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Product planning > L7, Business development > Flashcards

L7, Business development Flashcards

1
Q

what is included in a business model?

A
  1. value proposition
  2. cusotme relationship
  3. customer segments
  4. revenue streams
  5. channels
  6. key resources
  7. cost structure
  8. key partners
  9. key activities
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2
Q

Describe the traditional business development process

A
  1. concept
  2. product development
  3. alpha/beta test
  4. Launch

— But this assumes that both the customer problem and the product features are known.

— Works well for incremental development projects targeting existing customers

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3
Q

What is the problem with the traditional business development process?

A

— More innovation projects fail from lack of customers than from a failure of product development

why?
—> we have no process to manage customer development

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4
Q

How could we manage customer development management?

A

The traditional product development

+

Customer development
1. Customer discovery
2. customer validation
(iterative)
3. customer creation
4. company building
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5
Q

what is a company?

A

a business organization that sells a product or service in exchange for revenue and profit

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6
Q

how are companies organized?

A

companies are organized around business models

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7
Q

What is the difficulty with early stage innovation projects?

A
  1. customer problem is unknown
  2. product features are unknown

—> requires search

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8
Q

Questions to ask while analyzing customer segments?

A

Questions:

  1. Wo are the customers?
  2. Are the customer different from the user?
  3. Economic buyer?
  4. Technical buyer?
  5. Influencer?
  6. saboteur?
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9
Q

What is meant by jobs to be done when analyzing customer segments?

A 
1. Functional jobs
What functional job is your customer trying to get done?
—> what does t have to perform?
—> complete a specific task?
—> solve a specific problem?
2. Social jobs
What social jobs is your customer trying to get done?
—> trying to look good?
—> gain power?
—> gain status?
3. Emotional jobs
What emotional jobs is your customer trying to get done?
—> esthetics?
—> feel good?
—> security
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10
Q

What is meant by customer pains when analyzing customer segments?

A 
1. "Cost"
What does your customer find too costly?
—> takes a lot of time
—> costs
—> effort
  1. Feel bad
    What makes your customer feel bad?
    —> frustrations
    —> annoysnces
3. Under-performing current solutions
How are the current solutions under-performing for your customer?
—> lack of features
—> performance
—> malfunction
4. Negative social consequences
What negative social consequences does your customer encounter to fear?
—> loss of face
—> loss of power
—> loss of trust
—>loss of status
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11
Q

What is meant by customer gains when analyzing customer segments?

A 
1. Savings
Which savings would make your customer happy?
—> time?
—> money?
—> effort?
2. Easier
What would make your customer 's job or life easier?
—> flatter learning curve?
—> more services?
—> lower cost of ownership
3. Positive social consequences
What positive social consequences does your customer desire?
—> look good
—> increase in power
—> increase in status
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12
Q

which three parameters could be analyzed in the customer segment part of the business model?

A
  1. Customer jobs
  2. Pains
  3. Gains

A customer persona could be useful

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13
Q

Questions to answer with regards to value proposition in the business model?

A
  1. What are you building?
  2. What are your services and products?
  3. How do they create value for the different customer segments?
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14
Q

What is meant by pain relievers when analyzing value proposition?

A

Can your service:

  1. produce sevings?
  2. Make your customers feel better?
  3. Put an end to difficulties?
  4. Wipe out negative social consequences?
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15
Q

What is meant by gain creators when analyzing value proposition?

A

Can the product:

  1. Outperform current solutions
  2. produce outcomes that go beyond their expectations
  3. make your customer’s job or life easier
  4. create positive social consequences?
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16
Q

Describe market fit?

A

Market fit is to:
1. create products and services that solves the customer jobs

  1. Have gain creators that create the gains the customer wants
  2. Have the pain reliever that a create reduce the pains of the customer
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17
Q

What questions should be asked with regards to channels?

A 
1. How do you want your product to get to customers?
—> yourself?
—> through someone else?
—> retail?
—> wholesale?
—> bundled with other goods or services?
2. How does your customer want to buy your product from your channel?
—> the same day?
—> delivered and installed
—> downloads
—> bundled with there products
—> as a service
—> etc.
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18
Q

What questions should be asked with regards to customer relationships?

A

What relationship do you have with your customers?

  1. personal assistance
  2. dedicated personal assistance
  3. self service
  4. automated services
  5. communities
  6. co-creation
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19
Q

What questions should be asked with regards to revenue streams?

A 
How do you make money?
— Revenue model + price
—> asset sales
—> subscriptions
—> freemium
—> renting
—> licensing
—> intermediation fee
—> advertising sales
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20
Q

what is asset sale?

A

Sale of ownership

—> right to a physical product

21
Q

describe subscription fee?

A

Fee for continuous access to a service

e.g. mobile subscription

22
Q

what is usage fee?

