Duvan Luong, Ph.D. Operational Excellence Networks

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1 Duvan Luong, Ph.D. Operational Excellence Networks

2 Contents Where are we? Where do we want to be? An example of where we want to be. A proposal for how to get there. Next Steps 3/27/2012 2

3 What do Successful Companies have in Common? Have a very clear understanding of what is valued by Customer in their respective markets Built powerful and cohesive capability that could deliver more of that value than competitor Raised customers expectations beyond competitors reach 3/27/2012 3

4 Where are we? In general, Product Generation Life Cycle activities centered around the product categories of FLURPSIA (Functionality, Localization, Usability, Reliability, Performance, Support-ability, Inter-operability, Availability) Customer value and satisfaction regarding FLURPSIA requirements is not clear A process to understand, measure, and manage the customer value and satisfaction is very desire-able for the company. 3/27/2012 4

5 Where do we want to be? The organization has the absolute control of the how to : Measure the customer satisfaction baseline before the project started. Understand customer value and satisfaction requirements Set customer satisfaction improvement goals Plan development activities to achieve customer satisfaction goals Validate the achievement of customer satisfaction objectives when the project ended, and Continuously improve customer satisfaction. 3/27/2012 5

6 An Example of where do we want to be

7 Context Setting Assume that There is an existing product with well established customer relationship There is a way to measure the customer satisfaction for the product Availability of competitors customer satisfaction data Customers provided to us their satisfaction for each of the FLURPSIA categories, the importance of each category to them (weight factor) and which one will impact their buying decision the most Organization Objective The primary objective is to reduce the amount of neutral and negative (low) customer satisfaction measurement (or to increase the positive (high) satisfaction measurement) Integrating the use of customer satisfaction information throughout the development lifecycle to ensure customer satisfaction objective 3/27/2012 7

8 XX Product Customer Value Satisfaction Index (Baseline measurements during the Requirements Phase) Positive Neutral Negative Functionality Localization Use-ability Reliability Performance Support-ability Inter-operability Availability Overall Satisfaction Value Factor Baseline 0% 20% 40% 60% 80% 100% Customer Satisfaction 3/27/2012 Functionality is #1 influential factor in Customer buying decision 8

9 XX Product Customer Value Satisfaction Index (Goals Setting during the Investigation Phase) Positive Neutral Negative Functionality Localization Use-ability Reliability Performance Support-ability Inter-operability Availability Overall Satisfaction 0% 20% 40% 60% 80% 100% Baseline Customer Satisfaction New goals (50% improvement) 3/27/2012 9

10 XX Product Customer Value Satisfaction Index (Targets for Improvement identify during the Investigation Phase) Positive Neutral Negative #1 #3 #2 #4 Functionality Localization Use-ability Reliability Performance Support-ability Inter-operability Availability Overall Satisfaction % 20% 40% 60% 80% 100% Value Factor Customer Satisfaction 3/27/

11 XX Product Customer Value Satisfaction Index (Improvement Actions during the Design/Construction Phase) Attribute Improvement Action Functionality #1 Performance #2 Use-ability #3 Inter-operability #4 Availability QoS for multi nodes, heterogeneous mobile video applications TLOB (tetra bite large object) support IPv8 enabler transaction monitor, etc. Increase clock speed Fast password checking algorithm Dynamic data allocation from hashed index search, etc. WYSWYG API Voice recognition command parser Leverage of YYY test Lab during Beta test time, etc. Linux applications interpreter Multiple OS platforms virtual memory partitioning Compile and go support for JAVA ++ Dual back-up channels Support-ability Localization Reliability Contract with Stanford Univ. for tutorial on system tuning More real-life examples in the training material Adopt Standard 3000 for supporting bit-mapping Incorporate Open Source test suite Lamda88 Focus beta testing on large video streaming user applications 3/27/

12 XX Product Customer Value Satisfaction Index (First Customer Ship + 6 months measurements) Positive Neutral Negative Functionality Localization? Use-ability Reliability Performance? Support-ability Inter-operability % 20% 40% 60% 80% 100% Value Factor Availability Overall Satisfaction Goals Customer Satisfaction Actual 3/27/

13 A proposal for How to get there - Integrating Customer Value Satisfaction Into the Product Generation Cycle

14 Customer Value Satisfaction Information Integration of Customer Value Information into the Product Generation Cycle Understand customer value and satisfaction requirements Company Customer Value Satisfaction Management Process Customer value satisfaction goal setting and actions planning Actions implementation Customer value satisfaction goal validation Information for next release improvement Customer value satisfaction improvement Requirements Investigation Design Construction Verification Maintenance Company Product Generation Cycle 3/27/

15 Customer Value Satisfaction Integration Steps Develop a clear understanding of customer value requirements, Establish a baseline measurement of customer value satisfaction, Set goals and develop an action plan to achieve those goals Integrate the planned actions to the development cycle, track the progress and take additional improvement actions if necessary Validate the achievement of the customer value satisfaction goals Continuously improving customer values management 3/27/

16 Customer Value and Satisfaction Centric Product Generation Cycle Company Product Generation Cycle Requirements Investigation Design Construction Verification Maintenance What attributes are the most important drivers of customers perceptions of overall value and of their purchase decisions? How do customers perceive the overall value of your products/solutions and services relative to competitors? What are the areas for improvement that have the most impact on your ability to win and retain more business? What factors should be emphasized in marketing communications? What are the customer value satisfaction requirements resulting from the above questions? What is the baseline measurement for customer value satisfaction? Customer Value Centric Focus What are the goals for customer value satisfaction? What are the customer value satisfaction areas that require more focus? What actions will the team take to achieve those goals? Are we including the testing of customer value satisfaction in our test plan? Do we plan to engage customers during our design and construction phases? Does our product/solution design satisfy the customer value satisfaction requirements? Are we making progress in the implementation of customer value satisfaction requirements? Have we completed all the customer value satisfaction improvements? Who are the customers that participate in the Beta testing of the product? What is the result of the customer value satisfaction survey? How are the actual customer value satisfaction measurements compared with the goals? Are there any improvements that need to be done before the actual MR of the product/solution? What is the measurement for customer value satisfaction six months after MR? How does the measurement compare to the goals? Are there any improvements that need to be planned in the next release? 3/27/

17 Customer Value Satisfaction Measurement Form Your satisfaction for the attribute Very low Very high Importance of the attribute to you Very low Very high Satisfaction Attribute VL L N H VH Functionality: Does the product have the necessary function and ability to do your job? Localization: Does the product conform to your local environment and usage requirements? Use-ability: How easy is the product to use in terms of accomplishing your desired tasks? Reliability: Does the frequency, number, and seriousness of product errors and other problems, and its recover-ability attributes meet your expectations? Performance: Does the response time or speed with which the product executes its functions meet your expectation? Support-ability: How would you rate your satisfaction with the responsiveness of SNSL support and service? Inter-operability: How would you rate the inter-operability of the product with other products/applications in your operating environment? Availability: How would you rate the available of the product, when you need it? What is your overall satisfaction for all aspects of the product? What is the top item from the above list that affected your product buying decision the most? F L U R P S I A 3/27/

18 Next Steps Communicate the customer value satisfaction process idea to Staff Get approval and buy-in for piloting the customer value satisfaction process idea Identify candidate for the pilot effort Track the pilot progress and report the result Incorporate the idea to the company Product Generation cycle activities 3/27/

19 A Departing Thought Would the company be better positioned to win in the market place, if it measures its execution results based on the values defined from its customers perspective? 3/27/