NextTalk: Venture Design- Determining Success

Copyright 2013 Cowan Publishing

NextSpace:VENTURE [email protected]@cowanSF




Design ThinkingLean StartupCustomer Dev.Agile

} BIG VOID { Actual Practice


~ POOR VISIBILITYX LACK OF TOOLSX OUTCOMES VS. OUTPUTX DISINTEGRATED

APPROACH

Business ModelCanvas


VENTURE/PROJECT DESIGN

Product & Promotion

User StoriesTest Cases

ExperimentLearn

Hypothesize

Lean Startup-

Style Assumptions

Foundation in Design Thinking





Design Thinking

And Now

SurvivalBack Then

DESIGN THINKING


Empathy

DESIGN THINKING

Creativity


DESIGN THINKING- APPLICATIONS


Entry1

Urinate as they go2

Edges preferred3

Speedy4

PB > cheese5

Empathy



Check & Repair

UV Validation

Relevant Placement

A Better Mouse Trap

Powered by Better Bait

Creativity

1

2

3

4

5



VENTURE/PROJECT DESIGN - PERSONAS

Personas Foundation in Design Thinking

Personas Problem ScenariosAlternativesYour Value Propositions


DESIGN THINKING - PERSONAS




•Women•Age 28-45•Have kids•Socialize with other mom’s•Online with Facebook•86% said they’d like to be more organized•70% said they’d use an application that organizes them





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 it’s 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 mom’s on relevant topics and keeping the family calendar in ship shape. She posts to Facebook at least twice a week and responds to other moms’ items more often than that.

For household stuff, Costco is the go-to place, but she’ll pick up fresh items at the farmer’s market when it’s up and splurge at Whole Foods when they’re having company.

Mary the MomDESIGN THINKING - PERSONAS


END USER PERSONASRita the Reseller

Orson the Office Mgr.

Ignatius the IT Guy

Rhonda the Receptionist

Susan the Small Bus. Owner

Keith the Key System User

Amy the Assistant

Simone the Standard User

Chuck the Call Center Agent

Esteban the Executive

Mikuko the Mobile User

Cindy the Call Center Manager


ENTERPRISE PERSONAS

Nietzsche the Network Eng.

Paola the Provisioner

Sidney the Sys. Admin.

Percival the Product Manager

Sven the Salesperson

Anthony the Applications Eng.

Itzhak the IT Developer

Frank the Field Eng.

Sam the Support Eng.

Saul the Site Developer

Fritz the Field Eng. Manager

Bruce the Business Owner


YOUR VALUE PROPOSITIONS!

ALTERNATIVE(S)?

PROBLEM SCENARIOXDESIGN THINKING - PERSONAS


MARY THE MOM

About: Mary the mom. . . [Describe like your friend or the beginning

of a short story. What kind of shoes does she wear?]. . .

Thinks: . . .

Sees: . . .

Feels: . . .

Does: . . .

1. List at least 3 personas2. More time? Describe as much as you can the items below. (5 min)


DESIGN THINKING - USING PERSONAS


MAKINGSTUFF

SELLINGSTUFF

Who’s buying?

Where?

Why?

What does the user actually do?

Who are we selling to?

Where do we reach them?

With what proposition?

What does the user (most) want?




MVP

DESIGN THINKING - CREATING PERSONAS

Tell me about yourself.What do you do? How often?How does it make you feel?

Interviews

AdWords, etc. + Landing Page Tests

Real-Time Analytics & Recording

Minimum Viable Product

What language, propositions resonate? What is the customer prepared to do?

What do users actually do?

Do customers like it? Buy it? Use it? Tell others about it?


Who is the buyer? User? What problem(s) are you solving?

PersonasProblem Scenarios

What’s the business?

Positioning Statement,Business Model Canvas

What has to happen?

Lean Startup-Style Assumptions

What economics and requirement for cash?

Lean Financial Model

What’s the operating environment like?

Five Forces Analysis

Pitch Deck (coming soon)

I need a compact overview

I’m going to a bank, traditional investor

Business Plan

I need to present financial (tax, financiers).

Income Statement, Statement of Cash Flows, Balance Sheet

Operational Stack Presentation StackVENTURE DESIGN STACK

Corp. WebsiteI need to communicate [various items in Ops Stack]

What are we building? Why?

