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March 2015
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
My	
  Background	
  
n  Educa7on	
  
n  Engineering	
  background	
  
n  Stanford	
  MBA	
  
n  Web	
  development	
  and	
  UX	
  design	
  
n  Deep	
  Product	
  Management	
  Experience	
  
n  Submarine	
  design	
  
n  Led	
  Quicken	
  Product	
  Management	
  at	
  Intuit	
  
n  Led	
  Product	
  Management	
  at	
  Friendster	
  
n  CEO	
  &	
  Cofounder	
  of	
  YourVersion,	
  “Pandora	
  for	
  your	
  news”	
  
n  PM	
  consultant:	
  Box,	
  YouSendIt,	
  Medallia,	
  One	
  Medical	
  
	
  
Slides	
  at	
  hTp://slideshare.net/dan_o	
  	
  
What	
  is	
  Product-­‐Market	
  Fit?	
  
The	
  Lean	
  Product	
  Process	
  
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Transporta7on	
  within	
  100	
  miles	
  of	
  my	
  home	
  
Soccer	
  Mom	
  
	
  
	
  
Speed	
  Demon	
  
•  Carry	
  kids	
  &	
  gear	
  
•  Safety	
  
•  Fuel	
  economy	
  
•  Go	
  fast	
  
•  Looks	
  cool	
  
•  Makes	
  me	
  look	
  cool	
  
	
  
	
  
	
  
	
  
	
  
Target	
  Customer	
  Has	
  Dis7nct	
  Needs	
  
High-­‐level	
  need:	
  
	
  
Target	
  Customer:	
  
	
  
	
  
	
  
Detailed	
  needs:	
  
	
  
	
  
Ideal	
  Product:	
  
Soccer	
  Mom	
   Speed	
  Demon	
  
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
 
	
  
n  Russians:	
  pencil	
  
n  NASA:	
  space	
  pen	
  
($1	
  M	
  R&D	
  cost)	
  
	
  
	
  
	
  
	
  
Example:	
  
n  Ability	
  to	
  write	
  in	
  space	
  
(zero	
  gravity)	
  
Problem	
  Space	
  vs.	
  Solu7on	
  Space	
  
n  Problem	
  Space	
  
n  A	
  customer	
  problem,	
  
need,	
  or	
  benefit	
  that	
  the	
  
product	
  should	
  address	
  
n  A	
  product	
  requirement	
  
n  Solu7on	
  Space	
  
n  A	
  specific	
  
implementa7on	
  to	
  
address	
  the	
  need	
  or	
  
product	
  requirement	
  
	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Problem	
  Space	
  vs.	
  Solu7on	
  Space:	
  
Product	
  Level	
  
Problem	
  Space	
  
(user	
  benefit)	
  
Solu7on	
  Space	
  
(product)	
  
TurboTax
TaxCut
Pen and
paper
Prepare
my taxes
File my
taxes
Check my
taxes
Maximize
deductions
Reduce
audit risk
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Problem	
  vs.	
  Solu7on	
  Space:	
  Feature	
  Level	
  
Problem	
  Space	
  
	
  
Solu7on	
  Space	
  
Save time filing
taxes
Save time
preparing taxes
Maximize my
tax deductions
Check my
return
Reduce my
audit risk
Help me
prepare taxes
Empowerment/
Confidence
Save Time
Save Money
Tax Interview
Wizard
Audit Risk
Analyzer
Tax Return
Error Checker
Tax Data
Downloader
Electronic Tax
Return Filing
Tax Deduction
Finder
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Priori7zing	
  Customer	
  Needs:	
  
Importance	
  vs.	
  Sa7sfac7on	
  Importance	
  of	
  User	
  Need	
  
User	
  Sa7sfac7on	
  with	
  Current	
  Alterna7ves	
  
Compe77ve
Market	
  Opportunity	
  
Low	
   High	
  
Low	
  
High	
  
Not	
  Worth	
  Going	
  Aher	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Kano	
  Model:	
  User	
  Needs	
  &	
  Sa7sfac7on	
  
User	
  Sa7sfac7on	
  
User	
  Dissa7sfac7on	
  
Performance	
  
(more	
  is	
  beTer)	
  
Delighter	
  (wow)	
  
