2013-06-26: Two Approaches To Product Development For Lean Startups


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By Heather Sarkissian

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2013-06-26: Two Approaches To Product Development For Lean Startups

  1. 1. H E A T H E R S A R K I S S I A N D A P - N E W P R O D U C T I N N O V A T I O N
  2. 2. OVERVIEW Background on Product Innovation at DAP Two Approaches for the Lean Start Up § Develop End User Research Capabilities § Leverage Open Innovation 2
  3. 3. ROLE OF A NEW PRODUCT INNOVATION MANAGER Role created a year or so ago to help DAP focus on breakthrough product innovation. Experience at lean organizations has been key. Year 1 – Building a Foundation for Innovation Year 2 – Taking Risks 4
  4. 4. WHAT IS PRODUCT INNOVATION Definitions vary. At DAP product innovation means § Making jobs cheaper, faster, easier to do; § Providing a solution to a previously unmet need or developing a significantly better solution than what is currently available; and § It’s not just a better mousetrap. 5
  5. 5. DAP’S PRODUCT DEVELOPMENT PROCESSES 3 Phase Discovery Process § Ideation § Opportunity Definition § Concept Development Stage Gate Process § 5 gates 6
  6. 6. END USER RESEARCH Primarily qualitative research methods aimed at: §  Understanding and being able to empathize with a specific group of end users doing a certain type of activity §  EX) General Contractors and Remodelers using cartridge construction adhesives §  Developing a clear understand of how they prepare, carry out, and complete a certain types of activity – task analysis §  Developing an understanding of the different types of end users that carry out this activity – personas §  Identifying opportunities to better satisfy these end users 8
  7. 7. AN EXAMPLE OF END USER RESEARCH General Contractors and Remodelers using cartridge construction adhesives § Research Method § Task analysis § Personas § Opportunities to better satisfy these end users 9
  8. 8. FREE RESOURCES ON HOW TO DO END USER RESEARCH Google Ventures Startup Lab workshop: User Research, Quick 'n' Dirty §  https://www.youtube.com/watch?v=WpzmOH0hrEM §  This is an excellent primer, and an easy way to get started. d.school Bootcamp Bootleg on Design Thinking §  http://dschool.stanford.edu/use-our-methods/ §  A variety of methods explained 10
  9. 9. FREE RESOURCES ON HOW TO DO END USER RESEARCH How to interview and carry out ethnographies §  http://vimeo.com/1269848 §  Illinois Institute of Technology's Institute of Design, ID offers a great how to video on gleaning quality insights Human Centered Design Toolkit (IDEO) §  http://www.ideo.com/work/human-centered-design-toolkit/ §  designed for NGOs, but tools translate well for developing products for businesses. 11
  10. 10. IN SUMMARY § End User Research is a significant competitive advantage. § Why leave your product’s success up to luck or personal intuition, when your target end-users can tell you what they will buy. § End User Research is not as hard as it seems, there are lots of great free resources out there. § End User Research gets easier the more you do it. § If you do not have the right fit personality, time or patience, End User Research is a great way for someone to earn sweat equity. 12
  11. 11. WHAT IS OPEN INNOVATION? First coined by Henry Chesbrough (UCAL Berkley) “Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology”. P&G’s Growth Strategy - 50% of innovation from and 50% through their labs Expecting there are great ideas outside of your organization 14
  12. 12. HOW OPEN INNOVATION APPLIES TO A LEAN STARTUP Most anyone can leverage open innovation: § No product, no company, want to be an entrepreneur § Have a company, looking for new products § Have a product, but it could be better with partners Ways of Leveraging Open Innovation: § Checking out local colleges and universities for inventions § Seeking out inventors, state level inventor organizations or inventions firms like Invention Home and Edison Nation § Looking for companies that have technologies you could license and use for example in your software product 15
  13. 13. HOW DAP IS LEVERAGING OPEN INNOVATION § Culture of openness to outside ideas § Ability to understand and empathize with inventors and entrepreneurs § Open Innovation Process § Method of attracting inventors and entrepreneurs § Examples of product successes 16
  14. 14. HOW OPEN INNOVATION CAN FAIL § Not Invented Here Syndrome § Dissimilar Goals § Communication Challenges § Insufficient Resources to Manage Open Innovation 17
  15. 15. THANK YOU For more resources of information, just let me know and I can share them with you. Twitter: hsarkissian 18