Ch7 MHR422
3 phases of design-thinking process
inspiration ideation implementation -nonlinear approach that produces meaningful, creative results
pilot experiment
a small-scale study conducted to assess the feasibility of a product or service
entrepreneurs see unceratinty as
an opportunity to try new options whereas non-entrepreneurs either freeze up or rely on prior solutions
value in finance
assess financial health of the org and its ability to provide high value while maintaining a healthy margin
hypothesis
assumption tested through research and experimentation
implementation phase
focuses on early, fast, low-cost testing and experimentation to strengthen ideas and ensure entrepreneurs are on the right path to meet the needs of their potential customers
paper test
simple way to outline your vision and spot any mistakes before the process goes any further -can be carries out using a variety of techniques like blueprinting, storyboard etc
back of a napkin
sketching your idea on the back of a napkin -we can visually solve problems with pictures and this makes idea come to life
advertising
spread word of business using social media or brochures directed at relevant target market and addressing level of response
prototypes are used to
test hypotheses
pre-selling
testing technique involving book order for products before its been developed
Wizard of Oz Prototype
testing with faked functions i.e virtual assistant
value ine exchange
service offered at competitive price
scientific process of experimentation
1. ask a question 2. form a hypothesis 3. conduct research 4. test hypothesis 5. analyze results 6. communicate results
rules of experimentation
1. focus on all types of stakeholders 2. ask lots of questions 3. think like a scientist, but do not act like one 4. build your learning into the next iteration -dont ignore negative info 5. keep track of data 6. keep experiments low cost and quick -use them to shape ideas 7. interact with stakeholders 8. do not ignore data just because you do not like what its telling you
5 characteristics of good experiments
1. they are structured and follow a particular template 2. they are focused and do not try to test too many things at the same time-focus on core hypothesis 3. they are believable so you can trust what you learn 4. they are flexible so you can make changes while in the experiment if necessary 5. they are compact so you can learn quickly
experimentation template
1. what is the hypothesis? 2. what is the pass/fail metric? 3. who are the participants in the experiment 4. how many participants are needed? 5. how are you going to get participants? 6. how long will the experiment be run? 7 how long is the experiment?
mock-up prototypes
2D or 3D visual model that looks like final product but lacks the right functionality -may be used as replica of real product during experimentation
when the original hypothesis is incorrect, one should
Adapt the original assumption
do not ignore any
DATA--failure is important to learn
pilots and prototypes are
often used interchangeably but they aren't the same thing and a prototype is often created before the pilot testing
final solutions should
be in the center of desirability, feasibility, viability
stress tolerance
being able to handle anxiety that comes with new experiences or uncertain situations
thrill seeking
being open to talking certain social, financial, physical risks to experience new adventures
how to stay curious
connect with other curious ppl be a curiosity ambassador focus on learning broaden your networks ask why, what if, how might we...? challenge existing mindsets and generate new ideas
value in use
consumers enjoy using product and will likely refer it to friends
ongoing requirement for entrepreneurs
continuous testing
concierge
customer interfaces with product but "technology" is going on behind the scenes
wizard of oz
customers think they are interfacing with the real product but it is actually you behind the scenes manually providing the service
joyous exploration
delighting in wonder of world and fascination it holds
5 dimensions of curiosity
dimensional sensitivity joyous exploration social curiosity stress tolerance thrill seeking
prototype
early and often crude version of product; an initial version of a product or service designed for use in experimentation
storyboard
easy form of prototyping that provides a high level view of thoughts and ideas arranged in sequence in the form of drawing, sketches, illustrations -best chance of provoking reaction; helps explain products or projects -gives entrepreneurs better understanding of their idea and how it interacts with customers + its potential value with customers -requires customer to be at center of story -simple, inexpensive, does not require artistic talent -goal is to communicate using visual-imagery
problem-solution-benefit framework
elements in basic framework for storyboarding state the problem: what problem is your customer experiencing? show the solution: what are you offering as a solution to the problem? show the benefit: how will your customer benefit from your solution?