Need	
  
not	
  met	
  
Need	
  
fully	
  met	
  
Must	
  Have	
  
Needs	
  &	
  features	
  
migrate	
  over	
  7me	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Importance	
  vs.	
  Sa7sfac7on	
  
	
  Ask	
  Users	
  to	
  Rate	
  for	
  Each	
  Feature	
  
Recommended	
  reading:	
  
“What	
  Customers	
  Want”	
  by	
  Anthony	
  Ulwick	
  
Bad	
  
Great	
  
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
What	
  is	
  Your	
  Value	
  Proposi7on?	
  
n  Which	
  user	
  benefits	
  are	
  you	
  providing?	
  
n  How	
  are	
  you	
  beTer	
  than	
  compe7tors?	
  
	
   Compe&tor	
  A	
   Compe&tor	
  B	
   You	
  
Must	
  Have	
  Benefit	
  1	
   Y	
   Y	
   Y	
  
Performance	
  Benefit	
  1	
   High	
   Low	
   Med	
  
Performance	
  Benefit	
  2	
   Low	
   High	
   Low	
  
Performance	
  Benefit	
  3	
   Med	
   Med	
   High	
  
Delighter	
  Benefit	
  1	
   Y	
   -­‐	
   -­‐	
  
Delighter	
  Benefit	
  2	
   -­‐	
   -­‐	
   Y	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
What	
  is	
  an	
  MVP?	
  
Courtesy	
  of	
  Jussi	
  Pasanen	
  
See	
  Aaaron	
  Walter’s	
  book	
  Designing	
  for	
  Emo-on	
   Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Breaking	
  Features	
  Down	
  into	
  Chunks	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Must
Have 1
Performance
1
Delighter
1
Delighter
2
Must
Have 2
Performance
2
Performance
3
Benefits:
M1A P1A D1A D2AM2A P2A P3A
Features:
P1B D1B D2BP2B P3B
P2CP1C
P1D
D1C
Product	
  Roadmap:	
  
Features	
  by	
  Version	
  or	
  Time	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Must Have Benefit 1
Performance Benefit 1
Performance Benefit 3
Delighter Benefit 1
Performance Benefit 2
Must Have Benefit 2
Delighter Benefit 2
M1A
Time
v1 v1.5 v2 v2.5
M2A
P1A P1B
P2A P2B
P3A
D1A D1B
D2A
MVP
candidate
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
The	
  UX	
  Design	
  Iceberg	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
What most
people see
and react to
What good
product
people
think about
Gelng	
  Customer	
  Feedback:	
  
Problem	
  Space	
  vs.	
  Solu7on	
  Space	
  
n  Customers	
  CAN’T	
  ar7culate	
  problem	
  space	
  
n  Customers	
  CAN	
  react	
  to	
  solu7on	
  space	
  
n  That’s	
  why	
  you	
  need	
  something	
  tangible	
  to	
  
show	
  to	
  customers	
  to	
  get	
  good	
  feedback	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Design	
  Ar7facts:	
  
Interac7vity	
  vs.	
  Fidelity	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Hand	
  
sketch	
  
Interac7vity	
  
Fidelity	
  
Interac7ve	
  
Prototype	
  
Sta7c	
  
Wireframe*	
  
Clickable	
  
Wireframe*	
  
Mockup	
  
	
  
Clickable	
  
Mockup**	
  
*	
  Balsamiq:	
  balsamiq.com	
  
**	
  InVision:	
  invisionapp.com	
  
Design	
  Tools:	
  
Fidelity	
  vs.	
  Effort	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Hand
sketch
DesignFidelity
Effort to Create Artifact
Sketch
Balsamiq1
2
3
Designers
All Product People
Why	
  You	
  Should	
  Wireframe	
  
n  In	
  case	
  you	
  don’t	
  have	
  UX	
  designer	
  (ohen)	
  
n  To	
  clarify	
  and	
  refine	
  your	
  thinking:	
  
n Informa7on	
  Architecture,	
  layout,	
  naviga7on	
  
n  To	
  communicate	
  your	
  ideas	
  to	
  others	
  
n  Modern	
  tools	
  make	
  it	
  easy	
  and	
  fast	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
The	
  Lean	
  Product	
  Process	
  
1. Determine	
  your	
  target	
  customer	
  
2. Iden7fy	
  underserved	
  customer	
  needs	
  
3. Define	
  your	
  value	
  proposi7on	
  
4. Specify	
  your	
  MVP	
  feature	
  set	
  
5. Create	
  your	
  MVP	
  prototype	
  
6. Test	
  your	
  MVP	
  with	
  customers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
What	
  Are	
  You	
  Going	
  to	
  Get	
  Feedback	
  &	
  
Learnings	
  About?	
  
