the tourism product development process

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Phases of Tourism Product Development

The creation of a tourism product is a complex process. The following table shows the steps of creating tourism product −

The product creation process starts with primary inputs such as resources, raw materials, other materials for construction, energy, and fuel. This could also include the agricultural products required to prepare food for the tourists.

The primary inputs are then processed further through manufacturing or construction into intermediate (or processed) inputs . The intermediate inputs are nothing but the tourism facilities such as gardens, parks, museums, art galleries, shopping centers, convention centers, accommodations, restaurants, and gift or souvenir shops. They facilitate and support the tourism.

The intermediate inputs are further refined through expert management, workforce, and technical services, and packaging into intermediate outputs . The intermediate outputs are nothing but the services associated with tourism industry.

For example, the intermediate input such as a hotel room remains just as a commodity unless it is occupied by the tourist and turns into a part of a tourism product by incorporating the occupant’s experience. Similarly, the food at restaurants needs to be cooked and presented by the staff at any restaurant and needs to be ordered and consumed by the tourists.

The final outputs are nothing but the personal experience the tourist takes from availing services and by carrying out various tourism-related activities. The tourists utilize the intermediate outputs (or services) to generate intangible but a high value experience such as satisfaction, recreation, and completion of a business related task or maintaining a contact of friends or relatives.

Steps of Tourism Product Development

The following general steps are taken for tourism product development −

Research the Market

At this step, the tourism marketing force conducts research on the current market to identify the opportunities. In includes economy, study of various market segments and their varied requirements, past market data, and current market and tourism trends.

Match the Product with Market

By assessing the market segments and conditions for tourism, different packages are created for various market segments such that they can satisfy the requirement of each segment of individuals.

Assess the Destination

Since destinations form the basis of product development, the product development force visits the prospective tourism destination to assess its tourism potential and its ability to accommodate and serve the tourists, features of the destination, and its shortcomings. It is assessed to judge if the destination is fulfilling the requirement of Accommodation, Attractions, Activities, or Amenities. It is also checked for the ease of Accessibility.

Understand the Stakeholder Role

Tourism product development is the result of collaborative efforts of various stakeholders. It involves identifying all the stakeholders in private and public sectors, DMOs, Tourism and allied businesses, and their respective roles in creating or developing a part of a tourism product. The stakeholder meetings are conducted for creating a project plan. The project goals are set to realize long-term vision, medium-term action plans, and short-term progress assessments.

Product Building

At this step, the product is actually built using required resources and consultations of the expertise to create intermediate inputs (facilities and amenities) and intermediate outputs (services). It encompasses not only development of destination infrastructure but also support for special activities and experiences.

Marketing & Promotion

The functional and emotional benefits of the tourism at the tourist destination are communicated to the market. The marketing people create brochures, place advertisements on the business portals, and contact media to promote the destination and the product on the television and radio. They also use various other marketing techniques to increase the product visibility.

Providing Human and Technical Resource

It includes providing skilled staff and contemporary technology to cater the needs of tourists efficiently, to handle all tourism related operations at the destination effectively, and to communicate with the staff easily.

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As defined by UN Tourism, a Tourism Product is "a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle".

Rural tourism

UN Tourism understands Rural Tourism as "a type of tourism activity in which the visitor’s experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing.

Gastronomy and Wine Tourism

As global tourism is on the rise and competition between destinations increases, unique local and regional intangible cultural heritage become increasingly the discerning factor for the attraction of tourists.

Mountain Tourism

Mountain Tourism  is a type of "tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities".

Urban Tourism

According to UN Tourism, Urban Tourism is "a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business".

Sports Tourism

Tourism and sports are interrelated and complementary. Sports – as a professional, amateur or leisure activity – involves a considerable amount of traveling to play and compete in different destinations and countries. Major sporting events, such as the Olympic Games, football and rugby championships have become powerful tourism attractions in themselves – making a very positive contribution to the tourism image of the host destination.

