Cauvin

The “Science” of Lean Startup Lean startup practitioners embrace the scientific method, seeking the "truth" about what business model and strategy will lead to product success. We do so by: Formulating hypotheses Crafting and running experiments to test them Learning from the experiments Iteratively feeding our learnings back into revised hypotheses Sounds pretty scientific, at least in spirit, doesn't it? Yet this process actually neglects a key ingredient in the scientists' mode of operation. To identify what’s missing, let’s examine “customer development”. Customer Development Steve Blank is one of the pioneers of the lean startup movement. He introduced into the lean startup lexicon the term “customer development”. Customer development consists of sessions and interactions with customers to test hypotheses. For example, a product manager might interview a prospect, asking if she agrees with the product manager’s hypotheses about the problems she faces or the ...

The Context Over the years, various product management and development methods have come into vogue, most notably agile and lean startup methods. Agile methods addressed requirements , architecture, and development risks using frequent iterations. Lean startup methods take it a step further, iterating on the entire product strategy, including the unique value proposition , the target market, revenue and cost structure, and marketing and sales channels. Recently, you may have heard more and more chatter about "design thinking". I certainly have. What is it, and how does it differ from agile and lean startup methods? How can companies leverage it to innovate and develop better products? The Definition If you do some web searches, you'll notice a lot of vague references to design thinking and a diversity of views about what it is. After exploring some definitions, I'll borrow from various descriptions and accounts of design thinking to form what I believe is a ...

The Story When Apple unveiled its iPod digital music player back in October 2001, I dismissed it as a  parity product . I already owned the Cowon iAUDIO CW100 MP3 player, loaded with my favorite tunes. There was Apple, generating great hype over the iPod as if it were a breakthrough product. The idea of a portable digital music player was nothing new. The first mass-produced MP3 players came out in 1998. In late 2001, the concept may have been new to a lot of Apple customers, but it wasn't new to me. I proudly showed my MP3 player to friends when they gushed about the iPod. Thus Apple's iPod was not an innovative product in and of itself. Years later, however, I realized the significance of ecosystem of which the iPod was a part. Apple had released iTunes (with technology purchased from  SoundJam MP ) and created the iTunes Store for finding and downloading music. Unlike Napster , it was a safe and legal way of distributing and acquiring music. The prior way of playing...

Why You Need a Competitive Mindshare Map The core of your product strategy lies in your product's positioning and unique value proposition (UVP). It should drive nearly all product decisions, including the roadmap, feature prioritization, marketing messages, and sales approaches. A sound unique value proposition depends on: Value . It should convey the value of your product. Value is rooted in the problems your product solves. Competitive landscape . It should differentiate your product from available alternatives. Perception . It should acknowledge perceived weaknesses of the product and perceived strengths of competing products. Surprisingly, most companies take the value of their products for granted and don't bother to explicitly formulate a unique value proposition. For others, determining a unique value proposition is haphazard, with little or no process guiding the decision. At best, they focus on the value and pay insufficient attention to perceptions a...

Now that you've had a largely buzzword-free introduction to lean startup methods , you may be interested in a bit deeper understanding of the concepts and terminology.  Lean startup methods incorporate scientific methods and principles of agile development to help practitioners learn markets quickly and reliably and deliver successful products.  But lean startup enthusiasts and practitioners throw around a lot of terminology and concepts that may seem alien or not particularly meaningful to you. Let's examine and demystify the basic lean startup terminology with a rich and concise conceptual model . To view the model of lean startup concepts, click the image below: Lean startup concepts fall within four different clusters: hypotheses, learning, market, and product. Hypotheses Forming hypotheses is a component of lean startup methods. The business model represents the strategy driving more tactical product decisions, and it consists of a set of hypothes...

You've probably heard a lot of buzz about "lean startups".  You may wonder if it's mere hype, applies just to tiny bootstrap ventures, or if adopting some lean startup methods might actually benefit your company. One of the top problems companies face as they make product decisions is that the process of learning the market, and learning what makes the product successful, is slow and unreliable . Sometimes they suffer analysis paralysis, swerve from one big deal to the next, allow conventional industry wisdom to stifle innovation, or squabble over uninformed personal opinions. In other cases, they make decisions quickly but fail to learn from their inevitable mistakes until after they've invested exorbitant amounts of time and money. If you find that your organization is facing this problem, it's worthwhile to consider lean startup methods. Just as scientists use the scientific method to learn how the universe works, your product team can apply ...