Problem	
  Space	
  
(your	
  mental	
  model)	
  
Solu7on	
  Space	
  
(what	
  users	
  can	
  react	
  to)	
  
Customer	
  
Understanding	
  
(needs	
  &	
  
preferences)	
  
Feature	
  Set	
  
UI	
  Design	
   Messaging	
  	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
“Ramen”	
  User	
  Feedback	
  for	
  Startups	
  
n  Anyone	
  can	
  do	
  it!	
  
n  Ingredients:	
  
n Solu7on-­‐space	
  product/mockup	
  to	
  test	
  
n 1	
  customer	
  (with	
  laptop	
  if	
  tes7ng	
  code)	
  
n 1	
  desk	
  
n 1	
  person	
  to	
  conduct	
  the	
  session	
  
n Pen	
  and	
  paper	
  
n Op7onal	
  note-­‐taker	
  and	
  observers	
  
Copyright	
  ©	
  2013	
  Olsen	
  Solu7ons	
  
Typical	
  Format	
  for	
  User	
  Tes7ng	
  Session	
  
n  5	
  -­‐	
  10	
  min:	
  Ask	
  ques7ons	
  to	
  understand	
  user	
  
needs	
  and	
  solu7ons	
  they	
  currently	
  use	
  
n  30	
  -­‐	
  50	
  min:	
  User	
  feedback	
  
n  Show	
  user	
  product/mockup	
  
n  Non-­‐directed	
  as	
  much	
  as	
  possible	
  
n  When	
  necessary,	
  direct	
  user	
  to	
  aTempt	
  to	
  
perform	
  a	
  specific	
  task	
  
n  5	
  -­‐	
  10	
  min:	
  Wrap-­‐up	
  
n  Answer	
  any	
  user	
  ques7ons	
  that	
  came	
  up	
  
n  Point	
  out/explain	
  features	
  you	
  want	
  to	
  highlight	
  
n  Ask	
  them	
  if	
  they	
  would	
  use	
  the	
  product	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Dos	
  &	
  Don’ts	
  of	
  User	
  Tes7ng	
  Sessions	
  
n  Do	
  
n  Explain	
  to	
  the	
  user:	
  
n  Their	
  feedback	
  will	
  help	
  improve	
  the	
  product	
  
n  Not	
  to	
  worry	
  about	
  hur7ng	
  your	
  feelings	
  
n  “Think	
  Aloud	
  Protocol”	
  
n  Ask	
  user	
  to	
  aTempt	
  the	
  task,	
  then	
  be	
  a	
  fly	
  on	
  the	
  wall	
  
n  Ask	
  non-­‐leading,	
  open-­‐ended	
  ques7ons	
  
n  Take	
  notes	
  and	
  review	
  them	
  aherwards	
  for	
  take-­‐aways	
  
n  Don’t	
  
n  Ask	
  leading	
  or	
  close-­‐ended	
  ques7ons	
  
n  “Help”	
  the	
  user	
  or	
  explain	
  the	
  UI	
  (e.g.,	
  “click	
  over	
  here”)	
  
n  Respond	
  to	
  user	
  frustra7on	
  or	
  ques7ons	
  (un7l	
  test	
  is	
  over)	
  
n  Get	
  defensive	
  
n  Blame	
  the	
  user	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  YourVersion	
  
Itera7ng	
  Your	
  Product	
  Vector	
  Based	
  on	
  
User	
  Feedback	
  in	
  Solu7on	
  Space	
  
Problem	
  Space	
  
(your	
  mental	
  model)	
  
Solu7on	
  Space	
  
(what	
  users	
  can	
  react	
  to)	
  
	
  Customer	
  Feedback	
  
Mockups	
  /	
  Code	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Problem	
  
Space	
  
Solu7on	
  
Space	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Case	
  Study	
  on	
  Product-­‐Market	
  Fit:	
  
