Tag Archives: business model

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1 Start with What You Know Now

Traditionally, a product strategy is the result of months of market research and business analysis work. It is intended to be factual, reliable, and ready to be implemented. But in an agile, dynamic environment a product strategy is best created differently: Start with your idea, state the vision behind it, and capture your initial strategy. Then identify the biggest risk or the crucial leap-of-faith assumption, address it, and change and improve your strategy. Repeat this process until you are confident that your product strategy is valid.

StrategyCreationApproaches

This iterative approach, pioneered by Lean Startup, provides several advantages: First, it helps you develop a strategy built on empirical evidence rather than on intuition, authority, or influence. Second, it enforces fast failure and minimises the risk of following the wrong strategy and launching a product that bombs. Third, it avoids carrying out too much and too little market research; it helps you do just enough research to acquire the knowledge you really need.

2 Focus on what Matters Most

The term product strategy means different things to different people, and strategies come in different shapes and sizes. While that’s perfectly fine, an initial product strategy that forms the basis for subsequent correction and refinement cycles should focus on what matters most: the market, the value proposition, the product’s unique selling points, and the business goals. This is where my Vision Board comes in. I have designed it as the simplest thing that could possibly work to capture the vision and the product strategy. You can download it from romanpichler.com/tools/vision-board for free.

VisionBoardTemplate

For an introduction to the Vision Board, please see my post “The Product Vision Board”.


3 Create the Product Strategy Collaboratively

A great way to create your product strategy is to employ a collaborative workshop. Invite the key people required to develop, market, sell and service your product and the senior management sponsor. Such a workshop generates early buy-in, creates shared ownership, and leverages the collective knowledge and creativity of the group. Selling an existing vision and product strategy can be challenging. Co-creation is often the better option.

VisioningWorkshop

Your initial Vision Board has to be good enough to create a shared understanding of your vision and initial strategy and to identify the biggest risk so you can start re-working your board. But don’t spend too much time on it and don’t try to make it perfect. Your board will change as you correct, improve and refine it.


4 Let your Vision Guide you

The product vision is the very reason for creating your product: It describes your overarching goal. The vision also forms the basis of your product strategy as the path to reach your overall goal. As the vision is so important, you should capture it before you describe your strategy.

VisionFirst

Here are four tips to help you capture your vision:

  • Your vision should not restate your product idea. It should rather go beyond it. For instance, the idea for this post is to write about creating an agile product strategy, but my vision is to help you develop awesome and successful products.
  • Choose a broad vision, a vision that engages people and that enables you to pivot – to change the strategy while staying true to your vision.
  • Make your vision statement concise; capture it in one or two sentences; and ensure that it is clear and easy to understand.
  • Try to come up with a motivating and inspiring vision that helps unite everyone working on the product. Choosing an altruistic vision, a vision that focuses on the benefits created for others, can help you with this.

You can find more information on formulating a compelling product vision in my post 8 Tips for Creating A Powerful Product Vision.


5 Put the Users First

Once you have captured your vision, work on your strategy by filling in the lower sections of the Vision Board from left to right. Start with the “Target Group”, the people who should use and buy your product rather than thinking about the cool, amazing product features or the smart business model that will monetise the product. While both aspects are important, capturing the users and customers and their needs forms the basis for making the right product and business model decisions.

ClearTargetGroup

While it’s tempting to think of all the people who could possibly benefit from your product, it is more helpful to choose a clear-cut and narrow target group instead. Describe the users and customers as clearly as you can and state the relevant demographic characteristics. If there are several segments that your product could serve then choose the most promising one.

Working with a focused target group makes it easier to test your assumptions, to select the right test group and test method, and to analyse the resulting feedback and data. If it turns out that you have picked the wrong group or made the segment is too small then simply pivot to a new or bigger one. A large or heterogeneous target group is usually difficult to test. What’s more, it leads to many diverse needs, which make it difficult to determine a clear and convincing value proposition and therefore to market and sell the product.


