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Venture

Design
Solving the Right
Problem

COWAN+
Copyright 2014 Cowan Publishing

OUR MODE OF OPERATION TODAY


WHAT? WHY?
Ill show you ideas and
examples.

Show

YOU TRY
Youll draft itemsindividually and as a
group.

Do

DID IT MATTER?
Is it delivering on the
target propositions? If not,
why not?

Share
Copyright 2014 Cowan Publishing

DOUBLE DIAMOND MODEL OF DESIGN


Finding the Right
SOLUTION

alternatives

Finding the Right


PROBLEM

divergence

convergence

divergence

time

convergence

source: adapted from The Design of Everyday Things


Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS (IN REVERSE)


Do we
understand this
person? What
makes them
tick?

THINK

SEE

FEEL

DO

PERSONAS

Is problem
relevant? Is the
proposition
better vs.
alternatives?

Was the
How did the
implemented
customer/user
story relevant to react?
the proposition?

Did the implementation


deliver on the story?

PROBLEM
VALUE
USER
CUSTOMER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

DESIGN THINKING- PERSONAS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING- PERSONAS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

02 DIAGNOSING USER NEEDS & PROBLEMS

The twin anti-poles of design failure


S

Doing precisely
what the user asks

P
A
N

Assuming you know whats


best and ignoring the user

Copyright 2014 Cowan Publishing

V ivid

A ctionable
R eal

I dentifiable
Exact
D etailed

Copyright 2014 Cowan Publishing

PREPPING A VENTURE DESIGN TEMPLATE

ref.alexandercowan.com/pdesign

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

WARM UP: ADD POSITIONING STATEMENT TO G.DOC


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].
EXAMPLE
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 for
lightweight but consistent assessments of technical talent].
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: THINK-SEE-FEEL-DO

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are
now.)

Sees

Feels

Does

Copyright 2014 Cowan Publishing

EXERCISE: PERSONA DISCOVERY QUESTIONS


Question Form

Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]?

- Tell

Tell me about [your area of interest]?

Tell me your thoughts about [area]?

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?
- 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?
- How

should it ideally be done?


- How is it actually done? Why?

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires.
Professional development is something theyve identified that they want to do better, but the functional
managers arent engaged enough to get the whole thing started.

Sees

Feels

Does

Copyright 2014 Cowan Publishing

CAN YOUR PERSONA HELP YOU DO THIS?


capture Attention
via Google AdWord

secure the engage


infamous Interest, Desire
on landing page
click

Action,
Retention
Onboarding

()
Copyright 2014 Cowan Publishing

CREATING AN ADWORD AD

Copyright 2014 Cowan Publishing

EXERCISE: CREATE AN ADWORD AD: THINK ANGLE


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
Are you connecting with the THINK in your Think-See-Feel-Do?
(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO
THIS!)

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)

Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Copyright 2014 Cowan Publishing

EXERCISE: PERSONA DISCOVERY QUESTIONS


Question Form

Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]?

- Tell

Tell me about [your area of interest]?

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?
- 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

What do you see in [area]?

- Where

should it ideally be done?


- How is it actually done? Why?
do you learn whats new? What others do?
- Who do you think is doing it right?
- How did you make your last decision?

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


For your top person, complete Think-See-Feel-Do
EXAMPLE: HELEN THE HR MANAGER
Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional
development is something theyve identified that they want to do better, but the functional managers arent engaged
enough 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 organize select into these courses.

Copyright 2014 Cowan Publishing

EXERCISE: CREATE AN ADWORD AD: SEE ANGLE


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
Are you connecting with the SEE in your Think-See-Feel-Do?
(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO
THIS!)

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)

Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Feel: (The emotional driver. What are the predominant emotions around the relevant activity? What is the
emotional outcome of the actions they take around the activity?)

Copyright 2014 Cowan Publishing

EXERCISE: PERSONA DISCOVERY QUESTIONS


Question Form

Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]?

- Tell

Tell me about [your area of interest]?

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?
- 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

What do you see in [area]?

- Where

How do you feel about [area]?

- Tell

should it ideally be done?


- How is it actually done? Why?
do you learn whats new? What others do?
- Who do you think is doing it right?
- How did you make your last decision?
me about the last time?
- What motivates you? What parts of it are most rewarding?
Why?
- What would it be like in your perfect world?
Copyright 2014 Cowan Publishing

EXERCISE: CREATE AN ADWORD AD: FEEL ANGLE


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
Are you connecting with the FEEL in your Think-See-Feel-Do?
(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO
THIS!)

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: (The cognitive part. Often: the tension between how theyd ideally like things to be and how they are now.)

