Summing up Remarks

1. Summing up Remarks May 27, 2008

2. Final Presentation and Paper For Thurs, May 29, 2008 • Final Presentation to class. These should take approximately 20 minutes (~15 ppt slides) plus 5 minutes discussion • Include one slide on your team experience (pros and cons) By midnight Sunday evening June 1, 2008 • Final Report due. The Final report should be maximum 15-20 pages double-spaced. • Added Appendix OK • Include references! Internet OK, private conversations but reference

3. Today • Ethics • Cases and Lectures- Key Takeaways- Class Discussion • Core Competencies • Seven Key Elements for Outstanding Development projects • Risk and Risk Management • Organization • Project Management • Rapid Prototyping

4. Ethics DiscussionKen Pickar E 103 5/27/08

5. Agenda • 4 questions • Cases • Supplement IEEE Code of Ethics

6. 4 Questions • What is bothering you? • Could not live up to expectations (yours, and clients) • Long range not a good profit • Worried about immediate appearance • Huge cost to clients • What is the ethical issue involved? • Honesty • Willful negligence • Who are the people involved? • Customer, Everyone at company, Group in particular, Employee families, investors, future loss of business • Are you being true to yourself? • Who to talk to? • Boss’ boss, ombudsman, talk to others in group, come out with a patch

7. Basic Question Are those ethical principles that are appropriate in a business context different than those used in one’s daily personal life? YesNo Why or Why Not?

8. Hidden defects • I was heading a software development project team for a research laboratory client. It was about adding new features to existing software. The project had some revenue incentive to us if we delivered ahead of time. • My manager was very insistent that we should ship it at least 4 days before the scheduled date, and did not allow us to do the entire quality assurance phase. Just about after we had shipped it, we realized that we had shipped quite a defective product, something that could compromise the security of the client’s network. • I wanted to at least inform the client about this and ask them not to install it on their systems. However my manager put a complete stop to that and said that we would wait until they discovered it, and got back to us. Also, he suggested that I should cover it up by saying that it is not our fault and this defect had been there in the original software. • As this was my first assignment as a team lead, I was not sure what the expectations of the company itself would have been. From what I had seen and heard, I was almost sure that this is not the norm in the company. However I was not sure if I could just ignore my manager’s suggestions and tell the client anyway. This could lead to serious problems for the company’s image and future projects from the client.

9. Case 2 The bag man • Case:After a few months of effort, we finally had a client (a reputed cooperative bank in India) who was ready to implement our software. The client had long and exhaustive discussions in the executive room with the CEO of my company during the closure of the call, and sometimes I was requested to be excluded from the meetings though it was my account. Finally, the day came when I was called upon by the client to pick up the purchase order and I was extremely delighted. Just before going to meet the client, I was called upon by the CEO to congratulate and hand over a bag which was to be given to the Director (decision maker) of the bank. I was naive enough to ask about the contents of the bag, and was shocked to know the answer. Finally, I roamed around with the bag in my hand for a few hours before handing it over to the Director. I will never forget those hours as they have left a lasting impression on me.

10. Case 3 The helpful consultantJohn Weng • I have a consulting assignment one time that required me to be at the client site for 4 months. The company is a major airline in the US and I was brought in to head an airport ticket project that was already six months late. My main tasks are to define scope, develop a reasonable project timeline, put together a programming team and pick a client project manager to finish the project according to the scope. • I have befriended the IT director and we talked a lot about their business and their goals. Because of my experience in the client's industry, I came up with an idea to streamline their back-office operations that would cut a major chunk of back-office operational cost. The IT director was quite excited by it and proposed that I meet with the CIO to discuss the idea. However, as I did more research on the back-office operations and discuss it with colleagues both from the client and my company, I discovered that my idea of consolidating the back-office operations would have a severe negative impact on an important revenue stream for my company. I thought that I should approach my managers to explain the situation and ask for their opinions. However, the IT director has already briefed the CIO about the idea and is working on putting together a budget for her review. I am not due back to my office for another two weeks but the CIO meeting is three days away and cannot be delayed because of the CIO’s schedule. I wonder whether I should just put the proposal together and present it or I should still get my manager’s opinion before I proceed.