6 Clearly State the Main Problem or Benefit

Once you have captured your target users and customers, describe their needs. Consider why they would purchase and use your product. What problem will your product solve, what pain or discomfort will it remove, what tangible benefit will it create?

StateMainProblem

If you identify several needs, then determine the main problem or the main benefit, for instance, by putting it at the top of the section. This helps you test your ideas and create a convincing value proposition. I find that if I am not able to clearly describe the main problem or benefit, I don’t really understand why people would want to use and to buy a product.


7 Describe the Essence of your Product

Once you have captured the needs, use the “Product” section to describe your actual product idea. State the three to five key features of your product, those features that make the product desirable and that set it apart from its competitors. When capturing the features consider not only product functionality but also nonfunctional qualities such as performance and interoperability, and the visual design.

CaptureTheKeyFeatures

Don’t make the mistake of turning this section into a product backlog. The point is not to describe the product comprehensively or in a great amount of detail but to identify those features that really matter to the target group.


8 State your Business Goals and Key Business Model Elements

Use the “Value” section to state your business goals such as creating a new revenue stream, entering a new market, meeting a profitability goal, reducing cost, developing the brand, or selling another product. Make explicit why it is worthwhile for your company to invest in the product. Prioritise the business goals and state them in the order of their importance. This will guide your efforts and help you choose the right business model.

StateBusinessGoals

Once you have captured the business goals, state the key elements of your business model including the main revenue sources and cost factors. This is particularly important when you work with a new or significantly changed business model.


9 Extend your Board

The Vision Board’s simplicity is one of its assets, but it can sometimes become restricting: The Product and the Value sections can get crowded as the board does not separately capture the competitors, the partners, the channels, the revenue sources, the cost factors, and other business model elements. Luckily there is a simple solution: Extend your board and add further sections, for instance, “Competitors”, “Channels”, “Revenue Streams”, and “Cost Factors”, or download an extended version from my website.

ExtendingTheVisionBoard

But before using an extended Vision Board make sure that you understand who your customers and users are and why they would buy and use the product. There is no point in worrying about the marketing and the sales channels or the technologies if you are not confident that you have identified a problem that’s worthwhile addressing. Additionally, a more complex board usually contains more risks and assumptions. This makes it harder to identify the biggest risk and leap-of-faith assumption.


10 Put it to the Test

Capturing your vision and initial product strategy on the Vision Board is great. But it’s only the beginning of a journey in search of a valid strategy, as your initial board is likely to be wrong. After all, you have based the board on what you know now rather than extensive market research work.

You should therefore review your initial Vision Board carefully, identify its critical risks or leap-of-faith assumptions, and select the most crucial risk or assumption. Determine the right test group, for instance, selected target users, and the right test method such as problem interviews. Carry out the test, analyse the feedback or data collected, and change your Vision Board with the newly gained knowledge as the picture below shows.

TestingTheProductStrategy

If you find that the key risks and assumptions hard to identify then your board may be too vague. If that’s the case then narrow down the target group, select the main problem or benefit, reduce the key features to no more than five, identify the main business benefit, and remove everything else.

Your board may significantly change as you iterate over your strategy, and you may have to pivot, to choose a different strategy to make your vision come true. If your Vision Board does not change at all then you should stop and reflect: Are you addressing the right risks in the right way and are you analysing the feedback and data effectively?


Learn More

You can learn more about creating an agile product strategy and working with the Vision Board by attending my Agile Product Strategy and Roadmap training course. Please contact me if you want me to teach the course onsite or to deliver it as a webinar/virtual training course.

TheListeningResourceSusanEliot

Have a Clear Research Goal

Collecting the right data and analysing it effectively requires a clear research goal – understanding the reason why you carry out the work, and what you want to achieve. At the early stages of creating a product, your goal is likely to validate a critical assumption. This could be the product’s value proposition, the main revenue source, or an aspect of the user interaction design. Lean Startup captures the research goal as a hypothesis, and Scrum as a sprint goal.

