the right it — Alberto Savoia (Part 1 of 2)

Law of Market Failure

Most new Products fail! Hard truth, but we rather believe the hard truth upfront. Even with competent execution most new Products fail. That’s the Law of Market Failure.

Why do most Products Fail?

Among the many many reasons most new Products fail, like Ran Out Of Cash, Bad Execution, Rift Between Founders, , Poor Marketing, Ahead Of Its Time, the most prominent among them is ‘No Market Need’. That is, the idea itself was a ‘Wrong It’ in the first place. In short it wasn’t the ‘Right It’. Built it the Right Way, but the ‘It’ itself was wrong in the first place.

Thoughtland

To make sure they have the right idea, they invest a significant time and money on Market Research. The problem though is that most often this research is done in Thoughtland. Thoughtland is an imaginary place where the idea is hatched.
When the idea stays too long in Thoughtland it attracts opinions and judgements. Experts disagree. Some folks thing the idea is great, others think its lame. Opinions either pro or opposing the ideas are loosely thrown around. Opinions are not Data. They are subjective and biased judgements. Most importantly they are provided by people who have no skin in the game. It is one thing when a potential users says, I’d buy that if it were available and completely another thing when the user actually puts in their $$ when the product is available.

Data

To beat opinions, you need Data. And Data needs to be Fresh (no point in having last years data to solve today’s problem); Relevant (To the specific product or decision being evaluated); Known (Not relying on Data collected from other people (OPD — Other People’s Data) in other organizations or for other projects to make your decisions — The methods vary to collect and filter the data, their biases, influences and motivations may have affected them when they compiled and summarized the data)

YODA

Your Own DAta (YODA) is market data collected firsthand by your own team to validate your own idea. YODA must satisfy the criteria of freshness, relevance, trustworthiness and significance.

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