Shopping Tourism

Shopping Tourism is becoming an increasingly relevant component of the tourism value chain. Shopping has converted into a determinant factor affecting destination choice, an important component of the overall travel experience and, in some cases the prime travel motivation.

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Tourism product development.

At one extreme, tourism product development can be defined as embracing all elements with which the visitor to a destination comes into contact. This includes infrastructure (e.g., transport, utilities), the service personnel, places of lodging, attractions, activities, facilities, and amenities.

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At a more focused level, tourism product development can be defined as comprising only those attractions, activities, and facilities provided explicitly for the visitor.

The tourism product development is the process by which the resources of a destination are shaped to meet international and domestic customers’ requirements. This covers everything from humanmade facilities or attractions to activities requiring varying levels of physical input and organized events such as festivals and conferences.

Development

Full range of design and engineering, procurement, construction, operation and maintenance, and project management services for hotels, airports, marinas, retail, service apartments, commercial spaces and all kinds of facilities for tourism and hospitality sectors.

Consultancy

As the leading international tourism development and investment brand WTFI has been providing consultancy services on tourism development for policy makers for over 10 years

Innovations, Experiences and Services

Creating a well planned tourism product is vital for better positioning and visibility in global tourism tourism market. It brings innovations, experiences and services to the market for tourists to charmed.

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Handbook on Tourism Product Development

Publication date: Oct 2011

Language: English

Tourism products are the basis for a destinations tourism sector operation: unless the tourism product meets the needs and expectations of tourists, the destination cannot realise its full potential. However, only few destinations focus their attention on the development and delivery of the various attractions and activities that make up the tourism product.

The UNWTO/ETC Handbook on Tourism Product Development outlines the essential elements in the process of tourism product development planning and implementation, e.g. coordination, consultation, collaboration co-opetition. It illustrates these principles through a range of successful approaches and case studies from around the world and sets out best practice examples and benchmarks by which destinations can assess their own product development system and methods.

Executive Summary

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How to get started developing your tourism product

Whether you are offering guided tours, boat rentals, accommodation or provide river cruises, you are offering services to your customers. For today’s tourists, just a service is not enough. They seek experiences, often even experiences that contribute to their quality of life. This document offers you guidelines to identify your customers’ needs and to develop innovative products, services or experiences that really matter to them.

Contents of this page

• Why develop your product with this method?
• This is what you need before you start
• Get inspired by your (potential) customer (Step 1)
• Make a persona for each type of customer (Step 2)
• Identify the core needs of the customers and the key opportunity areas for your business (Step 3)
• Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)
• Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)
• Test your prototypes in practice (Step 6)

1. Why develop your product with this method?

The needs of tourists from Europe have evolved over the past few decades. Current tourists are looking for quality service and experiences that really matter to them. To offer quality and experiences that matter to your customers, you need to know them very well, personally. What quality means for some may be different from what it means to others. And an experience that is life-changing for some, may be dull to others. This report teaches you how to get in touch with your customers, how to learn what they really need to boost their quality of life, and how you can design products, services or experiences that really matter. The nice thing is that if you succeed, your customers will share their experiences with their friends and followers, also on social media. In other words: they will promote your product to others. For free!

The current coronavirus crisis has put international travel under pressure . In many countries, tourist arrivals have nearly dropped to zero. It is likely that international tourism will be affected by the COVID-19 crisis for the next couple of years. Several scenarios are possible. The frequent holidays made by Europeans to faraway destinations may decrease and this may turn into less frequent and longer holidays closer to home. The battle for tourist visits may become fiercer. The attention for sustainability may also increase. Europeans might be willing to travel longer distances, but only for a very good reason. To tempt potential tourists from Europe to come to your country, your region or your business, you need to stand out, to understand the traveller well and be super-innovative – more than ever. Amazing stories and experiences may become even more important. As will issues of safety, security and assisting tourists in returning to their home countries.

• Read more on this in our study on how to respond to COVID-19 . This study offers insight into actions you should take immediately, while also providing guidance on long-term decisions.   

