AIA2018 - Federico Mammano - Product-Market Fit Means Becoming Adult

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This document discusses the concept of product-market fit and how it relates to different stages in a product's life cycle. It defines product-market fit as becoming adult and satisfying both a product that meets customer needs and a market that a company wants to serve. The document advocates for an innovative approach like kindergarteners, with a focus on curiosity, humility, and continuous learning and prototyping, rather than hidden assumptions that can hinder success. It contrasts this with traditional business processes that tend to be more linear and focused on execution over exploration.

Technology

Product-Market Fit
means becoming adult
Federico Mammano

Product Life CycleProduct-MarketFit
Idea
Retirement

Product-Market Fit
● What is it?
● How to get there?

Federico Mammano
Founder - VR Pioneer
Serial Entrepreneurial
Experience
TeachingEntrepreneurship.org
2 MSc & MBA

Build the tallest
freestanding
structure
in 18 minutes!
20 sticks of
spaghetti
1m string
1m tape 1 marshmallow
The whole marshmallow
must be on top

I offer
$1000
for the winning team!
Up to $250 equivalent per team member

NO WINNER IF
the tallest structure
is lower than
75 cm

Average
50 cm
-25
-13
cm
+ 5
Business
School
Students
Professionals C-Level
+50
Architects
&
Engineers
+25
(75 cm)
Kindergarteners
Comparing results

You didn't outperform
kindergarteners!
Why?

What were the
hidden assumptions
that limited your success?

Business processKindergarten process
Prototype
Refine
Prototype
Refine
Prototype
Refine
Understand
Plan
Execute
Launch!

Cognitive Bias
A cognitive bias refers to the systematic pattern of
deviation from norm or rationality in judgment
—Wikipedia
The brain imagines its own subjective world
that doesn’t correspond to the real world
—Me

“I know one thing;
that I know nothing”
—Socrates

Business processKindergarten process
● Curiosity & humility ● Cognitive Bias
vs
● Real world evidence ● Hidden assumptions
● Young ● Mature
● Small-f failureS ● 1 Big-F Failure
● Continuous prototyping ● Linear execution
● Planning
● Execution
● Learning
● Searching

Everybody
has a plan
... until they
get punched
in the mouth
—Mike Tyson

Innovation Is NOT
Business As Usual
Hidden assumptions hinder innovative initiatives

Product Life CycleProduct-MarketFit
SEARCH EXECUTEIdea
Retirement

SEARCH EXECUTE
Context Innovative Initiatives Existing Organizations
Goal Product-Market Fit Growth
Market
Early Market Mainstream Market

SEARCH EXECUTE
Management Innovation Business Administration
Activity Searching a Business Model Executing a Business Plan
Main Focus Problem Solution
Priority Empathy & Learning Optimization & Performance
Document 1 page Visual Canvas 50 pages detailed document
Duration Months Years
Progress Daily / Weekly Monthly / Quarterly
Product Minimum Viable Product Polished Featured Product

?
?
Product-Market Fit means being in a
good market with a product that can
satisfy that market.
—Marc Andreessen

Your Product satisfies a Market that satisfies YOU
You Market

I will acknowledge my Personal Success when ...
Quantitative Definition Qualitative Definition
… I will achieve … and I will feel

I will acknowledge my Personal Success when ...
Quantitative Definition Qualitative Definition
● $10K/month
● 8 hours/week with my family
● 30 employees hired
● ...
… I will achieve … and I will feel
No reference to cutomer segments,
solutions/ideas or products!

Failure Threshold
Minimum Success Metric

10 Benefits of this exercise
01 Make decisions easier w/ a North Star
03 Avoid emotional attachment
05 Define your pricing
07 Prioritize your customers to target
09 Leave room to pivot
02Align and unify the team
04Define the metrics for your experiments
06Define how much money to raise
08Prioritize your product features
10Avoid living in the dead zone

Product-Market Fit means being in a
market with a product that enable us to
achieveMinimum Success Metric
—Your Team

The best innovator is
a
childlike scientist
—Federico Mammano

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This document discusses tools for winning first customers, focusing on the importance of a growth mindset and growth hacking. It emphasizes embracing failure as an opportunity to learn and gain experience. Growth hacking involves testing innovative marketing techniques to rapidly grow a customer base with minimal resources. The key is understanding customers - who they are, where they spend time, what interests them - and then finding creative ways to reach them through content, blogs, emails, groups, influencers and more. There are no shortcuts; success requires testing ideas, learning from results, and continual improvement through an openness to feedback and new challenges.

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European Innovation Academy

1. Finding product-market fit requires consistently generating more revenue per customer than it costs to acquire and support that customer. 2. Startups that achieve product-market fit see their products "sell themselves" through word-of-mouth as users find intuitive value and are willing to justify friction. 3. True product-market fit is evident through high retention rates that show users would be disappointed without the product.

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European Innovation Academy

The document discusses various revenue models for businesses. It describes traditional models like product/service sales, subscriptions, freemium, and advertising. It also covers innovative models like razor and blades, shared economy, pay-what-you-want, dynamic pricing, tokenization, API-as-a-product, and data monetization. The document provides examples of companies using different revenue streams and advises businesses to understand their customers, market, offerings, costs, experiment, and consider scalability when choosing a revenue model.

