how to make products that don't suck - pca8

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How to Create Products That Don’t Suck A Discovery Process for Creating Breakthrough Products (For Start-ups through Big Enterprises) Tom Evans Lûcrum Marketing @compellingmktr

Post on 13-Sep-2014

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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. Established companies sit around conference rooms staring at their navels, dreaming of the next great product and end up wondering why their products also 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 (in startups as well as big enterprises).

TRANSCRIPT

Page 1: How to make products that don't suck -  PCA8

How to Create Products

That Don’t Suck A Discovery Process for Creating Breakthrough Products

(For Start-ups through Big Enterprises)

Tom Evans

Lûcrum Marketing

@compellingmktr

Page 2: How to make products that don't suck -  PCA8
Page 3: How to make products that don't suck -  PCA8

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

Page 4: How to make products that don't suck -  PCA8

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

Page 5: How to make products that don't suck -  PCA8

Why Do So Many Products Suck?

1. Idea to Product

Page 6: How to make products that don't suck -  PCA8

Why Do So Many Products Suck?

1. Idea to Product

2. One point of market evidence to idea to product

Page 7: How to make products that don't suck -  PCA8

Why Do So Many Products Suck?

1. Idea to Product

2. One point of market evidence to idea to product

3. Market evidence & validation to product

Page 8: How to make products that don't suck -  PCA8

Why Do So Many Products Suck?

1. Idea to Product

2. One point of market evidence to idea to product

3. Market evidence & validation to product

4. Market evidence & validation, product validation, no

clear market strategy

Page 9: How to make products that don't suck -  PCA8

Why Do So Many Products Suck?

1. Idea to Product

2. One point of market evidence to idea to product

3. Market evidence & validation to product

4. Market evidence & validation, product validation, no clear market

strategy

5. Market evidence & validation, product validation, no

profitable business model

Page 10: How to make products that don't suck -  PCA8

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

– Differentiated

– Profitable business model

– Time to market

• Compelling Market Strategy

– Motivates target market

– To solve problem with your solution

Discovery

+

Validation

Page 11: How to make products that don't suck -  PCA8

Model for Discovery

Four Key Steps

Validate

Hypothesis Plan Strategy Build Solution To Market

Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation

Valid Hypothesis Valid Market

Opportunity

Ready to

Launch Market Growth

Product-to-Market™ Model

Product-to-Market is a trademark of Lûcrum Marketing

Page 12: How to make products that don't suck -  PCA8

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?

Page 13: How to make products that don't suck -  PCA8

Model for Discovery

Four Key Steps

Validate

Hypothesis Plan Strategy Build Solution To Market

Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation

Valid Hypothesis Valid Market

Opportunity

Ready to

Launch Market Growth

Product-to-Market™ Model

Product-to-Market is a trademark of Lûcrum Marketing

Page 14: How to make products that don't suck -  PCA8

Market Evidence (of Market Problem)

• Sources of Market Evidence

– Customers

– Non-customers

– Market trends/shifts

– Unexpected occurences

– New technologies

– Competitors

– Personal experience

– Etc.

Page 15: How to make products that don't suck -  PCA8

Market Evidence (of Market Problem)

• Sources of Market Evidence

– Customers

– Non-customers

– Market trends/shifts

– Unexpected occurences

– New technologies

– Competitors

– Personal experience

– Etc.

Page 16: How to make products that don't suck -  PCA8

Start With Hypothesis

– Market Segment “X”

– Has problem “Y”

– That happens when “Z” occurs

– We can solve it by creating/delivering solution “A”

E.g.: Small manufacturing operations that use hot

water & steam are unable to manage manufacturing

costs due to the volatility of fuel prices.

We can solve this by providing a high temperature

solar heating system under a lease agreement.

Page 17: How to make products that don't suck -  PCA8

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

Page 18: How to make products that don't suck -  PCA8

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 the impact?

• How important is this? What is their current satisfaction?

• Who are they (Personas)?

Copyright 2011 - LÛCRUM MARKETING

Page 19: How to make products that don't suck -  PCA8

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

Page 20: How to make products that don't suck -  PCA8

Plan Strategy

• Define & discover greater depth

• Validate the market opportunity

– Business Case - Can it be profitable?

• Define detail on product & business model & market

strategy

– Market requirements, product requirements, user

stories, etc.

– Pricing model, delivery mechanism, costs to deliver,

etc.

• Iterate until validated or rejected

Page 21: How to make products that don't suck -  PCA8

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

• Continue to discover, validate, refine!

Page 22: How to make products that don't suck -  PCA8

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!

Page 23: How to make products that don't suck -  PCA8

Model for Discovery

Four Key Steps

Validate

Hypothesis Plan Strategy Build Solution To Market

Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation

Valid Hypothesis Valid Market

Opportunity

Ready to

Launch Market Growth

Product-to-Market™ Model

Product-to-Market is a trademark of Lûcrum Marketing

Page 24: How to make products that don't suck -  PCA8

Key Principles

• Hypothesis – Discovery – Validate

• Continuous engagement with target market

– Validate important decisions

• Planning is good, but learning is better

• Fail fast – discover fast!

Page 25: How to make products that don't suck -  PCA8

Additional References

Page 26: How to make products that don't suck -  PCA8

Copyright 2012 - LÛCRUM MARKETING

Thank You!

Tom Evans

Lûcrum Marketing

[email protected]

+1.512.961.5267

@compellingmktr

Page 27: How to make products that don't suck -  PCA8