The method described in this report is based on the principles of design thinking. It has been employed internationally in all kinds of businesses. To mention a few examples in tourism:

• Destinations like the Bahamas (an example is the One-Stop Online Booking and Immigration Card ).
• Design for All , also referred to as ‘universal design’, to allow access for people with disabilities. You can read more about this in this thesis .  
• Hotels. For example Hyatt Hotels has developed various prototype hotels around the world, which are free from regulation. Another example is The next-generation hotel experience , getting the details right to improve travellers’ stays, and designing a modern work experience for business travellers .
• Visitor attractions, like improving the tourist experience of the Polar Bear Society , a visitor attraction in Norway, or bringing Tourists to a hidden coastal gem .
• Travel and transport. Examples are pioneering a car-sharing service and developing a customer strategy for public transport in Oslo.
• Restaurants, like creating a fresh and modern take on the Indian culinary experience .
• Organisation and development. An example is turning a historic music college into a collaborative learning platform .
• Tourism-related services. An example is the mobile visitor centre in Saint Paul, Minnesota. Another example is to ‘design of waste out of the food system’, taking place in a collaboration between hotels, food banks, foundations, and entrepreneurs to fight food waste .  

2. This is what you need before you start

The procedure described below is not difficult. To follow the steps, it helps to have a few basic tools – but only if you already have them) – since it is the idea of how you are doing this that is important .

• Lots of sticky notes (Post-its)
• Sheets of flipchart paper

In product development, we try to find a match between the needs of the European market and any of your local situation and business resources that might entail certain limitations. The following tips are related to this.

• Where possible, engage your customers to build a personal relationship and to get to know them well.
• If you find it difficult to engage with customers from a different culture or find it difficult to understand them, try to work with local partners who can serve as intermediaries (such as tour operators in source countries) with the guests or act as interpreter.
• Involve others working in your business or in other businesses in the community where you live, people working in education, or other people with an open and positive mind. This will make it more fun and rewarding. It will also contribute to the quality of the work.
• To work through the process described below, you may want to ask support from a local CBI coach and or an intern from a university abroad, for example via SAVE tourism .

Below, the steps are described to help you to develop innovative products and services for new and existing customers. Staying tuned with the market is an ongoing process. The outcomes of each step are illustrated in Figure 1.

3. Get inspired by your (potential) customer (Step 1)

You can only create meaningful products, services and experiences for your customers if you truly understand them. So try to understand the situations and experiences that are or might be meaningful to them. If you do not have any customers yet, or are looking for new customers, you need to get your inspiration from existing market intelligence (step 1a). If you already have customers, you can use these customers as a source of inspiration (step 1b).

a. Get inspired by potential customers

The largest share of potential customers doesn’t know you or your product offering, or perhaps even the destination. So you have to draw their attention by offering products and services that matter. What do you need to do to make a start?

• Get access to market intelligence reports of the European market. Subscribe to free newsletters or blogs of market intelligence institutions, such as UNWTO , WTTC , Global Sustainable Tourism Council or IATA . Read the annual UNWTO publications , such as Tourism Highlights and World Tourism Barometer .
• Review and read the market intelligence information provided by CBI . This webpage gives access to a CBI trend report and promising market segments and target groups on the European market.
• These sources will help you to identify important (emerging) trends and markets in Europe on a regular basis.
• Try to identify a few target groups or niches that may feel attracted to your business.

b. Get inspired by existing customers

When customers make use of your service business they could also inspire you to make new products. This means that you would need to involve them in the development process. Do not ask them what they want (as they may not know) with a questionnaire, but try to get an idea of the needs they have in a different way.

There are three nice alternative methods you could use, although there are other methods available as well, such as the ones in Ideo’s free Human Centered Design Toolkit . The first time you do so, it might make you feel uneasy to approach a customer. However, always remember that communication with them is key in developing a better product or service.

