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The era of pretotyping has arrived (by Kevin Douven)

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The key concept in any start-up? The freedom to experiment as basis for accelerated learning. Or like Pink Floyd sang in the 70’s: “We don’t need no education.” Is your FabLab ready for it?

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The era of pretotyping has arrived (by Kevin Douven)

  1. 1. The era of pretotyping | Building the Right It, before Building It Right 1 CONFIDENTIAL Template Innovation Day 2019CONFIDENTIAL THE ERA OF PRETOTYPING Kevin Douven BDM Consulting Office Kevin.douven@verhaert.com TRACK 3 MyStartUp “Making sure you’re building the right IT, before you build IT right..”
  2. 2. The era of pretotyping | Building the Right It, before Building It Right 2 CONFIDENTIAL 3.2 The era of pretotyping has arrived 2 PRETOTYPING IS.. Validating market interest and actual use of a potential innovation.. USABILITY DESIRABILITY UTILITY QUICK > > > by simulating the core experience.. with the minimum investment of time and resources
  3. 3. The era of pretotyping | Building the Right It, before Building It Right 3 CONFIDENTIAL 3.2 The era of pretotyping has arrived 3 SOME FACTS About the Law of Market Failure
  4. 4. The era of pretotyping | Building the Right It, before Building It Right 4 CONFIDENTIAL 3.2 The era of pretotyping has arrived 4 FACT 1 / MOST NEW PRODUCT LAUNCHES FAIL Harvard professor Clayton Christensen said: more than 30.000 new consumer products are launched every year. 85% of them fails. 80% OF PRODUCTS FAIL Nielsen report: “Setting the record straight on Innovation Failure” 2011 2018
  5. 5. The era of pretotyping | Building the Right It, before Building It Right 5 CONFIDENTIAL 3.2 The era of pretotyping has arrived 5 FACT 2 / MOST START-UPS WILL FAIL 75% OF VENTURE- BACKED START-UPS FAIL HARVARDBUSINESSSCHOOL SHIKHARGHOSH https://www.hbs.edu/faculty/Pages/profile.aspx?facId=122194
  6. 6. The era of pretotyping | Building the Right It, before Building It Right 6 CONFIDENTIAL 3.2 The era of pretotyping has arrived 6 WHY ..? Sales, marketing or distribution fails to reach the intended market OPERATIONS LAUNCH PREMISE > > > Failure due to Launch, Operations or Premise Design, functionality or reliability fails to meet user expectations People are simply not interested in your idea. They can find it, try it, or buy it, but they simply just don’t care ...
  7. 7. The era of pretotyping | Building the Right It, before Building It Right 7 CONFIDENTIAL 3.2 The era of pretotyping has arrived 7 AND NOT ONLY STARTUPS GET IT WRONG.. Oakley Thump, Oakley (2005) Sunglasses with built-in mp3 player for $495 (in 2005 dollars), cheap-feeling, weak sound, and terribly unfashionable… Segway, Segway Inc. (2001) two-wheeled self-balancing scooters, that looked dumb and cost a fortune. Now reserved for mall cops only.. Fire Phone, Amazon (2014) A clunky phone with limited app options, and a Firefly feature that couldn’t win over customers… Viewsonic Airpanel, Microsoft (2003) A tablet that could only work when connected to a desktop computer.. Home Battery Pack, Mercedes – Benz (2017-18) Expensive for the market, and basically over-served its customers New Coke, Coca-cola (1985) A change consumers never asked for and public backlash was a disaster Keurig Kold, Keurig (2016) Trial for the at-home soda machine market, with pricey machine, pricey pods & dissatisfying user experience Lip balm, Cheetos (2005) The idea of smearing your lips with something Cheeto-scented/ flavored clearly didn’t appeal to many..
  8. 8. The era of pretotyping | Building the Right It, before Building It Right 8 CONFIDENTIAL 3.2 The era of pretotyping has arrived 8 Google Graveyard BUT THESE ARE COMPETENT COMPANIES Microsoft Morgue Most new ideas fail in the market— even if competently executed. The Law of Market Failure - Alberto Savoia , Building the right IT, 2019
  9. 9. The era of pretotyping | Building the Right It, before Building It Right 9 CONFIDENTIAL 3.2 The era of pretotyping has arrived 9 How do we avoid or pivot away from failure? The importance of Customer Validation
  10. 10. The era of pretotyping | Building the Right It, before Building It Right 10 CONFIDENTIAL 3.2 The era of pretotyping has arrived 10 EARLY STAGE CUSTOMER VALIDATION De-risking your innovation QUALITATIVE INSIGHTS IDEA TESTING > > >