User Stories Wireframes/Prototypes


BUSINESS MODEL CANVAS



ValuePropositions

CustomerSegments







ValuePropositions

CustomerSegments

CustomerRelationships Channels

KeyActivities

KeyResources

KeyPartnerships

CostStructure

RevenueStreams





ExperimentLearn

Hypothesize

Lean Startup-

Style Assumptions


PLANNING

!5,000,000%

0%

5,000,000%

10,000,000%

15,000,000%

20,000,000%

25,000,000%

30,000,000%

35,000,000%

40,000,000%

45,000,000%

2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020%

Revenue%

Expense%

EBITDA%

Five Year Plan

Then

LeanManagement

Now

6.a PIVOTexperiments disprove hypothesis

01 IDEA!

02 HYPOTHESIS

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 PIVOT OR PERSEVERE?

6.b PERSEVERE


PLANNINGPLANNING WITH LEAN STARTUP

Do I have real evidence from my buyer that this is compelling?

01 IDEA!

What are the key assumptions required to make this business work?

02 HYPOTHESIS

How do I definitely prove or disprove the assumptions with a minimum of time and effort?

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

Am I reacting or am I focused on validating my pivotal assumptions?

‘Pivot or persevere?’


Priority Key Assumption Needs Proving? Experimentation

1 [A key assumption about the business]

[Whether it needs proving [Experiment to

prove or disprove]

1Parents want to organize the distribution of allowances with an app

Yes* Post the proposition in ads online* Measure sign-up’s on a landing page

2 Parents want to link allowances to chores Yes * Show prototypes with choices

* Test in beta

2 Parents have smart phones No n/a

PLANNING WITH LEAN STARTUP

Focus on strategic, pivotal assumptions



Crossing t’sDotting i’s

Doesn’t matter unless it helps prove (or disprove) your pivotal assumptions



Subject all your activities + metrics to that litmus test.


CONCIERGE MVP AND LEAN STARTUP

Get paid for customer discovery.


Priority Key Assumption Needs Proving? Experimentation

1 [A key assumption about the business]

[Whether it needs proving [Experiment to

prove or disprove]

1Parents want to organize the distribution of allowances with an app

Yes* Post the proposition in ads online* Measure sign-up’s on a landing page

2 Parents want to link allowances to chores Yes * Show prototypes with choices

* Test in beta

2 Parents have smart phones No n/a

PLANNING WITH LEAN AT LARGE





Lean at LargeExperimentLearn

Hypothesize

Lean Startup-

Style Assumptions



Let’s not argue.

Let’s assume.Then test.




“Parents want to better organize the distribution of allowances”

Priority: [1 for existential; 2+ for others]

Needs Proving?: [yes or no]

Experimentation: [how will most quickly, cheaply prove or disprove]

* Bonus Question: How do these relate to your personas?

1. List at least 3 assumptions2. Note as much as you can on experiments (5 min)


DESIGN THINKING - STORYBOARDS

BEFORE


DESIGN THINKING - STORYBOARDS

AFTER


DESIGN THINKING- STORYBOARDSLorem ipsum dolor sit amet, consectetur adipiscing elit. Donec feugiat magna erat, eget mattis turpis bibendum in. Curabitur eget adipiscing dolor. Morbi cursus luctus rhoncus. Cras sagittis cursus libero sit amet ullamcorper. Phasellus vitae consequat enim. Vivamus in tortor sit amet nibh molestie tristique sed vel neque. Nunc sed dictum ligula. Quisque sollicitudin neque mauris, at vulputate odio fringilla ut. Pellentesque mattis at risus et volutpat. Nunc tristique adipiscing neque vel ornare. Donec a pretium metus, vitae adipiscing augue. Morbi ac suscipit tellus. Vestibulum gravida molestie est vel vehicula. Phasellus eleifend nisi cursus nunc facilisis egestas.

