the lean product playbook by dan olsen
TRANSCRIPT
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**
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?*
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*
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*
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*
**
! 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*
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*
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*
Priori7zing*Customer*Needs:*Importance*vs.*Sa7sfac7on*
Impo
rtance*of*U
ser*N
eed*
User*Sa7sfac7on*with*Current*Alterna7ves*
Compe77veMarket*Opportunity*
Low* High*
Low*
High*
Not*Worth*Going*ATer*
Copyright*©*2015*Olsen*Solu7ons*
Customer*Value*
Copyright*©*2015*Olsen*Solu7ons*
Impo
rtance*of*U
ser*N
eed*
User*Sa7sfac7on*with*Current*Alterna7ves*Low* High*
Low*
High*
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*
Copyright*©*2015*Olsen*Solu7ons*
Importance*vs.*Sa7sfac7on**Ask*Users*to*Rate*for*Each*Feature*
Recommended*reading:*�What*Customers*Want�*by*Anthony*Ulwick*
Bad*
Great*
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*
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*
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*
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
Must Have 2
Performance 2
Performance 3
Benefits:
M1A P1A D2A M2A P2A
P3B
Features:
P1B D2B P2B
P3C
P3A
P1C
P1D
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
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*
The*UX*Design*Iceberg*
Copyright*©*2015*Olsen*Solu7ons*
What most people see and react to
What good product people think about
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*
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*
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*
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*
�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*
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*
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*
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*
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*
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*
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*
! 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*
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*
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*
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*
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*&*ebook*! Available*for*preorder*on*Amazon:*bit.ly/leanplaybook*
Questions? @danolsen*olsensolu7ons.com*slideshare.net/dan_o*leanproductplaybook.com**Book:*bit.ly/leanplaybook*****