1 — ProductsSoftware DevelopmentFrom Code to Product
Is this a restaurant?                                                              Tasty,                                 ...
Is this a product?From Code to Product       Lecture 1 — Products — Slide 3   gidgreen.com/course
Some leading productsFrom 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?• ...
Course objective“Learn how to turn a coretechnology or idea into a softwareproduct which delights users,succeeds in the ma...
Our assumptions•  You can program•  You are web savvy•  You know English, ish•  No other experience•  Technical founder(s)...
Syllabus       1       2               Products + Process       3       4               User Interface + Localization     ...
We won’t cover…•    Raising money•    Forming a company•    Recruiting•    Legal issues•    Enterprise sales•    Managemen...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
Products are for peopleFrom Code to Product   Lecture 1 — Products — Slide 11   gidgreen.com/course
People are physical Brain                 Eyes                        HandsFrom Code to Product            Lecture 1 — Pro...
People are emotionalFrom Code to Product   Lecture 1 — Products — Slide 13   gidgreen.com/course
People are impatient“The vast majority of people who visityour site… will arrive with their fingerpoised on the Back butto...
People are irrationalFrom Code to Product     Lecture 1 — Products — Slide 15   gidgreen.com/course
People are self-interestedFrom Code to Product   Lecture 1 — Products — Slide 16   gidgreen.com/course
People are skeptical“The average American is exposed to several hundred admessages a day and is trying to tune out.”   — P...
People are followersFrom Code to Product    Lecture 1 — Products — Slide 18   gidgreen.com/course
People are short on cash$30,000$25,000                       US Inflation-Adjusted Median Income$20,000            1992 19...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
What is a software product?                       Code that solves problem                                          +     ...
Layers of a product                                                              Less unique          eting               ...
Layers of Microsoft Excel                e             Offic           soft                               Calculation     ...
Layers of Google                 …,             Maps         mail,                                   PageRank     PR, GFro...
Code Breakdown Example                                  48%                                  13%                          ...
What’s the core of PayPal?•  High volume transaction processing?•  Integration with external systems?•  “…PayPal is: a sec...
An ideal core•    New•    Clever•    Invisible                                             Objective:•    Hard to reproduc...
An ideal core interface•    New Familiar•    Clever Simple•    Invisible Obvious                                   Objecti...
Combining the ideals                       Product                Technology        InterfaceDesktop                      ...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
Major platforms                          PCs                 Web               Touchphone         Tablet Initial adoption ...
Historical user growth2 billion                       PCs                 Web                       Touchphone          Ta...
Other platforms•  Mainframes•  Supercomputers•  PC servers      –  Linux, FreeBSD, Windows Server•  Game consoles      –  ...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
What does a startup do?•    (Raise money)•    Development•    Monetization•    Marketing•    Publicity•    Biz dev•    (Ex...
Baseline scenario                        Steady growth by word of mouthRevenue                         5% per month = ~80%...
MonetizationRevenue                                                     More revenue                                      ...
Business development                                                          LoseRevenue                                G...
MarketingRevenue                                                                   users                                  ...
Publicity                                              DiminishingRevenue                                                r...
Example: Not so Cuil                                           Didn’t Kill Google             Launched as             Goog...
Everything but the ProductRevenue                                                        Revenue                          ...
Product development                                                                  growth rateRevenue                   ...
Word of mouth•  Sharer:      –  Helping their friend      –  Building social capital      –  Thanking you•  Recipient:    ...
Growth by word of mouth   Monthly             1 year            2 years                  5 years     10 years     3%      ...
On marketing schemes…“The one thing we learned over 5 years isthat nothing works better than justimproving your product. E...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
Startup founders•  2 or 3 people      –  If just one, get lots of advice•  Complementary skills      –  Vision + Product  ...
Founder goals•  Make money•  Have fun•  Be free•  Create something•  Do good•  Get famous•  Make moneyFrom Code to Product...
How much annual income?             $1,000                                      Feel good         $10,000                 ...
