business for engineers part 2: product conception

BUSINESS FOR ENGINEERS: PRODUCT CONCEPTION

Jan Isakovic @iYan

PREVIOUSLY ON..Short

Long

Sales

cyc

le

Is aware of having a problem

Has a problem

Been actively looking for a solution

Assembled a solution out

of parts

Has a budget

PRODUCT CONCEPTION

• Solution in search of a problem

• A problem in search of the solution

!

• What is the difference?

KEY DIFFERENCESSolution in search of a problem

• Technology is usually the starting point

• “We have this cool tech, who can we sell it to?”

• Key challenge: persuading the customer that they have this problem

• “Analysts say 50% of X will have this kind of product by 2016, so you should buy it”

Problem-oriented products

• A result of direct market feedback or research

• Key challenge: developing the technological solution to the problem

• “You’re doing X to solve this problem now - with our product, you can solve it for less!”

Technology is detected

Product development

Product sales

Sales

Engineering

TECH-FIRST CYCLE

Majority of effort

“Why aren’t you selling?!”

First market feedback

PROBLEM-FIRST CYCLE

Engineering

Engineering

Sales

Sales

Customer identifies a problem

Solution design

Product sales

Solution feedback

Product development

Sales

“This is how we could profitably solve it”

Salesmen find out about the problem

Majority of effort

First market feedback

“Here’s the solution you need.”

BUSINESS PROCESSES AT PROBLEM-FIRST

• Demands a tight sales-engineering integration

• Key processes:

• Market feedback detection, filtration and reporting

• Solution design and business model design

• Solution testing

• Sales

What about your company’s products/services?

NEXT CHALLENGE• Customers may want other features

once they can actually buy the product

• This requires new product development

• How can we optimize this effort?

• Answer: Lean development and MVPs

• The topic of next workshop :)

Engineering

Engineering

Sales

Sales

Customer identifies a problem

Solution design

Product sales

Solution feedback

Product development

Sales

BUSINESS FOR ENGINEERS

Jan Isakovic @iYan

1: Customers and sales 4: Value proposition

2: Product conception 5: Core competencies

3: Minimum Viable Product 6: Company values