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MaY 2015
Copyright*©*2015*Olsen*Solu7ons*
My*Background*
!  Educa7on*
!  Engineering*background*
!  Stanford*MBA*
!  Web*developmen...
What*does*“Lean”*mean?*
!  Ar7culate*hypotheses*
!  Iden7fy*fastest*way*to*test*
!  Keep*scope*small:*
minimum*viable*prod...
Copyright*©*2015*Olsen*Solu7ons*
What*is*ProductaMarket*Fit?*
The*Lean*Product*Process*
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Define*your*value*pr...
Transporta7on*within*100*miles*of*my*home*
Soccer*Mom*
*
*
Speed*Demon*
•  Carry*kids*&*gear*
•  Safety*
•  Fuel*economy*
...
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Define*your*value*pr...
*
*
!  Russians:*pencil*
!  NASA:*space*pen*
($1*M*R&D*cost)*
*
*
*
*
Example:*
!  Ability*to*write*in*space*
(zero*gravit...
Problem*Space*vs.*Solu7on*Space:*
Product*Level*
Problem*Space*
(user*benefit)*
Solu7on*Space*
(product)*
TurboTax
TaxCut
P...
Problem*vs.*Solu7on*Space:*Feature*Level*
Problem*Space*
*
Solu7on*Space*
Save time filing
taxes
Save time
preparing taxes...
Priori7zing*Customer*Needs:*
Importance*vs.*Sa7sfac7on*Importance*of*User*Need*
User*Sa7sfac7on*with*Current*Alterna7ves*
...
Customer*Value*
Copyright*©*2015*Olsen*Solu7ons*
Importance*of*User*Need*
User*Sa7sfac7on*with*Current*Alterna7ves*
Low* H...
Kano*Model:*User*Needs*&*Sa7sfac7on*
User*Sa7sfac7on*
User*Dissa7sfac7on*
Performance*
(more*is*beVer)*
Delighter*(wow)*
N...
Copyright*©*2015*Olsen*Solu7ons*
Importance*vs.*Sa7sfac7on*
*Ask*Users*to*Rate*for*Each*Feature*
Recommended*reading:*
Wha...
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Define*your*value*pr...
What*is*Your*Value*Proposi7on?*
!  Which*user*benefits*are*you*providing?*
!  How*are*you*beVer*than*compe7tors?*
* Compe&t...
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Define*your*value*pr...
What*is*an*MVP?*
Courtesy*of*Jussi*Pasanen*
See*Aaaron*Walter’s*book*Designing'for'Emo-on' Copyright*©*2015*Olsen*Solu7ons*
Breaking*Features*Down*into*Chunks*
Copyright*©*2015*Olsen*Solu7ons*
Must
Have 1
Performance
1
Delighter
1
Delighter
2
Mus...
Product*Roadmap:*
Features*by*Version*or*Time*
Copyright*©*2015*Olsen*Solu7ons*
Must Have Benefit 1
Performance Benefit 1
...
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*
needs*
3. Define*your*value*p...
The*UX*Design*Iceberg*
Copyright*©*2015*Olsen*Solu7ons*
What most
people see
and react to
What good
product
people
think a...
Genng*Customer*Feedback:*
Problem*Space*vs.*Solu7on*Space*
!  Customers*CAN’T*ar7culate*problem*space*
!  Customers*CAN*re...
Design*Ar7facts:*
Interac7vity*vs.*Fidelity*
Copyright*©*2015*Olsen*Solu7ons*
Hand*
sketch*
Interac7vity*
Fidelity*
Intera...
The*Lean*Product*Process*
1. Determine*your*target*customer*
2. Iden7fy*underserved*customer*needs*
3. Define*your*value*pr...
What*Are*You*Going*to*Get*Feedback*&*
Learnings*About?*
Problem*Space*
(your*mental*model)*
Solu7on*Space*
(what*users*can...
Ramen *User*Feedback*for*Startups*
!  Anyone*can*do*it!*
!  Ingredients:*
! Solu7onaspace*product/mockup*to*test*
! 1*cust...