A 
— Usage fee=pay-per-use
— Fee is proportional to the usage of the service
—> cab
—> bus card
—> pre-paid phonecards
23
Q

Describe freemium

A

Use the product for free: upsell/concersion
—> pay for premium
—> e.g. Spotify, dropbox, linked in, skype etc.

24
Q

Describe payment through advertising

A

Fee paid by brands and companies to get in front of potential customers
—> facebook
—> youtube

25
Q

Describe renting?

A

Fee for temporary access to a good or service

—>hertz

26
Q

Intermediation fee?

A

Often found in marketplaces of various types, a fee for bringing two or more parties involved in a transaction

27
Q

Describe licensing!

A

Fee for use of some IP
—> microsoft
—> CATIA
—> adobe

28
Q

Questions to ask while analyzing key activities?

A

What activities must the business perform well?

29
Q

Questions to ask while analyzing ke resources?

A

What assets are critical for the business?

30
Q

Questions to ask while analyzing Key partnership?

A

Who are your key partners and suppliers

31
Q

Questions to ask while analyzing cost structure?

A

What are the cost of operating the business model?

32
Q

Collaboration between product AND customer development?

A

Insights, experiments and hypotheses created and found during the customer development phase goes as input to the product development process

The output of the product development process, such as data, feedback, insights goes back as input to the customer development process

And this should be made in an iterative manner

33
Q

What are the key ideas of customer development?

A
  1. parallell process to product development (agile)
  2. Emphasis on iterative learning and discovery before execution
  3. Must be done by a small team including the CEO/project leader
  4. There are no facts inside, so get out of the building
34
Q

Describe customer discovery

A
  1. Articulate and test your business model hypothesis
  2. No selling, just listening
  3. Must be done by CEO/ project manager
35
Q

What should you test when discovering customers?

A
  1. test customer problem hypothesis
  2. Test solution hypothesis
  3. Test product hypothesis
36
Q

What questions are appropriate when testing the customer problem hypothesis?

A
  1. Do you have this problem?
  2. Tell me about it, how do you solve it today?
  3. does something like this solve your problem?

Listen carefully and focus on learning NOT selling.

37
Q

What people are useful to talk to?

A
  1. people who has a problem
  2. people who understand they have a problem
  3. People who actively search for a solution
  4. People who cobbled together an interim/temporary solution
  5. People who committed funds for a solution

Where the importance are increasing by numbers

38
Q

In what way should the business model be revised?

A

The business model hypothesis and product specification should both be revised jointly by customer development and product development teams.

39
Q

What questions are appropriate when testing the solution hypothesis?

A
  1. We believe you have this important problem?
    — listen (check)
  2. Show a demo on how your product solves the problem. Focusing on a few key features

Include workflow story: Life before the project —> life afterwards

  1. what would this solution need to have for you to purchase it?
    — listen, ask follow up questions
40
Q

What questions are appropriate when testing the PRODUCT hypothesis?

A 
1. Positioning
—> how do hey describe the product?
2. Product category
—> new, existing, resegmentated?
3. Competitors?
4. Features needed for first version
5. Preferred revenue model
6. pricing
7. additional service needs
8. marketing
—> how do they find this type of product?
9. Purchasing process
10. Who has a budget?
41
Q

What are the exit criteria from customer discovery?

A

1.Consistent answers from enough people

  1. What are your customers top problems?
    —> how much will they pay to solve them
  2. Does your product concept solv them?
    —> do your customers agree?
    —> how much will they pay for it?
  3. Can you draw a day-in-the-life of a customer?
    —> before and after
  4. Can you draw the organizational charts of users, buyers and channels?
42
Q

Describe customer validation

A
  1. Develop and sell Minimal viable product (MVP) to passionate earlyvangelists
  2. Validate a repeatable sales roadmap
  3. Verify the business model
43
Q

What is a minimal viable product?

A

Based on your insight from customer discovery, sell the smallest feature set customers are willing to pay for

44
Q

Why a minimal viable product?

A
  1. Reduced wasted engineering hours
  2. Get something into the hands of the earlyangelists as soon as possible
    —> maximize learnings
45
Q

Exit criteria for customer validation?

A
  1. Do you have a proven sales roadmap?
    —> organization chart?
    —> influence map?
    —>
  2. Do you have a set of orders (in form of sales) of the product validating the roadmap?
  3. Is the business model scalable?
    —> if yes, start executing!
    —> if no? PIVOT!
46
Q

What is meant by pivot between customer validation and customer discovery?

A

— Pivot or iteration is the heart of customer development

— It’s important to change without crisis

— The idea of successful startups change directions but stay grounded in what they learnt

Continue to adapt the business model until you can prove it works

47
Q

Describe customer creation?

A
  1. Grow customers from few to many
  2. Comes after proof of sakes
  3. Inject MONEY for scale
48
Q

Describe company building!

A
  1. Re-build company’s organization and management
  2. Developmentcentric
    —> mission-centric
    —> process-centric

Product planning (22 decks)

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