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Showing posts with label chennaiocc. Show all posts
Showing posts with label chennaiocc. Show all posts

Monday, January 09, 2012

Minimum Viable Product & the Tour My App roadmap

Recently there has been a lot of noise made about minimum viable products (MVP). MVP was the topic at this month's Chennai Open Coffee Club. Unfortunately I couldn't make it at the last minute, so there are my thoughts on MVP and our approach to building Tour My App.

We recently launched a new product called Tour My App. This is a product through which you can create "tours" to guide users step by step through the actions required to complete tasks in your web application. In this post I'll explain how we are applying the MVP concept in Tour My App.

First some history.

We've always wanted a tour functionality in our other product - Tools For Agile. We searched for various solutions, but didn't find anything that fit our needs. In the meantime, The Startup Center had an event called In 50 Hours. The premise of the event is simple - build a product from scratch in 50 hours. Kausikram went ahead and built an initial prototype of Tour My App over the weekend. The idea was to later on incorporate that into our product. However, during the demo at In 50 Hours, many people expressed interest in having that functionality in their products as well. We then decided to split this functionality into a separate product.

Tour My App was born.

Having decided to build it out into a separate product, we now needed to figure out our release plan. Here is where the MVP concept enters the picture. MVP is a principle to build just enough of the product to validate your assumptions. They may be assumptions on user adoption, pricing model, sales model, technology... anything relating to the product. We have some idea about all these factors when we start, but they are all assumptions. How do we validate it? What we do not want to do is to build a big product and then learn that many of our assumptions are wrong. So, our goal was to build the product piece by piece in order to answer the most important questions up front.

Out of all the questions, the top questions right now were
  1. Is Tour My App solving a real problem?
  2. Will people pay to have this problem solved?
The idea for Tour My App comes directly from a problem we faced ourselves. We badly wanted this functionality in Tools For Agile. Our analytics showed that many users signed up for Tools For Agile but would leave before they performed a single action. If we could get users started easily, then we could make our users much more productive - and increase the chance they would become heavy users.We were ready to spend money to get this solved, but we couldn't find any other product that we could use. We were desperate to get a solution. That is why after a few months of looking, Kausik decided to just write it himself.

But this is just one data point. Were there other companies like this? And would they pay to have it solved?

These were the questions we wanted to answer.

So we did something unconventional - we charged for the beta. 

Generally beta testers get the product free. So why did we charge for it? In usual terminology, beta testers are testers. This means that they are given a buggy product and are expected to report bugs. In exchange for this service, they get the product free. In our case, the product is not buggy. We even have a demo page showing it in action. We want people, not to test the product, but to solve their problems.

The initial beta pool is a set of companies who really have a serious problem, are willing to pay to get the problem solved and the problem is serious enough that they want to explore solutions right now, rather than wait for the application to go live later.

In other words, we want to filter out the people who signed up for beta expecting a free toy to play with, and focus on those who need Tour My App.

So what does all this have to do with MVP? And if the product is production quality, then why are we in beta?  Simple, the quality is at production level, but the product isn't finished.

You see we only built the bare minimum functionality to run a tour. There is still no UI, no sign up page, no login page. In order to save a tour, we have to go into the database and create user accounts and store the data manually.

Why did we do this? Because building those features now doesn't help us answer the questions we want answered at this point. The MVP is the minimum you need to build to get answers to your questions. So we cut out these features for now. We'll build it later.

We are sitting down with the beta companies, and together figuring out what different kinds of tours they need. Based on that we will add the data to run the tour into the database and the tour can then be deployed live into the app.

The discussions will also highlight whether we need to add more functionality into Tour My App or not. We have thousands of potential features in our minds. We are not going to implement any of them until we come across a beta customer that needs it. Then we will build it. So we are not building features based on assumptions, or coolness, but only when see a need in front of our face.

In this phase we want to answer the question: Can we build the kinds of tours that customers need?

Once we figure out the answer to that question, and are satisfied that we are doing a good job of solving beta customer problems, only then will we build out the frontend, the website, the signup page, login page and all that. All that is simple - there is no unknown risk there.

Then we will open to the public with the live application.

PS: Do you think you are losing customers (and therefore, lots of revenue) because some proportion of users cannot figure out the steps required to complete tasks in your web application? Is the problem so bad that you want a solution right now and are willing to pay to have it solved? Then give us your email and we'll bring you into the beta program.

Monday, October 04, 2010

3 Oct OCC Meetup Roundup

We had the October 2010 meetup of the Chennai OCC. Tony Aug, VP IT of Sanmina had come down to attend the meet. Once of the big problems startups often have is understanding how large enterprises make decisions. This is really important in the context of B2B enterprise sales. So it was really good to have Tony come down and talk about the executive perspective when purchasing software.

