How Does Oji Udezue of Typeform Pick Sharp Problems and Build Products That Spread?

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September 14, 2023
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Lenny's Podcast
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How Does Oji Udezue of Typeform Pick Sharp Problems and Build Products That Spread?

TL;DR

Products spread sustainably when they solve a sharp, important problem exceptionally well, not when teams manufacture synthetic virality around a weak experience. Oji Udezue evaluates B2B SaaS ideas across two dimensions: how many departments perform a workflow and how frequently they perform it, such as daily, weekly, or three times a week. Read on for his frameworks for choosing promising problems, increasing product usage, and applying customer science without neglecting innovation.

Transcript

Products who try to be viral just for what I call synthetic virality that fail. Because in the end, if you're synthetically viral and people get to the product and it sucks, that's it. Slack wasn't even viral, there was no synthetic virality. Slack couldn't even connect to organizations for the longest time. You could be working on the third floor,... Read More

Key Insights

  • Sustainable virality is a consequence of product value, not merely a set of sharing mechanics. If a synthetically viral product disappoints new users, distribution cannot preserve its growth because the underlying experience gives people no reason to remain or recommend it.
  • A sharp problem is an important and clearly defined customer need that a product can solve exceptionally well. Oji presents this focus as the foundation of both strong product quality and the word-of-mouth behavior that helped Slack spread between workplace groups.
  • B2B SaaS opportunities can be evaluated using workflow breadth and workflow frequency. Breadth measures whether a workflow belongs to one department or nearly everyone, while frequency distinguishes activities performed daily or several times a week from those completed only occasionally.
  • Frequent workflows used across an entire organization offer substantial potential but are difficult markets to enter. Activities such as email, collaboration, writing, calendaring, and organizational knowledge already attract large companies, including Microsoft, Google, and Atlassian.
  • High-frequency niche workflows are a productive area for B2B SaaS companies. Products for engineering, recruiting, marketing, or sales can become valuable businesses because a defined department performs the relevant work repeatedly and may regard the product as essential.
  • Low-frequency workflows require a strategy for increasing product importance. A company can identify the department that treats an occasional organization-wide task as mission-critical, then build additional capabilities that support that department's daily responsibilities.
  • Workflow categories are strategic positions rather than permanent labels. Companies can move toward more attractive categories by increasing usage frequency, expanding across departments, or developing products for a core group whose needs are more recurring and consequential.
  • Customer science is necessary but cannot answer every innovation question. Lean methods, validation, and failing fast improved software development, yet Oji argues that founders must still exercise judgment about the problem space and create solutions that customers may not have proposed themselves.

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Questions & Answers

Q: How does Oji Udezue evaluate promising B2B SaaS product ideas?

He evaluates the workflow using two dimensions: how many company departments it applies to and how frequently it is performed. Teams should ask whether the workflow belongs to only a few departments or all of them, and whether it happens daily, weekly, or three times a week. This framework helps founders and investors reason about which problem spaces may support successful software companies.

Q: What is a sharp problem in product development?

A sharp problem is an important, clearly focused customer need that a product can solve extremely well. Oji describes solving such a problem with a great product as the bedrock of virality. The strength of the solution gives customers a genuine reason to discuss and recommend it.

Q: Why does synthetic product virality fail?

Synthetic virality fails when sharing mechanics bring people to a product that disappoints them. As Oji puts it, if people reach the product and it “sucks,” the viral mechanism cannot sustain growth. The underlying product and problem must therefore be strong before virality tactics can create durable value.

Q: How did Slack spread without built-in synthetic virality?

Slack initially could not connect separate groups within the same organization, so people on different floors might not know that colleagues were using it. Instead, satisfied users talked about Slack at lunch and described it as amazing, prompting other teams to want it. Oji presents this word of mouth as the bedrock of virality.

Q: What two questions define Oji Udezue’s workflow framework?

First, how many departments in a company does the workflow apply to: only a few or all of them? Second, how intense or frequent is the workflow: daily, weekly, three times a week, or another cadence? Plotting these dimensions creates a quadrant for comparing B2B SaaS opportunities.

Q: What role does customer science play in product innovation?

Customer science helps validate founders’ ideas and improved a period when much innovation was not validated by customers. However, Oji says it is not the solution to everything. Innovation, the chosen problem space, and the solutions created for that space remain major drivers of software-company success.

Q: Why should product teams be careful when applying frameworks?

Oji shares product frameworks while also warning that companies should be careful in how they apply them. Frameworks can structure questions about workflows, customers, product-led growth, and virality, but they do not replace judgment about the problem and solution. Teams still need both customer validation and innovation.

Q: What product and growth topics does Oji Udezue discuss on Lenny’s Podcast?

Oji discusses frameworks for product and growth, lessons from Calendly, Atlassian, and Typeform, and approaches to product-led growth. He also covers sharpening an ideal customer profile, increasing product virality, and a concept called forest time. His experience includes product roles at Microsoft, Atlassian, Calendly, Twitter, and Typeform.

Summary & Key Takeaways

  • Oji Udezue evaluates B2B SaaS opportunities along two dimensions: how many departments use the workflow and how frequently they perform it. Workflows used daily or several times a week offer stronger potential, particularly when they serve either everyone in an organization or a specialized department with an important recurring need.

  • The most attractive workflow categories are frequent, organization-wide activities and high-frequency niche activities. The first category includes collaboration, email, calendaring, writing, and knowledge tools, but it is difficult to enter because large companies dominate it. The second includes specialized tools for engineering, recruiting, marketing, and sales teams.

  • A company is not permanently trapped in its original workflow category. Strategy can increase its prospects by finding users who consider the product mission-critical, serving more of their recurring needs, and expanding either frequency or organizational reach. Sustainable virality then emerges from solving a sharp problem well enough that customers recommend the product naturally.


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