• It is your duty as an entrepreneur to look after your customers. So you can see it as part of your job to observe your customers during different phases of their customer journey and to learn to understand this customer journey through their eyes. Such observation should be done discreetly and quietly, so as not to disturb or annoy them while enjoying their holiday or business trip. It gives you insights into what they think, what they do, how they interact with others, and what they dream and wish for. While you observe your customers, you can also make notes. Afterwards, you need to find a moment that suits your customer to share your observations in an informal setting, and ask questions about things you did not expect, did not understand, or what they found appropriate. Again, make notes!
• You may also ask your customers whether they would like to help you with improving your services. Ask your customers to take photographs . You could also ask your customers to document their customer journey with a camera and to take pictures of what they consider appropriate products or services. When they give you the pictures, ask them whether there is a suitable moment for them to share some thoughts about these. When you discuss them, do not forget to make notes. Do not insist if a person does not want to cooperate, but try others instead.
• The third approach also requires asking your customers for help in making your services more appealing to them. Ask your customers whether they are willing to take a number of ‘memory cards’ along with them while using your product or service. These cards have to be printed by you beforehand in a kind of postcard format (such as in Figure 2). Ask your customers to fill in a card each time they experience something they did not expect, or which they find very positive or negative. Ask them to return the cards to you by the end of each day or when they leave. If they are open to doing so, ask them whether they have time to share their thoughts with you. If so, be sure you make notes.
• Download and make use of the print version of the ‘memory card as shown in Figure 2.

A useful way to describe an individual customer is by using a puppet template. A puppet template is a simple picture of a single customer surrounded by clouds, words bubbles and icons, such as illustrated in Figure 3. Ideally you would make a puppet template together with a customer. This shows that you are open and willing to build a personal relationship with them. A good moment is when you have the chat about the observations, the photographs that they took, or the memory cards that they filled in. During this conversation you could also talk about the person’s age, where they come from, their work, what they do in their daily life, their main interests in life, their worries, their wishes and dreams, or their preferences in tourism. This generates a lot of relevant background information. Take notes! Each customer you talk with gets a separate puppet template.

You will end up with a number of puppet templates. Review the puppet templates and take a closer look at each one. What do you see? You will probably discover that some of the templates are similar to one another. This means that you have already started to understand your customers a little better! Now, group together the puppet templates that show similarities. Each group represents a type of tourist that makes use of your business .

• Involve people in your business or community to assist you with understanding the language or the culture of the customer.
• They may help you with making puppet templates and with grouping the templates into types of tourists.
• Download and use of the print version of the puppet template shown in Figure 3.

4. Make a persona for each type of customer (Step 2)

In the previous step, you grouped the puppet templates with similarities together. Each group represents a type of tourist who could be attracted to your business. Now the challenge is to turn each type of tourist into a market description. You will do this in the form of a so-called persona: one persona for each type of tourist. You might end up with 4-8 personas. You may need to go back to the market intelligence and the puppet templates in step 1 for detailed information. A persona describes each tourist profile, point for point. It would be nice to add a quote on each persona to bring them to life.

A persona includes:

• List of ages & countries or origin
• List of work and ambitions
• Details about personal lives
• List of main interests
• List of wishes, preferences and dreams
• You may want to add photographs (for example from magazines) and quotes that characterise the type of customer
• Key locations they went to
• Alone? Or with whom?
• What did they like and what not?
• Which emotions did they show?
• Key issues, needs, dilemma’s

Most organisations have their own template. The Interacting Design Foundation explains the use of personas in a video . In the figures below, you will find a few examples with different levels of detail and a different style. You can put each persona on a different flipchart sheet.

5. Identify the core needs of the customers and the key opportunity areas for your business (Step 3)

Now you need to identify the most prominent needs, hurdles, issues or disappointments of each type of customer (persona).

