How continuous product discovery fuels blue ccean strategy

In the market today, product teams are not just striving to outperform rivals, but are seeking to create uncontested market spaces—what is known as a Blue Ocean Strategy. This approach focuses on generating new demand in unexplored markets, rendering any previous competition irrelevant. We at BizNest, have seen how continuous product discovery is a crucial practice that fuels this, enabling product teams to explore new territories faster and more efficiently than their competitors, enabling them to build significant market share before incumbents. In contrast, project-focused discovery often limits this potential by adhering to predefined outcomes and fixed scopes. This makes it challenging to find true ‘blue ocean’ opportunities, as the research goals, and subsequent questions tend to be constrained.

This article explores how continuous product discovery can unlock blue ocean opportunities, the limitations of project-focused discovery, and how teams can transition to a more exploratory and strategic approach.

The limitations of project-focused discovery

Project-focused discovery is a traditional approach where the scope is defined by fixed start and end dates, specific deliverables, and often a predetermined hypothesis to validate. The questions asked during this type of discovery are typically narrow and aimed at confirming existing assumptions.

Example of a project-focused discovery question:

"How are new customers using our integration with Hubspot?"

This question is designed to validate a specific question. While it may provide immediate answers, it restricts the team's ability to explore broader customer needs or uncover unforeseen opportunities.

Pitfalls of project-focused discovery:

• Limited scope for innovation: By concentrating on predefined hypotheses, teams miss the chance to explore new ideas that could lead to ground-breaking products or services.

• Loss of intellectual property: Valuable insights are often documented in isolated reports or presentations and then forgotten, leading to a loss of knowledge that could have been built upon.

• Disconnected efforts: Each project operates in a silo, disconnected from the overall product vision or other research efforts, resulting in fragmented understanding and missed opportunities.

• Fixed outcomes limit exploration: The focus on specific, predetermined results prevents teams from discovering alternative solutions that could open up new markets.

The power of continuous product discovery

Continuous discovery is an ongoing process where teams consistently engage with customers to uncover needs, test ideas, and iterate on solutions. The questions asked are open-ended, encouraging exploration rather than mere validation.

Example of a continuous discovery question:

"What challenges are our customers facing in achieving their sales goals, and how might we address them?"

This type of question invites a broader dialogue with customers, uncovering insights that could lead to innovative solutions and new market opportunities. This is what is also known as a ‘research question’, a high-level question which enables our interviewee to take us into unchartered waters.

Benefits of open-ended questions in continuous discovery:

• Uncovering hidden needs: Open questions allow teams to discover problems customers may not have explicitly mentioned but are critical to address.

• Fostering innovation: By not limiting the inquiry to predefined hypotheses, teams can explore a wider array of possibilities, leading to unique value propositions.

• Building customer empathy: Continuous engagement helps teams understand the customer's world more deeply, informing more effective and innovative solutions.

• Enabling Blue Ocean Strategy: By exploring uncharted customer needs, teams can identify opportunities to create new market spaces.

Catching opportunities missed by a project-focused approach: With project-focused questions, the team's vision is narrowed to specific outputs, causing them to overlook broader opportunities. Continuous discovery keeps the lens wide, ensuring that valuable insights are not missed due to a limited scope.

Example: Netflix’s continuous innovation journey

A prime example of continuous product discovery fueling a Blue Ocean Strategy is Netflix. Initially launched as a DVD rental service, Netflix continuously sought to understand and anticipate customer needs beyond the traditional rental model. By consistently engaging with users and experimenting with new features, Netflix transitioned to a streaming platform, creating a new market space that disrupted the entire entertainment industry.

But Netflix didn’t stop there. Recognizing the evolving preferences for unique and exclusive content, they embarked on producing original series and films. This move was driven by ongoing customer feedback and data-driven insights, allowing Netflix to offer content that differentiated them from competitors. By continually innovating and expanding their offerings based on continuous discovery, Netflix not only captured significant market share but also established itself as a leader in the streaming industry, effectively creating a blue ocean where competition became irrelevant.

Transitioning from output-based to continuous product discovery

Making the shift requires intentional changes in mindset and processes:

1. Adopt an exploratory Mindset: Encourage teams to ask open-ended questions and be willing to follow where the insights lead, even if it deviates from initial plans. Example Shift: Change from "How can we improve Feature X?" to "What are the biggest challenges our users face daily?"

2. Implement Dual-Track Agile: Run discovery in parallel with delivery to ensure continuous learning feeds into development. This approach keeps innovation ongoing rather than confined to project timelines.

3. Use the Opportunity Solution Tree (OST): Teresa Torres’ OST helps map out customer problems, opportunities, and potential solutions in a visual format. It supports teams in exploring multiple avenues before converging on the most promising ones. Learn more about OST.

4. Conduct regular discovery sprints: Short, focused sprints maintain momentum and allow for rapid iteration. They keep the team engaged with customers and open to new insights. Discover how to master discovery sprints.

5. Prioritize learning over deliverables: Shift the focus from building features to understanding customer needs deeply. Encourage teams to measure success by the insights gained rather than just the outputs delivered.

6. Build cross-team collaboration: Involve diverse team members, including product marketing, from the outset to ensure a holistic understanding of the market and customer. This collaboration enriches the discovery process and aligns efforts towards common goals.

Transitioning to continuous discovery is not an overnight change - it takes time for teams to fully adopt and integrate these practices. The key is to get started, even if on a small scale, and begin demonstrating positive results. As teams see the benefits, they can optimize and scale the approach over time. Patience and persistence are essential, but the long-term payoff in achieving a Blue Ocean Strategy is well worth the investment.

Conclusion

Transitioning from project-focused discovery to continuous product discovery is a strategic shift that fuels a Blue Ocean Strategy. By embracing open-ended exploration and continuous learning, teams unlock opportunities that would otherwise remain hidden. This approach not only leads to more innovative products but also drives significant business growth and competitive advantage.

🚀 Are you ready to unlock blue ocean opportunities through continuous discovery? At BizNest, we are helping product teams transform their discovery processes to innovate and excel. Join our waiting list to learn how we can partner with you on this exciting journey.