prototype
embodiment of whatever it is you expect to sell -anything can be prototyped / mocked-up -vary in fidelity (how close it is to the real product or service)
social curiosity
enjoy process of learning about others by talking, listening, observing
entrepreneurs are
experimenters
interviews
fast, inexpensive way to get insights into your idea from your target customers before you begin the experiment
value in distribution
focuses on availability and accessibility of product
experimentation principle
generate and implement experiments that yield the max amount of actionable info for the least time, effort, cost -use results of experiments to understand what customers will actually buy. then quickly pivot or preserve towards viability -cost benefit analysis to get results
landing page
include particular call to action such as "click here for more info"
curiosity
increases perseverance and boosts performance
an experiment can be many things
interview customers or focus group "paper" test advertising pre-selling landing page/button to nowhere A/B testing (classical experimentation) etc
entrepreneurial experimenation
is about acting to learn goal is not to build a perfect experiment but use low cost, quick methods to shape ideas and make them better through continual iteration
lean startup framework theory
it is unlikely or almost impossible to have perfect market/customer info about new opportunities because of inherent uncertainty--> long term planning is difficult and possibly counter-productive because it prevents us from being prepared for different circumstances
action framwork
iterative experimentation -hypotheses, prototypes, experiments, learning and adaptation
live product and business
launch live product and business in the marketplace
sketches on a page
little more complicated than back of napkin approach requires a more focused approach between how product works or can work in the future -create a gallery sketch with colors, labels, arrows to indicate major components of idea -before and after scenario of life today vs after using product
types of protypes
looks like mock-up functions like (low-function vs MVP) minimum viable product (MVP) role-play (esp for services) storyboard/paper
role playing (experimental prototyping)
method that helps you step into shoes of your user by capturing their emotional experience of testing a product or service
value in fitness
monitors continuous process of gathering resources and innovating
High Fidelity Prototype
more sophisticated version of mock up that has enough functionality to allow users to really interact with the product or service
Debunking Myths of Entrepreneurship: Eric Ries, The Lean Startup
most startups fail for bad reasons lean startup is a vision for how our industry could be different if we change the way we operate and give up precious myths of entrepreneurship we do not need to accept the same level of failure that we used to startup doll house fallacy-startup is a small version of a large business startups are human institutions designed to create something new under conditions of extreme uncertainty -entrepreneurship is a management science -pivot: as we test ideas against reality, we discover that within every bad idea is a small good idea waiting to come out; changing direction; keep one foot rooted in what they learned and other foot in new direction use of pivot distinguishes successful vs unsuccessful entrepreneurs premise of the lean startup: if we can reduce the time it takes us to do the pivots, we can increase the odds of finding product-market fit and being successful before we run out of money -worst outcome of product launch is customers giving you no feedback at all
customer engagement
one of the most important parts of an experiment is customer engagement with your product or service -involving real customers provides you with immediate feedback on how your product or service is received and makes connections with ppl that may buy your product or service when its fully launched
rapid prototypes
quickly created models used to visualize a product or service -could be made out of crude paper models or storyboards
dimensional sensitivity
recognize gap in knowledge, frustration it brings, determination to fill out
lego prototypes
rough, simple prototype of your idea
Steve Blank: principles of lean
series of knowns are good for business plans in a startup you have mostly a series of unknowns startups are not smaller versions of large companies large companies execute known business models startups search for unknown business models startups fail when they confuse searching for business models with executing them-->lean startup the lean startup is a risk reduction methodology 1. frame hypothesis -who the customers are and what you are building= product market fit -as smart as you are, theres no way you are smarter than the collective intelligence of your potential customers--> get outside because there are no answers inside your building 2. test hypothesis-->customer development discovery-->validation-->creation-->building discovery and validation are the searching creation and the building are the execution 3. build the product incrementally and iteratively-->agile engineering=minimum viable product
experiment
set of actions designed to test a hypothesis; test designed to help you learn and answer questions related to the feasibility and viability of your venture -for entrepreneurs they tend to focus on consumers, product features, and value creation -core feature of lean startup framework -process of getting what you want to sell in front of someone to see how they respond to it -need to have a clear purpose, be achievable and generate reliable results -used to prove or disprove validity of an idea or hypothesis
4 quadrant framework
shows problem organize solution to problem outcome
what do feedback interviews involve
use of some prototype asking users their opinions of product or service determining if theres value for user in use of product or service identifying ways to make the product better determining if your'e targeting the correct answers
feedback interviews
used to get feedback on prototypes -useful in conjunction with experimentation -helps you get more info on "why" ppl are interacting with your product or service in different ways
user-driven prototypes
user creates prototypes which enables you to better understand their thinking
5 types of value
value in use value in exchange value in distribution value in finance value in fitness
minimum viable product
version of a new product that allows the team to collect the max amount of validated learning about customers with the least effort -prototype on truth curve -building products with most important features and benefits without overbuilding -first functioning and working version of the product ready for release to actual customers
task completion
watch someone use your product to understand what works and what doesnt
interviewing technique-peel the union
way of delving into a problem one layer at a time helps gain deeper understanding
button to nowhere
when user click on feature and nothing happens -see if there is user interest before actually building it
lean startup approach
work smarter, not harder eliminate (reduce) uncertainty develop and MVP validated learning build --(product)-->measure--(data)-->learn--(ideas)-->repeat composed of business model design, customer development, agile engineering building a sustainable business is the outcome of a series of evolving product experiments (the product a startup builds are just experiments)