Should Skydio prioritize developing new autonomous flight features or improving existing obstacle avoidance capabilities for its consumer drones?

Introduction

The trade-off we're examining today is whether Skydio should prioritize developing new autonomous flight features or improving existing obstacle avoidance capabilities for its consumer drones. This decision is crucial for Skydio's product strategy and market positioning. I'll analyze this trade-off by considering user needs, technical feasibility, market trends, and business impact.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Skydio is facing increased competition in the consumer drone market. Is this correct, and are there specific competitors or market segments we're particularly concerned about?

Why it matters: Helps prioritize features based on competitive landscape Expected answer: Yes, facing pressure from DJI in the prosumer segment Impact on approach: Would influence whether we focus on differentiation or feature parity

• Business Context: Based on Skydio's current revenue model, I'm thinking autonomous features might be a key differentiator. How much of our revenue comes from hardware sales versus software or services?

Why it matters: Determines whether to focus on hardware improvements or software features Expected answer: Primarily hardware sales, with growing software revenue Impact on approach: May suggest balancing hardware and software investments

• User Impact: Considering our user base, I'm wondering if we've seen a shift in user behavior or preferences recently. Have we noticed any trends in how customers are using our drones or what features they're requesting?

Why it matters: Ensures we're addressing actual user needs rather than assumed ones Expected answer: Increasing demand for easier-to-use autonomous features Impact on approach: Could lean towards developing new autonomous flight features

• Technical: Given the complexity of both autonomous features and obstacle avoidance, I'm curious about our current technical limitations. Are there any significant technical hurdles we're facing in either area?

Why it matters: Helps assess feasibility and resource requirements Expected answer: Obstacle avoidance improvements require significant AI/ML advancements Impact on approach: Might influence timeline and resource allocation

• Resource: Thinking about our development capacity, I'm assuming we have limited resources to allocate. Can you give me an idea of our current team size and expertise in these areas?

Why it matters: Determines if we have the right skills and capacity for each option Expected answer: Small, specialized team with expertise in both areas Impact on approach: May suggest focusing on one area to maximize impact with limited resources