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GA Innovating in the Enterprise Idea 1

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    Alex Cowan

    INN VATIN INTHE ENTERPRISEPUTTING YOUR IDEAS IN MOTION

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    ABOUT ME

    Entrepreneur (5x)Intrapreneur (1x)

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    ABOUT ME

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    ABOUT ME

    www.alexandercowan.comALEX COWAN

    AlexanderCowan.com

    @cowanSF

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    SCALE-FRIENDLY VS. INNOVATION-FRIENDLYScaleFriendly

    Innovation

    Friendly

    $ !?

    ? ! ? ? ?

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    SCALE-FRIENDLY VS. INNOVATION-FRIENDLY

    ? !

    #1: Start with theindividual

    #2: Anchor to

    problems,not solutions

    #3: Become abetter storyteller

    #4: Test early, test often

    #5: Learn first, scale second

    #6: Go see

    #7: Kill zombieideas

    #8: Innovate for yourbusiness type

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    1Start with the individual

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    Empathy Creativity

    DESIGN THINKING

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    DESIGN THINKING- APPLICATIONS

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    Entry1

    Urinate as they go2

    Edges preferred3

    Speedy4

    PB > cheese5

    Empathy

    DESIGN THINKING- APPLICATIONS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    Check & Repair

    UV Validation

    Relevant Placement

    A Better Mouse Trap

    Powered by Better Bait

    Creativity

    1

    2

    3

    4

    5

    DESIGN THINKING- APPLICATIONS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    DESIGN THINKING- PERSONAS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    DESIGN THINKING- PERSONAS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    NOT A GOOD PERSONA

    Women

    Age 28-45

    Has kids Socialize with other moms

    Online with Facebook

    86% said theyd like to be more

    organized

    70% said theyd use anapplication that organizes them

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    Women

    Age 28-45

    Has kids Socialize with other moms

    Online with Facebook

    86% said theyd like to be more

    organized

    70% said theyd use anapplication that organizes them

    NOT A GOOD PERSONA

    Bullet points are almostnever vivid or detailed

    Stock photo- not real

    This is a hugepopulation- not exact

    These responses are fakeactionable- survey responses

    like this are unreliable

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    THE ART OF CUSTOMER DISCOVERY

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    A BETTER PERSONA

    Mary is a mom by choice. She had a successful career in accounting,

    but welcomed the opportunity to be a stay at home mom. She loves it.

    But its not like having kids purged her creative, social instincts. She

    wants to connect, she wants to learn, she wants to interact. Being a

    mom is a job and she wants to do it well. That means corresponding

    with other moms on child education and keeping track of what works.

    She posts to Facebook at least twice a week and responds to other

    moms items more often than that.

    She has a few blogs and publications she reads regularly

    Mary the Mom

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    A BETTER PERSONAthe use of a first name helps

    w/ vividness (a little)

    these full sentences look like agood start towards something

    vivid and detailed

    this is a real photo of arelevant person taken with an

    iPhone in the real world

    Mary is a mom by choice. She had a successful career in accounting,

    but welcomed the opportunity to be a stay at home mom. She loves it.

    But its not like having kids purged her creative, social instincts. She

    wants to connect, she wants to learn, she wants to interact. Being a

    mom is a job and she wants to do it well. That means corresponding

    with other moms on child education and keeping track of what works.

    She posts to Facebook at least twice a week and responds to other

    moms items more often than that.

    She has a few blogs and publications she reads regularly

    Mary the Mom

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    DISCOVERY & LEARNING: THINK-SEE-FEEL-DO

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    VA

    RI

    ED

    The personashould makeanyone who readsit feel like theyveactually met thisperson.

    ALEX COWANAlexanderCowan.com

    @cowanSF

    ivid

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    VA

    RI

    ED ALEX COWANAlexanderCowan.com@cowanSF

    If the personadoesnt inform

    how you sell stuffand build stuff,why bother?

    ctionableivid

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    VA

    RI

    ED ALEX COWANAlexanderCowan.com@cowanSF

    eal Good personasarent created incubicles. Gowhere the persona

    is and observe.

    ividctionable

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    VA

    RI

    ED ALEX COWANAlexanderCowan.com@cowanSF

    Make sure youcan identify andtarget these

    personas, or youwont be able tofind a use forthem.

    dentifiable

    ividctionable

    eal

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    VA

    RI

    ED

    ivid

    ALEX COWANAlexanderCowan.com

    @cowanSF

    dentifiable

    Everyone is notyour customer.

    Make sure thepersonas aredistinct so you canapply relevantfocus.

    xact

    ctionable

    eal

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    RI

    ED

    dentifiable

    xactetailed

    People arecomplicated andso good personasare usually prettysubstantial.

    ctionable

    eal

    ivid

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    EXERCISE- PERSONA CREATION

    Mary the Working Mom

    Susan the Stay-at-Home Mom

    Douglas the Dad

    Nathan the Nanny

    Ivan the Infant

    List at least 3 personas for a project youre working

    (4 min)

    use 1 index card/persona

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    A LITTLE GAME FOR BETTER PERSONA DISCOVERY

    Day in the Lifewe look at a few photos for a given persona

    you make some guesses about them

    there are no right answers BUT

    there is a right process: observe and infer

    OBJECTIVE: get a feel for whats real; start to create something vivid

    (not a full picture, just snippets)

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    (RUN DIL)

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    EXERCISE- PERSONA CREATION

    Mary the Working Mom (B, U)

    Susan the Stay-at-Home Mom (B, U)

    Douglas the Dad (U)

    Nathan the Nanny (U)

    Ivan the Infant (U)

    Which are buyers? Users? Both?

    Note with a B and/or a U on the Index Card

    (1 min)

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    EXERCISE- PERSONA CREATION

    (2 min)

    Can you think of 5 real examples for each?

    Use the back of your index cards

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    EXERCISE- PERSONA CREATIONWhich have the most compelling need, desire?

    If you could only pitch 1 persona type, which? Sort top to bottom

    (1 min)

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    PERSONAS: THINK-SEE-FEEL-DO

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    EXERCISE- PERSONA CREATION (6 MIN)For your top person, complete Think-See-Feel-Do

    Thinks:Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professionaldevelopment is something theyve identified that they want to do better, but the functional managers arent engagedenough to get the whole thing started.

    Sees: Helen is at the tail end of every bad hire and sees the damage it does to the employee and company, alike.Helen sees that online learning has rocketed forward in the last few years. If someone wants to learn a specific skill,theres a number of high quality options online, many of them free. They just need a way to help employees organizeselect into these courses.

