Build What Customers Want

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Are you struggling to figure out what customers want? Are you getting positive feedback on your product, but you can't find a way to get people to trade you money or attention for it? These are common …

Are you struggling to figure out what customers want? Are you getting positive feedback on your product, but you can't find a way to get people to trade you money or attention for it? These are common traps that can eat up valuable time and money. This presentation will give you the tools, from Design Thinking, Customer Development, Agile and a sprinkle of brain science, to become a better explorer who can navigate toward success.

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  • 1. www.rallydev.com @zachnies! ©2013! Build What Customers Want! Zach Nies – Chief Technologist!
  • 2. www.rallydev.com @zachnies! ©2013! Zach Nies @zachnies Zach Nies, Chief Technologist Rally Software
  • 3. www.rallydev.com @zachnies! ©2013!
  • 4. www.rallydev.com @zachnies! ©2013! Font Sampler! http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
  • 5. www.rallydev.com @zachnies! ©2013!
  • 6. www.rallydev.com @zachnies! ©2013!
  • 7. www.rallydev.com @zachnies! ©2013! I love to change industries !
  • 8. www.rallydev.com @zachnies! ©2013! Apply new
 disciplines!
  • 9. www.rallydev.com @zachnies! ©2013! Become disciplined explorers…!
  • 10. www.rallydev.com @zachnies! ©2013! who know how to balance exploration
 and execution!
  • 11. www.rallydev.com @zachnies! ©2013! Build what
 people want!
  • 12. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities!
  • 13. www.rallydev.com @zachnies! ©2013! What happened to this company?!
  • 14. www.rallydev.com @zachnies! ©2013!
  • 15. www.rallydev.com @zachnies! ©2013!
  • 16. www.rallydev.com @zachnies! ©2013! 1 2 5 iPhone Released1 iPhone App SDK Released2 Android w/ Nav Released5 Major Recession3 3 iPhone App Released4 4
  • 17. www.rallydev.com @zachnies! ©2013! A lot can ! happen in
 1.5 years.!
  • 18. www.rallydev.com @zachnies! ©2013! Incumbent advantage
 is going away!
  • 19. www.rallydev.com @zachnies! ©2013! Easier for startups to change industries!
  • 20. www.rallydev.com @zachnies! ©2013! What’s changing?!
  • 21. www.rallydev.com @zachnies! ©2013! Time to excellence!
  • 22. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
  • 23. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif Excellence!
  • 24. www.rallydev.com @zachnies! ©2013! Some examples…!
  • 25. www.rallydev.com @zachnies! ©2013! 1984!
  • 26. www.rallydev.com @zachnies! ©2013! 2006!
  • 27. www.rallydev.com @zachnies! ©2013! About 20 years!
  • 28. www.rallydev.com @zachnies! ©2013! 2001!
  • 29. www.rallydev.com @zachnies! ©2013! 2006!
  • 30. www.rallydev.com @zachnies! ©2013! 5 years!
  • 31. www.rallydev.com @zachnies! ©2013! 2007!
  • 32. www.rallydev.com @zachnies! ©2013! 2010!
  • 33. www.rallydev.com @zachnies! ©2013! 3 years!
  • 34. www.rallydev.com @zachnies! ©2013! 2010!
  • 35. www.rallydev.com @zachnies! ©2013! 2012!
  • 36. www.rallydev.com @zachnies! ©2013! 2 years!
  • 37. www.rallydev.com @zachnies! ©2013! 2008!
  • 38. www.rallydev.com @zachnies! ©2013! 2012!
  • 39. www.rallydev.com @zachnies! ©2013! 4 years!
  • 40. www.rallydev.com @zachnies! ©2013! “The Tesla Model S outscores every other car
 in our test Ratings.” – Consumer Reports!
  • 41. www.rallydev.com @zachnies! ©2013! 1979!
  • 42. www.rallydev.com @zachnies! ©2013! 1989!
  • 43. www.rallydev.com @zachnies! ©2013! 10 years!
  • 44. www.rallydev.com @zachnies! ©2013! 5 years!
  • 45. www.rallydev.com @zachnies! ©2013! 2.5 years!
  • 46. www.rallydev.com @zachnies! ©2013! 1.5 years!
  • 47. www.rallydev.com @zachnies! ©2013! http://hbr.org/2013/03/big-bang-disruption/
  • 48. www.rallydev.com @zachnies! ©2013!
