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How to Create Products That Don't Suck BSC- Sept 23 2013
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How to Create Products That Don't Suck BSC- Sept 23 2013

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Presentation to Business Success Center Meetup on Sept 23, 2013

Presentation to Business Success Center Meetup on Sept 23, 2013

Published in: Business, Economy & Finance

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  • 1. HOW TO CREATE PRODUCTS THAT DON’T SUCK © Copyright 2012 to 2013, The Lûcrum Group, Inc Tom Evans The Lûcrum Group @napkintorevenue www.napkintorevenue.com
  • 2. High New Product Failure Rate • Robert G Cooper: One out of four development projects succeeds commercially. (i.e., 75% failure rate) • Jack Gordon: In the world we live in, somewhere between 80 percent and 95 percent of new product introductions fail. Copyright 2012 - LÛCRUM
  • 3. High New Product Failure Rate • Robert G Cooper: One out of four development projects succeeds commercially. (i.e., 75% failure rate) • Jack Gordon: In the world we live in, somewhere between 80 percent and 95 percent of new product introductions fail. Copyright 2012 - LÛCRUM
  • 4. Why Do So Many Products Suck? 1. Idea to Product © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 5. Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 6. Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 7. Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product 4. Market evidence & validation, product validation, no clear market strategy © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 8. Why Do So Many Products Suck? 1. Idea to Product 2. One point of market evidence to idea to product 3. Market evidence & validation to product 4. Market evidence & validation, product validation, no clear market strategy 5. Market evidence & validation, product validation, no profitable business model © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 9. Keys to Products That Don’t Suck • Compelling Market Opportunity – Big painful issues – That many in your target market – Are willing to pay to solve • Compelling Solution – Differentiated Value Proposition – Profitable business model – Time to market • Compelling Market Strategy – Motivates target market – To solve problem with your solution Discovery + Validation
  • 10. Model for Discovery Four Key Steps of Discovery Validate Hypothesis Validate Opportunity Validate Solution Validate Market FourKeyPillars Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth From Napkin to Revenue™ Discovery Model © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 11. Four Key Pillars • Market Problem – if you’re not solving a problem, there is no need for a product! • Product – How do you solve the market problem in a valuable and differentiated manner? • Business Model – How do you deliver the product and profitably capture the value? • Market Strategy – Who is going to buy it and why? © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 12. Model for Discovery Four Key Steps of Discovery Validate Hypothesis Validate Opportunity Validate Solution Validate Market FourKeyPillars Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth From Napkin to Revenue™ Discovery Model © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 13. Market Evidence (of Market Problem) • Sources of Market Evidence – Customers – Non-customers – Market trends/shifts – Unexpected occurrences – New technologies – Competitors – Personal experience – Etc. © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 14. Market Evidence (of Market Problem) • Sources of Market Evidence – Customers – Non-customers – Market trends/shifts – Unexpected occurrences – New technologies – Competitors – Personal experience – Etc. © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 15. Market Evidence (of Market Problem) • Sources of Market Evidence – Customers – Non-customers – Market trends/shifts – Unexpected occurrences – New technologies – Competitors – Personal experience – Etc. © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 16. Start With Hypothesis – Buyer/User ‘W’ – In Market Segment “X” – Has problem “Y” – That happens when “Z” occurs – We can solve it by creating/delivering solution “A” E.g.: Owners of small manufacturing operations that use hot water & steam are unable to manage manufacturing costs due to the volatility of fuel prices. We can solve this by providing a high temperature solar heating system under a lease agreement. © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 17. Validate the Hypothesis (1) • Market problem and market segment(s) • Speaking to potential customers (buyers & users) – Most companies don’t and won’t do this • Significant time investment – Requires many conversations (cold calling) • Minimum: 20 conversations • May take over 100 conversations • Iterate until validated or rejected © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 18. Henry Ford’s Quote “If I had asked people what they wanted, they would have said faster horses.” Copyright 2011 - LÛCRUM
  • 19. What Do They Need (To Do)? “People don't want to buy a quarter-inch drill. They want a quarter-inch hole!” –Theodore Levitt Copyright 2011 - LÛCRUM
  • 20. What We Want to Identify • Problems, Goals, Needs – What do they want to do that they can’t do? – What do they want to improve (decrease/increase)? • Why is this important? • When does this happen (usage scenarios) • How do you currently do this? • What is your current satisfaction? • What is the impact? Copyright 2011 - LÛCRUM
  • 21. Validate Hypothesis (2) • Create product & business model concept – Low cost way of presenting product concept – Mockup, prototype, wire frame, story board, presentation, product description • Validate product & business model concept – Present concept and receive feedback • Does the problem still resonate? • Does the approach solve the problem? • What is the Minimum Viable Product (MVP) • Iterate until validated or rejected © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 22. Validate Opportunity • Define & discover at greater depth • Competitive research (strategy, position, strength) • Validate the market opportunity – Business Case - Can it be profitable? • Detailed design of product & business model – Market requirements, product requirements, user stories, etc. – Pricing model, delivery mechanism, costs to deliver, etc. • Iterate until validated or rejected © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 23. Validate Solution • Define Minimum Viable Product (MVP) – Just enough functionality to solve the most important market problems – For small segment of market (early adopters, etc.) – Willing to pay for this functionality – Fast to market – Learning • Continue to discover, validate, refine! © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 24. Validate Market • Sell your first customers • Based upon market validation work • Targeted Market Development Plan – Well defined target market – Clear understanding of buyer roles and their challenges/goals/needs – Compelling reason to buy from you • Value Proposition – what we do for you • Positioning & Differentiation – why buy our solution • Continue to discover, validate, refine! © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 25. Model for Discovery Four Key Steps of Discovery Validate Hypothesis Validate Opportunity Validate Solution Validate Market FourKeyPillars Market Problem Product Business Model Market Strategy Validation Valid Hypothesis Valid Market Opportunity Ready to Launch Market Growth From Napkin to Revenue™ Discovery Model © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 26. Key Principles • Hypothesis – Discovery – Validate • Continuous engagement with target market –Validate important decisions • Planning is good, but learning is better • Fail fast – discover fast! © Copyright 2012 to 2013, The Lûcrum Group, Inc
  • 27. Thank You! Tom Evans The Lûcrum Group tevans@napkintorevenue.com @napkintorevenue www.napkintorevenue.com +1.512.961.5267 © Copyright 2012 to 2013, The Lûcrum Group, Inc