A Real-World, Practice Guide For Launching a Great Product - Modev MVP Conference 5-18-2015

©"Shardul"Mehta"2015"
h1p://streetsmartproductmanager.com""
@shardulmehta"
Big$Documents$Suck.$Focus$On$Ac4on$Instead.$
$
A"real'world,"prac.cal"guide"for"launching"a"great"product"
Shardul"Mehta"
"
Presented"at"MVP"Conference"2015"
May"18,"2015"

@shardulmehta"
Founder$
WebDocOﬃce,"ProductCamp"DC"
"
Product$Manager$
Healthcare,"retail"services,"ﬁnancial"services,"
payments,"F500,"<30"people"
"
Mentor,$Advisor$
Lean"Startup"Machine,"Startup"Mason,"
plenty"of"product"people"and"entrepreneurs"
"
Former$C/C++,$Java$Programmer$
$
VP$Product$
1"
@shardulmehta"
streetsmartproductmanager.com""
Hi.$I’m$Shardul.$

@shardulmehta"
This$is$a$story$about…$
2"
…innova4on$

@shardulmehta"
How$to$Pursue$Innova4on:$Business$School$&$Consul4ng$Edi4on$
3"
Concept"
Business"
Case/Plan"
Get"
Approval"
Execute"
•  Resources"
•  Money"
•  MRD"
•  Strategy"doc"

@shardulmehta"
A$new$product$story…$
•  Imagine"a"white"labeled"enterprise"B2B2C"web"app"that:"
!  Was"the"ﬁrst"of"its"kind"in"its"industry"
!  So"delighted"B2B"clients"that"they"required"its"delivery"in"their"
contracts"
!  Helped"close"a"mul[million"dollar"deal"with"the"world’s"largest"home"
improvement"specialty"retailer"
!  Whose"UX"was"given"4.5"stars"out"of"5"by"its"end"users"
!  Delivered"a"UI"framework"that"could"be"leveraged"for"new"mul[
million"dollar"digital"businesses"
4"
A$success?$

@shardulmehta"
Another$product$story$
•  The"Product:"
–  No."of"pages"in"PRD:"100+"
–  No."of"features"to"be"delivered:"
65"
–  No."of"revisions"to"PRD:"6"over"a"
9month"period"
•  The"Cost:"
–  Planned"direct"spend:"$700,000"
•  The"Process:"
–  No."of"preapprovals"and"gates"
prior"to"ﬁnal"investment"
approval:"6"
5"
The"Result:"
  No."of"launch"delays:"3"
  Concep[on"to"launch:"18"
months"
  Actual"direct"spend:"$1.6"
million"
  %"of"features"ﬁnally"
delivered:"57%"
A$success?$

@shardulmehta"
Same$product$
6"
! First"of"its"kind"in"its"industry"
! So"delighted"B2B"clients"that"they"
required"its"delivery"in"their"
contracts"
! Helped"close"a"mul[million"dollar"
deal"with"the"world’s"largest"home"
improvement"specialty"retailer"
! UX"was"given"4.5"stars"out"of"5"by"
its"end"users"
! Delivered"a"UI"framework"that"
could"be"leveraged"for"new"mul[
million"dollar"digital"businesses"
 No."of"pages"in"PRD:"72"
 No."of"PRD"revisions:"6"over"9"
months"
 Planned"direct"spend:"$700,000"
 No."of"preapprovals"and"gates:"6"
 No."of"launch"delays:"3"
 Concep[on"to"launch:"18"months"
 Actual"direct"spend:"$1.6"million"
 %"of"features"ﬁnally"delivered:"57%"

@shardulmehta"
But$I$followed$the$process$I$was$taught!$
7"
Concept"
Business"
Case"
Get"
Approval"
Execute"
You have few facts
Your need: learning
Execs’ need: growth
(a.k.a., write a big
document)
Have you built something
customers want?
(Too late to learn!)
Unfortunately,$that$process$is$extremely$risky$and$wasteful$

@shardulmehta" 8"
The"tradi[onal"product"innova[on"process"doesn’t"work"