  • 49. www.rallydev.com @zachnies! ©2013! Startups are more powerful disrupters!
  • 50. www.rallydev.com @zachnies! ©2013! Impact on companies!
  • 51. www.rallydev.com @zachnies! ©2013! 500
  • 52. www.rallydev.com @zachnies! ©2013! Question:! ! How long does the average company on this list survive?!
  • 53. www.rallydev.com @zachnies! ©2013!
  • 54. www.rallydev.com @zachnies! ©2013! 1958: ! Average lifespan was 61 years! ! 2012: ! Average lifespan was 18 years!
  • 55. www.rallydev.com @zachnies! ©2013!
  • 56. www.rallydev.com @zachnies! ©2013!
  • 57. www.rallydev.com @zachnies! ©2013! 8 years!
  • 58. www.rallydev.com @zachnies! ©2013! Incumbent advantage
 is going away !
  • 59. www.rallydev.com @zachnies! ©2013! How does this impact Product Development?!
  • 60. www.rallydev.com @zachnies! ©2013! Role of uncertainty!
  • 61. www.rallydev.com @zachnies! ©2013! Where does uncertainty live?!
  • 62. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 63. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Level of uncertainty!
  • 64. www.rallydev.com @zachnies! ©2013! What to do! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Operate!
  • 65. www.rallydev.com @zachnies! ©2013! What to do! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 66. www.rallydev.com @zachnies! ©2013! What to do! Big
 Companies! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  • 67. www.rallydev.com @zachnies! ©2013! Big Companies! http://www.flickr.com/photos/ironnickel/6076087519
  • 68. www.rallydev.com @zachnies! ©2013! Startups! http://www.flickr.com/photos/elcapitan/2387917709
  • 69. www.rallydev.com @zachnies! ©2013! Aligning action
 with uncertainty!
  • 70. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/isaacmao/380257543 Create a plan to predict the future!
  • 71. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 72. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 73. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 74. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 75. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 76. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 77. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  • 78. www.rallydev.com @zachnies! ©2013! HOW MANY GUESSES?!
  • 79. www.rallydev.com @zachnies! ©2013! FIRST CONTACT WITH POTENTIAL CUSTOMERS!
  • 80. www.rallydev.com @zachnies! ©2013!
  • 81. www.rallydev.com @zachnies! ©2013!
  • 82. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/oregondot/4132135156
  • 83. www.rallydev.com @zachnies! ©2013! Obscure
 the uncertainty
 with details!
  • 84. www.rallydev.com @zachnies! ©2013! Embrace and reveal
 the uncertainty!
  • 85. www.rallydev.com @zachnies! ©2013! What we need
 is a way to
 discover the future!
  • 86. www.rallydev.com @zachnies! ©2013! Uncertainty! Knowledge! Experiments!
  • 87. www.rallydev.com @zachnies! ©2013! Discover the future!Form Pivot Persevere Validate SalesPlaybook Ourdraftsalesplanwill closeoractivate customers. GoToMarket Wecanpackage,price, positionandpromote ouroffer. Founders Can Sell The founders can understand the flow of money and sell the offer. OperateDiscover Solution Ourproductidea solvesthecustomer’s problem. BusinessModel Ourbusinessmodel canbeprofitable. Problem We understand the problem a customer wants solved. Transition Team Wehavebudgetandadedicated transitionteam. IntoDepartments Wetransferredourknowledgeintothe departmentsandtheycanoperatethe newoffer. RollOff Wehaverolledoffeveryonefromthe discoveryteamwhowantstodo somethingnew. Pivot Persevere Today’s spend fuels high growth offers with an expected return in 12 to 36 months. rs s s ExperimentExperimentExperiment FrameHypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2 Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next. Vision Wehaveanideaworth pursuingthatexcitesthe team. InnovationSandbox Wehaveworking agreementswithothersto runadiscoveryprocess. Team We have a dedicated, cross functional team. © 2013 Rally Software Development Corp.
  • 88. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/klearchos/4541072707 Vision!
  • 89. www.rallydev.com @zachnies! ©2013! The idea is not the thing that matters.!
  • 90. www.rallydev.com @zachnies! ©2013! What does matter?! ! According to Simon Sinek!
  • 91. www.rallydev.com @zachnies! ©2013!
  • 92. www.rallydev.com @zachnies! ©2013! Why you’re doing it matters.!
