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how to lead
customer
Value
creation
DAN OLSEN
OCT 20, 2016
How	Does	Your	Company	
Make	Money?
By	Crea5ng	Value	
for	Customers
Product-Market	Fit
Who	at	your	company	
creates	value	for	customers?	
Who	at	your	company	
creates	value	for	customers?
Whose	job	is	it	to	
make	sure	your	company	is	
crea5ng	value	for	customers?
A	Product	Manager	
by	any	other	name…
Spiderman’s	mo.o:	
“With	great	power	comes	
great	responsibility”
Product	Manager’s	mo.o:	
	
	
Spiderman’s	mo.o:	
“With	great	power	comes	
great	responsibility”	
	
“With	great	responsibili...
It’s	More	Like	This
As	a	Product	Manager,	Your	Job	Is	To:	
n  Herd	the	cats	inside	your	company	
n  To	get	them	to	create	value	for	customers	...
That’s	Why	I	Wrote	
Copyright	©	2016	@danolsen
The	Product-Market	Fit	Pyramid
The	Product-Market	Fit	Pyramid
The	Product-Market	Fit	Pyramid
The	Product-Market	Fit	Pyramid
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
The	Lean	Product	Process
Copyright	©	2016	@danolsen
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
Transporta5on	within	100	km	of	my	home	
Soccer	Mom	
	
	
Speed	Demon	
Carry	kids	&	gear	
Safety	
Fuel	economy	
Go	fast	
Loo...
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
n  Russians:	pencil	
n  NASA:	space	pen	
($1	M	R&D	cost)	
	
	
	
	
Example	
n  Ability	to	write	in	space	
(zero	gravity)	
P...
Problem	vs.	Solu5on	Space:	Product	Level	
Problem	Space	
(user	benefits)	
Solu5on	Space	
(product)	
TurboTax
TaxCut
Pen and...
Problem	Space	
	
Problem	vs.	Solu5on	Space:	Feature	Level	
Copyright	©	2016	@danolsen	
Save time filing
taxes
Save time
pr...
Priori5zing	Needs:	Importance	vs.	Sa5sfac5on	Importance	of	User	Need	
User	Sa5sfac5on	with	Current	Alterna5ves	
Compe55ve
...
Priori5zing	Needs:	Importance	vs.	Sa5sfac5on	Importance	of	User	Need	
User	Sa5sfac5on	with	Current	Alterna5ves	
Low	 High	...
Priori5zing	Needs:	Importance	vs.	Sa5sfac5on	Importance	of	User	Need	
User	Sa5sfac5on	with	Current	Alterna5ves	
Low	 High	...
Priori5zing	Needs:	Importance	vs.	Sa5sfac5on	Importance	of	User	Need	
User	Sa5sfac5on	with	Current	Alterna5ves	
Compe55ve
...
Priori5zing	Needs:	Importance	vs.	Sa5sfac5on	Importance	of	User	Need	
User	Sa5sfac5on	with	Current	Alterna5ves	
Low	 High	...
Crea5ng	Customer	Value	
Copyright	©	2016	@danolsen	
Importance	of	User	Need	
User	Sa5sfac5on	with	the	Product	
Low	 High	
...
Users	Rated	13	Key	Features	in	a	Survey	
Recommended	reading:	
What	Customers	Want 	by	Anthony	Ulwick	
Great	
Copyright	©	...
Kano	Model:	User	Needs	&	Sa5sfac5on	
User	Sa5sfac5on	
User	Dissa5sfac5on	
Performance	
(more	is	bener)	
Delighter	(wow)	
N...
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
What	is	Your	Value	Proposi5on?	
Copyright	©	2016	@danolsen
What	is	Your	Value	Proposi5on?	
n  Which	user	benefits	are	you	providing?	
n  How	are	you	bener	than	compe5tors?	
	
