This document discusses an approach to bootstrapping new product development without significant initial investment. It emphasizes starting with the customer's problem and value proposition, rather than a product idea. Potential personas are brainstormed and scored to identify a beachhead segment that is accessible, can be dominated, and is large but not too large. Key assumptions are defined and success metrics and criteria are outlined to test hypotheses through an experimental process with a defined budget.
The mobile paradox is that the massively reduced screen real estate makes creating persuasive services much harder than on the desktop web. There is simply less room and time to create trust. And of course the user is only too well aware that they are paying for the priviledge…. This talk will examine the challenges as they have applied to a live mobile service - Flirtomatic.
The document discusses eight growth engines for startups: the freemium model, problem-solving products, minimum viable products, starting locally, inbound marketing to scale, virality, expanding to new markets. It provides examples of companies that successfully utilized these growth engines like LinkedIn, GitHub, Uber, and Snapchat.
New product development strategy of samsunghiteshkrohra
This document is a project report on Samsung's new product development strategy. It provides an introduction to new product development and discusses types of new products, the role of product development in companies, and entrepreneurial new product development. It then introduces Samsung and provides background on its history and objectives. The report analyzes Samsung's methodology, data collection, R&D investments, and compares it to other brands. It concludes that new product development is critical to a company's long term sustainability and competitive advantage.
The document provides an overview of different methods for quickly sizing markets, including total market potential, total addressable market (TAM), segmented addressable market (SAM), and expected share of addressable market (ESAM). It then describes eight specific approaches to quickly size markets: using analyst spend statistics; census data; LinkedIn data; directories; a power curve analysis; resource constraints; and Bureau of Labor Statistics data. Each approach is illustrated with an example of how it could be applied to estimate the market size for a particular product or service.
The document discusses strategic planning, sales forecasting, and budgeting. It defines strategic planning as deciding on long-term objectives and strategies. Marketing plays a key role in strategic planning by providing market information and developing competitive advantages. Sales strategy is developed from marketing strategy through marketing mix and promotional strategies. There are qualitative and quantitative methods for sales forecasting, including executive opinion, regression analysis, and moving averages. The sales budget estimates sales volume and expenses for purposes of planning, coordination, and control.
How to delight customers? Like Minds conference, 28-29 October 2010, Exeter UKOded Ran
How to delight customers? Applying research and sharing some lessons from our work on Windows Phone 7.
Presented at a workshop at the Like Minds conference, 28-29 October 2010, Exeter, UK.
This document summarizes Promo Focus' services for tangible advertising products and campaigns. It discusses conducting a client needs analysis to select the right products and develop an effective promotional strategy. Promo Focus has a large product selection, design services, and fulfillment capabilities to execute fully integrated marketing campaigns through direct mail, trade shows, and other channels.
Product lifecycle is short: build products that matterMoriya Kassis
Great things happen to engineers who productize.
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Product lifecycle is short. Build products that matter.
The mobile paradox is that the massively reduced screen real estate makes creating persuasive services much harder than on the desktop web. There is simply less room and time to create trust. And of course the user is only too well aware that they are paying for the priviledge…. This talk will examine the challenges as they have applied to a live mobile service - Flirtomatic.
The document discusses eight growth engines for startups: the freemium model, problem-solving products, minimum viable products, starting locally, inbound marketing to scale, virality, expanding to new markets. It provides examples of companies that successfully utilized these growth engines like LinkedIn, GitHub, Uber, and Snapchat.
New product development strategy of samsunghiteshkrohra
This document is a project report on Samsung's new product development strategy. It provides an introduction to new product development and discusses types of new products, the role of product development in companies, and entrepreneurial new product development. It then introduces Samsung and provides background on its history and objectives. The report analyzes Samsung's methodology, data collection, R&D investments, and compares it to other brands. It concludes that new product development is critical to a company's long term sustainability and competitive advantage.
The document provides an overview of different methods for quickly sizing markets, including total market potential, total addressable market (TAM), segmented addressable market (SAM), and expected share of addressable market (ESAM). It then describes eight specific approaches to quickly size markets: using analyst spend statistics; census data; LinkedIn data; directories; a power curve analysis; resource constraints; and Bureau of Labor Statistics data. Each approach is illustrated with an example of how it could be applied to estimate the market size for a particular product or service.