Aliquam venenatis et libero commodo convallis. Donec accumsan elit non turpis pulvinar, id sodales purus blandit. Phasellus tristique fermentum nunc in feugiat. Maecenas eget varius est, id malesuada est. Fusce vitae nunc purus. Nam vehicula eros vitae sapien scelerisque auctor. Maecenas et justo ac libero dictum dapibus. Etiam volutpat erat eget ante ullamcorper placerat. Maecenas convallis massa aliquam ullamcorper posuere. Phasellus nulla est, rhoncus blandit dapibus sit amet, facilisis at orci. Nulla facilisi. Maecenas ultrices justo quis nibh sagittis tempor. Pellentesque id semper turpis.


A I D AOR

ttentionnterestesirectionnboardingetention


ORGANIZATION

==

ApingThen

Customer Development

Now


CUSTOMER DEVELOPMENT

MVP

Nascent

Product-Market Fit(?) Scale

PIVOTALASSUMPTIONS

PRODUCT

ORG.

PARTNERS,CHANNELS

Founders

N/A

Probably too soon

Test, revise, test...

MVP

Customer dev. team

Probably too soon

Validated- now tactical

Focus: efficiency, extension

Full functional organization

Yeah, maybe?

Validated- now tactical

What would a startup do??

Scalable organization

Yeah, definitely!






ExperimentLearn

Hypothesize

Lean Startup-

Style Assumptions

Specialties

(VA

RIO

US

) D

ES

IGN

UN

IX S

YS

AD

MIN

RU

BY

PY

TON

JAVA

PH

P

. . .

. . .

. . .

SE

O

AN

ALY

TIC

S

. . .

(VA

RIO

US

) M

GM

T.

. . .


Basic Technical

LiteracySOFTWARE

FUNDAMENTALSModel-View-Controller

ARCHITECTURE FUNDAMENTALS

App. & Platform Integration

ROLES & SYSTEMS

In a Technical Team

Stories

Personas

Development Discussion

Foundation Concepts

ITERATIVEMANAGEMENT

DESIGNTHINKING

CUSTOMERDEVELOPMENT AGILE

Collaboration AGILEAs Product Owner

PROFESSIONAL DEVELOPMENT


DEVELOPMENT

WaterfallThen

AgileNow




Product & Promotion

User StoriesTest Cases

ExperimentLearn

Hypothesize

Lean Startup-

Style Assumptions



IndividualsInteractions

> ProcessesTools

Working software

Comprehensive Documentation>

Customer collaboration

Contract negotiation>

Responding to change

Following a plan

>

AGILE FOUNDATIONS


Drafting Stories

PERSONAS

STORIES

Epic Stories

Stories

Test Cases

“As a [persona], I want to [do something] so that I can [derive a benefit]”

AGILE USER STORIES


STORY TEST CASE

“As a receptionist I want to receive an out of the box phone

Make sure the available templates are editable in a visual environment usable by a Product ManagerAs a receptionist, I want to receive an out of the box phone

set up that’s created against best practices so I don’t have to set it all up by myself.”

Make sure it’s possible to update the template at install time

to set it all up by myself.Make sure the template designation is available in all Loki provisioning interfaces

Make sure it’s possible for the user to reset to the default template

“As a receptionist, I want to change the buttons on my phone so they do what I want.”

Make sure the available functions are filtered by the services assigned to the user

Make sure available functions are filtered based on the capabilities of the phone key

“As a receptionist, I want a custom configuration on my phone so that I can manage calls in the way I’ve come to expect.”

EPIC STORY

AGILE USER STORIES


AGILE & LEAN

validate feature relevance with customers

Past

collaborate with development team

Present

observe and envision what’s next

Future


FULL CIRCLE

!

THINK SEE

FEEL DO

PERSONAS

Who?

X

PROBLEMSCENARIOS

What?

USER STORIES

How?

VALUE PROPOSITIONS & ASSUMPTIONS

What if?

!PRODUCT & PROMOTION

Pivot?

/WIREFRAMES/PROTOTYPES

How?

..Scale?


BUY THE BOOKA practical primer for anyone wanting to actually implement today’s best practices in product development (available online or at any major retailer)

VISIT THE SITEFree talks, tutorials, and resources for product development and new ventures.


[email protected]

@cowanSF

www.alexandercowan.com/resources

bit.ly/holanextspacewww.alexandercowan.com/speaking

www.alexandercowan.com/startup-sprints

Date post:	27-Jan-2015
Category:	Business
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