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Iterating towards Bethlehem (or, making the shift from a “packaged software”guy to a “hosted services” guy) August 2, 2006 :: SVPMA Michael Sippey GM, TypePad :: Six Apart, Ltd.

Shift from Packaged Software to Hosted Services

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Page 1: Shift from Packaged Software to Hosted Services

Iterating towards Bethlehem(or, making the shift from a “packaged software”guy

to a “hosted services” guy)

August 2, 2006 :: SVPMA

Michael SippeyGM, TypePad :: Six Apart, Ltd.

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About me.

(Lifelong geek, English major, writer, product manager, consultant, business guy, blogger, amateur

designer, spreadsheet geek, father of two.)

http://sippey.typepad.com/

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About the title of this deck.

Turning and turning in the widening gyreThe falcon cannot hear the falconer;

Things fall apart; the centre cannot hold;Mere anarchy is loosed upon the world,

The blood-dimmed tide is loosed, and everywhereThe ceremony of innocence is drowned;

The best lack all conviction, while the worstAre full of passionate intensity.

W.B. Yeats, “Slouching Towards Bethlehem”

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About Six Apart, Ltd.

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Bust 1.0(circa 2002)

Web 2.0(January 2005)

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Act 1(Let’s rewind the clock a bit.)

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Name that product!

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“Packaged” software was truly packaged software

Disks. Disk labels. Disk sleeves. Manual. Manual addendum. Installation guide. Welcome letter.

Invoice receipt. Box. Shipping box. Shipping label.

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Anyone feeling nostalgic?

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Software life cycle.

define > design > build > test > release

elapsed time: 12-24 months

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(How about now? Feeling nostalgic yet?)

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What was my job back then?

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Getting everyone in the van.

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Market Validation

Is the market real?How big is the market?

Does the product fit the market?What are the sales costs?

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How we did it.

Find 30 prospects. Set up meetings.Demo your idea / alpha / beta / product.

Ask questions. (Lots of questions.)Take copious notes. Score your results.

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Critical questions.

Do you have this problem?Does this solve your problem?

How much would you pay for this?Base hit or home run?

How would you spend $100 of our money?

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We always learned new things.

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Occasionally, we learned verynew things.

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Takeaway 1:If you can’t get 30 meetings…

…you don’t have a product.

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Takeaway 2:Nothing’s better than seeing a

user in context.

(My GOD, that’s how they use our product?)

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Let’s fast forward just a few years…

(New job: consultant.Which is really the same as the old job.)

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Act 2(also known as Bubble 1.0!)

(Big money, big teams, big hardware, big dreams.)

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“Let’s build a jukebox.”

(No van this time…instead, a trip to Vegas.)

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Market research phase 1.

(DILO scenarios, experience architecture,lots of time in bars with beer.)

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Market research phase 2.

(There are these guys with the keys...)

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Time to non-functional prototype:6 weeks.

(Goal: sell investors.)

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Time to functional prototype: 12 weeks.

(Goal: sell distributors.)

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Takeaway 3:End users aren’t the only ones

that matter.

(Can’t ignore the other actors in the value chain.)

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Takeaway 4:Prove it with a prototype.

Especially when you’re breaking new ground.

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Takeaway 4 ½:Turn it into a best seller.

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Act 3(also known as Bubble Web 2.0!)

(Everyone knock on wood three times.)

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Let’s build a product.

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Let’s build a product.

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Let’s iterate a service.

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We’ve learned the hard way.

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July 4th weekend, 2005:TypePad 1.6

“Let’s change how users design their blogs. And how they’re rendered. And how users manage

their communities. And most of the app’s JavaScript. I mean, hey! If it’s this big already,

what’s one more thing? We get more bang out of QA, right?”

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What went wrong that weekend scarred everyone involved.

(“Dude, you just had to be there.”)

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We didn’t learn right away, though.

We had to iterate to iterate.

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What’s the right periodicity?

One monthThree weeks

One weekA release every two weeks

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Software life cycle.

define > design > build > test > release

elapsed time: 12-24 months

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(I had to use some of the new fancy clipart in Office 2007.)

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How we make it work.

Roadmap and schedule on the wiki.Lightweight specs.Living in FogBugz.

Iterating.Willingness to let go.

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Simplify releases.

Infrastructure focused v. feature focused.

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Let everyone be their own hero.

*-athons.

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But what about the product management stuff?

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Know your market.

(The 15,000 readers of TechCrunchare not a market.)

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(What we’re doing.)

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Make the customer part of the team.

The whole team sees the $$ metrics.Support staff and support ticket DB.

Motivation, feature and usability research.Eating our own dogfood.

(And it doesn’t hurt that we’re in the megaphone business.)

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(Who doesn’t like charts?)

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(Google AdWords keyword performance report redacted.)

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Beware the vocal minority.

(1% <> 99%)

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So what’s my job now?

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Getting everyone in the van.

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Takeaway 5:It’s the same old story.

Is the market real?How big is the market?

Does the product fit the market?What are the sales costs?

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The more things change, the more things stay the same.

(Except things are faster. And cheaper.)

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Still awake?

(Q&A)

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Ping me.

http://sippey.typepad.com/[email protected]