UNIT II
Entrepreneurial
Product Development
MODULE
2
(DAY 3)
Basic “Lean” concepts

“Lean Startup”: the principles of developing
the minimum viable product (MVP) in a startup
setting, testing with customers, and resisting
scaling until the idea has been validated

“Customer Development”: working with
customers to find the right product and service
as well as the right business model

“Minimum Viable Product (MVP)”: the smallest
possible
thing
a
product
development
organization can build for use in customer
development
Basic “Lean” concepts
• “Product/Market Fit”: when
40%+ of your users will be
deeply disappointed if they can
no longer use your product
 • “Pivot”: change direction
based on new data while staying
grounded in what one’s learned
to date.

New product development in
a startup setting
Hypothesize market problem to be solved.
Hypothesize a solution concept
Pick target market segment worth owning.
Quantify value proposition, find a problem
worth solving.
Choose your target product discovery research
Build a mock-up and/or prototype to illustrate
solution
Product research with buyers/users
Understand your own core competence

New product development in
aTechnology
startup
setting
research
and feasibility study

Validated feasibility of core technology

Define MVP – scope, functionality, design. MVP should be in smallest possible
chunks

Continuously test with customers. The best way to succeed is to involve
customers in every stage of the process

Choose your target Entire market
a. Target segment
b. Early market
c. Potential target customers


Conducting product discovery
research-Research
Techniques
Subject recruitment - The recruitment
questionnaire
can include
information like this: – Demographic information – Technology profile –
e.g. what cell phone they use – Behaviors surrounding the product or
service of interest
Contextual Interview - The conversation is typically recorded. The
interviewer asks open ended questions. Always ask “Why?” or “Why not?”.
report is created that incorporates key insights, detailed notes
Conducting product discovery
research-Research Techniques
 Observation - 2-3 Researchers set up
recording equipment in the target
environment, and observe while the
subject works or plays. Bring out the key
learnings, create a report to record that
session and simplify concepts. Adjust and
fine tune results. Develop buyer and user
personas (of all the people that the
researchers
met,
representing
key
attributes that define them as a group)
Needs, Wants and
Expectations
Come up with a solution For [target end user] Who
wants/needs [compelling reason to use] The [product]
is a [product category] That provides [key benefit].
Unlike [main competitor], The [product] [key
differentiation]
 Build a storyboard and test it with prospective buyers
/ users. If possible: build a very minimal interactive
product prototype, and test
 Define the Minimum Viable Product (MVP)
- that
product which has just those features (and no more)
that allows you to ship a product that resonates with
early adopters; some of whom will
give you
feedback.”

MVP Requirements do’s and
Do: don’ts
• Write SOMETHING down • Get buy-in from
ALL STAKEHOLDERS. • Be practical and
specific. Build a top level project plan that
identifies key tasks, milestones and
interdependencies • Develop a 2-year
roadmap
Don’t:
• Start building anything without buy-in.
• Over specify details on each feature. •
Build a 5 year product roadmap with a
great deal of details
“MVR” (Minimum Viable
Requirements)
• Clear description of the market problem that is being solved
• “Elevator pitch” of the solution (preferably with images)
• Description / analysis of first target segment
• Buyer and User Personas
• Detailed storyboards on typical workflows
• Specific examples for details encountered in each workflow
• Considerations for human factors / human cognition
• Top level design directions to be followed by product design team
• Lightweight functional description of minimum viable product (MVP)
• Quick 2 year product roadmap
• Any external business drivers
The Entrepreneurial Mind
The creative mind conceptualizes and designs
a product that consumers find some use for.
It likewise produces a product that is
pleasing to see, touch, smell, hear and
taste.
The technical mind is the technology
originator. this is what drives him or her to
convert new knowledge into something
highly functional and operational. The
technical mind is also a technology adaptor.
The Entrepreneurial Mind
The business mind harnesses the potentials of
new products by creating the market space
for them. It also organizes sufficient forces
and resources to develop, launch, and
commercialize the new product in order to
maximize its market value. The business mind
also manages the external and internal
business environment of the new product,
which goes beyond the product development
process itself.
Product Conceptualization
and the Creative
Mind
Utilitarian-Purposive
Appeal
– shows
a product
with a purpose that appeals to customers.
Sensorial-Emotional Appeal - product should be
appealing to the senses and emotion.
Aesthetic Appeal - depend on the desired state of
the self
In order to convert the product concept into a
viable product, the technical mind must
intervene to provide the quality and
performance specifications through technology.
Product Launch and the
Business Mind
The business mind brings the
product from the prototype
stage to the production phase
and, finally, to its ultimate
destination,
the
market
place.
The
business
mind
must
determine the best way to
maximize product sales to its
1.
Steps Towards New Improved
Products
Test the market of existing or leading
products to determine what their positive
and negative features and attributes are
according to their consumers.
2. Isolate the negative features and attributes
for improvement purposes and the positive
features and attributes for retention
purposes.
3. Read all literature and consult various
experts to learn all about the product and
its market.
4.
Steps Towards New Improved
Products
Generate several options and possibilities on
how the product could be improved
5. Test, test and test the product variations and
reconfigurations scientifically, preferably
using well-informed respondents. Apply
rigorous testing methodologies.
6. Gear for production by standardizing the
transformation
7. Once the final product reconfiguration is
chosen, design the production work process
Product Reconfiguration
Reconfiguration is a creative method of
generating new improved versions of
existing products.
First, define the features and attributes of an
existing product.
Next, for every feature or attribute of the
products
the
reconfigures
should
enumerate
alternative
features
or
attributes.
The third task is to mix and match the
different alternative attributes into a new
Product Design
Steps taken by design firms in coming up with a winning
product design
1.
Know the product, its customers and its competitors
well
2.
Go to where the customers are.
3.
Dream and visualize
4.
Diverge into different designs and prototypes
5.
Evaluate
6.
Engineer the composite prototype
Product Design
Steps taken by design firms in coming up with a winning
product design
7. Composite prototype testing
8. Detailed engineering on final product
9. Manufacturing feasibility
10. Manufacturing and market testing