RailsConf 2016 - Mastering the Product Discovery Canvas

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 2 agile Coach • agile Trainer Software Developer E-mail: [email protected] Twitter: @agileInnovator LinkedIn: LinkedIn.com/in/agilebillallen Related Website: ProductDiscoveryCanvas.com Slides: SpeakerDeck.com/billagileInnovator/railsconf2016 Bill Allen

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 6 1987 2001 2015 1970 14 years 14 years 17 years Waterfall Objectory Process (RUP) Agile Manifesto Product Discovery Evolution of Development Methodologies

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 8 Simplicity - the art of maximizing the amount of work not done - is essential. A Principle From the Agile Manifesto How do we build a successful product?

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 9 Minimize Outputs! Maximize Outcomes and Impacts! Don’t build everything.     Build only what is important to your customers! Jeff Patton, User Story Maps How do we build a successful product?

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 10 *Image Credits: http://steveblank.com/ © 2011 DevJam - All rights reserved. Collaborative Chartering Customer Discovery Lean Startup Pretotyping User Story Mapping Methods of Building a Successful Product Discovery & Validation

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 12 There are other canvases Business Model Canvas - Alexander Osterwalder Lean Canvas - Ash Maurya Opportunity Analysis Canvas - Dr. James V. Green Opportunity Canvas - Jeff Patton and many others …

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 14 Using the Product Discovery Canvas All of us are smarter than some of us! Invite Skills & Experience over titles: People who know the product (Product Owners) Who know the code (Developers) Business POV (Analyst) Who know how to validate (Testers) Key Stakeholders

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 17 • Launched in October 2011 in SF • Founded as a software company • Privately held - Valuation of $68B (Dec 2015)

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 18 • Launched Nov 2011 in the UK - one month after Uber • Founded as a taxi company by three former taxi drivers • Enters U.S. market in early 2013 with $100M in funds

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator Legal Disclaimer Following is a fictional account of Hailo. It was developed for the purposes of instruction on product discovery practices. Information about Hailo was obtained from this post: http://blog.placeit.net/apps-fail-teach-us-app-marketing/ 19

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 22 1 Vision Statement What are you building? What value does it provide? Vision Statement / Elevator Pitch:

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 23 1 Vision Statement What are you building? Hailo is a mobile app to hail a taxi from your phone. What value does it provide? Assists taxi drivers in locating fares. Passengers gain assistance navigating the twisty and confusing streets of their city. Vision Statement / Elevator Pitch: Hailo is a mobile app that allowing passengers to use a smartphone to quickly hail a taxi. In turn, drivers get more fares; passengers gain assistance navigating the twisty and confusing streets of their city.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 24 2 Know your Users & Customers 1. Who are you building this for? • Describe the different types of users & customers of your product? 2. What benefit will they obtain? Benefits obtained from your product.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 25 2 Know your Users & Customers 1. Who are you building this for? • Describe the different types of users & customers of your product? 2. What benefit will they obtain? Passengers – want quick, efficient, hassle-free access to a taxi; navigation assistance for hard to locate destinations. Taxi Drivers – that want to increase fares. App provides more passengers. Independent Drivers – They were not targeted. Benefits obtained from Hailo is Drivers get more fares; Passengers get navigation assistance through the twisty and confusing streets of a city.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 26 2 User & Customer Personas Some memorable name (Sticky Name) Description: (who are they) Benefits: (what will they obtain from using the product) Actions: (how do they use the product)

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 27 2 User & Customer Personas Patty the Particular Passenger Description: Owns a smartphone. Wants to save time. Benefits: Quick, efficient, hassle-free access to a taxi. Navigation assistance. Actions: Signs up for Hailo, Profile has a payment info Hails taxi by pinning a point on the map Receives native OS notifications (not SMS) of trip progress Authorizes payment after arrival to destination Can customize the gratuity. Rates the driver.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 28 2 User & Customer Personas Taj the Taxi Driver Description: Owns a smartphone. Understands complex layout of the city. Wants to increase passengers. Benefits: Increased revenue Quick payment Actions: Signs up as Hailo Taxi partner Profile has a payment info Receives native OS notifications (not SMS) of location of a fare Picks up passenger Finalizes passenger drop-off and fare charges Received weekly commissions

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 29 3 Define Goals The Business goals of Hailo? The Technology goals of Hailo? The Process Improvement goals of Hailo?