11. IEEE code of Ethics • We, the members of the IEEE, in recognition of the importance of our technologies in affecting the quality of life throughout the world, and in accepting a personal obligation to our profession, its members and the communities we serve, do hereby commit ourselves to the highest ethical and professional conduct and agree: • 1. to accept responsibility in making engineering decisions consistent with the safety, health and welfare of the public, and to disclose promptly factors that might endanger the public or the environment; • 2. to avoid real or perceived conflicts of interest whenever possible, and to disclose them to affected parties when they do exist; • 3. to be honest and realistic in stating claims or estimates based on available data; • 4. to reject bribery in all its forms; • 5. to improve the understanding of technology, its appropriate application, and potential consequences; • 6. to maintain and improve our technical competence and to undertake technological tasks for others only if qualified by training or experience, or after full disclosure of pertinent limitations; • 7. to seek, accept, and offer honest criticism of technical work, to acknowledge and correct errors, and to credit properly the contributions of others; • 8. to treat fairly all persons regardless of such factors as race, religion, gender, disability, age, or national origin; • 9. to avoid injuring others, their property, reputation, or employment by false or malicious action; • 10. to assist colleagues and co-workers in their professional development and to support them in following this code of ethics. • Approved by the IEEE Board of DirectorsAugust 1990

12. Basic Question Are those ethical principles that are appropriate in a business context different than those used in one’s daily personal life? YesNo Why or Why Not?

13. My take:Engineering (Business) Ethical behavior is integral to other ethical issues you confront in your life • in business • in your profession • in your communities • in your state or country • in your family • In the University • Curriculum • Behaviors In my opinion, Engineering Ethics cannot legitimately be compartmentalized

14. David Baltimore

15. Kent Kresa, Northrop Grumman • Strong vision • Predict spending and allign company • Shareholder • Forging partnerships to enhance technical capabilities • Targeted acquisitions

16. Key take-aways • Rob Manning JPL • Leadership • How to inspire engineers • Enthusiasm • Cultural advantage • Set by leader • Diversity required age race etc. • Learning from failures

17. Henry Kressel, Warburg Pincus Diversify risks Too soon is OK Interesting Career path How useful knowledge recurred in life Don’t compete with big guys Don’t rely on others dong market research

18. Key takeawaysGenzyme Money to be made in small markets Importance of legislation Lobbying Financial model Customer relations through ins co

19. Satyam Cherukuri, David Sarnoff Labs • Take existing idea and market it someplace else • Ethical guidelines • International nature of technology • Importance of Quality

20. Kitty Hawk • Focus on one product. Don’t try to do it all • Difficulty in predicting mkts • Difficulty in being too far ahead • Can do lots of things right and still fail • Difficult to change technologies and markets together • Hard for a big company to act like small company too deep pockets

21. Case: Claire McCloud • Career opportunity- take it • Don’t let your background hold you back

22. Core Competency and Focusafter Prahad and Hamel (Burgleman) • Necessity to rethink the corporation • Traditionally vertically integrated model was very successful, why? • Example Ford River Rouge, US Steel, General Electric, AT&T • What is the problem with that methodology today? • Too expensive • Too much to know • Companies need to focus on what they are good at and what the customer values. • What are Core Competencies?

23. Core Competencies • Provides potential access to a wide variety of companies • A core competence is perceived by the customer as a significant benefit in dealing with you • Barriers to entry- difficult for actual or potential competitor to imitate

24. Core Competencies? • The collective learnings of an organization • Organization of work and the delivery of value • Knowing what your customer values in you and what is a “don’t care.” • Understanding what lies beneath your product stream • What do they do better than anyone else • For a new company- to understand what they can do, what they must do, and what can be done better by someone else

25. How many Core Competencies can a company have?

26. Core Competencies in Technology • From a portfolio of companies to a portfolio of technologies • Harmonizing streams of technology • Example of Japanese companies exploiting computing/communications convergence in the 80s and 90s while IBM and AT&T failed • What are Satyam’s companies core competencies? • What is your core competency? What should it be?