• What would be remarkable events and experiences for that persona? What were remarkable events and experiences for that persona?
• What would be stunning likes for that persona? What were stunning likes for that persona?
• What would be striking issues, hurdles, disappointments, wishes or needs for that persona? What were striking issues, hurdles, disappointments, wishes or needs for that persona?
• You may need to go back to the market intelligence and puppet templates in step 1 for possible answers.
• Write each possible answer on a separate sticky note no matter from which persona. Try to get at least 25 sticky notes in total. More would be even better.
• When you are finished, group the Post-its together into areas of which you think they could have a positive impact on your customers’ experiences. Label each grouping of Post-its with a short telegram-style sentence that identifies the impact area . You could write these labels on a Post-it. A label could be, for example: “customers need more personal attention during the excursion”, “customers like to enjoy local cuisine”, or “customers need to be able to connect online”.
• Finally, turn each label into a positive opportunity for your business, also known as an opportunity area , and write it on another Post-it that you put at the top of the label. The header could be for example: “much personal attention during excursion”, “provide local cuisine to the customer”, “adequate Wi-Fi network”.
• Try to do this step with your team or with people from the community.

Now you have created opportunity areas for your business! It would be great if you were able to end up with anywhere between two to five such opportunity areas.

6. Develop a multitude of ideas for solutions, or new products, services or experiences (Step 4)

During the previous steps you started with collecting a lot of information that, step by step, you worked into just a few opportunity areas for your business. Now we will try to generate ideas for new products, services or experiences that matter to your customers for each opportunity area. Ideally, you should take this step together with colleagues in your business (not just senior staff!). If you think it is outside the range of your core business, you may also want to involve other businesses in your community.

For a long-term benefit, you first need lots of ideas to get a single good one. This one idea should be innovative and really different from the others. It might be a completely new solution to a problem customers did not even know they had. Do not be satisfied with an obvious solution!

How does it work?

Brainstorm for each opportunity area

Write out each idea on separate Post-its

Sort and group/cluster the ideas that you wrote down

• Brainstorm for each opportunity area that you created in the previous step. Come up with as many ideas as possible. Try to think of weird solutions, products, services or experiences. Never worry whether ideas are right, wrong, absurd or obvious. That hampers your creative flow of thoughts. If you do it with your team you might end up with dozens of ideas.
• Write each idea on a separate Post-it . If it helps you to understand it better, you can make a drawing of what you have in mind.
• Next, sort and group the ideas that you wrote down . Put the bad ideas to the side. Group the ideas that go well together into clusters. Give each cluster a label that tells you what the overarching idea is that the cluster is about. Brainstorming for the opportunity area “provide local cuisine to the customer” could lead to the following labels (Figure 5): start our own restaurant; authentic design of the restaurant; involve local farmers; kitchen staff recruitment and training programme; sustainable waste treatment.
• If you take a closer look at the clusters with the labels, you might get ideas about more details. You can write these down on additional Post-its. For example, once you have made a cluster with the label ‘waste treatment’, you may add other ideas: the name of a certification programme you would like to comply with; how you want to adhere to the certification programme; aspects of how you organise the waste flow in the restaurant and kitchen; communication of the certification with the customers, etc. So the labels give you inspiration to add to the clusters to make these more specific.

You will end up with a shortlist of your best ideas for solutions: new products, new services or new experiences. It is a good idea to show the ideas to some of your customers for feedback. In the case of Figure 6, you would end up with the following products and services: authentically designed restaurant (product); strengthened involvement with the community (service and products); collaboration with regional/national educational institutions to train qualified kitchen staff to be skilled at cooking, but to also always pay attention to hygiene rules; a certified waste treatment service.

7. Turn your best ideas into prototypes that can be tested and improved step by step (Step 5)

Now is the time to create a first design for the ideas for new products or services that you have created. We call this a prototype . If you make such a detailed design, this will help you to understand your idea better, but also to determine whether you have the resources to implement it, and whether there are any unforeseen challenges or consequences. These things are important for long-term success.

• Select the ideas that could upgrade one of your business’s current products or services or be integrated with such a product or service. These ideas will probably be the easiest to develop because they fit best with your everyday work.
• For each of the products or services that you selected, make a detailed description of how you want it to be designed. We call this a prototype of your product or service.