Without a research goal you are in danger of collecting the wrong data, drawing the wrong conclusions, and moving your product in the wrong direction. In a sense, you are just trashing around hoping that the data will magically tell you what to do.


Separate Data Analysis from Data Collection

Once you have gathered the relevant data – for instance, by observing users, demoing a prototype, or tracking user behaviour using an analytics tool – step back, and carefully reflect on it before you make any decisions.

If you come from a Scrum background, then separating analysis from data collection may be new to you. In Scrum, data is traditionally collected and analysed in the sprint review meeting without always clearly separating the two activities. This carries the danger of rushing or skipping the analysis work, and making suboptimal or wrong decisions.

I hence recommend that you first collect the relevant data and then analyse it. Use the new insights to change the appropriate artefacts, for instance, your Vision BoardProduct Canvas, or product backlog, select a new research goal, and start the next cycle.


Keep an Open Mind

Keeping open mind may sound trivial, but clinging to an idea – not the lack of a fancy analysis technique or tool – is the biggest barrier to drawing the right conclusions in my experience. I know what I am talking about: When working on a new product, I feel strongly about my own ideas, and I sometimes have a hard time changing my mind. But being too attached to an idea, or being too eager to succeed carries the danger of rejecting any data that challenges it, which may well result in a poor product.

Before you carry out any analysis, take a deep breath and relax. Whenever you get tense or worked up about the data, tell yourself that it is not you, who is being challenged, but ideas, assumptions, and concepts. And ideas, assumptions, and concepts don’t have any pride; they don’t want to be right or wrong. They are just thoughts.


Mitigate Cognitive Biases

My fourth tip is to be aware of the cognitive biases we all have. A cognitive bias is a fault in our thinking causing us to draw the wrong conclusions. Confirmation biases, for instance, is the tendency to search for or interpret information in a way that confirms our preconceptions, and self-serving bias is the tendency to claim more responsibility for our successes than our failures.

Maybe the worst thing you can do when employing a framework such as Lean Startup or Scrum is to run iteration after iteration only to look for data that confirms your ideas – and to reject the rest. This is likely to result in late failure, which is just as painful as in a traditional, sequential approach.

A great way to mitigate cognitive biases is to analyse the data collaboratively. This tends to balance out individual preferences, believes, and preconceptions. Consider therefore involving the development team in the data analysis, particularly when you validate critical assumptions.


Clean the Data

Don’t forget to clean the data. Remove data whose quality is too poor to interpret it correctly, and discard irrelevant data. This should be easy enough – unless it’s an idea from an important customer or a powerful stakeholder. But saying yes to every idea is not going to result in a great product but in a cluttered piece of software with a poor user experience. As Steve Jobs once said:

Innovation is not about saying yes to everything. It’s about saying no to all but the most crucial features.

Stay true to your vision, and leverage your primary persona to determine the right features.


Pivot or Persevere

When analysing the data, ask yourself if it invalidates your strategy, for instance, the customer segment chosen, the product’s value proposition, the anticipated user experience, or the revenue source. If it does, pivot and change your strategy. This typically requires big amendments of your planning artefacts including the Vision Board and the Product Canvas. If your strategy is valid, persevere and refine the appropriate documents.

Pivoting is never easy, as it require us to accept failure, and to let go of assumptions and ideas we may have grown fond of. But it is often a necessary step towards developing a great product. If you find failure scary, then don’t take it personal, and don’t identify yourself with your ideas: It is not you who has failed, but an idea or an assumption has turned out to be wrong. That happens even to the likes of like of Einstein who famously said:

A person who never made a mistake never tried anything new.

But if you keep pivoting repeatedly, stop and reflect. Check if you are really moving towards a successful product, or if you are chasing an ever-changing dream.


Learn more

While there is more to data analysis then I can cover in this brief blog post, I hope that the tips above help you analyse your data and create a great product.

