WEBVTT 1 00:00:02.070 --> 00:00:03.540 Hello, and welcome to part two 2 00:00:03.540 --> 00:00:05.823 of the products video lecture. 3 00:00:08.220 --> 00:00:09.600 So, the next thing I want to talk about 4 00:00:09.600 --> 00:00:12.570 is the minimum viable product. 5 00:00:12.570 --> 00:00:15.690 So, this is a model that helps you think about 6 00:00:15.690 --> 00:00:20.690 how can you get started, get some information, 7 00:00:20.790 --> 00:00:25.790 and get some revenue at a very low risk, low cost. 8 00:00:30.450 --> 00:00:34.470 What's the minimum amount that you can do? 9 00:00:34.470 --> 00:00:37.110 The minimum viable product that you can get, 10 00:00:37.110 --> 00:00:39.900 those two things, money and information, 11 00:00:39.900 --> 00:00:42.360 that help you get started, and that help you build, 12 00:00:42.360 --> 00:00:44.463 that help you get better at what you do. 13 00:00:51.120 --> 00:00:54.660 So, again, what you want here is to get 14 00:00:54.660 --> 00:00:58.290 a lot of information and a good amount of money 15 00:00:58.290 --> 00:01:01.860 with the least amount of effort, the least amount of risk. 16 00:01:01.860 --> 00:01:06.860 And here is a website that says more. 17 00:01:11.460 --> 00:01:14.130 So, this gets you into a cycle, 18 00:01:14.130 --> 00:01:18.960 where you can start small and build and get better 19 00:01:18.960 --> 00:01:22.170 at what you do, and continue to make money, 20 00:01:22.170 --> 00:01:25.350 but the key thing is to keep learning 21 00:01:25.350 --> 00:01:28.320 and getting better and better at what you do, 22 00:01:28.320 --> 00:01:33.273 and to improve the product or the service as you go. 23 00:01:39.600 --> 00:01:44.160 Again, here, that it delivers value and lets you learn 24 00:01:44.160 --> 00:01:47.760 about what's valuable here, what do folks like, 25 00:01:47.760 --> 00:01:50.493 and to get some money back, as well. 26 00:01:52.890 --> 00:01:57.870 So, again, you want to maximize revenue information 27 00:01:57.870 --> 00:02:00.570 and minimize cost, effort, and time, 28 00:02:00.570 --> 00:02:04.560 so think about for your business, what would this be? 29 00:02:04.560 --> 00:02:05.790 How would you start small? 30 00:02:05.790 --> 00:02:08.700 What's a low-risk way that you can 31 00:02:08.700 --> 00:02:12.090 get something onto the market 32 00:02:12.090 --> 00:02:14.640 so you can make a little bit of money, 33 00:02:14.640 --> 00:02:17.010 gain a whole lot of information, 34 00:02:17.010 --> 00:02:20.553 but not cost a lot of money, time, and effort? 35 00:02:24.240 --> 00:02:29.240 Next, I wanted to talk about a very well-known model of 36 00:02:29.910 --> 00:02:34.910 how do folks adopt new innovation over time, 37 00:02:38.190 --> 00:02:42.437 and this goes back very long ago, 1960s, 38 00:02:43.740 --> 00:02:46.290 but it's still in use now. 39 00:02:46.290 --> 00:02:49.380 And thinking about that there's a bell curve here 40 00:02:49.380 --> 00:02:54.380 of the number, so on the y-axis here 41 00:02:55.260 --> 00:03:00.260 is the number of people who are adopting it, 42 00:03:01.950 --> 00:03:05.250 and in the x-axis is time. 43 00:03:05.250 --> 00:03:09.180 So, you can see in this model that there will be 44 00:03:09.180 --> 00:03:11.880 a very small amount that like new things, 45 00:03:11.880 --> 00:03:14.130 that want to try new things, 46 00:03:14.130 --> 00:03:18.480 and then that will lead to a greater number 47 00:03:18.480 --> 00:03:20.013 of early adopters, 48 00:03:21.330 --> 00:03:24.960 and then once it really starts to gain speed, 49 00:03:24.960 --> 00:03:28.320 then there will be a much larger amount 50 00:03:28.320 --> 00:03:31.103 where people start to see it, 51 00:03:31.103 --> 00:03:36.103 they see others that have and they do it, 52 00:03:37.740 --> 00:03:41.940 onto the late majority, 53 00:03:41.940 --> 00:03:46.940 where already more than half have adopted it, 54 00:03:47.760 --> 00:03:49.987 but these folks are the next like, 55 00:03:49.987 --> 00:03:52.830 "Yeah, this is a real thing," 56 00:03:52.830 --> 00:03:56.010 and then the final are the laggards, 57 00:03:56.010 --> 00:03:59.343 those that are the last to adopt. 