How do you make a prototype?

• Take a large piece of paper, such as a flipchart sheet, for each of your innovative ideas.
• Draw a cross on each sheet in order to divide it into four quarters. Each quarter is dedicated to one building block of your product or service idea, as illustrated in Figure 5.
• Describe and visualise what each building block would look like according to you. Put your description into a few sentences. Also use a few sketches, drawings and/or cartoons. You can use simple shapes, because the quality of the sketch is not so important at this stage.

• Start with the name.
• Write down the persona(s) who would feel attracted to the product because it matches their needs. You need to go back to the steps you completed earlier.
• Write down an appealing story about your new product or service that can be communicated with the European market. If you have a website, you can put the name and story of your new product/service there.

Each sheet that you have finished is a prototype of the ideas that you have created for innovations for your business. These are ready to be tested, like the prototype of a new car or airplane that is tested in a wind tunnel.

Never worry that your prototype is incomplete or indistinguishable from the final product that you have in mind. This will be dealt with later in the process.

8. Test your prototypes in practice (Step 6)

The final step is to put your innovative idea into practice and offer it to your customers as you have described and visualised it in your prototype. It is a process of learning by doing. You get feedback from your customers on what worked and what did not. Based on this feedback, you then create a new and improved version of your product, service or experience. Then you once again get feedback and make more improvements. In this way, your product or service will improve step by step.

• Do not expect immediate success but accept that you can make mistakes now that otherwise would cost you a lot of money later on.
• See it as a learning process. Be open to the feedback and do not defend your prototype if the users are less positive than you expected. Try to get as much feedback and suggestions for improvement as possible.
• Try to put some speed and efficiency in this phase. This will help you with moving quickly from prototype to putting it to the test, to gathering feedback, and then to making a better version of your product or service.
• Never forget that new trends and new markets will arise. This means that your customer and the needs of your customers may change over the years. This is why you need to restart at step 1 every few years to stay tuned to the needs of the market.

This study was carried out on behalf of CBI by   Molgo  and  ETFI .

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Tourism Product Development in China, Asian and European Countries

• Yuhua Luo 0 ,
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University of the Balearic Islands, Palma de Mallorca, Spain

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South China University of Technology, Guangzhou, China

Is one of the very few recent books that focuses on the development and improvement of tourism products

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ISBN : 978-1-80382-022-4 , eISBN : 978-1-80382-021-7

Publication date: 16 August 2023

Tourism product designing is a process of integrating all the components of a tourism product, i.e., the 5 A's: Attraction, Accommodation, Accessibility, Amenities, and Activities. The lack of awareness and unaccountability of mass tourism has demanded the need for “Responsible and Accountable Tourism, calling for better places to live and visit.” However, due to the COVID-19 pandemic restrictions on mass travel, “Mother Earth” got the opportunity of environmental restoration. The tourism business was badly hit by the pandemic and created an introspection phase for the tourism stakeholders to control and check their activities for a better global recovery. The responsible tourism product development in this VUCA (volatile, uncertain, complex, ambiguous) world needs controlled planning and a duty-bound PPP (Public–Private Partnership) model. A scoping review was done to analyze the planning process of the responsible sustainable tourism product. It was observed that all the stakeholders involved in tourism product development need to understand their accountability. Local host communities and tourists visiting the destinations should be culturally and environmentally sensitive. They should be involved in decision-making during the tourism product development and be pride bearers. The responsibility of the various tourism agencies, organizations, and individuals toward minimizing the impact of carbon footprints is evident from various research.