Must	Ha...
What	is	Your	Value	Proposi5on?	
n  Which	user	benefits	are	you	providing?	
n  How	are	you	bener	than	compe5tors?	
	 Compe9t...
What	is	Your	Value	Proposi5on?	
n  Which	user	benefits	are	you	providing?	
n  How	are	you	bener	than	compe5tors?	
	 Compe9t...
What	is	Your	Value	Proposi5on?	
n  Which	user	benefits	are	you	providing?	
n  How	are	you	bener	than	compe5tors?	
	 Compe9t...
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
What	is	an	MVP?	
Copyright	©	2016	@danolsen
What	is	an	MVP?	
Courtesy	of	Jussi	Pasanen	
See	Aaron	Walter’s	book	Designing	for	Emo-on	 Copyright	©	2016	@danolsen
What	is	an	MVP?	
Courtesy	of	Jussi	Pasanen	
See	Aaron	Walter’s	book	Designing	for	Emo-on	 Copyright	©	2016	@danolsen
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
The	UX	Design	Iceberg	
Copyright	©	2016	@danolsen	
What	most	
people	see	
and	react	to	
What	good	
product	teams	
think	ab...
The	UX	Design	Iceberg	
Copyright	©	2016	@danolsen	
What	most	
people	see	
and	react	to	
What	good	
product	teams	
think	ab...
Itera5ve	Design	&	Test	Workflow	
Copyright	©	2016	@danolsen	
Hand	
sketches	
Interac5vity	
Fidelity	
Clickable	
Wireframes*...
The	Lean	Product	Process	
1. Determine	your	target	customer	
2. Iden5fy	underserved	customer	needs	
3. Define	your	value	pr...
Dos	&	Don’ts	of	User	Tes5ng	Sessions	
Do	
n  Explain	to	the	user	
n  Feedback	will	help	improve	the	product	
n  Not	to	wor...
Itera5ng	Between	User	Tes5ng	Waves	
	Customer	Feedback	
Mockups	/	Code	
Copyright	©	2016	@danolsen	
Problem	Space	
All	you...
Problem	
Space	
Solu9on	
Space	
Copyright	©	2016	@danolsen
The	Lean	Product	Process:	
Marke5ngReport.com	Case	Study	
Copyright	©	2016	@danolsen
Marke5ngReport.com	Case	Study	
n  My	client	(CEO)	had	a	new	product	idea	
n  Team:	me,	CEO,	VP	marke5ng,	UI	designer	
n  G...
Mapping	Out	Customer	Benefits	
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
Yourself
to O...
Copyright	©	2016	@danolsen
Recrui5ng	Target	Customers	
n  Used	customer	research	firm	(panel)	
n  Wrote	screener	to	iden5fy	target	customers	
n  Work	...
Learning	from	First	Wave	of	User	Tests	
Reduce
Junk Mail
Find out what
they know
about you
Money
Saving
Offers
Compare
You...
Copyright	©	2016	@danolsen
Summary	of		Case	Study	
n  4	weeks	to	validated	product	concept	
n  1	round	of	itera5on	
n  Zero	coding	
n  Reasonable	cos...
The	Lean	Product	Process	
1.  Determine	your	target	customer	
2.  Iden5fy	underserved	customer	needs	
3.  Define	your	value...
Qualita5ve	vs.	Quan5ta5ve	Approach	
Qualita5ve	 Quan5ta5ve	
Oprah	 Spock
THANK
YOU!
@danolsen	
dan-olsen.com	
slideshare.net/dan_o
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne
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How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne

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Overview I gave of my book The Lean Product Playbook at Leading the Product Melbourne on October 20, 2016.

Publicado en: Empresariales
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How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbourne

  1. 1. how to lead customer Value creation DAN OLSEN OCT 20, 2016
  2. 2. How Does Your Company Make Money?
  3. 3. By Crea5ng Value for Customers
  4. 4. Product-Market Fit
  5. 5. Who at your company creates value for customers? Who at your company creates value for customers?
  6. 6. Whose job is it to make sure your company is crea5ng value for customers?
  7. 7. A Product Manager by any other name…
  8. 8. Spiderman’s mo.o: “With great power comes great responsibility”
  9. 9. Product Manager’s mo.o: Spiderman’s mo.o: “With great power comes great responsibility” “With great responsibility comes NO power”
  10. 10. It’s More Like This
  11. 11. As a Product Manager, Your Job Is To: n  Herd the cats inside your company n  To get them to create value for customers n  Under condi5ons of extreme uncertainty Sounds great! Where do I sign up?
  12. 12. That’s Why I Wrote Copyright © 2016 @danolsen
  13. 13. The Product-Market Fit Pyramid
  14. 14. The Product-Market Fit Pyramid
  15. 15. The Product-Market Fit Pyramid
  16. 16. The Product-Market Fit Pyramid
  17. 17. The Lean Product Process
  18. 18. The Lean Product Process
  19. 19. The Lean Product Process
  20. 20. The Lean Product Process
  21. 21. The Lean Product Process
  22. 22. The Lean Product Process
  23. 23. The Lean Product Process
  24. 24. The Lean Product Process
  25. 25. Copyright © 2016 @danolsen
  26. 26. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  27. 27. Transporta5on within 100 km of my home Soccer Mom Speed Demon Carry kids & gear Safety Fuel economy Go fast Looks cool Makes me look cool Target Customer Has Dis5nct Needs High-level need Target Customer Detailed needs Ideal Product Soccer Mom Speed Demon
  28. 28. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  29. 29. n  Russians: pencil n  NASA: space pen ($1 M R&D cost) Example n  Ability to write in space (zero gravity) Problem Space vs. Solu5on Space Problem Space n  A customer problem, need or benefit that the product should address n  A product requirement Solu5on Space n  A specific implementa5on to address the need or product requirement Copyright © 2016 @danolsen
  30. 30. Problem vs. Solu5on Space: Product Level Problem Space (user benefits) Solu5on Space (product) TurboTax TaxCut Pen and paper Prepare my taxes File my taxes Check my taxes Maximize deductions Reduce audit risk Copyright © 2016 @danolsen
  31. 31. Problem Space Problem vs. Solu5on Space: Feature Level Copyright © 2016 @danolsen Save time filing taxes Save time preparing taxes Maximize my tax deductions Check my return Reduce my audit risk Help me prepare taxes Empowerment/ Confidence Save Time Save Money Tax Interview Wizard Audit Risk Analyzer Tax Return Error Checker Tax Data Downloader Electronic Tax Return Filing Tax Deduction Finder Solu5on Space
  32. 32. Priori5zing Needs: Importance vs. Sa5sfac5on Importance of User Need User Sa5sfac5on with Current Alterna5ves Compe55ve Market Low High Low High Not Worth Going Ajer Copyright © 2016 @danolsen
  33. 33. Priori5zing Needs: Importance vs. Sa5sfac5on Importance of User Need User Sa5sfac5on with Current Alterna5ves Low High Low High Copyright © 2016 @danolsen
  34. 34. Priori5zing Needs: Importance vs. Sa5sfac5on Importance of User Need User Sa5sfac5on with Current Alterna5ves Low High Low High Copyright © 2016 @danolsen
  35. 35. Priori5zing Needs: Importance vs. Sa5sfac5on Importance of User Need User Sa5sfac5on with Current Alterna5ves Compe55ve Market Opportunity Low High Low High Not Worth Going Ajer Copyright © 2016 @danolsen
  36. 36. Priori5zing Needs: Importance vs. Sa5sfac5on Importance of User Need User Sa5sfac5on with Current Alterna5ves Low High Low High Copyright © 2016 @danolsen
  37. 37. Crea5ng Customer Value Copyright © 2016 @danolsen Importance of User Need User Sa5sfac5on with the Product Low High Low High Area = Customer Value Created Area = Opportunity to Create Customer Value
  38. 38. Users Rated 13 Key Features in a Survey Recommended reading: What Customers Want by Anthony Ulwick Great Copyright © 2016 @danolsen Bad
  39. 39. Kano Model: User Needs & Sa5sfac5on User Sa5sfac5on User Dissa5sfac5on Performance (more is bener) Delighter (wow) Need not met Need fully met Must Have Needs & features migrate over 5me Copyright © 2016 @danolsen
  40. 40. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  41. 41. What is Your Value Proposi5on? Copyright © 2016 @danolsen
  42. 42. What is Your Value Proposi5on? n  Which user benefits are you providing? n  How are you bener than compe5tors? Must Have Benefit 1 Performance Benefit 1 Performance Benefit 2 Performance Benefit 3 Delighter Benefit 1 Delighter Benefit 2 Copyright © 2016 @danolsen