58 00:04:03.180 --> 00:04:07.563 So, here's a few thoughts on each group. 59 00:04:08.910 --> 00:04:12.510 The first ones really like to take risks. 60 00:04:12.510 --> 00:04:13.860 They like new things. 61 00:04:13.860 --> 00:04:18.063 They don't mind ignoring norms, being the first ones. 62 00:04:19.020 --> 00:04:20.883 The early adopters are, 63 00:04:21.870 --> 00:04:24.390 they often become the opinion leaders, 64 00:04:24.390 --> 00:04:27.904 sort of the spokespeople people for it, 65 00:04:27.904 --> 00:04:32.310 and then the key here is to make that jump, 66 00:04:32.310 --> 00:04:37.310 where you get the two really large parts of the bell curve, 67 00:04:37.920 --> 00:04:42.920 the late, the early and late majorities, 68 00:04:43.200 --> 00:04:45.667 and then last are the ones, 69 00:04:48.960 --> 00:04:52.980 the early majority are the ones 70 00:04:52.980 --> 00:04:56.400 that sort of really legitimize it, 71 00:04:56.400 --> 00:04:57.547 that they're the ones that are like, 72 00:04:57.547 --> 00:05:02.070 "Hey, this is out there, lots of people are doing it," 73 00:05:02.070 --> 00:05:04.557 you know, "it's safe, it's normal now." 74 00:05:07.290 --> 00:05:11.730 The late ones, they're sort of waiting to see 75 00:05:11.730 --> 00:05:16.730 what others do, that they tend to be a bit more skeptical, 76 00:05:16.890 --> 00:05:20.670 maybe reacting to social pressure, 77 00:05:20.670 --> 00:05:23.550 and then the last ones are the laggards. 78 00:05:23.550 --> 00:05:27.480 And in many ways, they're sort of forced to adopt. 79 00:05:27.480 --> 00:05:32.460 So, I was, in many ways, a laggard of a smartphone. 80 00:05:32.460 --> 00:05:35.550 I was one of the last ones to get one. 81 00:05:35.550 --> 00:05:40.200 I still tried to use a flip phone, 82 00:05:40.200 --> 00:05:45.030 and it reached a point where just to sort of operate 83 00:05:45.030 --> 00:05:50.030 normally in our society, I had to have one 84 00:05:50.190 --> 00:05:53.820 or really wanted to have one. 85 00:05:53.820 --> 00:05:57.183 Didn't want to be that much of an outlier, 86 00:05:58.806 --> 00:06:01.800 and in many folk cases, too, 87 00:06:01.800 --> 00:06:06.800 the laggards are folks that are lower 88 00:06:06.960 --> 00:06:11.490 in socioeconomic status 89 00:06:11.490 --> 00:06:16.053 and are sort of very risk of worse in this way. 90 00:06:18.300 --> 00:06:22.530 So, you can see that this also lines up 91 00:06:22.530 --> 00:06:25.560 with the product life cycle, 92 00:06:25.560 --> 00:06:30.560 where you see that all products have a life cycle over time, 93 00:06:30.600 --> 00:06:35.553 where they sort of start slow, they really gain speed, 94 00:06:36.780 --> 00:06:40.230 they have a time of maturity, 95 00:06:40.230 --> 00:06:44.670 and then the last one is its decline. 96 00:06:44.670 --> 00:06:48.510 Once it's sort of outlived its usefulness, 97 00:06:48.510 --> 00:06:52.290 outlived its lifespan, it's not, you know, 98 00:06:52.290 --> 00:06:56.490 it's been maybe replaced by something that's better, 99 00:06:56.490 --> 00:06:59.043 and then sales start to drop off. 100 00:07:01.740 --> 00:07:03.390 So, here are just some thoughts 101 00:07:03.390 --> 00:07:08.390 about how you can think about the four P's 102 00:07:08.910 --> 00:07:12.813 in each of these four stages, 103 00:07:15.180 --> 00:07:17.583 so feel free to pause it and read this. 104 00:07:23.730 --> 00:07:25.173 Pause and read this. 105 00:07:28.380 --> 00:07:29.213 And this 106 00:07:32.730 --> 00:07:33.563 And this. 107 00:07:35.550 --> 00:07:39.090 And in some cases with the decline, 108 00:07:39.090 --> 00:07:43.960 it may reach the point where it's just not worth it anymore, 109 00:07:45.870 --> 00:07:48.603 and it's time to sell, to discontinue, 110 00:07:53.746 --> 00:07:54.913 and like that. 111 00:07:56.442 --> 00:07:59.637 So, you can see here is sort of these two models 112 00:08:01.230 --> 00:08:04.650 lined up of over time, 113 00:08:04.650 --> 00:08:09.650 how the innovation diffusion and product lifecycle line up. 114 00:08:13.800 --> 00:08:15.330 So, that is the end. 115 00:08:15.330 --> 00:08:17.823 Thank you for watching.