The document discusses strategic planning, sales forecasting, and budgeting. It defines strategic planning as deciding on long-term objectives and strategies. Marketing plays a key role in strategic planning by providing market information and developing competitive advantages. Sales strategy is developed from marketing strategy through marketing mix and promotional strategies. There are qualitative and quantitative methods for sales forecasting, including executive opinion, regression analysis, and moving averages. The sales budget estimates sales volume and expenses for purposes of planning, coordination, and control.
How to delight customers? Like Minds conference, 28-29 October 2010, Exeter UKOded Ran
How to delight customers? Applying research and sharing some lessons from our work on Windows Phone 7.
Presented at a workshop at the Like Minds conference, 28-29 October 2010, Exeter, UK.
This document summarizes Promo Focus' services for tangible advertising products and campaigns. It discusses conducting a client needs analysis to select the right products and develop an effective promotional strategy. Promo Focus has a large product selection, design services, and fulfillment capabilities to execute fully integrated marketing campaigns through direct mail, trade shows, and other channels.
Product lifecycle is short: build products that matterMoriya Kassis
Great things happen to engineers who productize.
How to create personas and how can (and should) engineers take a bigger part in the product process.
Product lifecycle is short. Build products that matter.
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The document discusses how marketing is shifting from advertising messages to focusing on the actual product experience and conversation. It argues that remarkable products can use advertising transparently while average products use it as a smokescreen. Innovation, digital technology, design, and co-creation are becoming more important than advertising alone. Marketing is also shifting from useless messaging to providing useful services and solutions that add value to people's lives. This requires synchronizing R&D, marketing, and communications in a more collaborative way.
The Power Series Sales Proposals and PresentationsRichard Mulvey
This document discusses how to create winning sales proposals and presentations. It covers topics like deciding if a prospective client is worth pursuing, choosing between quotations and proposals, researching the client's needs, customizing the proposal, and presenting it either in person or online. When presenting, the document recommends keeping it concise and simple, beginning with an introduction, sharing the content, and concluding with a call to action. Effective proposals focus on benefits, results, and value for the client.
How To Sell To Businesses - Sales Advice for StartupsNicolas Deville
How To Sell To Businesses: actionable insights from years in the trenches.
Sales Advice for Startups.
B2C vs. B2B
SME vs. Enterprise
How to differentiate yourself
How to get the first 10 clients
Presentation on 30th July 2015 in London to early stage startups, part of @WayraUK, Telefonica's startup accelerator.
Nick from Belgium introduces business model innovation and how to help companies innovate like startups. He discusses how they help companies with innovation strategy and execution, such as designing and running internal accelerators. They also help with talent development through intrapreneurship training. The document then provides examples of different business models and revenue streams that can be explored, including free, paid, third party pays, broker/matchmaking, and mixed/subsidized models.
As professional service providers we often walk a fine line in delivering bespoke software to a diverse set of clients. Each with their own traits and desires. Clients want partnerships. So do agencies and service providers. Like in every human relationship, this calls for compromises and the need to give and take. From small to large, contracts and requirements are always contending with core Agile values. No methods, contracts or processes can replace nor dismiss the essential ingredients of understanding, openness, passion and creativity which are key in making software development a success and ensuring happy relationships. Which is often quite hard to achieve.
This presentation was part of DrupalCon Lille 2 2023 17-20 October 2023. It's for business owners, sales professionals and client facing experts offering in the professional digital services. It will share some lessons learned (sometimes the hard way) about:
• How to do digital projects with inexperienced Agile teams
• How to deliver digital services within time and budget
• Prevent overpromising
• Delivering bad news
• Negotiating contracts that are not Agile
Imre Gmelig Meijling is CEO and business owner of React Online The Netherlands. Imre worked in various roles in different agencies in Europe. He will share 25 years of lessons learned in the digital industry, sometimes the hard way. Among his clients are United Nations, Disney and Konica-Minolta. Imre has also been an active member of the Drupal community since 2006, working on the DrupalCon Europe Community Advisory Comittee. He is former chair of the Dutch Drupal Association and co creator of the Splash Awards and Drupaljam.