Typical*Format*for*User*Tes7ng*Session*
!  5*a*10*min:*Ask*ques7ons*to*understand*user*
needs*and*solu7ons*they*currently*...
Dos*&*Don’ts*of*User*Tes7ng*Sessions*
!  Do*
!  Explain*to*the*user:*
!  Their*feedback*will*help*improve*the*product*
!  ...
Copyright*©*2015*YourVersion*
Itera7ng*Your*Product*Vector*Based*on*
User*Feedback*in*Solu7on*Space*
Problem*Space*
(your*mental*model)*
Solu7on*Space*
...
Problem*
Space*
Solu7on*
Space*
Copyright*©*2015*Olsen*Solu7ons*
Copyright*©*2015*Olsen*Solu7ons*
Case*Study*on*ProductaMarket*Fit:*
Marke7ngReport.com*
ProductaMarket*Fit*Case*Study:*
Marke7ngReport.com*
!  My*consul7ng*client*(CEO)*had*an*idea*
for*a*new*product*
!  Team:*...
ProductaMarket*Fit*Case*Study:*
Developing*Product*Concept*
!  Product*Concept*was* marke7ng*report *that*let*
consumers*c...
Clustering*Poten7al*User*Benefits*to*
Create*Product*Concepts*
Reduce
Junk Mail
Find out what
they know
about you
Money
Sav...
Copyright*©*2015*Olsen*Solu7ons*
Copyright*©*2015*Olsen*Solu7ons*
!  Telephone*recruit*of*prospec7ve*customers*
!  Wrote*phoneascreen*ques7onnaire*to*create*rough*
target*customer*segmenta...
ProductaMarket*Fit*Case*Study:*
Findings*on*Concepts*&User*Benefits*
Reduce
Junk Mail
Find out what
they know
about you
Mon...
Copyright*©*2015*Olsen*Solu7ons*
ProductaMarket*Fit*Case*Study:*
Summary*
!  4*weeks*from*1st*mee7ng*to*validated*
product*concept*with*zero*coding*
!  Rea...
The*Lean*Product*Process*
1.  Determine*your*target*customer*
2.  Iden7fy*underserved*customer*needs*
3.  Define*your*value...
Qualita7ve*vs.*Quan7ta7ve*Learning*
New)Product)
Qualita7ve*interviews*
Exis&ng)Product)
Quan7ta7ve*data*
Oprah) Spock)
Copyright*©*2015*Olsen*Solu7ons*
The*Lean*Product*Playbook*
!  Published*by*Wiley*
!  Comes*out*June*2nd**
!  Hardcover*&*...
Questions?
@danolsen*
olsensolu7ons.com*
slideshare.net/dan_o*
leanproductplaybook.com*
*
Book:*bit.ly/leanplaybook*
*
*
*
The Lean Product Playbook by Dan Olsen
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The Lean Product Playbook by Dan Olsen

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Talk I gave at Modev's MVP conference in May 2015 sharing ideas from my new book on how to apply Lean Startup principles to achieve product-market fit. You can learn more at http://tiny.cc/LPP

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The Lean Product Playbook by Dan Olsen

  1. 1. MaY 2015
  2. 2. Copyright*©*2015*Olsen*Solu7ons* My*Background* !  Educa7on* !  Engineering*background* !  Stanford*MBA* !  Web*development*and*UX*design* !  Deep*Product*Management*Experience* !  Submarine*design* !  Led*Quicken*Product*Management*at*Intuit* !  Led*Product*Management*at*Friendster* !  CEO*&*Cofounder*of*YourVersion,* Pandora*for*your*news * !  PM*consultant:*Facebook,*Box,*MicrosoT,*YouSendIt* !  Organizer:*Lean*Product*&*UX*Meetup*Silicon*Valley* * Slides*at*hVp://slideshare.net/dan_o**
  3. 3. What*does*“Lean”*mean?* !  Ar7culate*hypotheses* !  Iden7fy*fastest*way*to*test* !  Keep*scope*small:* minimum*viable*product*(MVP)* !  Test*with*customers* !  Learn*and*iterate* !  Achieve*productamarket*fit* Copyright*©*2015*Olsen*Solu7ons* Sound*good?*
  4. 4. Copyright*©*2015*Olsen*Solu7ons*
