OUT-OF-CLASS ASSIGNMENTS

WEEKS Three & Four: SOLUTION DEVELOPMENT

BNY MELLON

INCUBATION LAB 10-WEEK PROGRAM

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1. PRODUCT FEATURES & BENEFITS

FOCUS
Determine the product features of your product, by identifying the value proposition of your product.

2. PRODUCT FEATURE PRIORTIZATION MATRIX

FOCUS
Prioritize the product features that are most important to build in order to maintain focus.

APPLICATION APPLICATION
This is a bottom-up approach to developing a product, by focusing on the benefits and corresponding features that make up the product. This exercise will help identify the minimum viable product and the product development roadmap for your idea.

ASSIGNMENT EXPLANATION ASSIGNMENT EXPLANATION

Using the template provided, brainstorm potential product features that will deliver the customer benefits you are seeking to provide: 1. Document the customer utility gaps that you identified from the prior outof-class assignment. 2. Flip the customer utility gaps to determine the benefits your product will provide. 3. With each product benefit, brainstorm potential features (at least three) that will deliver the selected benefit. 4. Talk to at least five (5) potential customers and five (5) colleagues about the features. Select the most important product benefit and product features that you want to provide: 1. Identify criteria for prioritizing the product features. 2. Select the two most important criteria from your list. 3. Force rank the product features, by scoring them against the two criteria, using a three-number scale (1, 5, 10). 4. Plot the features based on their scores on the prioritization matrix. 5. Identify the feature that scored the best against the criteria.

CONTENT: PRIORITIZATION MATRIX CONTENT: PRODUCT FEATURES & BENEFITS

Source: Incubate Advisors Assignment Link: Template Length: 1 page Source: Incubate Advisors Assignment Link: Template Length: 2 pages

3. MINIMUM VIABLE PRODUCT

FOCUS
Brainstorming ideas for your minimum viable product (MVP).

4. PRODUCT FEATURE DEVELOPMENT ROADMAP

FOCUS
Develop a roadmap that illustrates the development sequence of your product features.

APPLICATION
Identifying potential MVP concepts will be important as you look to test your concept in the market with customers.

APPLICATION
The roadmap helps keep track of product feature development and helps communicate your product vision to stakeholders and customers.

ASSIGNMENT EXPLANATION
Develop three (3) potential MVPs for your idea. Remember, the MVP is the quickest, cheapest build of your product so it can be put in the hands of the target demographic for testing and observation. Identify the resource needs for developing your MVP (e.g., time, capital, technology development, internal staff, etc.).

ASSIGNMENT EXPLANATION
Create a product feature roadmap: 1. For each identified benefit, brainstorm potential features and create a feature prioritization matrix. 2. Select the top feature for each benefit and prioritize these features based on selected criteria. 3. Map out the product development roadmap based on the prioritization of these features. 4. Share your roadmap with at least five (5) potential customers and five (5) colleagues and synthesize their feedback on the product vision.

CONTENT: MVP EXPLAINED

Source: Startup Review: Kate Utter, CEO of Luxor Assignment: Template 1 page Assignment Link: http://slidesha.re/1ae5vCK Length: 26 pages

CONTENT: PRODUCT FEATURE ROADMAP

Source: Incubate Advisors Assignment: Template 1 page Assignment Link: http://bit.ly/W6ONu2

5. THE DIFFERENCE BETWEEN FEATURES AND BENEFITS

FOCUS
Understand the difference between a feature and a benefit and how the two link together to ultimately solve the end problem of the customer.

6. BRAINSTORMING PRODUCT FEATURES

FOCUS
Identify strategies to improve your ability to think outside the box and develop innovative product ideas.

APPLICATION
This presentation serves as supplemental content on brainstorming strategies and tools for more effective creative thinking.

APPLICATION
This article provides a framework for how to determine a product feature and benefit.

