6 Reasons Product Discovery is Worth Doing and why Assumptions Will Hurt You
Let's explore the problems we face in creating new products and how Product Discovery may relieve us from those sleepless nights. To kick off, let's indulge in the fears we often have about new products but rarely express publically.
Until you publicly suffer for your flawed assumptions about a product, it can be hard to understand why you would invest in conducting product discovery. Just ask the creators of Google Glass or Microsoft Zune.
And the truth is that unless you're Steve Jobs, you probably don't have the vision or the taste aesthetic. And that means just jumping to product development could be better described as going to the casino or burning your cash.
If you want to read a shocking case study of what happens when product discovery doesn't happen - read about Accenture didn't learn that Hertz users would need a response interface for their app. Hertz paid 32M for a product that never went live.
So for us mere mortals, let's explore the problems we face in creating new products and how Product Discovery may relieve us from those sleepless nights. To kick off, let's indulge in the fears we often have about new products but rarely express publically.
- Will the customer use this?
- Will this product be meaningfully different from our competitors
- How do you manage all the competing risks and launch something good enough?
- What are the problems we can expect when building this?
- Do we have the right people to make this product?
- How do I avoid getting fired for this?
The mindset of continuous learning is the starting point for product owners to get a better night's sleep. So despite the pressure to deliver something ASAP, you can lean upon some ideas from Eric Ries, Mr Lean Startup.
"Success is not delivering a feature; success is learning how to solve the customer's problem." - Eric Ries, author of "The Lean Startup"
Building on this learning is the search for the right signals of what a product should be. And for that, let's hear from author Ash Maurya.
"The process of innovation is one of continuous iteration and refinement. It's not just about having an idea and then executing on it; it's about being willing to continuously improve and adjust your approach based on the feedback you receive." - Ash Maurya, author of "Running Lean."
The Product Fit Model
For many years, I have had this Product Fit Model, based on Lean Startup, be a handy way to simplify the path to a successful product. It has three concepts at its core, and if you stick to them, they will be your lighthouse in creating a new product.
These three concepts are closely related and interdependent. For example, a startup may have a great solution to a problem, but if it cannot effectively market and distribute the product, it may struggle to find product-market fit. On the other hand, if the product is effectively distributed but does not solve a customer's problem, the company may work to achieve a problem-solution fit.
Problem-Solution Fit: Problem-Solution Fit refers to the alignment between a potential customer's problem and the solution that a company offers to solve it. It is a crucial step in product development, as it helps ensure that the product solves a real problem for a specific target market.
Product-Market Fit: Product-Market Fit refers to the point at which a product meets the needs and expectations of a specific target market. It is a critical concept in the Lean Startup methodology. Teams focus on finding a "fit" between their product and the market before investing too much time and resources into development and scale.
Distribution-Conversion Fit: Distribution-Conversion Fit refers to the alignment between a company's marketing and distribution strategies and the ability to convert potential customers into paying users. It is a crucial aspect of the product development process. It ensures that the product is being marketed and distributed effectively to reach the target audience and optimize the conversion rate.
A lean startup approach aims to find and optimize all three of these fits as quickly and efficiently as possible to increase the chances of success and minimize the risk of failure. Let me explain how Product Discovery addresses the biggest problems that keep you up at night.
How product discovery helps determine what customers want
Product discovery helps determine what customers want by allowing companies to validate their assumptions about customer needs and desires through rapid experimentation and customer feedback.
The product discovery process typically involves a combination of qualitative and quantitative research methods, such as user interviews, surveys, usability tests, and analytics. By engaging with customers and collecting data on their behaviour and feedback, companies can gain a deeper understanding of what customers want and need from their products.
Product discovery also allows companies to test their assumptions about customer needs and desires in a low-risk, low-cost environment before committing significant time and resources to product development. By continuously testing and refining the product through an iterative process, companies can ensure that they are building a product that truly meets the needs of their target market.
By using a product discovery approach, companies can make data-driven decisions about the future of their product and business rather than relying solely on assumptions or intuition. This process leads to a higher likelihood of creating a product that resonates with customers, leading to increased customer satisfaction and success for the business.
