My#Background#Educa/on#! Engineering#background#! Stanford#MBA#! UX#design,#web#and#mobile#coding##Experience#! Led#Quicken#Product#Management#at#Intuit#! Led#Product#Management#at#Friendster#! CEO#&#Cofounder,#TechCrunch#award#winner#YourVersion#! Product#consultant:#Facebook,#Box,#MicrosoM#! Organizer:#Lean#Product#&#Lean#UX#Meetup#Silicon#Valley##I#will#post#my#slides#at#hOp://slideshare.net/dan_o#
Copyright#©#2015#@danolsen#
What#is#“Lean#Startup”#all#about?#
! Ar/culate#hypotheses#! Iden/fy#fastest#way#to#test#! Keep#scope#small:#minimum#viable#product#(MVP)#
! Test#with#customers#! Learn#and#iterate#! Achieve#productamarket#fit#
Copyright#©#2015#@danolsen#
Sounds'easy,'right?'
That’s#Why#I#Wrote#a#HowaTo#Guide#For#Achieving#ProductaMarket#Fit##
hOp:///ny.cc/LPP
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
Transporta/on#within#100#miles#of#my#home#
Soccer#Mom###
Speed#Demon#
Carry#kids#&#gear#Safety#Fuel#economy#
Go#fast#Looks#cool#Makes#me#look#cool#
#####
Target#Customer#Has#Dis/nct#Needs#Highalevel#need##Target#Customer##
#Detailed#needs#
#Ideal#Product#
Soccer#Mom# Speed#Demon#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
##
! Russians:#pencil#
! NASA:#space#pen#($1#M#R&D#cost)#
##
##
Example#! Ability#to#write#in#space#(zero#gravity)#
Problem#Space#vs.#Solu/on#Space#Problem#Space#! A#customer#problem,#need#or#benefit#that#the#product#should#address#
! A#product#requirement#
Solu/on#Space#! A#specific#implementa/on#to#address#the#need#or#product#requirement#
Copyright#©#2015#@danolsen#
Problem#vs.#Solu/on#Space:#Product#Level#
Problem#Space#(user#benefits)#
Solu/on#Space#(product)#
TurboTax
TaxCut
Pen and paper
Prepare my taxes
File my taxes
Check my taxes
Maximize deductions
Reduce audit risk
Copyright#©#2015#@danolsen#
Problem#Space##
Problem#vs.#Solu/on#Space:#Feature#Level#
Copyright#©#2015#@danolsen#
Save time filing taxes
Save time preparing taxes
Maximize my tax deductions
Check my return
Reduce my audit risk
Help me prepare taxes
Empowerment/ Confidence
Save Time
Save Money
Tax Interview Wizard
Audit Risk Analyzer
Tax Return Error Checker
Tax Data Downloader
Electronic Tax Return Filing
Tax Deduction Finder
Solu/on#Space#
Group#Exercise:#Customer#Needs#
! Think#about#Airbnb#! Focus#on#the#problem#space#! What#customer#needs#does#Airbnb#address?#
Copyright#©#2015#@danolsen#
Priori/zing#Needs:#Importance#vs.#Sa/sfac/on#Im
portance#of#U
ser#N
eed#
User#Sa/sfac/on#with#Current#Alterna/ves#
Compe//veMarket#Opportunity#
Low# High#
Low#
High#
Not#Worth#Going#AMer#
Copyright#©#2015#@danolsen#
Crea/ng#Customer#Value#
Copyright#©#2015#@danolsen#
Impo
rtance#of#U
ser#N
eed#
User#Sa/sfac/on#with#the#Product#Low# High#
Low#
High#
Area#=#Customer#Value#Created#
Area#=#Opportunity#to#Create#Customer#Value#
Users#Rated#13#Key#Features#in#a#Survey#
Recommended#reading:#�What#Customers#Want�#by#Anthony#Ulwick#
Great#
Copyright#©#2015#@danolsen#
Bad#
Kano#Model:#User#Needs#&#Sa/sfac/on#User#Sa/sfac/on#
User#Dissa/sfac/on#
Performance#(more#is#beOer)#
Delighter#(wow)#
Need#not#met#
Need#fully#met#
Must#Have#
Needs#&#features#migrate#over#/me#