Marke7ngReport.com	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Marke7ngReport.com	
  
n  My	
  consul7ng	
  client	
  (CEO)	
  had	
  an	
  idea	
  
for	
  a	
  new	
  product	
  
n  Team:	
  me,	
  CEO,	
  head	
  of	
  marke7ng,	
  
UI	
  design	
  consultant	
  
n  Goal:	
  
n Validate	
  product-­‐market	
  fit	
  quickly,	
  cheaply	
  
without	
  wri7ng	
  a	
  single	
  line	
  of	
  code	
  
n Determine	
  if	
  there	
  was	
  a	
  business	
  
opportunity	
  here	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Developing	
  Product	
  Concept	
  
n  Product	
  Concept	
  was	
  “marke7ng	
  report”	
  that	
  let	
  
consumers	
  control	
  the	
  direct	
  mail	
  that	
  they	
  
receive	
  
n  Concept	
  was	
  fuzzy	
  with	
  various	
  components,	
  so	
  I	
  
broke	
  it	
  into	
  2	
  different	
  “flavors”:	
  
#1	
  “Marke7ng	
  Shield”:	
  Service	
  to	
  reduce/stop	
  junk	
  mail	
  
#2	
  “Marke7ng	
  Saver”:	
  Opt	
  in	
  &	
  receive	
  money-­‐saving	
  offers	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Clustering	
  Poten7al	
  User	
  Benefits	
  to	
  
Create	
  Product	
  Concepts	
  
Reduce
Junk Mail
Find out what
“they” know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
“Shield” Concept “Saver” Concept
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
n  Telephone	
  recruit	
  of	
  prospec7ve	
  customers	
  
n  Wrote	
  phone-­‐screen	
  ques7onnaire	
  to	
  create	
  rough	
  
target	
  customer	
  segmenta7on	
  
n  Wanted	
  users	
  who	
  work	
  full-­‐7me	
  &	
  use	
  internet	
  
n  Fit	
  for	
  opt-­‐in	
  offers:	
  use	
  coupons,	
  Costco	
  membership	
  
n  Fit	
  for	
  an7-­‐junk	
  mail:	
  use	
  paper	
  shredder,	
  block	
  caller	
  ID	
  
n  Paid	
  each	
  person	
  $75	
  
n  Scheduled	
  3	
  groups	
  of	
  2	
  or	
  3	
  people	
  to	
  discuss	
  
each	
  product	
  concept	
  for	
  90	
  minutes	
  
n  Moderated	
  each	
  group	
  through	
  the	
  paper	
  
mockups	
  to	
  hear	
  their	
  feedback	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Recrui7ng	
  People	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Findings	
  on	
  Concepts	
  &User	
  Benefits	
  
Reduce
Junk Mail
Find out what
“they” know
about you
Money
Saving
Offers
Compare
Yourself
to Others
Social
Networking
Marketing
Report
Marketing
Score
Marketing
Profile
Save
Trees
Legend
Strong appeal
Some appeal
Low appeal
“Shield” Concept “Saver” Concept
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Learnings	
  from	
  Research	
  
n  Learned	
  that	
  “Shield”	
  (an7-­‐junk	
  mail)	
  concept	
  was	
  
stronger	
  than	
  “Saver”	
  
n  People	
  didn’t	
  like	
  many	
  of	
  the	
  “Saver”	
  concept	
  
components	
  
n  Learned	
  users’	
  concerns	
  /	
  ques7ons	
  about	
  “Shield”	
  
concept	
  
n  Refined	
  “Shield”	
  concept:	
  
n  Removed	
  irrelevant	
  components	
  
n  Improved	
  messaging	
  to	
  address	
  user	
  concerns	
  /	
  ques7ons	
  
n  Validated	
  revised	
  “Shield”	
  concept	
  with	
  quick	
  2nd	
  
round	
  of	
  tests	
  
n  No	
  customer	
  concerns	
  
n  Clear	
  willingness	
  to	
  pay	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Product-­‐Market	
  Fit	
  Case	
  Study:	
  
Summary	
  
n  4	
  weeks	
  from	
  1st	
  mee7ng	
  to	
  validated	
  
product	
  concept	
  with	
  zero	
  coding	
  
n  Reasonable	
  cost	
  
n  1	
  round	
  of	
  itera7on	
  on	
  product	
  concept	
  
n  Iden7fied	
  compelling	
  concept	
  that	
  users	
  
are	
  willing	
  to	
  pay	
  $10/month	
  for	
  
n  Trimmed	
  away	
  non-­‐valuable	
  pieces	
  
n  You	
  can	
  achieve	
  similar	
  results	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
The	
  Lean	
  Product	
  Process	
  
