Lean Product Development Second Meeting

Transcript

1. L E A N P R O D U C T D E V E L O P M E N T F R O M A N I D E A T O A R E A L W O R L D P R O D U C T
2. S E C O N D O N L I N E M E E T I N G I T E R A T E A N D E VA L U A T E
3. A G E N D A F O R T O N I G H T • Current Status of your projects • Customer Development • Customer Discovery
4. T I M I N G F O R T O N I G H T • 20-30min: Present your BMCs • 15min: Theoretical input • 30min: Work in Breakout rooms • 10min: Theoretical input • 30min: Work in Breakout rooms • 10min: Theoretical input
5. W R A P U P We have 3 initial problems/ideas that you are working on Value & Customers as the 2 most important things to care about The Business Model Canvas Everything we have right now are hypotheses
6. P R E S E N TAT I O N T I M E P I T C H A N D B U S I N E S S M O D E L C A N VA S
7. C U S T O M E R D E V E L O P M E N T W H A T Y O U S H O U L D D O U N T I L T H E N
8. C U S T O M E R D E V L E O P M E N T Scientific methodology to improve product success Mid 1990s by Steve Blank Formal process of testing hypotheses Balanced relationship between product development and understanding the customer
9. C U S T O M E R D E V L E O P M E N T 4 step process Mostly done outside the building Hypothesis + experiment + data => Insights Customer Development Customer Validation Customer Creation Company Building Pivot Search Execution
10. C U S T O M E R D I S C O V E RY „In a startup, the founders define the
 product vision and then use customer discovery to find customers and a market for that vision“ - Steve Blank -
11. C U S T O M E R D I S C O V E RY „In a startup, the founders define the
 product vision and then use customer discovery to find customers and a market for that vision“ - Steve Blank - Translate the founders vision into hypothesis Two „outside the building phases“ 1) Customers perception of the problem and his need to solve it 2) First customer contact with a real product that solves his problem
12. C U S T O M E R D I S C O V E RY A „low-fidelity“ prototype can be used to test the business model hypotheses against customers A pivot is not a failure It is part of the process There are edge cases in totally new markets
13. C U S T O M E R VA L I D AT I O N Focus on repeatability and scalability Enough customers to build a profitable company High-Fidelity prototype of the product Focus on really selling the product
14. P I V O T S A N D I T E R AT I O N S After running experiments you adjust your hypothesis Pivot: Substantial changes to one or more of the BMC sectors Iteration: Small changes
15. E X E C U T I O N Not part of this course
16. C U S T O M E R D E V E L O P M E N T M A N I F E S T O 1 4 R U L E S
17. C U S T O M E R D E V E L O P M E N T M A N I F E S T O 1) There are no facts inside your building 2) Pair Customer Development with Agile Development 3) Failure is an integral part of the search 4) Make continuous iterations and pivots 5) No business plan survives first contact with customers. So use a business model 6) Design experiments and test to validate your hypotheses 7) Agree in market type. It changes everything
18. C U S T O M E R D E V E L O P M E N T M A N I F E S T O 8) Startup metrics differ from those in existing companies 9) Fast decision-making, cycle time, speed and tempo 10) Its all abou passion 11) Startup job titles are very different from a large company 12) Preserve all cash until needed. Then spend 13) Communicate and share learning 14) Customer Development success begins with buy-in
19. C U S T O M E R D I S C O V E RY N O W I N D E TA I L
20. C U S T O M E R D I S C O V E RY I N D E TA I L Consists of four phases: 1. State your business model hypotheses 2. Test the problem: Do people care? 3. Test the product solution 4. Verify the business model and pivot or proceed
21. C U S T O M E R D I S C O V E RY I N D E TA I L Consists of four phases: 1. State your business model hypotheses 2. Test the problem: Do people care? 3. Test the product solution 4. Verify the business model and pivot or proceed
22. P H A S E 1 State your business model hypotheses From the head of the founder to paper We are in the middle of it Goal: 1 page with hypotheses and experiments
23. P H A S E 1 Market size hypothesis Three ingredients: large number of potential users clear future-user growth in a market with predictable growth opportunity to attract active users
24. TA M , S A M A N D TA R G E T M A R K E T Total 
 Addressable Market Served Available Market Target Market TAM = how big is the universe SAM = How many can I reach with my sales channels Target Market = Who will be the most likely buyers
25. C U S T O M E R S N O W I N D E TA I L
