innovation - bootstrapping new product development (without betting the farm)
TRANSCRIPT
InnovationBootstrapping New Product Development*
*without betting the farm
There’s an app for that…
Technologyisn’t
Productisn’t
Proposition
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
PRODUCT |> CUSTOMER -> VALUE
NOT ‘WATERFALL’
Unknowns -> Knowns | Unknowables
Start withintrospectionnot a product
idea
connections budget
knowledge experience
Focus on customer value
This product will do…for…
which transforms their life because…
3minutes | days | months
before & after
Old IdeaEstablished Market
Old IdeaNew Market
New IdeaEstablished Market
New IdeaNew Market
The Core
End of the first morning…Should we stop?
Brainstorm all the peopleEVERYONE
Craft maker on e.g. Etsy
Furniture designer
Lamps & Lighting designer
Jewellery designer/maker
Toy manufacturer
TV & Film Brand Manager
Jewellery brand manager (e.g. Boodles)
Fashion brand manager(global brand)
Fashion designer/retailer(SME)
Wedding supplier
Eyewear designer
Home products manufacturer
(e.g. furnishings)
Pharmaceutical manufacturer
Video games publisher
Fancy dress retailer
Watch manufacturer
Cosmetics manufacturer
Ceramics manufacturer (global brand)
Ceramics designer/maker
Fine Art Copyright Holder
Electronic control systems
(e.g. heating/lighting)
Should we stop?
Pick five(or ten)
Don’t agonizeJust pick five
(or ten)
Persona Young mother, working part timeFictional name Naimh McCormackJob title Family lawyer
Demographics28 years oldLiving with partnerRentingOne child, 3yo
Professional
Works in the City 2 days/weekWorks from home 1 day/weekMainly works on divorce casesReviewing documentationNegotiation and arbitration
TechnicalFamiliar with Skype/Lync, remote working toolsUses Facebook socially and Twitter professionally / socially. Underused LinkedIn accountProficient with Office tools, including Google Docs & Office365, both of which are used by clients
GoalsManage, organize and search documentation from case loadMake sudden transitions seamlessly from home to office, including working on the moveEnsure security of documentation in all locationsEnsure personal information about clients is protected
Primary use case She searches, reads and edits her documents on desktop, laptop and tablet, using her standard tools, wherever she happens to be, and shares them with colleagues over Skype/Lync.
Primary benefit Assurance that information is secure at rest and held only within the EU jurisdiction, without any change to her standard document browsing and editing workflow
Score them-2 -1 +1
Should we stop?
Share the love**value
10x rules**of thumb
For every £1
your customer investsgive them
£10 of value
For every £1
it costs you to acquire & deliver
get£10
of value
Persona Young mother, working part time
Fictional name Naimh McCormackTotal discretionary budget £500/month
Channels UK Legal Partner Mailing ListLaw forums
10x value Ability to collaborate securely with colleagues from work/home with zero friction – which significantly reduces her childcare/office tension
Compelling reason to buy She’s just experienced a late night dash to the office with the kid in pyjamas, to send a confidential document to a colleague for a morning meeting. She doesn’t want to do that again.
Whole solution? This solution as proposed integrates with the office suite and Office365 platform, so they would need to be sold on this too.
Competition There are other collaboration suites available of which this offering is a part of the proposition. They do not have good uptake in the market.
Adjacent segments If we get traction in this market, we could look sideways to local government, social services, barristers, law enforcement, who all collaborate with this user. (See personae X, Y, Z…)
Alignment Our corporate knowledge and connections are in the legal profession, and we fully understand the needs and motivations of a junior solicitor.
Score them-2 -1 +1
Pick oneDon’t agonizeJust pick one
Beachhead
Can we easily pivot?
Can we easily grow?
Is it cohesive?Can we access it?
Can we dominate it?
Should we stop?Or pick another one?
Is it big enough?Is it small enough?
Total Accessible Market
Not the bullsh*t number
$13bn global opportunity!!!
Not predicated on your ability to execute
“We think it is £2m but we’ll only get 5%”
Top DownMiddle Out
Bottom Up
Average Spend Per Customer = ~$500/month
Number of customers = ~10,000
Total Accessible Market =~$5,000,000/month
Total annual spend in segment =$50m
Proportion of spend on product area =~1.5%
Total Accessible Market =~$7,500,000
Should we stop?Or pick another one?
Assumptions
Hypothesis:
Change basede.g.
If we do x, then y will happen
Fact basede.g.
Persona A spends £#.## on B
Define your experimental method(you want to be able to repeat it)
Metrics:Measure {a,b,c} in this way
Success criteria:{a,b,c}
will be | change in the following way
Budget:How much are we prepared
to spend to find out?
Can we do it?Technical
Does the customer care?Value
Will the customer pay?Revenue & Pricing
Can we afford to support it?
Cost of delivery
Can we afford to sell it?Cost of customer
acquisition
Can we do it?Technical
Does the customer care?Value
Will the customer pay?Revenue & Pricing
Can we afford to support it?
Cost of delivery
Can we afford to sell it?Cost of customer
acquisition
Process & Discipline