#2 How to plan and create IT services // Lean Startup, MVP, PMF, AARRR, Growth Hacking, North Star Metric, Agile Methodolgy

[Part 1] Zero to One, Software Development

1. When creating a new service

If any problems are found in the product direction during this process, the company must conduct a pivot.
∙ Lean start-up: minimizing waste during the manufacturing process

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2. Minimum Viable Product(MVP)

∙ Start with MVP (Minimum Viable Product), verify ideas, and develop them
    - Quickly implement and test only key features
    - MVP ≠ low-quality product (must be as good as the features it has)
    - Do they really need our product?
    - Confirm PMF with MVP (a deliberate attempt to know the market and customers)
      ▷ Prove your ideas to the market
∙ From Prototype to MVP

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3. Product Market Fit(PMF)

: The extent to which the market and customers need our product (service)

∙ Products that have reached the stage of rapid self-growth (Exponential Organic Growth)
    ▷ Matching PMF with MVP is a method more suitable for IT products (services) produced based on software

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4. How to check PMF

① Net Promoter Score(NPS)

    - Ratio of recommended (9-10) customers / Ratio of non-recommended (0-6) customers
    - Let us know how satisfied our users are with our product
    - Simple and easy to measure
    - In the beginning, 10 recommended customers are much more valuable than 1,000 neutral customers.
② Directly ask customers

③ AARRR

▷ Pay attention to Retention

   - Returned visits, how long it takes to return after using the service, or how often customers use it

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5. Growth Hacking

: Determine whether customers are looking for us (KPI), and repeat the application/experiment of ideas that change products (services) and marketing to see if KPIs grow with data

∙ A field that simultaneously handles product (service) improvement, marketing, and data (engineering)
∙ Reduce communication costs by gathering the minimum number of people in charge when creating a product, and recover speed to achieve rapid growth
     - Improving products/services 
     - The goal is to grow the service throughout the entire process from user acquisition to monetization
     - Hypothesis verification and analysis based on data

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6. North Star Metric

: A number that measures an organization's goals, direction, and success
∙ Accurately grasp the current situation of the company, just as you can see the direction and location of a sailing ship while looking at the ‘North Star’
∙ Find leading indicators (Input Metrics) that affect the North Star Metrix and improve leading indicators
     ex) The North Star Metrix of Spotify = total time users spend listening to music
∙ OMTM (One Metric That Matters)
: One of the most important indicators

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7. Software Development

① Waterfall Software Development

∙ The process of sequentially developing design and development based on a set of processes that allow users to operate and use 'function' 
∙ A one-way project development methodology that requires the first stage to be organized like a waterfall to move on to the next stage

∙ Service planning STEP
   1) Main service concept confirmed

   2) Feature List

   3) Required Function Brainstorming

   4) Organize the data/policy required to implement features

   5) Organize processes by user

   6) Creating an information structure

   7) Wireframe / Screen Design or Storyboard

   8) UI Design

   9) Requirements Specification

② Agile Software Development

∙ A fast, repeatable, flexible and creative way to develop

③ Waterfall vs Agile 

	Waterfall Software Development	Agile Software Development
Pros	• Clear step-by-step accountability/progress confirmation • Project personnel have clear output criteria • Step-by-step output documentation clear  → easy to manage • Out-of-the-box and easy to work with	• Documentation Time ↓ • Quickly adapt to changing plans • Developers and designers have greater freedom → Flexible and creative results ↑
Cons	• Takes a very long time to revert if the planning/design goes wrong during the previous step. • Easy to miss out on areas not specified in the documentation in the previous step, and has a wide range of impact when changing plans  • Difficult to know the shape of the output before the test period	• Difficult to manage progress and levels • Lack of understanding of Agile obscures R&R • Increases communication time

 

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[Part 2] Understanding the Market And Customers

1. Constantly understand if our business is really what the market and the customers need

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2. Reading Trends

∙ Gartner announces expected growth graphs for technology every year -> IT Professionals must read them

https://www.gartner.com/en/newsroom/press-releases/2022-11-28-gartner-releases-first-hype-cycle-for-emerging-technologies-in-finance

Gartner Releases First Hype Cycle for Emerging Technologies in Finance

3. Digital Transformation

∙ Growth of Cloud Usage -> the age of Collaborative, Simultaneous, Collaborative Work
ex) subscription service of Hancom Office programs due to changes from On-Premise to Cloud-based
∙ Software As a Service (SAAS)
   - Subscription model: From short-term purchases to regular subscriptions
    ex) Movie theaters -> OTT / Music -> Melon / Bookstores -> Millie's study

 

 

 

▶ Korean Version:

https://softwarewhere.tistory.com/5

#2 IT 서비스를 잘 기획하고 만들려면? // 린 스타트업, MVP, PMF, AARRR, 그로스 해킹, 북극성지표, 애