designing successful products
TRANSCRIPT
Stand
Designing Successful Products
agenda
2
i. Product - Market Fit
ii. Understanding Markets - KJ image
iii. Under served feature - s curve analysis
iv. Must be features - KANO
v. Preferred features - Max Diff
vi. How much of a feature - Conjoint
why products fail?
3
Target Customer
Dave Olsen’s [the lean product playbook]
Under Served Needs
Target Customer
Value Proposition
Under Served Needs
Target Customer
Features
Under Served Needs
Target Customer
UX
Features
Under Served Needs
Target Customer
Market
Product
A 2004 Study by the Product Development & Management
Association found that failure rates of new products range
from 35% for healthcare to 49% for consumer goods
Product - Market Fit Marc Andreessen
ensuring success
4
Under Served Feature
Must Be Features
Preferred Features
Complete Product
agenda
5
i. Product - Market Fit
ii. Understanding Markets - KJ image
iii. Under served feature - s curve analysis
iv. Must be features - KANO
v. Preferred features - Max Diff
vi. How much of a feature - Conjoint
6
separation
example
7
Under served Need
Portable
Instant-on
Long Battery life
Intuitive
Inexpensive
Light Tasks
social networks
Product LeadingApproach
Market LeadingApproach
listen vs look
ASK the Customer
OBSERVE the Customer
customer driveninnovation
outcome driveninnovation
customers are not very good sources of solutions, but
they are very good at determining if a product solves their problem
example
9
swim with the fishes
Immerse & develop a deep understanding of user environment
innovation opportunities
11
Value Creation
Design Make Sell
Delivery
Any change in Value Creation, Delivery OR Customer
can lead to innovation
example
12
© alpha2infinity
VOC sample size
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80% needs 16 customers
Abbie Griffin & John Hauser, “the voice of the customer”, Marketing Science Vol. 12, No, 1, pg 11 (1993)
© alpha2infinity
segmentation
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15 - 20TeachingHospital
Private Hospital
GovernmentHospital
Tier I Hospital
Tier II Hospital
USOrtho 2 1
Cancer 1 2
EUOrtho 1 1
Cancer 1 1
AsiaOrtho 1 1 1
Cancer 1 1
EMEAOrtho 1
Cancer 1
affinity diagram
15
Theme5. Show relationship between groups
and draw conclusion
Theme
1. Agree on the problem / discovery
Theme2. Extract all images from observation &
interactions that describe the issue.
Theme3. Select rich set of images through
several rounds of voting
Theme
4. Group similar images
KJ image, Natural Language Processing
© alpha2infinity
example
16
© alpha2infinity
example
17
200 entrepreneurs
10,000 pages
6 skills
agenda
18
One Killer Feature
Must Be Features
Preferred Features
i. Product - Market Fit
ii. Understanding Markets - KJ image
iii. Under served feature - s curve analysis
iv. Must be features - KANO
v. Preferred features - Max Diff
vi. How much of a feature - Conjoint
customer adoption
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Inn
ova
tor
(2.5
%)
Earl
y A
do
pte
r (1
3.5
%)
Earl
y M
ajo
rity
(34
%)
Late
Maj
ori
ty
(34
%)
Lagg
ard
s (1
6%
)
Observed in 1957 by Bohlen, Beal and Rogers at Iowa State study on purchase patterns of hybrid corn seed by farmers.
time
Cu
sto
me
r P
op
ula
tio
n, %
Tipping Point
s-curve
20
time
Cu
sto
me
r A
do
pti
on
\V
alu
e Value defined as Features
Costincreases over time
Increase in Value drives customer adoption
innovation
I
II
III IV
cell phones
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Phone Call
+ text
+ internet
+ music / movies
+ social media
+ camera
+ GPS
+ Apps
+ Games
+ AI assistant
better mouse trap
22
time
hu
man
e
$0.50 $5.00+
innovation
identify an under served need
photography
23
time
$1,300640 x 48060 KB6 – 7 s
dig
ital
Net
scap
e 1
99
5
1997
symbiotic with emerging trendsbe futuristic but…
innovation strategies
24
time
Mai
n P
aram
ete
r o
f V
alu
e
IIIValue engineering
IOptimizeFeatures
II Add Features
innovator’s edge
25
time
Mu
sic
/ V
olu
me
$
78 RPM
331/3 RPM
pioneer vs settler
Pioneers are explorers, seeking to go where no one had gone before.
After the pioneers come the settlers. They were more interested in safety and security than adventure and excitement.
“Pioneers get slaughtered, while the settlers get rich”
First vs Fast Follow?
‘the 15 min advantage’
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example
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Browser
Think big but take small steps, 15 minutes at a time
OS
agenda
29
One Killer Feature
Must Be Features
Preferred Features
i. Product - Market Fit
ii. Understanding Markets - KJ image
iii. Under served feature - s curve analysis
iv. Must be features - KANO
v. Preferred features - Max Diff
vi. How much of a feature - Conjoint
Delighter(Unknown)
KANO
30
Basic(Unspoken)
Time
What happens
over time??
Performance(Spoken)
Did it
Poorly
Did it
Very
wellIndifferent
example
+
Safe to eat
FlavorfulHealthyFresh
Functionality
Sati
sfac
tio
n
OrganicLocal
-
must be > performance > delighter
agenda
32
One Killer Feature
Must Be Features
Preferred Features
i. Product - Market Fit
ii. Understanding Markets - KJ image
iii. Under served feature - s curve analysis
iv. Must be features - KANO
v. Preferred features - Max Diff
vi. How much of a feature - Conjoint
problem description
1. Location
2. Parking
3. Star Rating
4. Onsite Gym
5. Pet Friendly
6. Kid Friendly
7. Swimming Pool
8. Room Service
9. Spa
10. Complimentary Wi-Fi
11. Complimentary Breakfast
12. Shuttle Service
13. Kitchen
How do we prioritize customer preference from a list of attributes?
max diff results
34
“Innovation is saying no
to 1,000 things.”
> 0.5 Highly Desirable
0.1 – 0.5 Desirable
~ 0 Neutral
< - 0.2 Losers
opportunity recommendation
35
0
2
4
6
8
10
0 2 4 6 8 10
imp
ort
ance
of
feat
ure
to
use
r
satisfaction with current solution
Not Worth it
Opportunity(how much?)
Competitive(= market)
Dave Olsen’s [the lean product playbook]
problem description
How much of a feature should
we provide?
Word Association
Electric Car = ?
conjoint results
Price sensitive > $150
Richness mattersCapacity > 8 cups
in summary
38
One Killer Feature
Must Be Features
Preferred Features
Identify & Minimum
Prioritize &How Much
Deliver on a desirable, non-existing feature in a world class manner
saying no
39
“Innovation is saying no
to 1,000 things.”
thank you