Item Design Patterns

Item Design Patterns
Most emerging or advanced technology hardware devices rely upon the IOS + features therefore the automatic defaults to no recognition until the software components are delivered.

• Hardware device - when the device sold has been structured in a transaction with another add on feature. 
• Exceptions; a case where the hardware and software have different shipment schedules.
• Assume the device isn't valued alone and requires the software in this scenario their is no value for recognition of revenue the answer is "no". 

Adjustments System Allocations

Adjustments or System Allocations

• When the identifier derives the specifics of the item, you are not using your system relationships as designed.
• When the identifier derives the logic you force your suppliers to enter new product identifiers in their systems to create a purchase order with you.  
• If the customer simply wants to renew the software they purchased from you the year before, they don't understand the logic behind creating a new product identifier.
• The decision in your system; shouldn't cause the customer to enter new items in their systems.  
• Update the value in the item template to apply the new version value in reference to new transactions.   
• When the transaction references the item in the form of an offer, you have the systemic application of cost to the appropriate revenue transaction.   

Item Templates

Item Templates
Some people refer to these as the product family setup features. If not careful-you might end up with many items you never use. 

The process impacts are huge.  The ability to work with your suppliers; higher threats of abuse based on the obvious maturity in your business processes. 


Purpose of item templates in Real World stakeholders views
To enable item logic re-use and generic standards to meet the criteria of classification systems consistently.

Using Quantified Measurement Systems

• In volume driven organizations you will see the item described in the item identifier name or Product ID
• Think for a moment about the way you have a dollar bill
• If every-time you put the dollar in your pocket you were unable to see it except in a handful of pennies.  Every time you wanted a dollar from your pocket book or wallet a hundred pennies would be the reality for you.  
• As a result the many steps and touches become higher threats for defects.  
• Measuring and using a percentage has simply taken the dollar and broken it into 100 times the threat.  
• You had a single defect in a way you could address
• You know have a hundred that say your okay and no one will address because it's far too complex. 
• Think of the way more impacts any person in this analogy
• You have to place each penny into a piggy bank; many times I drop a few.
• You have to count each penny individually; I often get distracted and have to restart again.  
• If every penny was to be placed into 100 banks; you would have the same problem with higher effort.  
• Often people use this approach without revealing that they could have had a single defect without 100 movements into many piggy banks.  
• Many people think this approach makes sense. 

 Qualified measurement systems

• Design with the abstraction of design patterns; before performing root cause to understand the norms try not to assume that the experts have the ability to see beyond their own work flows
• Especially if they are on the receiving end of the penny scenario.  
• Understand the object design patterns; 
• Think of a pivot table; large amounts of data can become larger simply by placing data in a certain position.
• Use the pivot table to reduce the many into common patterns.
• The template isn't changing the value in the field of the template change.
• What patterns exist in technology offers?
• Apply high, medium, and low indicators to assign your external risk reporting assignment in the template of your items.  
• Try one per class based on your SEC reporting.  
• One for cost and one for revenue. 
• High
• New-High
• aka New Business Models
• aka Competitive Advantage
• aka Higher Resource Skills
• aka Higher risk
• aka not fitting in your current system
• aka intellectual property 
• aka high controls
• aka higher touches fewer outside the norm
• Medium 
• Advanced - Medium
• aka mature in market with increasing value
• aka harder to ship complete
• aka higher cost
• aka begins to shift to channels in program or a single offer special training.
• Low 
• Core/Foundation - Low

 In closing let's see how this template applied to our items in an offer translates into our highway analogy.  

• High - Slow lane on the highway
• Medium - Middle lane on the highway
• Low-fast lane or commuter lane with partners

Any organization anywhere in the world.