How big an exit?     $2 million                                         Something neat $20 million                        ...
Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?• ...
BooksFrom Code to Product   Lecture 1 — Products — Slide 53   gidgreen.com/course
Some websitesHacker News                  Links to news                    news.ycombinator.comMashable                  S...
Thought leaders — Entrepreneurs37 Signals                  Ruby on Rails                          37signals.com/svnSteve B...
Thought leaders — InvestorsChris Dixon                Founder Collective                          cdixon.orgBrad Feld     ...
And check these outFrom Code to Product    Lecture 1 — Products — Slide 57   gidgreen.com/course
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Introduction to Software Products and Startups

  1. 1. 1 — ProductsSoftware DevelopmentFrom Code to Product
  2. 2. Is this a restaurant? Tasty, nutritious foodFrom Code to Product Lecture 1 — Products — Slide 2 gidgreen.com/course
  3. 3. Is this a product?From Code to Product Lecture 1 — Products — Slide 3 gidgreen.com/course
  4. 4. Some leading productsFrom Code to Product Lecture 1 — Products — Slide 4 gidgreen.com/course
  5. 5. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 5 gidgreen.com/course
  6. 6. Course objective“Learn how to turn a coretechnology or idea into a softwareproduct which delights users,succeeds in the marketplace andbecomes a profitable business.”From Code to Product Lecture 1 — Products — Slide 6 gidgreen.com/course
  7. 7. 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
  8. 8. Syllabus 1 2 Products + Process 3 4 User Interface + Localization 5 6 7 Business models + Analytics 8 9 10 Marketing + SEO 11 12 13 Desktop, web, mobileFrom Code to Product Lecture 1 — Products — Slide 8 gidgreen.com/course
  9. 9. We won’t cover…•  Raising money•  Forming a company•  Recruiting•  Legal issues•  Enterprise sales•  Management•  Exit strategyFrom Code to Product Lecture 1 — Products — Slide 9 gidgreen.com/course
  10. 10. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 10 gidgreen.com/course
  11. 11. Products are for peopleFrom Code to Product Lecture 1 — Products — Slide 11 gidgreen.com/course
  12. 12. People are physical Brain Eyes HandsFrom Code to Product Lecture 1 — Products — Slide 12 gidgreen.com/course
  13. 13. People are emotionalFrom Code to Product Lecture 1 — Products — Slide 13 gidgreen.com/course
  14. 14. People are impatient“The vast majority of people who visityour site… will arrive with their fingerpoised on the Back button… So yoursite has to say: Wait! Dont click onBack. This site isnt lame. Look at this,for example.” — Paul Graham, Y CombinatorFrom Code to Product Lecture 1 — Products — Slide 14 gidgreen.com/course
  15. 15. People are irrationalFrom Code to Product Lecture 1 — Products — Slide 15 gidgreen.com/course
  16. 16. People are self-interestedFrom Code to Product Lecture 1 — Products — Slide 16 gidgreen.com/course
  17. 17. People are skeptical“The average American is exposed to several hundred admessages a day and is trying to tune out.” — Prof. Philip Kotler, 2005“On average, Americans are subject to some 3,000 essentiallyrandom pitches per day.” — Inc.com, 2005“Not too long ago, the average American was exposed to overthree thousand advertising messages in the average day. Today,you get that many before breakfast!” — Newspaper Association of America, 2002From Code to Product Lecture 1 — Products — Slide 17 gidgreen.com/course
  18. 18. People are followersFrom Code to Product Lecture 1 — Products — Slide 18 gidgreen.com/course
  19. 19. People are short on cash$30,000$25,000 US Inflation-Adjusted Median Income$20,000 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010From Code to Product Lecture 1 — Products — Slide 19 gidgreen.com/course