    Feels: Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The managerhates it. Its incredibly destructive and de-motivating for everyone involved. Helen would love to be more involved,more included in functional skills evaluation and improvement. Shes love to have a success story to talk about. MostHR departments dont do a whole lot in this area.

    Does: Helens relatively responsive to new ideas, particularly if someone knowledgeable is willing to come in and talkabout it. If she likes it, shell bring it to the functional managers, who are usually the ultimate decision makers sincewithout their support she cant get the system online and working. Post-sale, Helen will help keep the programorganized, moving, and otherwise on the functional managers radar. All this is predicated on Helen being equippedwith the right messages, facts, and best practices to make the purchase and use of Enable Quiz effective .

    EXAMPLE: HELEN THE HR MANAGER

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    PERSONA MEETS HALLWAY CONVERSATION

    So, I think feature [xyz] shouldreally be at the top of our list

    Yeah?

    Tell me about the user.Who are they? What

    are they doing rightnow?

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    2Anchor to Problems, Not Solutions

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    NEEDFINDING

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    XPROBLEM SCENARIO

    NEEDFINDING

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    @cowanSF

    XWhat job(s) are you doing for

    the customer?

    What existing need or

    behavior are you fulfilling?

    PROBLEM SCENARIO

    NEEDFINDING

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    @cowanSF

    ?

    X

    ALTERNATIVE(S)

    PROBLEM SCENARIO

    NEEDFINDING

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    ?

    X

    If they currently use

    spreadsheets, watch them

    use it and get a copy of it.If they currently put notes on the

    family fridge, ask about it,

    photograph it.

    ALTERNATIVE(S)

    PROBLEM SCENARIO

    NEEDFINDING

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    EXERCISE- VALUE PROPOSITIONS

    Brainstorm Problem Scenario-

    Alternative-Value Proposition

    Trios.

    ALTERNATIVE(S)?

    PROBLEM SCENARIOXProblem: Mary would like to be morestructured and consistent in her use ofallowances to teach the link between workand financial rewards.

    Alternative: Track the completion of chores,homework, etc. manually using paper, boards,notes on her phone.

    (7 min.)

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    YOUR VALUE PROPOSITIONS !

    ALTERNATIVE(S) ?

    PROBLEM SCENARIO X

    NEEDFINDING

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    X

    Are they better enough than the

    alternative(s)?

    !

    ?

    YOUR VALUE PROPOSITIONS

    ALTERNATIVE(S)

    PROBLEM SCENARIO

    NEEDFINDING

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    EXERCISE- VALUE PROPOSITIONS

    Add Value Propositions to

    your top Problem Scenario +

    Alternative Pairs

    YOUR VALUE

    PROPOSITIONS!

    ALTERNATIVE(S)?

    PROBLEM SCENARIOXProblem: Mary would like to be morestructured and consistent in her use ofallowances to teach the link between workand financial rewards.

    Alternative: Track the completion of chores,homework, etc. manually using paper, boards,notes on her phone.

    Value Proposition: Use our app to easily andconsistently implement best practices tailoredto your situation.

    (3 min.)

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    EXERCISE- VALUE PROPOSITIONS

    Prioritize your value propositions-

    if you could only pitch one, which?

    After that? Etc.

    (2 min.)

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    and they have a certain

    PROBLEMS(S)

    where theyre currently using

    certain ALTERNATIVE(S)

    and I have a VALUE

    PROPOSITIONthats better enough

    than the alternatives to cause the

    persona to act (purchase, use, etc.).

    A certain PERSONAexists

    NEEDFINDING: THE PRODUCT HYPOTHESIS

    !

    ?

    X

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    EXERCISE: YOUR PRODUCT HYPOTHESIS

    and they have a certain

    PROBLEMS S

    where theyre currently using

    certain ALTERNATIVE(S)

    and I have a VALUE

    PROPOSITIONthats betterenough than the alternatives to

    cause the persona to act

    (purchase, use, etc.).

    A certain PERSONAexistsHR and functional managers are in charge oftechnical hires

    and they struggle to effectively screen fortechnical skill sets, making the hiring processslower and more labor intensive and

    producing worse outcomes than they shouldreasonably expect.

    Currently they implement a patchwork ofcalling references and asking a few probingquestions.

    By offering an easy, affordable, lightweighttechnical quizzing solution, Enable Quiz canacquire and retain these customer personas,delivering material value. (4 min.)

    Enable Quiz example:

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    THE BUSINESS MODEL CANVAS

    !"#$&'()#$*#+,-$,./-.,(0", 1(,20#3, 1'44'-$500(#6/0#'-78"2(, 5*#), 9:;

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    SEGMENT TO VALUE PROPOSITION MAPPING

    !"#$&'()#$*#+,-$,./-.,(0", 1(,20#3, 1'44'-$500(#6/0#'-78"2(, 5*#), 9:;

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    THE INDEPENDENT VARIABLE

    Value

    Propositions

    Customer

    Segments

    !"#$ &'() #$*#+,-$,. /-.,( 0", 1(,20#3, 1'44'-$ 500(#6/0 #'-78"2(,5*#), 9:;

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    CUSTOMER SEGMENTS VS. PERSONAS

    !

    CustomerSegments

    Personas

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    EXERCISE- MAPPING PERSONAS, VALUE PROPS

    1. List your prioritized personas

    (Customer Segments block)

    and Value Propositions

    2. Map your personas to your

    Value Propositions

    This work is licensed undertheCreativeCommons Attribution-ShareAlike3.0 Unported License. To view acopy ofthis license, visithttp://

    creativecommons.org/licenses/by-sa/3.0/orsend aletterto CreativeCommons, 171 Second Street, Suite300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas.

    Activity_1

    Activity_2

    Activity_3

    Proposition_1

    Proposition_2

    Proposition_3

    Persona_1

    Persona_2

    Persona_3

    (3 min)

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    PEER PRESENTATIONS PREP!

    (4 min.)

    For [target customer] who [statement of the need or opportunity], the

    [product name] is a [product category] that [statement of key benefit/

    key reason to buy]. Unlike [primary alternative], our product [statement

    of primary differentiation].

    For [hiring managers] who [need to evaluate technical talent], [Enable

    Quiz] is a [talent assessment system] that [allows for quick and easy

    assessment of topical understanding in key engineering topics]. Unlike

    [formal certifications or ad hoc questions], our product [allows forlightweight but consistent assessments of technical talent].

    EXAMPLE

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    As

    Presenter

    As

    Audience1) What is this? (Use positioningstatement)2) Who is the persona? What kind of shoesdo they wear?3) What problem scenario(s) are youlooking at? What alternatives does thepersona use now?4) Whats your value proposition?5) Whats your product hypothesis?6) What do you need to learn more about?

