.html

13. Matt Mayfield ..Dec 2013 . image: http://newsroom.blogs.cnn.com/2013/04/15/a-rather-rare-weather-prediction/
Matt Mayfield Dec 2013

14. Matt Mayfield ..Dec 2013 . images: wikimedia.org/wikipedia/commons/2/2b/ and http://news.mynavi.jp/news/2001/05/23/10l.jpg
Matt Mayfield Dec 2013

15. What now...?
Matt Mayfield . Dec 2013

16. Simplified view of Innovation
Stepping back from the details
Analysis
• Examine market
• Know customers
• Generate options
Matt Mayfield . Dec 2013
Synthesis
• Choose direction
• Specify offerings
• Deliver offerings

17. Simplified view of Innovation
Stepping back from the details
Analysis
• Examine market
• Know customers
• Generate options
Matt Mayfield . Dec 2013
Product
Management
Synthesis
• Choose direction
• Specify offerings
• Deliver offerings

18. Planning also requires two perspectives
Strategy
Portfolio
Planning
Definition
Matt Mayfield . Dec 2013

19. Planning also requires two perspectives
Strategy
Portfolio
Planning
Definition
Matt Mayfield . Dec 2013

20. Planning also requires two perspectives
Strategy
Portfolio
Planning
Definition
Matt Mayfield . Dec 2013

21. Challenges that design can help with
Strategy
Analysis
Synthesis
Definition
Matt Mayfield . Dec 2013

22. Challenges that design can help with
Strategy
Partial
context
Analysis
Synthesis
Definition
Matt Mayfield . Dec 2013

23. Challenges that design can help with
Strategy
Partial
context
Analysis
Synthesis
Random
options
Definition
Matt Mayfield . Dec 2013

24. Challenges that design can help with
Strategy
Partial
context
Dull
decisions
Analysis
Random
options
Definition
Matt Mayfield . Dec 2013
Synthesis

25. Strategy
Analysis
Partial
context
Dull
decisions
Random
options
Definition
Challenge 1
Integrating the
context
Matt Mayfield . Dec 2013
Synthesis

26. Context has many elements
Company
Matt Mayfield . Dec 2013
Customers
Competition

27. Competencies
Useful for focus, can
sometimes be too narrowing
Goals
strategic goals are often
implicit and emergent
Position
benchmarks are ambiguous
Desire to change
pain can felt unevenly across
the organization
Matt Mayfield . Dec 2013

28. Matt Mayfield ..Dec 2013 . image: http://img1.etsystatic.com/000/0/5715016/
Matt Mayfield Dec 2013

29. Form
Apple iPad mini 2
Samsung Galaxy Tab 3
Lenovo Miix 2
Acer Iconia W3
Matt Mayfield ..Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
Matt Mayfield Dec 2013

30. Form
Category
Apple
iPod
touch
Apple iPad mini 2
Samsung Galaxy
Google Nexus 10
Samsung Galaxy Tab 3
Motorola DROID XYBOARD
Lenovo Miix 2
Samsung Galaxy Note
Acer Iconia W3
Microsoft Surface Pro 2
Matt Mayfield ..Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
Matt Mayfield Dec 2013

31. Form
Category
Benefit
Apple
iPod
touch
Sony Playstation Vita
Apple iPad mini 2
Samsung Galaxy
Amazon Kindle Fire HDX
Nokia
Lumia 1520
HTC
One
mini
Google Nexus 10
Samsung Galaxy Tab 3
Asus G51Jx 3DE
Motorola DROID XYBOARD
Lenovo Miix 2
Canon
Powershot
A2600
Samsung Galaxy Note
Acer Iconia W3
Microsoft Surface Pro 2
Samsung Netbook
Matt Mayfield ..Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
Matt Mayfield Dec 2013

