Welcome to   RISE WEEK 2012How to Create Products That Don’t Suck    A Discovery Process for Creating Breakthrough Product...
High New Product Failure Rate• Only one product concept out of seven becomes a new  product winner; and 44% of businesses’...
High New Product Failure Rate• Only one product concept out of seven becomes a new  product winner; and 44% of businesses’...
Why Do So Many Products Suck?1. Idea to Product
Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product
Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product3. Market evidence & vali...
Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product3. Market evidence & vali...
Why Do So Many Products Suck?1.   Idea to Product2.   One point of market evidence to idea to product3.   Market evidence ...
Keys to Products That Don’t Suck• Compelling Market Opportunity   – Big painful issues   – That many in your target market...
Model for Discovery                                                                                      Four Key Steps   ...
Four Key Pillars• Market Problem – if you’re not solving a problem, there is  no need for a product!• Product – How do you...
Example
Model for Discovery                                                                                      Four Key Steps   ...
Market Evidence (of Market Problem)• Sources of Market Evidence   – Customers   – Non-customers   – Market trends/shifts  ...
Market Evidence (of Market Problem)• Sources of Market Evidence   – Customers   – Non-customers   – Market trends/shifts  ...
Start With Hypothesis–   Buyer/User ‘W’–   In Market Segment “X”–   Has problem “Y”–   That happens when “Z” occurs–   We ...
Exercise 1• Create a Hypothesis for a New Opportunity   – Buyer/User   – Market Segment   – Market Problem   – When it hap...
Screening• Alignment with company   – Strategy   – Target markets   – Core competencies• Potential Competition   – Does so...
Validate the Hypothesis (1)• Market problem and market segment(s)• Speaking to potential customers (buyers & users)   – Mo...
Exercise 2• How are we going to get someone to talk to us?
Henry Ford’s Quote        “If I had asked people what they wanted,           they would have said faster horses.”         ...
What Do They Need (To Do)?“People dont want to buy aquarter-inch drill. Theywant a quarter-inch hole!”–Theodore Levitt    ...
What We Want to Identify• Problems, Goals, Needs   – What do they want to do that they can’t do?   – What do they want to ...
Whom to Ask?• Strategic/Financial (Executives)• Operational (Managers)• Task Performers (Front-line)                      ...
Discover Personal Needs            Source: http://www.teach-nology.com/tutorials/teaching/whatareneeds.html               ...
Exercise 3• Conduct a short interview to validate hypothesis   – Groups of 3 (potential customer, interviewer, observer)
Validate Hypothesis (2)• Create product & business model concept   – Low cost way of presenting product concept   – Mockup...
Plan Strategy• Define & discover at greater depth• Competitive research (strategy, position, strength)• Validate the marke...
Build Solution• Define Minimum Viable Product (MVP)   – Just enough functionality to solve the most important     market p...
To Market• Sell your first customers• Based upon market validation work• Targeted Market Development Plan   – Well defined...
Positioning Statement• For (target customer)• Who (statement of need or opportunity)• The (product name) is a (product cat...
Exercise 4• Write a positioning statement
Model for Discovery                                                                                      Four Key Steps   ...
Key Principles• Hypothesis – Discovery – Validate• Continuous engagement with target market   – Validate important decisio...
Additional References
Thank You!                      Tom Evans                   Lûcrum Marketing             tevans@lucrum-marketing.com      ...
COMMUNITY SUPPORT                         Did you enjoy this session?Please support your local entrepreneurs and help us t...
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How to make products that don't suck - RISE Austin - Mar 30 2012

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Most start-up companies begin with what they think is a brilliant idea and they immediately jump to building the product, and most of these products suck. Creating innovative products that result in market breakthrough requires a process of multiple iterations of discovery that drive you deeper into understanding the market problems and how to solve them with a differentiated solution. Breakthrough products are based upon solving a significant Market Problem with a Product and Business Model that create a competitive advantage and a Market Strategy that motivates buyers to purchases your product. In this session, learn this iterative discovery process that leads to breakthrough products and how to apply it to your own products.