1.  Determine	
  your	
  target	
  customer	
  
2.  Iden7fy	
  underserved	
  customer	
  needs	
  
3.  Define	
  your	
  value	
  proposi7on	
  
4.  Specify	
  your	
  MVP	
  feature	
  set	
  
5.  Create	
  your	
  MVP	
  prototype	
  
6.  Test	
  your	
  MVP	
  with	
  customers	
  
Iterate:	
  
	
  Ÿ	
  Hypothesize-­‐Design-­‐Test-­‐Learn	
  loop	
  
	
  Ÿ	
  Improve	
  product-­‐market	
  fit	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
Laura	
  Klein:	
  April	
  14	
  in	
  Palo	
  Alto	
  
Author	
  of	
  UX	
  for	
  Lean	
  Startups	
  
How	
  to	
  use	
  Qualita&ve	
  &	
  Quan&ta&ve	
  Research	
  
Copyright	
  ©	
  2015	
  Olsen	
  Solu7ons	
  
The	
  Lean	
  Product	
  Playbook	
  
n  Published	
  by	
  Wiley	
  
n  Comes	
  out	
  May	
  26th	
  
n  Hardback	
  &	
  ebook	
  
n  Available	
  for	
  preorder	
  
on	
  Amazon:	
  
hTp://7ny.cc/LPP	
  
	
  
Questions?
@danolsen	
  
olsensolu7ons.com	
  
slideshare.net/dan_o	
  
meetup.com/lean-­‐product	
  
	
  
Book:	
  hTp://7ny.cc/LPP	
  
	
  
	
  

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The Lean Product Playbook by Dan Olsen