To learn more attend my Agile Product Planning training course. Please contact me for delivering the training course onsite, and in form of interactive virtual training sessions.

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Discovering Lean Startup was inspiring for me: I felt I had found an approach that could complement Scrum nicely. Since then I have been combining the two approaches in my own new product development work as well as helping my clients to do so. This post shares my experiences and insights. It maps out a high-level process for creating new products within existing businesses focussing on product management practices and tools.

From Vision to Launch

Lean Startup encourages us to first investigate if there is a need worthwhile serving before we worry about the details of the new product. The former is called “Problem Validation”, the latter “Solution Validation”. While traditional approaches also suggest carrying out market research and analysis before we engage in product planning and definition, lean approaches increase the speed at which we operate. This allows us to fail and learn faster, to adapt our product strategy and tactics quickly, and to hopefully launch the right product with the right features sooner.

The following diagram illustrates the process I apply to create new products:

Problem Validation

The new product development process depicted above starts with a vision. It then uses a series of cycles or iterations to transform the vision into a product ready for launch. The focus of the early iterations is to understand what problem the product solves, who the customers and users are, and how the product benefits the company creating it.

I find it important that the product owner leads this effort and carries out the necessary work together with a cross-functional team. While the team composition depends on the product, having a marketer, sales representative, service representative, a UX designer, and a developer on board is usually helpful. Product owner and team capture their assumptions about the market by using a tool like the Vision Board, Business Model Canvas, or Lean Canvas.

Employing techniques such as direct observation, problem interviews, and competitor analysis helps them validate their assumptions and update the board or canvas, as the following pictures illustrates:

Additionally, the developers may create spikes (throwaway prototypes) to explore the feasibility of the product. Target users and customers participate in the process, for instance, by acting as interview partners.

Solution Validation

Once product owner and team have shown that there is a problem that’s worthwhile addressing, the focus changes to validating the solution and developing the actual product: The team needs to learn what the desired user experience is, what functionality the product should provide, and how it should be built.

The new focus requires adapting the team composition: The product owner, the UX designer and the developer stay, but the marketer, sales and service representatives leave the team. They continue to participate in the development effort as stakeholders. New developers, testers, and other roles required to create a great product join the team.

Product owner and team capture their assumptions about the product including the user interaction, the user interface design, the functionality, and the nonfunctional aspects using a tool like the Product Canvas and techniques such as scenarios, user stories, and design sketches. The assumptions are tested by collecting and analysing feedback on prototypes, mock-ups, and product increments/MVPs. Useful techniques to gather the feedback include product demos, users tests, and releases (to selected users).

As you may have noticed, the picture above suggests that “Stakeholders incl. users” participate in the process, and provide feedback or data on work results. While using target users and customers to validate ideas is generally helpful, it is not always appropriate. Imagine addressing a key technical risk in your first solution validation iteration: It probably makes little sense to invite users to the review meeting to understand if the approach chosen is viable. Similarly, if a disruptive product is developed it can be hard to find target users that are not too attached to their current solution.

Scaling and Launch Preparation

Once the Product Canvas and the architecture have started to stabilise, you can start adding more people to the project. I find it useful to break-up the original team so that at least one or two members are part of each new team, as this helps the new members get up to speed. I also suggest you grow your new product development project in a step-wise fashion: Scale from one to two teams, then from two to four, and so forth. This allows you to understand the impact on the people and the process including product ownership .

Be aware of the danger of premature scaling: Adding too quickly too many people. This tends to lead to a bloated, over-engineered product in my experience, and it prevents you form being able to experiment effectively. Therefore delay scaling until you have resolved the main risks – until you can focus on completing features and adding new ones.

Finally, as you make progress with your solution validation work, don’t forget to prepare the product launch. Having a marketer present at the sprint review meetings should help, but you may find that a dedicated marketing may be required to prepare and execute the launch well.

