Analysis Of Capital Ideas

Kelly: assumes that Pat does not understand the development process; assumes that he is discussing the "same" product as Pat without having a firm definition of the product; assumes that Pat is trying to undermine his authority with programmers; assumes that development must be done in-house; assumes that resources are "either/or" either devoted to development or devoted to support.

Pat: assumes that new product can leverage a lot from the existing product; assumes that leveraging from existing product will result in a minimal impact on the budget; assumes that leveraging from existing product will result in a minimal impact on the schedule; assumes that programmers are aware of the overall situation and able to give accurate "hallway" estimates; assumes that Kelly and others understand the new product features; assumes that Kelly has no legitimate objections, and is only a roadblock to the development of the new product.

Cliff: assumes that everyone understands the goals of the development project; assumes that decreasing the budget and compressing the timeline will have no effect on the project; assumes that the competition is at the same more a more advanced stage of development

Chris: assumes that Pat & Kelly understand the goals of the project and the company; assumes that a full-scale development project by August is the only option for the company; assumes that e-mail is sufficient for communications regarding this projec

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al feature can be built into the product this is fallacious since the product has not been "spec'd" to the point that such a decision can be made. Chris holds the fallacious argument that the new product will find a ready market. Cliff holds the fallacious argument that the competition is already either equal to or ahead of AcuScan in developing this type of product. CONCLUSIONS The key problems in this case stem from a single critical problem: the lack of product definition for Operation Optimize. Pat has defined in marketing terms the features of this product, but these features have not been defined in a specifications document. Without such a specification, it is impossible for the company as whole and product development in particular to determine what resources will be required for the project and whether the project is appropriate for the organization at this time. Due to the lack of specifications, misconceptions and contradictions have led to competing budgets with nearly a 50 percent variance as well as to frustration about what can and cannot be accomplished by the August deadline. The August deadline is problematic in that it is driven not by when development can produce the new product, but by market forces.

Category: Business - A