Lean Product Development

Presented at the Agile Conference in Gatineau/Ottawa. Designed to help people develop a tactical strategy to testing their idea online.

Transcript

1. CUTTING THE FAT
2. JEVIN MALTAIS Principle Consultant
3. We are the SWAT team of software development “We get things done” ! Once the feature design is completed, 2 weeks to the first iteration
4. Doctors Canada Post
5. BUILDING A BUSINESS IS RISKY
6. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem?
7. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem? Does the solution fix the problem?
8. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem? Does the solution fix the problem? Will your customer pay for the solution?
9. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem? Does the solution fix the problem? Will your customer pay for the solution? Will your customer use the solution?
10. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem? Does the solution fix the problem? Will your customer pay for the solution? Will your customer use the solution? Is the price right?
11. BUILDING A BUSINESS IS RISKY Is this solution solving a real problem? Does the solution fix the problem? Will your customer pay for the solution? Will your customer use the solution? Is the price right? Will I be able to reach my target audience?
12. Right problem + right solution = ☺customer ! How to build a prototype for $0 Today Problem that you think exists and your proposed solution is right ! Building a prototype for $0
13. Idea! Code it Pray for users $$$$$ “Build it and they will come” Write up a plan Find $$$ Hire people This is what I did Has anyone else gone this route?
14. Idea! Code it Pray for users $$$$$ “Build it and they will come” Write up a plan Find $$$ Hire people Optional This is what I did Has anyone else gone this route?
15. Idea! Code it Pray for users $$$$$ “Build it and they will come” Write up a plan Find $$$ Hire people Optional ARGH! This sucks! No one shows This is what I did Has anyone else gone this route?
16. BUILD IT AND THEY WILL COME This is how I was taught! I took an entrepreneur course! When I built my first product, I genuinely believed if I build an amazing piece of technology, people will come running to use it. We raised $50k. Hired some employees. Built something. No one came. Wanted to see if there was a better way to build something people would pay me for.
17. There’s got to be a better way!
18. Tim Ferris Eric Ries I just happen to read the 4-hour workweek Tim does a ton of validating that his idea has value before building any product Found these other guys: Eric Reice, Ash Maurya and Steve Blank and they do lots of this stuff. It’s allowed me to be far more agile with my clients, and on the products I build to sell
19. Idea! Understand the problem Understand the workflow “Customer Problem First” Code it A bunch of happy users Mockups Do it with 20+ potential customers Notice when we code? LATE in the process
20. HERE’S THE SCENARIO:
21. HERE’S THE SCENARIO: You have an idea (say a lead management tool for Mortgage Agents)
22. HERE’S THE SCENARIO: You have an idea (say a lead management tool for Mortgage Agents)
23. HERE’S THE SCENARIO: You have an idea (say a lead management tool for Mortgage Agents) You haven’t built anything yet
24. HERE’S THE SCENARIO: You have an idea (say a lead management tool for Mortgage Agents) You haven’t built anything yet
25. HERE’S THE SCENARIO: You have an idea (say a lead management tool for Mortgage Agents) You haven’t built anything yet Today, would you rather:
26. No feedback from the potential end-users Nothing
27. 20 mortgage agents who say: “cool idea”
28. 20 mortgage agents who say: “that’s exactly my problem, take my money”
29. WHICH WOULD YOU PREFER? Nothing Actually a question Money talks: If they are willing to part with their money, it means you hit on something If they say nice idea: there’s no reason for them to say “your idea sucks”
30. INTERVIEWING PEOPLE
31. Goal #1: Understand if our problem is valid Makes sense right? Unfortunately, this does not happen enough
32. Why not? Introverts, rejection, anyone else? Building software is the fun stuff! Not talking to people However, to ensure you really understand the problem, and if the solution will solve that problem, you need to talk to customers
33. Let make it systematic and easy (easier!)
34. 1. FINDING PEOPLE TO INTERVIEW ... e.g. mortgage agents
35. How can we find these people?
36. How can we find these people?
37. How can we find these people?
38. How can we find these people? “Mortgage Agents Ottawa”
39. How can we find these people? “Mortgage Agents Ottawa”
40. How can we find these people? “Mortgage Agents Ottawa”
41. 2. CUSTOMER INTERVIEW LIST
42. 3. WARM THEM UP WITH AN EMAIL Subject: “Strange Question” ! Hi Jimmy, I found you on LinkedIn earlier today. I’m a software entrepreneur in Ottawa. I’d like to interview you to add to my market research of pains in the industry. In return I’ll give you all the findings from across the industry. ! Would you be up for a 25 minute phone chat Tuesday at 3pm? ! Cheers! Jevin Maltais http://www.linkedin.com/in/jevinmaltais Cell: 613-265-5389
43. 3. WARM THEM UP WITH AN EMAIL Subject: “Strange Question” ! Hi Jimmy, I found you on LinkedIn earlier today. I’m a software entrepreneur in Ottawa. I’d like to interview you to add to my market research of pains in the industry. In return I’ll give you all the findings from across the industry. ! Would you be up for a 25 minute phone chat Tuesday at 3pm? ! Cheers! Jevin Maltais http://www.linkedin.com/in/jevinmaltais Cell: 613-265-5389