  5. 5. What*is*ProductaMarket*Fit?*
  6. 6. The*Lean*Product*Process*
  7. 7. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer*needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  8. 8. Transporta7on*within*100*miles*of*my*home* Soccer*Mom* * * Speed*Demon* •  Carry*kids*&*gear* •  Safety* •  Fuel*economy* •  Go*fast* •  Looks*cool* •  Makes*me*look*cool* * * * * * Target*Customer*Has*Dis7nct*Needs* Highalevel*need:* * Target*Customer:* * * * Detailed*needs:* * * Ideal*Product:* Soccer*Mom* Speed*Demon*
  9. 9. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer*needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  10. 10. * * !  Russians:*pencil* !  NASA:*space*pen* ($1*M*R&D*cost)* * * * * Example:* !  Ability*to*write*in*space* (zero*gravity)* Problem*Space*vs.*Solu7on*Space* !  Problem*Space* !  A*customer*problem,* need,*or*benefit*that*the* product*should*address* !  A*product*requirement* !  Solu7on*Space* !  A*specific* implementa7on*to* address*the*need*or* product*requirement* * Copyright*©*2015*Olsen*Solu7ons*
  11. 11. Problem*Space*vs.*Solu7on*Space:* Product*Level* Problem*Space* (user*benefit)* Solu7on*Space* (product)* TurboTax TaxCut Pen and paper Prepare my taxes File my taxes Check my taxes Maximize deductions Reduce audit risk Copyright*©*2015*Olsen*Solu7ons*
  12. 12. Problem*vs.*Solu7on*Space:*Feature*Level* Problem*Space* * Solu7on*Space* 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 Copyright*©*2015*Olsen*Solu7ons*
  13. 13. Priori7zing*Customer*Needs:* Importance*vs.*Sa7sfac7on*Importance*of*User*Need* User*Sa7sfac7on*with*Current*Alterna7ves* Compe77ve Market*Opportunity* Low* High* Low* High* Not*Worth*Going*ATer* Copyright*©*2015*Olsen*Solu7ons*
  14. 14. Customer*Value* Copyright*©*2015*Olsen*Solu7ons* Importance*of*User*Need* User*Sa7sfac7on*with*Current*Alterna7ves* Low* High* Low* High*
  15. 15. Kano*Model:*User*Needs*&*Sa7sfac7on* User*Sa7sfac7on* User*Dissa7sfac7on* Performance* (more*is*beVer)* Delighter*(wow)* Need* not*met* Need* fully*met* Must*Have* Needs*&*features* migrate*over*7me* Copyright*©*2015*Olsen*Solu7ons*
  16. 16. Copyright*©*2015*Olsen*Solu7ons* Importance*vs.*Sa7sfac7on* *Ask*Users*to*Rate*for*Each*Feature* Recommended*reading:* What*Customers*Want *by*Anthony*Ulwick* Bad* Great*
  17. 17. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer*needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  18. 18. What*is*Your*Value*Proposi7on?* !  Which*user*benefits*are*you*providing?* !  How*are*you*beVer*than*compe7tors?* * Compe&tor)A) Compe&tor)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* a* a* Delighter*Benefit*2* a* a* Y* Copyright*©*2015*Olsen*Solu7ons*
  19. 19. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer*needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  20. 20. What*is*an*MVP?* Courtesy*of*Jussi*Pasanen* See*Aaaron*Walter’s*book*Designing'for'Emo-on' Copyright*©*2015*Olsen*Solu7ons*
  21. 21. Breaking*Features*Down*into*Chunks* Copyright*©*2015*Olsen*Solu7ons* Must Have 1 Performance 1 Delighter 1 Delighter 2 Must Have 2 Performance 2 Performance 3 Benefits: M1A P1A D2AM2A P2A P3B Features: P1B D2BP2B P3C P3A P1C P1D
