Summary of Dan Olsen's The Lean Product Playbook

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 Product-market fit is the process of determining if a product is well-suited for its market. It is one of the most important Lean Startup principles, and this playbook will teach you how to achieve it.

#2 Product-market fit is when your product creates significant customer value. It is achieved when your product meets real customer needs and does so in a way that is better than the alternatives.

#3 The Product-Market Fit Pyramid is a hierarchical model that decomposes product-market into its five key components. Each layer of the pyramid depends on the layer immediately beneath it. Product-market fit lies between the top and bottom sections of the pyramid.

#4 The pyramid separates the market into its two components: the target customers and their needs. The needs layer is above the target customers layer in the model because it’s their needs that are relevant to achieving product-market fit.

• Language: English
• Publisher: IRB Media
• Release date: May 14, 2022
• ISBN: 9798822519596

IRB Media

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Insights on Dan Olsen's The Lean Product Playbook

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 1

#1

Product-market fit is the process of determining if a product is well-suited for its market. It is one of the most important Lean Startup principles, and this playbook will teach you how to achieve it.

#2

Product-market fit is when your product creates significant customer value. It is achieved when your product meets real customer needs and does so in a way that is better than the alternatives.

#3

The Product-Market Fit Pyramid is a hierarchical model that decomposes product-market into its five key components. Each layer of the pyramid depends on the layer immediately beneath it. Product-market fit lies between the top and bottom sections of the pyramid.

#4

The pyramid separates the market into its two components: the target customers and their needs. The needs layer is above the target customers layer in the model because it’s their needs that are relevant to achieving product-market fit.

#5

The product-market fit pyramid applies to services as well as products. The typical distinction between a product and service is that a product is a physical good while a service is intangible. However, with products delivered via the web and mobile devices, the distinction between product and service has been blurred.

#6

A great example of a product that achieved product-market fit is Intuit's Quicken personal finance software. The company pioneered the use of customer research and user testing to inform software development. They invented the follow me home concept, where Intuit employees would go to retail stores and wait for customers to buy a copy of Quicken, and then follow them home to see how they used the software.

#7

The Lean Product Process, shown in Figure 1. 2, helps you navigate each layer of the pyramid from the bottom up. It helps you articulate and test your key hypotheses for each of the five components of product-market fit.

#8

The Lean Product Process is an iterative process that allows you to revise your hypotheses, designs, and product as you make progress, all of which could be considered rework. The goal is to achieve product-market fit as quickly as possible.

#9

The Lean Product Process will guide you through the critical thinking steps required to achieve product-market fit. Solution space is where your product or design exists, while problem space is where all the customer needs that you want your product to deliver live.

#10

The concept of problem space versus solution space can be illustrated by the space pen. When NASA was preparing to send astronauts into space, they knew that ballpoint pens would not work because they rely on gravity in order for the ink to flow. One of NASA's contractors, Fisher Pen Company, invented the Space Pen, which works great in zero gravity.

#11

The market is not defined by any specific solutions that meet those needs. It is a set of related customer needs, which rests squarely in problem space. A market is not tied to any specific solutions that meet those needs.

#12

The distinction between the what and the how is often made by strong product teams. The what is the benefits that the product should provide for the customer. The how is