Product Discovery At Google

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A talk I gave at Google on Strategy and Product Discovery

We discussed:
Discovering Features and Products (Product Strategy)
Discovering Products and Product Lines (Product Line / Company Strategy)
Marty Cagan: Using High Fidelity Prototypes for Product Discovery

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Product Discovery At Google

  1. 1. Product Discovery @ Google John Gibbon 9/1/09
  2. 2. • Features and Products • Products and Product Lines • Marty Cagan: High Fidelity Prototypes • Roadmaps: Telling a Story • Organizational Responsibilities Spectrum Product Discovery
  3. 3. • Internal ▫ Stakeholders & experts, • Clients ▫ Site Analytics, Surveys, Client Visits, Informal Conversations, Usability Testing, • Outside Experts ▫ Your Network, Partners/Suppliers, Magazines, Trade Associations Conferences, Market Influencing Clients • Internet and Published Sources ▫ Blogs, Traditional Publications, Trade Journals, Competitor websites, Google, Quantcast, Company listings (Hoovers, Tradevibes), Tradeshows, Industry Research (Forrester, Gartner, Yankee, IDC, Giga) • Other • Market and Demographic Analysis, Other Industry Best Practices Where Get Product and Feature Ideas?
  4. 4. Success Metrics -Revenue -Market Share -New Users -Increase Usage -Increased Customer Satisfaction: NPS -Other?
  5. 5. The Biggest Roadblock to Effective Product Strategy in Most Companies is Lack of effective Product Innovation Funnel
  6. 6. Product Innovation Funnel • Analyze and prune at every stage • How (metric?) • Who (PM, VP, Product Board)? • OK to fail
  7. 7. SHORT TERM DELIVERABLES FOR LONG TERM GOALS
  8. 8. Why Supporting Sales (Customer Support) Isn’t too Bad … • While training sales is required and • Customer surveys and site analytics are important • Talking to actual users is imperative • Basic client analysis
  9. 9. WULA • Who are you? ▫ Your company, your role (analyst, “Mom”) • What do you do? ▫ What problems trying to solve? How do you provide value? • Win: ▫ Why us? What didn’t like? • Usage: ▫ What problems solving with what features? • Loss / Attrition: ▫ Why not us? How solving now? Is there a feature / issue resolved in which consider later?
  10. 10. Ideas for Products and Product Lines
  11. 11. Where should we go? Why will we be successful there? How do we get there? • Problem? ▫ Opportunity • Solution? ▫ Unique offering or breakthrough (IP) ▫ Why you? Competition? • Business Model ▫ How make money? ▫ Money need? ▫ Team Company or Product Portfolio Strategy
  12. 12. Is There An Opportunity? • Is there customer pain? • Is the pain sufficient to generate a compelling reason to buy? PAIN REASON TO BUY Sue Barsamian: “Reality Marketing for Startup”
  13. 13. Is The Opportunity Big and Growing? • Are there enough customers with this profile to make a market? • Is it growing? PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY PAIN REASON TO BUY Sue Barsamian: “Reality Marketing for Startup”
  14. 14. How To Size Your Market Build a tops down and bottoms-up model for your market • Empirical • Qualitative research Your revenue and unit forecast • Analyst data • Proxy modeling Total Market Total Addressable Market Your Projected Share Sue Barsamian: “Reality Marketing for Startup”
  15. 15. Spicy
  16. 16. Why will we be successful there? -Core Competencies / Differentiation -Mission -Competitive Analysis
  17. 17. How do we get there? -Financial / Dev Plan -Tech Strategy -Partnering Strategy
  18. 18. Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture new demand How to Create Uncontested Market Space and Make Competition Irrelevant – Kim and Mauborgne
  19. 19. Strategic Trade-offs
  20. 20. The Boston Consulting Group’s Growth- Share Matrix 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- 0 MarketGrowthRate 10x 4x 2x 1.5x 1x Relative Market Share .5x .4x .3x .2x .1x Dogs 8 7 3 ? Question marks ? 2 1 Cash cows 6 Stars 5 4 Accelerate a Few Divest Most Liquidate Harvest Invest
  21. 21. Ansoff Matrix: Product Strategy Current Products Future Products Current Markets Future Markets Market Penetration Product Development Market Development Know Customers and Market Rich Product Offerings
  22. 22. •New Product vs. Mature Product •New Market vs. Existing Market •Short Term vs. Long Term Revenue •Usage vs. Revenue •Client A vs. Client B •Research vs. Development •High Risk vs. Low Risk Strategic Balance Trade Offs Trade-Offs
  23. 23. Marty Cagan and Product Discovery 1. Valuable 2. Usable 3. Feasible
