ORAPAPA Method

The ORAPAPA Method is a Tool that helps professionals make decisions by analyzing different Factors.

 

Its name is an acronym for the 7 Factors it proposes:

• Opportunities.
• Risks.
• Alternatives.
• Past Experience.
• Analysis.
• People.
• Alignment.

1. Opportunities: What Opportunities does the Company have?

• All the Options that could be explored.

 

2. Risks: What Risks does each of those Opportunities entail?

• Opportunity Costs, Investment needed, Product Cannibalization, etc.

 

3. Alternatives: What are the Final Alternatives that the Company has?

• And what can the Company do to reduce the existing Risks.

 

4. Past Experience: What has proven to work in Similar situations (in the past)?

• What is the company Good at?

 

5. Analysis: How feasible are the different Alternatives?

• Numerical and Objective Analysis.

 

6. People: Who would be involved?

• What are their Strengths, Weaknesses, etc.

 

7. Alignment: What would be the proper organization.

• And what Goals would be the most adequate.

ORAPAPA Method

 

The best way to understand the ORAPAPA Method and How you can use it is by sharing some examples with you:

Now, we’ll try to imagine which Decision-Making Processes followed 3 famous Companies when they Developed some of their most successful Products.

 

To do so, we’ll use, of course, the ORAPAPA Method.

 

Let’s begin:

 

Let’s imagine what Decision-Making process Apple might have followed to decide to launch a Smartwatch.

 

Surely they had different alternatives in mind … Why choose a watch?

 

Opportunities

Among many different products, Apple could develop:

• An Innovative Car (they are analyzing this option right now).
• A Drone.
• A Smartwatch.
• A Electric Scooter.
• New Headphones (they did it years later: Airpods and Airpods Max).

 

Risks

What Risks did these Products imply?

• Car: Very different from their products, High Investments needed.
• Drone: Very different from their products. Lots of competition.
• Smartwatch: People was not used to wear Smartwatches.
• Electric Scooter: Very different from their products. Little Added Value.
• Headphones: Lots of competition. Difficult to add value.

 

Alternatives

The Best options that the company had were:

• Smartwatch: Apple could afford to Push this new product with good Marketing campaigns.
• Headphones: Apple could use its Technology to develop the best Headphones.

 

Past Experience

In the Past, Apple changed the way we all use Mobile phones.

• They developed the best smartphone of its time.

In addition, they developed the ultimate mp3 device: The iPod.

 

Analysis

There were lots of high quality Headphones in the Market:

• Bose, Beats, etc.

The money Apple would have to invest in developing new and better Headphones was smaller than the amount of money they would need to buy one of those companies.

• Apple acquired Beats for $3 Billion in 2014.

 

However there was not much in the Smartwach Market.

• An this product would fit perfectly with their existing products.

They could “monopolize” this new emerging market if everything worked perfectly.

 

People

The key people involved in the development of this new product were:

• The Designers (for its appearance).
• New developers or suppliers of “sensors” (for the heart rate, pressure, etc).
• App designers (adapted for the smartwatch).
• Marketing Managers: What Kinds of Customers could Apple Target with this new product?

 

Alignment

Everything had to work perfectly between these departments.

• We guess, Apple set Defined, Time-related and Measurable Goals to Align them properly.

If they worked as a Team, they could develop the watch of the future.

 

Let’s imagine what Decision-Making process Microsoft might have followed to decide to launch the Xbox.

 

Microsoft was (and it is) a successful Software company… Why bother developing a Video Game console?

 

Opportunities

Among many possibilities, Microsoft could develop:

• A CD-Player (at that time, there were no mp3 players yet).
• A Mobile phone (smartphones had not yet been invented).
• A Video Game Console.

 

Risks

What Risks did these products imply?

• CD-Player: In 2000’s there was a lot of competition in the CD-Player Market.
• A Mobile phone: Nokia was the absolute leader in the Market.
• Video Game Console: Sony and Nintendo were kings of that market (Sega was falling).

 

Alternatives

• Mobile phone: Microsoft had enough money to challenge Nokia.
• Video Game Console: If there was a company that could challenge Sony and Nintendo, that was Microsoft.

CD-Players had (surely) a low margin so, why bother investing in something that offers a very low margin?

 

Past Experience

Microsoft had experience in Software and Hardware.

• Its software was used to run video games on all computers.

Also, Microsoft had already experience in developing Video Games (Age of Empires was a total success).

 

Analysis

Building a Video Game Console was similar to building a PC.

Microsoft had:

• A lot of experience in Computer systems.
• A lot of relationship with software and Game developers.
• Past experience in developing Games.

Developing a Video-Game Console was an “easy step” to take.

 

People

The key people involved in the development of this new product were:

• Hardware Engineers.
• Software Compatibility Engineers.
• Game Developers.
• The Marketing Team.

 

Alignment

Microsoft had to develop a system for which it was Easy to Develop games.

• Otherwise, game developers might have problems adapting their games to Xbox.

 

This is key to developing a successful Video Game Console.

• It’s not just “power“, but how easy it is to develop a game for it.

 

Surely, Microsoft created a work team made up of Hardware, Software and Games Developers.

• And set common goals.

 

Finally, we’ll try to guess what Decision-Making process Samsung might have followed to decide to launch its Smartphone.

 

Why did they decide to focus on Smartphones?

 

Opportunities

There was a time when Samsung might have thought of developing:

• A Video Game Console.
• A Smartwatch.
• A Smartphone.

 

Risks

What Risks did these products imply?

• Video Game Console: There was a fierce competition between 3 powerful companies.
• A Smartwatch: The technology was not yet ready to offer a decent product.
• A Mobile phone: Apple’s iPhone was the King of Smartphones.

 

Alternatives

The only two realistic possibilities were:

• An innovative Smartwatch: Samsung could use their technology to start developing it.
• A Smartphone: At that time, the Smartphone Market was emerging.

Introducing a new Video Game Console without any experience in Video Games would be a suicidal mission.

 

Past Experience

Samsung was the company that developed the iPhone’s touch screen.

• Also, Samsung had developed Mobile phones in the Past.

 

Analysis

Why was Apple’s iPhone so successful?

• Because of its revolutionary touch screen.

 

Samsung could use that technology to create a new mobile phone and challenge the iPhone.

• Remember: Samsung was Apple’s supplier for the touch screen.

 

Developing a Smartphone was the logical move.

 

People

The key people involved in the development of this new product were:

• The Hardware Team.
• The Software – Operating system Team.
• The Design Team.
• The “Purchasing“ Team.

 

Many of the necessary components had to be purchased from outside companies.

• The “Purchasing” Team had a very important task.

 

Alignment

Samsung had to bring all those professionals together and develop different prototypes.

 

We do not know how long it took to develop the entire project, but:

• We’re sure that they set hundreds of Time-Related Goals in order to achieve perfection.