The MVP (Minimum Viable Product), largely popularized by Lean Startup, plays a critical role in Lean product validation. It is the most important test to demonstrate that product-market fit has been achieved. Yet teams are often unclear what an MVP is and how to prioritize it versus other research options. Attendees will learn: 1.      A practical definition for an MVP 2.      Why getting to an MVP is a critical team priority  3.      The three steps, and the two types of tests, used in lean validation  4.      A testing framework to select the correct experiments for validation 5.      How lean principles were applied in B2B and B2C situations to get to an MVP and beyond In this webinar, Lean product management expert Greg Cohen (author of Lean Product Management, Agile Excellence for Product Managers, and 42 Rules of Product Management) and 280 Group Founder/CEO Brian Lawley (author of Product Management for Dummies) will shed light on the history of the MVP, how it fits into Lean product validation, and how three different companies approached the MVP in new product introductions with a focus on B2B situations.

1. © 2017 280 Group LLC. 1
AIPMM Webinar Series
Untangling the MVP in Lean ProductValidation

2. © 2017 280 Group LLC. 2
Brian Lawley
CEO & Founder - 280 Group, LLC
Greg Cohen
Agile and Lean Product Management Expert
Senior Consultant and Trainer – 280 Group LLC
Our Speakers

3. © 2017 280 Group LLC. 3
• Senior Principal Consultant, 280 Group
• Twenty years of PM Experience
– Medical diagnostics and devices
• Chiron Diagnostics, Smith & Nephew
– Software-as-a-Service
• Pandesic (SAP and Intel), IdealLab!, Instill
– 280 Group
• Accretive Health, Computer Associates, Dell, MobileIron, Peoplefluent,
Untangle, VGT and more
• Certified Scrum Master, SVPMA Board
Member and former President
• Interests
– Agile and Lean methods
– Product Strategy, Roadmapping, and Prioritization
– Product innovation
– Product management process
Greg Cohen
280 Group
Author

4. © 2017 280 Group LLC. 4
Coming Fall 2017
“The book is a masterful
summation of the essentials of
product strategy excellence.”
- Therese Padilla, President,AIPMM
Learn why product strategy matters more than ever in an agile world

5. © 2017 280 Group LLC. 5
Download Greg Cohen’s Book!
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/
Download your copy:
https://280group.com/lean-product-management-
book-download/

6. © 2017 280 Group LLC. 6
• About 280 Group
• Untangling the MVP in lean product
validation
• Giveaway + Q&A
Agenda
Download Lean Product ManagementBook: htts://280group.com/lean-product-management-book-download/

7. © 2017 280 Group LLC. 7
We help companies and
individuals do GREAT Product
Management and Product
Marketing using our Optimal
Product Process™ framework.
Mission
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

8. © 2017 280 Group LLC. 8
• Lean Product Management Workshop
– Private onsite
– Hands-on
– Learn how to apply lean
• Agile Excellence for Product Managers and Product
Owners (ACPMPO) Course
– Public
– Private
– Online
• ACPMPO Certification
Agile and Lean Product Management Courses
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

9. © 2017 280 Group LLC. 9
Poll
What’s Your Title?
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

10. © 2017 280 Group LLC. 10
• About the 280 Group
• Untangling the MVP in lean product
validation
• Giveaway + Q&A
Agenda
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

11. © 2017 280 Group LLC. 11
Product Management Point of View
• Seven guiding principles of being Lean
• Lean framework, methods, and techniques for
PMs
• MVP and assoc. techniques found in Lean Startup
map to one part of the larger framework
Develop a Lean Mindset
Way of thinking that can be applied to any situation
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

12. © 2017 280 Group LLC. 12
Clarity on what is an MVP and how to use it
• Explain how we got to where we are today
• Review why the MVP concept is so critical
• Provide a framework for Lean Validation and
MVP testing
Goals for this webinar
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

13. © 2017 280 Group LLC. 13
History
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

14. © 2017 280 Group LLC. 14
Who said this?
Test your way to
rapid success
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

15. © 2017 280 Group LLC. 15
• Where are you going to test it?
• When are you going to test it?
• Can’t you test a piece of it sooner?
• Can’t you do the first test in less time?
• Can’t you chunk it more?
• What did you learn from the test?
When any idea surfaces, ask these questions
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

16. © 2017 280 Group LLC. 16
Time to first
tangible test
Speedup innovation by
dramatically increasing
rates of failure
Try, test, adjust
Published 1987
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

17. © 2017 280 Group LLC. 17

18. © 2017 280 Group LLC. 18Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

19. © 2017 280 Group LLC. 1919Source: http://www.idealab.com/inside_the_lab/videos/gates_idealab.html