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 30 3 Define Goals The Business goals of Hailo? 1.Help Taxi drivers locate fares. 2.Help Passengers navigate twisty and confusing streets of a city. The Technology goals of Hailo? 1. Smartphone equipped drivers can assist passengers with navigating twisty and confusing streets 2. Passengers can hail a taxi from their smartphone 3. Hailo can receive instantaneous feedback on the quality of service provided by drivers 4. Enhanced safety for drivers and passengers 5. Safe use of credit and debit cards on new payments system instead of older credit card machines The Process Improvement goals of Hailo? 1. Modernize the manner in which passengers secure taxis, to utilize smartphones. 2. Drivers can use smartphone to call dispatcher for assistance with navigation through cities with winding and difficult street geography.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 32 3 Goals The frequently occurring problem(s) that Hailo solves are: 1. Passengers currently use hand signals, whistles or shouts to hails passing taxis. 2. Passengers place phone calls to hail taxis 3. Passengers wait for taxis at marked locations

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 33 4 Define Success Measures We will know that your product is a Success:   The “product” user community will be transformed in the following ways:

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 34 4 Define Success Measures We will know that Hailo product is a Success: 1. Smartphone equipped drivers can assist passengers with navigating twisty and confusing streets 2. Passengers can hail a taxi from their smartphone 3. Hail can receive instantaneous feedback on the quality of service provided by drivers 4. Enhanced safety for drivers and passengers 5. Safe use of credit and debit cards on new payments system instead of older credit card machines 6. Automation of the passenger pickup – taxi destination – payment flow. 7. Revenue generation for drivers and in turn Hailo. 8. Flexible and improved employment opportunities for Taxi drivers.   The Hailo user community will be transformed in the following ways: 1. Passengers find the taxi hailing experience to be more convenient 2. Increased safety for Drivers and Passengers. 3. Drivers can earn more money.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 35 4 Define Success Measures The Outcomes of having your product? Today? For the future? The Impact of having the product:

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 36 4 Define Success Measures The Outcomes of having Hailo? Today? For the future? The taxi experience is improved because drivers can assist passengers in fining difficult locations. Increased customer base. Increased revenues for Hailo and Taxi drivers. The Impact of having Hailo: Customers are provided with an easier taxi hailing experience Increased customer use will result in increased revenues

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 37 5 Timeframe for Discovery In what Timeframe do we desire plausible feedback about the viability of your product: Within one-week.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 38 5 Timeframe for Discovery In what Timeframe do we desire plausible feedback about the viability of Halio: Within one-week.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 40 6 Tell Stories about the Product Discuss implementing a goal. Walk a simple example of the goal Take a different route (different example of the same goal) Capture random discussions as you go Add sketches or picture to enhance the discussions Tell a story about your product using who, why, what in descriptive sentences. Have a conversation about how a persona uses the system when experiencing a goal. Play “What if” … take a different route on the same goal Construct a narrative flow from left to right, top to bottom

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 41 6 Tell Stories about the Product Hailo provides Passengers with these features: •Passenger wanting a secure access to Hailo service •Passenger can edit their profile: •contact information •payment information •Passenger hails a taxi by dropping a pin point on the map •Passenger wanting trip progress info receives native OS notifications (not SMS) of trip •Passenger finalizes payment. •Passenger can customize the gratuity. •Passenger rates the driver. •Passengers are notified of surge pricing when taxis are most in demand

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 42 6 Tell Stories about the Product Hailo provides Taxi Drivers with these features: •Taxi drivers sign up to be drivers for Hailo •Taxi Drivers must provide own phone (Uber provides phone) •Taxi Drivers are charged a 15% margin on fares. •Taxi Drivers are required to provide Hailo a cut on the tips. •Taxi Drivers are subject to the following monthly costs: 1.dispatch radio at a cost of $375 per month 2.payment terminal $40 a month plus 10% on the transaction •Taxi drivers receive notification of a fare •limited geolocation capability; for example the name of the establishment and the neighborhood, but no map or address. •Taxi drivers finalize the payment of fare •commissions on a weekly basis, deposited to a bank account

