How to Build successful Product- Customer Development
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How to Build successful Product- Customer Development by Ibrahem Faza, at a product folks meetup in Amman, Jordan
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How to Build successful Product- Customer Development
- 1. Product Managers in Jordan 5th Meetup How to successful Product Ibrahim Faza July 23rd 2016
- 2. About Me Ibrahim Faza @ifaza1 Entrepreneur, Investor & startup adviser Cofounded startups in Mobile payment, Social news and ICT. Seed fund founding manager @ KAUST Managing Luminus Innovation Department Managing EU funded Innovation & Entrepreneurship center in Irbid
- 3. Concept/ Seed Round Product Dev. Alpha/Beta Test Launch/ 1st Ship Product Development Product Development Model
- 4. What is your product? Your Product in not Your Product
- 5. Business Model - Xerox
- 6. Do you know what customers need? Product Development = Experiment
- 7. Turn Your Business Idea into Experiment Define your customer, problem & solution Hypothesis What are your riskiest core assumption, success criteria & experiment type 1.Exploration -> Understand problem 2.Pitch -> Measure demands 3.Concierge -> Deliver customer expectation What did you learn? Define Your Hypothesis Plan Your Experiment Run Your Experiment 2 31 Pivot or Persevere
- 8. Turn Your Business Idea into Experiment 1.Exploration -> Understand problem Tools: Customer interviews and observation 2.Pre-sales -> Measure demands Tools: Ads, Campaigns, Landing page, Sale Simulation … 3.Concierge -> Deliver customer expectation Tools: MVP
- 9. 1- Customer Interview It’s Not • About pitching or selling • Surveys or Focus groups • Conversations with your colleagues and friends It’s all about • Learning, Testing your hypotheses about customer needs and problems What’s the point?
- 10. Ask Right Questions • Ask open-ended questions: you do not want yes/no answers. Ask: What? Why? Why not? Not: Is? Are? Would? • Ask about the past, present Not the future • Ask behavioural questions first. What do they do? What are their problems? How do they currently address them? • Finish with: What did I forget to ask? Who else should I speak with? Can you make an introduction?
- 11. Minimum Viable Product - MVP The minimum “product” which has just enough features to deliver value to customer and gather validated learning, with the least effort.
- 12. Turn Startup into Experiment Explainer Video
- 13. Turn Startup into Experiment A Landing Page
- 14. Turn Startup into Experiment MVP (Wizard of Oz)
- 15. Turn Startup into Experiment Raise Funds from Customers
- 16. Thanks Q & A
Editor's Notes
- The business model around Xerox Model 914, introduced to the public in 1959, has become a classical example of how a new technology sometimes needs a new business model to become successful. The Xerography technology, to produce images using electricity that avoids the use of wet chemicals, was superior to other available methods, but also very expensive. When Haloid (later renamed Haloid Xerox and then Xerox Corporation) tried to find marketing partners for its Model 914 the company was constantly turned down by the likes of GE, IBM and Kodak. Haloid decided to lease the equipment, instead of selling it, at a relatively low cost and then charge a per copy fee for copies in excess of 2000 copies per day. The company provided all the required supplies, service and support and the customer could cancel the lease on only fifteen day's notice. This was a bold move given that the average business copier at that time produced an average of 15-20 copies per day. Haloid took a large risk as customers were only committed to the monthly lease payment and paid no more unless the performance of the Model 914 led them to make more than 2000 copies. The Model 914 became a huge success, with customers averaging two thousand copies per day (instead of month) and the company sustained a compound annual growth rate of 41% over a 12 year period. Also, the company became highly incentivized to develop faster machines that could handle high volumes with maximum machine uptime and availability.
- Dropbox minimum viable product Before their launch, Dropbox had already got 5K subscribers, all based on their video. Dropbox is a fast growing company with funding in excess of $250 million, ~80 employees, 50 million users, and $240 million in revenue. They started with an explainer video – a 3m screencast published on Hacker news. The screencast was enough to give the early adopters a hint of the product experience. And enough to get many smart people to give them “the same feedback as if putting a product in their hand”, says Drew on sllconf 2010.
- Zappos shoes is the biggest online shoe retailer, with annual sales exceding $1 billion. The founder went to local shoe shops. He would asked the owner’s permission to take photos of shoes and put them online. Once the orders started flown in, he went to the shop, bought the pair that was ordered, shipped it, handled payments, returns… all of it himself, and by hand. This was not a scalable business. But it was an experiment designed focused on answering one question: is there already sufficient demand for a superior online shopping experience for shoes? Uber,
- crowdfunding campaign on platforms such as Kickstarter, IndieGoGo Double fine adventure raised over a $1 million in less than 24 hours
- Ohno was also instrumental in developing the way organisations identify waste, with his "Seven Wastes" model which have become core in many academic approaches[citation needed]. These wastes are: 1. Delay, waiting or time spent in a queue with no value being added 2. Producing more than you need 3. Over processing or undertaking non-value added activity 4. Transportation 5. Unnecessary movement or motion 6. Inventory 7. Reduction of Defects Ohno is also known for his "Ten Precepts" to think and act to win.[4] You are a cost. First reduce waste. First say, "I can do it." And try before everything. The workplace is a teacher. You can find answers only in the workplace. Do anything immediately. Starting something right now is the only way to win. Once you start something, persevere with it. Do not give up until you finish it. Explain difficult things in an easy-to-understand manner. Repeat things that are easy to understand. Waste is hidden. Do not hide it. Make problems visible. Valueless motions are equal to shortening one's life. Re-improve what was improved for further improvement. Wisdom is given equally to everybody. The point is whether one can exercise it.