    - Focus on the process; avoid editorial- Ask a lot of questions- Think about it like an investor

    EXERCISE: PEER PRESENTATION

    (5 min./ each)

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    AVOID THE TWIN ANTI-POLES OF DESIGN FAILURE

    Doing preciselywhat the user asks

    Assuming you know whatsbest and ignoring the user

    !"#$

    %

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    NEEDFINDING MEETS HALLWAY CONVERSATION

    Here are a list of SEOkeywords related to theexciting new solution we built

    What problems doesthis solve for thecustomer? What wordsdo they use to describeit?

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    3Become a Better Storyteller

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    STORYBOARDING: ORIGINS

    copyright Fred Moore & Disney Pictures

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    Personas

    STORYBOARDING EXAMPLE

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    Personas

    STORYBOARDING EXAMPLE

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS

    Copyright 2014 Cowan Publishing

    X

    Helen the HR Manager

    Its hard for me to screen ontechnical skill sets and I end up

    sending Frank unqualifiedrecruits.

    Frank the Functional Manager

    I have limited time and I dontwant to be a jerk. Its hard to

    screen for all the relevanttechnical skill sets.

    PERSONA

    PROBLEM

    SCENARIO

    - Call references

    - Take their word for it

    - A few probing questions

    - Take their word for it?ALTERNATIVE(S)

    !VALUEPROPOSITIONSNew ability for meaningfulscreening of technicalcandidates, increasing % ofsuccessful hires and loweringFranks workload on recruiting.

    Less time doing interviews, andbetter hires sooner.

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    STORYBOARDING A PROBLEM SCENARIO

    AFTER

    BEFORE

    BEFORE

    (using the

    Alternative)

    AFTER

    (with the Value

    Proposition)

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    SKETCHING YOUR NARRATIVE

    source: adapted from Nir Eyals Hook Framework

    How does the problem

    scenario initiate?How is the alternative

    executed?

    How is the persona

    gratified?

    REWARDACTIONTRIGGER

    source: adapted from Nir Eyals Hook Framework

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    STORYBOARDING A PROBLEM SCENARIO

    }}

    }1 PanelStoryboard

    Area

    Notes

    AreaOptionalnotes here tosupplement your storyboard

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    EXERCISE: BEFORE AND AFTER BOARDS

    Using the squares, create a before and then after

    storyboard- 3 panels each

    BEFORE

    (using theAlternative)

    AFTER

    (with the ValueProposition) (10 min.)

    STORY ARC

    Trigger

    Action

    Reward

    source: adapted from Nir Eyals Hook Framework

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    How do they firstfind out that you,your propositionexist?

    How do you breakthrough the noisefloor?

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    What is it thatengages them with

    your proposition?How will youconnect?

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    Are you connectingwith an importantproblem scenario?Is your VP better

    enough than thealternative?

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    What is absoluteminimum set ofactions required bythe customer to

    have you deliver ontheir problem?

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    How do they

    become a regular,habitual user? Howwill you know ifthats happening?

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    AI

    DA

    OR

    ttentionnterest

    esirection

    nboardingetention

    How do youdeepen theirinvolvement?Investment? How

    do you get themtalking about it?

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    STORYBOARDING AIDA(OR)

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    STORYBOARDING AIDA(OR)

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    STORYBOARDING AIDA(OR)

    Thinks: I care about evaluating tech hires but Im

    busy- Ill take a quick look if I can.

    Sees: A post on social media from a peer she

    regards well.

    Feels: Theres a twinkling in the distance but Im stillfirmly rooted in my to-do list in the present.

    Does: Calls or emails her peer to hear about her

    experience.

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    STORYBOARDING AIDA(OR)

    Thinks: This sounds interesting-

    can I make it work here (at my

    company).

    Sees: A clear proposition and

    narrative on next steps towards asuccessful outcome (on the Enable

    Quiz site).

    Feels: Initially suspect, her

    excitement about racking up a

    meaningful win in an important area

    grows.Does: Puts it on her to-do list as a

    set of items. Mentions it to

    colleagues.

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    STORYBOARDING AIDA(OR)

    Thinks: I understand the proposition and

    I keep seeing wins for it here at work.

    Sees: Situations where she really wishes

    she had a quiz to use instead of the

    hodge podge she uses.

    Feels: This could be one of her major

    wins for the year- exciting!

    Does: Move Enable Quiz to the top of her

    list.

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    STORYBOARDING AIDA(OR)

    Thinks: I need Franks buy-in: theyre his candidates

    and hell need to help me create the quizzes.

    Sees: Frank struggling to find time to interview

    candidates. Having trouble with skill sets on his team.Feels: Nervous and excited to bring it to Frank.

    Does: Gets in front of Frank with a simple proposal to

    just try the system out for their next open position.

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    STORYBOARDING AIDA(OR)

    Thinks: Here we go- I hope this

    works.Sees: A job description and a set of

    quiz options she needs to pair.

    Feels: A little uneasy- like playing

    scrabble in a language shes just

    learning.Does: Creates a draft and then

    goes to Frank with questions that

    she makes as specific as possible.

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    STORYBOARDING AIDA(OR)

    Thinks: This was a win- its part of ourroutine and it works great.

    Sees: That her screening process and

    hiring outcomes are measurably

    improved.

    Feels: I love this thing- everyone shoulduse it.

    Does: Shares about her win on social

    media and is willing to try new things.

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    Using the

    squares, create

    a 6-panel

    AIDA(OR)

    storyboard

    (10 min)

    EXERCISE: AIDA STORYBOARD (10 MIN)

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    DESIGN THINKING- USING PERSONAS

    Personas Problem ScenariosAlternatives

    Your Value Propositions

    SELLINGSTUFF

    Whos buying?

    Where?

    Why?

    Who are weselling to?

    Where do wereach them?

    With whatproposition?

    MAKINGSTUFF

    What does theuser actually do?What does theuser (most) want?

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    WHY IS DESIGN THINKING HARD?

    Design Thinking

    Now

    Survival

    Then

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    NEEDFINDING MEETS HALLWAY CONVERSATION

    We have an amazing newthing now where users can [x]their [y]

    Cool. Who does this?Whats the trigger?

    Whats the first thingthat happens?

    Then what?How do we know ifthey have a goodoutcome?

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    4Test Early, Test Often

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    EVIDENCE-BASED INNOVATION VIA LEAN STARTUP

    Do I have real evidence from my buyerthat this is compelling?

    01 ID EA!

    What are the key assumptions requiredto make this business work?