The document discusses the economic and social importance of business, noting that the prime function of business is to generate profit through producing and selling goods or services, and that profitability is crucial for businesses to survive long-term and provide returns to investors. It also examines how businesses create value and wealth through employment, wages, taxes, innovation, products and services that improve standards of living.
The document discusses various topics on the author's mind including everyone leaving, whether products delivered meet expectations, risk management and IT issues. It emphasizes the importance of understanding the customer's desired outcomes rather than just providing technology. Partners should work as a team with the customer to build trust, share a vision, understand each other's issues and manage risks cooperatively.
Early Stage Product Development - Incubadora SinergiaRiley Maguire
This document summarizes key points from a presentation on early stage product development by Des Traynor of Intercom. It discusses focusing products on solving real user problems, starting simply and refining over time. Products should provide clear value for customers rather than founders. Features can dilute focus, so it's important to understand user jobs and remove unnecessary steps. Distribution costs are decreasing, so startups must compete globally and stay focused on core value to remain defensible.
In overcrowded markets with many similar competitors, price is often the main factor customers use to differentiate companies. To stand out, companies should stop doing what everyone else is doing and create remarkable content that is worth talking about. Getting customers' attention is difficult due to information overload, constant disruptions, and many choices, so companies need to provide uniquely valuable content and experiences to engage customers. Marketing, design, development, and traffic generation are all important pieces of an effective business website, but the starting point should be defining the target audience and creating a content-driven marketing strategy.
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1. The document advertises an unlimited wireless mobile service plan for $89.95 per month or free if you refer 3 customers.
2. It promotes joining the business opportunity to earn bonuses for referring customers and building a sales team.
3. Key benefits highlighted include free cell phone service, website, and monthly auto-ship costs if you refer 3 customers to join.
The document discusses a sales and marketing strategy for expanding into the EMEA region. It outlines goals such as signing early clients, filling the sales pipeline with 20+ prospects, and delivering $29 million in revenue over 24 months. The strategy involves meeting with teams, researching the region and competitors, creating marketing materials, pursuing leads, and closing deals with internet service providers.
The document discusses a sales and marketing strategy for expanding into the EMEA region. It outlines goals such as signing early customers, filling the sales pipeline with 20+ prospects, and delivering $29 million in revenue over 24 months by securing 5 new clients. The strategy involves meeting with teams to learn about products and culture, researching the EMEA market and competitors, and pursuing leads through activities like customer demonstrations and RFP responses.
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The document provides details about Jasmeet Singh Sethi's typical work week as the regional head of Ericsson's ConsumerLab division. It describes his long commute on Mondays from Delhi to Gurgaon, where he tests apps while stuck in traffic. At the office, he attends status meetings and responds to internal requests. On Tuesdays, he has alignment meetings with other divisions. Wednesdays often involve traveling to conduct consumer interviews. Thursdays are spent preparing presentations for customer companies. Fridays include catch-up meetings and discussing future projects. The document highlights Sethi's efforts to understand consumers and bring their perspectives into Ericsson.
Design thinking for social business .1Fionn Dobbin
Here are the key steps in a two week roadmap to test a business:
1. Build an MVP (minimum viable product) - Develop a basic version of your product or service with core functionality but without extra features to validate your idea quickly.
2. Identify target customers - Conduct customer interviews and market research to define your ideal early adopters and learn their needs.
3. Launch marketing campaign - Promote your MVP through paid and organic channels like social media ads, blogs, and networking to generate initial awareness and interest.
4. Track customer acquisition - Monitor website traffic and conversions to understand what is driving engagement and how people are interacting with your offering.
5. Gather customer feedback - Survey and interview
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
From Concept to reality : Implementing Lean Managements DMAIC Methodology for...Rokibul Hasan
The Ready-Made Garments (RMG) industry in Bangladesh is a cornerstone of the economy, but increasing costs and stagnant productivity pose significant challenges to profitability. This study explores the implementation of Lean Management in the Sampling Section of RMG factories to enhance productivity. Drawing from a comprehensive literature review, theoretical framework, and action research methodology, the study identifies key areas for improvement and proposes solutions.
Through the DMAIC approach (Define, Measure, Analyze, Improve, Control), the research identifies low productivity as the primary problem in the Sampling Section, with a PPH (Productivity per head) of only 4.0. Using Lean Management techniques such as 5S, Standardized work, PDCA/Kaizen, KANBAN, and Quick Changeover, the study addresses issues such as pre and post Quick Changeover (QCO) time, improper line balancing, and sudden plan changes.
