business for engineers part 2: product conception
DESCRIPTION
A quick introduction to basic business concepts aimed at engineers and all who wish a simple and quick explanation. Part 2 in series is covering the product conception: where do the ideas for new product and services come from?TRANSCRIPT
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