  20. 20. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 20 gidgreen.com/course
  21. 21. What is a software product? Code that solves problem + Inputs and outputs + User packaging + Can generate cashFrom Code to Product Lecture 1 — Products — Slide 21 gidgreen.com/course
  22. 22. Layers of a product Less unique eting Less technology But more visible to end users Mark Core (in general…)From Code to Product Lecture 1 — Products — Slide 22 gidgreen.com/course
  23. 23. Layers of Microsoft Excel e Offic soft Calculation engine MicroFrom Code to Product Lecture 1 — Products — Slide 23 gidgreen.com/course
  24. 24. Layers of Google …, Maps mail, PageRank PR, GFrom Code to Product Lecture 1 — Products — Slide 24 gidgreen.com/course
  25. 25. Code Breakdown Example 48% 13% 14% 5% 9% 11% Algorithm CoreFrom Code to Product Lecture 1 — Products — Slide 25 gidgreen.com/course
  26. 26. 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, FounderFrom Code to Product Lecture 1 — Products — Slide 26 gidgreen.com/course
  27. 27. An ideal core•  New•  Clever•  Invisible Objective:•  Hard to reproduce Barrier to entry•  Research-based•  Optimized for speed•  Improve with usageFrom Code to Product Lecture 1 — Products — Slide 27 gidgreen.com/course
  28. 28. An ideal core interface•  New Familiar•  Clever Simple•  Invisible Obvious Objective:•  Hard to reproduce No barriers to usage•  Research-based•  Optimized for speed•  Improve with usageFrom Code to Product Lecture 1 — Products — Slide 28 gidgreen.com/course
  29. 29. Combining the ideals Product Technology InterfaceDesktop P2P + VoIP Config-free Web Messaging 140 characters Mobile Super effects Instant postingFrom Code to Product Lecture 1 — Products — Slide 29 gidgreen.com/course
  30. 30. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 30 gidgreen.com/course
  31. 31. Major platforms PCs Web Touchphone Tablet Initial adoption 1977 1993 2007 2010 2011 shipments 350 million — 250 million 50 million Jan 2012 users 1.4 billion 2.3 billion 350 million 60 million Annual growth 10% 12% 100% 150% Core platformsFrom Code to Product Lecture 1 — Products — Slide 31 gidgreen.com/course
  32. 32. Historical user growth2 billion PCs Web Touchphone Tablet1 billion 0 1980 1985 1990 1995 2000 2005 2010From Code to Product Lecture 1 — Products — Slide 32 gidgreen.com/course
  33. 33. Other platforms•  Mainframes•  Supercomputers•  PC servers –  Linux, FreeBSD, Windows Server•  Game consoles –  Wii, Xbox, PlayStation, handhelds•  Other mobiles –  Blackberry, Symbian, Windows MobileFrom Code to Product Lecture 1 — Products — Slide 33 gidgreen.com/course
  34. 34. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 34 gidgreen.com/course
  35. 35. What does a startup do?•  (Raise money)•  Development•  Monetization•  Marketing•  Publicity•  Biz dev•  (Exit)From Code to Product Lecture 1 — Products — Slide 35 gidgreen.com/course
  36. 36. Baseline scenario Steady growth by word of mouthRevenue 5% per month = ~80% per year Time From Code to Product Lecture 1 — Products — Slide 36 gidgreen.com/course
  37. 37. MonetizationRevenue More revenue per user Time From Code to Product Lecture 1 — Products — Slide 37 gidgreen.com/course
  38. 38. Business development LoseRevenue Gain partner partner Time From Code to Product Lecture 1 — Products — Slide 38 gidgreen.com/course
  39. 39. MarketingRevenue users of extra tant flow Cons Time From Code to Product Lecture 1 — Products — Slide 39 gidgreen.com/course
  40. 40. Publicity DiminishingRevenue returns Depres Euphoria sion Time From Code to Product Lecture 1 — Products — Slide 40 gidgreen.com/course
  41. 41. Example: Not so Cuil Didn’t Kill Google Launched as Google KillerRaised Raised Relaunched $8m $25m as Cpedia DeadMar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10From Code to Product Lecture 1 — Products — Slide 41 gidgreen.com/course