The research employs regression analysis to test hypotheses, revealing a significant correlation between reducing QCO time and increasing productivity. With a regression equation of Y = -0.000501X + 6.72 and an R-squared value of 0.98, the study demonstrates a strong relationship between the independent variables (QCO downtime and improper line balancing downtime) and the dependent variable (productivity per head).
The findings suggest that by implementing Lean Management practices and addressing key productivity inhibitors, RMG factories can achieve substantial improvements in efficiency and profitability. The study provides valuable insights for practitioners, policymakers, and researchers seeking to enhance productivity in the RMG industry and similar manufacturing sectors.
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The document discusses how marketing is shifting from advertising messages to focusing on the actual product experience and conversation. It argues that remarkable products can use advertising transparently while average products use it as a smokescreen. Innovation, digital technology, design, and co-creation are becoming more important than advertising alone. Marketing is also shifting from useless messaging to providing useful services and solutions that add value to people's lives. This requires synchronizing R&D, marketing, and communications in a more collaborative way.
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As professional service providers we often walk a fine line in delivering bespoke software to a diverse set of clients. Each with their own traits and desires. Clients want partnerships. So do agencies and service providers. Like in every human relationship, this calls for compromises and the need to give and take. From small to large, contracts and requirements are always contending with core Agile values. No methods, contracts or processes can replace nor dismiss the essential ingredients of understanding, openness, passion and creativity which are key in making software development a success and ensuring happy relationships. Which is often quite hard to achieve.
This presentation was part of DrupalCon Lille 2 2023 17-20 October 2023. It's for business owners, sales professionals and client facing experts offering in the professional digital services. It will share some lessons learned (sometimes the hard way) about:
• How to do digital projects with inexperienced Agile teams
• How to deliver digital services within time and budget
• Prevent overpromising
• Delivering bad news
• Negotiating contracts that are not Agile
Imre Gmelig Meijling is CEO and business owner of React Online The Netherlands. Imre worked in various roles in different agencies in Europe. He will share 25 years of lessons learned in the digital industry, sometimes the hard way. Among his clients are United Nations, Disney and Konica-Minolta. Imre has also been an active member of the Drupal community since 2006, working on the DrupalCon Europe Community Advisory Comittee. He is former chair of the Dutch Drupal Association and co creator of the Splash Awards and Drupaljam.
The document discusses the economic and social importance of business, noting that the prime function of business is to generate profit through producing and selling goods or services, and that profitability is crucial for businesses to survive long-term and provide returns to investors. It also examines how businesses create value and wealth through employment, wages, taxes, innovation, products and services that improve standards of living.
The document discusses various topics on the author's mind including everyone leaving, whether products delivered meet expectations, risk management and IT issues. It emphasizes the importance of understanding the customer's desired outcomes rather than just providing technology. Partners should work as a team with the customer to build trust, share a vision, understand each other's issues and manage risks cooperatively.
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In overcrowded markets with many similar competitors, price is often the main factor customers use to differentiate companies. To stand out, companies should stop doing what everyone else is doing and create remarkable content that is worth talking about. Getting customers' attention is difficult due to information overload, constant disruptions, and many choices, so companies need to provide uniquely valuable content and experiences to engage customers. Marketing, design, development, and traffic generation are all important pieces of an effective business website, but the starting point should be defining the target audience and creating a content-driven marketing strategy.
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1. The document advertises an unlimited wireless mobile service plan for $89.95 per month or free if you refer 3 customers.
2. It promotes joining the business opportunity to earn bonuses for referring customers and building a sales team.
3. Key benefits highlighted include free cell phone service, website, and monthly auto-ship costs if you refer 3 customers to join.
The document discusses a sales and marketing strategy for expanding into the EMEA region. It outlines goals such as signing early clients, filling the sales pipeline with 20+ prospects, and delivering $29 million in revenue over 24 months. The strategy involves meeting with teams, researching the region and competitors, creating marketing materials, pursuing leads, and closing deals with internet service providers.