32. Form
Category
Benefit
Entertainment
Apple
iPod
touch
Sony Playstation Vita
Apple iPad mini 2
Samsung Galaxy
Communication
Amazon Kindle Fire HDX
Nokia
Lumia 1520
HTC
One
mini
Google Nexus 10
Samsung Galaxy Tab 3
Productivity
Asus G51Jx 3DE
Motorola DROID XYBOARD
Lenovo Miix 2
Canon
Powershot
A2600
Samsung Galaxy Note
Acer Iconia W3
Microsoft Surface Pro 2
Samsung Netbook
Matt Mayfield ..Dec 2013 . images: http://www.phoneArena.com and http://www.att.com
Matt Mayfield Dec 2013

33. Integrated and interpreted context
Company
• Position
• Pain
Matt Mayfield . Dec 2013
Customers
• Activities
• Adoption
Competition
• Benefits
• Differentiation

34. Context of Healthcare & Mobile Technology
Product and service
directions
Dimensions of
customers and
competitive drivers
Domains of technical
innovation
Matt Mayfield . Dec 2013

35. Strategy
Analysis
Partial
context
Dull
decisions
Synthesis
Random
options
Definition
Challenge 2
Directing meaningful
options
Matt Mayfield . Dec 2013

36. Looking for the innovation sweet spot...
Desirable
Valued
benefits
Possible
Technology
capability
Viable
Sustainable
profits
Matt Mayfield . Dec 2013

37. ...requires cross-disciplinary teamwork
Design
Desirable
Valued
benefits
Marketing
Engineering
Possible
Technology
capability
Distribution
Matt Mayfield . Dec 2013
Viable
Sustainable
profits
Finance
Management

38. Matt Mayfield . Dec 2013 . image: http://www.albemarle.edu/news/397/511/QEP-Brainstorming-Session-at-COA

39. Simplified view of Innovation
Basic brainstorming is ineffective
Traditional “rules”
result in...
Focus on quantity
...many ideas
Withhold criticism
...many bad ideas
Welcome unusual ideas
...many silly, bad ideas
Build on others’ ideas
...many more, silly, bad ideas
Matt Mayfield . Dec 2013

40. Simplified view Innovation
Know whatofyou are solving for
New / Better product experiences
New / Better business models
New / Better market spaces
New / Better capabilities
Different types of problems require different techniques,
and none of them can be finished in a single session.
Matt Mayfield . Dec 2013

41. Simplified view of Innovation
Better tools and techniques
Customer Journey
Context modeling
Co-Design /
Participatory Design
Rapid Prototyping
Designing for Growth
Jeanne Liedtka
Matt Mayfield . Dec 2013
Scenario
Road-mapping
Concept Systems
Experience Storyboards
Exposing the Magic of Design
Jon Kolko
Design-Driven Innovation
Roberto Verganti
101 Design Methods
Vijay Kumar

42. Strategy
Analysis
Partial
context
Dull
directions
Random
options
Definition
Challenge 3
Leading powerful
directions
Matt Mayfield . Dec 2013
Synthesis

43. Scorecards can help...
LOW
MED-LOW
MED-HIGH
HIGH
Strategic Alignment &
Importance
Not important to
business; low impact
Somewhat supports
business
Supports business
strategy; good impact
Aligns well; very
important; high impact
Product & Competitive
Advantage
None; neutral customer
feedback
Limited; marginally
superior; OK value
Some new benefits;
good value; positive
feedback
Major new benefits; very
positive feedback
Market Attractiveness
Low growth/margins;
tough competition
Modest market; limited
growth
Significant market; good
growth/margins
Large, growing; weaker
competition
No opportunities;
required skills weak
Some opportunities;
required skills moderate
Considerable leverage;
skills / resources needed
exist
Excellent leverage;
excellent fit between
needs and company
Low; big gap; technology
new to company
Modest; a few hurdles;
limited evidence for
technical feasibility
Good; small gap; some
evidence of technical
feasibility
Straight-forward; have
already demonstrated
technical feasibility
Poor; NPV negative;
payback > 5yrs
Modest; NPV positive;
payback ~ 4yrs
Fairly good; NPV positive;
payback ~ 2yrs
Excellent; NPV positive;
payback < 1yr
Leverage Core Competencies
Technical Feasibility
Financial Reward vs. Risk
Matt Mayfield . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products
Matt Mayfield . Dec 2013

