ENT3003 Exam 2
What insight did Knock Knock City founders gather while hauling around baggage as they were traveling?
There is a connection between the need for baggage storage and empty retail space
FedEx focused on the customer needs while also identifying how it fit into customers' lifestyles
True
Fulfilling unmet needs of customers using an existing product is called differentiation.
True
One of the key factors of brainstorming, in Osborne's model, was to "hold back criticism until the creative current has had every chance to flow."
True
Social media sites are examples of the innovation business model.
True
Interviewing is an important part of the inspiration phase.
True A skillfully conducted interview collects helpful data both prior to development and as feedback for existing products.
Design thinkers welcome constraints because it opens up opportunities for innovative solutions.
True Constraints are welcome, and the idea should balance feasibility, viability, and desirability
Developing empathy is part of design thinking.
True Design thinking focuses on the people you are designing for and empathy for that group
The business model canvas is a type of visual plan that depicts the business on one page by filling in nine blocks of the business model.
True The BMC breaks down the four parts of the business model into nine components.
Divergent thinking
allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints
feedback interview
an interview conducted to get feedback on an existing product/service
Once you have a short list of broad questions, it is important to have a(n) ______.
approach
Designers who use math, engineering, and software are ______.
architects
Within IDEO, the design team may be made up of a mix of ______.
architects, psychologists, artists, and engineers.
When conducting an interview, in addition to the questions, you should record ______.
basic facts about the person
A ______ describes the rationale of how a new venture creates, delivers, and captures value.
business model
A(n) ______ is a formal document that provides background and financial information about the company, outlines the business's goals, and describes how you intend to reach them.
business plan
Complete Participant
complete participant is almost like an undercover spy. The researcher fully engages with the participants and joins in with their activities, but they have no idea they are being observed.
Creating a CVP involves uncovering ______.
customer needs
What did IKEA understand about the goal of customers purchasing furnishings?
customers want nice furnishings rather than worn, secondhand pieces
Which of the following are parts of the business model?
customers, offering, infrastructure, viability
financial viability
defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations
business model
describes the rationale of how a new venture creates, delivers, and captures value
The Designing for Growth author's four questions and The Stanford Design School five phases are other approaches to ______.
design thinking
The tool used by entrepreneurs to solve complex problems for people is ______.
design thinking
"How might we" is an important phrase in the ______ process, according to the IDEO CEO Tim Brown.
design-thinking
How can entrepreneurs make products and services attractive to more than one customer segment?
different CVPs for each customer segment
Massive Open Online Courses (MOOCs) are an example of what business model?
disruption
What is the concept similar to the practice of play?
divergent thinking
Researchers at Massachusetts Institute of Technology created the AGNES suit in order to gain empathy for what population?
elderly helped the wearer experience similar discomforts of an aged person.
Tata Motors was able to make a low-cost car by ______.
eliminating parts, reducing suppliers, and outsourcing components.
The complete participant observation technique involves ______.
engaging completely without participant's knowledge
What is important to building customer relationships?
engendering positive feelings about business
Diet Coke and Coca-Cola Zero have the same target markets.
false
differentiation
fulfilling unmet needs of customers using an existing product/service (Quip) existing product/service and new customers
Lack of access prevents people's ability to______.
get jobs done
One of the key factors of brainstorming, according to writer and advertising executive, Alex Osborne, is to ______.
hold back criticism until the creative current has had every chance to flow
What does the "value" part of customer value proposition mean?
how much the product or service is worth to the customers
Viability
how sustainable is the idea in the long term?
design thinking
human-centered approach to innovation that brings together what people need with what is technologically feasible and economically viable.
The creative process that involves generating and developing new ideas based on observations gained during the inspiration process to address latent needs is ______.
ideation
offering
identifies what you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them
The all-benefits approach to CVP involves ______.
identifying and promoting all the benefits of the company with little regard for competition
What is the business model that offers a product without differentiation?
imitation
The process of testing assumptions to shape the final project is the ______ phase.
implementation
customer value proposition
included in offering, statement that describes why a customer should buy or use your product/service promise of value to the customer
The ______ includes people, technology, products, suppliers, and other resources that an entrepreneur must have in order to deliver the CVP.
infrastructure
User + Need + Why describes a(n) ______ statement.
insight
insight
interpretation of an observation or a sudden realization that provides us with a new understanding of a human behavior or attitude that results in some sort of action
need-finding interview
interviewing much earlier in the process to develop insights and identify needs
The business model presented in the textbook illustrates a journey of gathering evidence in what ways?
investigating, asking lots of questions, and talking to ppl
Why is the BMC important?
it fills in the details of the business model
The component that describes managing such stock and design is ______.
key activities
Which components of the BMC are part of infrastructure?
key activities, key resources, and key partners.
Needs
lack of something desirable, useful, or required that are uncovered through the design thinking process.