In the last blog entry, we reviewed the  four problems that companies face, or are trying to overcome, as they make product decisions .  Now we'll look at the ways that most companies make their product decisions. Companies that develop, market, and sell products and solutions make strategic and ongoing tactical decisions.  They decide what features to include in their products, what messages they will use to communicate the value of their products, what marketing tactics they will use, what prospective customers they will target, and many day-to-day choices. Whether or not these decisions are deliberate or ad hoc, most companies use some combination of the following ways of making product decisions. (A downloadable "map" that summarizes the product decision landscape is included at the end of this article.) Customer Wants Product decisions based on feature requests, focus groups, and what prospects and customers say they want. Companies are selling products to ...

Introduction Why is product management important? Whether or not they employ product managers, companies make daily decisions about how to develop, market, and sell their products. As they make these decisions, companies typically face - or are trying to overcome - four general problems. The Problems   Products don't provide value to prospective buyers and users. Products that don't deliver value generally don't succeed in the marketplace. Value comes from solving problems that prospective customers face. "Cool" technologies and feature-laden products, if they don't help customers solve or avoid compelling problems, don't provide value that lead to usage or sales. Effective product management identifies a set of prospect problems that drive an overarching value proposition, and it empowers the entire product team to deliver and communicate that value.   Developers don't know what to build, and why . Developing ...

One invaluable tool that product managers use to understand markets is the prospect interview .  We identify prospective buyers and users who may share a common set of problems, and we conduct one-on-one interviews with them to probe their situations and dig deep into the challenges they face.  The situations and challenges inform our product strategy and decisions. If you're a company executive, you may be reluctant to empower your product managers to conduct interviews with prospects, as what happens during these interviews could potentially jeopardize a future sale.  Even if you have confidence in your product managers not to jeopardize a sale, you may view prospect interviews as a dubious way of gaining market understanding. Rest assured that prospect interviews will tend to foster trust and enhance future sales possibilities while providing a richer understanding of the market.  But only if product managers conduct them properly and avoid certain pitfalls. ...

Recently, I've noticed a number of product managers on social channels claim that product managers "own" the products they manage.  On the surface, this claim seems rather innocuous and uncontroversial.  But the claim bothers me, for several reasons. Let's examine why anyone would make such a claim.  I can think of a few reasons.  (I'll get to the notion of "product owner" in agile development later.) First, a single point of accountability simplifies how we conceptualize the product management role.  It's understandable that product managers are tempted to find a simple definition of product management.  The responsibilities of the role vary greatly across different companies, and few people can articulate concisely what a product manager is or does.  So it's nice to boil it down to ownership of the product.  But what does it really mean to own the product? Second, many folks in the product management community are familiar with the deba...

Does your company suffer from product paralysis? Product paralysis occurs when progress halts on improving or innovating a product. At some point, you've probably experienced: A product team can't agree on major product decisions, so they concentrate on minor bug fixes and enhancements that have little or no market impact. Bold product decisions are made (often by members of the team that just happen to wield the most influence at the time), but the decisions come under fire and are put on hold shortly thereafter. Team members don't buy into product decisions, so they undermine them, stall their execution, or just aren't motivated to be productive in executing them. The most effective product managers - to the extent that company executives empower them to do so - employ three approaches to prevent product paralysis: Base product decisions on market understanding and marketing principles . Teams will not buy in to major product decisions unless they can make a compe...

It's common for people at all levels of a company, and in all company departments, to comment on the usability of the product or company web site and give suggestions on how to improve it. Why? Here's a clue. I wrote in late 2005 that: Most people, including executives, consider much of marketing to be common sense. We're all consumers, so we all know how we respond to products, names, logos, advertisements, and PR, right? So we're all experts on what works in marketing, no? Wrong. See the original blog entry to learn why marketing is not common sense . The same principle applies to usability. In playing the role of consumer in many aspects of our lives, we use products and web sites, and we know which ones are usable - and perhaps even what makes them usable - right? Wrong. Just as marketing isn't common sense, usability isn't common sense, and for the same reasons. Nonetheless, debates over usability and strategies for redesign can get quite contentio...

Seth Godin writes a long entry in his blog about naming products and companies. First, he reiterates his opinion that descriptive names make poor brand names: "It quickly became clear, though, that descriptive names were too generic, so the goal was to coin a defensible word that could acquire secondary meaning and that you could own for the ages. That's why 'Jet Blue' is a much better name than 'Southwest' and why 'Starbucks' is so much better than 'Dunkin Donuts'." "The entire point of 'secondary meaning' is that the first meaning doesn't matter at all (especially since you picked a name with no meaning to begin with). Over time, a surprisingly short time, your unique word, especially if it sounds right, will soon be the one and only word." Then, he lays out new guidelines: "Find a name that came up with close to zero Google matches." "The structure of the words, the way they sound, the memes t...