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Iterating towards Bethlehem (or, making the shift from a “packaged software”guy to a “hosted services” guy) August 2, 2006 :: SVPMA Michael Sippey GM, TypePad :: Six Apart, Ltd.

Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

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Page 1: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Iterating towards Bethlehem(or, making the shift from a “packaged software”guy

to a “hosted services” guy)

August 2, 2006 :: SVPMA

Michael SippeyGM, TypePad :: Six Apart, Ltd.

Page 2: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

About me.

(Lifelong geek, English major, writer, product manager, consultant, business guy, blogger, amateur

designer, spreadsheet geek, father of two.)

http://sippey.typepad.com/

Page 3: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

About the title of this deck.

Turning and turning in the widening gyreThe falcon cannot hear the falconer;

Things fall apart; the centre cannot hold;Mere anarchy is loosed upon the world,

The blood-dimmed tide is loosed, and everywhereThe ceremony of innocence is drowned;

The best lack all conviction, while the worstAre full of passionate intensity.

W.B. Yeats, “Slouching Towards Bethlehem”

Page 4: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

About Six Apart, Ltd.

Page 5: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Bust 1.0(circa 2002)

Web 2.0(January 2005)

Page 6: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Act 1(Let’s rewind the clock a bit.)

Page 7: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Name that product!

Page 8: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

“Packaged” software was truly packaged software

Disks. Disk labels. Disk sleeves. Manual. Manual addendum. Installation guide. Welcome letter.

Invoice receipt. Box. Shipping box. Shipping label.

Page 9: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Anyone feeling nostalgic?

Page 10: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Software life cycle.

define > design > build > test > release

elapsed time: 12-24 months

Page 11: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

(How about now? Feeling nostalgic yet?)

Page 12: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

What was my job back then?

Page 13: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Getting everyone in the van.

Page 14: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Market Validation

Is the market real?How big is the market?

Does the product fit the market?What are the sales costs?

Page 15: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

How we did it.

Find 30 prospects. Set up meetings.Demo your idea / alpha / beta / product.

Ask questions. (Lots of questions.)Take copious notes. Score your results.

Page 16: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Critical questions.

Do you have this problem?Does this solve your problem?

How much would you pay for this?Base hit or home run?

How would you spend $100 of our money?

Page 17: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

We always learned new things.

Page 18: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Occasionally, we learned verynew things.

Page 19: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 20: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 1:If you can’t get 30 meetings…

…you don’t have a product.

Page 21: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 2:Nothing’s better than seeing a

user in context.

(My GOD, that’s how they use our product?)

Page 22: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Let’s fast forward just a few years…

(New job: consultant.Which is really the same as the old job.)

Page 23: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Act 2(also known as Bubble 1.0!)

(Big money, big teams, big hardware, big dreams.)

Page 24: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

“Let’s build a jukebox.”

(No van this time…instead, a trip to Vegas.)

Page 25: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Market research phase 1.

(DILO scenarios, experience architecture,lots of time in bars with beer.)

Page 26: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Market research phase 2.

(There are these guys with the keys...)

Page 27: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Time to non-functional prototype:6 weeks.

(Goal: sell investors.)

Page 28: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Time to functional prototype: 12 weeks.

(Goal: sell distributors.)

Page 29: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 30: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 31: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 32: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 3:End users aren’t the only ones

that matter.

(Can’t ignore the other actors in the value chain.)

Page 33: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 4:Prove it with a prototype.

Especially when you’re breaking new ground.

Page 34: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 4 ½:Turn it into a best seller.

Page 35: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Act 3(also known as Bubble Web 2.0!)

(Everyone knock on wood three times.)

Page 36: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Let’s build a product.

Page 37: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Let’s build a product.

Page 38: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Let’s iterate a service.

Page 39: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

We’ve learned the hard way.

Page 40: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

July 4th weekend, 2005:TypePad 1.6

“Let’s change how users design their blogs. And how they’re rendered. And how users manage

their communities. And most of the app’s JavaScript. I mean, hey! If it’s this big already,

what’s one more thing? We get more bang out of QA, right?”

Page 41: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

What went wrong that weekend scarred everyone involved.

(“Dude, you just had to be there.”)

Page 42: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

We didn’t learn right away, though.

We had to iterate to iterate.

Page 43: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

What’s the right periodicity?

One monthThree weeks

One weekA release every two weeks

Page 44: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Software life cycle.

define > design > build > test > release

elapsed time: 12-24 months

Page 45: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

(I had to use some of the new fancy clipart in Office 2007.)

Page 46: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

How we make it work.

Roadmap and schedule on the wiki.Lightweight specs.Living in FogBugz.

Iterating.Willingness to let go.

Page 47: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Simplify releases.

Infrastructure focused v. feature focused.

Page 48: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Let everyone be their own hero.

*-athons.

Page 49: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

But what about the product management stuff?

Page 50: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Know your market.

(The 15,000 readers of TechCrunchare not a market.)

Page 51: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

(What we’re doing.)

Page 52: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Make the customer part of the team.

The whole team sees the $$ metrics.Support staff and support ticket DB.

Motivation, feature and usability research.Eating our own dogfood.

(And it doesn’t hurt that we’re in the megaphone business.)

Page 53: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 54: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 55: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

(Who doesn’t like charts?)

Page 56: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

(Google AdWords keyword performance report redacted.)

Page 57: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Beware the vocal minority.

(1% <> 99%)

Page 58: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious
Page 59: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

So what’s my job now?

Page 60: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Getting everyone in the van.

Page 61: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Takeaway 5:It’s the same old story.

Is the market real?How big is the market?

Does the product fit the market?What are the sales costs?

Page 62: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

The more things change, the more things stay the same.

(Except things are faster. And cheaper.)

Page 63: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Still awake?

(Q&A)

Page 64: Iterating towards Bethlehemsvpma.org/eventarchives/SVPMA-08-2006-Packaged_Software_to_Be… · Demo your idea / alpha / beta / product. Ask questions. (Lots of questions.) Take copious

Ping me.

http://sippey.typepad.com/[email protected]