Innovation - Bootstrapping New Product Development (without betting the farm)

InnovationBootstrapping New Product Development*

*without betting the farm

There’s an app for that…

Technologyisn’t

Productisn’t

Proposition

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

PRODUCT |> CUSTOMER -> VALUE

NOT ‘WATERFALL’

Unknowns -> Knowns | Unknowables

Start withintrospectionnot a product

idea

connections budget

knowledge experience

Focus on customer value

This product will do…for…

which transforms their life because…

3minutes | days | months

before & after

Old IdeaEstablished Market

Old IdeaNew Market

New IdeaEstablished Market

New IdeaNew Market

The Core

End of the first morning…Should we stop?

Brainstorm all the peopleEVERYONE

Craft maker on e.g. Etsy

Furniture designer

Lamps & Lighting designer

Jewellery designer/maker

Toy manufacturer

TV & Film Brand Manager

Jewellery brand manager (e.g. Boodles)

Fashion brand manager(global brand)

Fashion designer/retailer(SME)

Wedding supplier

Eyewear designer

Home products manufacturer

(e.g. furnishings)

Pharmaceutical manufacturer

Video games publisher

Fancy dress retailer

Watch manufacturer

Cosmetics manufacturer

Ceramics manufacturer (global brand)

Ceramics designer/maker

Fine Art Copyright Holder

Electronic control systems

(e.g. heating/lighting)

Should we stop?

Pick five(or ten)

Don’t agonizeJust pick five

(or ten)

Persona Young mother, working part timeFictional name Naimh McCormackJob title Family lawyer

Demographics28 years oldLiving with partnerRentingOne child, 3yo

Professional

Works in the City 2 days/weekWorks from home 1 day/weekMainly works on divorce casesReviewing documentationNegotiation and arbitration

TechnicalFamiliar with Skype/Lync, remote working toolsUses Facebook socially and Twitter professionally / socially. Underused LinkedIn accountProficient with Office tools, including Google Docs & Office365, both of which are used by clients

GoalsManage, organize and search documentation from case loadMake sudden transitions seamlessly from home to office, including working on the moveEnsure security of documentation in all locationsEnsure personal information about clients is protected

Primary use case She searches, reads and edits her documents on desktop, laptop and tablet, using her standard tools, wherever she happens to be, and shares them with colleagues over Skype/Lync.

Primary benefit Assurance that information is secure at rest and held only within the EU jurisdiction, without any change to her standard document browsing and editing workflow

Score them-2 -1 +1

Should we stop?

Share the love**value

10x rules**of thumb

For every £1

your customer investsgive them

£10 of value

For every £1

it costs you to acquire & deliver

get£10

of value

Persona Young mother, working part time

Fictional name Naimh McCormackTotal discretionary budget £500/month

Channels UK Legal Partner Mailing ListLaw forums

10x value Ability to collaborate securely with colleagues from work/home with zero friction – which significantly reduces her childcare/office tension

Compelling reason to buy She’s just experienced a late night dash to the office with the kid in pyjamas, to send a confidential document to a colleague for a morning meeting. She doesn’t want to do that again.

Whole solution? This solution as proposed integrates with the office suite and Office365 platform, so they would need to be sold on this too.

Competition There are other collaboration suites available of which this offering is a part of the proposition. They do not have good uptake in the market.

Adjacent segments If we get traction in this market, we could look sideways to local government, social services, barristers, law enforcement, who all collaborate with this user. (See personae X, Y, Z…)

Alignment Our corporate knowledge and connections are in the legal profession, and we fully understand the needs and motivations of a junior solicitor.

Score them-2 -1 +1

Pick oneDon’t agonizeJust pick one

Beachhead

Can we easily pivot?

Can we easily grow?

Is it cohesive?Can we access it?

Can we dominate it?

Should we stop?Or pick another one?

Is it big enough?Is it small enough?

Total Accessible Market

Not the bullsh*t number

$13bn global opportunity!!!

Not predicated on your ability to execute

“We think it is £2m but we’ll only get 5%”

Top DownMiddle Out

Bottom Up

Average Spend Per Customer = ~$500/month

Number of customers = ~10,000

Total Accessible Market =~$5,000,000/month

Total annual spend in segment =$50m

Proportion of spend on product area =~1.5%

Total Accessible Market =~$7,500,000

Should we stop?Or pick another one?

Assumptions

Hypothesis:

Change basede.g.

If we do x, then y will happen

Fact basede.g.

Persona A spends £#.## on B

Define your experimental method(you want to be able to repeat it)

Metrics:Measure {a,b,c} in this way

Success criteria:{a,b,c}

will be | change in the following way

Budget:How much are we prepared

to spend to find out?

Can we do it?Technical

Does the customer care?Value

Will the customer pay?Revenue & Pricing

Can we afford to support it?

Cost of delivery

Can we afford to sell it?Cost of customer

acquisition

Can we do it?Technical

Does the customer care?Value

Will the customer pay?Revenue & Pricing

Can we afford to support it?

Cost of delivery

Can we afford to sell it?Cost of customer

acquisition

Process & Discipline