Hanken Svenska handelshögskolan / Hanken School of Economics,
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1 Hanken Svenska handelshögskolan / Hanken School of Economics,
2 SW product management in a startup Juhana Peltonen, D.Sc. (Tech.) Assistant Professor Erling-Persson Centre for Entrepreneurship Hanken School of Economics Hanken Svenska handelshögskolan / Hanken School of Economics,
3 Agenda» How to match fast and iterative business development activities with agile product development in a startup context (~30 mins)» Design Thinking: Learning by doing (~40 mins)» Essay (~20 mins)
4 Product development: The traditional way Laitoksen nimi 11/9/2017 4
5 Product development: The traditional way Laitoksen nimi 11/9/ Royce, Winston (1970), "Managing the Development of Large Software Systems"
6 Product development: The traditional way Create positioning and marketing materials Hire PR agency and Sales VP Launch event, create demand and branding Royce, Winston (1970), "Managing the Development of Large Software Systems"
7 In other words: 2: Success / fail? 1: Burn through all funding for product development
8 The agile approach in software engineering
9 Product positioning the traditional way Product Design, technology, quality, packaging, branding, accessories, warranties, aftersales, services Price Strategies, tactics, rebates to distributors, discounts, payment terms. Place Distribution channels, distribution area, point of sale, warehouses, means of transport Marketing mix Promotion Building awareness, advertising, sales force, public relations, free advertising McCarthy EJ. (1960) Basic Marketing: A Managerial Approach. + 3P s = Process, People, and Physical Environment
10 What if? Agile customer development? Successful venture Idea Agile product development Fast failure
11 Content of the day
12 How fail or succeed faster and cheaper? Lean startup Learn idea Build MVP Data Measure Code Ries, Erik. The Lean Startup. 2012
13 How fail or succeed faster and cheaper? Customer Development Product development Customer discovery STOP Customer validation STOP Customer creation STOP Company building What are the customers top problems? Does your product concept solve them? How much will customers pay? Focus on earlyvangelists Do you understand the customers buying process? Does you financial model make sense? Do you have a set of orders? Crossing the chasm (from early adopters to the early majority) Existing market / Resegmented market / New market Professionalizing management Does the company have a clear mission? Growth and sales plans match the market? Blank, Dorf. The Startup Owner s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
14 Customer discovery 1. State your business model hypotheses 2. Get out of the building to test the problem: Do people care? 3. Get out of the building : Test the product solution 4. Verify the business model: Pivot or proceed Blank, Dorf. The Startup Owner s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
15 The business model canvas: A useful way to organize hypos. A. Osterwalder, 2008
16 The business model canvas: A useful way to organize hypos. Test & revise Test & revise. Scalable BM? Ver 0.1 Ver 0.2 Ver 0.3
17 Testing hypotheses on market size and growth A market is the set of actual and potential buyers of a product/service. Thus, the size of a market depends on the number of people who 1) exhibit the need for the product/service 2) have resources to engage in exchange 3) are willing to offer these resources in exchange for what they want You should have some initial estimates of market size, in terms of number of customers, the number of units and the total sales in euros. Total addressable (/available) market (TAM), vs. served available market (SAM), vs. target market.
18 Earlyvangelists - the most important customers for startups? Has aquired a budget Assembled a solution out of parts Been actively looking for a solution Is aware of having a problem Has a problem Blank, Dorf. The Startup Owner s Manual: The Step-By-Step Guide for Building a Great Company. (2012)
19 Minimum Viable Product (MVP)» A strategy to maximize customer learning in the shortest possible time using the smallest possible engineering resources.» Has the minimun features that still solves the core customer problem and demonstrates the value of the product» Not just a prototype! Oculus rift prototype Source: Endgadget
20
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