In the world of business, companies typically fall into one of two categories: those that build products and those that offer services. However, many successful businesses overlook a critical phase in their development process—the discovery phase.
Often perceived as a waste of time, the discovery phase is frequently sidelined in favor of speed and agility. Companies rush to launch their offerings, thinking they can figure it out along the way.
But here’s the catch: skipping discovery can lead to unforeseen pitfalls—those frustrating “gotcha” moments. Discovery isn’t just a preliminary step; it’s a vital strategy for minimizing risk. It allows you to gauge the potential challenges associated with what you’re about to build or launch.
The Importance of Discovery: How Much is Enough?
If you’re redesigning a service that will impact a large audience, it’s essential to invest time in discovery. The stakes are high—reputation and the continuity of vital services are on the line. On the other hand, if you’re developing something smaller for a new audience, you might not need weeks of research; the insights could be easier to gather, depending on the context.
So, how do you determine the right amount of time for discovery? The answer lies in assessing the risks associated with customer value, development costs, reputation, and market opportunity.
Key Areas to Focus On
1. Define Your Hypothesis
Start by identifying the core problem you aim to solve with your product or service. This involves understanding your target customers and their specific needs.
2. Identify Your Assumptions
Consider the assumptions you may be making about how customers will interact with your offering. Line up some user research to validate your assumptions.
3. Ask the Right Questions
Create a comprehensive question bank to streamline your discovery process. Customize this bank for each project, but include fundamental questions such as:
- What do I not know about this product/service?
- Are there any regulatory policies to consider?
- What are our goals and vision for this offering?
- How will we map the customer journey?
- Who are the key stakeholders?
- What does our customer research plan look like?
Another approach to a question bank is to use a High Level lean canvas model, this helps to highlight gaps and identify known risks. Here is a good example to use.
4. Assess and Refine
Pull together all the gathered information and evaluate what it tells you. Do you have a product-market fit? How does your service address customer problems? This stage is crucial for determining whether you’re on the right track or need to adjust your hypothesis.
Conclusion
Investing time in the discovery phase ultimately accelerates the development process. Without it, you risk creating a product or service that does not have the right market fit and losing out to competitors who may launch superior offerings.
Some may argue that this advice is more applicable to mid-sized or large companies. In reality, it’s even more critical for small businesses, where the risks, costs, and reputational stakes are often magnified.
If you found this blog post helpful, please share it with others who might benefit. Do get in touch if you want to talk further.
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