  42. 42. Everything but the ProductRevenue Revenue Time TimeRevenue Revenue Time Time From Code to Product Lecture 1 — Products — Slide 42 gidgreen.com/course
  43. 43. Product development growth rateRevenue Increasing Time From Code to Product Lecture 1 — Products — Slide 43 gidgreen.com/course
  44. 44. Word of mouth•  Sharer: –  Helping their friend –  Building social capital –  Thanking you•  Recipient: –  Saving time –  Is “in the know” –  Becoming a sharer•  Also: word of webFrom Code to Product Lecture 1 — Products — Slide 44 gidgreen.com/course
  45. 45. Growth by word of mouth 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 3358xFrom Code to Product Lecture 1 — Products — Slide 45 gidgreen.com/course
  46. 46. On marketing schemes…“The one thing we learned over 5 years isthat nothing works better than justimproving your product. Every minute,every developer hour we spent on any oneof these crazy things… was nothingcompared to just making a better versionof the product and releasing it.” — Joel Spolsky, Fog Creek SoftwareFrom Code to Product Lecture 1 — Products — Slide 46 gidgreen.com/course
  47. 47. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 47 gidgreen.com/course
  48. 48. Startup founders•  2 or 3 people –  If just one, get lots of advice•  Complementary skills –  Vision + Product –  Technology•  Friendship + trust•  Shared goals•  Everyone vestsFrom Code to Product Lecture 1 — Products — Slide 48 gidgreen.com/course
  49. 49. Founder goals•  Make money•  Have fun•  Be free•  Create something•  Do good•  Get famous•  Make moneyFrom Code to Product Lecture 1 — Products — Slide 49 gidgreen.com/course
  50. 50. How much annual income? $1,000 Feel good $10,000 Extra money $100,000 Lifestyle$1,000,000 Working richFrom Code to Product Lecture 1 — Products — Slide 50 gidgreen.com/course
  51. 51. How big an exit? $2 million Something neat $20 million Team + technology$200 million Scaled business $2 billion Scare someone bigFrom Code to Product Lecture 1 — Products — Slide 51 gidgreen.com/course
  52. 52. Lecture 1•  About this course•  Products and people•  Layers of a product•  Software platforms•  What does a startup do?•  Founders and goals•  External resourcesFrom Code to Product Lecture 1 — Products — Slide 52 gidgreen.com/course
  53. 53. BooksFrom Code to Product Lecture 1 — Products — Slide 53 gidgreen.com/course
  54. 54. Some websitesHacker News Links to news news.ycombinator.comMashable Social media news mashable.comMixergy Interviews Interviews with founders mixergy.com/interviewsOnStartups Answers Q&A for startups answers.onstartups.comQuora Q&A popular with startups quora.comReadWriteWeb In-depth startup blog readwriteweb.comTechCrunch Leading startup blog techcrunch.comFrom Code to Product Lecture 1 — Products — Slide 54 gidgreen.com/course
  55. 55. Thought leaders — Entrepreneurs37 Signals Ruby on Rails 37signals.com/svnSteve Blank “Customer Development” steveblank.comJason Cohen SmartBear Software blog.asmartbear.comSeth Godin “Permission Marketing” sethgodin.typepad.comDharmesh Shah HubSpot onstartups.comJoel Spolsky Stack Overflow joelonsoftware.comEric Ries “Lean Startup” startuplessonslearned.comFrom Code to Product Lecture 1 — Products — Slide 55 gidgreen.com/course
  56. 56. Thought leaders — InvestorsChris Dixon Founder Collective cdixon.orgBrad Feld TechStars feld.comPaul Graham Y Combinator paulgraham.comGuy Kawasaki Garage Technology Ventures blog.guykawasaki.comDave McClure 500 Startups 500hats.typepad.comMark Suster GRP Partners bothsidesofthetable.comFred Wilson Union Square Ventures avc.comFrom Code to Product Lecture 1 — Products — Slide 56 gidgreen.com/course
  57. 57. And check these outFrom Code to Product Lecture 1 — Products — Slide 57 gidgreen.com/course
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