  • 2. Copyright  ©  2015  Olsen  Solu7ons   My  Background   n  Educa7on   n  Engineering  background   n  Stanford  MBA   n  Web  development  and  UX  design   n  Deep  Product  Management  Experience   n  Submarine  design   n  Led  Quicken  Product  Management  at  Intuit   n  Led  Product  Management  at  Friendster   n  CEO  &  Cofounder  of  YourVersion,  “Pandora  for  your  news”   n  PM  consultant:  Box,  YouSendIt,  Medallia,  One  Medical     Slides  at  hTp://slideshare.net/dan_o    
  • 4.
  • 5. The  Lean  Product  Process  
  • 6. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 7. Transporta7on  within  100  miles  of  my  home   Soccer  Mom       Speed  Demon   •  Carry  kids  &  gear   •  Safety   •  Fuel  economy   •  Go  fast   •  Looks  cool   •  Makes  me  look  cool             Target  Customer  Has  Dis7nct  Needs   High-­‐level  need:     Target  Customer:         Detailed  needs:       Ideal  Product:   Soccer  Mom   Speed  Demon  
  • 8. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 9.     n  Russians:  pencil   n  NASA:  space  pen   ($1  M  R&D  cost)           Example:   n  Ability  to  write  in  space   (zero  gravity)   Problem  Space  vs.  Solu7on  Space   n  Problem  Space   n  A  customer  problem,   need,  or  benefit  that  the   product  should  address   n  A  product  requirement   n  Solu7on  Space   n  A  specific   implementa7on  to   address  the  need  or   product  requirement     Copyright  ©  2015  Olsen  Solu7ons  
  • 10. Problem  Space  vs.  Solu7on  Space:   Product  Level   Problem  Space   (user  benefit)   Solu7on  Space   (product)   TurboTax TaxCut Pen and paper Prepare my taxes File my taxes Check my taxes Maximize deductions Reduce audit risk Copyright  ©  2015  Olsen  Solu7ons  
  • 11. Problem  vs.  Solu7on  Space:  Feature  Level   Problem  Space     Solu7on  Space   Save time filing taxes Save time preparing taxes Maximize my tax deductions Check my return Reduce my audit risk Help me prepare taxes Empowerment/ Confidence Save Time Save Money Tax Interview Wizard Audit Risk Analyzer Tax Return Error Checker Tax Data Downloader Electronic Tax Return Filing Tax Deduction Finder Copyright  ©  2015  Olsen  Solu7ons  
  • 12. Priori7zing  Customer  Needs:   Importance  vs.  Sa7sfac7on  Importance  of  User  Need   User  Sa7sfac7on  with  Current  Alterna7ves   Compe77ve Market  Opportunity   Low   High   Low   High   Not  Worth  Going  Aher   Copyright  ©  2015  Olsen  Solu7ons  
  • 13. Kano  Model:  User  Needs  &  Sa7sfac7on   User  Sa7sfac7on   User  Dissa7sfac7on   Performance   (more  is  beTer)   Delighter  (wow)   Need   not  met   Need   fully  met   Must  Have   Needs  &  features   migrate  over  7me   Copyright  ©  2015  Olsen  Solu7ons  
  • 14. Copyright  ©  2015  Olsen  Solu7ons   Importance  vs.  Sa7sfac7on    Ask  Users  to  Rate  for  Each  Feature   Recommended  reading:   “What  Customers  Want”  by  Anthony  Ulwick   Bad   Great  
  • 15. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 16. What  is  Your  Value  Proposi7on?   n  Which  user  benefits  are  you  providing?   n  How  are  you  beTer  than  compe7tors?     Compe&tor  A   Compe&tor  B   You   Must  Have  Benefit  1   Y   Y   Y   Performance  Benefit  1   High   Low   Med   Performance  Benefit  2   Low   High   Low   Performance  Benefit  3   Med   Med   High   Delighter  Benefit  1   Y   -­‐   -­‐   Delighter  Benefit  2   -­‐   -­‐   Y   Copyright  ©  2015  Olsen  Solu7ons  
  • 17. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 18. What  is  an  MVP?   Courtesy  of  Jussi  Pasanen   See  Aaaron  Walter’s  book  Designing  for  Emo-on   Copyright  ©  2015  Olsen  Solu7ons  
  • 19. Breaking  Features  Down  into  Chunks   Copyright  ©  2015  Olsen  Solu7ons   Must Have 1 Performance 1 Delighter 1 Delighter 2 Must Have 2 Performance 2 Performance 3 Benefits: M1A P1A D1A D2AM2A P2A P3A Features: P1B D1B D2BP2B P3B P2CP1C P1D D1C
  • 20. Product  Roadmap:   Features  by  Version  or  Time   Copyright  ©  2015  Olsen  Solu7ons   Must Have Benefit 1 Performance Benefit 1 Performance Benefit 3 Delighter Benefit 1 Performance Benefit 2 Must Have Benefit 2 Delighter Benefit 2 M1A Time v1 v1.5 v2 v2.5 M2A P1A P1B P2A P2B P3A D1A D1B D2A MVP candidate