Some points from the meetup -
  • The #1 reason for purchase in a recessionary environment right now is to cut costs. If you can show substantial cost reductions, then that is a big win.
  • Many cloud/SaaS startups dont understand the security and privacy needs of enterprises. Eg: A company like Sanmina with operations in 20 countries need to run only on certified infrastructure that comply to EU security and privacy regulations, HIPAA, and a host of other regulations. Startups right now cannot guarantee all this
  • Pricing: $10/user a month sounds reasonable, but multiply it by 50,000 users and it becomes huge. So you will need to find a way to get it into the team on one pricing model and then switch to another pricing model (possibly a flat price) when rolling out to the whole organization
  • Dont forget about switching costs. Once an organization has spent tons of money on training and integration, it is unlikely that they will switch over, even to a superior product, unless there is a really easy path for them to do so
  • Subscription pricing is great because it allows organizations to get started without expensive capital expenditure. The old model was to buy expensive servers, install expensive software, training, integration and then you could look to get RoI. The new model is to subscribe and cancel if it doesn't work out
  • You can expect a small team to pay by credit card, but larger orders will need a purchase order and go via the purchasing department. Once that happens a lot of other stakeholders will look at it and question the need for the purchase. So you will have to answer to these other stakeholders too.
  • Lock-in is important in a subscription service. Most companies will want to be sure that they can get their data out at any time
  • Sanmina is a huge believer in open source - cuts costs and there is a community to help. For mission critical systems they pay for commercial support
  • Escrow: Larger companies will usually ask startups that the source code be put in escrow. In case the startup closes down, the company gets access to the source.
  • Using tools like Linkedin, it is really easy nowadays to find a path to get to a decision maker in any company

Monday, September 06, 2010

5th Sep OCC Meetup Roundup

A couple of links from the discussions at yesterdays OCC meetup

- Naeem Zafar's Seven Steps to a Successful Startup - http://www.scribd.com/doc/15245595/7-Steps-to-Successful-Startup
- Steve Blank's blog - http://steveblank.com/

We started out with a theme - How do you find your first customer?

Suresh pointed out that we need to differentiate between customer (who pays) and a user (who uses the software). What we really need in the beginning is a user who can validate our assumptions. Once you have a validated model, then it is a lot easier to find a paying customer.

The conversation went on to How desperate is your customer's need? The more desperate the need is, the easier it is to find and sell. Sometimes entrepreneurs work on products that that are not solving really desperate problems. A company may have a hundred problems, but stakeholders only have time to only solve 5-10 of them a year. Is the problem you are solving in their top-10?

Here is a story from Steve Blank's book The Four Steps to the Epiphany (summarized):
Imagine a bank with a line as customers wait for an hour to cash paychecks. You have a product that could reduce waiting time to ten minutes. You meet the president and tell him you have a product that could solve his problem. What does the president say?
  1. "What problem?" - The president doesnt realize they have a problem. They won't become customers anytime soon. They are late adopters
  2. "Yes I feel bad about it and give them cups of water" - They know they have a problem but are not motivated to solve it. It's not an important problem to them.
  3. "This is a big problem, we are losing $500,000 a year! I'm looking for a a product that will cut processing time by 70%, cost less than $150,000 and integrate with our back end" - Getting warm. Recognize they have a problem and have visualised a solution
  4. "I requested our IT department to develop a solution, but it doesn't work and keeps crashing." - Hot. They have a problem and are spending money on solutions, but nothing works.
  5. "Boy, if we find a vendor who solves this, we can spend the $500,000 I've budgeted for it!" - Fiery hot. Ready to spend big, but no solution in sight. Perfect first customer
In case we thought the last type of customer doesn't exist, Dorai told a story of how he was talking about his vision to a customer and it was such a desperate problem that they paid him in advance to create a product to solve it. You know you have a market when customers are willing to part with their money even before you have started development. Steve Blank calls these customers "Earlyvangelists".

This tied in with the theme of a track at the upcoming Nasscom Product Conclave, which is Sell, Develop, Market, Sell. In other words, first sell your vision, and get someone to buy into it. Only then start with development. Where most of us think of selling as the last step, it really should be the first one.

From there we went into Steve Blank's Customer Development method and Naeem Zafar's 7 steps (links above). Both methods advocate having a customer to validate assumptions even before you start development.

The discussion also went into 2 common product development strategies

- Find a customer, then develop the product (Customer Development method)
- Create products, launch, and go for customer usage (Web 2.0 VC method?)

and the pros and cons of each method. With that we broke up for networking.

Saturday, November 01, 2008

Chennai OCC November Meet: New venue - Ascendas Food Court

The November meetup of the Chennai OpenCoffee Club is tomorrow. There is a change in venue this month. We are meeting at the Ascendas food court at 3pm instead of the usual location at Amethyst. If you have never been to this food court, then the website has a handy map with the location of the venue. Basically it at Taramani, behind IIT and Tidel Park.

Now if you are unsure of what the Chennai OpenCoffee Club actually is, its a place for entrepreneurs, would-be entrepreneurs, and everyone else involved with startups to meet informally (that means no need to join a group or pre-register and no entry fees). We have a meet on the first Sunday of the month. The meetups are open to everyone. Join the Chennai OCC website to get an email notification before every meetup.

On the topic of the OCC website, I just wanted to point out the Chennai OCC website has a forum, so do join in the coversations.

Plus a new feature that is available is that all discussions on the website are now available as an RSS feed — Click here for the Chennai OCC forum feed — so its a really good idea to subscribe to the feed in your favourite blog reader. That will allow you to keep track of the Chennai OCC forums and, if you have joined the website, you can then join in the coversation.