Customer Expectations, Prototyping Methodology and Risk Management

1.      Customer Expectations

Keeping project on the race, especially in the context of changing requirement and specification is very hard. Before we begin to utilize our resources to meet customer requirement, we should have a clear view of minor key aspect which satisfy customer expectations.[1] Company must know that customer satisfaction is lined up with customer expectations. Thus, if company cannot manage such expectations, market will be full of unhappy customers. [3]Similarly, company must be laser focused on each and every minor detail things of project requirements, commitments, and strict timelines otherwise the project team will be the one in the painful moment. Such acute details if missed, might lead the project out of objective, slippage of time, cost overruns, and lots of frustration.

1.1.           Keys for a successful project

ü  Delivery of project/product on schedule

ü  Delivery of project within specific budget.

ü  Beat customer expectations.

è Here are some of the customer expectations that they are seeking from the project team. They are explained below:

1.2.Explanation to Customer expectation

ü  Is the product usable? Does it do something useful?

As always customer wants the useful and functioning product/projects.  Product or service they received if not functioning is of no good. For example: A customer receiving a brand new iPhone smart phone expects that the smart phone will be useful device. But if the iPhone he/she gets does not start up, has a technical or other defect is of no use. In this condition customer would not get satisfied with the smart phone and the overall company empire. Thus, performance, speed, reliability and accuracy of the product determine the product to be usable or not. So, if all the requirements are done from customer and developers perspective then product might be something usable.

ü  Loyalty and Promises

It is one of the big expectations from the customers that company or the project team should make up their promises to the reality. For example: Amazon a bestselling commercial website that facilitates billions of customers with billions of different products. If Amazon could not deliver their product to the customer on promised time and venue then they are no more loyal to their business. Similarly, if the product has to be released in specific time with distinct features but product are totally different then customer might get totally freaked from their expectations. Anything that degrades customer standards might disappoint them badly.

ü  Sensible and Skillful Servicing

Customer expects that those who are assigned to complete a task must know what sort of work they are doing. Those were the teams that were professionally assigned to the project to lend quality and ideal solution to the customer. If not so, customer might feel uneasy and point down your skill to build up. Customers expect that service providers should behave them in a friendlier and in professionalism manner. However such behavioral aspect does not enhance performance ability of a product. But it is sure that the result is to gain more unhappy customers.

ü  Determine the customer needs and address them efficiently.

Company should stand to the customer environment in which they actually functions the cases and difficulties they suffers. Also, they seek the similar result from their perspective. Thus, regarding their problems company must be focused to meet their needs generally. They want team to evaluate their problem, solve them, not to add them generously. They do not want any causality in their work. They want to go their things smoothly according to the theme. They do not want any excuses or sorry for the poor performance of the product because they want to look for positive results. 

2. Prototyping Methodology

Rapid Prototyping Methodology is simply a System Development Method (SDM) where an early version of a system or a product (prototype) is developed, tested and rebuild to make a final and acceptable product or prototype.[1] This methodology is suitable in such case where project requirements are unknown within limited period of time. Its origination typically lies in Software development process. [2] Prototyping Model is a trial and error procedure which usually occurs between users and the developers. A prototype model is constructed on the basis of known project requirements. It is an intuitive scheme for complex and large projects for which there is no reference or an existing model for determining the needs.

When to use Prototype Model?

Prototype Model is used when specific information regarding inputs and output requirements are not explained.

It is used when particular system does not exist or in the case of large and complex projects where there is not simple process to evaluate the requirements.

2.1. Advantages of adopting Prototype Model

2.      Decrease in time and cost

Prototyping Methodology can enhance the quality of the project demand and specifications which are provided to the developer. Besides, changing cost aggressively leads more income source as the risks are detected later in the development phase. Thus, the early determination of the user demands can produce less expensive soft wares in less time.

3.      Active User Involvement

A prototype model accepts changes by going with the flow. Since, multiple demos or prototype of a system is built earlier; customer (user) can get a brief knowledge about the system or processes being developed. Users are assigned for living with the solutions that the developers or companies offer. So, user actively participates in the development of model.

4.      Absolute  Reflection of the Product

As the user knows what type of product they are getting, they will understand how the final product looks like. Accordingly, the developer might boost up their confidence level as customers are in synchronization with expectation from developers. Besides, unrealistic expectation from customer vanishes automatically because customer knows exactly what type of product they will get.