Summary

The following table summarises my recommendations for transforming an idea into a shippable product:

The process described in this post is based on work by Steve Blank, Ash Maurya, Eric Ries, and Ken Schwaber. The eagle-eyed process historians amongst you may have noticed that the idea of progressive scaling has its roots in the (Rational) Unified Process. Experimental, iterative product development has been around for quite some time of course, I believe at least since the late 19th century when Thomas Edison established the Menlo Park laboratory.

You can learn more about combining lean and agile techniques to create new products by attending my Agile Product Management training course. Please contact me for onsite workshops.

If you have any feedback, comments, or questions, then I’d love to hear from you!

ProductPlanningArtefacts

The Three Planning Levels

Agile product planning comprises three levels: vision, product strategy, and tactics. The vision is the overarching goal, the product strategy the path to the vision, and the tactics are the steps along the way, as the following diagram illustrates:

The level of detail increases, as we move down from the vision to the tactics: Whereas the vision is typically captured by a brief statement, the strategy communicates different aspects including the market or market segment targeted, the product price and the channels, and the product’s unique selling points (USP’s). The tactics go further by describing the product details employing, for instance, user stories, design sketches, scenarios, and storyboards, as the following picture shows:

The Vision

Product planning starts with creating a vision: an overarching, shared goal that guides people. A sample vision from my own company is: “Grow Pichler Consulting without increasing headcount.” This vision may not sound mega exciting but it is very helpful for my team and me: It guides our work and focuses our efforts. Note that the sample vision doesn’t mention a specific product or service. It rather states a business goal. How the goal is realised is captured in the product strategy.

The Product Strategy

The product strategy is the path chosen to realise the vision. Without a strategy, making the right decisions about the product details is difficult: the functionality, the design, and the non-functional properties the product should exhibit. Having a strategy in place also prevents me from getting lost in the details.

I find it helpful to capture the target group, the needs addressed, the key features of the product, and the desired business benefits in the product strategy. But you may want to add the product price, the channels, the main competitors, and other important business model elements to characterise your strategy more comprehensively. As the strategy is a path to the vision, it may turn out to be wrong. This is particularly likely when a new product is created. Changing the strategy is also called a pivot.

The Product Tactics

The product tactics describe the product details: the product functionality, the user interaction, and the user interface design. Great techniques to capture these aspects are epics and ready stories, scenarios, design sketches and mock-ups, constraint stories, and sprint goals. New product features are best delivered incrementally so we can learn from the feedback we collect. I use blog posts, for instance, to create the material for my e-learning course. This allows me to learn from the feedback I receive, and to validate my strategy and the product details.

Product Planning Tools

I prefer to use the agile product planning tools shown in the picture below:

To capture my vision and the key elements of the product strategy I like to employ the Vision Board and the GO product roadmap. I use the Business Model Canvas to describe aspects not covered by the Vision Board such as partners, and customer relationship.

To capture the details, I use the Product Canvas. The canvas allows me to work with personas, epics, scenarios and storyboards, design sketches and mock-ups, constraint stories, sprint goals, and ready stories. For an incremental product update, a product backlog may be sufficient to capture the product details.

Wrap-up

Creating successful products requires more than attention to the product details. Ensure you have a shared in vision in place, and choose a strategy that guides you towards the vision. Use early feedback to validate if you are on the right path, if your strategy is valid. Let the product strategy help you decide what your product should look like and do.

You can learn more about agile product planning and creating a powerful vision and product strategy by attending my Agile Product Planning training course.

A Sample Canvas

The best way to understand the Product Canvas is to look at an example. Image that we want to develop a game that helps children enjoy music and dancing. A canvas for such a game could look like the one below.

SampleCanvasDanceGame

The sample Product Canvas above contains the product name, the product (or release) goal and the metrics to measure if the goal has been met. The first bigger section states two personas characterising the target users and customers with their needs. The next section sketches important aspects of the product using epics to describe the product’s functionality, a mock-up to capture the user interface design, a storyboard to illustrate the user interaction, and a constraint card to express the platform for which the game is developed. The section on the right provides a goal for the next sprint and the details necessary to reach the goal.

