How to make products that don't suck - PCA8

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    13-Sep-2014

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DESCRIPTION

Most start-up companies begin with what they think is a brilliant idea and they immediately jump to building the product, and most of these products suck. Established companies sit around conference rooms staring at their navels, dreaming of the next great product and end up wondering why their products also suck.

Creating innovative products that result in market breakthrough requires a process of multiple iterations of discovery that drive you deeper into understanding the market problems and how to solve them with a differentiated solution. Breakthrough products are based upon solving a significant Market Problem with a Product and Business Model that create a competitive advantage and a Market Strategy that motivates buyers to purchases your product.

In this session, learn this iterative discovery process that leads to breakthrough products and how to apply it to your own products (in startups as well as big enterprises).

Transcript

  • How to Create Products That Donât Suck A Discovery Process for Creating Breakthrough Products (For Start-ups through Big Enterprises) Tom Evans Lûcrum Marketing @compellingmktr
  • High New Product Failure Rate ⢠Only one product concept out of seven becomes a new product winner; and 44% of businessesâ product development projects fail to achieve their profit targets. ⢠One out of four development projects succeeds commercially. (75% failure rate) Robert G Cooper Copyright 2012 - LÃCRUM MARKETING
  • High New Product Failure Rate ⢠Only one product concept out of seven becomes a new product winner; and 44% of businessesâ product development projects fail to achieve their profit targets. ⢠One out of four development projects succeeds commercially. (75% failure rate) Robert G Cooper Copyright 2012 - LÃCRUM MARKETING
  • Why Do So Many Products Suck? 1. Idea to Product
  • Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product
  • Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product
  • Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product 4. Market evidence & validation, product validation, no clear market strategy
  • Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product 4. Market evidence & validation, product validation, no clear market strategy 5. Market evidence & validation, product validation, no profitable business model
  • Keys to Products That Donât Suck ⢠Compelling Market Opportunity â Big painful issues â That many in your target market â Are willing to pay to solve ⢠Compelling Solution â Differentiated â Profitable business model â Time to market ⢠Compelling Market Strategy â Motivates target market â To solve problem with your solution Discovery + Validation
  • Model for Discovery Four Key Steps Validate Hypothesis Plan Strategy Build Solution To Market F o u r K e y P il la rs Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth Product-to-Market⢠Model Product-to-Market is a trademark of Lûcrum Marketing
  • Four Key Pillars ⢠Market Problem â if youâre not solving a problem, there is no need for a product! ⢠Product â How do you solve the market problem in a valuable and differentiated manner? ⢠Business Model â How do you deliver the product and profitably capture the value? ⢠Market Strategy â Who is going to buy it and why?
  • Model for Discovery Four Key Steps Validate Hypothesis Plan Strategy Build Solution To Market F o u r K e y P il la rs Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth Product-to-Market⢠Model Product-to-Market is a trademark of Lûcrum Marketing
  • Market Evidence (of Market Problem) ⢠Sources of Market Evidence â Customers â Non-customers â Market trends/shifts â Unexpected occurences â New technologies â Competitors â Personal experience â Etc.
  • Market Evidence (of Market Problem) ⢠Sources of Market Evidence â Customers â Non-customers â Market trends/shifts â Unexpected occurences â New technologies â Competitors â Personal experience â Etc.
  • Start With Hypothesis â Market Segment âXâ â Has problem âYâ â That happens when âZâ occurs â We can solve it by creating/delivering solution âAâ E.g.: Small manufacturing operations that use hot water & steam are unable to manage manufacturing costs due to the volatility of fuel prices. We can solve this by providing a high temperature solar heating system under a lease agreement.
  • Validate the Hypothesis (1) ⢠Market problem and market segment(s) ⢠Speaking to potential customers (buyers & users) â Most companies donât and wonât do this ⢠Significant time investment â Requires many conversations (cold calling) ⢠Minimum: 20 conversations ⢠May take over 100 conversations ⢠Iterate until validated or rejected Copyright 2012 - LÃCRUM MARKETING
  • What We Want to Identify ⢠Problems, Goals, Needs â What do they want to do that they canât do? â What do they want to improve (decrease/increase)? ⢠Why is this P/G/N important? ⢠When does this happen (usage scenarios) ⢠How do you currently do this? ⢠What is the impact? ⢠How important is this? What is their current satisfaction? ⢠Who are they (Personas)? Copyright 2011 - LÃCRUM MARKETING
  • Validate Hypothesis (2) ⢠Create product & business model concept â Low cost way of presenting product concept â Mockup, prototype, wire frame, story board, presentation, product description ⢠Validate product & business model concept â Present concept and receive feedback ⢠Does the problem still resonate? ⢠Does the approach solve the problem? ⢠What is the Minimum Viable Product (MVP) ⢠Iterate until validated or rejected
  • Plan Strategy ⢠Define & discover greater depth ⢠Validate the market opportunity â Business Case - Can it be profitable? ⢠Define detail on product & business model & market strategy â Market requirements, product requirements, user stories, etc. â Pricing model, delivery mechanism, costs to deliver, etc. ⢠Iterate until validated or rejected
  • Build Solution ⢠Define Minimum Viable Product (MVP) â Just enough functionality to solve the most important market problems â For small segment of market (early adopters, etc.) â Willing to pay for this functionality â Fast to market ⢠Continue to discover, validate, refine!
  • To Market ⢠Sell your first customers ⢠Based upon market validation work ⢠Targeted Market Development Plan â Well defined target market â Clear understanding of buyer roles and their challenges/goals/needs â Compelling reason to buy from you ⢠Value Proposition â what we do for you ⢠Positioning & Differentiation â why buy our solution ⢠Continue to discover, validate, refine!
  • Model for Discovery Four Key Steps Validate Hypothesis Plan Strategy Build Solution To Market F o u r K e y P il la rs Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth Product-to-Market⢠Model Product-to-Market is a trademark of Lûcrum Marketing
  • Key Principles ⢠Hypothesis â Discovery â Validate ⢠Continuous engagement with target market â Validate important decisions ⢠Planning is good, but learning is better ⢠Fail fast â discover fast!
  • Additional References
  • Copyright 2012 - LÃCRUM MARKETING Thank You! Tom Evans Lûcrum Marketing tevans@lucrum-marketing.com +1.512.961.5267 @compellingmktr