  • 93. www.rallydev.com @zachnies! ©2013! Discover the future! Exploration Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Cad Quarterly Mentor Checkin Mentor Checkin Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 94. www.rallydev.com @zachnies! ©2013! Business Level!
  • 95. www.rallydev.com @zachnies! ©2013! Feature Level! 5. Value What value will be created for these users? Workarounds How are these problems being solved today? 1. User Personas Who is encountering the problems? Circumstances Within what circumstances do these problems exist? 3. Solution What solutions may make the problems go away? 4.Technology What technologies will be used to create the solution? 8. Feedback What meaningful and measurable feedback will be gathered from the users? 9. Enablement What will be needed to make these users aware of your solution and how it solves their problems? 7. Cost of Development What costs will go into solving the user’s problems? 6. Cost of Delay What will it cost your business if you don’t solve these problems over a period of time? 2. Problems What problems are these users encountering? Feature Canvas I-1 Adapted from the Lean Canvas (www.leancanvas.com)
  • 96. www.rallydev.com @zachnies! ©2013! Assumptions! AssumptionsCanvas Name: Date: Key Assumption Dependent Assumptions Falsified Assumptions Other AssumptionsOther Assumptions Key Assumption Dependent Assumptions Key Assumption Dependent Assumptions I-1
  • 97. www.rallydev.com @zachnies! ©2013! Assumptions! Knowledge! Experiments!
  • 98. www.rallydev.com @zachnies! ©2013! Empathize & Frame! Test & Measure! Build&Ship! Learn&Share! Experiments!
  • 99. www.rallydev.com @zachnies! ©2013! Experiment Backlog! Exploration Docum Wehavecompleted sideofanExperiment W persp Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. Cad Quarterly Mentor Checkin Mentor Checkin Mentor Checkin Prepare Review Canvas We have an updated canvas that reflects our latest learnings and the team has reviewed it. Enumerate Assumptions We have a list of assumptions that need to be true for our offer to work. Identify Key Assumptions We have identified the 3 most important leap of faith assumptions to test next.
  • 100. www.rallydev.com @zachnies! ©2013! Experiments! Background: What do you want to learn and why? What guess, assumption, risk, or question are you testing? What pain or problem is being experienced that’s motivating this experiment? If you can, write the Problem Statement from the Define worksheet here. [Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight]. Hypothesis toTest [Specific repeatable action] will create [expected result]. State your hypothesis as an if/then assertion. Is this hypothesis falsifiable? Experiment Materials and Method What will you need to run your experiment, both from your team and from others? Describe the experiment you plan to run and how it can falsify your hypothesis. What steps are needed to run the experiment? Do you need a control group to establish a comparison? Safety: How is the experiment safe to run and how will you undo it? Why is the experiment safe to run? What about your experiment method protects you from harmful side effects? Describe how you will undo the experiment upon completion or if you discover it is no longer safe to run. Variables and Measures What variable (the manipulated variable) are you going to intentionally change during the experiment? What variables (the responding variables) do you expect to respond to changes to the manipulated variable? What variables (the control variables) do you need to keep constant during the experiment? What qualitative and quantitate measures will you use to measure your variables? What will you measure to indicate the experiment is running safely? Experiment Name: Owner: Mentor: Start Date: End Date: I-4 Next Steps: Given what you learned, what’s next? Experiment Results Describe your results from the experiment. Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on? Experiment OutcomeExperiment Outcome Validated Invalidated InconclusiveValidated Invalidated Inconclusive Cycle Time: days Cost: $ (Run rate * Cycle Time) + Costs Validated Learnings Describe what you learned from the experiment? Restate your hypothesis based on the results. If it was validated, restate it as it is. If it was invalidated, frame the hypothesis in the negative rather than the affirmative. If it was inconclusive, leave this box blank. Ancillary Insights: What else should you explore? Capture your insights that were gained unintentionally through this experiment.  
  • 101. www.rallydev.com @zachnies! ©2013! Run experiments! P Per SalesPlayb Ourdraftsalespla closeoractivate customers. ToMarket anpackage,price, itionandpromote ouroffer. Solutio Ourproductid solvesthecustome problem. nessModel businessmodel anbeprofitable. Tea Wehavebudgeta transitio IntoDepa Wetransferredour departmentsandth newo Roll Wehaverolledoffe discoveryteamw somethi P Per ExperimentExperimentExperiment Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results. Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results. Knowledge Enumerate Experiments We have a series of experiments that will test the validity of our top leap of faith assumptions. QuarterlySteering Demo Demo Demo Demo Demo Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Mentor Checkin Operational Review Operational Review I-2© 2013 Rally Software Development Corp.