  22. 22. Product*Roadmap:* Features*by*Version*or*Time* Copyright*©*2015*Olsen*Solu7ons* Must Have Benefit 1 Performance Benefit 1 Performance Benefit 3 Delighter Benefit 1 Performance Benefit 2 Must Have Benefit 2 Delighter Benefit 2 M1A Time v1 v1.5 v2 v2.5 M2A P3A P1B P3B P2A P1A D2A P3C D2B MVP candidate
  23. 23. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer* needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  24. 24. The*UX*Design*Iceberg* Copyright*©*2015*Olsen*Solu7ons* What most people see and react to What good product people think about
  25. 25. Genng*Customer*Feedback:* Problem*Space*vs.*Solu7on*Space* !  Customers*CAN’T*ar7culate*problem*space* !  Customers*CAN*react*to*solu7on*space* !  That’s*why*you*need*something*tangible*to* show*to*customers*to*get*good*feedback* Copyright*©*2015*Olsen*Solu7ons*
  26. 26. Design*Ar7facts:* Interac7vity*vs.*Fidelity* Copyright*©*2015*Olsen*Solu7ons* Hand* sketch* Interac7vity* Fidelity* Interac7ve* Prototype* Sta7c* Wireframe** Clickable* Wireframe** Mockup* * Clickable* Mockup*** **Balsamiq:*balsamiq.com* ***InVision:*invisionapp.com*
  27. 27. The*Lean*Product*Process* 1. Determine*your*target*customer* 2. Iden7fy*underserved*customer*needs* 3. Define*your*value*proposi7on* 4. Specify*your*MVP*feature*set* 5. Create*your*MVP*prototype* 6. Test*your*MVP*with*customers* Copyright*©*2015*Olsen*Solu7ons*
  28. 28. What*Are*You*Going*to*Get*Feedback*&* Learnings*About?* Problem*Space* (your*mental*model)* Solu7on*Space* (what*users*can*react*to)* Customer* Understanding* (needs*&* preferences)* Feature*Set* UX*Design* Messaging** Copyright*©*2015*Olsen*Solu7ons*
  29. 29. Ramen *User*Feedback*for*Startups* !  Anyone*can*do*it!* !  Ingredients:* ! Solu7onaspace*product/mockup*to*test* ! 1*customer*(with*laptop/phone*if*tes7ng*code)* ! 1*desk* ! 1*person*to*conduct*the*session* ! Pen*and*paper* ! Op7onal*noteataker*and*observers* Copyright*©*2013*Olsen*Solu7ons*
  30. 30. Typical*Format*for*User*Tes7ng*Session* !  5*a*10*min:*Ask*ques7ons*to*understand*user* needs*and*solu7ons*they*currently*use* !  30*a*50*min:*User*feedback* !  Show*user*product/mockup* !  Nonadirected*as*much*as*possible* !  When*necessary,*direct*user*to*aVempt*to* perform*a*specific*task* !  5*a*10*min:*Wrapaup* !  Answer*any*user*ques7ons*that*came*up* !  Point*out/explain*features*you*want*to*highlight* !  Ask*them*if*they*would*use*the*product* Copyright*©*2015*Olsen*Solu7ons*
  31. 31. Dos*&*Don’ts*of*User*Tes7ng*Sessions* !  Do* !  Explain*to*the*user:* !  Their*feedback*will*help*improve*the*product* !  Not*to*worry*about*hur7ng*your*feelings* !  Think*Aloud*Protocol * !  Ask*user*to*aVempt*the*task,*then*be*a*fly*on*the*wall* !  Ask*nonaleading,*openaended*ques7ons* !  Take*notes*and*review*them*aTerwards*for*takeaaways* !  Don’t* !  Ask*leading*or*closeaended*ques7ons* !  Help *the*user*or*explain*the*UI*(e.g.,* click*over*here )* !  Respond*to*user*frustra7on*or*ques7ons*(un7l*test*is*over)* !  Get*defensive* !  Blame*the*user* Copyright*©*2015*Olsen*Solu7ons*
  32. 32. Copyright*©*2015*YourVersion*
  33. 33. Itera7ng*Your*Product*Vector*Based*on* User*Feedback*in*Solu7on*Space* Problem*Space* (your*mental*model)* Solu7on*Space* (what*users*can*react*to)* *Customer*Feedback* Mockups*/*Code* Copyright*©*2015*Olsen*Solu7ons*