Copyright#©#2015#@danolsen#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#! How#are#you#beOer#than#compe/tors?##Must#Have#Benefit#1#
Performance#Benefit#1#
Performance#Benefit#2#
Performance#Benefit#3#
Delighter#Benefit#1#
Delighter#Benefit#2#
Copyright#©#2015#@danolsen#
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#! How#are#you#beOer#than#compe/tors?## Compe5tor'A' Compe5tor'B' You'Must#Have#Benefit#1#
Performance#Benefit#1#
Performance#Benefit#2#
Performance#Benefit#3#
Delighter#Benefit#1#
Delighter#Benefit#2#
Copyright#©#2015#@danolsen#
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#! How#are#you#beOer#than#compe/tors?## Compe5tor'A' Compe5tor'B' You'Must#Have#Benefit#1# Y# Y#
Performance#Benefit#1# High# Low#
Performance#Benefit#2# Low# High#
Performance#Benefit#3# Med# Med#
Delighter#Benefit#1# Y# a#
Delighter#Benefit#2# a# a#
Copyright#©#2015#@danolsen#
What#is#Your#Value#Proposi/on?#
! Which#user#benefits#are#you#providing?#! How#are#you#beOer#than#compe/tors?## Compe5tor'A' Compe5tor'B' You'Must#Have#Benefit#1# Y# Y# Y#
Performance#Benefit#1# High# Low# Med#
Performance#Benefit#2# Low# High# Low#
Performance#Benefit#3# Med# Med# High#
Delighter#Benefit#1# Y# a# a#
Delighter#Benefit#2# a# a# Y#
Copyright#©#2015#@danolsen#
Group#Exercise:#Value#Proposi/on#
! Recall#our#discussion#on#Airbnb#user#needs#! Who#are#Airbnb’s#compe/tors?#! Think#about#how#Airbnb#meets#those#needs#beOer#than#alterna/ve#solu/ons#
! What#are#Airbnb’s#differen/ators?#Copyright#©#2015#@danolsen#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
What#is#an#MVP?#
Courtesy#of#Jussi#Pasanen#See#Aaron#Walter’s#book#Designing'for'Emo-on' Copyright#©#2015#@danolsen#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
The#UX#Design#Iceberg#
Copyright#©#2015#@danolsen#
What'most'people'see'and'react'to'
What'good'product'teams'think'about'
Geqng#Customer#Feedback#
Problem#Space#vs.#Solu/on#Space#! Customers#CAN’T#ar/culate#problem#space#! Customers#CAN#react#to#solu/on#space#! That’s#why#you#need#something#tangible#to#show#to#customers#to#get#good#feedback#
Copyright#©#2015#@danolsen#
Product#Design#Ar/facts#
Copyright#©#2015#@danolsen#
Hand#sketch#
Interac/vity#
Fidelity#
Interac/ve#Prototype#
Sta/c#Wireframe*#
Clickable#Wireframe*#
Mockup##
Clickable#Mockup**#
*#Balsamiq:#balsamiq.com#**#InVision:#invisionapp.com#
Live#Product#
Itera/ve#Design#&#Test#Workflow#
Copyright#©#2015#@danolsen#
Hand#sketches#
Interac/vity#
Fidelity#
Clickable#Wireframes#
Clickable#Mockups#
Live#Product#
Test# Test#
Test#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#
Copyright#©#2015#@danolsen#
“Ramen”#User#Tes/ng#Session#
10#a#15#min:#Warm#Up#and#Discovery#! Understand#user#needs,#priori/es#! Learn#about#solu/ons#they#use,#likes#and#dislikes#
30#a#50#min:#User#Feedback#on#Prototype#! Show#user#mockup/product#! Be#as#nonadirected#as#possible:#like#you’re#not#there#! Ask#ques/ons#to#gain#understanding#
5#a#10#min:#Wrap#up#! Answer#any#ques/ons#or#issues#that#came#up#! Point#out/explain#features#you#want#to#highlight#! Ask#if#they#would#use#the#product#
Copyright#©#2015#@danolsen#