Sees: (The interactions that shape their Thinking- media, peers, education, training, casual observation.)

Feel: (The emotional driver. What are the predominant emotions around the relevant activity?)

Do: The actuals. As applicable: What triggers? How often? For how long? How much money?

Copyright 2014 Cowan Publishing

EXERCISE: PERSONA DISCOVERY QUESTIONS


Question Form

Examples Questions (Enable Quiz)

Tell me about [yourself in the role of the persona]?

- Tell

Tell me about [your area of interest]?

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?
- 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

What do you see in [area]?

- Where

How do you feel about [area]?

- What

What do you do in [area]?

- How many new openings/quarter?


- How many interviews/position?

should it ideally be done?


- How is it actually done? Why?
do you learn whats new? What others do?
- Who do you think is doing it right?
- How did you make your last decision?
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?

Copyright 2014 Cowan Publishing

EXERCISE- PERSONA CREATION


EXAMPLE: HELEN THE HR MANAGER
Thinks: Helen thinks the hiring process should be so much better- more systematic, fewer bad hires. Professional
development is something theyve identified that they want to do better, but the functional managers arent engaged
enough 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 organize
select into these courses.
Feels: Helen feels like crap whenever they have to let someone go. She hates it. The employee hates it. The manager
hates 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. Most
HR 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 talk about it. If she likes it, shell bring it to the functional managers, who are usually the ultimate decision
makers since without their support she cant get the system online and working. Post-sale, Helen will help
keep the program organized, moving, and otherwise on the functional managers radar. All this is predicated
on Helen being equipped with the right messages, facts, and best practices to make the purchase and use of
Enable Quiz effective.
Copyright 2014 Cowan Publishing

EXERCISE: CREATE AN ADWORD AD: DO ANGLE


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
Are you connecting with the DO in your Think-See-Feel-Do?
(NO RULE AGAINST UPDATING YOUR PERSONA WHILE YOU DO
THIS!)

Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO
What job(s) are you doing for
the customer?
What existing need or
behavior are you fulfilling?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

?
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

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.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS


Hiring technical talent is difficult.
(Too Broad, Abstract)

Screening technical talent is difficult.


(Probably About Right)

Its hard for the HR manager to send good notes on


candidates to the functional manager.
(Too Detailed, A Feature vs. a Product/Venture)
Copyright 2014 Cowan Publishing

EXERCISE- PROBLEM SCENARIOS

X
?

Brainstorm Problem Scenario


PROBLEM SCENARIO +Alternative Pairs.

ALTERNATIVE(S)

Problem: Helen doesn't have a software


engineering background, so it's hard for her to
screen engineering candidates. She ends up
sending the functional manager too many
unqualified candidates. .
Alternative: She calls references and mostly
ends up taking their word for it.

Copyright 2014 Cowan Publishing

CREATE AN ADWORD AD: PROBLEM ANGLES


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use to talk about their
problems?
(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE
YOU DO THIS!)

Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

YOUR VALUE PROPOSITIONS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

YOUR VALUE PROPOSITIONS


Are they better enough than the
alternative(s)?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

EXERCISE- VALUE PROPOSITIONS

X
?
!

Add Value Propositions to


your top Problem Scenario +
PROBLEM SCENARIO Alternative Pairs

ALTERNATIVE(S)

YOUR VALUE
PROPOSITIONS

Problem: Helen the HR Manager doesn't


have a software engineering background, so
it's hard for her to screen engineering
candidates. She ends up sending Frank the
Functional Manager too many unqualified
candidates.
Alternative: She calls references and mostly
ends up taking their word for it.
Value Proposition: New ability for meaningful
screening of technical candidates, increasing
% of successful hires and lowering Frank the
Functional Manager's workload on recruiting.
Copyright 2014 Cowan Publishing

CREATE AN ADWORD AD: VALUE ANGLES


1. Select keywords (put in Notes section)
2. Draft ad copy
How does the draft follow from your personas?
Are you speaking in the language your customers use?
(NO RULE AGAINST UPDATING YOUR PROBLEM SCENARIOS WHILE
YOU DO THIS!)

Copyright 2014 Cowan Publishing

AND NOW THE PRODUCT HYPOTHESIS


A certain PERSONA exists
and they have a certain
PROBLEMS(S)

where theyre currently using


certain ALTERNATIVE(S)

and I have a VALUE


PROPOSITION thats better enough
than the alternatives to cause the
persona to act (purchase, use, etc.).

!
Copyright 2014 Cowan Publishing

EXERCISE: YOUR PRODUCT HYPOTHESIS


A certain PERSONA exists
and they have a certain
PROBLEMS(S)

where theyre currently using


certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITION thats better
enough than the alternatives to
cause the persona to act
(purchase, use, etc.).