  34. 34. Problem* Space* Solu7on* Space* Copyright*©*2015*Olsen*Solu7ons*
  35. 35. Copyright*©*2015*Olsen*Solu7ons* Case*Study*on*ProductaMarket*Fit:* Marke7ngReport.com*
  36. 36. ProductaMarket*Fit*Case*Study:* Marke7ngReport.com* !  My*consul7ng*client*(CEO)*had*an*idea* for*a*new*product* !  Team:*me,*CEO,*head*of*marke7ng,* UI*design*consultant* !  Goal:* ! Validate*productamarket*fit*quickly,*cheaply* without*wri7ng*a*single*line*of*code* ! Determine*if*there*was*a*business* opportunity*here* Copyright*©*2015*Olsen*Solu7ons*
  37. 37. ProductaMarket*Fit*Case*Study:* Developing*Product*Concept* !  Product*Concept*was* marke7ng*report *that*let* consumers*control*the*direct*mail*that*they* receive* !  Concept*was*fuzzy*with*various*components,*so*I* broke*it*into*2*different* flavors :* #1* Marke7ng*Shield :*Service*to*reduce/stop*junk*mail* #2* Marke7ng*Saver :*Opt*in*&*receive*moneyasaving*offers* Copyright*©*2015*Olsen*Solu7ons*
  38. 38. Clustering*Poten7al*User*Benefits*to* Create*Product*Concepts* 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 Shield Concept Saver Concept Copyright*©*2015*Olsen*Solu7ons*
  39. 39. Copyright*©*2015*Olsen*Solu7ons*
  40. 40. Copyright*©*2015*Olsen*Solu7ons*
  41. 41. !  Telephone*recruit*of*prospec7ve*customers* !  Wrote*phoneascreen*ques7onnaire*to*create*rough* target*customer*segmenta7on* !  Wanted*users*who*work*fulla7me*&*use*internet* !  Fit*for*optain*offers:*use*coupons,*Costco*membership* !  Fit*for*an7ajunk*mail:*use*paper*shredder,*block*caller*ID* !  Paid*each*person*$75* !  Scheduled*3*groups*of*2*or*3*people*to*discuss* each*product*concept*for*90*minutes* !  Moderated*each*group*through*the*paper* mockups*to*hear*their*feedback* ProductaMarket*Fit*Case*Study:* Recrui7ng*People* Copyright*©*2015*Olsen*Solu7ons*
  42. 42. ProductaMarket*Fit*Case*Study:* Findings*on*Concepts*&User*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 Legend Strong appeal Some appeal Low appeal Shield Concept Saver Concept Copyright*©*2015*Olsen*Solu7ons*
  43. 43. Copyright*©*2015*Olsen*Solu7ons*
  44. 44. ProductaMarket*Fit*Case*Study:* Summary* !  4*weeks*from*1st*mee7ng*to*validated* product*concept*with*zero*coding* !  Reasonable*cost* !  1*round*of*itera7on*on*product*concept* !  Iden7fied*compelling*concept*that*users* are*willing*to*pay*$10/month*for* !  Trimmed*away*nonavaluable*pieces* !  You*can*achieve*similar*results* Copyright*©*2015*Olsen*Solu7ons*
  45. 45. The*Lean*Product*Process* 1.  Determine*your*target*customer* 2.  Iden7fy*underserved*customer*needs* 3.  Define*your*value*proposi7on* 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*Olsen*Solu7ons*
  46. 46. Qualita7ve*vs.*Quan7ta7ve*Learning* New)Product) Qualita7ve*interviews* Exis&ng)Product) Quan7ta7ve*data* Oprah) Spock)
  47. 47. Copyright*©*2015*Olsen*Solu7ons* The*Lean*Product*Playbook* !  Published*by*Wiley* !  Comes*out*June*2nd** !  Hardcover*&*ebook* !  Available*for*preorder* on*Amazon:* bit.ly/leanplaybook*
  48. 48. Questions? @danolsen* olsensolu7ons.com* slideshare.net/dan_o* leanproductplaybook.com* * Book:*bit.ly/leanplaybook* * * *

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