    02 HYPOTHESIS

    How do I definitely prove or disprove theassumptions with a minimum of timeand effort?

    03 EXPERIMENTAL DESIG N

    04 EXPE RIM ENTATION

    Am I reacting or am I focused onvalidating my pivotal assumptions?

    Pivot or persevere?

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    EVIDENCE-BASED INNOVATION VIA LEAN STARTUP

    Do I have real evidence from my buyerthat this is compelling?

    01 ID EA!

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    EVIDENCE-BASED INNOVATION VIA LEAN STARTUP

    What are the key assumptions requiredto make this business work?

    02 HYPOTHESIS

    How do I definitely prove or disprove theassumptions with a minimum of timeand effort?

    03 EXPERIMENTAL DESIG N

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    and they have a certain

    PROBLEMS(S)

    where theyre currently using

    certain ALTERNATIVE(S)

    and I have a VALUE

    PROPOSITIONthats better enoughthan the alternatives to cause the

    persona to act (purchase, use, etc.).

    A certain PERSONAexists

    NEEDFINDING: THE PRODUCT HYPOTHESIS

    !

    ?

    X

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    ASSUMPTIONS: ORGANIZED AND PRIORITIZED

    Priority Key Assumption Needs Proving? Experimentation

    1[A key assumption about thebusiness]

    [Whether it needsproving

    [Experiment toprove or disprove]

    1

    Hiring managers wouldprefer a lightweight quiz appover calling references andad hoc probing.

    Yes

    * Customer interviews on problemscenario* Value testing through minimumviable product

    2Managers want to be able toadd their questions as well

    Yes* Show prototypes with choices* Test in beta

    2 Parents have smart phones No n/a

    Focus on strategic,pivotal assumptions

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    FOCUS AND THE LEAN STARTUP

    Crossing ts

    Dotting isDoesnt matter unless ithelps prove (or disprove)

    your pivotal assumptions

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    FOCUS AND THE LEAN STARTUP

    Subjectall youractivities +metrics to

    that litmustest.

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    PERSONA HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Does this person exist?

    Can you identify them?

    Do you understand them really well?

    What do they think-see-feel-do in your area?

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    PERSONA HYPOTHESIS- CHECKLIST

    Hypothesis Experiment

    ! This persona exists (in non-trivialnumbers) and you can identify them.

    - Can you think of 5-10 examples?- Can you set up discovery interviews with them?- Can you connect with them in the market at large?

    ! You understand this persona well. - What kind of shoes do they wear?- Are you hearing, seeing the same things across your discovery

    interviews?! Do you understand what they Think in

    your area of interest?

    - What do you they mention as important? Difficult? Rewarding?- Do they see the work (or habit) as you do?- What would they like to do better? To be better?

    ! Do you understand what they See inyour area of interest?

    - Where do they get their information? Peers? Publications?- How do they decide whats OK? Whats aspirational?

    ! How do they Feel about your area ofinterest?

    - What are their triggers for this area? Motivations?- What rewards do they seek? How do they view past actions?

    ! Do you understand what they Do in yourarea of interest?

    - What do you actually observe them doing?- How can you directly or indirectly validate thats what they do?

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    PERSONA HYPOTHESIS- OUTPUTS & PIVOTS

    Common Pivots1) Re-segmentation (more granular)

    2) Revision of area of interest/problem space

    3) Strategic pivot

    Template: bit.ly/personast

    Outputs

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    EARLY MARKET VS. LATER MARKET

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    EARLY MARKET VS. LATER MARKET

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    EXERCISE: WHOS YOUR EARLY MARKET?

    1) How do they differ within your existing persona definitions?

    Example: At Enable Quiz, theyre startups doing lots of hiring

    2) How will you locate them?

    Example: At Enable Quiz, theyll read tech rags to see who just got funded.

    3) How will they help you transition to your next segment?

    Example: At Enable Quiz, via case studies, references, and incented posts on LinkedIn.

    Answer each as best you can: ~ 1 min/each

    (4 min.)

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    PROBLEMHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Have you identified a discrete problem/need?

    How important is it to the target persona(s)?

    What alternatives do they use today? How?

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    PROBLEM HYPOTHESIS- CHECKLIST

    Hypothesis Experiment

    ! Youve identified at least one discreteproblem (job, desire, etc.)

    - Can you describe it in a sentence? Do others get it?- Can you identify current alternatives?

    ! The problem is important - Do subjects mention it unprompted in discovery interviews?- Do they respond to solicitation (see also value and customer creation

    hypotheses)?

    ! You understand current alternatives - Have you seen them in action?- Do you have artifacts (spreadsheets, photos, posts, notes, whiteboard

    scribbles screen shots ?

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    PROBLEM HYPOTHESIS- OUTPUTS & PIVOTS

    Outputs Common Pivots1) Pivot to a more material problem area

    2) Strategic pivot

    Template: bit.ly/personast

    ALTERNATIVE(S) ?

    PROBLEMSCENARIO(S) X

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    EVIDENCE-BASED INNOVATION VIA LEAN STARTUP

    04 EXPE RIM ENTATION

    Am I reacting or am I focused onvalidating my pivotal assumptions?

    Pivot or persevere?

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    PROBLEMHYPOTHESIS

    VALUEHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Do you have a value proposition thats better

    enough than the current alternatives?

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    VALUE HYPOTHESIS- CHECKLIST

    Hypothesis Experiment

    ! Your product is better enough than thealternative to make sales (traffic, etc.)

    - You successful execute a (paid?) concierge MVPor- You successfully pre-sell the productor- You successfully drive drive sign-ups online

    !

    Customers will readily perceive thissuperiority if you [x]

    -

    (see above)

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    PROBLEM HYPOTHESIS- OUTPUTS & PIVOTS

    Outputs Common Pivots1) Pivot from pre-conceived solution/

    proposition2) Pivot to new problem area

    3) Strategic pivot

    Template: bit.ly/personast

    VALUE

    PROPOSITION(S)

    X

    ?!

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    PROBLEMHYPOTHESIS

    VALUEHYPOTHESIS

    CUSTOMER CREATIONHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    CUSTOMER CREATION HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Do you have a profitable, repeatable recipe

    for acquiring and retaining customers?

    Do you have a system for monitoring it and

    trying new things?

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    03 PROPOSING TESTABLE SOLUTIONS

    0 Day 30 Day ID

    DOES IT WORK?

    Deep testing on real

    data with a very

    small set of users.

    90 Day

    DOES IT STICK?

    Post deploy, are

    users engaged at

    expected levels? If

    not, why not?

    DID IT MATTER?

    Is it delivering on the

    target propositions?

