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Business for engineers part 2: Product conception

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A quick introduction to basic business concepts aimed at engineers and all who wish a simple and quick explanation. Part 2 in series is covering the product conception: where do the ideas for new product and services come from?

Published in: Business

Business for engineers part 2: Product conception

  1. 1. BUSINESS FOR ENGINEERS: PRODUCT CONCEPTION Jan Isakovic @iYan
  2. 2. PREVIOUSLY ON.. Short Long Sales cycle Has a budget Assembled a solution out of parts Been actively looking for a solution Is aware of having a problem Has a problem
  3. 3. PRODUCT CONCEPTION • Solution in search of a problem • A problem in search of the solution ! • What is the difference?
  4. 4. KEY DIFFERENCES Solution in search of a problem • Technology is usually the starting point • “We have this cool tech, who can we sell it to?” • Key challenge: persuading the customer that they have this problem • “Analysts say 50% of X will have this kind of product by 2016, so you should buy it” Problem-oriented products • A result of direct market feedback or research • Key challenge: developing the technological solution to the problem • “You’re doing X to solve this problem now - with our product, you can solve it for less!”
  5. 5. TECH-FIRST CYCLE Technology is detected Product development Product sales Engineering Sales Majority of effort “Why aren’t you selling?!” First market feedback
  6. 6. PROBLEM-FIRST CYCLE Sales Engineering Sales Engineering Customer identifies a problem Solution design Solution feedback Product development Product sales Sales Salesmen find out about the problem “This is how we could profitably solve it” First market feedback Majority of effort “Here’s the solution you need.”
  7. 7. BUSINESS PROCESSES AT PROBLEM-FIRST • Demands a tight sales-engineering integration • Key processes: • Market feedback detection, filtration and reporting • Solution design and business model design • Solution testing • Sales
  8. 8. What about your company’s products/services?
  9. 9. NEXT CHALLENGE • Customers may want other features once they can actually buy the product • This requires new product development • How can we optimize this effort? • Answer: Lean development and MVPs • The topic of next workshop :) Sales Engineering Sales Engineering Customer identifies a problem Solution design Solution feedback Product development Product sales Sales
  10. 10. BUSINESS FOR ENGINEERS 1: Customers and sales 4: Value proposition 2: Product conception 5: Core competencies 3: Minimum Viable Product 6: Company values Jan Isakovic @iYan

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