1 — Products Software Development From Code to Product
Is this a restaurant? Tasty, nutritious food From Code to Product Lecture 1 — Products — Slide 2 gidgreen.com/course
This is a restaurant From Code to Product Lecture 1 — Products — Slide 3 gidgreen.com/course
Is this a product? From Code to Product Lecture 1 — Products — Slide 4 gidgreen.com/course
Some leading products From Code to Product Lecture 1 — Products — Slide 5 gidgreen.com/course
Lecture 1 • About this course • Products and people • Layers of a product • Startups and growth • Software platforms • Founders and goals • External resources From Code to Product Lecture 1 — Products — Slide 6 gidgreen.com/course
Course objective “Learn how to turn a core technology or idea into a software product which delights users, succeeds in the marketplace and becomes a profitable business.” From Code to Product Lecture 1 — Products — Slide 7 gidgreen.com/course
Our assumptions • You can program • You are web savvy • You know English, ish • No other experience • Technical founder(s) • No investors (yet) From Code to Product Lecture 1 — Products — Slide 8 gidgreen.com/course
Syllabus and Assessment Introduction to products The big picture Ex: Spec for MVP The entrepreneurship process User interface principles User interface Practical interface design Selling products and services Final project Business model Digital advertising Marketing and retention Marketing Search engine visibility Customer facing APIs Technical stuff Ex: Design an API Analytics and optimization From Code to Product Lecture 1 — Products — Slide 9 gidgreen.com/course
Final Project • Choose 2 competing products – Desktop/web/mobile (or a combination) – Lecturer approval required • Explain problem • Compare products – Functionality, UI, business model, marketing • Conclusion • Independent analysis From Code to Product Lecture 1 — Products — Slide 10 gidgreen.com/course
We won’t cover… • Raising money • Forming a company • Recruiting • Legal issues • Enterprise sales • Management • Exit strategy From Code to Product Lecture 1 — Products — Slide 11 gidgreen.com/course
Lecture 1 • About this course • Products and people • Layers of a product • Startups and growth • Software platforms • Founders and goals • External resources From Code to Product Lecture 1 — Products — Slide 12 gidgreen.com/course
Products are for people From Code to Product Lecture 1 — Products — Slide 13 gidgreen.com/course
People are physical Brain Eyes Hands From Code to Product Lecture 1 — Products — Slide 14 gidgreen.com/course
People are emotional From Code to Product Lecture 1 — Products — Slide 15 gidgreen.com/course
People are impatient “The vast majority of people who visit your site… will arrive with their finger poised on the Back button… So your site has to say: Wait! Don't click on Back. This site isn't lame. Look at this, for example.” — Paul Graham, Y Combinator From Code to Product Lecture 1 — Products — Slide 16 gidgreen.com/course
People are irrational From Code to Product Lecture 1 — Products — Slide 17 gidgreen.com/course
People are self-interested From Code to Product Lecture 1 — Products — Slide 18 gidgreen.com/course
People are skeptical “The average American is exposed to several hundred ad messages a day and is trying to tune out.” — Prof. Philip Kotler, 2005 “On average, Americans are subject to some 3,000 essentially random pitches per day.” — Inc.com, 2005 “Not too long ago, the average American was exposed to over three thousand advertising messages in the average day. Today, you get that many before breakfast!” — Newspaper Association of America, 2002 From Code to Product Lecture 1 — Products — Slide 19 gidgreen.com/course
People are followers From Code to Product Lecture 1 — Products — Slide 20 gidgreen.com/course
Lecture 1 • About this course • Products and people • Layers of a product • Startups and growth • Software platforms • Founders and goals • External resources From Code to Product Lecture 1 — Products — Slide 21 gidgreen.com/course
What is a software product? Code that solves problem + Inputs and outputs + User packaging + Can generate cash From Code to Product Lecture 1 — Products — Slide 22 gidgreen.com/course
