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19th #PlaybookRT – Insights on the Indian Product Ecosystem

This #PlaybookRT was led by Shivku, techie and founder of Exotel. The theme ‘The Ship of Theseus’ was inspired by the movie released in 2012 and also by a team in TCS that used to call itself the Ship of TCS. The focus of this Round Table was to evaluate if product developers have enough insight about the Indian Consumer to make a product company. Most technology companies have an exposure to the Bay area product culture, but do they know enough to build products for our own local market needs. There were a lot of insights that were drawn on the product eco-system in India and the following is a summary of the discussion.

Exotel office

What is the ideal organization structure for a product company in India?

It’s the culture that defines an organization structure. It’s common to find the founder’s background driving the product decisions, for example, a founder with a sales background will ensure the product management strategy is more sales focused.

Shivku had led the discussion with Exotel’s organization structure explaining how his organization structure allowed him to scale his product. Exotel’s teams are divided into Operations, Marketing & Sales, Product Management and Core Technology. Interestingly the support team has been integrated into the Product team in Exotel. This unique structure was done so as to ensure that the product team is closer to the customer.  Customer complaints are usually an indication of bad code and the team that pushed this out this bad code is also responsible to fix it. Even though each team’s responsibilities and targets are clearly demarcated in Exotel, there is a technology person in each of these teams, making them self-sufficient.

Exotel started off with the intention of being a SaaS company, it almost fell into the trap of being a services company post launch. Some of the insights drawn from these discussions were:

1)     Democratically building a product feature set in the early stages is important. But once you cross a tipping point in terms of customers its best to pick and choose features that will drive the product’s engagement in your core audience. If you do not this, you may end up building a services company instead of a product company.

2)     Listening to your sales team is very important. It is upon meeting a lot of customers that the sales team can synthesize patterns (of customer needs). Identifying this common pain point between customers ensures that you are satisfying a broad market need and not a specific problem within a company.

3)     We can’t satisfy every customer with one product and your product will need to scale in the direction you see the best product-market fit. Ensure sales teams have a clear audience to market the product to. If the sales guy comes back saying that there is no product-market fit, then it is very likely that he is selling to the wrong audience.

KPI’s

In terms of KPI’s, B2C companies tend to focus more on the virality and retention  and B2B companies focus on monetization and sales. From the discussions it also became clear that you cannot improve on things that you cannot measure. The focus on which KPI’s to use to measure success keep changing depending on which stage your company is in, for example, in an e-commerce company, it is very likely that initially the focus would be on customer acquisition, it could later change to sales, then margins and probably retention.

Translating the top level metrics which the CEO/Board measures to smaller metrics which your sales/technology team can measure is very important. This helps you correlate any discrepancies and problems that may arise. It also gives you a fair understanding of the success/failure of a new initiative.

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Bharath, from Pugmarks.me, illustrated the above problems with an example. His product management philosophy currently is to create high engagement in a smaller audience. By identifying the customers pain points on why user’s drop-off very early, he was able to divert his team’s resources in fixing this problem, thus ensuring retention. He highlighted a problem with low latency which hindered the user experience leading to poor retention. The team has now spent a considerable amount of resources in fixing this problem, to ensure the product’s KPI’s were met. However, the focus could later change to improving engagement and/or CTR’s.

When do you know and how do you know if you have a product market fit?

Rinka Singh, highlighted his pain points while talking to his first set of potential customers. Although he had met many companies that he initially considered to have a problem-solution fit, these customers never converted into paying customers. It was through perseverance and exploring a little bit further down the value chain that it became apparent to him that he had been attacking the wrong market altogether. Upon increasing the awareness within this initially ignored consumer group, he had faced a tremendous increase in customer response.

Rashmi Ranjan, founder of Shoppers on, highlighted his experience when he launched his product. The product had served a very important need in the market that. It pulled customers in, without the need for a push. He had over 20-25 signups without even going out which indicated a great market fit.

In conclusion, when your customers start to get pulled by your product’s features then it is very likely that you have a successful product market fit.

What is the product manager’s responsibility?

A product manager’s job according to Marty Cagan is to discover a product that is valuable, usable and feasible. Very often the only person who has a complete view of the product (tech, business and sales) is the product manager. A product manager’s responsibility is to find solutions the market needs the most. He very often envisions the path of the product and depending on the company’s resources his responsibilities could also differ.

rt at exotelFrom the discussions, it became apparent that as an entrepreneur you very often end up constantly building and it becomes very difficult to focus on the micro details due to the backlog of features. A product is built in conjunction and not in isolation from the market. Hence, it is very easy to forget the customers who you are building this product for. In the build, measure and learn cycle, we very often forget to measure and learn. It is important to not let this happen, and the recommendation proposed was to change this role to be of a product market manager instead of a product manager as it is very easy to commit the mistake of constantly building without feedback.

Do I know if a product that was built abroad will be successful in India?

Products that are successful abroad and in India seem to have a strong cultural thread which makes it successful. For example, Facebook ties in common user behaviours of sharing and socializing. However, it’s the ecosystem that drives a products success. You need to constantly evaluate and iterate. In India, it is unlikely that a consumer product can succeed without venture funding. This is probably why we see more SaaS business models or a lot of B2B products in the Indian eco-system.

The conclusions drawn were that you need to have a network that allows a product to grow into the scale it needs to succeed. These networks maybe very well developed in markets like US, but India is catching up. It was also pointed out that there is no dearth of venture capital in India. The supply often exceeds the demand. We need to utilize these channels appropriately and grow the product efficiently. People also need to be more vocal about products they like as more often than not, it’s the early adopters who drive the product to success.

Are we bent towards making services in India?

The product round table concluded by evaluating the Indian product companies psyche. The question was whether companies like Infosys and Jugaad were the reasons why Indians leaned towards a services model. Services by nature start and end with a contract. The problem definition is usually laid out by another company and there is very little room for novel products to come out in this problem space. Product companies are driven by a vision, and it is often executed by combining fields such as design, humanities and engineering. It is important that Indian’s focus more on building our strengths in design and humanities. This disconnect was attributed to the poor education system.

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Conclusion

We have the knowledge and network to build great products in India. Although there maybe large inefficiencies in distribution, Indians have had a fair amount of success stories with regards to products. Flipkart and JustDial are great examples of this and we need to work towards improving the network for product entrepreneurs to succeed. From the Launchpad, promotion, content curation, funding, and giving back to the community, there is a lot that can be done to make the eco-system in India more robust to serve its customers.

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“We think more like Product Designers, and less like Product Managers” – Bharath Mohan, Pugmarks.me #PNHangout

(This passage is a summary of the conversation with Bharath Mohan. The audio transcript can be found here.)

Adopters of any new innovation or idea can be categorized as innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%) and laggards (16%), based on a mathematical Bell curve put forth by Everett Rogers in his book titled “Diffusions of Innovations”. The book broadly suggests that if you have a product that is of value, you often times have to pave the path for the consumers to be the beneficiaries of this idea. It’s the product designer’s role to design how a product is used across the dispersion of users. This ultimately determines the principles of design and the features that your product consists of.

bharath-photoWhile I was doing my PhD in IISc, I worked on designing a myriad of algorithms for information retrieval. A typical internet user reads content that could range from currents events, such as the war in Syria, to topics as specific as Product Management. I’ve always dreamt of a system that can bring the most relevant information to a user – without the user searching for it. Pugmarks.me connects the context in which you are browsing through these articles by following the digital trails you leave behind. It then uses its context engine to recommend the next article it considers you should read packaged in a seamless experience.

Designing Pugmarks.me has been an exciting experience, which included research in algorithms, building a real time crawling and retrieval system, and constantly learning from users. We’ve followed some Mantras in our product development – especially because the product requires inputs from multi-disciplinary areas. Everything has to tie in, to each other. Nothing is known prior and has to be learnt along the way. A “product management” approach would not work. A “waterfall” model to design would not work. “Powerpoint presentations” would not work either. Our product management is less of “management”, and more of design and evolution.

The Pugmarks Mantra

Unlike Facebook or Twitter where the problem’s technology core is simple and scaling is complex, our problem’s technology core is complex akin to the likes of Google’s search engine and NEST. Hence, over the past 1.5 years our product has been opened to a smaller set of users which gives us data to refine the product further ultimately paving the path for a larger cross section of consumers to enjoy the benefits of the product.

pugmarks-character-evolutionSome of our Mantra’s are:

  • Be metrics driven: Once we analyse our features metrics we identify ones that are successful and bolster them to make these our ‘super class’ features. While we do this, we bin our users into “Fans”, “Tried but dropped off”, “First day drop-offs”. The ‘tried but dropped off’ is where we focus our energy on. We do data analysis, interviews and direct emails – to understand why they drop off. What we learnt is that they mostly drop off because of the “inconvenience” of a new product; either added latency, extra memory consumption, instability of the browser, etc. These reasons give us new things to work on and improve.
  • Usage versus Users: We are building our product with the goal that even if few users come to try out our product, they all stay back. Between usage and users, we prefer high usage between a small number of users over low usage in a high number of users. If our product cannot engage users for a long time, any amount of marketing will still not help.
  • Focus on real Virality: Virality is often confused with just having a Facebook share or a Tweet button, or slyly making a user talk (spam) about your product in his social channels. Virality for us is the inherent quality in our product which makes the user want to talk about it. We consciously ask ourselves, “What will our users want to talk about Pugmarks to someone else?” These viral loops must be strengthened and not social share buttons.
  • Constantly question your assumptions: In our initial iterations, we felt our users will be concerned over privacy. Soon, we realized that the paranoid would never use us anyway – even if we gave them a lot of control. The ones, who used us, felt we were not building good enough models for them. So, we moved away from user supervised learning to a completely automated learning system. We imagine our current user telling us, “I’ll tell you everything about me. Now help me in ways I’ve never seen before”.
  • Continuous Integration: We never take up features or tasks that take more than two weeks to launch especially one’s which require a lot of people and require extensive build times and planning. If you finish the code and if it’s lying unused, there’s an opportunity cost lost because that code could very well engage a user or maybe incite him to talk about the product to someone else. This is a loss for us, hence, we continuously integrate.
  • Own the full user experience, end to end – From messaging to user touch points to the backend algorithms: A user doesn’t appreciate information until it is delivered in a way that is useful to you and is needed by you. We obviously needed a team that was capable of building this experience end to end. Our team considers every aspect of the product, from the touch points to the user, how the product interfaces with the user and also how the product communicates with the user using the technology algorithm we created.

pugmarks-airplanes#PNHANGOUT is an on-going series where we talk to Product Managers from various companies to understand what drives them, the products they work on and the role they play in defining the products success.