Product-market- fit__Gilles DC_EIA23.pptx

European Innovation Academy

1. Finding product-market fit requires building a product that solves a real problem for a specific market. Startups should focus on finding a small market that has a strong need that their minimum viable product can address, rather than trying to serve a large market initially. 2. Early signals that product-market fit may be achieved include visible excitement from potential customers when seeing demonstrations, and willingness from some customers to pay for the product before it's complete. Gathering feedback from potential customers is key to iteratively understanding their needs and refining the product. 3. Once product-market fit is achieved, the product will experience rapid growth through word-of-mouth, with users actively inviting others and usage growing quickly.

"Building a Successful Team" - Jorim

European Innovation Academy

The document discusses building a successful team with diversity in gender, culture, education, interests, and skills. It recommends teams of five people and advises treating teamwork like dating by staying curious, asking questions, and respecting cultural differences. The document also encourages participants to focus on the team over any single idea, take quick action during the event, have fun, and make the most of talks and mentors.

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European Innovation Academy

This document contains information about Anna De Stefano and her work helping startups. It discusses her background creating a successful legal publishing company and mentoring over 30 startups. It provides tips for startups including focusing on defining problems precisely, listening, adapting, and ensuring their solution is better than competitors. It also outlines the main business models of B2C, B2B, and their variations.

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The document discusses the principles and process of design thinking. It explains that design thinking involves discovering customer needs through research, defining the core problem to address, developing solutions through prototyping, and delivering the best solution. The design thinking process is illustrated as a "double diamond" with phases of discovery, definition, development, and delivery. Empathy with customers is emphasized to understand their context, needs, and experiences rather than focusing on preconceived solutions.

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AIA2018 - Federico Mammano - Product-Market Fit Means Becoming Adult

1. Product-Market Fit means becoming adult Federico Mammano

2. Product Life CycleProduct-MarketFit Idea Retirement

3. Product-Market Fit ● What is it? ● How to get there?

4. Federico Mammano Founder - VR Pioneer Serial Entrepreneurial Experience TeachingEntrepreneurship.org 2 MSc & MBA

5. 8 volunteers on the stage

6. Build the tallest freestanding structure in 18 minutes! 20 sticks of spaghetti 1m string 1m tape 1 marshmallow The whole marshmallow must be on top

7. I offer $1000 for the winning team! Up to $250 equivalent per team member

8. NO WINNER IF the tallest structure is lower than 75 cm

9. http:// bit.ly/aia18

10.

11. Average 50 cm -25 -13 cm + 5 Business School Students Professionals C-Level +50 Architects & Engineers +25 (75 cm) Kindergarteners Comparing results

12. You didn't outperform kindergarteners! Why?

13. What were the hidden assumptions that limited your success?

14. Business processKindergarten process Prototype Refine Prototype Refine Prototype Refine Understand Plan Execute Launch!

15.

16.

17. Cognitive Bias A cognitive bias refers to the systematic pattern of deviation from norm or rationality in judgment —Wikipedia The brain imagines its own subjective world that doesn’t correspond to the real world —Me

18. “I know one thing; that I know nothing” —Socrates

19. Business processKindergarten process ● Curiosity & humility ● Cognitive Bias vs ● Real world evidence ● Hidden assumptions ● Young ● Mature ● Small-f failureS ● 1 Big-F Failure ● Continuous prototyping ● Linear execution ● Planning ● Execution ● Learning ● Searching

20. Everybody has a plan ... until they get punched in the mouth —Mike Tyson

21. Innovation Is NOT Business As Usual Hidden assumptions hinder innovative initiatives

22. Product Life CycleProduct-MarketFit SEARCH EXECUTEIdea Retirement

23. SEARCH EXECUTE Context Innovative Initiatives Existing Organizations Goal Product-Market Fit Growth Market Early Market Mainstream Market

24. SEARCH EXECUTE Management Innovation Business Administration Activity Searching a Business Model Executing a Business Plan Main Focus Problem Solution Priority Empathy & Learning Optimization & Performance Document 1 page Visual Canvas 50 pages detailed document Duration Months Years Progress Daily / Weekly Monthly / Quarterly Product Minimum Viable Product Polished Featured Product

25. SEARCH EXECUTE Uncertainty Money

26. ? ? Product-Market Fit means being in a good market with a product that can satisfy that market. —Marc Andreessen

27. Your Product satisfies a Market that satisfies YOU You Market

28. I will acknowledge my Personal Success when ... Quantitative Definition Qualitative Definition … I will achieve … and I will feel

29. I will acknowledge my Personal Success when ... Quantitative Definition Qualitative Definition ● $10K/month ● 8 hours/week with my family ● 30 employees hired ● ... … I will achieve … and I will feel No reference to cutomer segments, solutions/ideas or products!

30. I will acknowledge my Personal Success when ... Quantitative Definition Qualitative Definition ● $10K/month ● 8 hours/week with my family ● 30 employees hired ● ... … I will achieve ● Financially secure ● Proud of me because … ● Trusted to prove xyz wrong ● Perceived by xyz as … ● ... … and I will feel

31. Failure Threshold Minimum Success Metric

32. 10 Benefits of this exercise 01 Make decisions easier w/ a North Star 03 Avoid emotional attachment 05 Define your pricing 07 Prioritize your customers to target 09 Leave room to pivot 02Align and unify the team 04Define the metrics for your experiments 06Define how much money to raise 08Prioritize your product features 10Avoid living in the dead zone

33. Product-Market Fit means being in a market with a product that enable us to achieveMinimum Success Metric —Your Team

34.

35. The best innovator is a childlike scientist —Federico Mammano

36. Thank you! Federico Mammano

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