STARTING ON THE PATH OF PDLCproductcamppdx.org/wp-content/uploads/2018/03/ProductCamp.pdf · What experiment would mimic the product environmentto test that hypothesis? What measures

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STARTING ON THE PATH OF PDLC

© 2017 Cambia Health Solutions, Inc.

Validate Build & Pilot Launch Grow Sunset

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WHY


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Why is Cambia CCS doing PDLC?• CCS is ready for change. • Fix broken waterfall like processes to be entrepreneurial in a large

organization• Work together and err on the side of execution. • Increase the chance of success. Specifically, be pragmatic in our

product development spend leading to business viable products. • Get closer to the consumers, and buyers of our product• Increase speed to market. • Make it efficient to get things done. • Remove ambiguity. Drive clarity of roles.

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The Industry Landscape is Changing• Modern business realities are volatile, uncertain, complex and

ambiguous.• Technology and market changes are increasingly disruptive• New business models are emerging at a rapid pace• Large organizations (like us!) need to be simpler, faster

To stay competitive we need to think and behave in a different way

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WHAT TO EXPECT


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Crucial Skills for Success in PDLC Shared

Language

Clear consistent

way to discuss the

development of

Cambia products


Intentional PDLC Process

Design products and

business models in a

systematic, effective,

efficient and practical

way.

Experimentation Culture

Test different product

and business model

ideas before going to

market.

Adjust People, Process, Tools

Use roadblocks in PDLC

as a way to continually

improve product and

create competitive

advantage

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THE PATH I WENT DOWN


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The Innovator’s Method & Lean Startup


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Lean Core Conceptual Model

Learn

Build Measure

What do you need to test to ensure you have desire-able, viable and feasible product?

What experiment would mimic the product environment to test that hypothesis?

What measures indicate You are on the right track? What would make you pivot? Learn Quickly, Fail Fast.

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Concrete Example

• Test #1: Core Hypothesis to Test (130 dresses – Harvard Undergrads – 140 women) ü Would middle to upper-class young women rent a designer dress if it’s available at 1/10 the retail price? Yes – 35%

ü Will women who rent dresses return them in good condition? Yes - 51 or 53 came back fine.

• Test #2: (Yale - more women, more dresses) • Would women rent dresses they couldn’t try on? Yes – AND renting them would increase by 55% if they had more options.

• Test #3: (NYC: 1000 women, PDFs of dresses). • Would women rent dresses they couldn’t see? Yes – 5% willing to try based on a PDF. Enough to test on the web)

• Test #4: (Testing the High Fashion Eco-System: 5,000 invites to beta w/Bain Capital. 800 dresses, 30 designers) • Would they rent high-end fashion from a website? Yes – and RTR’s inventory dressed 85% of the women who attended Obama’s 2nd

inauguration.

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How this Applies at the Enterprise

• 2002: • New products had a poor success record, TurboTax had 1 release per year.

• Now: • Key metrics for the enterprise – Number of customers using products that didn’t

exist 3 years ago.

• 10% annual revenue increase.

• Have roughly 70 lean startup based tests a year, 500 changes in 2.5 months to TurboTax alone in the final month.

• Spun off IntuitLabs to help other organizations see results with Lean Startup


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New Measures during concept validation


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Many Large Companies are Already Running Lean Startup Variations into their PDLC

“The battle between every startup and incumbent comes down to whether the startup gets distribution before the incumbent gets innovation.” - Alex Rampell, Andreessen Horowitz

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THE HOW


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Phases and Gates


ValidateGate

Build & PilotGate

LaunchGate

GrowGate

Sunset Research & Ideate Validate Build

& Pilot Launch Grow

--- Happy Path ----

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Phases and Gates – Why?


ValidateGate

1

Build & PilotGate

2

LaunchGate3

GrowGate

Sunset Research & Ideate

A

Validate B

Build & Pilot

C

Launch Grow

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Validate Build & Pilot Launch Grow Sunset

* Pitch Deck

CCS Business Plan Canvas

Timeline, Resources, Budget

* Validate Summary Findings

CCS Business Plan Canvas

Business Case


Gate Assets – Getting the Foundation

* GTM Plan

Business Plan

1 Year Roadmap

Operational Readiness Plan


* Roadmap and Portfolio Strategy

Growth KPIs

Business Plan

* Sunset Proposal

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WHAT’S NEXT


1919 © 2017 Cambia Health Solutions, Inc.

Documents

STARTING ON THE PATH OF PDLCproductcamppdx.org/wp-content/uploads/2018/03/ProductCamp.pdf · What experiment would mimic the product environmentto test that hypothesis? What measures