• Product planning
• Product design
• Sustainability framework
• Tourist responsibility
• Tourist behavior
• Stakeholders

Jamgade, S. and Mondal, P. (2023), "Responsible Sustainable Tourism Product Planning and Design for Recovery", Kumar, J. , Bayram, G.E. and Sharma, A. (Ed.) Resilient and Sustainable Destinations After Disaster ( Tourism Security-Safety and Post Conflict Destinations ), Emerald Publishing Limited, Leeds, pp. 179-193. https://doi.org/10.1108/978-1-80382-021-720231013

Emerald Publishing Limited

Copyright © 2023 Sweety Jamgade and Puja Mondal. Published under exclusive licence by Emerald Publishing Limited

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Prioritization Methods and Techniques – Part 2: MoSCoW Method

In my previous article, Prioritization Methods and Techniques - Part 1: Why Prioritize and the Kano Model , I talked about the need to prioritize and the Kano model as a prioritization method. In this second article in the series on prioritization methods and techniques, I will discuss the MoSCoW method.

The MoSCoW method is a highly widespread prioritization method which was popularized by Dynamic Systems Development Method (DSDM). The term MoSCoW has nothing to do with the capital of Russia. It is an acronym derived from the first letter of each of four prioritization categories – Must have, Should have, Could have and Won’t have.[1] The two “O” are added to make the word pronounceable.

Must have: This category contains requirements or features that are absolutely mandatory. Those are fundamental to the system (being a product or a service). If any of them are neglected, the system will certainly not work or will have no value for the customer.

Should have: These features are important, ideally, we should have them for the system to work correctly. If they are not there, a workaround may be possible, but it can be costly or cumbersome. Yet, they are not mandatory and therefore do not have the highest priority. Simply put, they don’t have much impact on delivery success right now, though they must be implemented soon enough (after the “must-haves”).

Could have: These are useful additions (often small-scale improvements) that add tangible value. These are “nice-to-have” requests. In general, they do not take considerable resources, but they are not essential to implement either. Their absence won’t affect almost anything, or at least wouldn’t impact the release negatively.

Won’t have (sometimes also known as “would like to have, but not this time”): These items are not worth the investment (of time, money, energy) and are unlikely to make the cut (at least not in the near future). These requirements are of the lowest importance and can be easily omitted (definitely considered out of scope for the first release) or rescheduled for future releases.

When prioritizing requirements in a project, DSDM recommends no more than 60% effort for “must-haves” requirements and a sensible pool of “could-haves”, usually around 20% effort (see Figure 1 below). Anything that is higher than 60% effort for the “must-haves” poses a risk to the success and predictability of the project, unless the environment and the used technology are well understood, there are minimal external risks/dependencies and the team is experienced and well established. Note that we are talking about a balance based on estimated effort of requirements (i.e. the expected time it takes to implement the prioritized features) and not total number of requirements. When calculating effort for a specific timeframe (e.g. first release), “won’t haves” are excluded, as they are considered out of scope for this timeframe.[2]

Figure 1: Balancing priorities using the MoSCoW prioritization technique (recommendation by DSDM[2])

Practical example

Let’s take a simple practical example. How can you categorize the features required to manufacture a child’s bicycle?

Must have: two wheels ; a frame

Should have: brakes for safe stopping; pedals; ability to adjust the saddle to accommodate growth; safety cover for the chain; stabilizers or the ability to fit them when needed (the last two features can also be classified as “could-haves” depending how essential they are for the child/parents)

Could have: bell or horn to alert others in proximity; attractive color of the bike; front suspension; Presta valves for inflating tires

Won’t have: valve caps to cover the tires valve; Bluetooth bike speaker

Even though it may seem strange not to have the pedals and the brakes in the “must have” category, in reality they are not mandatory for a child’s bike. By definition a bike is two-wheeled transportation device, so it must certainly have two wheels and a frame to link the wheels together, but everything else is subject to discussion and negotiation. For example, small kids can learn to ride a bike by simply using their feet, so no pedals and brakes are really needed. This simple example also shows that there is often a disconnect between expectations and requirements. People often have high level of expectations, but high expectations are different from must-have requirements which are mandatory and non-negotiable.

Let’s now look at the advantages and disadvantages of the MoSCoW method.

