290 likes | 467 Views
LESSONS LEARNED. Mark Calkins vp product development bluehost. LESSON ONE: THE BUSINESS MODEL. Business Models. alex osterwalder. Business Model Canvas. from businessmodelgeneration.com/canvas . Identify. Who are your target users? What value do you deliver to your customer?
E N D
LESSONS LEARNED Mark Calkinsvp product development bluehost
Business Models alex osterwalder
Business Model Canvas from businessmodelgeneration.com/canvas
Identify • Who are your target users? • What value do you deliver to your customer? • What activities are necessary to delivery your value prop? • What key resources does your value prop require? • Who are your key partners?
Identify • What type of relationship is required to deliver your value to your customer? • What channels will be used to deliver your solution? • What costs will be incurred to deliver your value prop? • What value are your customers willing to pay for?
B2B ‒ Complex Systems Model • Target user: enterprise customers • Channel: direct sales force • Product includes: enterprise software + professional services consulting • Product integrates into a larger system • Must accommodate existing legacy systems • Examples • Financial systems • Enterprise HR application • Manufacturing requirements planning applications
B2C ‒ Volume Operations Model • Target user: end user, consumer • Channel: website, mobile phone, etc. • Product complexity: simple & easy-to-use • No integration, no legacy: offer works by itself • Examples • Online movie ticket purchasing • Game console • Mobile game • Web hosting
Scaling These Two Business Models B2B • Problem is painful & complex • Solutions are expensive & valuable • Customers pay a premium • Barriers to exit high • 1000 customers spending $1M/year = $1B business B2C • Usage is at discretion of end user • Popularity establishes the premium • Often a convenience • Barriers to exit are low • 10M customers spending $8/mo = $1B business
Growth Strategies (based on your Business Model) New Product Existing Product Existing Market New Market
Growth Strategies New Product Existing Product Existing Market New Market
Example: Novell New Product NOVELL Product: Server OS + networking (NetWare) Channel: network resellers + ISVs Existing Product OEM & system integrator channel Existing Market New Market
Example: Novell Acquisition SuSE LINUX Product: open source server & desktop OS Channel: system integrators New Product NOVELL Product: Server OS + networking (NetWare) Channel: network resellers + ISVs + OEMs Existing Product Existing Market New Market
Example: Novell Acquisition WORDPERFECT Product: desktop word processing app Channel: computer retail stores New Product NOVELL Product: Server OS + networking (NetWare) Channel: network resellers + ISVs + OEMs Existing Product Existing Market New Market
Example: Oculus Rift Acquisition New Product Existing Product Existing Market New Market
Getting Mass Market Adoption • Build a better mousetrap and the world will beat a path to your door. • “You may find an audience with innovators and early adopters, but the mainstream market, where the profit resides, will reject your product unless marketed correctly.” • —Geoffrey Moore
Technology Adoption Life Cycle “The Chasm”
Crossing the Chasm Product-Centric • Fastest product • Easiest to use • Elegant architecture • Product price • Unique functionality Market-Centric • Largest installed base • Most third party supporters • Defacto standard • Cost of ownership • Quality of support but mass market adoption ONLY comes here! The Innovators and Early Adopters love this stuff…
Positioning • Is a noun – an attribute associated with your company or product • Is the single largest influencer on the buying decision • Exists in people’s heads • Is about making products easier to buy, not easier to sell “best buy for this situation”
Positioning Format For target customer who statement of need or opportunity, our product is a product category. Unlike primary competitive alternative, our product is statement of primary differentiation.
Positioning Format For home owners who want an easier way to manage their home temperature, NEST is a learning thermostat. Unlike timed thermostats, NEST helps you save money by programming itself based on your schedule.
YOUR OBJECTIVE • The goal of a product manager is to create products that sell themselves • Great products (Resonators) don’t need lots of advertising nor an expensive sales force
Be Tuned In • Identify your target user • Listen to the target user • Learn everything you can about the user • Create personas and“day in the life of” stories Nate NetGen Isha Int’l Suzy Socialite Adam Athlete Paul Postgrad Returning Rhonda Tom Technology
Be Tuned In • Provide solutions to the users’ major pain points • “Nice to have” generally won’t sell • Is the problem urgent? • Is it pervasive? • Are buyers willing to pay for it? Not Urgent Pervasive Urgent Pervasive Urgent Not Pervasive Not Urgent Not Pervasive Problem Matrix
Be Tuned In • Define markets in terms of customer value • What value will the customer derive from your solution? • How can you offer more value? • Identify alternative perspectives for delivering value
Be Tuned In • Develop solutions in the context of the total customer experience • Buying experience • Packaging • Using the product • Receiving customer service • Availability of other required resources
LESSONS LEARNED • Business model drives strategy • Marketing strategy is as important as the product • Be incredibly tuned in to your market