  • 21. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 22. The  UX  Design  Iceberg   Copyright  ©  2015  Olsen  Solu7ons   What most people see and react to What good product people think about
  • 23. Gelng  Customer  Feedback:   Problem  Space  vs.  Solu7on  Space   n  Customers  CAN’T  ar7culate  problem  space   n  Customers  CAN  react  to  solu7on  space   n  That’s  why  you  need  something  tangible  to   show  to  customers  to  get  good  feedback   Copyright  ©  2015  Olsen  Solu7ons  
  • 24. Design  Ar7facts:   Interac7vity  vs.  Fidelity   Copyright  ©  2015  Olsen  Solu7ons   Hand   sketch   Interac7vity   Fidelity   Interac7ve   Prototype   Sta7c   Wireframe*   Clickable   Wireframe*   Mockup     Clickable   Mockup**   *  Balsamiq:  balsamiq.com   **  InVision:  invisionapp.com  
  • 25. Design  Tools:   Fidelity  vs.  Effort   Copyright  ©  2015  Olsen  Solu7ons   Hand sketch DesignFidelity Effort to Create Artifact Sketch Balsamiq1 2 3 Designers All Product People
  • 26. Why  You  Should  Wireframe   n  In  case  you  don’t  have  UX  designer  (ohen)   n  To  clarify  and  refine  your  thinking:   n Informa7on  Architecture,  layout,  naviga7on   n  To  communicate  your  ideas  to  others   n  Modern  tools  make  it  easy  and  fast   Copyright  ©  2015  Olsen  Solu7ons  
  • 27. The  Lean  Product  Process   1. Determine  your  target  customer   2. Iden7fy  underserved  customer  needs   3. Define  your  value  proposi7on   4. Specify  your  MVP  feature  set   5. Create  your  MVP  prototype   6. Test  your  MVP  with  customers   Copyright  ©  2015  Olsen  Solu7ons  
  • 28. What  Are  You  Going  to  Get  Feedback  &   Learnings  About?   Problem  Space   (your  mental  model)   Solu7on  Space   (what  users  can  react  to)   Customer   Understanding   (needs  &   preferences)   Feature  Set   UI  Design   Messaging     Copyright  ©  2015  Olsen  Solu7ons  
  • 29. “Ramen”  User  Feedback  for  Startups   n  Anyone  can  do  it!   n  Ingredients:   n Solu7on-­‐space  product/mockup  to  test   n 1  customer  (with  laptop  if  tes7ng  code)   n 1  desk   n 1  person  to  conduct  the  session   n Pen  and  paper   n Op7onal  note-­‐taker  and  observers   Copyright  ©  2013  Olsen  Solu7ons  
  • 30. Typical  Format  for  User  Tes7ng  Session   n  5  -­‐  10  min:  Ask  ques7ons  to  understand  user   needs  and  solu7ons  they  currently  use   n  30  -­‐  50  min:  User  feedback   n  Show  user  product/mockup   n  Non-­‐directed  as  much  as  possible   n  When  necessary,  direct  user  to  aTempt  to   perform  a  specific  task   n  5  -­‐  10  min:  Wrap-­‐up   n  Answer  any  user  ques7ons  that  came  up   n  Point  out/explain  features  you  want  to  highlight   n  Ask  them  if  they  would  use  the  product   Copyright  ©  2015  Olsen  Solu7ons  
  • 31. Dos  &  Don’ts  of  User  Tes7ng  Sessions   n  Do   n  Explain  to  the  user:   n  Their  feedback  will  help  improve  the  product   n  Not  to  worry  about  hur7ng  your  feelings   n  “Think  Aloud  Protocol”   n  Ask  user  to  aTempt  the  task,  then  be  a  fly  on  the  wall   n  Ask  non-­‐leading,  open-­‐ended  ques7ons   n  Take  notes  and  review  them  aherwards  for  take-­‐aways   n  Don’t   n  Ask  leading  or  close-­‐ended  ques7ons   n  “Help”  the  user  or  explain  the  UI  (e.g.,  “click  over  here”)   n  Respond  to  user  frustra7on  or  ques7ons  (un7l  test  is  over)   n  Get  defensive   n  Blame  the  user   Copyright  ©  2015  Olsen  Solu7ons  
  • 32. Copyright  ©  2015  YourVersion  
  • 33. Itera7ng  Your  Product  Vector  Based  on   User  Feedback  in  Solu7on  Space   Problem  Space   (your  mental  model)   Solu7on  Space   (what  users  can  react  to)    Customer  Feedback   Mockups  /  Code   Copyright  ©  2015  Olsen  Solu7ons  
  • 34. Problem   Space   Solu7on   Space   Copyright  ©  2015  Olsen  Solu7ons  
  • 35. Copyright  ©  2015  Olsen  Solu7ons   Case  Study  on  Product-­‐Market  Fit:   Marke7ngReport.com  
