Killing a Project
Killing a project is not something we spend time talking about. But doing projects well includes knowing how to limit loss if failure is unavoidable.
Working in Biotech and Pharma I saw how large and risky investments were managed. It was important to kill a failing project as early as possible. The reason was obvious - reduce loss and move on to the next big idea.
These lessons apply equally to software and technology product development. For a mid-sized company, taking a technology product from concept to market launch is risky and expensive. Here are some ways to limit potential loss by setting up properly from the start.
Pay-for-Use Models
Avoid large, up-front software licensing costs. Many services that a technology product consumes (3rd party) operate on a pay-for-use model, or offer it as an option. While this may not be the cheapest route in the long run, it reduces early project cost. Great examples that we use in products include Stripe (for payment processing), Twilio (for text messaging), Sendgrid (for email).
Cloud
Rent, don’t buy. Building in the cloud, even if only initially, allows the product to progress through early stages with minimal cost. Cloud servers can be created and taken down quickly and inexpensively. Examples are Amazon Web Services (AWS) and Google Cloud Platform.
Short Development Iterations
Bite off small chunks at a time. While this is common practice (or should be), it is important that beginning iterations deliver a demo product, or can demo parts of the product. Short iterations allow for frequent review (gating) and help reduce costs if the product needs killed.
Intense Focus on MVP
Focus obsessively on minimum viable product (MVP). Strict adherence to MVP release avoids non-priority features. Killing a project with fewer features means less development costs.
User Feedback: Early and Frequent
Seek user feedback early and frequently. Authentic feedback from varied user groups (potential or real customers) helps provide critical information about product viability in the marketplace. Avoid the happy story and natural tendency of early demonstrations to tell you what you want to hear. This will only prolong a doomed project. Use visualization tools such as InVision if you don’t have a workable product demo.
Expert Development Services
Adding technical staff is time consuming, challenging, and expensive. While care should be taken, partnering with an application development, or a technology product development company will help reduce early product costs. External development teams are easier and cheaper to "spin-down".
You should have noticed that these approaches resemble those required to set up for successful product development. They are, in fact, the same. Proper setup will help a project succeed. There are times, however, when other factors (economic, regulatory, competitive, etc) critically impact product lifecycle. In these cases, the above suggestions will save time and money and help get you on to the next innovative idea sooner.