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How to make products that don't suck - RISE Austin - Mar 30 2012

  1. 1. Welcome to RISE WEEK 2012How to Create Products That Don’t Suck A Discovery Process for Creating Breakthrough Products (For Start-ups through Big Enterprises) Hosted by Tom Evans Principal, Lûcrum Marketing @compellingmktr
  2. 2. High New Product Failure Rate• Only one product concept out of seven becomes a new product winner; and 44% of businesses’ product development projects fail to achieve their profit targets.• One out of four development projects succeeds commercially. (75% failure rate) Robert G Cooper Copyright 2012 - LÛCRUM MARKETING
  3. 3. High New Product Failure Rate• Only one product concept out of seven becomes a new product winner; and 44% of businesses’ product development projects fail to achieve their profit targets.• One out of four development projects succeeds commercially. (75% failure rate) Robert G Cooper Copyright 2012 - LÛCRUM MARKETING
  4. 4. Why Do So Many Products Suck?1. Idea to Product
  5. 5. Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product
  6. 6. Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product3. Market evidence & validation to product
  7. 7. Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product3. Market evidence & validation to product4. Market evidence & validation, product validation, no clear market strategy
  8. 8. Why Do So Many Products Suck?1. Idea to Product2. One point of market evidence to idea to product3. Market evidence & validation to product4. Market evidence & validation, product validation, no clear market strategy5. Market evidence & validation, product validation, no profitable business model
  9. 9. Keys to Products That Don’t Suck• Compelling Market Opportunity – Big painful issues – That many in your target market – Are willing to pay to solve• Compelling Solution Discovery – Differentiated Value Proposition + – Profitable business model – Time to market Validation• Compelling Market Strategy – Motivates target market – To solve problem with your solution
  10. 10. Model for Discovery Four Key Steps Validate Plan Strategy Build Solution To Market Hypothesis Market Problem Four Key Pillars Product Business Model Market Strategy Valid Market Ready to Validation Valid Hypothesis Opportunity Launch Market Growth Product-to-Market™ ModelProduct-to-Market is a trademark of Lûcrum Marketing
  11. 11. Four Key Pillars• Market Problem – if you’re not solving a problem, there is no need for a product!• Product – How do you solve the market problem in a valuable and differentiated manner?• Business Model – How do you deliver the product and profitably capture the value?• Market Strategy – Who is going to buy it and why?
  12. 12. Example
  13. 13. Model for Discovery Four Key Steps Validate Plan Strategy Build Solution To Market Hypothesis Market Problem Four Key Pillars Product Business Model Market Strategy Valid Market Ready to Validation Valid Hypothesis Opportunity Launch Market Growth Product-to-Market™ ModelProduct-to-Market is a trademark of Lûcrum Marketing
  14. 14. Market Evidence (of Market Problem)• Sources of Market Evidence – Customers – Non-customers – Market trends/shifts – Unexpected occurrences – New technologies – Competitors – Personal experience – Etc.
  15. 15. Market Evidence (of Market Problem)• Sources of Market Evidence – Customers – Non-customers – Market trends/shifts – Unexpected occurrences – New technologies – Competitors – Personal experience – Etc.
  16. 16. Start With Hypothesis– Buyer/User ‘W’– In Market Segment “X”– Has problem “Y”– That happens when “Z” occurs– We can solve it by creating/delivering solution “A”E.g.: Owners of small manufacturing operations thatuse hot water & steam are unable to managemanufacturing costs due to the volatility of fuel prices.We can solve this by providing a high temperaturesolar heating system under a lease agreement.
  17. 17. Exercise 1• Create a Hypothesis for a New Opportunity – Buyer/User – Market Segment – Market Problem – When it happens
  18. 18. Screening• Alignment with company – Strategy – Target markets – Core competencies• Potential Competition – Does someone already do this? – Are there other ways to address this problem?
  19. 19. Validate the Hypothesis (1)• Market problem and market segment(s)• Speaking to potential customers (buyers & users) – Most companies don’t and won’t do this • Significant time investment – Requires many conversations (cold calling) • Minimum: 20 conversations • May take over 100 conversations• Iterate until validated or rejected Copyright 2012 - LÛCRUM MARKETING
  20. 20. Exercise 2• How are we going to get someone to talk to us?