If you have any feedback or questions that you would like answered in this series feel free to tweet to me: @akashj

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Billbooks is helping ease the invoicing for the freelance economy

It has never come as a surprise that the best startup solutions and most passionate entrepreneurs are the one who end up solving their own pain points. For Sagar Kogekar founder of Billbooks the journey began with the advent of his startup Webwingz which he started at the age of 18 years, engaged in client servicing. He would be able to provide and do the client work but the part about billing was always a hassle. Invoicing and billing like most people was done in Word by him.

Soon Sagar realised the potential in the market. Rather than jumping head first into developing the solution Sagar took his time and did his research to find the niche he was targeting. By 2012 he had gone full time into developing Billbooks as a product with his team. Billbooks was his take on creating an online invoicing solution for small and mid-sized businesses.

On signing up for the first time the user is gifted three invoices to try and experiment with the product. Irrespective of the package a user takes, all the features are uniformly accessible on the platform. Which is a big plus. The pricing model begins from as low as $10 per 20 invoices upto 60$ for 200 invoices. With no monthly rental and expiration of the recharge, the user is free to use the invoice credit as and when he wishes.

The product is aimed at North American and the European markets with language customization in five languages to tap the local clientele. Sagar claims the user base to be in the early hundreds with nearly 10% of them being paid customers of the product. To say what an ideal Billbooks customer looks like would be an exercise in futility with diverse occupational users ranging from a video jockey based in Spain to a wood artist in Australia to a piano teacher in the US being proponents of the product. The unifying factor being the freelancer or the small enterprise economy.

Billbooks is not without competition and claiming otherwise would be unjust. The space for online accounting softwares even those with a focus towards SME is a crowded one. Solutions from big names like Zoho and Intuit, and products like Freshbooks already exist in the market. With many of them offering more utility in the form of mobile products at a slightly higher price point. But the USP of Billbooks would lie in offering a simple approach to a more professional looking billing solution for the freelancers and helping keeping track of partial payments, scheduled reminders and giving free estimates. The service should be an ideal product for people with extremely limited invoice requests a month and their model actually encourages that with no expiry on the invoice credits. 

In the coming months of the product timeline we can look forward to having native mobile products for the Android and iOS ecosystems in place for Billbooks. Features like the Freshbooks import option are already in place making it a breeze to get new users onboard and be up and running on Billbooks quickly.

You can show Billbooks some startup love and sign up to let us know what you think about the product! But the fact remains there is a niche that Billbooks fulfills and Sagar is happy building a product for that.

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Design in Indian Startups

A brief look at the state of the Indian startup ecosystem from the lens of design and how well it is understood or misunderstood. How the next generation of the technology startups are battling the design challenge in a globally connected ecosystem for the right consumer audience.

According to Dave McClure the founding team of a startup should include the holy trinity of a hacker, hustler and a designer. In simple terms a dream team comprising of members responsible for the technology, business/marketing and the design. Dave is no stranger to entrepreneurship or India, and as the founding partner at 500Startups (internet startup seed fund and incubator program based in Mountain View, CA) each of their accelerator programs have seen interest and presence from a number of Indian startups.

“Holy trinity of hacker, hustler and a designer”

This then begets the question of what exactly is an “Indian startup”? Unlike Israel a nation known both for its military prowess and high-technology startups along with the fact that it has the highest per-capita VC investment in the world. Startups in India like the nation itself conform to no unifying sector or theme. On one hand we have Delhi based Langhar helping connect foodies with authentic home cooked local cuisines on the other we see SarkariExam a portal dedicated to helping people find government jobs. Even after applying the filter of technology and technology enabled startups with their constantly blurring boundaries in the internet & mobile space, the bandwidth of the spectrum is still large.

If one goes by the estimates of AngelList, a platform dedicated towards the startups and the investors; there are 1500+ startups in India. This by no mean implies that all of them would be independently successful or have a profitable exit. Many of them would eventually shut shop and might not even exist the next summer. Despite this uncertainty and the increasing belief of Indian founders in their idea have led to a rising entrepreneurial activity. Catering to everybody from the hyper local audiences to products specifically built for the customers abroad. Helping us establish the fact that there is no single way to explain or define as to what constitutes an Indian startup. If question of the Indian-ness wasn’t tough enough the attention to design has increased the complexity of the understanding manifold. Invariantly a handful of startups like Cleartrip (travel), Zomato (food), Paytm (payment) and Hike (messaging) have become the poster boys for the best designed products being built in and in certain cases for India. This then progresses us to our next challenge of “What is design in the context of the startups and what is the role of the designer?”

Depending upon who do you ask, one is bound to get various forms and interpretation of what constitutes design? Making it easy to complicate things for the humble hackers and the hustlers trying to fathom as to why their designer is unable to deliver in the face of the challenge for their startup. Going over from formal the definitions provided in academic institutions of design being ‘a noun and a verb’ to the one followed by design practitioners whereby they try to highlight the difference between “art and design”. One thing that emerges is that, design has been and will always remain at its core a form of problem solving.

“Design has been and will always remain at its core a form of problem solving”

Had things been as black and white as they seem we wouldn’t have startups explaining their design strategy in terms of the visual design. Or in the case they understand the value of design keep looking for that one mythical designer who could solve all their problems. With the ever changing relationship and interaction of humans with technology; and it’s constantly evolving nature the boundaries of what explicitly is the job of a designer or the hacker is quickly overlapping.

Take the case of Rasagy Sharma who after finishing his undergraduate degree in computer science & engineering joined a Bangalore based startup as their UX Designer. One of the first ‘design’ hires in the team comprising of hackers, leading him to explain his role to the people around him. If the challenge of understanding what exactly entails in these new design roles wasn’t tricky enough, Rasagy highlights the emerging debate of ‘Should designers code?’ “The answers vary from the extremes of ‘Designers can code and should code’ to ‘Designer cannot code and is not expected to code’ with a comfortable middle ground emerging in the form of ‘Designer can code but is not expected to code’ ” says Rasagy.

“Designer can code but is not expected to code”

But if there is no one designer who can solve all of the problems of the startups which range from visual design & interaction design to in certain cases industrial design; and finding the talent is tough. Then shouldn’t we see the limited resources of the startups being spent on the function (technology) than form (design and by extension user experience)? One of the most interesting theme to emerge while talking to a number startups as a part of the research was their unanimous agreement in pushing design forward for their product. Neeraj Sabharwal who heads the design at the Hyderabad based NowFloats quotes Tom Peters when he says “The dumbest mistake is viewing design as something you do at the end of the process to ‘tidy up’ the mess, as opposed to understanding it’s a ‘day one’ issue and part of everything.” Even in the case where the technical founders thought of design as nothing more than a marketing gimmick they did approve of increasing the resources dedicated to certain design activities by either hiring talent or outsourcing the process. And putting the bill under what they felt was the ‘cost of customer acquisition’.

The cost of starting an internet business is decreasing by the year and in no other period of history have we seen more entrepreneurial activity than the present. Faced with the simple market forces of consumer choice, a positive user experiences is a simple measure of how efficiently the technology works to help the user achieve his goals. In a somewhat surprising trend that in hindsight makes perfect sense, some of the best designed startups being built in the country include a designer as a part of the founding or the founders atleast have the design aesthetics in place to drive things forward.

Eventifier is being built in the southern city of Chennai at The Startup Center. Eventifier helps keep all the social media chatter around an event including the conversation, photos, videos, presentation decks in a single place. They are one of the few startups using the hacker, hustler and the designer approach since the day they began. Mohammed Saud holds the mantle of the Chief Design Officer and one would give weight to his belief when he says “Being equally proficient in all facets of design even when their underlying principle might be the same is difficult.” His solution is the one that is increasingly becoming common, become proficient in one form of design yet understands the other well enough to guide somebody with your vision. A similar ideology was put forth by Arun Jay, who amongst a number of other claims holds the post of the principle designer at SlideShare and the senior UX designer at LinkedIn. By academic training Arun began as a communication designer but his experience with film making, photography and web based technologies makes him the ideal choice for the unicorn designers so many startups look for.

But it wouldn’t be fun if there weren’t a few startups breaking the mould. HealthifyMe and NowFloats are two startups which were a part of the Microsoft Accelerator program in Bangalore. On one hand we have Neeraj Sabharwal from NowFloats with no formal training in the various disciplines of design yet relying on his industry experience and understanding of design thinking principles to lead the charge. On the other we have Tushar Vashisht co-founder of HealthifyMe attributing the fact that “Lack of a dedicated designer in the founding team even with the team valuing design, cost them precious resources in the decision making and product building exercise. With HealthifyMe treating the user experience as an integral part of the product building process getting Rohan Gupta as a designer onboard has positively affected our shipping time.”

But believing that a well-designed product is the end all in the product building exercise would be plain naïve. Design is one of the integral processes amongst the host of other responsibilities held by the hustlers and the hackers which make a product successful. Brij Vaghani is the founder of live traffic monitoring service, Traffline which currently operates in three metropolitan cities. His team is working in close association with a design studio for the soon to be launching next version of their product. “Even though we understood the value of design, the founding team relied upon our core strengths of technology in the early stages of the product. An approach which we feel might have had an impact on the metrics we use to track the product success but something that was within permissible levels”

Where are we headed? Great design and technology have always existed. The founders are still looking for that elusive designer who can handle all their design problems, but as unicorns go those beings are still rare to find. The consumer internet is nearly twenty years old, the smartphone nearly six and the tablet less than four. Yet the potential of the startups building upon and specifically for these platforms is seeing an exponential growth. We haven’t even begun scratching the surface of the potential and can’t predict the trajectory of the startup economy in India serving an internal audience of a billion plus people and catering to those abroad. But the fact remains that the designers seem to have finally found a voice and Indian startups are rearing for them to go.

Author’s Note: This article was written for a collaborative publication: Create Change for Kyoorius Designyatra 2013 produced by Kyoorius and British Council, India and is a part of British Council’s design writing programme.

The post has been slightly modified for the web by adding of the appropriate hyperlinks to the startups and the resources mentioned to aide the reader. You can download the PDF version of the print magazine in all its glory here. The article is on page sixty-nine.