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 6 Tell Stories about the Product Arrange the product stories into a Story Map. 1.Goals 2.Personas 3.Benefits the product will provide 4.Actions (Features) 43 Goals Persona Benefit Activity - Feature Persona Persona

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 44 Pretotyping “Most new products will fail … even if they are flawlessly executed!” Alberto Savoia, Pretotype It The Law of Failure

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 45 Pretotyping A Pretotype is a pretend prototype. It is used to quickly and inexpensively determine if a product idea will resonate with customers? Alberto Savoia, Pretotype It

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 46 7 Validate if it is the right Product Kinds of Pretotypes: The Fake Door – Create a fake “entry” for a product that doesn’t yet exist in any form. — Customer Discovery A Mechanical Turk pretotype is ideal for situations where you can replace costly, complex or yet-to-be-developed technology with a concealed human expert performing the functions of that supposedly advanced technology. The Re-Label – Put a different label on an existing product that looks like the product you want to create. The Minimum Viable Product (aka Stripped Tease) – Create a functional version of it, but stripped down to its most basic functionality.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 47 7 Validate if it is the right Product Use pretotypes to quickly and inexpensively answer these questions: 1.Do passengers want Hailo? 2.Do taxi drivers want Hailo? 3.Will passengers use Hailo? 4.Will taxi drivers use Hailo? 5.Should we build Hailo? Pretotype - Do Passengers want Hailo •Create a Fake Door - a Fake Landing Page • Purchase google ad words: ‘New York Taxi Service’, ‘New York Taxi Discounts’ • When Passenger performs search capture metrics for click throughs - are people interested? • Offer free premium membership for early sign up in exchange for answering survey questions about usefulness of the navigation feature

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 48 7 Validate if it is the right Product Use pretotypes to quickly and inexpensively answer these questions: 1.Do passengers want Hailo? 2.Do taxi drivers want Hailo? 3.Will passengers use Hailo? 4.Will taxi drivers use Hailo? 5.Should we build Hailo? Pretotype - Do Passengers want Hailo •Create a Re-label - Pretend that the service already exists • Create an arrangement with a cab company • When Passenger calls for a taxi they are provided an option to receive a taxi driver that provides navigation services • Capture metrics on people are interested in the service

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 50 8 Learn from the Product: Build - Measure - Learn 1. Examine the User Story Map for the something that you want gain insight about. 2. Goal is to learn, as fast as possible, if we are building the right thing.

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 51 8 Learn from the Product: Build - Measure - Learn 1. Examine the User Story Map for the something that you want gain insight about. 2. Goal is to learn, as fast as possible, if we are building the right thing. Investigate new Driver sign up features — Goal is attract 100 cabs to gather data •Taxi Drivers are required to provide own phone (Uber provides phone) •Taxi Drivers are charged a 15% margin on fares. •Taxi Drivers are required to provide Hailo a cut on the tips. •Taxi Drivers are subject to the following monthly costs: 1. dispatch radio at a cost of $375 per month 2. payment terminal $40 a month plus 10% on the transaction Investigate taxi hailing features — Hailo will offer free rides to Passengers to gather data •Pin location using mapping service api •In exchange for no fee see if customers want navigation assistance

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 53 1.Lack of understanding the users and customers of their service. a. NYC taxi drivers did not need assistance locating fares b.NYC passengers would not pay a premium for navigation assistance from cabbies 2.Intense Competition from other apps that connect drivers to passengers Why did HAILO fail?

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© 2016, agile Innovation Labs, All Rights Reserved. http://www.agileInnov.com @agileInnovator 55 Questions Feedback Bull$^!+ agile Coach • agile Trainer Software Developer E-mail: [email protected] Twitter: @agileInnovator LinkedIn: LinkedIn.com/in/agilebillallen Related Website: ProductDiscoveryCanvas.com Slides: SpeakerDeck.com/billagileInnovator/railsconf2016 Bill Allen