26. T H E F I R S T C U S T O M E R S People who spread the word about a product are often called evangelists If the are willing to do so for a unfinished & untested product, the are real early adopters => „Earlyvangelists“
27. T H E F I R S T C U S T O M E R S Has a problem Is aware of having a problem Been actively looking for a solution Assembled a solution
 out of parts Has
 acquired
 a budget People Earlyvangelists
28. P H A S E 1 Customer hypotheses: Most of the time you have multiple potential customer segements What segment to start with? A really quick tool: The SPA treatment
29. S PA T R E AT M E N T Takes Market Size, Pay for value and Accessibility to create a order into your customer segments Score every segment between 1 and 3 S E G M E N T 1 S E G M E N T 2 S E G M E N T 3 M A R K E T S I Z E PAY F O R VA L U E A C C E S S I B I LT Y S U M I T U P
30. Q U E S T I O N S A N Y C O M M E N T S , F E E D B A C K O R T H I N G S I M I S S E D
31. B R E A K O U T T I M E I D E A , VA L U E , G R O W T H A N D C U S T O M E R
32. B R E A K O U T T I M E Work on your market hypothesis Give your customers the SPA treatment Present your results in 1min Time: 30min
33. C U S T O M E R D I S C O V E RY VA L U E P R O P O S I T I O N
34. P H A S E 1 Value proposition hypotheses In web/mobile context: Low Fidelity MVP Use User Stories instead of feature lists Goal: Test your core value hypotheses
35. B U I L D I N G A M V P Minimum Viable Product The smallest possible feature set Look for people (earlyvangelists) to use your MVP Even the earliest MVP should include some way for interested users to self-identify/register The goal is to get data and learn
36. B U I L D I N G A M V P Two types of MVPs: Low fidelity: Used in phase 1 to identify a problem customers care about High fidelity: Used in phase 3 to test if you are on the right way of solving the problem
37. U S E R S T O R I E S System requirements Described from a users point of view Example: As a customer I want to register for a Newsletter, so that I get notified if new courses are available
38. U S E R S T O R I E S Estimation: Every User Story that should be worked on needs a guess about the complexity In our process we use: 1,2,3,5,8 But every scale a team agrees on is fine, you just need a common understanding of the meaning
39. S T O RY B O A R D Used in agile Development Prioritized set of user stories Like Post-Its on a wall I use Trello or pivotal tracker in real life
40. S T O RY B O A R D Used in agile Development Prioritized set of user stories Like Post-Its on a wall I use Trello or pivotal tracker in real life
41. P H A S E 1 All other six BMC areas: There are different tools and technics described e.g. in Steve Blanks: „The startup owners manual“
42. Q U E S T I O N S A N Y C O M M E N T S , F E E D B A C K O R T H I N G S I M I S S E D
43. B R E A K O U T T I M E I D E A , VA L U E , G R O W T H A N D C U S T O M E R
44. B R E A K O U T T I M E Try to define User Stories for the value propositions of your winning customer segment Use www.trello.com to collect and prioritize these stories Try to estimate the effort for the stories under the line Time: 30min
45. C U S T O M E R D I S C O V E RY P H A S E 2 : D O P E O P L E C A R E ?
46. P H A S E 2 Five key steps: Design experiments for customer tests Prepare for customer contacts and engagement Testing customers understanding of the problem and assessing its importance to customers Gaining understanding of customers capturing competitive and market knowledge
47. T E S T S A N D PA S S / FA I L E X P E R I M E N T S Rule 6 from the manifesto: Design Experiments Rule 9: Do it with speed, tempo and fast cycle times ! Hypothesis Test Design
 Experiment Insight
48. T E S T S A N D PA S S / FA I L E X P E R I M E N T S What do I want to learn? What are metrics to evaluate pass/fail Look at your storyboard and add/refine your user stories
49. T E S T S A N D PA S S / FA I L E X P E R I M E N T S Most of the time you can mockup a page 
 or create a demo Non-Coders: Protoype in powerpoint Google Sites, Wordpress, … For surveys and signup forms: Google Forms or Wufoo
50. T E S T S A N D PA S S / FA I L E X P E R I M E N T S If you have little coding knowledge: One-Page Services like Strikingly or LaunchRocket If you have a coder or two: Build your own landing page and add some metric tools like Google Analytics and Optimizly or so Most of the time its a good idea to build multiple mvps
51. N E X T M E E T I N G W H A T Y O U S H O U L D D O U N T I L T H E N
52. N E X T M E E T I N G Get out of the building Validate your problem with potential customers Document customer contact in the wiki Adjust your hypotheses in the BMC Start building a MVP
53. Q U E S T I O N S A N Y C O M M E N T S , F E E D B A C K O R T H I N G S I M I S S E D