Dos#&#Don’ts#of#User#Tes/ng#Sessions#
Do#! Explain#to#the#user#
! Feedback#will#help#improve#the#product#! Not#to#worry#about#hur/ng#your#feelings#! �Think#Aloud#Protocol�#
! Try#to#be#a#fly#on#the#wall#! Take#notes#and#review#them#aMerwards#for#takeaaways#
Don’t#! Ask#leading#or#closeaended#ques/ons#! �Help��user#or#explain#the#UI#(e.g.,#�click#over#here�)#! Get#defensive#or#blame#the#user#
Copyright#©#2015#@danolsen#
What#Are#You#Tes/ng#and#Learning?#
Problem#Space#All#your#hypotheses#
Solu/on#Space#User#reac/ons#
Feature#Set#
UX#Design# Messaging##
Copyright#©#2015#@danolsen#
Itera/ng#Between#User#Tes/ng#Waves#
#Customer#Feedback#
Mockups#/#Code#
Copyright#©#2015#@danolsen#
Problem#Space#All#your#hypotheses#
Solu/on#Space#User#reac/ons#
Persevere#or#Pivot?#
Increasing'Product@Market'Fit'
Pivot'
Product@Market'Fit'='Geqng#enough#data#to#validate#you’re#climbing#up#the#right#mountain#
Copyright#©#2015#@danolsen#
Marke/ngReport.com#Case#Study#
! My#client#(CEO)#had#a#new#product#idea#! Team:#me,#CEO,#VP#marke/ng,#UI#designer#! Goals#
! See#if#business#opportunity#exists#! Do#so#quickly#and#inexpensively#(no#coding)#
! �Marke/ng#report��would#let#consumers#control#the#direct#mail#that#they#receive#
! Analogous#to#credit#report#
Copyright#©#2015#@danolsen#
Mapping#Out#Customer#Benefits#
Reduce Junk Mail
Find out what �they� know about you
Money Saving Offers
Compare Yourself to Others
Social Networking
Marketing Report
Marketing Score
Marketing Profile
Save Trees
�Marke/ng#Shield�#Concept#
�Marke/ng#Saver�#Concept#
Copyright#©#2015#@danolsen#
Recrui/ng#Target#Customers#
! Used#customer#research#firm#(panel)#! Wrote#screener#to#iden/fy#target#customers#
! Work#fulla/me#! Fit#for#Saver:#use#coupons,#Costco#membership#! Fit#for#Shield:#use#paper#shredder,#block#caller#ID#
! Offered#$75#compensa/on#! Scheduled#3#groups#of#2#or#3#people#for#90#min#! Moderated#each#group#through#the#mockups#
Copyright#©#2015#@danolsen#
Learning#from#First#Wave#of#User#Tests#
Reduce Junk Mail
Find out what �they� know about you
Money Saving Offers
Compare Yourself to Others
Social Networking
Marketing Report
Marketing Score
Marketing Profile
Save Trees
Legend
Strong appeal
Some appeal
Low appeal
�Shield� Concept �Saver� Concept
Copyright#©#2015#@danolsen#
Summary#of##Case#Study#
! 4#weeks#to#validated#product#concept#! 1#round#of#itera/on#! Zero#coding#! Reasonable#cost#! Customers#willing#to#pay#$10/month#! Trimmed#away#nonavaluable#pieces#! You#can#achieve#similar#results#
Copyright#©#2015#@danolsen#
The#Lean#Product#Process#
1. Determine#your#target#customer#2. Iden/fy#underserved#customer#needs#3. Define#your#value#proposi/on#4. Specify#your#MVP#feature#set#5. Create#your#MVP#prototype#6. Test#your#MVP#with#customers#Iterate:#" HypothesizeaDesignaTestaLearn#loop#" Improve#productamarket#fit#
Copyright#©#2015#@danolsen#
Ken&Norton&Google&Ventures&“10x%not%10%:%Moonshot%Product%Management”%Dec%10th%
Josh&Elman&Greylock&Partners&“Let’s%talk%about%Product%Management”%Jan%26th%
Questions?
@danolsen#olsensolu/ons.com#slideshare.net/dan_o#leanproductplaybook.com##Book:#hOp:///ny.cc/LPP##