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PrinciplesOfProductDevelopmentFlow.EconomicView

PrinciplesOfProductDevelopmentFlow.EconomicView

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E1: The Principle of Quantified Overall Economics

Select actions based on quantified overall economic impact

E2: The Principle of Interconnected Variables

We can’t just change one thing.

E3: The Principle of Quantified Cost of Delay

If you only quantify one thing, quantify the cost of delay

E4: The Principle of Economic Value-Added

The value added by an activity is the change in the economic value of the work product

E5: The Inactivity Principle

Watch the work product, not the worker

E6: The U-Curve Principle

Important trade-offs are likely to have U-curve optimizations

E7: The Imperfection Principle

Even imperfect answers improve decision making

E8: The Principle of Small Decisions

Influence the many small decision

E9: The Principle of Continuous Economic Trade-offs

Economic choices must be made continuously

E10: The First Perishability Principle

Many economic choices are more valuable when made quickly

E11: The Subdivision Principle

Inside every bad choice lies a good choice

E12: The Principle of Early Harvesting

Create systems to harvest the early cheap opportunities

E13: The First Decision Rule Principle

Use decision rules to decentralize economic control

E14: The First Market Principle

Ensure decision makers feel both cost and benefit

E15: The Principle of Optimum Decision Timing

Every decision has its optimum economic timing

E16: The Principle of Marginal Economics

Always compare marginal cost and marginal value

E17: The Sunk Cost Principle

Do not consider money already spent

E18: The Principle of Buying Information

The value of information is its expected economic value

E19: The Insurance Principle

Don’t pay more for insurance than the expected loss

E20: The Newsboy Principle

High probability of failure does not equal bad economics

E21: The Show Me the Money Principle

To influence financial decisions, speak the language of money

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