The Results: What We've Learned Building This System
Building a systematic product creation engine. Here's what works, what doesn't, and what we've learned.
The Results: What We've Learned Building This System
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Building a systematic product creation engine is no easy feat. Over the past year, we've been documenting our journey to create a repeatable, defensible process for launching successful SaaS products. Through trial and error, we've learned a lot about what works, what doesn't, and how to continuously improve our approach.
In this article, I'll share the key insights we've uncovered - the frameworks, tools, and strategies that have proven effective, as well as the mistakes we've made along the way. My goal is to give you an honest, practical look at building a product creation system, so you can learn from our experience and apply these lessons to your own work.
Whether you're an aspiring founder, a product manager, or someone interested in systematic innovation, this article will provide a transparent window into our process. You'll come away with a clear understanding of the core components that make up our product creation engine, as well as a roadmap for how to build your own.
What Works: The Core Components
At the heart of our product creation system are four key elements that have consistently delivered results:
1. Dual-Filter Validation
Rather than relying on a single validation checkpoint, we've implemented a two-stage filtering process to ensure our ideas have both short-term desirability and long-term durability.
The first filter, which we call the "Heat Filter," focuses on validating that a tribe of real humans urgently wants the problem we're solving. This involves techniques like running desirability tests, building waitlists, and analyzing community engagement. Only ideas that pass this initial "heat" test move forward.
The second filter, the "Durability Filter," then evaluates whether the problem will still matter and keep generating revenue 12-36 months from now. We score ideas on factors like job frequency, economic buyer budget, and potential for switching costs. This helps us identify compounding niches versus cash-flow micro-bets.
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By combining these two filters, we've been able to build a pipeline that consistently surfaces promising ideas and weeds out those that lack long-term potential.
2. AI Orchestration
While individual AI tools have become incredibly powerful, we've found that the real magic happens when you orchestrate them as part of a larger system. Our product creation engine integrates multiple AI agents, each with a specific role and set of capabilities.
For example, our "Insight & Narrative Strategist" uses language models to generate unfair insights and craft compelling product narratives. Our "Market Scanner" taps into large datasets to map community heat and niche durability. And our "Test Engineer" automatically generates unit, integration, and end-to-end tests.
By coordinating these AI agents and feeding their outputs into downstream steps, we're able to dramatically accelerate our validation and development processes. It's like having a team of expert researchers, strategists, and engineers - but at a fraction of the cost.
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3. Portfolio Approach
Rather than betting everything on a single idea, we take a portfolio approach to product creation. We maintain a pipeline of multiple concepts, each at different stages of validation and development. This allows us to:
- Kill Fast: Quickly identify and terminate ideas that don't meet our criteria, freeing up resources to focus on more promising opportunities.
- Prioritize by Expected Value: We score each idea based on its projected long-term value, then prioritize our efforts accordingly.
- Diversify Bets: By having a mix of high-risk, high-reward ideas alongside more stable, compounding niches, we reduce our overall exposure and create a balanced portfolio.
This portfolio management approach has been essential for building a sustainable, resilient product creation engine. It enables us to make smarter, more informed decisions, and to ultimately increase our odds of finding that elusive "home run" idea.
4. Systematic Documentation
One of the key lessons we've learned is that documentation isn't just a necessary evil - it's a feature of our product creation system. By rigorously documenting every step of our process, we've been able to:
- Improve Transparency: Our documentation provides a clear, auditable trail of how decisions were made and what was learned along the way.
- Enable Collaboration: Team members can easily onboard, contribute, and build upon each other's work by referencing the centralized documentation.
- Accelerate Iteration: When we uncover new insights or need to make adjustments, our documentation helps us quickly identify the impact and propagate changes throughout the system.
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From our Unfair Insight Briefs to our Architecture Decision Records, every piece of our product creation process is captured in a standardized, markdown-based format. This has been instrumental in turning our system from a fragmented set of best practices into a well-oiled, scalable engine.
What Doesn't Work: Lessons Learned
Of course, our journey hasn't been without its fair share of missteps and failures. Here are some of the approaches we've tried that ultimately didn't pan out:
1. Ad-Hoc AI Prompting
In the early days, we relied heavily on manual, ad-hoc prompting of AI tools to support our validation and development processes. While this allowed us to quickly experiment with the technology, it quickly became unwieldy and error-prone.