  • 36. Product-­‐Market  Fit  Case  Study:   Marke7ngReport.com   n  My  consul7ng  client  (CEO)  had  an  idea   for  a  new  product   n  Team:  me,  CEO,  head  of  marke7ng,   UI  design  consultant   n  Goal:   n Validate  product-­‐market  fit  quickly,  cheaply   without  wri7ng  a  single  line  of  code   n Determine  if  there  was  a  business   opportunity  here   Copyright  ©  2015  Olsen  Solu7ons  
  • 37. Product-­‐Market  Fit  Case  Study:   Developing  Product  Concept   n  Product  Concept  was  “marke7ng  report”  that  let   consumers  control  the  direct  mail  that  they   receive   n  Concept  was  fuzzy  with  various  components,  so  I   broke  it  into  2  different  “flavors”:   #1  “Marke7ng  Shield”:  Service  to  reduce/stop  junk  mail   #2  “Marke7ng  Saver”:  Opt  in  &  receive  money-­‐saving  offers   Copyright  ©  2015  Olsen  Solu7ons  
  • 38. Clustering  Poten7al  User  Benefits  to   Create  Product  Concepts   Reduce Junk Mail Find out what “they” know about you Money Saving Offers Compare Yourself to Others Social Networking Marketing Report Marketing Score Marketing Profile Save Trees “Shield” Concept “Saver” Concept Copyright  ©  2015  Olsen  Solu7ons  
  • 39. Copyright  ©  2015  Olsen  Solu7ons  
  • 40. Copyright  ©  2015  Olsen  Solu7ons  
  • 41. n  Telephone  recruit  of  prospec7ve  customers   n  Wrote  phone-­‐screen  ques7onnaire  to  create  rough   target  customer  segmenta7on   n  Wanted  users  who  work  full-­‐7me  &  use  internet   n  Fit  for  opt-­‐in  offers:  use  coupons,  Costco  membership   n  Fit  for  an7-­‐junk  mail:  use  paper  shredder,  block  caller  ID   n  Paid  each  person  $75   n  Scheduled  3  groups  of  2  or  3  people  to  discuss   each  product  concept  for  90  minutes   n  Moderated  each  group  through  the  paper   mockups  to  hear  their  feedback   Product-­‐Market  Fit  Case  Study:   Recrui7ng  People   Copyright  ©  2015  Olsen  Solu7ons  
  • 42. Product-­‐Market  Fit  Case  Study:   Findings  on  Concepts  &User  Benefits   Reduce Junk Mail Find out what “they” know about you Money Saving Offers Compare Yourself to Others Social Networking Marketing Report Marketing Score Marketing Profile Save Trees Legend Strong appeal Some appeal Low appeal “Shield” Concept “Saver” Concept Copyright  ©  2015  Olsen  Solu7ons  
  • 43. Product-­‐Market  Fit  Case  Study:   Learnings  from  Research   n  Learned  that  “Shield”  (an7-­‐junk  mail)  concept  was   stronger  than  “Saver”   n  People  didn’t  like  many  of  the  “Saver”  concept   components   n  Learned  users’  concerns  /  ques7ons  about  “Shield”   concept   n  Refined  “Shield”  concept:   n  Removed  irrelevant  components   n  Improved  messaging  to  address  user  concerns  /  ques7ons   n  Validated  revised  “Shield”  concept  with  quick  2nd   round  of  tests   n  No  customer  concerns   n  Clear  willingness  to  pay   Copyright  ©  2015  Olsen  Solu7ons  
  • 44. Copyright  ©  2015  Olsen  Solu7ons  
  • 45. Product-­‐Market  Fit  Case  Study:   Summary   n  4  weeks  from  1st  mee7ng  to  validated   product  concept  with  zero  coding   n  Reasonable  cost   n  1  round  of  itera7on  on  product  concept   n  Iden7fied  compelling  concept  that  users   are  willing  to  pay  $10/month  for   n  Trimmed  away  non-­‐valuable  pieces   n  You  can  achieve  similar  results   Copyright  ©  2015  Olsen  Solu7ons  
  • 46. The  Lean  Product  Process   1.  Determine  your  target  customer   2.  Iden7fy  underserved  customer  needs   3.  Define  your  value  proposi7on   4.  Specify  your  MVP  feature  set   5.  Create  your  MVP  prototype   6.  Test  your  MVP  with  customers   Iterate:    Ÿ  Hypothesize-­‐Design-­‐Test-­‐Learn  loop    Ÿ  Improve  product-­‐market  fit   Copyright  ©  2015  Olsen  Solu7ons  
  • 47. Laura  Klein:  April  14  in  Palo  Alto   Author  of  UX  for  Lean  Startups   How  to  use  Qualita&ve  &  Quan&ta&ve  Research  
  • 48. Copyright  ©  2015  Olsen  Solu7ons   The  Lean  Product  Playbook   n  Published  by  Wiley   n  Comes  out  May  26th   n  Hardback  &  ebook   n  Available  for  preorder   on  Amazon:   hTp://7ny.cc/LPP    
  • 49. Questions? @danolsen   olsensolu7ons.com   slideshare.net/dan_o   meetup.com/lean-­‐product     Book:  hTp://7ny.cc/LPP