5.      Refined Error and validations

As always user feedback and tips always leads to better guidance and solution. Likewise, in every prototype built, customer feedback medicines the project errors and threats. So that errors will be exposed earlier this offers developers a chance to refine those errors before project sucks. Similarly, missing components, validations and more functionality can be added up to the system.

6.      Easy Learning of System

The problem of the developer who disregard customer demands always fails because the developer are to make what customer are expected to get. This model also facilitates user to get easy with the system by introducing them the methods to operate the prototype. Also, the software that is built under prototype methodology requires less user training and experiences because user are known to the system processes and standards from the start of the project.

7.      Applicable to Online System

Prototype Model is suitable for most of the online systems such as: Online Reservation System, Ecommerce Selling System etc.

Such online system might have high level of computer interaction with the user. Mostly, end users can directly interact with the processes and functions of the system. 

3. Project Risk Management

What is Risk in Project Management?

Risk management is a procedure to identify risks and threats discovered during project management. Risk is very susceptible in various business organizations undertaking distinct projects periodically. Risks are mainly classified into two type i.e. negative impact and positive impact risks.[5] Uniqueness and variability in some aspects of the projects may vary what the future (final) projects holds or look like. It is not sure that all the time the company should face negative impact risk as there are good ones too. Thus, company should generate a mitigate solutions for counter attacking the risk.[4] Some of the measures of counter attacking risk are as follows:

1.      Identification of Risk

2.      Risk Measurement

3.      Response to Risk

4.      Monitoring Risk

5.      Communicate

It is very hard to completely erase the risk however we can manage it properly. If the project faces no risk yet and is in control, study the project again and sudden you will be missing something again. The main target of the risk management is to know how to categorize the risk we face through. One of the main goals of risk management is to manage the risk and prevent them from destroying the project. Secondly, management of risk is to construct a safe and conservative design based on what company thinks a worst-case moment and try for the best. Thus, following are the risk that might halt the project:

3.1. Technical/Inventory Risk

Technical Risk involves various impact changes with development of system and whole infrastructure when deliverable does not work as expected. Such risk arises from various activities like engineering, design, manufacturing, various technological and test processes. Technical Risk is maximum when the project is built in wit complex system. Till the system is fully constructed and tested every parts of the software architecture might be a potential technical issue. Technical Risks are categorized as follows:

·         Technical Risk might not be simply solved (integrated).

·         Technology is latest (new) but hardly understand by the team member which might cause delay in project handover.

·         Technology might have issue on performance limitation that halts the project.

·         Technology is unqualified and fails to satisfy customer and project requirements.

Meanwhile in February, 2016 a brand company SAMSUNG selling various technology products like Smart Phones, Gears, Laptops etc. One of the recently launched SAMSUNG Galaxy Note 7 phones was exploding because of technology failure which is the perfect example of Technological Risk.

3.2. Market Risk

It is a probability for an investor to experience losses due to the reason that halt the overall performance of financial market where the company is involved. It is a risk to measure the project or a product we construct will fail in the marker position. Market Risk includes fall in Gross Domestic Product (GDP), varies in Interest rates, terrorist turbulence and sudden natural calamities.

Eradication of Market Risks is as follows:

·         Evaluate and measure type of Market Risk.

·         Develop a mitigating plan to manage the market risk along with the risk appetite.

·         Develop specifics processes, policies and organizational rules to support ongoing management of risk.

Overall potential loss generated by Market Risk is measured in number of method. One of the methods is to use Value at Risk (VaR).  VaR is a measurement of the investment that might particularly lose in specific market conditions.

3.3. Financial Risk

Financial Risk focuses of overall cash flow and profit on the project .Various huge companies with absolute and fine product are out of business league due to cash shortage to pay up the bills. Financial Risks includes financing terms, company loans, financial transactions and other monetary commitments. Shortage of the cash can be experienced if the receivable accounts are not collected adequately. Thus, company will be out of gas (money) till the profit is gained. Following are the measures to eradicate financial risk:

·         Familiarize with different types of financial risk i.e. Systematic or Non Systematic Risk.

·         Learn about assets classes.

·         Learn about asset based financial risk.

·         Set your particular financial goals and schedule.

·         Know the amount of risk you have to take on your shoulder.