Just finished the book “Subject to Change: Creating Products and Services in an Uncertain World” by the gents from Adaptive Path. Click here to get the book for under $10 on Amazon.com
The book revolves around creating products/services that are focused around the User Experience rather than the just the huge bulleted list of features. This is what sets a Good product apart from a Great product. This is very true as I mentioned in my previous blog (click here) the MP3 Player versus Apple iPod.
In the final chapters of the book it talks about Agile Development methods versus the Waterfall Development methods. In layman terms Agile is about not necessarily doing things in a specific order (example: having all aspects designed before moving over to development, but rather do a rapid prototype, get feedback, then do another iteration), whereas the Waterfall method is a bit more restricting (example: you do the full design, then full development at the end do a bit of customer feedback, then maybe incorporate that feedback in your next version).
Personally, I find that I tend to take the Waterfall (traditionalist) methodology when it comes to product development and project management cause I’m a Type-A person and I’m anal like that. To me is seems natural to finish up one stage before starting the next, but the guys over at Adaptive Path have made a very strong case by demonstrating how HP, Lockheed Martin, and many others use Agile Development methods to hit the moving mark of customer satisfaction and user experience.
Agile does make sense because of the flexibility and the users is constantly getting to see the next iteration, give feedback then the product development team can make a change and then cycle reiterates again and again.
Highly advise that any Product Manager or Project Manager pick up a copy of Subject to Change and consider the value of Agile Product Development methodologies.