Pros of MoSCoW

• Simplicity. The MoSCoW method is one of the simplest prioritization techniques. It does not require searching for detailed data or making complicated calculations. So, it is easy to master and use because it is based on simple principles. Using this prioritization scheme in a product management context promotes mutual understanding between product people (product managers and product owners) and stakeholders. It is also a great method to resolve conflicts and to bring stakeholders to consensus. Prioritizing work using MoSCoW is fast and transparent.
• Agility for flexible scheduling and implementation. Since this prioritization method has no strict time limits for the implementation, except for the “must-have” category (items there should always go first and be implemented as soon as possible), it allows for flexible implementation timeframes per feature. Therefore, a team can easily adjust feature deliveries or releases on favorable terms based on agreement with customers/stakeholders.

Cons of MoSCoW

The MoSCoW technique is very simple, but such simplicity comes with some pitfalls.

• The technique lacks a clear consistency of implementation and lacks specific planning per feature. Even though priorities can be easily and quickly set, the MoSCoW method prioritizes the backlog items in four categories (in a similar fashion to the Kano model, covered in my previous article, which also prioritizes features in different categories), so it does not introduce any sequencing of features/backlog items and lacks specific planning. This makes it quite challenging for product people to decide on the exact priority of a feature compared to another one within the same category. At the end of the day, this drawback might put the entire release at risk.
• MoSCoW classification rules can be subjective and this creates imbalance between the absolutely required (must have or mandatory) and slightly desirable. Often, the blurred lines between categories make it hard to decide in which category a feature should go into, specifically when we talk about “must-have” and “should-have” lists. But it is sometimes also the case between “should-haves” and could-haves”. This happens due to the subjectivity of requirements. Therefore, features or stories allocated to the different categories should be approached with great thought and care and the chosen categorization should be agreed with (or well explained to) all stakeholders.

When to use the MoSCoW method

The MoSCoW method is probably the simplest and most widespread prioritization scheme for new product development, and more specifically for small products. But as we saw above, this technique also has its disadvantages and is not always effective. For instance, if you have a complicated backlog with many time-sensitive releases, consider choosing other prioritization method or complementing MoSCoW with another more accurate or comprehensive technique.

On the other hand, it is quite reasonable to use MoSCoW when prioritizing work for small (and not too complex) products, which does not have many technical limitations. The MoSCoW requirements help product people and teams take a strategic, orderly approach to prioritization. This method is great for avoiding wasted time, arguments and misdirection.

In my next article I will talk about the Eisenhower matrix. Meanwhile, if you want to know more about prioritizing using the MoSCoW method, please feel free to contact me.

About this article or just curious about working at BlinkLane? Contact Martin or take a look at our open vacancy .

References:

[1] Griffiths, M. (2012). PMI-ACP Exam Prep (2nd ed.). RMC Publications Inc.

[2] Agile Business Consoritum (n.d.). Chapter 10: MoSCoW Prioritisation. Retrieved from https://www.agilebusiness.org/page/ProjectFramework_10_MoSCoWPrioritisation

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The Evolutionary Development Phase

This is one of the six phases in the DSDM ® Process , which can be configured in different ways to create various types of lifecycle for the project.

This phase is where we develop the product iteratively and create increments of it. (See the build incrementally from firm foundations principle.) Following the deliver on time and develop iteratively principles, our development is done in timeboxes which have fixed durations: We repeat our development processes.

The evolutionary development phase uses many techniques/practices such as MoSCoW Prioritization, modeling, and facilitated workshops.

The development that we talk about in this context contains all aspects of development, including testing: We have iterative development , where all development processes are repeated. This is so, because we want the output to be complete and able to generate useful feedback.

Even though the output of the evolutionary development phase is so complete that it can be put into production without much extra work, we don’t do it after each iteration because deployment needs to be aligned with the business aspects outside the project. As a result, there’s a deployment phase for putting the latest increment into production.

Written by Nader K. Rad

This is (and will be) a work in progress: More details will be added in the future, depending on the feedback.

This wiki is developed and managed by an accredited trainer, independent of Agile Business Consortium and APMG. While aligned with their guidelines, it’s not an official resource.