@shardulmehta"
People$hate$the$current$process$
9"
Building"the"Business"Case"
“It’s$a$necessary$evil.$But$it’s$a$wasteful$process.”$
“It’s"a"joke.”"
“It’s"a"manager"figh[ng"with"an"Excel"spreadsheet"
for"a"month.”"
“I’m$forced$to$project$revenues$out$of$thin$air.$
[This]$is$a$nonsensical$exercise.”$
“A"business"case"is"just"a"lifeless"PowerPoint"deck.”"
“Currently,"we"have"to"fill"out"a"Project"
Engagement"Request"Form"that"asks"for"numbers."
But"it’s"all"guesswork."It’s"a"waste.”"
“Financial"analysis"–"it’s"really"just"pretend.”"
Selling"the"Business"Case"
“Typically"what"happens"is"you"build"the"business"
case,"and"then"because"you"can’t"guarantee"the"
results"the"execs"ask"you"to"do"more"research.”"
“You$are$describing$
my$life!”$
“People$inflate$their$numbers.”$
“It"took"months"and"months"to"get"through"the"
business"case.”"
“I"need"to"build"a"horse"by"commi1ee"and"I"got"a"
camel.”"
“There’s$a$desire$to$apply$exis4ng$
[corporate]$structure$to$pursuing$ideas.$It$
results$in$the$pursuit$of$metrics$that$you$
want$to$tell$your$version$of$the$story$[as$
opposed$to$the$customer’s].$The$product$
plan,$even$when$approved,$is$o[en$very$
lame,$4mid$and$only$designed$to$help$
achieve$metrics$sufficient$to$secure$bonus$
payouts.”$

@shardulmehta" 10"
So"what’s"a"Product"Manager"to"do?"

@shardulmehta"
Lean$Startup?$
11"

@shardulmehta"
Lean$Startup$
•  The"applica[on"of"lean"thinking"to"the"process"of"innova[on"
•  Characterized"by:"
–  Extremely"fast"cycle"[me"
–  Focus"on"what"customers"want"
(without"asking"them)"
–  Scien[ﬁc"approach"to"decision"making:"
•  Formula[ng"hypotheses"
•  Running"experiments"
•  Rigorous"tes[ng"of"assump[ons"
•  Started"(and"trademarked)"by"Eric"Ries"
12"
Customer$
Development$
Agile$
Development$
Lean$
Manufacturing$
Principles$
Lean Startup

@shardulmehta"
Reality$check$–$Product$Innova4on:$Enterprise$Edi4on$
13"

@shardulmehta"
Big$ques4on$
•  Can"Lean"Startup"principles"be"leveraged"for"new"product"
innova[on"inside"an"exis[ng"company?"
14"
•  How"can"I"generate"customer"trac[on"earlier"in"the"product"development"
lifecycle?"
•  Rather"than"a"big"ask"with"a"long"ROI"realiza[on,"is"there"a"be1er"
investment"approach"that"delivers"ROI"throughout"the"process?"
•  How"can"I"obtain"and"retain"stakeholder"support"throughout"the"product"
development"process?"
Suppor.ng"ques.ons"

@shardulmehta"
Our$approach:$bootstrap$using$validated$learning$milestones$
1.  Quickly"sketched"out"product"vision/strategy"
15"

@shardulmehta"
Customer$Segment$
$
For"whom"are"we"solving"a"
problem?"
For"whom"are"we"crea[ng"
value?"
"
"
"
"
"
"
"
Early$Adopter:"
"
Who"is"a"poten[al"early"
user"of"the"solu[on?"
"
Problem$
"
What"are"the"top"35"
problems"faced"by"our"target"
Customer"Segment?"
Unique$Value$Proposi4on$
"
How"are"we"uniquely"going"to"solve"
our"customer’s"problems"or"sa[sfy"
their"needs?"
A"single,"clear,"compelling"message"
that"states"why"you"are"different"and"
worth"buying."
Solu4on$
"
What"are"the"top"35"ways"
we"are"going"to"solve"the"
problems"faced"by"our"
Customer"Segment?"
"
Key$Success$
Factors$
"
How"will"we"measure"
success?"
What"key"metrics"are"we"
trying"to"move?"
Exis4ng$Alterna4ves"
"
How"are"they"solving"the"
problem"today?"
"
Channels"
"
How"will"we"get"(acquire),"keep"
(retain)"and"grow"(sell"more"to"
exis[ng)"customers?"
Get/Acquire:"How"will"we"drive"
awareness,"interest,"ac[va[on,"
usage?"
Keep/Retain:"How"will"we"keep"
customers"coming"back?"
Grow:"How"will"we"upsell/crosssell"
customers,"encourage"referrals?"
Unfair$Advantage$
"
What"makes"us"uniquely"
different?"
What"is"it"about"our"product"
or"business"that"can’t"be"
easily"copied"or"bought?"
"
Key$Resources$&$
Partners$
"
What"are"the"cri[cal"
internal"and"external"
resources"we"need"to"
deliver"the"solu[on"to"the"
customer?"
$
Revenue/Business$Value$
$
What"is"the"business"value"of"delivering"the"product/service/capability?"(E.g.,"
drive"revenue,"save"money,"increase"CSAT,"compe[[ve"differen[ator,"market"
posi[oning,"etc.)"
Cost$Structure$
$
What"are"most"important"costs"inherent"in"our"product"model?"
Which"Key"Resources"are"most"expensive?"
Which"key"ac[vi[es"are"most"expensive"–"product"development,"marke[ng,"
customer"support?"
MARKET/CUSTOMER$ PRODUCT/BUSINESS$
Product$CanvasTM$