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Reduce Data – Programmatic Advertising Platform

Reduce Data is a programmatic advertising platform. Reduce Data helps advertisers buy media efficiently using programmatic means – machine learning, real-time data driven optimization and real-time bidding. Asif Ali is the founder of Reduce Data.Asif has over 15 years of technology experience. He previously ran ZestADZ, a mobile ad network (acquired by Komli in 2011). ZestADZ was a global mobile ad network with presence and advertisers in over 25 countries. Before that, Asif was the CTO / Co-founder of a wireless and enterprise startup – Threesixty Technologies Sdn Bhd, in Kuala Lumpur, Malaysia. ThreeSixty maintained app stores on Carriers, built and rolled out mobile commerce solutions such as prepaid SMS topup solutions and had the top 2 telcos – Maxis, Celcom, Top banks – Public bank and Ministry of Education, Malaysia as its customers. The current team strength I s about 15 with 4 people in US, rest of the team is in India. The team is roughly 40% sales, 40% engineering and 20% operations.

The Company

Reduce Data is an early-stage company offering a programmatic advertising platform. They pivoted recently from being an analytics-focused company to a company that offers an integrated platform for media buying and analytics.

Asif says the idea came about in his last ad network, where he found advertisers unable to effectively measure and optimize ad campaigns across various networks. The scale and size of data that was being generated in advertising was huge and there were very few platforms addressing this scale to drive efficiencies. It is also estimated that nearly 30% of media spends are wasted. Reduce Data was started as an attempt to solve this problem.

Reduce Data is what is called as a Display Advertising Platform. Display Advertising Platforms typically focus on Banner Advertising as opposed to delivering text ads within search results (like the way Google does) – see understanding display advertising for a simple view of the display advertising platform and marketplace.

Any company that needs to buy advertising typically buys media from various platforms (this varies, depending upon their goals). Display advertising is one such kind of platform where media can be bought.

Let’s say if Flipkart wants to buy media to promote its new tablets-only store.

  1. They will sign up with Reduce Data
  2. Either through self-service or with the help of Reduce Data’s team, they will identify and select the right target audience and segment of traffic (for example – Male / Females, aged 25 and above in urban centers only and those who are available within a list of top 10 cities)
  3. Assuming that such audience information is available, Reduce Data’s team will make that available and kick start the campaign.

When a user visits a web page

  1. The publisher (like Times of India) auto requests the ad exchange for an ad
  2. Ad exchange will in turn send this request to Reduce Data and various other buyers to ask them whether they want to buy the user.
  3. Reduce Data, will check whether it has relevant information about the user.
  4. Reduce Data’s machine learning algorithms predict whether the user can be bought and if so at what price.
  5. Assuming that Reduce Data wants to buy the user on Flipkart’s behalf and assuming that this user belongs to the right target audience that Flipkart wants, it will bid and either win or lose the auction.
  6. On a win in the auction, the Flipkart ad is shown to the user.

This automated auction called Real-time Bidding (RTB). This entire process 1,2 and 3 happens in 1/10th of a second.

The Product

Reduce Data provides the best of programmatic and a measurement platform in a single platform to its customers (advertisers and ad agencies). The programmatic ad platform allows them to display ads for their clients on a large number of publishers’ sites, and for the most targeted set of audiences. The measurement platform allows their clients to analyze the impact of their campaigns and make the most efficient utilization of their ad budget. Such an integrated platform allows them to offer a low-cost, integrated solution to its customers.

Some of the features of the platform are:

  1. Programmatic Buying capabilities: Reduce Data is focussed on delivering ROI by leveraging superior programmatic approaches.
  2. Measurement and Programmatic in a single Platform: Advertisers using Reduce Data can leverage Reduce Data’s analytics to measure advertising spends through the same platform they use to purchase ad space.
  3. Rich Media and Video Campaigns: Reduce Data allows video campaigns to be run in addition to other media-rich ad campaigns such as MRAID-compatible (a mobile rich media standard) HTML5 mobile campaigns.
  4. Web and Mobile Advertising: Allows brand advertisers to reach both web and mobile users using a single platform.
  5. Retargeting: Re-targeting enables advertisers to follow the user after a visit to a website. This approach generally enables better conversions and improves ROI for the advertisers.
  6. Audience Segmentation: Reduce Data has partnership with three data providers to enable delivery of highly segmented audiences (available currently for US and UK, more international data providers are being added).
  7. Self Service Console: Reduce Data enables self-service advertising through an easy-to-use, self-service user interface to manage the campaigns and check its effectiveness.

Technology

Core of Reduce Data is a technology platform that participates in Real-Time Bidding as a Demand Side Platform(DSP). Given the fact that the real-time bidding protocol is run across these players for every visit to a site, the turnaround time from a DSP has very stringent requirements. Typically, an Ad exchange expects the response from a DSP within 100 milliseconds; including network latency (turnaround time includes time taken to process the bid request, and time taken for the message to travel from exchange to DSP and back). Hence there are 2 technology challenges they need to solve:

  1. Low response time: The time taken to process the bid request by Reduce Data software has to be very small. Reduce Data currently can process a request in 4-6 milliseconds.
  2. Low network latency: The time taken for roundtrip between Ad Exchange server and Reduce Data server. Hence the location of the servers matter. They have tried to use Amazon Cloud, but aren’t happy with the costs and latencies, and are deploying datacenter infrastructure close to the supply side partners and exchanges.

Differentiators

This is a highly competitive market and many of the features they offer are standard features offered by lots of players. A few features that differentiate them from rest of their competition are:

  1. Measurement Tools: Reduce Data provides an integrated platform which very few players offer. However, integrated doesn’t mean reduced set of features –Reduce Data offers full blown real-time reporting that enables advertisers to effectively measure and optimize their ad spends without having to use a third party platform.
  2. Superior programmatic technology + big data driven optimization
    1. Real-time machine learning systems with various algorithms for various needs
    2. Big data technology driven real-time data processing / analysis capability which is extensively used in the feedback loop to drive highly optimized ad spends

Market

According to EMarketer’s latest forecast, RTB (Real-time bidding, the programmatic advertising) portion of digital display ad spending is steadily increasing, from 8% in 2011 to 19% in 2013, and projected to be around 29% in 2017 – $8.49 billion – a huge opportunity.

Reduce Data has a dedicated Sales team, and even though they have launched very recently, they see 15-16 leads a week, and all their current clients are paying ones. They expect to reach $2-3M revenue within next 12 months.

Building Credibility

They need to build credibility in the market that is filled with competition. To ensure that brand gets built quickly, Asif has moved to US, and is focused on marketing Reduce Data. Through tech meetups, publishing whitepapers, speaking engagements, getting published in print media, and of course by delivering good value to his clients, he hopes to build Reduce Data into a credible player in this space.

India offering

They recently launched an India offering too. This is a smart move from them because this helps them to position themselves as a big player in this space which has presence in multiple countries. India being an important market, some exchanges like Facebook Ad Exchange, tend to give preference to companies that have India presence when they let DSPs connect.

Future releases of their platform are likely to focus extensively on improving algorithmic and data processing capabilities.

Competitive Landscape

This is a highly competitive market. There are a large number of very well-known DSP in the market: Adroll, Dataxu, Mediamath, Turn, Google (InviteMedia), AppNexus, Komli Media, etc. Since all of them connect to same Ad exchanges (and hence have the same access to ad inventory) and offer similar functionality, it is hard to distinguish between them. Competition is based on pricing and ease-of-use. Such a crowded space with little differentiation will mean that prices will be squeezed and this will impact new players like Reduce Data.

If we do try, we can see 2 areas of competitive differentiation (other than pricing, of course!):

  1. Inventory access: Though all DSPs aim to connect to all Ad Exchanges, some have better access than others. For example, Facebook hasn’t allowed all DSPs to come on their Exchange, and so it might disadvantage a few DSPs. Similarly, some publishers (too specialized, localized, etc.) may be available only some specialized exchange, and not all DSPs may be connected to them.
  2. Effectiveness of data-based decisions: DSPs use data to make the decision about which impression to bid on. Decisions depend on proprietary algorithms, data available about the user and processing power, and this distinguishes different DSPs.

As the space evolves, vertical integration is a possibility – DSPs getting acquired by (or acquire) upstream or downstream players. Such a consolidation is more imminent as RTB grows at a rapid pace and become critical to display advertising.

The Road Ahead

Display Advertising is undergoing significant changes over last few years, with technology creating never-before opportunities for innovation as well as disruption. Demand-Side Platforms have the potential to make media buying and campaign management extremely effective and provide significant ROI to the advertisers. Reduce Data is in a very competitive space with large and well-known competitors. This industry will evolve along 3 dimensions:

  1. Data-driven decisions: One of the promises of DSP is to offer compelling value using deep data analysis. Reduce Data needs to continue to focus on its machine learning and big-data capabilities.
  2. Tools: Brand safety, Measurement, ROI calculators, more variety of algorithms etc. are keys to interest brand marketers to switch to new platforms and Reduce Data will continue to innovate and rollout various tools as per the needs of the marketplace.
  3. Media focus – DSPs tend to focus either on Video, Online or Mobile and that is going to continue for a while. Reduce Data will eventually need to choose a sweet spot for itself in one media.

One of the things going for Reduce Data is the credentials of its founder: Asif has deep experience in the advertising space from his prior company (which he sold to Komli). Another is the fact that they are an engineering driven organization and are focussed evolving the platform faster than the incumbents in the marketplace.

If they execute well on these dimensions and leverage their technology focus and industry connect, they have a real good chance of becoming a force in this fast-evolving space and carve out a name for themselves.

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Clearing The Air: 3 Roles Indian IT Providers See as Product Management

The Indian IT industry is over $100bn, but still struggles in creating global IT products.  While there has been the occasional Tally, Ramco, or Finacle, there is not much else.  One critical reason I attribute this to is that Indian IT companies do not really understand how Product Management can create long term customer value and business sustainability.  While one can argue that there have been more of these companies in the last 5 years (Livemint: Tech Startups), the next 5 years will determine whether India has actually created global products.

Most Indian companies view product management as either of these: Product development, delivery (or project) management, and marketing (or marketing communications).