ASSIGNMENT EXPLANATION ASSIGNMENT EXPLANATION

For some entrepreneurs, its hard to see the difference between a feature and a benefit. They mistakenly present their products features as the solution to their customers problem, when what the customer really wants to know is how the product or service will benefit him or her. Since the difference between a feature and a benefit is not always clear, this article explores how one can define the feature and benefit of their product. This reading is a detailed PowerPoint presentation on breaking down the barriers to generating solutions. The concepts discussed in this presentation are based on the work of H. Scott Fogler, Steven LeBlanc and Benjamin Rizzo, documented in the book Strategies for Creative Problem Solving. The strategies discussed will help you hone your creative skills and apply those skills to solve nearly any problem. Drawing on National Science Foundationfunded, advanced research that studied problem-solving techniques in all areas of modern industry, the presentation offers a comprehensive, systematic problem-solving framework.

CONTENT: WHY FEATURES TELL, BUT BENEFITS SELL

Source: Ideas Crossing Blog Assignment Link: http://bit.ly/1brJRbT

CONTENT: BREAKING DOWN BARRIERS TO GENERATING IDEAS

Source: University of Michigan Assignment Link: PowerPoint PDF Length: 40 pages

7. PROJECT PRIORTIZATION
FOCUS
Create a structured approach determining which projects matter most. for

8. BUILDING A MINIMUM VIABLE PRODUCT

FOCUS
The concept behind a Minimum Viable Product (MVP) is explained in detail by discussing different approaches people use to test and validate their ideas in the market.

APPLICATION
This presentation serves as supplemental content on developing the product feature prioritization matrix.

APPLICATION
This article serves as supplemental content on the definition and development of a minimum viable product.

ASSIGNMENT EXPLANATION
Deciding how to prioritize and separate the high-priority projects from lower-priority projects can be daunting. Since it is difficult to be objective when making these kinds of decisions, a structured approach can be helpful in prioritizing your time and resources. Using a prioritization matrix is a proven technique for making tough decisions in an objective way.

ASSIGNMENT EXPLANATION
Creating Minimum Viable Products allows you to quickly test out the assumptions you're making about your business, validate that customers are indeed interested in and willing to pay for your solution, and help you to prioritize your product's features. This article will discuss how Ash Maura, Founder of Spark59 and author of Running Lean, developed an MVP to test his companys original product idea.

CONTENT: A STRUCTURED APPROACH TO WORKING ON WHAT MATTERS MOST

Source: University of Wisconsin Assignment Link: PDF Length: 8 pages

CONTENT: HOW I BUILT MINIMUM VIABLE PRODUCT

MY

Source: Ash Maurya Practice Trumps Theory Assignment Link: http://bit.ly/MXTx5U

9. ULTIMATE GUIDE TO MVPs

FOCUS
Learn about successful startups that have used MVPs to validate their assumptions.

10. EFFECTIVE PRODUCT ROADMAPS

FOCUS
Familiarize yourself with the purpose of creating a product roadmap and how to leverage them to communicate your product vision and development strategy.

APPLICATION
This article provides potential MVP ideas based on seven general MVP categories.

APPLICATION
This article serves as supplemental content on the development of your product roadmap after prioritizing your product features.

ASSIGNMENT EXPLANATION
This article provides real-life examples of successful MVPs. In addition, the author explains when to use certain MVP models based on the purpose of the experiment and the focus of the customer interaction. Excerpt from the article: Selecting an MVP model all depends upon your purpose for creating the MVP. Are you testing the appeal of an idea for a specific type of user? Do you want to learn which are the killer features? Do you need to generate revenue? It comes down to tackling the biggest risk you have right now.

ASSIGNMENT EXPLANATION
This short blog post discusses the importance of creating a product roadmap and how to use it as a communication tool for those around you. The author, Janna Bastow, is the founder of ProductCamp London and ProdPad, product management software that helps manage a users roadmap and product backlog.

