Introduction to Software Products and Startups 2013
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Introduction to Software Products and Startups 2013

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Introduction to Software Products and Startups 2013 Introduction to Software Products and Startups 2013 Presentation Transcript

  • 1 — Products Software Development From Code to Product
  • Is this a restaurant? From Code to Product Lecture 1 — Products — Slide 2 gidgreen.com/course Tasty, nutritious food
  • Is this a product? From Code to Product Lecture 1 — Products — Slide 3 gidgreen.com/course
  • Some leading products From Code to Product Lecture 1 — Products — Slide 4 gidgreen.com/course
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 5 gidgreen.com/course
  • Course objective “Learn how to turn a core technology or idea into a software product which delights users, succeeds in the marketplace and becomes a profitable business.” From Code to Product Lecture 1 — Products — Slide 6 gidgreen.com/course
  • Our assumptions •  You can program •  You are web savvy •  You know English, ish •  No other experience •  Technical founder(s) •  No investors (yet) From Code to Product Lecture 1 — Products — Slide 7 gidgreen.com/course
  • Syllabus and Exercises From Code to Product Lecture 1 — Products — Slide 8 gidgreen.com/course Introduction to products The entrepreneurship process The big picture User interface principles Practical interface design User interface Advertising as a business model Selling products and services Business model Marketing for startups Search engine visibility Marketing Customer facing APIs Analytics and optimization Localization Technical stuff Spec for MVP UI mockups Landing and pricing pages Design an API
  • Final Project •  Choose 3 competing products – Desktop/web/mobile (or a combination) – Lecturer approval required •  Explain problem •  Compare products – Functionality, UI, business model, marketing •  Conclusion •  Independent analysis From Code to Product Lecture 1 — Products — Slide 9 gidgreen.com/course
  • We won’t cover… •  Raising money •  Forming a company •  Recruiting •  Legal issues •  Enterprise sales •  Management •  Exit strategy From Code to Product Lecture 1 — Products — Slide 10 gidgreen.com/course
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 11 gidgreen.com/course
  • Products are for people From Code to Product Lecture 1 — Products — Slide 12 gidgreen.com/course
  • People are physical From Code to Product Lecture 1 — Products — Slide 13 gidgreen.com/course Eyes Hands Brain
  • People are emotional From Code to Product Lecture 1 — Products — Slide 14 gidgreen.com/course
  • People are impatient “The vast majority of people who visit your site… will arrive with their finger poised on the Back button… So your site has to say: Wait! Don't click on Back. This site isn't lame. Look at this, for example.” — Paul Graham, Y Combinator From Code to Product Lecture 1 — Products — Slide 15 gidgreen.com/course
  • People are irrational From Code to Product Lecture 1 — Products — Slide 16 gidgreen.com/course
  • People are self-interested From Code to Product Lecture 1 — Products — Slide 17 gidgreen.com/course
  • People are skeptical From Code to Product Lecture 1 — Products — Slide 18 gidgreen.com/course “The average American is exposed to several hundred ad messages a day and is trying to tune out.” — Prof. Philip Kotler, 2005 “On average, Americans are subject to some 3,000 essentially random pitches per day.” — Inc.com, 2005 “Not too long ago, the average American was exposed to over three thousand advertising messages in the average day. Today, you get that many before breakfast!” — Newspaper Association of America, 2002
  • People are followers From Code to Product Lecture 1 — Products — Slide 19 gidgreen.com/course