Role 1: Product Development:  Great at problem solving, developers are expected to provide insights on what they believe the customer wants, and create products based on their understanding.  Let’s admit, very few developers are comfortable socializing with customers (aka Raj Koothrapalli – awkwardness multiplied a few times).  I have often encountered developers spending hours defining products, with limited idea on how the customer environments actually are (a few minutes meeting customers would have saved those hours).  The smarter ones are able to engage with customers, but put them in front of a business strategy plan, and things slow down again.  BTW, this may work for startups, where the founder often has a clear intuition about the idea, but when they have to scale revenues up (to new customers or increased wallet share of existing customers), most struggle.

Role 2: Delivery (or Project) Management: They engage with customers and internal teams, to co-ordinate schedules and resources.  However, expecting them to gather requirements because they are engaged with customers, based on which products are created, is better suited for an IT services delivery, not for sustainable product IP creation.  Today, most Indian SI companies are struggling as they attempt to create product IP and value, because of this belief and expectation from delivery managers to “productize” based on customer specific projects.

Delivery and Services Approach

Role 3: Marketing (or Marketing Communications): Marketing teams are definitely engaged with the market, but most are focused on lead generation and marketing communications, and the execution of those plans, rather than gather actual feedback.  Thus, what we get are customer leads, with very little investment in market research aligned with direct customer engagement.  Recall the last time you attended an IT vendor’s event, and exchanged business cards with their marketing person – I can’t!

As long as Indian IT companies continue to depend solely on one of the above to help create long term products, they are going to struggle in creating global products, and building the valuations that Apple / Microsoft / Google / Salesforce (and many others) have.

I end with my definition of Product Management – engagement with the market and customers, through multiple channels, to understand stated and unstated needs, analyze the potential opportunities, align with corporate strategy, and work with sales, marketing,  and development teams, to translate the needs into a multi year product roadmap, eventually creating products that customers desire (read Apple, though the approach may have been slightly different 🙂 )

If your current teams are geared and empowered to do this effectively, time and again, then you maybe in the right direction to be hailed as an Indian product company (if not already) soon.

Guest Post by Angira Agrawal, AVP and Country Head – Cloud atNEC India Pvt. Ltd

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Keeping Data Theft Prevention Simple & Green!

Zarir M. Karbhari is the Chief Architect of CopyNotify! & Founder of CygNET Systems Pvt. Ltd shares his journey of diversifying a outsourced programming services company into a software product company. The company was founded in 1995 with a focus of offering hi-tech outsourced programming services for companies based all over the world. The company maintained this hi-tech niche by ensuring that most of its projects involved network programming, communication protocols and device driver development for various operating systems.

Decision to diversify to product development — What factors contributed to this?

Based on inherent in house expertise and experience of over 100,000 programming hours in the field of application development, networking, security and communications, a strategic decision was made by CygNET Systems Pvt. Ltd. in 2007 to move up the ‘value’ ecosystem and develop a network security software product which catered to the needs of the small business user which was at that point a perceived need of the hour.

Explain the journey of evolving your core product. What aspects and feedback were important in this process?

Security against data theft of source code was becoming paramount in the outsourced programming industry in India and many nightmarish stories of how data was being copied in an unauthorized manner and without detection via USB flash drives were beginning to surface. So theft via USB became the initial ‘problem to solve ‘. Instead of searching the web for similar
anti data theft products and cloning them, the engineers at CygNET Systems Pvt. Ltd took the route of talking to system administrators & small business owners and created a vision specification for CopyNotify based on their feedback.

The company had identified a problem, spoken in detail to those who were facing the problem and then went on to design a software product to solve the problem. From a simple beginning of just detecting the insertion of USB Flash Drives, the product soon evolved into a full fledged Data Security Software for small office networks.

Can you share details about your products.

CygNET Systems currently has released 3 products.

1. CopyNotify! (Data Protection that went GREEN)

CopyNotify! is an entry level data protection software designed specially for the small business / SOHO networks. The software deploys anti data theft measures for computers on the office network by disabling the copying of data to external USB drives and Smart Phones, blocking internet connectivity via portable modems / data cards as well as restricting browser based uploads of data.

The software monitors user logon activities such as privilege levels, remote logons and invalid logons. Software installs and un-installs on the network are logged as well as rogue devices attempting to access network resources can also be detected.

CopyNotify! goes GREEN in data protection by also offering electricity saving features such as switching off IDLE machines and the auto shutdown of computers after office hours.

2. Insta-LockDown ( Data Protection at a Key Stroke )

The personal edition of CopyNotify! is called Insta-LockDown. It has been designed for single computers / laptops and locks down the copying of data with a simple keystroke combination.

Insta-LockDown restricts the copying of data through various routinely used data channels such as the internet, file attachments, removable USB devices and Bluetooth transfer to smart phones and comes in handy when single PCs are used by multiple users and protection of confidential data is a concern. It also plays a protective role against data theft when administrative privileges are granted to multiple users of the same PC or the admin password has been inadvertently compromised.

3. GreenNotify! (Energy Saver Software)

GreenNotify is an energy conservation software that reduces electricity bills of small businesses by automatically switching off computers that are not being used and shutting down computers automatically after office hours.

Your views on how your offering is differentiated in the market / Competitive advantage you have over others in the same space. Your plan of achieving success in a crowded and mature marketplace.

During this endeavor of developing a security software, CygNET Systems Pvt. Ltd in its strategy never tried to compare or clone its software with those released by its perceived competitors. A data security need had been perceived and the requirement of simplicity of acquisition, cost and expertise for Indian conditions had to be addressed.

In today’s digital world, protection from data theft is crucial and soon will become a ‘must’. However for small business users, the prohibitive acquisition costs of sophisticated Data Loss Prevention software and the level of IT expertise required at times results in data security being ignored all together. Also more often than not, the DLP software is an overkill in terms of ‘cost versus capability’ for small organizations due to non suitability of all available software features.

With CopyNotify! and its affiliated products, data protection software is made as easily available and affordable as a ‘wada pav’. A ‘wada pav’ is a popular spicy fast food native to Maharashtra. It is filling, inexpensive and caters to the masses.

Keeping the analogy of the ‘wada pav’ in mind, CopyNotify! offers data security solutions that brings enterprise level data protection to the average computer user. The software does basic data protection, is inexpensive in acquisition, feasible in implementation and simple enough to accepted by the average business user. CygNET Systems firmly believes that in India unless the use of data security software percolates down to the average user, an acceptable deterrence against data breaches will never be achieved whatever the size of any organization.

Very low cost of acquisition, suitability for Indian conditions and ease of use of the software products developed by CygNET Systems Pvt. Ltd are already paying rich dividends by the way of increase of sales.

Key learning from selling to customers

Feedback is crucial for a good product. Right from its inception, the team behind CopyNotify! have taken the feedback of users in the field, tried to understand the problems they face in a routine day and then design the software to alleviate these problems. This principle of user feedback based feature additions has made CopyNotify! very popular with its existing customers.

Your views on relevance or importance of leveraging channels and partnerships to sell.

It is far too expensive and time consuming for a startup to set up its own channel of resellers / distributors or having its own sales force. Partnering with existing VARs/Distributors/Resellers is best way to proceed as these organizations already have existing sales networks which can used to push the product out to the market.

The biggest difficulty is getting a partner / distributor to sign up with a start up is the ‘curse’ of being an unknown brand as the effort to push non branded product becomes more time consuming and expensive for the partner hence the reluctance to partner with a start up.

Your views on alliances and its benefits/pitfalls.

For any software product, alliances should not be shirked away from, be it technical, financial or by the way of sales and marketing however care should be taken that all is in ‘black and white’ and immense care should be taken that in the hype tornado of ‘promises and assured success’ the best interests of the start up is kept in mind at all times.

Your views on networking with industry colleagues and participation in conferences. The benefits or pitfalls of the same.

Networking is great provided one can get themselves in a group that is one step ahead of one’s current stage of business and can actually help with getting more sales. Networking is about getting the right connections to make more sales and not just about collecting visiting cards. 

Your message for product development entrepreneurs for India.

You might have a great software product but unless you know how to tell the world about it, it will never sell. If it does not sell, your idea was of no use in the first place.

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India has the potential to create great product companies. The ecosystem is evolving and we are glad to be part of it

Anup Tapadia, CEO, TouchMagix, has revolutionized interactive systems with his innovation. Driven by an aspiration to innovate and deliver great experiences in gesture based interactive display systems, his products have reached numerous brands and consumers since the company’s inception a few years back.


His work has earned him recognition from the likes of Bill Gates, Dr. Abdul Kalam, Dr. Raghunath Mashelkar, R. Balki and Azim Premji who have acknowledged his sheer intelligence and tech driven entrepreneurial spirit. The British Government awarded him the “Global Young Creative Entrepreneur” honor in 2010.  In an interview with ProductNation, Tapadia talks about his aspirations in making India an innovation hub and to develop world-class products.

You offer a variety of interactive display solutions. What is the market potential for these products?

At TouchMagix, we are focused on creating next generation interactivity and engagement technology and have created products that use motion, gesture and touch for various applications. We manufacture and supply both technology and equipment that have been creating global standards for giving audiences a lasting impact and brand impressions. TouchMagix has a variety of interactive display products like Interactive Floor, Interactive Wall, Multi-Touch MagixKiosk & Table, MagixFone and rich capabilities to build customized solutions and content.

Customization of content is an aspect which increases the market potential of these products manifold. These applications range from creating engagement and experiences for brands, creating an interactive ambience in hotels and lounges, to marketing initiatives at on-ground activities. This technology is also being used for children entertainment, education and health. Being unique in nature, it enables brands to create conversations with their consumers, thus enabling them to become one with the brand. Over the years, we have penetrated globally across a variety of sectors including real estate, banking and financial sector, education, information technology, pharmaceuticals, healthcare, and hospitality sectors.

Is the market willing to bet on new products?

Today, Indian and global brands are looking at innovative avenues and channels to communicate with their target audience be it customers or internal audience. With brand fatigue becoming a cause of concern for brand managers, interactive products like TouchMagix is an ideal solution. The real USP of our product is in the usability, open SDK interfaces and core tracking technology IP which allows us to track gesture/touch at a higher accuracy level and speed.

How soon was /will be your company feasible in terms of generating revenue? What are your sales projections?

We have been profitable since the first year we started business. More than a million people have engaged/experienced TouchMagix products world wide and the number is growing continually.

Indian IT industry has largely been IT services focused. What has been your experience in building products? What were the challenges faced?