20. © 2017 280 Group LLC. 20
20

21. © 2017 280 Group LLC. 21
eXtreme Programming
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

22. © 2017 280 Group LLC. 22
Web and Web Analytics
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

23. © 2017 280 Group LLC. 23Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

24. © 2017 280 Group LLC. 24
March, 2009
“The minimum viable
product is that product
which has just those features
(and no more) that allows
you to ship a product that
resonates with early
adopters; some of whom will
pay you money or give you
feedback.”
MVP According to Lean Startup
Source: http://www.startuplessonslearned.com/2009/03/minimum-viable-
product.html
Build
MeasureLearn
Build a real product
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

25. © 2017 280 Group LLC. 25
August, 2009
“the minimum viable product
is that version of a new
product which allows a team
to collect the maximum
amount of validated learning
about customers with the
least effort.”
MVP According to Lean Startup Later than Year
Source: http://www.startuplessonslearned.com/2009/08/minimum-viable-
product-guide.html
Build
MeasureLearn
Build an experiment
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

26. © 2017 280 Group LLC. 26

27. © 2017 280 Group LLC. 27
Lean Validation
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

28. © 2017 280 Group LLC. 32
Discovery
Insights
Validation
Insights
Basic PM Learning Loop – how fast can you cycle?
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

29. © 2017 280 Group LLC. 33
Need
Perceived
Value
Realized
Value
Validate
Problem
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

30. © 2017 280 Group LLC. 34
Need
Perceived
Value
Realized
Value
Validate
Problem
Validate
Concept
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

31. © 2017 280 Group LLC. 35
Need
Perceived
Value
Realized
Value
Validate
Problem
Validate
Concept
Validate
Solution
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

32. © 2017 280 Group LLC. 36Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

33. © 2017 280 Group LLC. 37

34. © 2017 280 Group LLC. 38

35. © 2017 280 Group LLC. 39
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

36. © 2017 280 Group LLC. 40
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
• Ethnographic market research
• Contextual inquiry
• Observation
• Shadowing/Day-in-the-life
• Diary Studies
• Problem interview
• Problem Survey
• Problem Ranking
• Problem focus group
BeliefBehavior
Note: not all techniques captured above.
Latent needs, problems, frequency
Best for
Problems and importance
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

37. © 2017 280 Group LLC. 41
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
• Ethnographic market research
• Contextual inquiry
• Observation
• Shadowing/Day-in-the-life
• Diary Studies
• Pre-orders/ Purchase
• ‘Offer’ smoke test
• Fake door test
• Fake it test (e.g. video)
• A/B perceive value test
• Google AdWords test
• Problem interview
• Problem Survey
• Problem Ranking
• Problem focus group
• Concept document interview/survey
• Wire frame/prototype interview
• Solution Interview
• Value interview
• Kano Survey
• Importance/Satisfaction survey
• Adaptive conjoint analysis
• Concept focus group
BeliefBehavior
Note: not all techniques captured above.
Value proposition and demandLatent needs, problems, frequency
Best for
Problems and importance Solution gaps, new problems, value
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

38. © 2017 280 Group LLC. 42
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
• Ethnographic market research
• Contextual inquiry
• Observation
• Shadowing/Day-in-the-life
• Diary Studies
• Pre-orders/ Purchase
• ‘Offer’ smoke test
• Fake door test
• Fake it test (e.g. video)
• A/B perceive value test
• Google AdWords test
• MVP
• Concierge MVP
• Value actions/metrics
• Usability studies
• A/B realized value test
• Support cases
• Renewals/retention*
• Problem interview
• Problem Survey
• Problem Ranking
• Problem focus group
• Concept document interview/survey
• Wire frame/prototype interview
• Solution Interview
• Value interview
• Kano Survey
• Importance/Satisfaction survey
• Adaptive conjoint analysis
• Concept focus group
• Satisfaction interviews*
• Satisfaction surveys*
• Net Promoter Score (NPS)*
• Feedback focus group*
• Longitudinal trends of NPS/Sat scores
BeliefBehavior
*Lagging IndicatorsNote: not all techniques captured above.
Value proposition and demandLatent needs, problems, frequency
Best for
Problems and importance Solution gaps, new problems, value
Product-market fit
Gap between solution and expectation
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

39. © 2017 280 Group LLC. 43
MVP
The smallest product that will meet
the need* of a narrow user segment
(i.e., early adopters in acute pain)
and for which the user has
exchanged value to use the product
so that you may learn from real
usage.
*The user would rather use the product
as is than wait for an enhanced release
Practical Definitions for Teams
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