  • 102. www.rallydev.com @zachnies! ©2013! Empathize & Frame! Frame Hypothesize Wehaveapredicted outcomethatwecan measureandfalsify. Document Wehavecompletedtheleft sideofanExperimentA3. Empathize We understand the perspective of our users & customers. De Wehaveourexp runningwithrealsub We build m owledge umerate periments ave a series of ments that will he validity of p leap of faith sumptions.
  • 103. www.rallydev.com @zachnies! ©2013! Build & Ship! ExperimentExperimentExperiment othesize ehaveapredicted outcomethatwecan measureandfalsify. he ers & M Org Wehaveturnedt intoinformationweus tellastory. We h effe Build Deploy Wehaveourexperiment runningwithrealsubjects. Implement Wehaveasolutionthatcan falsifyourhypothesis. Design We understand how to build our experiment and measure the results.
  • 104. www.rallydev.com @zachnies! ©2013! Test & Measure! ExperimentExperimentExperiment Measure Analyze Wehaveafactbased argumenttoinvalidateor validateourhypothesis. Organize Wehaveturnedthedata intoinformationweuseto tellastory. Collect We have enough data to effectively analyze the results. Sh Wesharedtheres thosewhocouldben from theknowledge. We colle lement veasolutionthatcan falsifyourhypothesis. w to and ts.
  • 105. www.rallydev.com @zachnies! ©2013! Learn & Share! e alyze haveafactbased rgumenttoinvalidateor validateourhypothesis. a to the Learn Complete Wehaveacompleted ExperimentA3. Share Wesharedtheresultswith thosewhocouldbenefit from theknowledge. Compare We compared the data collected to our expected results.
  • 106. www.rallydev.com @zachnies! ©2013! TAKE EACH MAJOR ASSUMPTION!
  • 107. www.rallydev.com @zachnies! ©2013! RUN AN EXPERIMENT!
  • 108. www.rallydev.com @zachnies! ©2013! http://www.youtube.com/watch?v=Iyjs3zeoSrM
  • 109. www.rallydev.com @zachnies! ©2013! http://www.richard-feynman.net/gallery.htm
  • 110. www.rallydev.com @zachnies! ©2013!
  • 111. www.rallydev.com @zachnies! ©2013!
  • 112. www.rallydev.com @zachnies! ©2013!
  • 113. www.rallydev.com @zachnies! ©2013! Technology adoption is a human phenomenon !
  • 114. www.rallydev.com @zachnies! ©2013! Not a technological phenomenon !
  • 115. www.rallydev.com @zachnies! ©2013! An example…!
  • 116. www.rallydev.com @zachnies! ©2013!
  • 117. www.rallydev.com @zachnies! ©2013! Need human centered approach!
  • 118. www.rallydev.com @zachnies! ©2013! “Get out of the building!”! Steve Blank!
  • 119. www.rallydev.com @zachnies! ©2013! “Meaning emerges through interaction”! Dave Snowden!
  • 120. www.rallydev.com @zachnies! ©2013! Your turn!
  • 121. www.rallydev.com @zachnies! ©2013! Add a gift giving feature to Instagram!
  • 122. www.rallydev.com @zachnies! ©2013! The impact of innovation is changing!
  • 123. www.rallydev.com @zachnies! ©2013! Easier for startups to change industries!
  • 124. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities!
  • 125. www.rallydev.com @zachnies! ©2013! What happened to this company?!
  • 126. www.rallydev.com @zachnies! ©2013!
  • 127. www.rallydev.com @zachnies! ©2013!
  • 128. www.rallydev.com @zachnies! ©2013! 1 Began Using Lean Startup1 2 $50M in New Product Revenue2 3 1800 Concurrent Experiments3
  • 129. www.rallydev.com @zachnies! ©2013! Books that informed this talk!
  • 130. www.rallydev.com @zachnies! ©2013! Geoffrey
 Moore! David Snowden! Ash
 Maurya! Tim
 Brown! Clayton
 Christensen! Steve
 Blank! Eric
 Ries! People who informed this talk! Brant Cooper Patrick Vlaskovits!
  • 131. www.rallydev.com @zachnies! ©2013! Go Agile. Go Rally.!