We firmly believe that India has the potential to create great product companies. Our experience in building products based out of India has been quite interesting. Building electronic products is not an easy task in India as it is capital intensive and expensive. A major challenge was to find the right people and retain them for R&D based jobs. The ecosystem is evolving and we are glad to be part of it.

Do you feel the Indian ecosystem is software-product friendly? What is needed to create world-class products?

The eco-system is still evolving and education needs to promote research driven product innovations. Most of us prefer the safer route and hence many end up in starting service based companies.

For a young 24-year old guy to have been honored with the ‘International Young Interactive Entrepreneur Award 2010’ by British Council, and ‘Best Young Entrepreneur Award’ by a business magazine, says a lot about your achievements.

I was drawn to computers when I was just seven. In the subsequent five years I mastered over 15 different computer programming languages. Art and Technology have always intrigued me. When I saw Tom Cruise playing around with large displays in Minority Report, it triggered a series of thoughts in my mind on the possibilities of this kind of technology if brought to reality. This led to launching of TechnoKarma Labs. At TechnoKarma, we undertook many projects in the IT networking space such as creating low-cost firewalls and a low cost wireless mesh router, which enabled Wi-Fi connectivity in IIT Pune’s campus. One of the projects from TechnoKarma Labs was later spun off as TouchMagix.

My passion and perseverance to create a truly Indian product for global markets was the reason for my success.

You have also received appreciation from the likes of Dr. APJ Kalam, Bill Gates, Azim Premji and others. How does it feel to be acknowledged by these eminent people?

It is overwhelming when stalwarts from the industry appreciate your efforts. These endearing comments reinforced my confidence and also encouraged me to keep moving on the path of innovation.

What is the road ahead like for TouchMagix? Where do you see the company going?

While multi-touch technology revolutionized the way we currently perceive and engage with technology, gestures and motion will make user-interface even more immersive and instinctive. The potential of this technology is great today, and we are seeing that with the response for our products globally.

From keyboard and mouse to touch and gesture, the human interaction with devices have evolved in a big way to help people interact in a manner that is appropriate for their lives. In future, we aim to create products and content that would make human interaction with devices more intuitive and enable us to create memorable experiences.

What learning would you like to share with others from what you have learnt?

For emerging entrepreneurs I would suggest it’s essential for one to work at one large corporation and one small start-up to experience and understand the functioning of both setups. I feel India is a land of great opportunities and there is never a better time than now to kick-start new business in a growing economy.

TouchMagix Products

  • MotionMagix™) converts any floor/wall into an interactive space for educating and engaging users with fun, action and excitement.
  • MagixTable™ is world’s thinnest 40 point multi-touch plug-n-play surface computer table loaded with rich application suite and easy customization for corporate and entertainment application.
  • MagixKiosk™ 32″ 1080p HD can be used in 4 different form factors like table, tilted kiosk/workstation, high bar table, or as a standing flat display.
  • MagixFone™ is Any Display Any Phone interactive technology which gives your audience the ability to control the screen for playing games, answering quizzes, sending social messages and much more using their mobile phone.
  • MagixFone™ hardware picks-up the call or interprets an SMS which allows the user to use his/her mobiles keypad or voice to interact with the display.
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The Atypical Product Manager – Nishant Pandey, Naukri.com #PNHangout

Every Byte Counts 

Earlier I worked as a field engineer in Schlumberger, providing Drilling Services. Drilling is a very high tech, and arduous task; whether it’s on land, on a river, on deep waters. My job on any rig was to determine the direction of the oil well and properties of the rocks we burst through – its density, its resistivity, its shear strength, its porosity. We did this via real time telemetry of data from sensors placed on the rig as well as from sensors that were sent many kilometres down into the earth. All this data came to our computers in bytes of 1s and 0s. We had to be rigorous in analyzing every bit of this data as any misinterpretation could mean the difference between finding oil or water.

The Atypical Product Manager

After working for Schlumberger for 8 years, I did my MBA from ISB-Hyderabad. There I met Hitesh, then the COO, and he hired me to Infoedge. Having a background in oil drilling and sales, my knowledge of the internet was limited. I wasn’t hired for any specific, well defined role. When I joined, I did  a bunch of assignments related to Online Marketing, TeleSales, Competition Assessment etc. After a few weeks of such ‘consulting type’ assignments, I was asked if I would like to head the Product Management team of Naukri.com.

My understanding of what a Product Manager does was next to nil. I assumed programming was an essential part of this role. However, Hitesh and Vibhore allayed my concerns, explaining what my role would be. I was told, by way of an example in a lighter vein, “If you leave Naukri.com to the Techies, it would look like tables of data, with very little aesthetics to it. If you leave it to the Marketing team, all you would see is banners all over the site”. Although this was clearly exaggerated, they went onto to explain that this means that the Product Management team acts as a pivot, to the Sales, Marketing, Technology and other teams, keeping the many teams’ expectations in consideration while evolving the Product in a way that benefits the users. This sounded interesting and it seemed right down my alley, so I was excited to take this challenge up.

Key Victories

The reason I brought up my experience as an Oilfield engineer is because it built a rigour to pay attention to details of planning and nuances of execution. Whether it is drilling for oil or whether it’s for improving an internet product, making logical, data based decisions and teamwork are key to success. Moreover, in both the jobs when you make a pitch to various stakeholders, the recommendations have to be crisp, strong and  factually correct. So, interestingly, I was able to bring learnings (a lot more than one would imagine) from my previous job and apply them to challenges here.

  1. Communication: The goal for any business is to increase the returning visitors. In our case the only way to achieve this was having relevant jobs for candidates and communicating them to our users in a manner that was effective and didn’t look like spam. Hence, we worked on every email communication to be crisp with a clear call to action. The subject lines, signatures, salutations, the contrast in colours, the font type and font size had to be well thought through. The team also brought about a complete re-vamp to many aspects of the site communication and interfaces, and we have sometimes seen a massive jump in our metrics just because of this.
  2. Transparency in information and no silo’s: Every stake-holder must be privy to the same information, and every one must be spoken to in the same voice with the same data. This has been one of the critical things that the Naukri product team ensures, especially in terms of decision making and dissemination of site metrics.
  3. Improving algorithms: Naukri has over 15 algorithms running on different applications, and sometimes you see 3-4 flavours of the same algorithm depending on which page you are querying from. The challenge of matching a CV to a job is that a CV, which consists of thousands of words needs to be matched with a Job Description, which also consists of thousands of words – and our algorithms have to determine which are the most important of those words that need to be matched, and which words are to be ignored. The search and match algorithms have in recent times changed significantly from the earlier versions of them. We have had fantastic results and this has been thrilling for our team.
  4. Growing the team: The up-curves in advancement in Naukri have been good because of the superior PM’s we have on board. It has reached a stage where the product team has become greater than the sum of its parts. One person cannot know everything about a product especially with a complex product like Naukri. So the only way to achieve effective results is to have a very strong group of 7-8 people amongst whom collectively every piece of knowledge is available, and that they work as a transparent team within and with other teams.

The Power Of The Marginal

I’ll just sum up with something Paul Graham talks about in his essay ‘The Power of the Marginal’. He states that “… outsiders, free from convention and expectations, often generate the most revolutionary of ideas”.” In my personal case I was an outsider to the internet business and that helped me contribute new ideas and ways. In hindsight, my exposure to sketching, photography, reading, writing and an interest in Psychology helped me appreciate the work that goes into the Design and Marketing of our product, and allowed me to contribute to it.  This automatically involves you with the other teams at a whole new level and leaves a lot of room for collaboration. Who knew hobbies and interests developed decades ago would help me shape my job? Hence, I feel a PM with a diverse background, someone who is as good with Divergent Thinking as with Convergent Thinking, someone who is as comfortable with artistic subjectivity as he or she is with logical objectivity, could be more effective than a PM with an only technology background.

#PNHANGOUT is an ongoing series where we talk to Product Managers from various companies to understand what drives them, the products they work on and the role they play in defining the products success.

If you have any feedback or questions that you would like answered in this series feel free to tweet to me: @akashj

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Next Gear into ProductNation Summit

The journey is unstoppable. India has started building software products that the world recognizes… a far cry from the days when it was known only for software programmers and not for software. Through its successful Playbook RoundTables and Community platform, iSPIRT’s ProductNation initiative has touched the lives of hundreds of product entrepreneurs across India.

ProductNation thrives on the strengths of our Volunteer community who are people just like you. This community is proud to announce the ProductNation Summit coming this December in 2013. We will soon be on twitter, just follow us @Product_Nation and the #PNSummit hashtag.

#PNSummit is selflessly hand-crafted by Product folks, a Summit attended exclusively by Product folks. A lot is going to be talked about Customer Discovery and Growth Hacking. #PNSummit has lean forward and lean back sessions and is practitioner led with over 70% of the sessions being interactive. These sessions are no holds barred. They are practical, frank and maybe even brutal. It will be a gurukul, where teacher and taught share the same platform, only the roles are reversed. Yet there is no sage on stage, only like minded peers.

If this sounds like just what you are missing, we’ll be delighted to send you an invite. Just let us know a little more about you, so we can ensure the other folks in the room are also passionate Product folks. Seats are extremely limited and there is a marginal Attendee fee. What gets you in is not the fee, but your passion, i.e., what you do.

Once you’ve been there, you can take back a lot more that what you learn in 2 days. Insights from great like minded people like you, a platform to share and learn for 4-6 months after the summit, and friendships for a lifetime. Seats are extremely limited and open only for the first 100 who get invited.

Your current situation is not important. If you have the mindset, Invites for the lucky 100 will not remain available for long. Gates close on 30th September.

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iSPIRT ProductNation Branding RoundTable: Why Product Branding is important for Startups?

As usual, the 16th iSPIRT RoundTable was a great learning experience. Many thanks to Avinash Raghava & iSPIRT for conceptualizing it, and to Helion Ventures for sponsoring the venue and the snacks.

Dhruv Shenoy of Knowience Consulting, a well-known Marketing Guru, was the facilitator, along with Rajan from Intuit. Thanks, Dhruv and Rajan, for an educational and entertaining session.

I used to think that product branding is only for large companies and startups and early stage companies don’t need to worry about it.  So I was skeptical at first – but I trusted Avinash’s judgment in putting together this session.  And it was an eye-opener.  Dhruv explained to us what “brand” is and why it is important for products at any stage of maturity.  Building the product without doing an exercise in defining the brand can lead to lot of wasted time and money.

