The Lean Product Playbook by Dan Olsen

Key vocabulary and concepts from The Lean Product Playbook by Dan Olsen

Product-Market Fit Pyramid

A framework that breaks product-market fit down into five key components: your target customer, your customer’s underserved needs, your value proposition, your feature set, and your user experience (UX).

Lean Product Process

A simple, iterative process to take advantage of the Product-Market Fit Pyramid and guides you through each layer of the pyramid to articulate and test your key hypotheses for each of the five key components of product-market fit.

Product-Market Fit Pyramid

A framework that breaks product-market fit down into five key components: your target customer, your customer’s underserved needs, your value proposition, your feature set, and your user experience (UX).

Lean Product Process

A simple, iterative process to take advantage of the Product-Market Fit Pyramid and guides you through each layer of the pyramid to articulate and test your key hypotheses for each of the five key components of product-market fit.

Problem Space

Where all the customer needs that you’d like your product to deliver live.

Solution Space

Where any product that you actually build lives, as do any product designs that you create—such as mockups, wireframes, or prototypes.

Market

A set of related customer needs, which rests squarely in problem space.

Steve Blank

It urges product teams to “get out of the building” (GOOB for short).

Demographics

Quantifiable statistics of a group of people, such as age, gender, marital status, income, and education level.

Psychographics

Statistics that classify a group of people according to psychological variables such as attitudes, opinions, values, and interests.

Behavioral Segmentation

Using relevant behavioral attributes to describe your target customer: whether or not someone takes a particular action or how frequently they do.

Needs-Based Segmentation

Dividing the market into customer segments that each have distinct needs.

Innovators

They are technology enthusiasts who pride themselves on being familiar with the latest and greatest innovation.

Early Adopters

Visionaries who want to exploit new innovations to gain an advantage over the status quo.

Early Majority

They are pragmatists that have no interest in technology for its own sake.

Late Majority

Risk-averse conservatives who are doubtful that innovations will deliver value and only adopt them when pressured to do so.

Laggards

They are skeptics who are very wary of innovation.

Persona

A useful tool for describing your target customer.

User story

Brief description of the benefit that the particular functionality should provide, including whom the benefit is for (the target customer), and why the customer wants the benefit.

As a user, I want to be able to easily share photos with my friends so that they can enjoy them.

an Agile customer's goal in which they are able to easily share photos with their friends so that they can enjoy them.

Lean Manufacturing

The best practice of working in small batch sizes.

Rework

Having to spend time fixing something that you did not build correctly the first time.

Minimum Viable Product (MVP)

The minimum amount of functionality that your target customer considers viable, that is, providing enough value.

Customer Value Delivered

Customer Value Delivered = Importance × Satisfaction

Opportunity to Add Value

Opportunity to Add Value = Importance × (1 − Satisfaction)

Customer Value Created

Customer Value Created = Importance × (Satafter − Satbefore)

Kano model

Classifies customer needs into performance needs, must-haves, and delighters.

Delighters

Offer unexpected benefits that exceed customer expectations, resulting in very high customer satisfaction.

Importance

Measure of how important a particular customer need is to a customer

Satisfaction

Measure of how satisfied a customer is with a par- ticular solution that provides a certain customer benefit

Kano Model

Also plots a set of two parameters on horizontal and vertical axes that measure: how fully a given customer need is met,and the resulting level of customer satisfaction

Must-Have Needs

Must have this to create satisfaction of product in question

Performance Needs

More is better

Personas

Used to guide design and make sure teams are aligned on single customers

Steve Jobs

You’ve got to start with the customer experience and work backwards to the technology.

Value Proposition

What are the actual intended customer benefits?

Customer Benefits

Customer must do something for desired results

Hypothetical Customer Benefits

I think that target customer X would find customer benefit Y valuable

Problem Space vs Solution Space - Steve Jobs

You’ve got to start with the customer experience and work backwards to the technology. You can’t start with the technology and try to figure out where you’re going to try to sell it.

Sitemap

Is the name of the design deliverable used to specify structure for any software product that shows all of the pages or screens, how they are organized into sections, and the high-level navigation patterns provided

High importance, low satisfaction quadrant

In Lean product development it is easy to determine and clarify opportunities here because the best value product are here.

Interactive Design

Determines how your product and the user interact with one another

What

What will the product do and accomplish for the user or allow the user to accomplish.

How

The way in which the product delivers the 'What' to the customer. Des the design of the product and the specific technology used to implement the product.

Rungs of The Benefit Ladder Example

They said they didn’t like sliding doors they said, but I prefer vehicles that have a stylish design

Lean Product Failure

the high percentage of new products that fail. the main reason products fail is because they don’t meet customer needs in a way that is better than other alternatives. This is the essence of product-market fit.