    If not, why not?

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    LEAN STARTUP MEETS HALLWAY CONVERSATION

    Im super excited about [thisidea]. Im working on thebusiness case to sellmanagement so we can startbuilding

    Sound neat.

    Whats the centralproposition? Maybetheres a way we can

    bootstrap some proofpoints.

    That would supercharge your businesscase.

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    5Learn First, Scale Second

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    WHERE ARE YOU NOW?

    MVP

    Nascent

    Product-MarketFit(?) Scale

    PIVOTALASSUMPTIONS

    PRODUCT

    ORG.

    PARTNERS,CHANNELS

    Founders

    N/A

    Probably toosoon

    Test, revise,test...

    MVP

    Customer dev.team

    Probably toosoon

    Validated- nowtactical

    Focus: efficiency,extension

    Full functionalorganization

    Yeah, maybe?

    Validated- nowtactical

    What would astartup do??

    Scalableorganization

    Yeah, definitely!

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    LEAN STARTUP MEETS HALLWAY CONVERSATION

    Management is really excitedabout your project. Imallocating your 50 FTEs fornext year.

    Wow, thanks.

    But I dont need 50FTEs, yet. Id just befinding them stuff to do.

    Heres what I need andhow Ill stayaccountable for thoseresources.

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    6Go See

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    EXERCISE: PERSONA DISCOVERY QUESTIONS (5 MIN)

    Question Form Examples Questions (Enable Quiz)

    Tell me about [yourself in the role of the persona]? - Tell me about being an HR manager?- How did you choose that line of work? Why?- What do you most, least like about the job?- What are the hardest, easiest parts of the job?- Ive heard [x]- does that apply to you?

    Tell me about [your area of interest]? - Do you do screen new candidates? If not, who?- Can you tell me about the last time? What was the trigger?- Who else was involved? What was it like?

    Tell me your thoughts about [area]? - How should it ideally be done?- How is it actually done? Why?

    What do you see in [area]? - Where do you learn whats new? What others do?- Who do you think is doing it right?- How did you make your last decision?

    How do you feel about [area]?-

    What motivates you? What parts of it are most rewarding? Why?Tell me about the last time?- What would it be like in your perfect world?

    What do you do in [area]? - Would you show me your interview guide? Example notes? - Whatthe vetting process was like on the last few candidates?

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    PERSONA HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Everyone is my customer!

    Possibly true at some point, but

    you need to nail early adopters

    to get traction.

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    PERSONA HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    There are a few customers to

    focus on- Im not sure which

    one.

    Pick the one with the most

    compelling need and choose.

    Or guess. But dont diffuse your

    focus.

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    PERSONA HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    I cant find anyone to interview

    Then I would step back. This

    almost certainly means youll

    have trouble with the next steps

    as well.

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    PERSONA HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    I think I get this persona, but Im not

    sure about the whole think-see-feel-do

    thing.

    Think-see-feel-do is not the only

    way to go but its pretty good.

    Solid personas are the stitch in

    time that saves 9.

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    KEY TO GOOD PERSONA DISCOVERY

    PERSONAHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    1) Create a level of person-ability and comfort

    2) Acclimate them to the idea that youre not just

    wondering about the general picture

    3) Assure them by demonstration that youre not

    selling anything or advocating a point of view

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    4 TYPES OF LEAN HYPOTHESES

    PERSONAHYPOTHESIS

    PROBLEMHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    EXERCISE: PROBLEM DISCOVERY QUESTIONS

    (5 min.)

    Question Form Examples Questions (Enable Quiz)

    What are the top [5] hardest things about [area ofinterest]?

    - What are the top 5 most difficult things about making good techhires? Why?

    How do you currently [operate in area of interest- ifyou dont have that yet]? ORHeres what I got on[x]- is that right?

    - How do you currently screen for technical skill sets?- Who does what?- How does that work?

    Whats [difficult, annoying] about [area of interest]? - Whats difficult about screening technical candidates?- How do you validate they have the right skill set?- How are the actual outcomes? Examples?

    What are the top 5 things you want to do betterthis year in [general area of interest]?

    - What are the top 5 things you want to do better in technicalrecruiting and hiring?

    Why is/isnt [your specific area of interest on thatlist]?

    - Why is/isnt screening for technical candidates on that list?

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    During customer discovery interviews, the

    subjects consistently mentioned our problem

    scenario

    Excellent! Thats a goodpreliminary validation youre on

    the right track.

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We did a questionnaire and >80% of

    subjects said they wish [our problem

    area] was better.

    Dont trust questionnaires,especially with leading

    questions. Focus on face-to-

    face.

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    I am in this business/I am one of these personas and I

    know I have this problem- and Im sure it exists for

    most others like me.

    Good start but approach

    discovery like you know nothing.

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Our product doesnt really address a problem,

    exactly, so this isnt relevant for us.

    There are no new problems orhabits. Make sure you know

    what youre after.

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Our product is so fundamentally novel that

    there are no current alternatives.

    (see previous)

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    PROBLEM HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Weve mapped out the alternative and observed

    or key personas in action with them.

    Excellent! Youre ready tosynthesize, tune and test your

    value proposition!

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    KEY TO GOOD PROBLEM DISCOVERY

    PROBLEMHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    1) Avoid prompting, progressing to it only as a

    last ditch effort

    2) Get them in storytelling mode- focus onspecifics and details

    3) Focus on just getting them talking- mind the

    time but be careful about interrupting for course

    corrections

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    VALUE HYPOTHESES

    PERSONAHYPOTHESIS

    PROBLEMHYPOTHESIS

    VALUEHYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

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    EXERCISE: VALUE DISCOVERY QUESTIONS

    (2 min.)

    Question Form Examples Questions (Enable Quiz)

    How do you decide on and buy [stuff in generalarea of interest]?

    - How do you buy [access to recruiting services, resumesearches, HR software, training, prof. ed. books]?

    -

    Whos involved? Whats the scope of individual discretion?How much did you spend [last period]? - How much do you spend on [items of interest]?

    [most of this needs to be obtained through direct experimentation (next

    section); the following are useful but probably not pivotal]

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    TESTING YOUR HYPOTHESIS VIA MVP

    M

    VP

    inimum What is the fastest,

    cheapest way tovalidate orinvalidate thisoption so we give

    ourselves moreoptions on futuresuccess?