40. © 2017 280 Group LLC. 44
MVP MVP Test
The smallest product that will meet
the need* of a narrow user segment
(i.e., early adopters in acute pain)
and for which the user has
exchanged value to use the product
so that you may learn from real
usage.
*The user would rather use the product
as is than wait for an enhanced release
A behavioral test of the perceived
value of the solution.
Examples
• Pre-order
• ‘offer’ smoke test
• AdWords test
Practical Definitions for Teams
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

41. © 2017 280 Group LLC. 45
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
• Ethnographic market research
• Contextual inquiry
• Observation
• Shadowing/Day-in-the-life
• Diary Studies
• Pre-orders/ Purchase
• ‘Offer’ smoke test
• Fake door test
• Fake it test (e.g. video)
• A/B perceive value test
• Google AdWords test
• MVP
• Concierge MVP
• Value actions/metrics
• Usability studies
• A/B realized value test
• Support cases
• Renewals/retention*
• Problem interview
• Problem Survey
• Problem Ranking
• Problem focus group
• Concept document interview/survey
• Wire frame/prototype interview
• Solution Interview
• Value interview
• Kano Survey
• Importance/Satisfaction survey
• Adaptive conjoint analysis
• Concept focus group
• Satisfaction interviews*
• Satisfaction surveys*
• Net Promoter Score (NPS)*
• Feedback focus group*
• Longitudinal trends of NPS/Sat scores
BeliefBehavior
*Lagging IndicatorsNote: not all techniques captured above.
Value proposition and demandLatent needs, problems, frequency
Best for
Problems and importance Solution gaps, new problems, value
Product-market fit
Gap between solution and expectation
MVP Test MVP
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

42. © 2017 280 Group LLC. 46
Key Question Chain™ Testing Grid
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
• Ethnographic market research
• Contextual inquiry
• Observation
• Shadowing/Day-in-the-life
• Diary Studies
• Pre-orders/ Purchase
• ‘Offer’ smoke test
• Fake door test
• Fake it test (e.g. video)
• A/B perceive value test
• Google AdWords test
• MVP
• Concierge MVP
• Value actions/metrics
• Usability studies
• A/B realized value test
• Support cases
• Renewals/retention*
• Problem interview
• Problem Survey
• Problem Ranking
• Problem focus group
• Concept document interview/survey
• Wire frame/prototype interview
• Solution Interview
• Value interview
• Kano Survey
• Importance/Satisfaction survey
• Adaptive conjoint analysis
• Concept focus group
• Satisfaction interviews*
• Satisfaction surveys*
• Net Promoter Score (NPS)*
• Feedback focus group*
• Longitudinal trends of NPS/Sat scores
BeliefBehavior
*Lagging IndicatorsNote: not all techniques captured above.
Value proposition and demandLatent needs, problems, frequency
Best for
Problems and importance Solution gaps, new problems, value
Product-market fit
Gap between solution and expectation
Traditional Market Research
MVP Test MVP
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

43. © 2017 280 Group LLC. 47
Case Studies
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

44. © 2017 280 Group LLC. 48
Customer
Loyalty
Program
Consumer
Ad
Netwtork
Brand
Partner
Case Study: IdeaLab!
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

45. © 2017 280 Group LLC. 49
Case Study: IdeaLab!
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Consumers would
surf for rewards
Advertisers would
pay cost per click
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

46. © 2017 280 Group LLC. 50
Case Study: IdeaLab!
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Brands have need to
lower cost of loyalty
program
• Booked Pre-orders
from Brand Partners
Consumers would
surf for rewards
Advertisers would
pay cost per click
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

47. © 2017 280 Group LLC. 51
Case Study: IdeaLab!
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Brands have need to
lower cost of loyalty
program
• Booked Pre-orders
from Brand Partners
Learned from pitching
what online marketers
valued
Consumers would
surf for rewards
Advertisers would
pay cost per click
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

48. © 2017 280 Group LLC. 52
Case Study: IdeaLab!
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Brands have need to
lower cost of loyalty
program
• Booked Pre-orders
from Brand Partners
Launched a
consumer-side only
MVP and rapidly
iterated for one
month to achieve
fit with users
Learned from pitching
what online marketers
valued
Consumers would
surf for rewards
Advertisers would
pay cost per click
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

49. © 2017 280 Group LLC. 53
Case Study: IdeaLab!
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Brands have need to
lower cost of loyalty
program
• Booked Pre-orders
from Brand Partners
Launched a
consumer-side only
MVP and rapidly
iterated for one
month to achieve
fit with users
• User interviews
• Listened to
users discussion
Learned from pitching
what online marketers
valued
Consumers would
surf for rewards
Advertisers would
pay cost per click
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