  43. 43. What is Your Value Proposi5on? n  Which user benefits are you providing? n  How are you bener than compe5tors? Compe9tor A Compe9tor B You Must Have Benefit 1 Performance Benefit 1 Performance Benefit 2 Performance Benefit 3 Delighter Benefit 1 Delighter Benefit 2 Copyright © 2016 @danolsen
  44. 44. What is Your Value Proposi5on? n  Which user benefits are you providing? n  How are you bener than compe5tors? Compe9tor A Compe9tor B You 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 - Delighter Benefit 2 - - Copyright © 2016 @danolsen
  45. 45. What is Your Value Proposi5on? n  Which user benefits are you providing? n  How are you bener than compe5tors? Compe9tor A Compe9tor B You Must Have Benefit 1 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 - - Delighter Benefit 2 - - Y Copyright © 2016 @danolsen
  46. 46. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  47. 47. What is an MVP? Copyright © 2016 @danolsen
  48. 48. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  49. 49. What is an MVP? Courtesy of Jussi Pasanen See Aaron Walter’s book Designing for Emo-on Copyright © 2016 @danolsen
  50. 50. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  51. 51. The UX Design Iceberg Copyright © 2016 @danolsen What most people see and react to What good product teams think about
  52. 52. The UX Design Iceberg Copyright © 2016 @danolsen What most people see and react to What good product teams think about
  53. 53. Itera5ve Design & Test Workflow Copyright © 2016 @danolsen Hand sketches Interac5vity Fidelity Clickable Wireframes* Clickable Mockups** Live Product Test Test Test * Balsamiq: balsamiq.com ** InVision: invisionapp.com
  54. 54. The Lean Product Process 1. Determine your target customer 2. Iden5fy underserved customer needs 3. Define your value proposi5on 4. Specify your MVP feature set 5. Create your MVP prototype 6. Test your MVP with customers Copyright © 2016 @danolsen
  55. 55. Dos & Don’ts of User Tes5ng Sessions Do n  Explain to the user n  Feedback will help improve the product n  Not to worry about hur5ng your feelings n  Think Aloud Protocol n  Try to be a fly on the wall n  Take notes and review them ajerwards for take-aways Don’t n  Help user or explain the UI (e.g., click over here ) n  Ask leading or close-ended ques5ons n  Get defensive or blame the user Copyright © 2016 @danolsen
  56. 56. Itera5ng Between User Tes5ng Waves Customer Feedback Mockups / Code Copyright © 2016 @danolsen Problem Space All your hypotheses Solu5on Space User reac5ons
  57. 57. Problem Space Solu9on Space Copyright © 2016 @danolsen
  58. 58. The Lean Product Process: Marke5ngReport.com Case Study Copyright © 2016 @danolsen
  59. 59. Marke5ngReport.com Case Study n  My client (CEO) had a new product idea n  Team: me, CEO, VP marke5ng, UI designer n  Goals n  See if business opportunity exists n  Do so quickly and inexpensively (no coding) n  Marke5ng report would let consumers control the direct mail that they receive n  Analogous to credit report Copyright © 2016 @danolsen
  60. 60. Mapping Out Customer Benefits Reduce Junk Mail Find out what they know about you Money Saving Offers Compare Yourself to Others Social Networking Marketing Report Marketing Score Marketing Profile Save Trees Marke5ng Shield Concept Marke5ng Saver Concept Copyright © 2016 @danolsen
  61. 61. Copyright © 2016 @danolsen
  62. 62. Recrui5ng Target Customers n  Used customer research firm (panel) n  Wrote screener to iden5fy target customers n  Work full-5me n  Fit for Saver: use coupons, Costco membership n  Fit for Shield: use paper shredder, block caller ID n  Moderated users through the mockups Copyright © 2016 @danolsen
  63. 63. Learning from First Wave of User Tests Reduce Junk Mail Find out what they know about you Money Saving Offers Compare Yourself to Others Social Networking Marketing Report Marketing Score Marketing Profile Save Trees Legend Strong appeal Some appeal Low appeal Shield Concept Saver Concept Copyright © 2016 @danolsen
  64. 64. Copyright © 2016 @danolsen
  65. 65. Summary of Case Study n  4 weeks to validated product concept n  1 round of itera5on n  Zero coding n  Reasonable cost n  Customers willing to pay $10/month n  Trimmed away non-valuable pieces n  You can achieve similar results Copyright © 2016 @danolsen
  66. 66. The Lean Product Process 1.  Determine your target customer 2.  Iden5fy underserved customer needs 3.  Define your value proposi5on 4.  Specify your MVP feature set 5.  Create your MVP prototype 6.  Test your MVP with customers Iterate: §  Hypothesize-Design-Test-Learn loop §  Improve product-market fit Copyright © 2016 @danolsen
  67. 67. Qualita5ve vs. Quan5ta5ve Approach Qualita5ve Quan5ta5ve Oprah Spock
  68. 68. THANK YOU! @danolsen dan-olsen.com slideshare.net/dan_o

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