How does product discovery help determine if a new product is meaningfully different from competitors?
Product discovery helps determine if a new product can be meaningfully different from competitors by allowing companies to assess the competitive landscape and identify potential areas of differentiation.
The product discovery process typically involves a thorough analysis of the market, including a review of existing products and their strengths and weaknesses, as well as an assessment of customer needs and preferences. In addition, this information works to identify potential areas of differentiation for the new product.
Through customer research and feedback, companies can also validate their assumptions about the new product's potential to stand out from the competition. By testing early prototypes and ideas with customers, companies can gather insights into what differentiates the latest creation from existing options and determine if the product is unique and compelling enough to stand out in the market.
Product discovery also allows companies to continuously evaluate and refine the new product in light of competitive offerings, ensuring that it remains meaningfully different over time. This evaluation helps the company stay ahead of the curve and remain competitive in a rapidly evolving market.
How do you manage all the competing risks and launch something good enough?
Product discovery helps manage competing risks to launch a successful new product by allowing companies to validate their assumptions and make data-driven decisions.
The product discovery process involves a series of rapid experiments and tests to gather feedback and data on customer needs, preferences, and behaviour. This information informs critical decisions about the product and business model, including the product's features, target market, and go-to-market strategy.
By continuously testing and refining the product through an iterative process, companies can manage the risk of developing a product that does not meet customer needs or is not viable from a business perspective. For example, by testing early prototypes with customers, companies can quickly determine if the product has the potential to generate sufficient demand and if the proposed business model is feasible.
Product discovery also allows companies to quickly pivot and make changes to the product or business model as needed, based on customer feedback and market insights. This feedback helps to mitigate the risk of launching a product that fails to meet customer needs or does not have a viable business model.
Product Discovery determines the future problems when engineering a new software product.
Product discovery helps determine the problems of engineering a new software product by allowing companies to validate their assumptions and identify potential technical risks early in the development process.
The product discovery process involves testing early prototypes and ideas with customers to gather feedback and validate assumptions about the product's functionality and technical requirements. This feedback helps identify potential technological challenges and roadblocks before investing significant resources in development.
Companies can make informed decisions about the product's technical requirements and engineering approaches by using customer feedback and market data to inform the product design and development process. This data helps to mitigate the risk of developing a product that does not meet customer needs or is not technically feasible.
Product discovery also allows companies to continuously evaluate and refine the product's technical requirements and engineering approach throughout the development process, ensuring that the product remains on track to meet customer needs and is technically feasible.
How does product discovery help determine the right people to build and code this product?
Product discovery helps determine the right people to build and code a product by allowing companies to validate their assumptions about the product's technical requirements and identify the skills and expertise needed to bring the product to market.
The product discovery process involves testing early prototypes and ideas. These ideas help to identify the specific technical skills and expertise needed to bring the product to market, such as experience with particular programming languages, technologies, or development platforms.
By using a product discovery approach, companies can proactively identify the right people to build and code the product, leading to a higher likelihood of delivering a technically sound product that meets customer needs.
How does product discovery help the product owner avoid getting fired for a poor product?
Product discovery helps the product owner avoid getting fired for a poor product by providing a structured and iterative approach to product development that minimizes the risk of delivering a product that does not meet customer needs or expectations.
The product discovery process involves testing early prototypes and ideas with customers to gather feedback and validate assumptions about the product's functionality and market fit. This fit helps to identify potential risks and challenges early in the development process and allows the product owner to make informed decisions about the product's direction and design.
Using customer feedback and market data to inform the product development process, product owners can ensure that the product is being developed with the end-user in mind and is likely to meet their needs and expectations.
Product discovery also allows product owners to continuously evaluate and refine the product's design and features throughout the development process, ensuring that the product remains on track to meet customer needs and is not missing essential parts or functionalities.
Using a product discovery approach, product owners can proactively identify and manage potential risks and challenges, reducing the likelihood of delivering a poor product and increasing the chances of providing a successful product in the market. This success can help to improve job security and reduce the risk of being fired for a poor outcome.