Branding consists of three high level activities “What to say”, “How to say” and “How do we reach the target customer”.  This round table focused on “What to say”. Future round tables will cover the other two high level activities.

Starting with the definition of “Brand”, we covered “Customer Insights”, “Product Proposition”, “Target Audience”, “The Six Tenets of Product Branding”, “Brand Essence” and “Brand Positioning Statement”.

After reading this article, give a shot at creating a Brand Positioning Statement for your product.  From my personal experience, I assure you that it is time well spent.

What is a brand?

We normally look at only commercial products, but the concept is broader.  Mother Teresa, Lord Ganesha, Santa Claus are also brands. So are Diwali and Valentines’ day.  Or even the concept of “Brand India”.

The three key attributes of a brand are:

  1. Most Unique (not overlapping with others).
  2. Most Relevant
  3. Large following

For example, among the 33 Crores of Hindu Gods, which God is known for removing obstacles and hence needs to be worshipped first?  Everyone knows it is Ganesha. Ganesha satisfies all the three conditions above.

Brand is how consumers identify the product and recall it. Brand is built over a period of time by the consumers/target audience.  The manufacturers can do brand building activities keeping the above three attributes in mind. Brand building takes time. For example, Gmail built it over several years to overtake Yahoo.

To be successful, the product should not be a commodity. It should be a brand. For example, rice is a commodity and is talked in terms of Rs. 43/kg or Rs 50/kg. But Kohinoor Basmati is a brand.   A brand kindles attributes about the product in the mind of the consumer.

Brand creates a promise. This needs to be delivered by the product. Otherwise, it will backfire badly.

So how do we go about creating a brand for our product?  The first step is to get customer insights.

Customer Insights 

It is very important to realize that there are thousands of things going on in the customer’s mind.  How do we get into the mind of the customer and grab mindshare?  Even if you have a great product, if the customer cannot identify and recall it, you have lost the customer.

To understand how to get the customer’s mindshare, we need to get customer insights. Customer insights are at a deeper level and not just at the level of product benefits/features.  These deeper insights should be used to differentiate your product and get the customer’s mindshare. 

Here are some examples of customer insights:

(Disclaimer: All the statements about different brands and products in this article are hypotheses made by RT participants as an exercise for better understanding.  They may not reflect reality)

  • SalesForce:  Before SalesForce, companies had to make large investments in Software and have it installed and maintained on premise. This was keeping SMEs away from expensive Software. They could not afford to make such investments to see value. Subscription based, on-cloud service appeals to this customer segment.  SalesForce targeted this customer insight.
  • Dove: As women get into early 30s, they have the insecurity that they are looking older.  Dove promises that they will look younger.
  • LinkedIn: Man is a social animal and wants to keep in touch with his contacts.  In the offline world, the mindshare of friends (whom you meet at home in a relaxed environment) is different from mindshare of professional contacts (whom you meet in a coffee shop with some agenda).  LinkedIn’s insight was that what you do offline (meeting people, networking etc), you can do online also in a separate way. Online life mirrors real life.
  • Instagram:  People want to look like professional photographers. People are taking photos from their mobiles and sharing, but the photos were not looking professional.  Instagram lets you do that from your mobile.
  • Scooty: Kinetic Honda is very heavy for young girls.  They need something lighter without gears.
  • Gmail: Other mail providers were limiting the max space. Gmail came up with 10GB space.

Focus on only one thing from the customer mindshare point of view.  Which part of the customer’s problem are we solving? Focus on the deeper benefit.  David Ogilvy said “Interrogate your product till it confesses its strengths”.  What can my product do that others can’t? Without this, your brand will not have recall value.

If we have multiple product lines, then we should have a main mother brand (e.g. Microsoft) and the sub brands for individual product lines (e.g. MS Office).

Study the market dynamics and focus on customer insights.

  1. Customer Insights should be the foundation of business planning.
  2. Remember that customer attitudes are never static.
  3. Customer insights are the key to building a discriminator.

How do we go about getting customer insights?

  1. Usage.  This is the best way – find out how the customer is using your product and take feedback.
  2. Observation.  For example:  shopping insights, product usage analytics, surveys, research.
  3. Probe. Ask open ended and close ended questions and analyze responses.

The best way to get consumer insights is to go back to the people who are using your product and find out why they are using it.  This will also give you insights on your product differentiation.

Ask customer to describe your product.  It can illuminate you on what you think your customer thinks (apologies for the thought twister).

Once you’ve got the customer insights, the next step is figure out which insight you want to target.  And that brings us to “Product Proposition”.

Product Proposition 

How will my product be different with respect to the competition?

  1. Filters down from consumer insights.
  2. Discrimination starts with the product.
  3. Brand builds on product promise.

Here are some examples:

  • iPod: iTunes + iPod. Buy one song instead of an album. Biggest storage capacity.
  • Nissan Sunny:  More legroom for people sitting in the back seat. Longer car in the same category (i.e. at Sedan cost).
  • Google:  With earlier search engines, you had to think what to type. Google addressed this with “Search the way you think”.
  • Flipkart: Hassle free delivery.  Very fast.
  • Maruti Car:  How much mileage? Value for money.

It is very important to be unique on some dimension – even from the day you conceptualize the product.  And, the product proposition has to be very simple to have recall in the customer’s mind.  One rule of thumb is to aim to explain your product to your child/grandmother.  Typically, this can be done.

Think of what is keeping your customers awake at night.  And use that to grab the customer’s mindshare. For example, let’s take my company’s product – KeyMails – which solves the problem of email overload for Microsoft Outlook users. The insight could be that the target customer is worried about missing an important mail. So, something like “Never miss an important mail” could be one approach to branding.

Think in terms of “Unique Atomic Unit” about your differentiator.  For example, with facebook it is “update status”; with twitter, it is “very short message”.  Spend some time thinking about what the unique atomic unit is for your product.  Do it now.

Go to market with the differentiating “hero” feature.  Other features are needed, but they do not form part of go to market strategy.  Example, Scooty is a vehicle that has good mileage and a good engine, but they focus on their differentiating factor of being usable by girls.

Once you have the product proposition, the next step is to understand the target audience.

Target Audience

You need to have answers to the following questions about your target audience:

  1. Why should we understand the target audience?
  2. Who are we talking to? And why?
  3. What are his/her attitudes to the category?
  4. What defines him/her?

For example, for Naukri, the recruiter thinks he needs their service if he needs to hire 200 people in a month. If it is just for one or two positions, consultants might work better. This customer attitude is important to know.  Online recruitment is for scaling.

You need to create a persona for the target customer. In the initial stages of a startup, it is better to have only one target persona.  Having multiple target personas causes confusion.  Pick the persona that is most promising.  The persona needs to change and be refined as you get more data.  For example, though Practo is a general purpose solution for doctors, they first picked dentists and later expanded to other segments. “Everybody is my customer” does not work.

Give the target persona a name – say Molly/Tom/Rohan and write down as many attributes as you can about the persona – what is the annual salary, spending habits, attitude towards buying products similar to yours etc. This helps in identifying who is a target customer and who is not. This will also help in decision making – for example, if you want to add a feature – ask if Rohan will like that feature. And base your decision on the answer to this question.

You can have multiple target personas once you become more mature.

What if there are multiple people who are involved in the buying decision for the product? Who should you focus on? Your pitch should be to the buyer. You have to talk to the users and the influencers too, but the pitch must be to the buyer.

With this background, it is time to introduce the six tenets of product branding.  This is a concise summary of the discussion so far.

Six Tenets of Product Branding

You need to study and arrive at your understanding of the following six pillars.

  1. Market Dynamics
  2. Target Audience
  3. Consumer Insights
  4. Competitive Environment
  5. Key Brand Benefit.
  6. Reason to Believe.

If even one of the above is not satisfied, you might not get the results. For example, one of the most common reasons for failure is that brands do not address the “Reason to Believe”. It is easy to make tall claims, but the consumers must clearly see the reason why they should believe your product’s differentiator.

All the learning above are inputs to two tangible outcomes for your brand – (a) Brand Positioning Essence and (b) Brand Positioning Statement.

Brand Positioning Essence 

“Brand Positioning Essence” typically consists of two to three words.  It is that one aspiration of the core target audience that the brand would like to uniquely own.  For example, “Feminity Restored” can be the essence for a soap targeting middle age women.

Take a few minutes now to think about those two or three words that communicate the essence of your product.

Brand Positioning Statement

Create a Unique Brand Positioning Statement that covers the six tenets above.  A template for your statement is given below:

My product is a ________ (market dynamics) for ______ (target audience) who are ______ (consumer insights) and my product does _________ (key brand benefit) because ____ (reason to believe).

Here is a shot at KeyMails brand positioning statement.

“KeyMails solves the problem of email overload for business people who use Microsoft Outlook, and who do not want to miss important mails; by ranking the mails in the order of importance to the user, by automatically learning from the past email behaviour and easy and minimal configuration.” 

I request other participants to write down their unique positioning statement for the benefit of the readers.

For your reference, here is the silde deck used by Dhruv for the round table.

Conclusion

Branding is a must for any product, whether it is in a mature stage or early stage.

Particularly for product startups, the “brand” of the product is important. It is more challenging when the product is still evolving and the startup is trying to figure out the product-market fit and a minimum viable product.  However, brand is in the mind of the customer and it is evolving. It can change with product market fit, but it has to be present at every time.  You always need to have a differentiating factor that addresses a deep need for your target audience.  And your brand positioning can and must change as you change product strategy.

It is similar to your business model.  It is not advisable to start building a product without having a business model and business plan.  Sure, it will change and evolve over time – but at any point in time, you do have a business plan.  Same thing with branding.

If you’d like to share your knowledge on product branding, please do write them in the comments section.

Tweetable Tweets

Branding is as important to startups as it is for mature products. Tweet this.

Brand creates a promise. This needs to be delivered by the product. Otherwise, it will backfire badly. Tweet this.

Thousands of things are going on inside the customer’s head. How do you get mindshare for your product? Tweet this.

Even if you have a great product, if the customer cannot identify and recall it, you have lost the customer. Tweet this.

Customer insights are at a deeper level and not just at the level of product benefits/features. Tweet this.

Focus on only one thing in the customer’s mindshare. Without this, your brand will not have recall value. Tweet this.

The best way to get consumer insights is by asking people who are using your product why they are using it. Tweet this.

Ask your customer to describe your product.  It can illuminate you on what you think your customer thinks. Tweet this.