44. Scorecards can help...
LOW
MED-LOW
MED-HIGH
HIGH
Strategic Alignment &
Importance
Not important to
business; low impact
Somewhat supports
business
Supports business
strategy; good impact
Aligns well; very
important; high impact
Product & Competitive
Advantage
None; neutral customer
feedback
Limited; marginally
superior; OK value
Some new benefits;
good value; positive
feedback
Major new benefits; very
positive feedback
Market Attractiveness
Low growth/margins;
tough competition
Modest market; limited
growth
Significant market; good
growth/margins
Large, growing; weaker
competition
No opportunities;
required skills weak
Some opportunities;
required skills moderate
Considerable leverage;
skills / resources needed
exist
Excellent leverage;
excellent fit between
needs and company
Low; big gap; technology
new to company
Modest; a few hurdles;
limited evidence for
technical feasibility
Good; small gap; some
evidence of technical
feasibility
Straight-forward; have
already demonstrated
technical feasibility
Poor; NPV negative;
payback > 5yrs
Modest; NPV positive;
payback ~ 4yrs
Fairly good; NPV positive;
payback ~ 2yrs
Excellent; NPV positive;
payback < 1yr
Leverage Core Competencies
Technical Feasibility
Financial Reward vs. Risk
Matt Mayfield . Dec 2013 . source: Robert Cooper (2001) Portfolio Management for New Products
Matt Mayfield . Dec 2013

45. ...but decision making can be biased
Anchoring
difficulty revisiting initial assessments however inaccurate
Emotional tagging
associating past emotions when perceiving similar situations
Attribution
overweighting success as individual, failure as external
Complexity
assuming one can fully see and understand a complex situation
Matt Mayfield . Dec 2013 . source: Daniel Kahneman (July 2003) “Delusions of Success” HBR, Andrew Campbell (Feb 2009) “Why Good Leaders Make Bad Decisions”, HBR
Matt Mayfield . Dec 2013

46. Matt Mayfield . Dec 2013 . source: Sir Patrick Moore (1969) & http://en.wikipedia.org/wiki/List_of_lunar_features

47. Matt Mayfield . Dec 2013 . source: Chesley Bonestell, The Great Wall. “Conquest of Space” (1949) Life Magazine

48. Matt Mayfield . Dec 2013 . sources: Motorola, Domus Academy, ReadyToPresent

49. Where does this
leave us?
Matt Mayfield . Dec 2013

50. Ultimately, management is leadership
Matt Mayfield . Dec 2013

51. Ultimately, management is leadership
option 1
Matt Mayfield . Dec 2013

52. Ultimately, management is leadership
option 1
option 2
Matt Mayfield . Dec 2013

53. Which is increasingly hard
Capability
How to make
things/services
What’s worth
making
Then
Matt Mayfield . Dec 2013 . source: Patrick Whitney, IIT Institute of Design
Now

54. Design can help
Fully integrated
context
Matt Mayfield . Dec 2013
Directed and
meaningful options
Compelling and
powerful directions

55. Mintzberg: Strategic Thinking as “Seeing”
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

56. Mintzberg: Strategic Thinking as “Seeing”
Ahead
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

57. Mintzberg: Strategic Thinking as “Seeing”
Behind
Ahead
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

58. Mintzberg: Strategic Thinking as “Seeing”
Above
Behind
Ahead
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

59. Mintzberg: Strategic Thinking as “Seeing”
Above
Behind
Ahead
Below
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

60. Mintzberg: Strategic Thinking as “Seeing”
Beyond
Above
Behind
Ahead
Below
Beside
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland

61. Mintzberg: Strategic Thinking as “Seeing”
Beyond
Above
Behind
Ahead
Below
Beside
Matt Mayfield . Dec 2013 . source: Henry Mintzberg “Strategic Thinking as ‘Seeing’” (1991) Helsinki, Finland
Through

62. Thank you
Matt Mayfield
mayfield@id.iit.edu
www.linkedin.com/in/mayfield