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© Hanken Svenska handelshögskolan / Hanken School of Economics, www.hanken.fi
SW product management in a startup
Juhana Peltonen, D.Sc. (Tech.)
© Hanken Svenska handelshögskolan / Hanken School of Economics, www.hanken.fi
Assistant Professor
Erling-Persson Centre for Entrepreneurship
Hanken School of Economics
Agenda
» How to match fast and iterative business development activities with agile product development in a startup context (~30 mins)
» Design Thinking: Learning by doing (~40 mins)
» Essay (~20 mins)
11/9/2017Laitoksen nimi
4
Product development: The traditional way
11/9/2017Laitoksen nimi
5Royce, Winston (1970), "Managing the Development of Large Software Systems"
Product development: The traditional way
Product development: The traditional way
Create positioning and
marketing materials
Hire PR agency and
Sales VP
Launch event, create
demand and branding
Royce, Winston (1970), "Managing the Development of Large Software Systems"
In other words:
2: Success / fail ?
1: Burn through all funding for product development
The agile approach in software engineering
Product positioning – the traditional way
Product
Design, technology, quality, packaging, branding, accessories, warranties, aftersales, services
Price
Strategies, tactics, rebates to distributors, discounts, payment terms.
Place
Distribution channels, distribution area, point of sale, warehouses, means of transport
Promotion
Building awareness, advertising, sales force, public relations, free advertising
Marketing mix
+ 3P´s = Process, People, and Physical Environment
McCarthy EJ. (1960) Basic Marketing: A Managerial Approach.
What if?
Agile productdevelopment
’Agile’ customer development?
Successful venture
Idea
Fast failure
Content of the day
How fail or succeed faster and cheaper?
Lean startup
idea BuildLearn
DataMeasure
Code
MVP
Ries, Erik. “The Lean Startup”. 2012
How fail or succeed faster and cheaper?
Customer Development
Customer
discoveryCustomer
validation
Customer
creationCompany
buildingSTOPSTOP STOP
• What are the
customers’ top
problems?
• Does your product
concept solve
them?
• How much will
customers pay?
• Focus on
’earlyvangelists’
• Do you understand
the customers
buying process?
• Does you financial
model make sense?
• Do you have a set
of orders?
• Crossing the
’chasm’ (from early
adopters to the
early majority)
• Existing market /
Resegmented
market / New
market
• Professionalizing
management
• Does the company
have a clear
mission?
• Growth and sales
plans match the
market?
Blank, Dorf. The Startup Owner’s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
Product development
Customer discovery
1. State your business modelhypotheses
2. ”Get out of the building” to test the problem: ”Do people care”?
3. ”Get out of the building”: Test the product solution
4. Verify the business model: Pivot or proceed
Blank, Dorf. The Startup Owner’s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
The business model canvas: A useful way to organize hypos.
A. Osterwalder, 2008
The business model canvas: A useful way to organize hypos.
Ver 0.1 Ver 0.2 Ver 0.3
Test &
revise
Test &
revise
….Scalable
BM?
Testing hypotheses on market size and growth
A market is the set of actual and potential buyers of a product/service.
Thus, the size of a market depends on the number of people who…
1) exhibit the need for the product/service
2) have resources to engage in exchange
3) are willing to offer these resources in
exchange for what they want
You should have some initial estimates of market size, in terms of number of customers, the number of units and the total sales in euros.
Total addressable (/available) market (TAM), vs. served available market (SAM), vs. target market.
Earlyvangelists - the most important customers for startups?
Has
aquired
a budget
Assembled a solution out of parts
Been actively looking for a solution
Is aware of having a problem
Has a problem
Blank, Dorf. The Startup Owner’s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
Minimum Viable Product (MVP)
» A strategy to maximize customer learning in the shortest possible time using the smallest possible engineering resources.
» Has the minimun features that still solves the core customer problem and demonstrates the value of the product
» Not just a prototype!
Oculus rift prototype
Source: Endgadget