productization chasm

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Commercialization is a hot term these days for entrepreneurs, for technologists, and for investors.  Commercialization bridges innovation and production.  Nearly every TTO, every B-school, every business plan even, show a graph like this:

What every business plan shows

However, in the real world, the situation is more like:

What all too often happens

Somewhere between hey-my-design-works and the nirvana of stable volume production, complications arise in terms of turning that nifty technology into a manufacturing ready product. This is the Productization Chasm that we have blogged about previously.  It’s tough to spot but easy to fall into. There is no magic solution to avoiding this chasm, although  good first step is recognition that productization–turning that technology into a product–is hard work.

Productization needs to be planned and budgeted for, it needs to be resourced and managed , and the productization plan needs to be executed with skill and precision.  It is not enough for a product to look good and function: it needs to be optimized for manufacturing; it needs a well thought-out supply chain; it needs to be cost effective to produce.  Likewise manufacturing details like setting up that well thought-out supply chain, test development, tooling, and process optimization need to be worked out before throwing a design over the wall.

Don’t fall into the productization chasm.

Chuck

 

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Ever ventured unwittingly into the shadow world of NoTest? It’s the hazy utopia where the ivory tower types proclaim that if the design is good and manufacturing is good then why test.  Sometimes this even came up in a snarky way, back when I worked in an integrated contract design and manufacturing (CDM) environment, as in “You did my design and you’re going to manufacture it, so then you don’t need test . And oh by the way take the test line item out of the open book pricing I made you provide.”  Followed by a sneer, or at least I envision a sneer in my memory when I think back unfondly on those days.

Of course doing without test in the real world is, well, fantasy.

Don’t get me wrong I’m a huge fan of doing a solid design, employing six sigma techniques where cost effective, and conducting serious design validation testing long before production release.  I’m also a fan of spending the effort needed to productize a design–get it ready for production and get production ready for the design.  But despite best efforts and intentions, I am also a believer in both Murphy, he of that oft quoted Law, and also in statistics, which basically say that even with a robust design and a low DPM (defect per million) manufacturing yield loss there are still product that will fail, and its better to know about a failure sooner rather than later.

Of course the level of test absolutely should be commensurate with the product robustness, yield issues, and the total cost of field failures (which while high are not infinite) including impact on brand, returns, customer satisfaction.  And while in reality NoTest is an extreme that is rarely ventured, many companies do neglect developing and implementing a production test plan that is as robust as their design methods and production practices. Often times this is due to lack of understanding of how test works; sometimes its part of the “beat up your contract manufacturer,” and all too often it’s just part of the productization chasm that widens with time as design teams and their manufacturing counterparts drift further and further part. (for more on this see our productization blog on the chasm analogy, http://zebulonsolutions.com/productizationblog/?p=41).

The right solution is really to put the same effort into making sure your test plan is robust as you do for design, marketing or any other function.  Start with requirements, look at tradeoffs, come up with a draft plan, scour it for cost effectiveness and get buy in from the cross functional team.  Make sure the risk / reward equation is properly balanced, and, as my Swedish friends would say, make sure the amount of test is lagom–neither too much nor too little.  And avoid the sirens as they lure you toward the shadowy land of NoTest.

Chuck

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Been thinking a lot about productization lately (okay, been doing a lot of productization lately).  Up until now I’ve been using the brick wall analogy to describe what productization is–you know, helping companies get past the complete the design and throw it over the wall to manufacturing issue.  Been there, done that, doesn’t work.

But perhaps a better analogy is that product development is a ramp, bumpy to say the least, but there is this unmarked chasm right near the end of design just as you can clearly see manufacturing (and customer revenue) nirvana.  Some never see it coming; some hit the accelerator and try to jump it, Evil Knievel style.  Some slow down to a stop, get out and search for a path.  Some panic. 

Of course a few smart productization engineers would have had the foresight to have built a bridge…

Chuck

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