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    TESTING YOUR HYPOTHESIS VIA MVP

    M

    VP

    iable Will it give us adefinitive result?What are theactionable metrics?

    inimum

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    TESTING YOUR HYPOTHESIS VIA MVP

    M

    VProduct

    Does it reallyrequire actual

    product? Can weuse alternativebrands, channels?

    iable

    inimum

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    TESTING YOUR HYPOTHESIS VIA MVP

    is not necessarily actual software/product(see concierge MVP)

    is a first and foremost learning vehicle vs. a project plan

    (OK to do those things but alwayssubordinate them to the learning mission)

    vs. a product development project

    M

    VProduct

    iable

    inimum

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    THE MVP LITMUS TEST

    output !=outcomeIs your MVP driving anextraordinary outcome?

    Or is it a vehicle to create outputas usual?

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    CASE STUDY: DROPBOX

    OPPORTUNITYUnderlying demand and supportinginfrastructure ready for a great file sharingapp.

    CHALLENGEBuilding a great cross-platform app.required VC funding. VCs saw a spacewith lots of existing competitors strugglingto get traction.

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    CASE STUDY: DROPBOX

    Persona

    ProblemScenario

    Alternatives

    Value Prop.

    Tom the Techie- early adopter who works on projects that require swapping a lot of files between ashifting network of collaborators.

    Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous orchange a lot.

    Many existing products, but none of them super compelling and widely adopted.Also, custom setups which work but are cumbersome to set up and maintain.

    A file sharing service that truly feels transparent to the user across all major platforms- OSX, iOS,Windows, etc.

    What Minimum Viable Product (MVP)?

    That you can bootstrap?

    That doesnt require software at all?

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    THE WIZARD OF OZ MVP

    Result: Excellent traction andconversion to sign-ups.

    Strong validation signal.

    Created a synthetic demotailored for early market(techies), promoted it, and

    measured email sign-ups.

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    EXAMPLE: ENABLE QUIZ

    OPPORTUNITYHiring quality technical talent is critical formany companies, but screening for skillsets is time consuming and awkward.

    CHALLENGEThe founding team wants to bootstrapwithout external funding so they need tofocus on a specific technical domain, onethat will get them strong early traction.

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    EXAMPLE: ENABLE QUIZ

    Persona(s)

    ProblemScenario

    Alternatives

    Value Prop.

    Helen the HR Manager- responsible for sourcing and screening job candidatesFrank the Functional Manager- hiring manager responsible for acquiring and managing talent

    Helen: hard to screen for technical skillsFrank: never has enough time for recruiting and doesnt want to be a jerk during interviews

    Helen: call references, take their word for it (on skills)Frank: ask a few probing questions

    A lightweight quizzing app that has Helen can use to do quick, effective screening.

    What Minimum Viable Product (MVP) for deciding on the right first topics?

    That you can bootstrap?

    That doesnt require software at all?

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    THE PRE-SALES MVP

    Target Outcome: Informedselection of starter topics (and

    baseline on initial conversions).

    Ran Google AdWordcampaigns across top rankingtechnical topics, measuring

    click through rate and landingpage sign-ups.

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    CASE STUDY: LEONID SYSTEMS

    OPPORTUNITYMajor disruption and new productopportunities among telecom providerswith introduction of voice-over-IP and cloudcommunications.

    IT systems need to be rethought.

    CHALLENGEAs a one-person startup, Leonid hadactionable ideas but not enough resources

    to execute an end-to-end solution.

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    CASE STUDY: LEONID SYSTEMS

    Persona

    ProblemScenario

    Alternatives

    Value Prop.

    Chris the CTO- has funding and mandate to transition the business towards hosted services; manybases to cover

    IT is the most expensive, most risky area when making changes to the business.

    1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risknot keeping pace).

    Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioningand 2) end user self-service portals.

    What Minimum Viable Product (MVP)?

    That you can bootstrap?

    That doesnt require software at all?

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    LEONID MVPs: FROM CONSULTING TO PRODUCT

    Started with consulting as aconcierge vehicle to createtactical solutions, evolving to

    full-fledged product.

    Result: Steady step-wisegrowth with consistently betterunderstanding of key customerproblem scenarios.

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    CASE STUDY: ZAPPOS

    OPPORTUNITYAn observed problem scenario around thedifficulty of finding the right shoe at localretail and a giant (but nascent) market inonline retail (1999).

    CHALLENGEConsumers still in the early stages ofadopting and habituating to online retail.Founder (Nick Swinmurn) wanted tobootstrap.

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    CASE STUDY: ZAPPOS

    Persona

    ProblemScenario

    Alternatives

    Value Prop.

    Sam the shoe-hound- knows what he wants but not where to get it.

    Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.

    Possibly mail order or wait until hes in a bigger market to go to the store.

    Make the shoe Sam wants accessible online and make sure he has a great experience so hell comeback and not have to think about where to find the shoe he wants anymore.

    What Minimum Viable Product (MVP)?

    That you can bootstrap?

    That doesnt require software at all?

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    CASE STUDY: ZAPPOS

    Result: It worked and the restis history.

    Photographed shoes and putthem online to observewhether anyone bought them.

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    CASE STUDY: SPRIG

    source: as told to Lean Startup Circle, SF (Jan 2014)

    Startup looking for early traction forinvestors: Whole Foods (deli) meets Uber.

    OPPORTUNITYLarge opportunity to resegment anddisrupt food prep. and delivery business.Desire to move fast and learn fast.

    CHALLENGESome existing competitors and slowfundraising process. Food prep. and

    delivery requires infrastructure.

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    CASE STUDY: SPRIG

    Persona*

    ProblemScenario

    Alternatives

    Value Prop.

    Paula the Professional- health conscious, short on time, moderate to high income, already usessimilar services like Uber.

    I want to have a nice, healthy dinner with no hassle and at a price I can afford (like $12).

    Going to the store or an expensive, take-out, or a slow delivery service (>20 minutes).

    A healthy meal like you would order a cab (on Uber): Dinner on Demand Prep Time is 3 Taps Delectable Prices (Sprig Home Page)

    What MVP?

    That you can bootstrap?

    That doesnt require software at all?

    * This is me interpolating/guessing on an item; not part of the Sprig teams explanation.

    source: as told to Lean Startup Circle, SF (Jan 2014)

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    SPRIG MVP & EXPERIMENTATION

    Result: Excellent uptake andvaluable observations on theproposition and customer

    journey.

    Hire a chef for the day, put theoffer on Eventbrite, emailfriends - concierge MVP.

    source: as told to Lean Startup Circle, SF (Jan 2014)

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    CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP

    OPPORTUNITYLots of exciting things happening in thephoto-social space.

    CHALLENGE

    The team had several ideas but fewresources.

    C S S S O O SOC S

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    CASE STUDY: STEALTH PHOTO-SOCIAL STARTUP

    Persona

    ProblemScenario

    Alternatives

    Value Prop.