The document discusses a sales and marketing strategy for expanding into the EMEA region. It outlines goals such as signing early customers, filling the sales pipeline with 20+ prospects, and delivering $29 million in revenue over 24 months by securing 5 new clients. The strategy involves meeting with teams to learn about products and culture, researching the EMEA market and competitors, and pursuing leads through activities like customer demonstrations and RFP responses.
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Here are the key steps in a two week roadmap to test a business:
1. Build an MVP (minimum viable product) - Develop a basic version of your product or service with core functionality but without extra features to validate your idea quickly.
2. Identify target customers - Conduct customer interviews and market research to define your ideal early adopters and learn their needs.
3. Launch marketing campaign - Promote your MVP through paid and organic channels like social media ads, blogs, and networking to generate initial awareness and interest.
4. Track customer acquisition - Monitor website traffic and conversions to understand what is driving engagement and how people are interacting with your offering.
5. Gather customer feedback - Survey and interview
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Originally presented at XP2024 Bolzano
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The Ready-Made Garments (RMG) industry in Bangladesh is a cornerstone of the economy, but increasing costs and stagnant productivity pose significant challenges to profitability. This study explores the implementation of Lean Management in the Sampling Section of RMG factories to enhance productivity. Drawing from a comprehensive literature review, theoretical framework, and action research methodology, the study identifies key areas for improvement and proposes solutions.
Through the DMAIC approach (Define, Measure, Analyze, Improve, Control), the research identifies low productivity as the primary problem in the Sampling Section, with a PPH (Productivity per head) of only 4.0. Using Lean Management techniques such as 5S, Standardized work, PDCA/Kaizen, KANBAN, and Quick Changeover, the study addresses issues such as pre and post Quick Changeover (QCO) time, improper line balancing, and sudden plan changes.
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The findings suggest that by implementing Lean Management practices and addressing key productivity inhibitors, RMG factories can achieve substantial improvements in efficiency and profitability. The study provides valuable insights for practitioners, policymakers, and researchers seeking to enhance productivity in the RMG industry and similar manufacturing sectors.
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25. Persona Young mother, working part time
Fictional name Naimh McCormack
Job title Family lawyer
Demographics
28 years old
Living with partner
Renting
One child, 3yo
Professional
Works in the City 2 days/week
Works from home 1 day/week
Mainly works on divorce cases
Reviewing documentation
Negotiation and arbitration
Technical
Familiar with Skype/Lync, remote working tools
Uses Facebook socially and Twitter professionally / socially. Underused LinkedIn account
Proficient with Office tools, including Google Docs & Office365, both of which are used by clients
Goals
Manage, organize and search documentation from case load
Make sudden transitions seamlessly from home to office, including working on the move
Ensure security of documentation in all locations
Ensure personal information about clients is protected
Primary use case
She searches, reads and edits her documents on desktop, laptop and tablet, using her standard tools,
wherever she happens to be, and shares them with colleagues over Skype/Lync.
Primary benefit
Assurance that information is secure at rest and held only within the EU jurisdiction, without any change to her
standard document browsing and editing workflow
32. Persona Young mother, working part time
Fictional name Naimh McCormack
Total discretionary budget £500/month
Channels
UK Legal Partner Mailing List
Law forums
10x value
Ability to collaborate securely with colleagues from work/home with zero friction – which significantly reduces
her childcare/office tension
Compelling reason to buy
She’s just experienced a late night dash to the office with the kid in pyjamas, to send a confidential document
to a colleague for a morning meeting. She doesn’t want to do that again.
Whole solution?
This solution as proposed integrates with the office suite and Office365 platform, so they would need to be
sold on this too.
Competition
There are other collaboration suites available of which this offering is a part of the proposition. They do not
have good uptake in the market.
Adjacent segments
If we get traction in this market, we could look sideways to local government, social services, barristers, law
enforcement, who all collaborate with this user. (See personae X, Y, Z…)
Alignment
Our corporate knowledge and connections are in the legal profession, and we fully understand the needs and
motivations of a junior solicitor.
53. Can we do it?
Technical
Does the customer care?
Value
Will the customer pay?
Revenue & Pricing
Can we afford to support it?
Cost of delivery
Can we afford to sell it?
Cost of customer
acquisition
54. Can we do it?
Technical
Does the customer care?
Value
Will the customer pay?
Revenue & Pricing
Can we afford to support it?
Cost of delivery
Can we afford to sell it?