  11. 11. The era of pretotyping | Building the Right It, before Building It Right 11 CONFIDENTIAL 3.2 The era of pretotyping has arrived 11 BUT WAIT.. People don’t really know what they want!? "If I’d have asked people what they wanted, they would have asked for a faster horse” – Henry FORD “It’s really hard to design products by focus groups. A lot of times, people don’t know what they want until you show it to them.” — Steve JOBS
  12. 12. The era of pretotyping | Building the Right It, before Building It Right 12 CONFIDENTIAL 3.2 The era of pretotyping has arrived 12 THE PROBLEM WITH ‘THOUGHTLAND’ People don’t know what they want, nor what they’ll do? ▪ Lost in translation / interpretation ▪ Prediction problem / envision ▪ No Skin in the Game / investment ▪ Confirmation bias / prejudice
  13. 13. The era of pretotyping | Building the Right It, before Building It Right 13 CONFIDENTIAL It's much easier to get people to open their mouth than to open their wallet Alberto Savoia
  14. 14. The era of pretotyping | Building the Right It, before Building It Right 14 CONFIDENTIAL 3.2 The era of pretotyping has arrived 14 DON’T ASK FOR OPINION ▪ Understand motivation → Job-to-be-done → Triggers → Motivators → Hurdles → … ▪ Get your own data (YODA)
  15. 15. The era of pretotyping | Building the Right It, before Building It Right 15 CONFIDENTIAL Make sure - as quickly and as cheaply as you can - that you are building the right it before building it right Alberto Savoia - Google
  16. 16. The era of pretotyping | Building the Right It, before Building It Right 16 CONFIDENTIAL THE IDEA OF PRETOTYPING
  17. 17. The era of pretotyping | Building the Right It, before Building It Right 17 CONFIDENTIAL THE BENEFIT OF PRETOTYPING
  18. 18. The era of pretotyping | Building the Right It, before Building It Right 18 CONFIDENTIAL HOW DOES AMAZON DO IT? LAUNCH & LEARN ENTREPRENEURIAL CULTURE “SOME OF THESE INVESTMENTS WILL PAY OFF OTHERS WILL NOT, AND WE WILL HAVE LEARNED ANOTHER VALUABLE LESSON IN EITHER CASE “ JEFF BEZOS – 2013 SHAREHOLDER LETTER
  19. 19. The era of pretotyping | Building the Right It, before Building It Right 19 CONFIDENTIAL PRETOTYPING How do we get started?
  20. 20. The era of pretotyping | Building the Right It, before Building It Right 20 CONFIDENTIAL 3.2 The era of pretotyping has arrived 20 1. Describe your idea as concrete as possible • Market engagement hypothesis (MEH) • Say it with Numbers : XYZ Hypothesis • Hypozooming STEPS TO PRETO For instance, 2nd Day Sushi idea Idea “If it were reasonably tasty, safe to eat, and cheap enough, I’d buy second day sushi!” XYZ Hypothesis “At least 20% of packaged-sushi eaters will try 2nd day sushi, if it’s half the price of regular packaged sushi” Hypozoomed “At least 20% of Carrefour clients buying packaged sushi today, will choose 2nd day sushi if it’s half the price of regular packaged Sushi”
  21. 21. The era of pretotyping | Building the Right It, before Building It Right 21 CONFIDENTIAL RE-LABEL • Re-label an existing product • Explore new marketing claims • Start from a top-quality product
  22. 22. The era of pretotyping | Building the Right It, before Building It Right 22 CONFIDENTIAL DROPLIFTING • ‘Drop off’ your product in a store, wait to see if anyone tries to buy it • Tests marketing story & product look & feel (Ask for store permission)
  23. 23. The era of pretotyping | Building the Right It, before Building It Right 23 CONFIDENTIAL 3.2 The era of pretotyping has arrived 23 EXAMPLE: AB INBEV Freedom Bring the party home.. On tap! The future of flexible, convenient & mobile draft beer A portable draft tower called ‘Freedom’ -> Demonstration models developed -> Priced 10$ -15$ -35$ -> Droplifted at Walmart
  24. 24. The era of pretotyping | Building the Right It, before Building It Right 24 CONFIDENTIAL 3.2 The era of pretotyping has arrived 24 1. Describe your idea as concrete as possible • Market engagement hypothesis (MEH) • Say it with Numbers : XYZ Hypothesis • Hypozooming 2. Tactically design an agile validation plan • Tactic1: Think globally, test locally • Tactic2: Testing now, beats testing later • Tactic3: Think cheap, cheaper, cheapest • Tactic4: Tweak it & flip it before you quit it STEPS TO PRETO
  25. 25. The era of pretotyping | Building the Right It, before Building It Right 25 CONFIDENTIAL 3.2 The era of pretotyping has arrived 25 1. Describe your idea as concrete as possible • Market engagement hypothesis (MEH) • Say it with Numbers : XYZ Hypothesis • Hypozooming 2. Tactically design an agile validation plan • Tactic1: Think globally, test locally • Tactic2: Testing now, beats testing later • Tactic3: Think cheap, cheaper, cheapest • Tactic4: Tweak it & flip it before you quit it 3. Validate your assumptions with YODA > Skin in the game; Mechanical turk; drop lifting, landing page, relabeling, .. STEPS TO PRETO