Go to market with the differentiating “hero” feature.Tweet this.

Create a persona for your target customer. Give a name like Tom and write down Tom’s attitudes. Tweet this.

Brand positioning essence is two or three words that you’d like to own in the customer’s mind. Tweet this.

Create a brand positioning statement addressing the six tenets of product branding. Tweet this.

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PromptCloud is a powerful cloud-computing DaaS (Data as a Service) engine involved in ‘Big’ data acquisition

PromptCloud is a powerful cloud-computing DaaS (Data as a Service) engine involved in ‘Big’ data acquisition. PromptCloud crawls data that’s spread all across the web and converts it into meaningful insights. It was founded by Prashant Kumar. Before starting PromptCloud in late 2009, Prashant was at Yahoo! with their data team working on Yahoo! Frontpage which was one of its hottest products back then. He was mostly involved in data crunching using big data technologies that were still evolving. Prashant graduated with a B.Tech-M.Tech dual degree in CS from IIT Kanpur in 2007. He was later joined by Arpan Jha in 2012, who is a Carnegie Mellon alumnus and took over the Products & Market Strategy function. Prior to joining PromptCloud, Arpan has worked as a Consultant with KPMG & Deloitte.

Introduction

Let’s consider a scenario: say pn.ispirt.in decides to launch a section on the website where they rank all “Made in India” products based on popularity, usage, quality, and some other criteria. One approach is for them to go out and subscribe to the news feed of all important news sites all over the world and try to track all the news and events about all ‘Made in India’ products. This data can then be used to rank them. Given that data about popularity, usage and quality can be generated all over the web (a product review here, a customer complaint there, a Facebook mention, a tweet, a youtube video gone viral, a buyer praising the product on his blog, you get the idea), such a list of websites will be incomplete at best, and the volume of data will be too much to handle for the ProductNation editors.

Enter PromptCloud. PromptCloud offers its Data-as-a-Service for clients like ProductNation who need large volume of data from all over the web for further analysis (this is just one of the use cases, PromptCloud offer many more services). Continuing with the same example, ProductNation and PromptCloud work through following steps:

  1. ProductNation provides 2 pieces of information to PromptCloud: a list of websites they are interested in, and a list of keywords they are interested in
  2. They will also mention how frequent they want the data to be crawled which is dependent on ProductNation’s estimate of how fast their data is likely to change. If they need fresh data (say every few minutes), they purchase PromptCloud’s ‘Low-latency Crawl’ service
  3. PromptCloud will crawl all the data, matching keywords to find relevant content, and then convert it into structured data (XML, CSV, XLS, etc.) for ProductNation’s consumption
  4. ProductNation can do 2 things with the data
    1. It can fetch all the data through API calls and download them into its own servers for further processing. This will be done at a regular schedule, agreed with PromptCloud
    2. ProductNation may not want (or may not have capability) to host all this data. So they buy PromptCloud’s Hosted Indexing Service and they can now let their editors search this index and only fetch relevant content.
    3. When ProductNation gets the data, they are also provided a relevance score for each data item (as judged by PromptCloud’s algorithm) so that they can optimize their analysis efforts and keep their results very relevant.

If Internet was small, say 1000 sites, this would be a trivial problem to solve – just get all the data and be done with it. Scale of Internet (and the rate at which data is growing) makes this a complex problem to solve. This is a technology problem which needs to solve 4 critical issues:

  1. Velocity: How fast and how quickly can data be fetched?
  2. Structure: How can the data be structured meaningfully when data on the web is largely unstructured?
  3. Volume: How much data can be stored and processed efficiently?
  4. Relevancy: How relevant the data is to the keywords supplied, and to the overall intent of this data crawl?

PromptCloud is a technology company which aims to address all these issues and offer services to businesses who need to analyze web data at scale.

The PromptCloud Service

Offerings

PromptCloud offers services built on top of their cloud-computing DaaS (Data as a Service) engine. They offer custom crawl services to their clients. Specifically, following offerings are available:

Their three primary offerings are:

  1. Site-specific crawl and extraction: Given a set of sites and fields to be extracted, their crawlers will fetch relevant data from the web, which then gets converted into structured data and delivered to the clients via API
  2. Low-latency Crawls: These are highly optimized crawls which can fetch data in intervals as low as 5-10 minutes
  3. Hosted Indexing: Structured data created from custom crawls is hosted and indexed and exposed to clients via query APIs.

PromptCloud Service Offerings

Features

They offer following features as part of their services:

  1. Deep data crawls- all past data on the site
  2. Structured data feeds are available to the clients daily/weekly/n times a day
  3. Ability to supply only incremental data
  4. Crawling data from AJAX/non-AJAX based sites
  5. Indexing of data as per requirements
  6. Custom Analytics

Their technology stack uses a lot of open source solutions right from Linux, Hadoop and NoSQL to various cloud and cluster management tools. These are augmented with custom components they have written to solve their unique challenges and serve their customer needs better. They serve data to their clients via API which can later be synced to their FTP, AWS S3, Google Drive or DropBox accounts.

Differentiators

Offering web-scale crawling services is a hot space and there are many competitors with similar services. When looking at their differentiators, 3 things stand out:

  1. Vertical-Agnostic: Their offerings are based on URLs and the keywords they use to filter the results of their crawl, so they are independent of verticals, and can cater to a large number of verticals. This also helps them quick turnaround on new features which then become available to all their clients.
  2. End-to-end Monitoring – Web sites regularly have dynamic content on their pages, and things can change pretty quickly. While most other providers offer a do-it-yourself solution (essentially making you solve this problem), PromptCloud monitors structure changes on the web and supports clients until data gets imported into their systems.
  3. Large-scale complex crawls – Managing large-scale crawls is one of PromptCloud’s USPs. AJAX elements on the web sites make the pages unique and dynamic. PromptCloud’s platform can crawl pages that use AJAX and interactions very well.

Market

Being a technology-centric company, CTO or Product guys on client side are the decision-makers and buyers for their product. Their adoption has been good so far, catering to clients in US, UK, Canada, Western Europe, Singapore, Hong Kong etc. Being a vertical agnostic solution, they have clients from all domains be it e-commerce, travel, market research or classifieds and across the globe. They are an early growth stage company and are growing at the rate of 4X in revenues each quarter, with healthy pipeline of clients.

Since they offer custom services, their pricing varies a lot – it could be anywhere from $200 to $10K a month for a given customer. Pricing depends on what types of services are being consumed, as well as on crawl frequency, data volume, value added services, etc. Users can control the price by setting limits to data that they fetch in a month. They also can do some sampling of data to get a sense of pricing run rate, before committing to the crawl.

Currently, most of their marketing and sales happen through referrals. As they go forward, brand-building is going to be key marketing strategy and they are investing in that right now.

They are looking to address a larger market and to expand their offerings across more and more geographies. Scale is the #1 imperative for them right now. The aim is to build a brand around their solution and increase the loyal customer base.

Future releases will focus on following themes:

  1. Make data richer by applying AI and Machine Learning
  2. Offer standardized data sets in some verticals

Competitive Landscape

Web Crawling services is a space that is hot and has many players. There is 80Legs (any guesses why they are called so?) which offers a programmable platform for custom data crawling, and there is Grepsr that offers its services to individuals, and there are a lot of them in between – Fetch, Mozenda, Spinn3r (blog, news and social media crawling), and of course an open source web crawler (Apache Nutch).

These products vary along 2 dimensions (and hence they should be visualized in a 2×2 box)

  1. Horizontal (Platform) or Vertical (Business Solutions)
  2. Level of programming required to achieve business value

#1 is obvious, let’s talk about #2. Level of programming required to get value depends on the interface that is exposed by these services and who does it appeal to the most. Most of the consumers of data are business people; however, most of these offerings are technical enough that business teams need to work through their technical teams to get value (one reason why PromptCloud sells to Product guys rather than business guys). It is hard (though possible) to have a platform offering and still provide an interface consumable by business teams (because business value will be generated only when platform outcome is processed using vertical business rules which is hard to do without some amount of programming).

PromptCloud is a horizontal (platform) offering that requires a little programming to get it integrated with business flows of the client. For them, this positioning makes sense for 2 reasons:

  1. Revenue Spread: Horizontal increases addressable market because all verticals can be targeted. However, this also means that value provided per client is less and hence revenue per client is going to be less while number of clients might be large. At this stage of their company, this is a better revenue mix (since it exposes them to a large number of clients).
  2. Cost of Innovation: Vertical requires more business focus and hence innovations that are specific to a vertical may not be applicable to another vertical, while horizontal means every innovation benefits every customer. This makes innovating for every client a costly affair when focusing on a vertical.

However, it is important for them to make sure they are moving continuously along the spectrum of offering vertical solutions (without compromising on their innovation abilities) and offering business-consumable interfaces.

The Road Ahead

The road ahead for PromptCloud is tough but inspiring. They are in a space that will require much more services in future as data continues to proliferate, data-driven insights become the order of the day, and web data continues to become more unstructured. They have a good set of offering and a good list of clients to work with. However, they do face some challenges:

  1. They need to gain more visibility in existing and newer geographies; building their brand is going to be key.
  2. They need to add more products to their bouquet of offerings
  3. To maintain their technology edge, they need to continue to build the team even through the shortage of trained professionals in this area.

They also need to figure out where they want to put themselves on Horizontal-Vertical axis, we feel that they need to move towards offering vertical-focused solutions, in addition to maintaining a horizontal data platform. PromptCloud (and most of its competitors) offers a technology product to business teams to do their data analysis well (and hence business teams need to involve their technology teams to consume PromptCloud services). We feel that a way forward for PromptCloud will be to become a business product that the business people can consume directly and come to build critical business on. They platform approach (vertical-agnosticity) is a good foundation on which such a business product can be built.

They have the right trajectory of growth, and good momentum and team to continue to push and become a name to reckon with in this space.

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Part 2: Emotionalizing the software products .. Uh…what?

The first step: build customer empathy

Microsoft built test tools in Visual Studio 2005 to address a virgin test market worth about USD 3 billion at the time. However, the product met with little success and did not create much excitement in the test community. A later in depth observational research of testers to see how they work—what’s their workflow, what tools did they use, what’s their contextual environment, revealed that more than 70% of the testers did manual testing. Most of the time they worked on one test case at a time. Their tools were manual – Microsoft word, excel, white board, paper. For many of these testers, Visual Studio became sort of a four letter word.  They would complain- why are you making me do this? You are making me think like a developer!