    Existing poster of photos. Personas: Martha the Mom, Pat the Party Planner, Teresa the Teen SocialButterfly

    [I want to do something interesting with my photos so that my social graph rewards me with interest andacclaim]

    Manually enhance photos, use alternative enhancers/amplifiers like Instagram

    [This is something users can do with photos that will generate engaging content for their social graph]

    USER JOURNEY PHOTO SOCIAL

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    USER JOURNEY: PHOTO-SOCIAL

    ASSUMPTIONUsers social networkwill like and share theapps output

    What MVP?

    That you canbootstrap?

    That doesnt requiresoftware at all?

    PHOTO SOCIAL STARTUP MVP & EXPERIMENTATION

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    PHOTO-SOCIAL STARTUP: MVP & EXPERIMENTATION

    MVPCreate the target outputby hand (conciergestyle)

    Does anyone care?

    ASSUMPTIONUsers social networkwill like and share theapps output

    CASE STUDY RAPID EQUIPPING FORCE (REF)

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    CASE STUDY: RAPID EQUIPPING FORCE (REF)

    OPPORTUNITYPost traumatic stress disorder (PTSD)creating extremely serious mental andphysical health issues for servicepersonnel and veterans.

    CHALLENGEDespite substantial spending, currentapproaches to diagnosis and treatmentunder-delivering.

    CASE STUDY RAPID EQUIPPING FORCE

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    CASE STUDY: RAPID EQUIPPING FORCE

    Persona

    ProblemScenario

    Alternatives

    Value Prop.

    Salem the Solider- receives relatively good treatment for acute injuries but concussive injuries that arenot immediately debilitating often go undiagnosed and/or untreated or under-treated.

    The brain is a complex instrument- you cant just patch it up. Concussions that are not immediatelydebilitating can still lead to serious conditions.

    Its part of the culture to ignore or minimize injuries that dont immediately put you out of commission.

    The most common alternative is after-the-fact treatment within the Veterans Administration hospitalswhere very little history is available.

    Just about anything that would improve outcomes would improve many lives.

    CASE STUDY RAPID EQUIPPING FORCE

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    CASE STUDY: RAPID EQUIPPING FORCE

    REF head Peter Newell got a tipto look at what NASCAR wasdoing to measure, diagnose,and treat concussive injuries.

    source: NASCAR

    CASE STUDY RAPID EQUIPPING FORCE

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    CASE STUDY: RAPID EQUIPPING FORCE

    Working with R&D partners, REFdeveloped a prototype system forsoldiers to use on the front lines.

    Pressure Sensors (4): 100 psi max at ~50kHz sample rate 3 Axis Accelerometer (Body and Head): 1250 G max at ~50 kHz

    sample rate

    3 Axis Gyro (Head): 2000 dps max gyro at 1-2 KHz sample rate

    GPS: Time stamping of event data

    Wireless Communication to the

    Vehicle Sensor System

    VIA RFID - Uniquely identifies soldier

    position when in a vehicle

    Battery Power Self contained (2 each CR-123A)

    source: adapted from Innovation Leadership Board and REF

    MVP ARCHETYPES

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    MVP ARCHETYPES

    The Concierge MVP:manually provide the product experience youwant the customer to have

    The Pre-Sales MVP:hand sold and/or promoted online

    The Focal Product:

    minimal implementation focused only onfeatures required for core value proposition

    ABOUT MVPS AND PRODUCTS IN GENERAL

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    ABOUT MVPS AND PRODUCTS IN GENERAL

    You have to put the magic inthe software.

    (Not the other way around)

    Concierge and other non-software MVPs can be prettymagical.

    Find 100 people that are reallyinto it and you can probablygrow.

    EXERCISE: YOUR (CONCIERGE) MVP

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    EXERCISE: YOUR (CONCIERGE) MVP

    Component Notes

    What is the experience you want to provide? - What are the preconditions and general steps?

    What measurable outcome would validateyour value proposition?

    - How will you know if its delivering value?- This could be: a) measurably better outcomes b) activitylevels c) follow-on interest

    How will you find participants and what arethe core screening/qualification criteria?

    - How will you know if the subjects are relevant to yourcore hypothesis?

    (5 min.)

    LEAN AT LARGE

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    LEAN AT LARGE

    Priority Key Assumption Needs Proving? Experimentation

    1[A key assumptionabout the business]

    [Whether it needsproving

    [Experiment toprove or disprove]

    1

    Parents want toorganize the

    distribution of

    Yes* Post the proposition in ads online

    * Measure sign-ups on a landing page2

    Parents want to linkallowances to chores

    Yes* Show prototypes with choices* Test in beta

    2Parents have smartphones

    No n/a

    PLANNING WITH LEAN AT LARGE

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    PLANNING WITH LEAN AT LARGE

    Lets assume.

    Then test.

    Lets not

    argue

    PLANNING WITH LEAN AT LARGE

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    PLANNING WITH LEAN AT LARGE

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    How much better than the best alternative is your

    product?

    How obvious is that to the customer?

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Over 80% of the people we asked said theyd buy

    our product!

    Cant trust it- Yellow Walkmandata

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We did a concierge test and [got paid, got asked

    by the customer when they could buy our

    product].

    Excellent! Youre on the fasttrack of iterating to a successful

    outcome. Time to look at an

    actual MVP.

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We finished our concierge test. They liked it but as

    a result it was a long way to conclusive.

    Now that you know how, could

    you get paid for the next one?

    Try other test and then if

    negative, consider pivot.

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We made a bunch of pre-release sales, but

    theyre non-binding.

    Thats OK (as long as you made

    the agreement with a real

    decision maker). Youve got a

    reasonably good validation of

    value hypothesis.

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We couldnt make any pre-release sales.

    Why not? No interest? Thats

    bad. Need to sell real product

    (and thats really why), consider

    whats behind that.

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We found a few AdWord-landing page combinations

    that had better than expected click through and

    conversion rates to email sign-ups.

    Excellent! Thats a good

    validation of your value

    hypothesis and youre gotten a

    jump start on your Customer

    Creation Hypotheses.

    VALUE HYPOTHESIS

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    VALUE HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    We tried a few things with AdWords and landing

    pages, but the results werent great.

    What happens when you try thesame thing out in the real

    world? Search is a good way to

    connect with existing demand

    but not necessarily learn about

    its fundamentals.

    CUSTOMER CREATION HYPOTHESIS

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    CUSTOMER CREATION HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    How will you get the customers: attention, interest,

    desire, action, onboarding, retention?

    How will you know if its working?