  26. 26. The era of pretotyping | Building the Right It, before Building It Right 26 CONFIDENTIAL 3.2 The era of pretotyping has arrived 26 SKIN IN THE GAME ≠ if we build it, will you buy it? = if you buy it, we will build it
  27. 27. The era of pretotyping | Building the Right It, before Building It Right 27 CONFIDENTIAL 3.2 The era of pretotyping has arrived 27 EXAMPLE: HENKEL Somat Smart The smarter way of dishwashing “We’re not here for funding, but to reach backers who are willing to test limited edition Somat Smart devices at a special price. Feedback will help to understand if the communication resonates and if this technology truly makes life easier and more enjoyable as we get ready for a wider release”
  28. 28. The era of pretotyping | Building the Right It, before Building It Right 28 CONFIDENTIAL MECHANICAL TURK • Perform manually without any infrastructure in place • Simulate an automated process
  29. 29. The era of pretotyping | Building the Right It, before Building It Right 29 CONFIDENTIAL 3.2 The era of pretotyping has arrived 29 EXAMPLE: COCA COLA ‘the Glacier’ Instantaneous Cooling Via conceptual system redesign, we developed a novel open front cooler concept with lower energy consumption than a closed one, yet with the same sell-through ratio as an open-front cooler? Do people understand, trust & use an instantly cooled beverage? -> fake it during live demo’s -> test the perception before developing the technology
  30. 30. The era of pretotyping | Building the Right It, before Building It Right 30 CONFIDENTIAL LANDING PAGE • Test user interest and expectations before building anything • Use A/B testing for comparing alternatives
  31. 31. The era of pretotyping | Building the Right It, before Building It Right 31 CONFIDENTIAL 3.2 The era of pretotyping has arrived 31 EXAMPLE: P&G DS3Clean -> EC30 Mission to re-imagine clean for the planet After several years of development, and a lot of experiments to continue to improve, a group of inspired people came together to create a line of products we named after the location those ideas were created: DS3.
  32. 32. The era of pretotyping | Building the Right It, before Building It Right 32 CONFIDENTIAL 3.2 The era of pretotyping has arrived 32 PRETOTYPING VS PROTOTYPING TECHNOLOGY INNOVATION USER INNOVATION BUSINESS INNOVATION THE SWEET SPOT How much can we charge for it? Will people continue to use it? Are people interested in it? Do people use it as expected? PRETOTYPING Can we build it? How fast can we make it? Will it work as expected? How cheap can we build it? PROTOTYPING Can we sell it? How fast can we validate it?
  33. 33. The era of pretotyping | Building the Right It, before Building It Right 33 CONFIDENTIAL 3.2 The era of pretotyping has arrived 33 • Most companies know how to prototype a new product idea, .. But go in overdrive for the purpose of pretotyping : glossy & shiny, serve to benchmark against competing solutions..) .. But wait too long & spend too much • Let’s consider pretotypes as a design research tool, to get qualitative feedback on a testable hypothesis .. thus they serve another purpose: Need validation or feedback on the intented value proposition “ Early stage hypotheses should be validateable with €1000 and 48h” MY TWO CENTS ON PRETOTYPING..
  34. 34. The era of pretotyping | Building the Right It, before Building It Right 34 CONFIDENTIAL 3.2 The era of pretotyping has arrived 34 PRETOTYPING RECAP.. .. 1. Obey the Law of Market Failure 2. Make sure you’re building The Right It 3. Don’t get lost in Thoughtland 4. Trust only in Your Own Data (YODA) 5. Pretotype It 6. Say it with Numbers 7. Think global, Test local
  35. 35. The era of pretotyping | Building the Right It, before Building It Right 35 CONFIDENTIAL 3.2 The era of pretotyping has arrived 35 THANK YOU.. In particular Stijn Smet Mgt Consultant VERHAERT And of course Alberto Savoia Innovation Agitator www.albertosavoia.com Kevin Douven M: Kevin.douven@verhaert.com T: +32 485 573 193
  36. 36. The era of pretotyping | Building the Right It, before Building It Right 36 CONFIDENTIAL One group, five brands Our services are marketed through 5 brands each addressing specific missions in product development. INTEGRATED PRODUCT DEVELOPMENT ON-SITE PRODUCT DEVELOPMENT DIGITAL PRODUCT DEVELOPMENT OPTICAL PRODUCT DEVELOPMENT
  • YoungKwonLee

    May. 15, 2020

The key concept in any start-up? The freedom to experiment as basis for accelerated learning. Or like Pink Floyd sang in the 70’s: “We don’t need no education.” Is your FabLab ready for it?

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