CONTENT: THE ULTIMATE GUIDE TO MINIMUM VIABLE PRODUCTS

Source: How to Build a Scalable Business Assignment Link: http://bit.ly/1ioWniZ

CONTENT: ASK A PRODUCT MANAGER: EFFECTIVE PRODUCT ROADMAPS

Source: Mind the Product Blog Assignment Link: http://bit.ly/1giju7V

ASSIGNMENT 1 TEMPLATE
Product Features & Benefits
Customer Utility Gap Product Benefit

Customer Productivity

Inefficient Alternatives/Investment Manager Core Strength

Tighter Hedge/BNY Mellon FX Expertise

Simplicity

Self Calculated Hedge Ratio

Transparent FX price

Convenience

Own Multiple Securities/SWAPs Investment Manager Takes on FX Exposure/Need to appoint FX Prime broker and select hedge counterparties ADR Misperception of FX Immunization

One Security/Exchange traded BNY Mellon Manages FX Exposure/No need to monitor counterparties or engage FX Prime Broker ADR FX Immunization

Risk

Image & Quality

Costs

Multiple Transactions & >45bps Expense Ratio

One Transaction & 38 bps Expense Ratio

Product Benefit (ADR FX Immunization):

Product Feature 1: Transparent Index Spot Rate

Product Feature 2: Automated Calculation of Hedge Ratio

Product Feature 3: AAA Credit Rating of FX Counterparty

ASSIGNMENT 2 TEMPLATE
Product Features Prioritization Matrix Product Benefit: FX immunisation on ADR Investment
Prioritization Criteria
1. Transparent Index spot rate 2. Automated Calculation of Hedge Ratio 3. AAA Credit Rating of FX Counterparty 4. Single Security, 40's Act

5. Exchange-traded

Ranking System 10=

Ability of Investor
Index Spot Rate Automated Hedge Calculation AAA Credit Rating of FX Counterpart Single Security

Index spot rate

Automated Hedge Calculation

AAA Credit Rating of FX Counterpart

Single Security

Total

1 10

5 10

5 5

11 20

5=

1=

1 10

1 10 10

3 30

Ranking System 10=

Time to market
Index spot rate Automated Hedge Calculation AAA Credit Rating of FX Counterpart Single Security

Index spot rate

Automated Hedge Calculation

AAA Credit Rating of FX Counterpart

Single Security

Total

1 5 1 10 1 10

1 5

1 1 1

3 11 3 30

5=

1=

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ASSIGNMENT 2 TEMPLATE
Product Features Prioritization Matrix

Single Security

Time to Market

Automated Hedge Calculation

Index Spot Rate AAA Credit Rating of FX Counterpart

Ability of Investor

ASSIGNMENT 3 TEMPLATE
Minimum Viable Product

MVP Idea 1:
Single security with a currency hedge listed on an exchange

Resource Needs:
Legal; IP & 40's ACT expertise Listing Fees Minor Technology Refit Marketing and distribution

MVP Idea 2:
Single security traded in the OTC Markets

Resource Needs:
Legal; IP & Securities Law Minor Technology Refit Marketing and Distribution

MVP Idea 3:
Customized fixed income note

Resource Needs:
Major Technology Build Marketing and Distribution

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ASSIGNMENT 4 TEMPLATE
Product Feature Development Roadmap

Feature 3
Description AAA Credit rating of FX Counterparty

Feature 2
Description Automated Calculation of Hedge Ratio Sub-Problem Solved: Duration match to a mixed pool of securties Expected Benefit: Export of technical expertise to a broad investor base

Sub-Problem Solved: investor assets unknowingly having credit exposure to subprime risk

Feature 1
Description Transparent Spot Rate

Expected Benefit: Investor risk mitigation

MVP
Description Exchange listed hedged security Sub-Problem Solved: FX immunization in accounts that can not hold derivatives Expected Benefit: Increased return to investors

Sub-Problem Solved: Ensure market price for FX execution

Expected Benefit: Investor Trust

Synthesis of Customer and Colleague Feedback on Product Vision:

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