27. Core (Technical) Competencies? • Caltech • World class research • graduates • Intel • Reliable microp • Google • Search • Coupling of advertising to search • Walmart • logistics • Dell • Customer • Sales model • Cash • Cisco • routers • Visa • Convenience • Business univerfality • Branding • Toyota • Manufacture • design • US Government • Defense • Universal pop culture • Capitalism

28. Apply this to actually getting something done... Seven Key Elements for Outstanding Development projects – Bowen et al • Core Capabilities • Guiding Visions • Business Vision • Project vision • Product concept • Pushing the Envelope • Project Leadership and organization • Ownership and Commitment • Prototyping- Rapid Learning and early testing of product and, if possible, the market • Integration within Development Project P(success)=P(1)P(2)P(3)P(4)P(5)P(6)P(7)

29. Creating Effective Visions Reactive • Customer Specification • Voice of the Current Customer • Competitive Benchmarking • Tire-kicking • Voice of Lead Users • Empathetic Design • Market intuition • Scenarios of the future Pro-active

30. Technical Assessment • Current Capabilities • Reverse Engineering • Product or process benchmarking (competitors) • Best-in-world benchmarking • Experience and Performance curves • Technological Breakthroughs Reactive Aggressive

31. Pushing the Envelope Company risk And Resource allocation Performance envelopes Decisions When Product Projects to push envelope Process How Far? Total internal capabilities Which ones

32. Pushing the Envelope (cont.) • Use Product Development Teams • Placing Manufacturing people in the field (or bring customers to the factory) • Doing R&D on the manufacturing line

33. Managing and Controlling Risk • Technical Risk • Market Risk • Managerial Risk

35. Detailed Design Pre- Concept Concept Manufacture Support The wrong way to control riskA Product Delivery Process with “Science” A Miracle Happens here! After- Market Service

36. Addressing Risk upfront Risk Exploratory phase Aka “the fuzzy front end” Launch project Expensive development Time

37. Managing Risk • Project management tools • Phase gates • DFX X=market X=cost X= mfg X=reliability X=environment X= etc.

38. Organization • Functional • Matrix • Project

39. Role of Project Leader • Direct Contact to the Market • Multilingual translator • Direct Engineering Manager (overall systems responsibility) • Walk around listener/problem solver/inspirer • Product Vision guardian • See around corners- anticipates problems

40. Ownership and Commitment • The individual power to make a difference • Personal identification with project success • Team shares responsibility • Entire company supports projects success • Recognition that business unit is dependant upon projects goals • Alignment of Rewards

41. Teams and team integration • Co-location • Cross-functional training • Team building • TQ behaviors • Successful Teams

42. Prototyping B A limited prototyping Project Completeness Project B Systems concept Breadboards Critical components Sub system prototypes Pre mfg prototype Pilot production prototype Time

43. Types of Prototypes • Models and Mockups • Computer simulations • Subsystem prototypes • Mechanical prototypes • Engineering prototypes • Production prototypes

44. Leadership • What is the relationship between a great leader and the success of a technology? • What makes a great leader?

45. Great Leaders- Examples • Science: Craig Ventnor, Negroponte, Baltimore • Politics: Henry VIII, Gubernator, Mandela, Lincoln, FDR, Ghandi • Military: Patton, Marshall, Rommel, Van Braun • Business: Welch, Jobs, Gates, Murdoch • Cultural: Spears, Stewart, Trump, Murdoch, Beatles, Dr. Dre, Gerschwin • Other endeavors: Jesus, Hitler, Bin Laden

46. Great Leaders- Examples • Science: • Politics: • Military: • Business: • Cultural • Other endeavors

47. Great Leaders- What are their Characteristics in common? • Consistency of message • Integrity (Think Clinton) • Psychological connection with people • Understands people’s motivation and how to harness them • Manage complexity • Command respect (or fear) • Confident & Assertive • Form a good team

48. Intelligence Characterizing Features: • Hire very smart people to work for you • Reading other people (emotional IQ)

49. Vision • Characterizing Features: • Knows where the world is going, can see around corners • Able to adjust to changes

50. Communication • Characterizing Features • Positive bias in communicating • See problems as opportunities • Motivate others by example