Brad Hoover "Differences between building a consumer vs. enterprise product"
Software Product DevelopmentEnterprise vs. ConsumerBrad Hoover
Brad Hoover bioCEO Grammarly, Inc.Board member MocoSpace; Formerly 6+ years as investorleading venture-backed mobile with VC firm General Catalystsocial gaming destination site. Partners, management consultant with McKinsey & Company, and just enough time dabbling as a coder to appreciate the difficulty!
About Grammarly Offices in SF and Kyiv. Currently hiring for a variety of positions in Kiev, including a product manager.Consumer Saas business providing leading writingenhancement toolIndustry leading product Exceptional team with track Large scale with nearly 10Mwith highly engaged users. record of success. annual uniques and many paying users. Proud Sponsor of AgileBaseCamp
The essence of Product DevelopmentIdentify need: why doesn’t it exist already?Initial product development: reduce risk (costand time).Iterate product to go mainstream: improveproduct feature set to increase quality (sales,LTV) and scale (total available market).
Enterprise vs. consumer: A comparison Enterprise ConsumerServe enterprise customers, not Serving individual users.individuals. Usually free or free offering; paidGenerally paid; enterprise by individual credit card, cellprocurement with seat license phones, e-money, etc. (if paid);model; security and uptime security/uptime may be lesscritical. critical.E.g., Office365 (MS), Salesforce, E.g., Google search, Facebook,GoodData, etc. Kayak, etc.
Comparison: Identify Need Enterprise ConsumerSomeone from the industry or Need of the founder based on lifefunction served, who understands experience, generally outside ofall details of the market work.opportunity/need.
Comparison: Initial Product Dev Enterprise ConsumerExtensive upfront design and Develop hypothesis to infer broadprototyping. customer needs from in person conversations, surveys etc.In person conversations anddemos fine tune the product, Test the hypothesis on real usersoften with customer input. to find the local maximum (A/B testing; multivariate testing). Less upfront design and prototyping work for new features, infer customer input via tests.
Comparison: Iterating product to go mainstream Enterprise ConsumerGain credibility with reference Develop the best product in thecustomers. market.Expand the feature set to provide Expand feature set to solve aenough appeal to boarder market. broad need.Business development deals to Generate word of mouth/viralreach large market. adoption.Sales force can overcomeobjections in person.
Summary: enterprise EnterpriseGood product with great marketing/sales maybeat the reverse, as sales force can overcomethe objections through conversations.Higher need for security & stability.Lends itself well to outsourcing model.
Summary: consumer ConsumerRequires truly exceptional product with very fluidfunnel and interface, to sell without speaking.High need for speedy iterations to test hypothesis(infer collective needs/preferences of user base).Benefits from entire product development team(product + engineering) in same location tofacilitate rapid communication/iteration.
Shared guiding principalsFocus on a clear, achievable goal; launch as littleas possible to provide initial value.Create a flow environment so the team is “in thezone”:— Clear feedback on progress towards goals;— New skills/challenges;— Autonomy, especially around “how”.If total addressable market (TAM) is not largeenough then black to the drawing board to finda larger hill.
Consumerfication of enterprise appsSaas enables introduction of ”prosumer”enterprise products with similarities to consumerproducts and development process.These prosumer apps may have a superioruser experience/workflow vs. strict enterprisealternatives, and are well positioned to takemarket share as a result.A trend to follow (e.g., Google Docs, Evernote,Grammarly).
Thank youIf you have interest in working for Grammarly, go towww.grammarly.com/jobs and review…Product manager (coding background)QA leadNatural Language Processing developerDesktop .Net developerAffiliate relationship manager (sales)