  21. 21. Henry Ford’s Quote “If I had asked people what they wanted, they would have said faster horses.” Copyright 2011 - LÛCRUM MARKETING
  22. 22. What Do They Need (To Do)?“People dont want to buy aquarter-inch drill. Theywant a quarter-inch hole!”–Theodore Levitt Copyright 2011 - LÛCRUM MARKETING
  23. 23. What We Want to Identify• Problems, Goals, Needs – What do they want to do that they can’t do? – What do they want to improve (decrease/increase)?• Why is this P/G/N important?• When does this happen (usage scenarios)• How do you currently do this?• What is your current satisfaction?• What is the impact?• Who are they (Personas)? Copyright 2011 - LÛCRUM MARKETING
  24. 24. Whom to Ask?• Strategic/Financial (Executives)• Operational (Managers)• Task Performers (Front-line) Copyright 2011 - LÛCRUM MARKETING
  25. 25. Discover Personal Needs Source: http://www.teach-nology.com/tutorials/teaching/whatareneeds.html Copyright 2011 - LÛCRUM MARKETING
  26. 26. Exercise 3• Conduct a short interview to validate hypothesis – Groups of 3 (potential customer, interviewer, observer)
  27. 27. Validate Hypothesis (2)• Create product & business model concept – Low cost way of presenting product concept – Mockup, prototype, wire frame, story board, presentation, product description• Validate product & business model concept – Present concept and receive feedback • Does the problem still resonate? • Does the approach solve the problem? • What is the Minimum Viable Product (MVP)• Iterate until validated or rejected
  28. 28. Plan Strategy• Define & discover at greater depth• Competitive research (strategy, position, strength)• Validate the market opportunity – Business Case - Can it be profitable?• Detailed design of product & business model – Market requirements, product requirements, user stories, etc. – Pricing model, delivery mechanism, costs to deliver, etc.• Iterate until validated or rejected
  29. 29. Build Solution• Define Minimum Viable Product (MVP) – Just enough functionality to solve the most important market problems – For small segment of market (early adopters, etc.) – Willing to pay for this functionality – Fast to market – Learning• Continue to discover, validate, refine!
  30. 30. To Market• Sell your first customers• Based upon market validation work• Targeted Market Development Plan – Well defined target market – Clear understanding of buyer roles and their challenges/goals/needs – Compelling reason to buy from you • Value Proposition – what we do for you • Positioning & Differentiation – why buy our solution• Continue to discover, validate, refine!
  31. 31. Positioning Statement• For (target customer)• Who (statement of need or opportunity)• The (product name) is a (product category)• That (statement of key benefit – that is compelling reason to buy)• Unlike (primary competitive alternative)• Our product (statement of primary differentiation) Geoffrey Moore: “Crossing the Chasm”
  32. 32. Exercise 4• Write a positioning statement
  33. 33. Model for Discovery Four Key Steps Validate Plan Strategy Build Solution To Market Hypothesis Market Problem Four Key Pillars Product Business Model Market Strategy Valid Market Ready to Validation Valid Hypothesis Opportunity Launch Market Growth Product-to-Market™ ModelProduct-to-Market is a trademark of Lûcrum Marketing
  34. 34. Key Principles• Hypothesis – Discovery – Validate• Continuous engagement with target market – Validate important decisions• Planning is good, but learning is better• Fail fast – discover fast!
  35. 35. Additional References
  36. 36. Thank You! Tom Evans Lûcrum Marketing tevans@lucrum-marketing.com +1.512.961.5267 @compellingmktr Copyright 2012 - LÛCRUM MARKETING
  37. 37. COMMUNITY SUPPORT Did you enjoy this session?Please support your local entrepreneurs and help us to keep this conference free. RISE Global is a non-profit organization, and your contributions help us continue delivering the value of a high-dollar conference with an unbeatable price tag. Please donate at www.riseglobal.org/donate Be sure to check out our other sessions and special events during RISE Week 2012 at www.riseglobal.org/austin! The mission of RISE is to inspire and empower entrepreneurs at all stages.

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