Monday, November 16, 2015

Four Laws Of Software Economics

Interesting set of software rules that define product development (put up here). Seems like we all know these but good to have somebody put up these so nicely. I have summarised those below but for complete description of the same, do visit the site. 
  1. Your development team will never, ever, ever be big enough. So you have to apply The Law of Ruthless Prioritization at every level to focus on the few truly important items
  2. The Law of Build Once, Sell Many - Software has high fixed development costs but also the opportunity to add users at near-zero incremental cost.
  3. The Law of Whole Product- Customers buy solutions, which includes software but are framed by careful segmentation and great marketing/sales. We want to offer the shortest Mean-Time-To-Joy (MTTJ) such that customers find us, try us, immediately see our value, and sing our praises to others in the right segment.
  4. The Law of Strategic Judgment- Voice of the Customer mechanisms, user forums and business value analytics are all important inputs to a product direction and prioritization of the short-term backlog. But none of them deliver definitive answers. As executives and product leaders, we have to weigh many inputs, make hard trade-offs, synthesize a strategy, and own the (uncertain future) results. We have to develop and apply judgment.

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