Cost of customer
acquisition
Most prod dev guides start with technical MVPs. Most start-ups come to us with “we’ve got an idea for an app. Here’s how it works.”
This is now so ingrained in our culture that it is the basic joke at the core of HBO’s “Silicon Valley”.
The reason it’s a good joke is that it is rooted in the truth that this is a recipe for wasting time and money.
I’m a tech person. Look at me. Noone will mistake me for a shiny-shoed sales guy.
But this methodology is a very non technical approach. People get hung up on innovation being a technological process, but it isn’t.
The technology is often (but not always) the driver, or the enabler.
But a business is all about selling. And selling is all about making a proposition to a customer, where they feel that the value they are getting exceeds the cost to them. The product is the realisation of this proposition – encapsulating the whole customer experience from their initial awareness, through their usage, to the end-of-life.
You can, for example, make different propositions to different customers for the exact same product. (Excel can manage your family birthday list, and much more. Subscribe to Office365 for £9/month; see how you can build your actuarial risk models in Excel and your corporate EA is only $25k a year)
You can deliver the exact same product using different technology (e.g. a manual, human implementation v. an automated, machine-driven implementation).
Let’s encapsulate that definition of a proposition on a glib-looking slide. A proposition is the way we describe how a product, when delivered to a customer generates value (for the customer, and for us).
To make this work., we need to understand the product. Not just the features, but the whole product lifecycle from cradle to grave.
We need to understand the customer. Their needs, wants, desires, pains and pleasures.
We need to understand the value (for us, and for the customer)
This is where we start to get into the nitty gritty. We need to understand how the product delivers value for the customer (and for us)
And we need to understand how we are going to match the product up with the customer (how we specifically are going to make the new piece fit into the existing jigsaw puzzle of the customer’s life) That’s your ‘product market fit’ if you’ve heard that expression.
This bit is the most important thing.
It is the iterative process of refining our understanding of the customer and their perceived value on the one hand, with the product on the other, and how, therefore, we can make a compelling proposition of the one to the other.
All of these are moving parts. That’s why it is so difficult to get right.
That’s all about analysis and understanding.
We’re not talking about analysis paralysis though. We need just enough knowledge, with just enough fidelity and just enough accuracy to answer the next question we have, and then we move on.
The process is about getting to what’s critical quickly, making a judgement and deciding whether to stop, iterate, or progress.
We’re painting that picture with increasing fidelity in the places where it is important. And leaving the unimportant bits hazy.
While we’re on the subject of analysis, this is a bit of an aside really, but you can think of this process as a way of managing risk.
We start out with a few knowns, and a lot of unknowns.
This is a measure of risk.
We want (as cheaply as possible) to reduce the current number of unknowns (more will keep appearing) and classify them as knowns (hooray) or unknowables (whatever that might be).
Lots of projects fail because they spend a lot of money trying to turn an unknown into a known when it is, in fact, unknowable – within the constraints of time, budget and human endeavour. By resource-boxing everything, we can avoid this problem. We’ll look at that later.
So, where do we start.
There’s no point in trying to do something well beyond our capabilities. Or missing opportunities because we don’t play to our strengths. So we start with some introspection.
Build a map of your capabilities. Not of “the organization” in some abstract sense, but of the specific people within it – their history, experience and expertise. And we’re honest about what we’re really good at.
For example, if we have a legal team, but they are 100% consumed by BAU, then “legal” is not a capability. We’re no better off than someone who doesn’t have a legal team.
But if one of our team has worked on product licensing of exactly the type we might need in a previous organization, then that’s some great experience to bring to the table (even if they are not a legal specialist themselves).
When we understand ourselves – our “organizational landscape” we then want to focus back on the right hand side of that proposition slide we saw earlier – how customers derive value. And we’ll have a first stab at couching a “sort of” proposition in those terms.
Obviously, this is a really broad-brush sentence. But we’re focusing on the transformative nature of the product. Why is it amazing for the customer?
Good way of exploring that, if you’re struggling, is the Tool of 3.
What is the customer doing 3 minutes, days, months before they use (or maybe become aware of) your product, and what are they doing 3 minutes, days or months afterwards. How has it changed them. How did it fit with their life.