    CUSTOMER CREATION HYPOTHESIS

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    CUSTOMER CREATION HYPOTHESIS

    ALEX COWANAlexanderCowan.com

    @cowanSF

    Most of these results are prettydefinitive.

    OLD SCHOOL VS. NEW SCHOOL

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    OLD SCHOOL VS. NEW SCHOOL

    Output vs. Outcome

    Scaling vs. Learning

    WHERE ARE YOU NOW?

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    WHERE ARE YOU NOW?

    MVP

    Nascent

    Product-MarketFit(?) Scale

    PIVOTALASSUMPTIONS

    PRODUCT

    ORG.

    PARTNERS,CHANNELS

    Founders

    N/A

    Probably toosoon

    Test, revise,test...

    MVP

    Customer dev.team

    Probably toosoon

    Validated- nowtactical

    Focus: efficiency,extension

    Full functionalorganization

    Yeah, maybe?

    Validated- nowtactical

    What would astartup do??

    Scalableorganization

    Yeah, definitely!

    PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES

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    PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES

    EXPENSE

    FLEXIBILITY

    wireframe

    working design

    prototype

    working product with a few users

    with lots of users

    idea

    DRAFT &EXPERIMENTA LOT

    PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES

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    PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES

    EXPENSE

    FLEXIBILITY

    wireframe

    working design

    prototype

    working product with a few users

    with lots of users

    idea

    play to yourstrengths as asstartup/new product

    in this zone

    AGILE & THE BEAUTY OF SMALL BATCHES

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    G & U O S C S

    DISCOVERY MEETS HALLWAY CONVERSATION

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    I was thinking the team and Iwould summarize some reportsfrom Gartner over the nextcouple of weeks.

    I dont want you to dothat. I want you to goout and talk to users.

    Heres what I want youto ask them

    You guys can comewith me on a fewinterviews then youllbe ready to do yourown.

    Youll finish this withmore skills!

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    7Kill Zombie Ideas

    SOME ZOMBIE IDEA TYPES

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    THE R&D ZOMBIEAlso known as the solutionlooking for a problem zombie.

    1 x TIME

    THE CUSTOMER

    SAID ZOMBIECustomers say they love it-but are they actually buying?

    THE TOP DOWN

    ZOMBIEWe told the street were doingit, so now

    THE CRUMBLING

    ZOMBIESo much time, so much moneytheres gotta be something here.

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    8Innovation for Your Business Type

    IDENTIFYING YOUR TYPE

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    Infrastructure-DrivenUTILITIES TELECOM COMMODITIES

    Scope-Driven

    RETAIL BANKING CORP. LAW

    Product-DrivenPACKAGED GOODS APP. SOFTWARE MEDIA

    IDENTIFYING YOUR TYPE

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    INFRASTRUCTUREKimberly-Clark: paper pulpDuPont: plastics and polymers

    SCOPEProcter & Gamble: cradle to grave productsBaby Store: everything for babies in one place

    PRODUCTEarthBaby, TinyTots, Honest Company:compostable diapers and service

    IDENTIFYING YOUR TYPE: QUIZ!

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    IDENTIFYING YOUR TYPE: IMPLICATIONS

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    EXAMPLE AREAINFRASTRUC

    TURE-DRIVEN

    SCOPE-

    DRIVEN

    PRODUCT-

    DRIVEN

    Sales Process:

    Highly standard or flexible?

    relatively

    standardized

    relatively flexible (ideally Channel

    sells)

    Pricing & Packaging:Highly standardized or

    customizable?

    relativelystandardized

    relativelycustomizable

    relativelystandardized

    Customer Support:

    How systematic vs.

    customized?

    relatively

    systematic

    relatively

    customized

    relatively

    systematic (non-

    channel)

    VENTURE DESIGN

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    X

    PROBLEM

    SCENARIOS &ALTERNATIVES

    What?

    PRODUCT &

    PROMOTION

    /

    CUSTOMER

    DISCOVERY &EXPERIMENTS

    Tell me?

    PERSONAS

    Who?

    USER

    STORIES &PROTOTYPES

    How?

    Scale?

    Pivot?

    VALUE

    PROPOSITIONS& ASSUMPTIONS

    What if?

    !

    VENTURE DESIGN (IN REVERSE)

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    !PRODUCT &

    PROMOTION

    USER

    STORIES &PROTOTYPES

    Did the implementationdeliver on the story?

    /

    CUSTOMER

    DISCOVERY &EXPERIMENTS

    How did thecustomer/userreact?

    VALUE

    PROPOSITIONS& ASSUMPTIONS

    !

    Was theimplementedstory relevant tothe proposition?

    X

    PROBLEM

    SCENARIOS &ALTERNATIVES

    Is problemrelevant? Is thepropositionbetter vs.alternatives?

    THINK SEE

    FEEL DO

    PERSONAS

    Do weunderstand thisperson? Whatmakes themtick?

    VENTURE DESIGN

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    VENTURE DESIGN

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    VENTURE DESIGN

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    VENTURE DESIGN

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    VENTURE DESIGN

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    THE FULL STACK PRODUCT PERSON

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    ALEX COWANAlexanderCowan.com

    @cowanSF

    Specialties

    DESIGN

    &

    UX

    UNIXSYSADMIN

    RUBY

    PYTON

    JAVA

    PHP

    ...

    ENTERPRISESALES

    ...

    SEO

    ANALYTICS

    ...

    ...

    ...

    Foundation

    Skills

    LEANDESIGN

    THINKINGCUSTOMER

    DEV.AGILE

    Technical

    Literacy

    ARCHITECTUREFUNDAMENTALS

    App. & PlatformIntegration

    ROLES &SYSTEMS

    In a TechnicalTeam

    SOFTWAREFUNDAMENTALS

    Model-View-Controller

    WORK IT!

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    Homework1. Draft a working set of personas

    Pick the most important buyers and/or users. More is not necessarily better- you can always addmore (re-segment) later. Finish think-see-feel-do. Find a photo.

    2. Draft a working set of problem scenario-alternative-value proposition trios.

    3. Finish a working product hypothesis and positioning statement.

    4. Finish a working interview guide to validate your persona and problem hypotheses.

    5. Complete at least 5 customer interviews.

    6. Draft a working set of assumptions

    7. Design your experiments and execute.

    GOOGLE DOC TEMPLATE: http://bit.ly/venturetemplate

    RESOURCES: bit.ly/VDsprint1, bit.ly/VDsprint2

    FINI

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    @cowanSF

    www.alexandercowan.com/venture-design

    Slides: bit.ly/innoent

    www.alexandercowan.com/startup-sprints


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