The Sections Explained

As you have probably noticed, the Product Canvas combines form and function, a structure together with suggested techniques. The following diagram and the text below the sections of the canvas. You can download the canvas template for free from romanpichler.com/tools/product-canvas or by simply clicking on the picture below.

ProductCanvasStructure

Name simply states the name or version of the product.

The Goal is the product or release goal, the objective that should be met, for instance, to acquire, activate or retain users. If you use the GO product roadmap than you can simply copy the relevant goal stated on the roadmap.

The Metrics provides the measure to determine if the goal has been met, for instance, number of downloads or daily active sessions. If you use the GO product roadmap than just copy the relevant roadmap metrics.

The Target Group describes the target customers and users as personas. The section explains who we believe is likely to use buy and use the product and why. I discuss personas in more detail in my post A Template for Writing Great Personas. Choose one primary persona – the persona you mainly create the product for. Employing a primary persona helps you make the right prioritisation decisions and create a product with a great user experience. Your primary persona should be at the top of the building block to signal its importance.

The Big Picture describes what is takes to meet the persona goals. It captures the user journeys, and the visual design required to create the desired user experience. As its name suggests, it wants to describe your product holistically at a high-level. The section is similar to the outline of a book: It captures the contents without discussing the details.

Scenarios, storyboards, workflow diagrams, and story maps are great techniques to describe the user journeys on the Big Picture. Each journey shows how a persona interacts with the product and the steps the individual has to take to meet a goal. The product functionality on the Big Picture is best captured as epics, which are big and coarse-grained user stories. Epics allow you to describe your ideas without having to commit to the details. This saves time, and it makes it easier to update the canvas with new insights. Constraint stories help you capture the nonfunctional requirements that impact the user experience and the software architecture. You can capture your visual design ideas on the Product Canvas as design sketches, mock-ups, screen-shots, and photos. The Big Picture design artefacts should focus on the critical design aspects of your product—for instance, the design of selected screens or pages.

None of these techniques are mandatory, of course. They rather provide you with a starting point. Choose those techniques that are appropriate for your product. Use additional ones as it suites your needs.

The Product Details provide a goal for the next iteration and just enough implementable items to reach the goal, for instance, to address a risk and to acquire relevant knowledge, or to complete a feature. Depending on the goal, I use different techniques to capture the implementable items. For goals that require coding, ready stories are very helpful. These are small, detailed stories that feed the next cycle and that help create a product increment or minimal viable product (MVP). They are derived from the epics, and are necessary to reach the sprint goal. Make sure you write acceptance criteria for your ready stories. Order the implementable items from one to n, for instance, first, second, third, and so on, to maximise the chances that you reach your goal.

Putting the Users First

The canvas is designed so that the information flows from left to right starting with the personas. This puts the user at the center of the development effort, and it ensures that you develop a product that is beneficial and desirable.

The scenarios, storyboards, epics, design sketches, and constraints describe the future product, and the ready stories ensure that there are implementable items. I explain in more detail how you can create you canvas in my post “The Product Canvas Creation Workshop“.

Learning and Emergence

The biggest challenge when developing a new product is to deal with uncertainty and lack of knowledge. We may not know, for instance, if there is enough demand for the product, or how users will interact with the product. The Product Canvas is designed as a learning tool: to sketch our initial ideas, to get enough stories ready for implementation, and to adapt and refine the content based on the insights gained. The following picture illustrates this cycle.

Consequently, you should expect that your canvas changes as you learn more about the users and customers, and how to best address their needs. It’s common to deal with bigger changes involving clearing out and refilling one or more canvas sections including the section on personas.

The Business Model

The Product Canvas describes the target group and the product features, but not the business model including the revenue sources and the cost structure. While I have intentionally kept the canvas focussed, I have designed it to be compatible with the Alexander Osterwalder’s and Yves Pigneur’s Business Model Canvas. You can use the two canvases together, as the following picture illustrates.