@shardulmehta"
1.  Quickly"sketched"out"product"vision/strategy"
2.  Decomposed"product"idea"into"cri[cal"learning"milestones"
meant"to"answer"the"most"important"ques[ons"in"my"
product"strategy"
–  How"does"our"target"customer"describe"the"problem?"
–  How"are"they"solving"it"today?"
–  Why"is"that"solu[on"not"working"for"them?"In"other"words,"why"is"the"
problem"s[ll"a"pain"for"them?"
–  How"can"we"know"before"we"invest"a"lot"in"development,"sales"and"
marke[ng,"that"the"solu[on"we’re"thinking"of"building"really"solves"
the"problem?"
–  How"quickly"can"we"get"our"ﬁrst"customer?"
–  What"are"the"musthave"features"we"need"to"have"in"our"goto
market"product?"
17"

@shardulmehta"
1.  Quickly"sketched"out"my"product"vision/strategy"
2.  Decomposed"product"idea"into"cri[cal"learning"milestones"
meant"to"answer"the"most"important"ques[ons"in"my"
product"strategy"
3.  Figured"out"the"least"amount"of"work"needed"to"be"done"to"
maximize"learning"for"each"milestone"
4.  Broke"down"the"investment"need"into"these"milestones,"
showing"how"ROI"could"be"tangibly"achieved"based"on"
measurable"results"
18"

@shardulmehta"
Customer$learning$driven$investment$strategy$
19"
Customer/
Problem"Fit"
Problem/
Solu[on"Fit"
Minimum"
Viable"
Product"
Minimum"
Sellable"
Product"
Goal$ Validate"customer"
and"problem"
hypotheses"
Validate"solu[on"
hypothesis"
Validate"product" Gotomarket"
Chief$
Ac4vity$
Customer"
interviews"
Customer"interviews"
with"mockup"
Build"and"deliver"MVP"to"
early"customers"
Gotomarket"
Investment$
Needed$
$0"–"just"[me" $0"or"small"$"to"build"
mockup"
$$"to"build"MVP" $$"to"build"MSP"
ROI$ Cri4cal$learning$
about$the$target$
customer’s$pain$
1. Cri4cal$learning$
about$whether$the$
solu4on$resonates$
with$customers$
2. Early$customers$
willing$to$use$MVP$
3. MVP$deﬁni4on$
1. Real$product$delivered$
to$customers$
2. “Earlyvangelists”$to$
help$deﬁne$gohtoh
market$and$inform$
product$roadmap$
3. Revenue$(possibly)$
Revenue$

@shardulmehta"
Beneﬁts$&$ROI$through$produc4on$availability$
20"
Product$1$“So[$Launch”$ Product$2$“Beta”$
Approach$ Tradi4onal$Approach$ Bootstrapped$Approach$
(Adapted$Lean$Startup$Approach)$
Solu4on$
Valida4on$
•  Time"to"obtain"="6"months"
•  Cost"="$171,000"
•  Time"to"obtain"="2"months"(1/3rd'less)'
•  Cost"="$11,000"(94%'less)'
Customers$ •  14"customers"in"ﬁrst"3"months"
a0er"sou"launch"
•  5"MVP"customers"2"months"prior"to"MVP"
availability"
•  14"Beta"customers"1"month"prior"to"Beta"
availability"
Investment$
(and$Product$
Valida4on)$
$250,000"over"10"months"
78"dedicated"people"
$85,000"over"6"months"
$20k"for"demo"+"technical"proofofconcept"
+"$50k"for"MVP"
+"$15k"for"Beta"
34"dedicated"people"
!'66%'less'$’s,'60%'of'the'<me,'50%'less'
people'
Rela4ve$Product$
Complexity$
O(1)" O(n^2)"