Enable Quiz example:


HR and functional managers are in charge of
technical hires
and they struggle to effectively screen for
technical skill sets, making the hiring process
slower and more labor intensive and
producing worse outcomes than they should
reasonably expect.
Currently they implement a patchwork of
calling references and asking a few probing
questions.
By offering an easy, affordable, lightweight
technical quizzing solution, Enable Quiz can
acquire and retain these customer personas,
delivering material value.
Copyright 2014 Cowan Publishing

THE BUSINESS MODEL CANVAS


(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer
Propositions) Relationships)

(Customer
Segments)

(Channels)

(Revenue Streams)

The templates here are made available on the same CC license terms as the original canvas.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

SEGMENT TO VALUE PROPOSITION MAPPING


Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3

The templates here are made available on the same CC license terms as the original canvas.

Segment_1
Segment_2
Segment_3

Sort personas
and value
propositions in
priority order for
focal clarity

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

RECOMMENDED NEXT STEPS

Homework (details: bit.ly/hi-ilab)


1. Finish a working set of personas
2. Finish a working set of problem scenario-alternative-value proposition trios.
3. Finish the above in priority order on the Business Model Canvas
4. Finish a working product hypothesis and positioning statement.

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


RESOURCES: bit.ly/vdesign

Copyright 2014 Cowan Publishing

EXERCISE: PEER PRESENTATION

As
Presenter
1) What is this? (Use positioning
statement)
2) Who is the persona? What kind of shoes
do they wear?
3) What problem scenario(s) are you
looking at? What alternatives does the
persona use now?
4) Whats your value proposition?
5) Whats your product hypothesis?
6) What do you need to learn more about?

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

Copyright 2014 Cowan Publishing

4 TYPES OF LEAN HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

CUSTOMER CREATION
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PERSONA HYPOTHESIS
Does this person exist?
Can you identify them?
Do you understand them really well?
What do they think-see-feel-do in your area?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PROBLEM HYPOTHESIS

Have you identified a discrete problem/need?


How important is it to the target persona(s)?
What alternatives do they use today? How?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

VALUE HYPOTHESIS

How much better than the best alternative is your


product?
How obvious is that to the customer?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

USABILITY HYPOTHESIS
Do we know what actions the customer wants to
execute in order to connect with our value proposition?
Do we have an interface which delivers that?
Is that happening?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

CUSTOMER CREATION HYPOTHESIS

How will you get the customers: attention, interest,


desire, action, onboarding, retention?
How will you know if its working?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA 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?
Am I reacting or am I focused on
validating my pivotal assumptions?
Pivot or persevere?

6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


01 IDEA!

02 HYPOTHESIS

How do I definitely prove or disprove the


assumptions with a minimum of time
and effort?

6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

ASSUMPTIONS: ORGANIZED AND PRIORITIZED


Priority

Key Assumption

Needs Proving?

Experimentation

[A key assumption about the [Whether it needs


proving
business]

[Experiment to
prove or disprove]

Hiring managers would


prefer a lightweight quiz app
Yes
over calling references and
ad hoc probing.

* Customer interviews on problem


scenario
* Value testing through minimum
viable product

Managers want to be able to


Yes
add their questions as well

* Show prototypes with choices


* Test in beta

Parents have smart phones

n/a

No

Focus on strategic,
pivotal assumptions

Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA 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?
Am I reacting or am I focused on
validating my pivotal assumptions?
Pivot or persevere?

6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


01 IDEA!

02 HYPOTHESIS
6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

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

04 EXPERIMENTATION

Pivot or persevere?

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

4 TYPES OF LEAN HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

V
P

What is the fastest,


cheapest way to
validate or
invalidate this
option so we give
ourselves more
options on future
success?
Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Will it give us a
definitive result?
What are the
actionable metrics?

Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Product

Does it really
require actual
product? Can we
use alternative
brands, channels?

Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Product

is not necessarily actual software/product


(see concierge MVP)
is a first and foremost learning vehicle
vs. a project plan
vs. a product development project
(OK to do those things but always
subordinate them to the learning mission)

Copyright 2014 Cowan Publishing

THE ARCHETYPES
Archetype

Notes

Wizard of Oz

Show (or fake) the experience, sell the experience.

Concierge

Hand create the user experience.

Sales

See if you can sell some.

Copyright 2014 Cowan Publishing

EXAMPLE: ENABLE QUIZ


Persona(s)

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

Problem
Scenario

Helen: hard to screen for technical skills


Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews

Alternatives

Helen: call references, take their word for it (on skills)


Frank: ask a few probing questions

Value Prop.

