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Intelligently class 12 2012


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Product Management 101: The Search for Product-Market Fit

Intelligently class 12 2012

  1. 1. Product Management 101:The Search for Product-Market Fit Jeff Bussgang General Partner, Flybridge Capital Senior Lecturer, Harvard Business School December 10, 2012 CONFIDENTIAL PRESENTATION | PAGE1
  2. 2. Session Objectives• What is great product management?• What people mean when they use the phrase, “Product Market Fit” (PMF), plus: – Customer Development Process – Lean Start-Up Theory• Help you devise your approach to achieving PMF and avoid wasting a lot of money CONFIDENTIAL PRESENTATION | PAGE2
  3. 3. Agenda• Introduce Concepts – 30 minutes• Exercise – 30 minutes• Debrief – 15 minutes• Q&A and Wrap – 15 minutes CONFIDENTIAL PRESENTATION | PAGE3
  4. 4. Context for My Perspective• General Partner at Flybridge Capital, early-stage VC firm in Boston/NY, $560M under management 60+ portfolio companies• Senior Lecturer at Harvard Business School• Former entrepreneur Cofounder/Pres. Upromise (acq’d by SallieMae) VP at Open Market (IPO ‘96)• Author: Mastering the VC Game CONFIDENTIAL PRESENTATION | PAGE4
  5. 5. Leading Thinkers/Books/Blogs• Geoffrey Moore: Crossing the Chasm (read this!)• Steve Blank: Customer Development Process (read Four Steps to the Epiphany)• Eric Ries: Lean Startups (read this too!)• Marty Cagan: Silicon Valley Product Group (great book and blog)• HBS Prof Tom Eisenmann: Launching Tech Ventures (great blog)• Sean Ellis: Startup Marketing (great blog)• Andrew Chen: Growth Hackers (great blog) CONFIDENTIAL PRESENTATION | PAGE5
  6. 6. Startup 1. A team launching a new product under conditions of extreme uncertainty 2. A vehicle for testing hypotheses about such an entityEntrepreneurship: the pursuit of opportunity beyondresources you currently control - HBS Professor Howard Stevenson 6 CONFIDENTIAL PRESENTATION | PAGE6
  7. 7. Old School Product Management• Report to: Marketing• Output: Requirements Documents• Methodology: Waterfall• Product lifecycles: Years• Decision-Making: Opinion-Driven CONFIDENTIAL PRESENTATION | PAGE7
  8. 8. Modern Product Management• Report to: CEO• Output: Prototypes• Methodology: Agile• Product lifecycles: Weeks• Decision-Making: Data-Driven CONFIDENTIAL PRESENTATION | PAGE8
  9. 9. Customer Development vs. Product Development Product Development Concept/ Product Alpha/Beta Launch/ Bus. Plan Dev. Test 1st Ship Customer Development Customer Customer Customer Company Discovery Validation Creation BuildingSource: Steve Blank CONFIDENTIAL PRESENTATION | PAGE9
  10. 10. Product Management Skills• Responsibilities: – Define the new product to be built – Secure the resources to build it – Manage its development, launch and ongoing improvement – Lead the cross-functional product team• Attributes: – Ability to influence and lead – Resilience and tolerance for amibiguity – Business judgment and market knowledge – Strong process skills and detail orientation – Fluency with technology and implications on product design, business – Design/UX instincts Mini CEO – with none of the authority CONFIDENTIAL PRESENTATION | PAGE10
  11. 11. The Lean Startup• Many startups fail because they waste capital and time developing and marketing a product that no one wants• Lean startups rapidly and iteratively test hypotheses about a new venture based on customer feedback, then quickly refine promising concepts and cull flops• Being lean does NOT mean being cheap, it is a methodology for optimizing—not minimizing— resources expenditures by avoiding waste• Being lean does NOT mean avoiding rigorous, analytical or strategic thinking 11 CONFIDENTIAL PRESENTATION | PAGE11
  12. 12. Lean Startup Principles• No idea survives first customer contact, so get out of the building ASAP to test ideas• Goal: validation of business model hypotheses, based on rigorous experiments and clear metrics• Minimum viable product (MVP): smallest set of features/marketing initiatives that delivers the most validated learning• Rapidly pivot your MVP/business model until you have validation and product-market fit (PMF)• Don’t scale until you have achieved PMF 12 CONFIDENTIAL PRESENTATION | PAGE12
  13. 13. Crossing The Chasm CONFIDENTIAL PRESENTATION | PAGE13
  14. 14. Where are You? Before Product-Market Fit: After Product-Market Fit: Search & Validation Scaling & Optimization• Lean startup approach • Building a robust, feature-rich• Hunch-driven hypotheses product• Minimum viable product (MVP) • Crossing the chasm• Customer development process • Metrics, analytics, funnels• Selling to early adopters • Designing for virality &• Pivoting scalability• Bootstrapping • Challenges with corporate partnerships• Small, founding team • Building a brand• Product-centric culture; informal roles • Scaling the team; more formal roles• Early in sales learning curve • Scaling a sales force CONFIDENTIAL PRESENTATION | PAGE14
  15. 15. Tools/Techniques• Structured idea generation • Conversion funnel analysis• Business model generation • Landing page optimization• Customer discovery process • SEM/SEO optimization• Focus groups • Inbound marketing design• Customer survey • PR strategy• Persona development • Customer support analysis• Competitor benchmarking • Product feature prioritization• Wireframing • Sales pitch• Prototype development • Lead qualification• Usability testing • Bus dev screening• Charter user program • Net Promoter Score• A/B test • Lifetime value vs. Customer acquisition costs 15 CONFIDENTIAL PRESENTATION | PAGE15
  16. 16. “Lessons Learned” Drives Funding Business Test LessonsConcept Plan/Canvas Hypotheses Series A Learned Do this first instead of fund raising (or raise seed round to test hypotheses…rigorously)Source: Steve Blank CONFIDENTIAL PRESENTATION | PAGE16
  17. 17. Exercise: Blackberry 10 1. Milk cash cowStrategic Choices 2. Copy iPhone 3. Leapfrog CONFIDENTIAL PRESENTATION | PAGE17
  18. 18. Exercise Instructions• Pick a product development methodology – Agile vs. Waterfall• Pick the product manager’s role – Czar – Democratic leader – Oligarchy / committee• Allocate 100 points across key product features – Apps – Screen / keyboard – Form factor (small, light) – Browser / reading• Design a falsifiable test to help you with your scoring CONFIDENTIAL PRESENTATION | PAGE18
  19. 19. A Few Resources• My blog:• Quora on product management: • (product mgt skills) • (Google product mgt)• HBS Case Note on Product Mgt - CONFIDENTIAL PRESENTATION | PAGE19
  20. 20. Product Management 101:The Search for Product-Market Fit Jeff Bussgang @bussgang December 10, 2012 CONFIDENTIAL PRESENTATION | PAGE20