  • People are short on cash From Code to Product Lecture 1 — Products — Slide 20 gidgreen.com/course $20,000 $25,000 $30,000 2010200820062004200220001998199619941992 US Inflation-Adjusted Median Income
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 21 gidgreen.com/course
  • What is a software product? Code that solves problem + Inputs and outputs + User packaging + Can generate cash From Code to Product Lecture 1 — Products — Slide 22 gidgreen.com/course
  • Marketing Layers of a product From Code to Product Lecture 1 — Products — Slide 23 gidgreen.com/course Core Less unique Less technology But more visible to end users (in general…)
  • MicrosoftOffice Layers of Microsoft Excel From Code to Product Lecture 1 — Products — Slide 24 gidgreen.com/course Calculation engine
  • PR,Gmail,Maps,… Layers of Google From Code to Product Lecture 1 — Products — Slide 25 gidgreen.com/course PageRank
  • Code Breakdown Example From Code to Product Lecture 1 — Products — Slide 26 gidgreen.com/course Algorithm Core 48% 13% 14% 5% 9% 11%
  • What’s the core of PayPal? •  High volume transaction processing? •  Integration with external systems? •  “…PayPal is: a security company pretending to be a financial services company” — Max Levchin, Founder From Code to Product Lecture 1 — Products — Slide 27 gidgreen.com/course
  • An ideal core •  New •  Clever •  Invisible •  Hard to reproduce •  Research-based •  Optimized for speed •  Improve with usage From Code to Product Lecture 1 — Products — Slide 28 gidgreen.com/course Objective: Barrier to entry
  • An ideal core interface •  New Familiar •  Clever Simple •  Invisible Obvious •  Hard to reproduce •  Research-based •  Optimized for speed •  Improve with usage From Code to Product Lecture 1 — Products — Slide 29 gidgreen.com/course Objective: No barriers to usage
  • Product Technology Interface Desktop P2P + VoIP Config-free Web Messaging 140 characters Mobile Super effects Instant posting Combining the ideals From Code to Product Lecture 1 — Products — Slide 30 gidgreen.com/course
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 31 gidgreen.com/course
  • Major platforms PCs Web Smartphone Tablet Initial adoption 1977 1993 2007 2010 2012 shipments 350 million — 717 million 120 million Jan 2013 users 1.5 billion 2.5 billion 1.1 billion 150 million Annual growth ~5% 8% 42% 150% Core platforms From Code to Product Lecture 1 — Products — Slide 32 gidgreen.com/course
  • Web on Mobile From Code to Product Lecture 1 — Products — Slide 33 gidgreen.com/course http://www.kpcb.com/insights/2012-internet-trends-update
  • Historical user growth From Code to Product Lecture 1 — Products — Slide 34 gidgreen.com/course 0 1 billion 2 billion 1980 1985 1990 1995 2000 2005 2010 PCs Web Touchphone Tablet
  • Operating system shipments From Code to Product Lecture 1 — Products — Slide 35 gidgreen.com/course http://www.kpcb.com/insights/2012-internet-trends-update
  • Other platforms •  Mainframes •  Supercomputers •  PC servers – Linux, FreeBSD, Windows Server •  Game consoles – Wii, Xbox, PlayStation, handhelds •  Other mobiles – Blackberry, Symbian From Code to Product Lecture 1 — Products — Slide 36 gidgreen.com/course
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 37 gidgreen.com/course
  • What does a startup do? •  (Raise money) •  Development •  Monetization •  Marketing •  Publicity •  Biz dev •  (Exit) From Code to Product Lecture 1 — Products — Slide 38 gidgreen.com/course
  • Baseline scenario From Code to Product Lecture 1 — Products — Slide 39 gidgreen.com/course Revenue Time Steady growth by word of mouth 5% per month = ~80% per year
  • Monetization From Code to Product Lecture 1 — Products — Slide 40 gidgreen.com/course Revenue Time More revenue per user
  • Business development From Code to Product Lecture 1 — Products — Slide 41 gidgreen.com/course Revenue Time Gain partner Lose partner
  • Marketing From Code to Product Lecture 1 — Products — Slide 42 gidgreen.com/course Revenue Time Constant flow of extra users
