Product development life cycle slides class 2

LIFESTYLE BUSINESS ACCELERATOR 90 Day Course | Class 2 Product Development Life Cycle

LEAN PRODUCT DEVELOPMENT LIFE CYCLE IDEAS LEARN

BUILD

DATA

PRODUCT

MEASURE

LEAN PRODUCT DEVELOPMENT LIFE CYCLE RESEARCH

IDEAS

LEARN

BUILD TARGET TO SPIN AT YOUR MAXIMUM SPEED

DATA

PRODUCT

MEASURE

TIPS FOR MAXIMIZING SPEED Fail Fast

Talk directly to end users

Use the Business Model Canvas (High Level Overview of Business Plan)

TIPS CONT. Minimum Viable Product (MVP) A minimum viable product (MVP) is the the most pared down version of a product that can still be released. An MVP has three key characteristics:

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It has enough value that people are willing to use it or buy it initially It demonstrates enough future benefit to retain early adopters It provides a feedback loop to guide future development

TIPS CONT. Primary Research Talk to potential customers, competitors, suppliers and industry experts ● ● ● ●

Interviews (either by telephone or face-to-face) Surveys (online or by mail) Questionnaires (online or by mail) Focus groups gathering a sampling of potential clients or customers and getting their direct feedback

TIPS CONT. Secondary Research Go online and find data in regards to your market, competition and industry.

Next Class will focus on this

BUSINESS MODEL CANVAS OVERVIEW

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4

3

8 7

9 5

1 6

EXAMPLE 1 PROBLEM

SOLUTION

UNIQUE VALUE PROPOSITION

UNFAIR ADVANTAGE

CUSTOMER SEGMENTS

The problem to find an unusual tour with the guide in any country

Boat tours

Just one click to Go On an Amazing Adventure

A lot of local guides ready to work with us

Young Travelers

No specific tours in most of the countries and non-tourist countries

Adventure Tours

Families

Tours with Local Guides

Extreme Fans

KEY METRICS Existing Alternatives: Hotel

C Regs DAU ARPPU LTV

High-level Concept: AirBnB for adventure tours

CHANNELS Mass Media AdWords Blog Social Networks Partners

Early Adopters: People passionate about traveling Young and Brave Take Risks Confident

COST STRUCTURE Salaries Marketing Office Equipment

REVENUE STREAMS Paid Customer Advertising

EXAMPLE 2 PROBLEM

SOLUTION

UNIQUE VALUE PROPOSITION

UNFAIR ADVANTAGE

CUSTOMER SEGMENTS

Sharing lots of photos/videos is time consuming.

Instant, no updated sharing

The Fastest Way to Share Your Photos and Videos

Community

Parents (creators)

Don’t know how to share (convert) videos Afraid they will lose their media because they aren’t backed up Existing Alternatives Email, Flikr Pro, SmugMug, Apple, MobileMe, FB

Family & friends (viewers)

Automatic video transcoding Cloud backups of originals.

KEY METRICS A- Signup A- Created first gallery R-Shared an album and/or video R-Invited family & friends R-Paid after trial

COST STRUCTURE Hosting costs - Heroku (currently ($0) People costs - 40 hrs * $65/hr = $10k mo

High-level Concept: Photo and video sharing without the uploading

CHANNELS Daycare Birthday Parties AdWords Facebook Mommy Bloggers Word of Mouth

REVENUE STREAMS 30-day trial then $49/yr

CUSTOMER & BENEFICIARY SEGMENTS Which customer segments are you serving (is it one or many?)

What are the characteristics of those segments?

What will make them choose you vs. alternatives?

PROBLEM

What is the main problem you are solving for each segment?

FINDING YOUR WHY

WHAT IS VALUE PROPOSITION? A value proposition is a promise of value to be delivered. It’s the primary reason WHY a prospect should buy from you.

A clear statement that: Explains how your product solves customers’ problems or improves their situation (relevancy) Delivers specific benefits (quantified value) Tells the ideal customer why they should buy from you and not from the competition (unique differentiation).

Who are you serving and why?

Why should your customers choose you vs. alternative?

What is unique about your value proposition?

What is the real problem you want to solve?

The Empowerment Project

VALUE PROPOSITION VS MISSION STATEMENT A mission statement often define “what” a company is & does: Kiva: We are a non-profit organization with a mission to connect people through lending to alleviate poverty.

Google: To organize the world’s information and make it universally accessible and useful.

Value proposition is created from the customer’s perspective rather than the company’s.

A value proposition defines the reason why a customer would buy your product or services in exchange for some cost or sacrifice.

JetBlue (Their Why): We bring humanity back to air travel. We do this by offering what we believe to be the best domestic coach product, and giving our customers more value with their purchase. The elements of our value proposition include… high quality service and products and low operating costs.

Why We Do What We Do

We envision a world where all peopleeven thE most remote areas of the globe hold the power to create opportunity for themselves and others We believe providing safe, affordable access to capital to those in need helps people create better lives for themselves and their families.

We are a non-profit organization with a mission to connect people through lending to alleviate poverty.

Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world. Learn more about how it works.

Since Kiva was founded in 2005

We Work With:

1,256,460 Kiva Lenders $667,402,525 in Loans 98.79% Repayment Rate

290 Field Partners 450 Volunteers Around the World 85 Different Countries

IN CLASS

Fill Out Lean Canvas Model

HOMEWORK

1

2

3

Talk to min 3 potential customers for each segment

Talk to minimum 3 competitors

Fill out Lean Canvas Model at least 2 more times after interviews