As the picture above suggests, I use the Business Model Canvas to capture the market and value proposition at a high-level, and I state the details for a specific product on the Product Canvas.

Tools

I like to work with a physical Product Canvas placed on the office wall, as this has three main benefits: First, it ensures that the relevant information is visible to the product owner and the team. Second, working with simple, yet effective tools such as paper cards and paper sheets facilitates effective collaboration. Third, having to work with limited wall space creates focus and prevents capturing everything that might be relevant. To create your own paper-based canvas, download and print out my free Product Canvas template.

If you require an electronic canvas, then consider using a wiki, or try Jolien Coenraets’ Google Drive template. There are also several software tools, which allow you to create a Product Canvas including the BMFiddle Product Canvas, the ProdPad, and the Canvas Model Design iPad app.

If you work with JIRA, I suggest you keep the personas and the big picture in your wiki or project management tool, and manage the product details in your JIRA board.

Wrap-up

The Product Canvas brings together the key pieces of information necessary to create a new product: the users and customers with their needs, the product’s functionality and design, and the user interaction. It’s intended to be a collaborative tool that helps you state your ideas and assumptions, test them, and integrate the insights you gain. Try it out, and let me know how the canvas works for you! I’d love to learn how using the canvas has worked for you.

You can learn more about the Product Canvas by attending my Certified Scrum Product Owner or my UX and Scrum training course. Please contact me if you want me to teach the course onsite or if you are interested in a virtual training.

This post was last updated on 20th March 2014.

Getting lost in the product details and struggling to decide if a feature should be implemented is a common challenge for product owners and product managers. It’s something that happens to me all the time, even while I was writing this post. But as product owners, we should focus on what really counts: creating value for the people using the product and the organisation developing it.

What’s in it for the User?

Some product owners I work with worry too much about how to write a certain user story or what the detailed design of a screen should look like. Whenever this happens, I find it helpful to step back and ask the following questions: Why would anybody want to use the functionality? Why would a certain design be helpful?


I know the image above looks pretty trivial. But it took me a few iterations to create it. I started out with a more elaborate design, which I dropped after I reflected on the desired user benefit: Glancing at the images should allow the reader to understand the gist of the blog post. Selecting a simpler design hopefully achieves this goal better.

The Product is a Means to an End

Exploring how a story or design idea benefits the users means viewing the product as a means to an end: to serve the users as well as the organisation creating it. As marketing guru Theodore Levitt famously put it, “People don’t want a quarter-inch drill, they want a quarter-inch hole.” What really matters are the benefits the product provides.

I find that personas and scenarios are great to hypothesize about the users and their needs. A persona allows us to capture assumptions and ideas about what a typical user might be. The scenarios describe the user’s problem, how our product should benefit the user together with the desired user experience.


While serving the user should be the primary purpose of your product, you shouldn’t forget about the value the product has to create for your organisation. To do so, reflect on the business model that will help you achieve your business goals. This includes identifying the revenue streams, the sales channels, and the cost structure. A great tool to analyse and improve your business model is the Business Model Canvas created by Alexander Osterwalder and Yves Pigneur.

Be aware that your business model can have an impact on the product functionality: For instance, if you plan to generate revenue through online ads, then this requires the capability to place ads. As a consequence, an ad epic will appear in your product backlog.

To capture your ideas about user needs, the product, and the value created for the company, you may want to try my Vision Board. The board captures assumptions about the target group, the user needs, the top three features, and the key business model elements.

Users Come First!

If you find it difficult to balance meeting the user needs and creating value for your organisation, then focus on the user. If your product is desirable, you are likely to find a way to make money. Users should come first, money second.

Summary

Next time when you get stuck in the product details, zoom out. Ask yourself how a feature adds value for the users and your organisation. Then implement it, gather the relevant data, and check if the benefit has been realised. Happy developing!