Then, try to understand the risk profile you’re going for. We’re trying to build consensus about what we’re doing so we’re all on the same page. New idea in new market -> lots of risk. New idea in established market, less risk, Old idea in old market -> “me too”, so what’s your differentiator
While we’re trying to get everyone in the room aligned with what we’re doing, we can also look at “the core” of our proposition. The touchstone that we will defend at all costs.
In formula 1, Team X defined its core as “we make a car and a driver go round a track faster than anyone else”. That’s a defensible position to take. And everything they do can be tested against it “does this make the car [and driver] go faster”
It’s just as applicable if you are a coffee shop, for example. You might say that your core is “Starbucks, but half the price” – you can test everything you do against whether it replicates a starbucks feature, but at a specifically lower cost
Or “100% ethical coffee”
Or “Fair trade at a fair price”
Each of those businesses is measuring itself by a different standard, and that gives their propositions a different flavour, even though they all sell containers of coffee to consumers. The core doesn’t talk to product features, or differentiators exactly, but defines the essence of what it is that you do, that you will never give up on.
You might find that there is some disagreement in the room about the core, and it is a very useful tool to get alignment not just at this early stage, but right through the business lifecycle.
To focus on the people, we need to understand which people we might choose to focus on. Don’t be stingy. List everyone who might be touched by your proposition. All the segments, all the markets, all the actors. Everyone you can think of.
Build out some basic personae. Look at their basic goals, budgets, and how they would interact with the product.
Now, let’s look a the value again. And think about it in purely monetary terms. It’s all very well focusing on leading indicators like “satisfaction” and “happiness”, but ultimately, you need to move the revenue line. (Lots of early stage businesses forget this – look at the huge downround market revaluations of the Unicorns for this problem writ large).
The value is a shared resource. The value derived by the customer, and the value derived by us.
So we have two so-called “10x” rules of thumb.
It’s very easy to sell on a 10x ROI. That’s a real game changer.
We need to make sure we’re going to be profitable (and still profitable after we’ve sunk our R&D costs) – if we’re making £10 for every pound it costs us to acquire a customer, deliver the product and support them over their lifetime, we’re probably going to be OK on that front too.
These are empirical rules of thumb. Your mileage may vary (you might be a pharma company, or a widget retailer).
Build those into some more detailed personas around the top 5.
Now we’re going to test the beachhead by a number of criteria.
We almost certainly won’t have picked the exact right beachhead the first time. Are there easy pivots available that means we won’t have wasted all the work we’ve done up to this point?
If we exploit it successfully, is it a good jumping off point for other market opportunities.
Does one sale in the market beget others?
Can we reach the people we need to?
Do we stand a good chance of winning *all of it*.
Is the market big enough to be statistically significant. Would dominating this market tell us anything about our product / proposition. Will it pay its own way?
It it small enough to be manageable with the resources we’ve got. Can we legitimately expect to be able to dominate it?
To determine the answer we need to calculate the Total Accessible Market.
It’s also not the lowball, contingency-ridden hedging-your-bets number. You’re not baking in an expectation of failure.
Too important a judgement, so we take a belt and braces approach.
Bottom up is talking to customers to get a feel for what they spend and multiplying by the number of customers.
(Yes, talk to real customers. You’re supposed to have good access to this market. Prove it.)
Top down is taking market data (e.g. government or industry reports), and dividing down by the number of customers, and seeing if you get to the same numbers.
We’ve already built up a bunch of assumptions – that TAM calculation being a biggy. From now on, everything is about testing these assumptions.
To do that, we recast our assumption as a hypothesis.
This is the timeboxing that allows us to classify an unknown as either a known or an unknowable, without betting the farm.
Common types of assumptions are actually baked into our process – but others will emerge on the way, specific to your particularly proposition.
Look – we’ve got a technical assumption here! But we don’t necessarily need to go head down to prove that we can do it technically. That might be expensive. Can we think of non-technical ways to answer all our other questions first, before we start burning the cash.
The rest of it is all about discipline and process. Have the courage not to throw good money after bad, but the tenacity to go after the opportunity until you’ve convinced yourself (with data) that it is the wrong thing to do right now, or, it’s a proven success!
That’s really just skirted over the inception phase – but it lays out the core principles that we then apply throughout the whole product lifecycle. (We’ve just covered the highlighted bit) You can find a lot more information on our website. Thanks.