How to waste $20,000 on a software you don’t need
While it may seem counterintuitive to spend time and money only to conclude that a project is unnecessary, the long-term benefits of making informed decisions far outweigh the initial costs
There is an often-overlooked aspect of decision-making that can be immensely valuable — the ability to make informed, data-backed decisions. This is where the design and discovery (D&D) process and the role of a design consultant becomes crucial, even when the outcome is a recommendation against building that much-anticipated software.
In a hypothetical scenario, a company invests six weeks of research and $20,000 only to be told by their design consultant that they don’t need the software they were contemplating. They assess the current market, their current problem and their current solution to the current problem. After analyzing an array of dimension, a six week research that might cost anywhere upwards of $20k might suggest that it’s best not to build that software. While this may initially seem like a waste of time and money, it’s essential to recognize the long-term benefits of such a decision.
First and foremost, informed decisions are the bedrock of successful businesses. Rather than rushing into development without a clear understanding of the necessity or potential impact, investing in thorough discovery allows companies to assess their needs, evaluate the market, and make decisions based on solid evidence. This process not only prevents the unnecessary allocation of resources but also aligns business strategies with actual requirements.
Enter Sandman*
Design consultants (or product designers if they’re in-house resource) play a critical role in guiding companies through this decision-making process. By leveraging their expertise, they help stakeholders navigate the complexities of rolling out an actual product, ensuring that every decision is grounded in data and analysis. The value lies not just in the outcome but in the journey toward clarity, where the company gains insights that can inform future endeavors.
Moreover, the concept of a ‘waste of money’ needs to be reframed in the context of strategic investment. Spending $20,000 on discovery that leads to the conclusion that a software solution is unnecessary is a small price to pay compared to the potential costs and consequences of developing and maintaining an unnecessary tool. It’s an upfront investment in avoiding much larger financial and operational pitfalls down the road.
Trends evolve rapidly, and what seems like a revolutionary solution today might become obsolete tomorrow. Investing time and resources into research helps companies stay agile and adaptable. It allows them to pivot quickly in response to changing market conditions or emerging technologies, ensuring that their resources are deployed where they will have the most significant impact.
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Additionally, a company’s reputation is at stake when it comes to technological investments. Launching a software solution that proves to be unnecessary or ill-conceived can erode customer trust and confidence. Informed decisions, even if they mean abandoning a project, contribute to building a brand that is known for thoughtful, strategic choices.
In conclusion, the job of a product designer during product discovery process is not merely to say ‘yes’ or ‘no’ to software development. It is to guide companies through a thoughtful and data-backed decision-making process. While it may seem counterintuitive to spend time and money only to conclude that a project is unnecessary, the long-term benefits of making informed decisions far outweigh the initial costs.
The ability to pivot, avoid unnecessary investments, and build a reputation for strategic thinking are invaluable assets in the ever-changing landscape of business and technology. In the end, the true waste would be proceeding without clarity, risking resources on ventures that lack a solid foundation in data and analysis.
Some notes and thoughts on product discovery
- It’s wise to discuss and agree on a design and discovery contract with the customer before diving into the full project. Think of it as a test drive for your services.
- This way, the cost is a fraction, and the duration is short, making it easier for customers to decide. Saying it’ll cost $1.5 million for a year versus $16,000 for four weeks gives you more negotiation power.
- After the discovery, you can readjust and create a development and maintenance contract.
- Essentially, you’re crafting two Statements of Work (SoWs) and two contracts. The discovery contract wraps up when (and if) the development contract kicks in.
It’s totally fine to discover there’s no demand for the software and decide not to move forward. If your research shows that, it’s the truth. The customer pays you to make that study and help them decide. So, you’re not on the hook if the project doesn’t go forward.
- “Enter Sandman” is a song by Metallica where James Hetfield writes about crib death among infants (SIDS). It is believed that when a baby suddenly dies, the Sandman takes them away. Just like the Sandman, its you, the product designer who will kill the software with your data if it’s not needed.