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

What is the core value hypothesis?

Copyright 2014 Cowan Publishing

ENABLE QUIZ CORE VALUE HYPOTHESIS


Lightweight technical quizzes
that screen job candidates for
engineering positions would
improve the recruiting process for
companies that hire engineersenough that they would
subscribe to Enable Quiz.

Copyright 2014 Cowan Publishing

TACTICAL ASSUMPTIONS
If we [do something] for [persona], they will [respond in a certain way]
Archetype

Examples (Enable Quiz)

Wizard of Oz

If we get HR managers to a landing page with a demo, 10%


will sign up for our email product announcements.

Concierge

If we create position-specific quizzes for HR managers, theyll


use them ~100% of the time and, after two positions, be
willing to pay.

Sales

If we offer the service at [x] price with [y] supplemental


assistance, companies that hire a lot of engineers will pay [z].

Copyright 2014 Cowan Publishing

YOUR VENTURE, YOUR EXPERIMENT


Component

Notes

What assumption will this test? How?

What is/are the pivotal metric(s)?


What is the threshold for true (validated) vs. false (invalidated)?

What will you do next if the result is true? False?


How much time, money will it take to set up?

Roughly, what will it take for each individual test?


Subsequent tests?

Roughly, how long will it take for each test to run and produce
definitive, actionable results?
Copyright 2014 Cowan Publishing

EXAMPLE: ENABLE QUIZ CONCIERGE MVP


Component

Notes

What assumption will this test? How?

1) If we create position-specific quizzes for HR managers, theyll use them ~100%


of the time and, after two positions, be willing to pay.
2) If the HR managers use the quiz, theyll send through <1/2 as many candidates.
3) If we offer the service at [x] price with [y] supplemental assistance, companies
that hire a lot of engineers will pay [z].

What is/are the pivotal metric(s)?


What is the threshold for true (validated) vs. false (invalidated)?

1) [quizzes administered] / [candidates interviewed]


2) comparison on candidates screened out (historical)
3) ability to sell

What will you do next if the result is true? False?

True: Build a simple1.0


1 & 2 True: Look at customer creation hyp., value hypothesis
False: Consider value hyp., problem hyp.

How much time, money will it take to set up?

see bit.ly/exp-test

Roughly, what will it take for each individual test?


Subsequent tests?

see bit.ly/exp-test

Roughly, how long will it take for each test to run and produce
definitive, actionable results?

see bit.ly/exp-test

Copyright 2014 Cowan Publishing

EXAMPLE: ENABLE QUIZ ADWORDS MVP


Component

Notes

What assumption will this test? How?

Of the 100 possible technical topics to offer, Enable Quiz should select the 10 best
options.

What is/are the pivotal metric(s)?


What is the threshold for true (validated) vs. false (invalidated)?

1) absolute click-through-rate; wed like to see >=2%


2) relative to CTR (on this basis well select our top 10 topics)

What will you do next if the result is true? False?

True (along with previous): Build a simple1.0 with selected topics.


False (all CTRs <2%): Revise customer creation plan & test an alternate topic
assessment strategy

How much time, money will it take to set up?

see bit.ly/exp-test

Roughly, what will it take for each individual test?


Subsequent tests?

see bit.ly/exp-test

Roughly, how long will it take for each test to run and produce
definitive, actionable results?

see bit.ly/exp-test

Copyright 2014 Cowan Publishing

CLASS PRESENTATIONS

As Presenter
1) What is it? Use pos. statement.
2) Who is it for? What shoes do they
wear?
3) What problem does it solve?
4) What are your ideas for an MVP?

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

Copyright 2014 Cowan Publishing

POINT OF EMPHASIS

You are
the most
important
part of the
experiment

Make sure
youre
learning
Copyright 2014 Cowan Publishing

RECOMMENDED NEXT STEPS

Homework (details: bit.ly/hi-ilab)


1. Draft a working set of personas
2. Draft a working set of problem scenario-alternative-value proposition trios.
3. Organize the above in priority order on the Business Model Canvas
4. Finish a working product hypothesis and positioning statement.
5. Finish a working interview guide to validate your persona and problem hypotheses.
6. Complete at least 5 customer interviews.
7. Draft a working set of assumptions
8. Design your experiments and execute.

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


RESOURCES: bit.ly/vdesign

Copyright 2014 Cowan Publishing

FINI

Hypothesize

Learn

Experiment

View this deck

bit.ly/hi-wslab

Check out
Venture Design

bit.ly/vdesign

Use Customer
Discovery Handbook

bit.ly/playent

Twitter!

@cowanSF

Get in touch

acowan@alexandercowan.com

Copyright 2014 COWAN+

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