@shardulmehta"
Benefits$&$ROI$through$Problem/Solu4on$Fit$
21"
Product$1$ Product$2$
•  $190K"invested"over"7"months"
prior"to"“sou”"launch"
•  78"dedicated"people"
•  $11k"invested"over"~2"months"
(first"two"milestones)"
•  3"dedicated"people"
•  “Guessed”"at"Problem"
•  “Guessed”"at"Solu[on"defini[on"
•  “Guessed”"at"Target"Customers"
•  In'2Bmonths'prior'to'launch'spent'
~700'hrs'of'crossBdepartmental'
work'involving'150+'product'fixes'
•  Solu.on"Valida.on"done"1"month"
before"launch"!"cost"="$171,000"
RESULTS$ RESULTS$
!  PROBLEM$VALIDATION$""based"on"
direct"customer"feedback"
!  SOLUTION$VALIDATION$
#  Technical"risk"valida[on"
#  Customer"valida[on"of"solu[on"
approach"
!  CUSTOMER$VALIDATION$""MVP"
customers"signed"up!"
ROI:$6.4%$of$cost$of$Product$1$valida4on$in$less$than$
1/3$of$the$4me$with$40%$less$people$resources$
Product$Risks$
Mi4gated$

@shardulmehta"
Poten4al$early$customers$
“Alpha”$
(CohInnovators)$
“Beta”$ Other$Early$Adopters$ Not$
(“Early$Majority”)$
•  High"sense"of"urgency:"
“I"need"it"now!”"
•  Problem"domain"SME"
•  “Gets”"vision"of"solu[on"
•  Willing"to"cotest"
•  Urgent,"but"not"alpha"
•  Unwilling"to"test"at"
early"stage"
•  Expressed"high"
interest,"but"needs"
more"baked"out"
solu[on"
•  May"need"help"
evolving"from"current"
process"
•  Some"pain,"but"not"
an"urgent"problem"
to"solve"
•  Married"to"current"
process"
•  Customer"1"
•  Customer"2"
•  Customer"3"
•  Customer"4"
•  Customer"5"
•  Customer"6"
•  Customer"7"
•  Customer"8"
•  Customer"9"
•  Customer"10"
•  Customer"11"
22"
Help$define$and$build$
MVP$
Help$refine$MVP$ Help$define$MSP$
Create$“Earlyvangelists”$

@shardulmehta"
Benefits$
•  Informed"minibusiness"cases"at"each"milestone"instead"of"massive"
assump[ve"based"one"upfront"
–  Quicker"and"easier"to"create"
–  Each"stage"informed"by"learnings"from"previous"stage"
•  Marketinformed"product"strategy"
•  Customerdriven,"defensible"product"roadmap"
–  Customer"insights"defined"MVP"vs."MSP"vs."roadmap"vs."nicetohave"
•  Focused"product"development"effort"
–  Fend"off"internal"“arbitrary”"new"feature"requests"
•  “Coinnova[on”"approach"with"customers"created"“earlyvangelists”"
–  Leveraging"to"create"market"momentum"for"broader"launch"
•  Easier"to"garner,"maintain"and"accelerate"stakeholder"buyin:"
–  Clear"milestonebased"investment"plan"with"ROI"to"be"gained"at"each"phase"
–  Smaller"con[nual"investments"easier"to"digest"and"support"than"large"upfront"one"
–  Each"investment"stage"grounded"in"real"customer"data,"increasing"confidence"to"
persevere"
–  Stakeholders"felt"involved"in"the"process"
23"

@shardulmehta"
Summary$
•  Use"customer"learning"to"drive"our"product"development"
•  Less"assump[ve"and"more"empirically"based"investment"asks"
•  Con[nuous"tangible"ROI"throughout"the"process"
•  Less"documenta[on,"slideware,"overhead"
•  Faster"and"more"costeﬀec[ve"
•  Bring"stakeholders"along"
24"

@shardulmehta"
A$Roadmap$For$Launching$A$New$Product$
25"
Avoid"Shiny"Object"Syndrome"and"
Bloated"Innova.on"Processes"
Want"to"increase"your"odds"of"building"a"successful"
souware"product?"Then"it’s"[me"to"skip"all"the"fluff"
that"masquerades"as"gezng"product"done"–"big"
requirements"docs,"slideware,"fancy"graphs,"
overblown"GANTT"charts"–"and"actually"build"the"real"
thing"and"get"it"to"customers."
Available$for$prehorder$at$
hop://streetsmartproductmanager.com$
Get"the"first"3"chapters"now."
Need"product"help?"Schedule".me"with"me"at"
hop://sohelpful.me/shardulmehta."It’s"FREE!"

A Real-World, Practice Guide For Launching a Great Product - Modev MVP Conference 5-18-2015

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A Real-World, Practice Guide For Launching a Great Product - Modev MVP Conference 5-18-2015