50. © 2017 280 Group LLC. 54
Case Study: LTO Management
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

51. © 2017 280 Group LLC. 55
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Contextual
interviews to
understand need
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

52. © 2017 280 Group LLC. 56
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Customers
manually managed
process with fax
and Excel
spreadsheets
Contextual
interviews to
understand need
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

53. © 2017 280 Group LLC. 57
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Customers
manually managed
process with fax
and Excel
spreadsheets
Sold solution to
two clients based
on concept
Contextual
interviews to
understand need
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

54. © 2017 280 Group LLC. 58
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Customers
manually managed
process with fax
and Excel
spreadsheets
Sold solution to
two clients based
on concept
Contextual
interviews to
understand need
Shared mockups to
get feedback on
design
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

55. © 2017 280 Group LLC. 59
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Customers
manually managed
process with fax
and Excel
spreadsheets
Sold solution to
two clients based
on concept
Two sequential releases:
1. Automate collection
w/ Report
2. Alerts engine
Contextual
interviews to
understand need
Shared mockups to
get feedback on
design
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

56. © 2017 280 Group LLC. 60
Case Study: Instill
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Customers
manually managed
process with fax
and Excel
spreadsheets
Sold solution to
two clients based
on concept
Two sequential releases:
1. Automate collection
w/ Report
2. Alerts engine
Contextual
interviews to
understand need
Shared mockups to
get feedback on
design
• Interviewed customers
on satisfaction.
• Most issues related to
data quality from the
distributor
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

57. © 2017 280 Group LLC. 61
Make provisioning enterprise VOIP services simpler for telecom carriers
Asses value of
automation
• Consulting engagement to streamline process, and understand
steps involved
Validate
solution and
price point
• Software script that had to be manually run by the systems
engineer
Iterate on
solution
• Create interface for provisioning administrator to use to validate
data file and make manual entries
Scale
• Develop clean external interfaces to accommodate customer-
specific requirements
Case Study: Leonid Systems
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

58. © 2017 280 Group LLC. 62
Case Study: Leonid Systems
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Sold Consulting Agreement
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

59. © 2017 280 Group LLC. 63
Case Study: Leonid Systems
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Sold Consulting Agreement
Sold a software
script to automate
the process
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

60. © 2017 280 Group LLC. 64
Case Study: Leonid Systems
Problem Tests Solution Tests - Product & Business Model
Needs PerceivedValue of Solution RealizedValue of Solution
BeliefBehavior
Sold Consulting Agreement
Releases:
1. Software script
2. GUI and validations
3. Develop interfaces
Sold a software
script to automate
the process
Interviewed customers on
satisfaction.
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

61. © 2017 280 Group LLC. 65
Wrap-up
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

62. © 2017 280 Group LLC. 66
• Real Product
• Behavioral validation
– Confirm the solution delivers value to the user
– Learn about how to further improve fit
The MVP
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

63. © 2017 280 Group LLC. 67
• Know if you are testing
– Need
– Perceived Value
– Realized Value
• Understand the strengths and limitations of each
test
– Behavioral tests confirm what users ‘do’
– Belief tests confirm what users ‘think’
Pick the right test for the situation
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

64. © 2017 280 Group LLC. 68
Get to MVP as soon as possible
“Test fast, fail fast, adjust fast”
- Tom Peters
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

65. © 2017 280 Group LLC. 69
• About the 280 Group
• Untangling the MVP in lean product
validation
• Giveaway + Q&A
Agenda
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

66. © 2017 280 Group LLC. 70
• Private Lean Product Management Workshop
• Agile Excellence for Product Managers and
Product Owners (ACPMPO) Course
– Public
– Private
– Online
• ACPMPO Certification
Agile and Lean Product Management Offerings
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/

67. © 2017 280 Group LLC. 71
Download Greg Cohen’s Book!
Download Lean Product ManagementBook: https://280group.com/lean-product-management-book-download/
Download your copy:
https://280group.com/lean-product-management-
book-download/

68. © 2017 280 Group LLC. 72
Q & A Session
Ask questions. Our team is
standing by to help.
The webinar slides will be posted to our
website and Slideshare
http://www.Slideshare.net/aipmm
The webinar recording will be posted at
http://www.AIPMM.net
for members
Download the PM Challenges Survey Results: go.280group.com/challenges-aipmm

69. Upcoming Webcast
Consumer Behavior Part 2: Psychological and
Internal Processes that Shape Buying Decisions
Friday, July 14th
WWW.AIPMM.COM/NEW-EVENTS
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Website: http://www.aipmm.com
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