Latent needs
needs we have but don't know we have. (example: iPhone)
Observer as Participant
observer is known to the participants but maintains a neutral stance throughout
For a CVP to be effective, it needs which of the following qualities?
offer better value than the competition, be measurable in monetary terms, and be sustainable.
The first part of the business model is ______, which identifies the product or service, the value generated by it, and how you will reach the customers.
offering
Inspiration
phase 1 - involves two primary tasks: defining the design challenge and learning about the users you are designing for
The CVP for selling luxury yachts might combine which of the following?
ppl living close to the water, ages 30-65 with high income, ppl with interest in water sports
customers
ppl who populate the segments of a market that your offering is serving
Developing keen observation skills requires ______.
practice
Brandon Steiner
profiled in the Entrepreneurship in Action feature , has freedom to create, test, and adapt their business models until they find a compelling business model
real reason to believe
provides evidence to the customer that you will do as you promise - credibility
Participant as Observer
researchers are not only known by the participants, but considered more of a friend or a colleague
Financial viability includes ______.
revenue streams, & cost structure
In addition to designing a voting machine for the Los Angeles community, IDEO needed to consider ______.
security, privacy, and voting regulations.
innovation
social media sites (FaceBook) new product & service AND new customers
Complete Observer
someone who is either hidden from view or is observing in plain sight but is not noticed by participants
Observation
the action of closely monitoring the behavior and activities of users/potential customers in their own environment for greater empathic understanding
overt benefit
the one big benefit for your customer
evidence-based entrepreneurship
the practice of hypothesizing, testing, and validating to create a business model
infrastructure
the resources, (ppl, technology, products, suppliers, partners, facilities) that an entrepreneur must have in order to deliver the CVP
An entrepreneur needs to figure out which customers to focus on and which to ignore.
true
Shaymaa Gaafar
used design thinking to create a brand that encourages women to express themselves while staying true to their personal values.
Stanford Design School
uses five phases: empathy, define, ideate, prototype, and test (EDIPT)
While helping Rise Science develop their sleep training system for its customers, IDEO identified better usership of the new system by customers when ______.
using an introduction to the system by a company employee to the customer
Financial ______ defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations.
viability
Feasibility
what can possibly be achieved in the near future?
AEIOU Framework
-activities, environments, interactions, objects, and users -framework commonly used to categorize observations during fieldwork to help you make sense of what you are seeing
CVP needs three qualities:
1) must offer better value than the competition 2) must be measurable in monetary terms 3) must be sustainable
four ground rules for brainstorming
1. suspending all judgment; 2. being open to wild suggestions; 3. generating as many ideas as possible; and 4. putting ideas together and improving on them.
Tim Brown
CEO of IDEO, developing new ways to optimize health care, to designing advertising campaigns, to finding different approaches to education, to designing new businesses
What is the starting point of design thinking?
Desirability
The ______ map is a tool to help you collate and integrate the interview data in order to discover insights.
Empathy
Similar to design thinking, CVP means thinking about your business from an organizational perspective.
False As with design thinking, the entrepreneur wants to think about business from customer's viewpoint.
Insights are ideas.
False Insights enable entrepreneurs to see everyday events or ideas in a new light in order to meet latent needs.
In the United States, people waste $1.5 billion annually by waiting for ______.
Hospital visits
Insight differs from observation in that it ______.
Insight is the information derived from observation or interviews that provides interesting information, articulating users' needs.
What did IDEO discover when tasked with developing a medical device for nurses?
Nurses needed to be observed working design team was planning to make a device to be held with two hands until they observed nurses working
Inspiration
Outcome: Design challenge and user needs
Ideation
Outcome: Potential solutions to meet needs
Implementation
Outcome: Prototyping and testing solutions
Ideation
Phase 2 - involves generating and developing new ideas to address needs (or latent needs), based on observations made during the inspiration process. Ideation is where empathy and creativity interact to generate solutions!
Implementation
Phase 3 - how do I get feedback, how do I test it, how do I iterate, and how do I learn as quickly as possible whether there is a potential market? During the implementation phase, ideas generated in the ideation phase are transformed into concrete actions that require user interaction.
disruption
MOOCs disrupted higher education new product & service and existing customers
Bryan Bitticks, a Great Clips franchise owner, targeted younger customers by creating a virtual online experience.
True Bitticks' system gave his customers convenience and comfort before they walked in the door.
Convergent thinking
a thought process that allows us to narrow down the number of ideas generated through divergent thinking in an effort to identify which ones have the most potential.
imitation
do not do existing product/service & existing customers
Entrepreneurs are able to create a product or service that customers are willing to buy by considering customer's ______.
motivations, desires, and unmet needs
What is the type of CVP that describes why people really like your products and focuses on the customers and what they really need and want?
resonating-focus
Desirability
who will want to use or buy the product or service?