Without a structured, orchestrated system, we found that our AI outputs were inconsistent, difficult to reproduce, and often lacking the necessary context and quality controls. This led to wasted time, suboptimal decisions, and a general sense of frustration with the technology.
2. Single-Idea Focus
When we first started, we were laser-focused on validating and building a single, "killer" product idea. We poured all of our resources into this one concept, only to find that it struggled to gain traction and failed to meet our long-term durability criteria.
Putting all our eggs in one basket made us overly attached to the idea and blinded us to its flaws. It also left us vulnerable when that idea inevitably hit roadblocks, as we had no other options to fall back on.
3. Build-First Mentality
Early on, we had a strong bias towards jumping straight into building features and products. We were eager to start coding and ship something tangible, rather than investing time in upfront validation and planning.
This "build-first" approach often led to wasted effort, as we'd end up building things that didn't align with our target customers' needs or fit within our long-term strategic vision. We'd get caught up in the excitement of new features and lose sight of the bigger picture.
4. Unstructured Documentation
When we first started documenting our process, it was a bit of a free-for-all. We had various Google Docs, Notion pages, and Confluence articles scattered across different platforms, with no clear organization or consistency.
This made it challenging to find information, maintain context, and ensure that our learnings were being properly captured and shared. It also created friction for new team members trying to get up to speed and contribute effectively.
Lessons Learned: Key Principles for Success
Through the successes and failures we've experienced, we've distilled a set of core principles that have guided the development of our product creation system:
1. Validation is a Process, Not a Checkpoint
Effective validation isn't a single "go/no-go" decision - it's an ongoing, iterative process that permeates every stage of product development. By implementing our dual-filter approach, we've learned to continuously validate and re-validate our assumptions, rather than relying on a one-time validation event.
2. AI Tools Need Orchestration, Not Just Prompting
While individual AI tools can be incredibly powerful, the true magic happens when you integrate them into a cohesive, orchestrated system. By defining clear roles and workflows for our AI agents, we've been able to leverage their capabilities in a much more systematic and impactful way.
3. Portfolio Management is Essential for Resilience
Betting everything on a single idea is a recipe for disaster. By maintaining a diverse portfolio of product concepts, we've been able to reduce our risk, make smarter decisions, and increase our chances of finding long-term success.
4. Documentation is a Feature, Not a Chore
Thorough, standardized documentation has proven to be a critical component of our product creation engine. It's not just a necessary evil - it's a feature that enables transparency, collaboration, and continuous improvement.
Future Improvements: What's Next?
As we continue to refine and evolve our product creation system, there are a few key areas we're focused on improving:
1. Deeper AI Integrations
While our current AI orchestration has been effective, we're always looking for ways to deepen our integrations and unlock even more powerful capabilities. This could involve expanding our agent network, enhancing the handoffs between tools, and exploring more advanced language models and data sources.
2. Increased Automation
One of our primary goals is to further automate and streamline our processes wherever possible. This might include automatically generating test suites, automatically scoring and prioritizing ideas, or automatically drafting documentation templates based on our established patterns.
3. Enhanced Scoring and Prioritization
Our current portfolio management approach relies on a manual scoring system to prioritize our ideas. Moving forward, we want to explore more sophisticated scoring models that can better predict long-term value and guide our resource allocation decisions.
4. Community-Driven Features
Finally, we're excited about the prospect of opening up our product creation system to a wider community. This could involve features like crowdsourced idea submissions, peer-to-peer validation, and collaborative documentation.
By continuously iterating on our approach and incorporating new technologies and insights, we're confident that we can further refine our product creation engine and uncover even more successful, durable SaaS businesses.
Takeaways
Here are the key takeaways from our journey in building a systematic product creation system:
- Validate for Both Heat and Durability: Don't just focus on short-term desirability - ensure your ideas have long-term staying power.
- Orchestrate AI, Don't Just Prompt: Integrate AI tools into a cohesive system to unlock their full potential.
- Manage a Portfolio, Not a Single Bet: Diversify your bets to reduce risk and increase your chances of finding a breakthrough.
- Documentation is a Feature, Not a Chore: Rigorous documentation enables transparency, collaboration, and continuous improvement.
- Keep Iterating and Improving: Stay adaptable and always be on the lookout for ways to refine and enhance your processes.
What if you could learn from these mistakes and build on these successes? I encourage you to take these lessons and apply them to your own product creation efforts. With the right systematic approach, you can increase your odds of finding that elusive, compounding SaaS business.