  • Publicity From Code to Product Lecture 1 — Products — Slide 43 gidgreen.com/course Revenue Time Euphoria Depression Diminishing returns
  • Example: Not so Cuil From Code to Product Lecture 1 — Products — Slide 44 gidgreen.com/course Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Raised $8m Raised $25m Launched as Google Killer Didn’tKillGoogle Relaunched as Cpedia Dead
  • Everything but the Product From Code to Product Lecture 1 — Products — Slide 45 gidgreen.com/course Revenue Time Revenue Time Revenue Time Revenue Time
  • Product development From Code to Product Lecture 1 — Products — Slide 46 gidgreen.com/course Revenue Time Increasing growthrate
  • Growth by word of mouth From Code to Product Lecture 1 — Products — Slide 47 gidgreen.com/course Monthly 1 year 2 years 5 years 10 years 3% 1.4x 2.0x 5.9x 35x 5% 1.8x 3.2x 19x 349x 7% 2.3x 5.1x 58x 3358x
  • On marketing schemes… “The one thing we learned over 5 years is that nothing works better than just improving your product. Every minute, every developer hour we spent on any one of these crazy things… was nothing compared to just making a better version of the product and releasing it.” — Joel Spolsky, Fog Creek Software From Code to Product Lecture 1 — Products — Slide 48 gidgreen.com/course
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 49 gidgreen.com/course
  • Startup founders •  2 or 3 people – If just one, get lots of advice •  Complementary skills – Vision + Product – Technology •  Friendship + trust •  Shared goals •  Everyone vests From Code to Product Lecture 1 — Products — Slide 50 gidgreen.com/course
  • Founder goals •  Make money •  Have fun •  Be free •  Create something •  Do good •  Get famous •  Make money From Code to Product Lecture 1 — Products — Slide 51 gidgreen.com/course
  • How much annual income? From Code to Product Lecture 1 — Products — Slide 52 gidgreen.com/course $1,000 $10,000 $100,000 $1,000,000 Feel good Extra money Lifestyle Working rich
  • How big an exit? From Code to Product Lecture 1 — Products — Slide 53 gidgreen.com/course $2 million $20 million $200 million $2 billion Something neat Team + technology Scaled business Scare someone big
  • Lecture 1 •  About this course •  Products and people •  Layers of a product •  Software platforms •  What does a startup do? •  Founders and goals •  External resources From Code to Product Lecture 1 — Products — Slide 54 gidgreen.com/course
  • Books From Code to Product Lecture 1 — Products — Slide 55 gidgreen.com/course
  • Some websites From Code to Product Lecture 1 — Products — Slide 56 gidgreen.com/course Hacker News Links to news news.ycombinator.com Mashable Social media news mashable.com Mixergy Interviews Interviews with founders mixergy.com/interviews OnStartups Answers Q&A for startups answers.onstartups.com Quora Q&A popular with startups quora.com ReadWriteWeb In-depth startup blog readwriteweb.com TechCrunch Leading startup blog techcrunch.com
  • Thought leaders — Entrepreneurs From Code to Product Lecture 1 — Products — Slide 57 gidgreen.com/course 37 Signals Ruby on Rails 37signals.com/svn Steve Blank “Customer Development” steveblank.com Jason Cohen SmartBear Software blog.asmartbear.com Seth Godin “Permission Marketing” sethgodin.typepad.com Dharmesh Shah HubSpot onstartups.com Joel Spolsky Stack Overflow joelonsoftware.com Eric Ries “Lean Startup” startuplessonslearned.com
  • Thought leaders — Investors From Code to Product Lecture 1 — Products — Slide 58 gidgreen.com/course Chris Dixon Founder Collective cdixon.org Brad Feld TechStars feld.com Paul Graham Y Combinator paulgraham.com Guy Kawasaki Garage Technology Ventures blog.guykawasaki.com Dave McClure 500 Startups 500hats.typepad.com Mark Suster GRP Partners bothsidesofthetable.com Fred Wilson Union Square Ventures avc.com
  • And check these out From Code to Product Lecture 1 — Products — Slide 59 gidgreen.com/course