how to make products that don't suck product camp st louis - apr 21 2012
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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
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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
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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 product camp st louis - apr 21 2012](https://reader034.vdocuments.site/reader034/viewer/2022052301/541466358d7f72506c8b457a/html5/thumbnails/4.jpg)
Why Do So Many Products Suck?
1. Idea to Product
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Why Do So Many Products Suck?
1. Idea to Product
2. One point of market evidence to idea to product
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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
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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
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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
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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 Value Proposition
– Profitable business model
– Time to market
• Compelling Market Strategy
– Motivates target market
– To solve problem with your solution
Discovery
+
Validation
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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
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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?
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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
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Market Evidence (of Market Problem)
• Sources of Market Evidence
– Customers
– Non-customers
– Market trends/shifts
– Unexpected occurrences
– New technologies
– Competitors
– Personal experience
– Etc.
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Market Evidence (of Market Problem)
• Sources of Market Evidence
– Customers
– Non-customers
– Market trends/shifts
– Unexpected occurrences
– New technologies
– Competitors
– Personal experience
– Etc.
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Start With Hypothesis
– Buyer/User ‘W’
– In Market Segment “X”
– Has problem “Y”
– That happens when “Z” occurs
– We can solve it by creating/delivering solution “A”
E.g.: Owners of 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.
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Screening
• Alignment with company
– Strategy
– Target markets
– Core competencies
• Potential Competition
– Does someone already do this?
– Are there other ways to address this problem?
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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
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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
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Plan Strategy
• Define & discover at greater depth
• Competitive research (strategy, position, strength)
• Validate the market opportunity
– Business Case - Can it be profitable?
• Detailed design of product & business model
– Market requirements, product requirements, user
stories, etc.
– Pricing model, delivery mechanism, costs to deliver,
etc.
• Iterate until validated or rejected
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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
– Learning
• Continue to discover, validate, refine!
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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!
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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 23: How to make products that don't suck product camp st louis - apr 21 2012](https://reader034.vdocuments.site/reader034/viewer/2022052301/541466358d7f72506c8b457a/html5/thumbnails/23.jpg)
Key Principles
• Hypothesis – Discovery – Validate
• Continuous engagement with target market
– Validate important decisions
• Planning is good, but learning is better
• Fail fast – discover fast!
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Additional References
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Copyright 2012 - LÛCRUM MARKETING
Thank You!
Tom Evans
Lûcrum Marketing
+1.512.961.5267
@compellingmktr