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A Playbook for Achieving Product-Market Fit

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A Playbook For Achieving ProductMarket Fit DAN OLSEN NOV 12, 2015


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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#


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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# Sounds'easy,'right?' Copyright#©#2015#@danolsen#


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That’s#Why#I#Wrote#a#HowaTo#Guide# For#Achieving#ProductaMarket#Fit# # hOp:///ny.cc/LPP


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What#is # ProductaMarket # Fit? #


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The#ProductaMarket#Fit#Pyramid #


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The#ProductaMarket#Fit#Pyramid #


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The#ProductaMarket#Fit#Pyramid #


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The#ProductaMarket#Fit#Pyramid #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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The#Lean#Product#Process #


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Copyright#©#2015#@danolsen#


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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#


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Target#Customer#Has#Dis/nct#Needs# Highalevel#need# # Target#Customer# # Transporta/on#within#100#miles#of#my#home# Soccer#Mom# # # Speed#Demon# # Detailed#needs# # Ideal#Product# Soccer#Mom# Carry#kids#&#gear# Safety# Fuel#economy# # # # # # Speed#Demon# Go#fast# Looks#cool# Makes#me#look#cool#


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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#


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# 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# Example# !  Ability#to#write#in#space# (zero#gravity)# #!  NASA:#space#pen# #($1#M#R&D#cost)# !  Russians:#pencil# Copyright#©#2015#@danolsen#


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Problem#vs.#Solu/on#Space:#Product#Level# Problem#Space# (user#benefits)# Solu/on#Space# (product)# Prepare my taxes Pen and paper Check my taxes File my taxes TurboTax Maximize deductions Reduce audit risk TaxCut Copyright#©#2015#@danolsen#


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Problem#vs.#Solu/on#Space:#Feature#Level# Problem#Space# # Help me Solu/on#Space# prepare taxes Save Money Audit Risk Analyzer Tax Return Error Checker Save time preparing taxes Save Time Reduce my audit risk Check my return Empowerment/ Confidence Tax Interview Wizard Tax Data Downloader Save time filing taxes Electronic Tax Return Filing Maximize my tax deductions Tax Deduction Finder Copyright#©#2015#@danolsen#


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Group#Exercise:#Customer#Needs # !  Think#about#Airbnb# !  Focus#on#the#problem#space# !  What#customer#needs#does#Airbnb#address?# Copyright#©#2015#@danolsen#


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Importance#of#User#Need# Priori/zing#Needs:#Importance#vs.#Sa/sfac/on# High# Opportunity# Compe//ve Market# Not#Worth#Going#AMer# Low# Low# High# User#Sa/sfac/on#with#Current#Alterna/ves# Copyright#©#2015#@danolsen#


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Importance#of#User#Need# Crea/ng#Customer#Value# High# Low# Area#=# Customer# Value# Created# Low# Area#=# Opportunity# to#Create# Customer# Value# High# User#Sa/sfac/on#with#the#Product# Copyright#©#2015#@danolsen#


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Users#Rated#13#Key#Features#in#a#Survey# Great# Bad# Recommended#reading:# What#Customers#Want #by#Anthony#Ulwick# Copyright#©#2015#@danolsen#


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Kano#Model:#User#Needs#&#Sa/sfac/on# User#Sa/sfac/on# Delighter#(wow)# Performance# (more#is#beOer)# Need# not#met# Need# fully#met# Must#Have# Needs#&#features# migrate#over#/me# User#Dissa/sfac/on# Copyright#©#2015#@danolsen#


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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#


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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#


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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#


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What#is#Your#Value#Proposi/on?# !  Which#user#benefits#are#you#providing?# !  How#are#you#beOer#than#compe/tors?# # Compe5tor'A' Compe5tor'B' 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# You' a# Copyright#©#2015#@danolsen#


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What#is#Your#Value#Proposi/on?# !  Which#user#benefits#are#you#providing?# !  How#are#you#beOer#than#compe/tors?# # Compe5tor'A' Compe5tor'B' Must#Have#Benefit#1# You' 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#


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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#


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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#


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What#is#an#MVP? # Courtesy#of#Jussi#Pasanen# See#Aaron#Walter’s#book#Designing'for'Emo-on' Copyright#©#2015#@danolsen#


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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#


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The#UX#Design#Iceberg # What'most' people'see' and'react'to' What'good' product'teams' think'about' Copyright#©#2015#@danolsen#


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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#


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Product#Design#Ar/facts # Interac/vity# Live# Product# Interac/ve# Prototype# Clickable# Clickable# Wireframe*# Mockup**# Hand# Sta/c# sketch# Wireframe*# Mockup# # Fidelity# *#Balsamiq:#balsamiq.com# **#InVision:#invisionapp.com# Copyright#©#2015#@danolsen#


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Itera/ve#Design#&#Test#Workflow # Interac/vity# Live# Product# Test# Clickable# Wireframes# Hand# sketches# Clickable# Mockups# Test# Test# Fidelity# Copyright#©#2015#@danolsen#


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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#


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“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#


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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#


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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#


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Itera/ng#Between#User#Tes/ng#Waves# Problem#Space# All#your#hypotheses# Solu/on#Space# User#reac/ons# Mockups#/#Code# #Customer#Feedback# Copyright#©#2015#@danolsen#


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Problem' Space' Solu5on' Space' Copyright#©#2015#@danolsen#


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Persevere#or#Pivot? # Increasing' Product@Market'Fit' Product@Market'Fit'=' Geqng#enough#data#to# validate#you’re#climbing#up# the#right#mountain# Pivot' Copyright#©#2015#@danolsen#


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The#Lean#Product#Process:# Marke/ngReport.com#Case#Study# Copyright#©#2015#@danolsen#


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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#


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Mapping#Out#Customer#Benefits# Marke/ng#Shield # Concept# Marke/ng#Saver # Concept# Reduce Junk Mail Find out what they know about you Save Trees Marketing Report Marketing Score Money Saving Offers Compare Yourself to Others Social Networking Marketing Profile Copyright#©#2015#@danolsen#


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Copyright#©#2015#@danolsen#


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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#


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Learning#from#First#Wave#of#User#Tests# Shield Concept Saver Concept Reduce Junk Mail Find out what they know about you Save Trees Marketing Report Marketing Score Marketing Profile Money Saving Offers Compare Yourself to Others Social Networking Legend Strong appeal Some appeal Low appeal Copyright#©#2015#@danolsen#


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Copyright#©#2015#@danolsen#


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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#


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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#


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Qualita've*vs.*Quan'ta've*Learning* Qualita've* Oprah& Quan'ta've* Spock&


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Ken&Norton& Google&Ventures& “10x%not%10%:% Moonshot% Product%Management”% Dec%10th% Josh&Elman& Greylock&Partners& “Let’s%talk%about% Product% Management”% Jan%26th%


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Questions? @danolsen# olsensolu/ons.com# slideshare.net/dan_o# leanproductplaybook.com# # Book:#hOp:///ny.cc/LPP# #


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