In contrast, the test tools in VS2005 were automation based API testing tools designed for specialist testers like Microsoft SDETs. They were optimized for complex testing that required setting up a suite, a plan, a configuration, and all these things that were super-flexible and powerful.  Test tools were like the Swiss army knife that could solve many problems many different ways. But to the average tester, it was impossible to get started and if one ever did, hard to use.

In short, majority of testers worked very different than the programmer testers within the company and elsewhere. It was really a case of lack of customer empathy. The team initially failed to recognize that testers outside could be entirely different beings from a Microsoft tester. After an expensive lapse, they identified a new tester persona named Ellen and released a test management environment for them in the form of Camano with VS 2010.

The cause of this lack of empathy is the curse of knowledge that software developer suffer from. They just know so much more about technology that they can’t see from an average real life users’ point of view. Microsoft software engineers did not understand majority of software testers. Possibilities of software engineers not understanding lay users are far higher.

It is important that the people behind technology products, as Tim brown, author of Change by Design, puts it, could see the world through the eyes of their customers, understand the world through their experiences and feel the world through their emotions. That is the essence of empathy.

Empathy is about knowing your customers deeply, in fact better than they know themselves. Product managers I meet recount how they are trying to do this through surveys, focus groups, usability studies, customer visits and conjoint analyses. But they are missing the point. All this data are meaningless without empathy.

So how can software developers factor in customer empathy in the software products?

One, change focus from feature driven, technology driven or competition driven product development to customer focused product development.  Features often creep into products because management wants it or competition has it or because it is technologically cool. Shun these practices totally and make all your product processes customer-centric.

Two, develop strong understanding of your customer and make them center-piece in all your engineering and product decisions.  Give face to those single word descriptions of customer segments. Develop personas. Put them across your office to remind developers who the customer is.

Develop customer insights beyond the obvious. Only then you have a chance to differentiate and be a winner. Use open questions and empathic listening when talking to customers. Do not stop at asking customers what they want. Customers often can’t articulate what their needs and wants are. They often learn to live with current reality thus killing all useful feedback they could give you. We have all seen people writing passwords on their palms, chaining their bicycles to the park bench, using all kinds of objects as door stoppers and so on. Such consumer needs become latent and never get surfaced in any questionnaire or interview.  Customers are too occupied with their current business to be able to paint great future scenarios. They are no experts to tell you what will be a successful product in the future. Go live with them (ethnography), observe them going about their tasks in their natural habitat. Use empathy map to capture what the people in observation said and did, your interpretation of what they thought and felt and inferences of what their pain points are and what they desire to gain.

Three, stop developing features. Start developing scenarios. Scenarios are short stories told from the customer’s point of view that explains their situation and what they want to achieve. Scenarios describe the journey to a happy ending. Scenarios help shift focus from technology and mere use cases to customer. Remember, human brains are hardwired to understand stories. If you can’t tell a story out loud and have it make sense, you’re probably missing something. Make scenarios the heart of your product. Don’t ship a product with a broken heart!

Four, develop and live by a set of clear user experience (UX) principles. These principles help you make decisions that deliver a product with a clear point of view. An example of experience principles from Windows 8 (details available on the web) includes – pride in craftsmanship, change is bad unless it is great, be fast and fluid, solve distractions not discoverability, reduce concepts to increase confidence, win or lose as one.

Five, develop clear scenario success metrics. Test your scenario to this metric. For example a metric could be –

1)     UX performance – did users successfully complete this scenario? How long did it take?

2)     User perception – were users excited, frustrated, satisfied or annoyed while completing the scenario?

3)     Functional test – does the scenario function as per specs?

Empathy approach to designing winning products has an underlying belief – it’s better to build a product that delights a small segment of users than to build one that targets everybody but doesn’t really nail it for any of them. There are countless examples of products like iPhone and OXO kitchen tools that are a roaring success with customer segments beyond what they were originally designed for.

Steve Jobs once said, “It is not the customer’s job to know what they want.” That’s absolutely right. It is yours.

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Are you asking the right questions?

Similar to the Chief Executive (CEO) of a company, a Product Manager should also question the process that goes into the creation of a product / service. Treating the organization like a living and breathing creature, a Product Manager should have in-depth understanding of the workings of its vital organs that are responsible for the following:

  1. Listening to external and internal business related signals
  2. Analyzing  the impact of the data signals collected from external and internal sources
  3. Taking appropriate actions based on impact analysis
  4. Measuring the effectiveness of the actions

If one or more of these vital functions are broken, then the organization cannot function at its peak capacity and may succumb to the dynamic business environment. One of the most critical questions to ask in any situation is…’What does it mean?’ ‘it’ could be an data point or an event or any other external  / internal stimulus. Then look at ‘it’ from different perspectives such as:

  • What does it mean from business perspective?
  • What does it mean from revenue perspective?
  • What does it mean from process perspective?
  • What does it mean from marketing perspective? Etc…

This line of questioning will help in the impact analysis across organization and take appropriate measure to react to the external stimulus.
This article focuses on ‘Listen’ and ‘Analyze’ aspect that has been shown in the virtuous cycle above.

Listening

A Product Manager should tap into and harvest as many sources of information as possible. Getting external business signals is not only a function of number of sources but also the frequencies with these sources are tapped into. It’s the continuous ‘chatter’ that really matters. Collecting information once in a while is not sufficient and may lead to incomplete information. Here are some of the questions that must be asked when validating the data collected from sources of listening

  1. What sources of data collection were used?

a. Internal

  • i. Customer service
  • ii. Marketing
  • iii. Sales, etc

b. External
      • i. Customers
      • ii. Competition
      • iii. Industry experts
      • iv. Company executives
      • v. Partners, etc

  1. How recent is the data?
  2. How frequently was this data collected?
  3. Which systems were leveraged to pull the data from? (e.g CRM)
  4. How many direct customer inputs does this data include?
        • How valuable are these customers to the business?
        • Which revenue and vertical segments do they belong to?
        • How frequently was the data processed and conclusions from that data refreshed?
        • Who has reviewed this data prior to being getting used in the road mapping process?

Inside Out Data Collection

Product Manager doesn’t necessarily have to wait for signals to come from outside. In order to be on the top of the game the Product Manager can also initiate ‘Inside Out’ process for getting the pulse of the market and business environment. For example during the process of building business case for new feature / product or when conceptualizing solution at the time of writing PRD, the Product Manager can reach out to Customers, partners and internal entities.

These are some of the questions that a Product Manager must ask of him / team in order to ensure inside out approach of data collection:

  1. How many customers were involved in PRD process?
  2. How frequently were the customers contacted?
  3. How many of those customers are expected to use the feature / product after it’s rolled out?
  4. How many customers are holding their breath for the feature to be rolled out?
  5. How many prospects are cancelling deals for the feature?
  6. In which revenue and value bands do these Customers fall under?
  7. How the does the actual customer interactions compare with planned customer interactions?

Other entities within the organization that can use the Inside out approach are Marketing and Sales teams. For example Marketing team can involve Customers in the process of creating case studies and white papers.

Analyze Impact (immediate, medium and long term)

Once the data is collected and processed the next critical activity is to analyze the impact of that on the various aspects of the organization. Understanding only the Product impact is not sufficient. A holistic organization impact assessment should be done. The impact assessment questions that follow can be asked to:

  • Assess the impact of external events such as a competitor make announcements or change in industry regulations, etc.
  • Assess the impact of features on roadmap, etc.

The goal is to really get a thorough understanding of the impact of external and internal events on the business.

  1. What is the revenue impact?
  2. What is the customer acquisition impact?
  3. What is the customer relationship impact?
  4. What is the new vertical (market) impact?
  5. What is the impact on strengthening position in the existing verticals?
  6. Impact on brand value of the company?
  7. What is the impact on employee skills acquisition?
  8. What is the marketing impact?
    1. Case study
    2. White paper
    3. References, etc
    4. How does the roadmap help plug competitive gaps?
      1. Fill gap
      2. Create gap
      3. How does the roadmap help displace competition?
      4. How does the roadmap help create though leadership?
      5. How does the roadmap differentiation from the competition?
      6. What Sales and Support changes need to be made?
      7. What Marketing changes need to be made?
      8. What changes need to be made to the Product development plan?

I’m sure most readers can add to this list of questions and make it even richer and actionable for Product Managers.  Remember the path to the right solutions begin by asking the right questions…

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Choice Overload prevents a Sale. The 4C approach may overcome this!

Too many choices make your customers just stop with browsing. They don’t buy and move on! So if you have too many looky-loos and not enough purchasers, you may be giving them Choice Overload!  Too many Free Trial users and not enough conversions? Choice Overload may be one of the problems in that case also. Whether you are an e-commerce business or designing a user interface, you may be overwhelming your intended audience with too many choices! Luckily there is a 4C approach, proven with social research, that may help you overcome this problem.

Here is a terrific TED talk by Social Researcher, Sheena Iyengar:

Sheena talks about experiments they did with handing out free samples of 6 different kinds of jam vs handing out 24 different kinds of jam. They found out that more people bought the jam when they were shown fewer choices, only 6 kinds of jam!

More people put money in retirement savings accounts when they were shown only a handful of retirement finds than when they were shown hundreds of options!

That’s the Choice Overload problem! Too many choices, people don’t choose and move on! Nice insights! But how do you overcome Choice Overload? Sheena recommends the 4C approach.

1. CUT – Cut the number of choices you are presenting. Whether it’s your e-commerce site or your user interface design, too many choices frustrate people. You need some choice, but too many choices may hurt your objective!

2. CONCRETIZE – Make your choices vivid! Don’t describe something. Show pictures of what happens when someone chooses something. Show the consequences of making a choice, not just more about the features of that choice. Talk about benefits of a choice!

3. CATEGORIZE – Chunk your choices into Categories that make it simple for your customers to narrow down what their choices are. Don’t overwhelm them with too many choices upfront! Make pre-defined combinations of packages where you could. In User Interface design, Wizards are a great example of making choices on behalf of the user, making it easier for them to start quickly.

4. CONDITION – Condition for Complexity! – Make simple choices easy to make and hide complex choices for later, once they have some experience with you.

Great research whose applicability can extend beyond just social research! Can help a lot in product start-up companies in designing and presenting choices or in designing user interfaces.

When you have to make a choice and don’t make it, that is in itself a choice – William James