44. 3. WARM THEM UP WITH AN EMAIL Subject: “Strange Question” ! Hi Jimmy, I found you on LinkedIn earlier today. I’m a software entrepreneur in Ottawa. I’d like to interview you to add to my market research of pains in the industry. In return I’ll give you all the findings from across the industry. ! Would you be up for a 25 minute phone chat Tuesday at 3pm? ! Cheers! Jevin Maltais http://www.linkedin.com/in/jevinmaltais Cell: 613-265-5389
45. 3. WARM THEM UP WITH AN EMAIL Subject: “Strange Question” ! Hi Jimmy, I found you on LinkedIn earlier today. I’m a software entrepreneur in Ottawa. I’d like to interview you to add to my market research of pains in the industry. In return I’ll give you all the findings from across the industry. ! Would you be up for a 25 minute phone chat Tuesday at 3pm? ! Cheers! Jevin Maltais http://www.linkedin.com/in/jevinmaltais Cell: 613-265-5389
46. 3. WARM THEM UP WITH AN EMAIL Subject: “Strange Question” ! Hi Jimmy, I found you on LinkedIn earlier today. I’m a software entrepreneur in Ottawa. I’d like to interview you to add to my market research of pains in the industry. In return I’ll give you all the findings from across the industry. ! Would you be up for a 25 minute phone chat Tuesday at 3pm? ! Cheers! Jevin Maltais http://www.linkedin.com/in/jevinmaltais Cell: 613-265-5389
47. 400 emails 30 interviews
48. 400 emails 30 interviews 7.5% conversion
49. 400 emails 30 interviews 7.5% conversion * Best were via introductions, or if I had someone in common via LinkedIn
50. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time
51. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry.
52. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry. 2. Ask how they spent the majority of their week
53. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry. 2. Ask how they spent the majority of their week 3. Ask them what problems they experience in that area
54. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry. 2. Ask how they spent the majority of their week 3. Ask them what problems they experience in that area 4. Ask about the problem you assume exists for your idea
55. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry. 2. Ask how they spent the majority of their week 3. Ask them what problems they experience in that area 4. Ask about the problem you assume exists for your idea 5. Ask about their ideal workflow for that problem
56. 4. THE INTERVIEW Key tip: Come up with a script a ahead of time 1. Explain your honest goal: Hoping to understand the problems in the industry. 2. Ask how they spent the majority of their week 3. Ask them what problems they experience in that area 4. Ask about the problem you assume exists for your idea 5. Ask about their ideal workflow for that problem 6. Ask permission to get back to them with some mockups
57. 5. THE PROPOSAL • Write out a proposed workflow for yourself. • Do some mockups. • Email each person individually and get them to click through. • Ask them for feedback.
58. If it’s a problem they hate + solution that helps them =
59. WHY A MOCKUPS? Mockups Full Product vs What are some tradeoffs of building a mockup instead of building the full product right away? - Mockups: Really fast to build. Can learn a lot by showing them to customers - high ROI. Easy/fast to change (agile!) Tradeoff: User can’t actually use it - Full Product: Can take a while to build. User can use it right away. Easier to ask for money. Harder to change
60. http://www.youtube.com/watch?v=xyigiQFRHq8
62. MINIMUM VIABLE PRODUCT (MVP) Once you’re ready to build the product
63. MINIMAL VIABLE PRODUCT “strategy used for fast and quantitative market testing of a product or product feature” -- Wikipedia
64. - Most places would say, buy inventory, get a call center etc. - 1999, zappos went to a local shoe store took pictures of the shoes - Made a website with a simple ecommerce site and spent most of their effort marketing it. They were testing people would actually buy shoes on a website
66. LET’S BUILD IT! Mortgage agents Problems: •Tracking people interested in mortgages •Following up with the client •Following up with the lenders (banks) she applied to •Following up with the lawyer •Know when to expect to get paid their commission
67. EX: MORTGAGE AGENT LEAD MANAGEMENT What am I trying to learn? Best workflow for mortgage agents ! Do it manually first! ! •Agents email you their leads •Manual email reminders •Track the status in an excel sheet •Follow up with the lender •Email the applicant as the “assistant” to the mortgage agent Best part? NO CAPITAL COST! Get highrise or an open source CRM
68. EX: MORTGAGE AGENT LEAD MANAGEMENT What am I trying to learn? Best workflow for mortgage agents ! Do it manually first! ! •Agents email you their leads •Manual email reminders •Track the status in an excel sheet •Follow up with the lender •Email the applicant as the “assistant” to the mortgage agent FREE Best part? NO CAPITAL COST! Get highrise or an open source CRM
69. EX: MORTGAGE AGENT LEAD MANAGEMENT What am I trying to learn? Best workflow for mortgage agents ! Do it manually first! ! •Agents email you their leads •Manual email reminders •Track the status in an excel sheet •Follow up with the lender •Email the applicant as the “assistant” to the mortgage agent FREE No Development skills! Best part? NO CAPITAL COST! Get highrise or an open source CRM
70. GREAT RESOURCES Building products Interviewing https://coldcallingbook.net/
71. NextLevelFreelance.com
72. WANT MORE? Ottawa workshop in January Bi-weekly newsletter on building products http://quickjack.ca/newsletter/ jevin@quickjack.ca