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?

1. BUSINESS FOR ENGINEERS:
PRODUCT CONCEPTION
Jan Isakovic
@iYan

2. PREVIOUSLY ON..
Short
Long Sales cycle
Has a
budget
Assembled
a solution out
of parts
Been actively
looking for a solution
Is aware of having a problem
Has a problem

3. PRODUCT CONCEPTION
• Solution in search of a problem
• A problem in search of the solution
!
• What is the difference?

4. KEY DIFFERENCES
Solution 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!”

5. TECH-FIRST CYCLE
Technology is
detected
Product development
Product sales
Engineering
Sales
Majority of effort
“Why aren’t you selling?!”
First market
feedback

6. PROBLEM-FIRST CYCLE
Sales
Engineering
Sales
Engineering
Customer identifies a
problem
Solution design
Solution feedback
Product development
Product sales
Sales
Salesmen find out about the
problem
“This is how we could profitably
solve it”
First market feedback
Majority of effort
“Here’s the solution you need.”

7. 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

8. What about your company’s products/services?

9. 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 :)
Sales
Engineering
Sales
Engineering
Customer identifies a
problem
Solution design
Solution feedback
Product development
Product sales
Sales

10. BUSINESS FOR ENGINEERS
1: Customers and sales 4: Value proposition
2: Product conception 5: Core competencies
3: Minimum Viable Product 6: Company values
Jan Isakovic
@iYan