  24. 24. Document Use Cases with Prototypes 1. Better Understood Since Closer to Actual Experience 2. Different Fidelity / Technologies: - Lower Fidelity -PowerPoint / Visio (Storyboarding) - HTML / Code Development Tools: - Weebly, Google Sites, Dreamweaver, FrontPage, etc. - VisualBasic, etc. - High Fidelity Prototyping Tools: -Axure, Irise, etc
  25. 25. Requirements: High Fidelity Prototypes 1. Realistic Enough to Test Idea with Target Customer 2. Refine Business Idea Before Commit 3. Helps Product Be Better Understood Throughout Org 4. Underlines Functionality and User Experience Intertwined 1/29/09
  26. 26. Roadmaps
  27. 27. Roadmaps • Product Vision • Product Themes • Specific Enhancements ▫ Market Penetration ▫ Market Development ▫ Product Development
  28. 28. 2008 Products Portfolio / Feature Roadmap * Items in italics are tentative and subject to further planning 2009 2010 Improved Analytics Product Line B (with product B1 , B2, and B3) Investigating in ‘08 & ‘09; releasing some in ’09 & ‘10: China, Latin America, Italy, Brazil, Russia, Partner X – Analytics / Biz Intelligence Partner Y (CRM), Partner C (ERP) New Algorithms Introduced Upgrades Improved Reporting Last updated 10-Sept-08 Localization (New Markets) Improved Analytics SaaS Version Available Upgrades Third Party Integration Product Line A (with product A1 and A2) SaaS Version Available Product A1 – Integration with Data Integrator product Also investigating mobile … Product Vision “Strengthen the Standard by growing products and markets for our product” or “Enabling CFOs …” “making the joy of giving fun and easy to experience….”
  29. 29. Client Server Office Business Solutions
  30. 30. Tell a Story (depends on your message and your audience but …)
  31. 31. Other Roadmap Formats (Brian Lawley 280Group “Expert Product Management”) • Internal or External Facing • Trends: • Competitive, Market, and Technology • Technology: • External Factors / Internal Dev • Checkout 280Group Product Roadmap Toolkit
  32. 32. 3 Year Technology Roadmap 2006 2007 2008 Platform Products Tools Release 1 Release 2 Release 3 Product 1 Product 2 Product 3 Product 4 ©2006 280 Group LLC. All rights reserved.
  33. 33. Organization Responsibilities Spectrum
  34. 34. Product Responsibilities Spectrum • Engineering - How • Project / Program Management - Organizing development and release/launch tasks • Product Management - What / Inbound (“product owner/GM”) - Agile “Product Owner” and “Product (Marketing) Manager” • Product Marketing - Messaging / Outbound • Marketing Communications – Company level communications: branding and advertising
  35. 35. Product Feature Requests / Ideas New Customer / Market Market Requirements Organization from a Product Process Viewpoint Existing Customers Pro. Services Executive Team QA/ReleaseDevelopment Product Management Doc/Support Post Deploy Support Sales Support Market Comm Features Test Results Function / UI Rqmts Docs Functional /UI Requirements Releases Releases What are your core competencies / value-add? What can you contract? Financial, Legal, Admin, HR, IT, Support
  36. 36. Additional Slides
  37. 37. Financial Plan -Costs -Benefits
  38. 38. Basic Financial Plan • Assumptions 2009 2010 2011 • # Customers / Unique Visitors • # Employees • Revenue • Subscription / License • Advertising / Partnership • Professional Services • Cost of Goods (Sales/Service) • Gross Profit (Rev – COG) • Operating Expenses • Product Development • Marketing • General and Administration • EBITDA (Gross Profit – Expenses) (basic P&L) • Cash Needs
  39. 39. Market Segment Analysis Segment Needs How Satisfy % Our Sales % Industry Sales Size/Gr owth Rating (1-5) Consumer SMB Large Enterprise Linda Gorchels: “The Product Manager’s Handbook
  40. 40. Basic Competitive Analysis Description Strengths Weaknesses Price Product A Product B Product C
  41. 41. Competitive Analysis Via Advertised Positioning ERP Accounting Vendors Lawson MBS Best SAP Oracle SSA Understand SMB Needs X Understand Biz Fundamentals X Flexible, Adaptable X X X Affordable X X X Lawson Abinanti “Messages That Matter” Assess key success factors in your industry and how others stack up
  42. 42. Competitive Analysis Alternatives Today Future Implications Direct Competitors Substitute Budget Organization Linda Gorchels: “The Product Manager’s Handbook
  43. 43. Your Value Proposition For Target Customer Who Problem / Pain ( “must have” not “nice to have”) The Product Name / Product Category That Solution / Key Problem Solving Capability Unlike Competitors / Alternatives Our Product Key Differentiators / Product Features

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