Layers of a product Marketing Less unique Less technology But more visible to end users Core (in general…) From Code to Product Lecture 1 — Products — Slide 23 gidgreen.com/course
Layers of Microsoft Excel Microsoft Office Calculation engine From Code to Product Lecture 1 — Products — Slide 24 gidgreen.com/course
Layers of Google … , s p a M , l i a PageRank m G , R P From Code to Product Lecture 1 — Products — Slide 25 gidgreen.com/course
Code Breakdown Example 48% 13% 14% 5% 9% 11% Algorithm Core From Code to Product Lecture 1 — Products — Slide 26 gidgreen.com/course
What’s the core of PayPal? • High volume transaction processing? • Integration with external systems? • “…PayPal is: a security company pretending to be a financial services company” — Max Levchin, Founder From Code to Product Lecture 1 — Products — Slide 27 gidgreen.com/course
An ideal core • New • Clever • Invisible Objective: • Hard to reproduce Barrier to entry • Research-based • Optimized for speed • Improve with usage From Code to Product Lecture 1 — Products — Slide 28 gidgreen.com/course
An ideal core interface • New Familiar • Clever Simple • Invisible Obvious Objective: • Hard to reproduce No barriers to usage • Research-based • Optimized for speed • Improve with usage From Code to Product Lecture 1 — Products — Slide 29 gidgreen.com/course
Combining the ideals Product Technology Interface Desktop P2P + VoIP Config-free Web Messaging 140 characters Mobile Super effects Instant posting From Code to Product Lecture 1 — Products — Slide 30 gidgreen.com/course
Lecture 1 • About this course • Products and people • Layers of a product • Startups and growth • Software platforms • Founders and goals • External resources From Code to Product Lecture 1 — Products — Slide 31 gidgreen.com/course
Startups vs (Real) Companies Startups Real Companies No product Existing product Unknown market Known market No brand Recognized brand No customers Existing customers No revenue Significant revenue On life support Financially independent From Code to Product Lecture 1 — Products — Slide 32 gidgreen.com/course
But just maybe… 140,000 Visitors/Users/Customers = Revenue 120,000 100,000 80,000 60,000 40,000 20,000 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 From Code to Product Lecture 1 — Products — Slide 33 gidgreen.com/course
The Math of Rapid Growth Size = ae b ⋅ Time Growth = dSize dTime = abe b ⋅ Time ⇒ Growth ∝ Size From Code to Product Lecture 1 — Products — Slide 34 gidgreen.com/course
In other words… Sustainable growth is characterized by one simple rule: New customers come from the actions of past customers. — Eric Ries, The Lean Startup Growth ∝ Size From Code to Product Lecture 1 — Products — Slide 35 gidgreen.com/course
What does a startup do? • (Raise money) • Development • Monetization • Marketing • Publicity • Biz dev • (Exit) From Code to Product Lecture 1 — Products — Slide 36 gidgreen.com/course
Baseline scenario Steady growth by word of mouth Revenue 5% per month = ~80% per year Time From Code to Product Lecture 1 — Products — Slide 37 gidgreen.com/course
Monetization without buying ads Revenue More revenue per user Time From Code to Product Lecture 1 — Products — Slide 38 gidgreen.com/course
Business development Revenue Lose Gain partner partner Time From Code to Product Lecture 1 — Products — Slide 39 gidgreen.com/course
Marketing Revenue s r e s u a r t x e f o w o l f t n a t s n o C Time From Code to Product Lecture 1 — Products — Slide 40 gidgreen.com/course
Publicity Diminishing Revenue returns D e p a r e i r s o s h i o p n u E Time From Code to Product Lecture 1 — Products — Slide 41 gidgreen.com/course
Example: Not so Cuil Didn’t Kill Google Launched as Google Killer Raised Raised Relaunched $8m $25m as Cpedia Dead Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 From Code to Product Lecture 1 — Products — Slide 42 gidgreen.com/course
Everything but the Product Revenue Revenue Time Time Revenue Revenue Time Time From Code to Product Lecture 1 — Products — Slide 43 gidgreen.com/course
Product development growth rate Revenue Increasing Time From Code to Product Lecture 1 — Products — Slide 44 gidgreen.com/course
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