"product-market-risks: the pm challenge and opportunity to shine" - noam bernstein...
TRANSCRIPT
Industrial Design Bezalel 2002
8 years active designer & design manager
>25 products launched in global markets
> millions units sold of products I designed
failed miserably with a few, too
MBA Strategy major IDC 2010
6 years guiding MBA real strategic consulting projects
Nekuda Design Management physical & digital IOT Innovation
Global Consumer Electronics Samsung, Haier, PepsiCo
NOAM BERNSTEIN
Impossible to mitigate in houseIrrational by human natureHard to quantify Unpredictable path to solution
Susceptible to opinions and intuitions
Challenges of Market Risk
Market risk is comprised of 2 types:
Category riskimpacts all
players
Private riskProduct-Market
my fit
Your business inherits inherent risks of your category
• User expectations• Product economics & lifecycle• Retail & channel partners power• Regulation• Supply chain & Production • Technology dependencies & hurdles• Investment & ROI cycles
https://9to5mac.com/2016/04/11/apple-watch-sales-
2015-2016/
http://appleinsider.com/articles/16/06/16/jp-morgan-
downgrades-apple-stock-expectations-on-negative-
macro-trends-apple-watch-forecast
Nobody is immune to market risk
Empathy – listening to needs and pains
http://www.bresslergroup.com/wp-content/uploads/2015/11/header_empathy_1.png
“...people don’t know what they want until
you show them” Steve Jobs
(so don’t ask them what
they want!)
Don’t ask me
About my painsWhat frustrates me?
Where do I get stuck?
Ask me
About my lifeHow my day/work feels?
What is meaningful for me? for Features(even if I think I know!)
Meaning
Functionality
Challenge:Leap across
the chasm
Credit: Kozatch Pyramid
Features: Functionality
Benefits: What I get from it
Meanings: How my life might change
Pleasure
Convenience
Usability
Reliability
Aim to create value beyond function
How many interviews?
2-3to get the interview protocol
right
6-20depending
on segmentsresources
& risk
Interview plan: avoiding your own bias
#1: Who are they? (Demographics)#2: Their jobs, needs, pains? (psychographics)#3: Concept boards / co-creation
Planning Research that will drive confident choice and Action
Executing: Questions Answers Choices Action
Planning: Questions Answers Choices Action
Connecting subjective insights to statistical trends builds confidence
Quant70-200 depending on segmentsValidate profilesLink profiles to segments
Macro ReportsFind fitting segmentsSize your market
Qual6-20 interviewsDiscover needs & painsBuild Profiles
Ensure your data links to Macro reports
Qual:Your specificNeed-related
(psychographic)profiles.
Macro reports:Typically generic
demographic data (age, income, segment size)
Quant:Specific profile
questions
ANDdemographic
validation
Example
My profiles:• Willingness to wear
medical watch• Wrist size (Gender)
Macro reports:
Age Gender Medical condition Insurance
Quant:Will you wear watch?
Wrist size?
ANDGender + Age
+ Medical condition
Structure of a short quant questionnaire
#1 Demographics (easy to answer)#2 psychographics (my profiles)
-----Show Concept boards----
#3 Collect immediate (gut) reactions#4 More thoughtful reactions
Validate early to reduce the costs of “no-go” or “change” decisions (INSEAD)
Late Decisions have Substantial negativefinancial impact
Early decisions have minimal negative financial impact
$$$$
50%
100%
75%
25%
0%
1 2 3 4 5 6 7 8 9 10 11 12
Cost
months
Start by feeding & validating the MRD
ConceptBoardsValidateConceptfor PRD
P.O.CAlphaValidate Key functions & benefits
Demo
Validate benefits for SW/HWSpec
BetaTestValidatedesign
MVPLaunchValidateMarket
UserResearchValidate needs for MRD
SRRSDR
PDRCDR
FDR
Existing R&D deliverablesArrive very late
new deliverables simulate early
NOAM BERNSTEIN
http://www.nekudadm.com/www.linkedin.com/in/noam-bernstein-651ab01