Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
What to Upload to SlideShare
What to Upload to SlideShare
Loading in …3
×
1 of 104

Experiment Driven Product Innovation

4

Share

Download to read offline

Organizations need a way to test new ideas and fast, kill ideas that don’t work and iterate on the ones that show more promise. In 2017, IDEO studied innovation in over 100+ companies and found that when teams iterate on five or more different solutions, they are 50% more likely to launch a product or service successfully.

The practice of continuous product improvement and innovation is a cycle of experimentation, where teams rapidly test leap-of-faith assumptions and get evidence to support key business decisions, ultimately, helping to build consensus and collaborate more effectively with stakeholders.

A common challenge is having the discipline to identify, test and track progress towards innovation and making the cycle of experimentation and learning a key practice on any team.

Download the additional resources that are available for this presentation at https://info.adaptivex.ca/innovation-toolkit

More Related Content

You Might Also Like

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Experiment Driven Product Innovation

  1. 1. 1 Experiment-Driven Product Innovation : @adaptiveX : /adaptive-x
  2. 2. Introductions Principal advisor at adaptiveX, a boutique product design and innovation consultancy. Helping organizations build better products, faster, by using the latest in human- centered design, business strategy and agile methods. We also help teams embed these principles and practices into their way of working through training and development programs.: @withCarlosO ©AdaptiveX
  3. 3. Purpose The purpose of this workshop is to enable you to: • Learn about product innovation, how to identify, test, and track progress towards innovation • Learn ways to implement lean experimentation and learning as a key practice on Agile teams • Understand the guiding principles behind the experimentation mindset The intent is to get you to understand the process and try some of the techniques (so you can take them back to work). ©AdaptiveX
  4. 4. Workshop Agreements The following are some agreements for our workshop: Timeboxing No DevicesHands Up Questions ? ?? ©AdaptiveX
  5. 5. Creative destruction Since 2000, over 52% of Fortune 500 companies are gone ©AdaptiveX Sourced: David Bland – Lean Startup in the Enterprise
  6. 6. Business is changing ©AdaptiveX
  7. 7. Design is good for business Sourced: DMI.org ©AdaptiveX
  8. 8. Innovation failure 95% of new product or service launches fail every year. - Clayton Christensen ©AdaptiveX Sourced: https://www.inc.com/marc-emmer/95-percent-of-new-products-fail-here-are-6-steps-to-make-sure-yours-dont.html
  9. 9. What causes innovation to fail? 1. Not understanding your customers 2. Not iterating or refining your solution - Barry Cross – Author of Lean Innovation ©AdaptiveX
  10. 10. Slide Credit: Jake Knapp and John Zeratzky
  11. 11. Slide Credit: Jake Knapp and John Zeratzky
  12. 12. Slide Credit: Jake Knapp and John Zeratzky
  13. 13. Slide Credit: Jake Knapp and John Zeratzky
  14. 14. Slide Credit: Jake Knapp and John Zeratzky
  15. 15. Increases the likelihood of building the wrong thing Slide Credit: Jake Knapp and John Zeratzky
  16. 16. Slide Credit: Jake Knapp and John Zeratzky
  17. 17. Options+Iterations=Success ©AdaptiveX
  18. 18. Improveyourchancesofsuccess Howcanyoubemoreinnovativeand delivermorevalue,learnfromyour customerssoonerthanyour competition? Whilereducingtheuncertaintythat comesalongwiththat? ©AdaptiveX
  19. 19. TheLeanStartup “AStartupisahumaninstitution designedtocreateanewproductor serviceunderconditionsofextreme uncertainty!” -EricRies(AuthorofTheLeanStartup) ©AdaptiveX
  20. 20. It’s about learning Think big Start small Learn fast HighLow Project Time  Risk Value ©AdaptiveX
  21. 21. It’s about learning… Video Link ©AdaptiveX
  22. 22. Product Innovation Principles 1. Ignorance – you don’t know what you don’t know 2. Ask more questions – explore the problem and solution 3. Learn from failure – design experiments to disprove hypotheses ©AdaptiveX
  23. 23. What does experimentation and the scientific method look like? idea riskiest assumption generate learnings decide what to dobuild a test measure 1 2 3 4 5 ©AdaptiveX
  24. 24. ©AJ&Smart©AdaptiveX
  25. 25. “PracticeTrumpsTheory” AshMaurya
  26. 26. Form a group at your table • Form a group of 3 to 5 people. • Each table can only have a max of 2 groups. 30 SECONDS ©AdaptiveX
  27. 27. Assign Roles Person in the group whose birthday is next: Facilitator Person in the group whose birthday most recently passed: Decider 1 MINUTE ©AdaptiveX
  28. 28. “The Materials” ©AJ&Smart Everyone Must-Have  (1) Rectangular Post-It Notes (3x5)  (1) Sharpies / markers  A few small voting dots (red or other colour) Everyone Team-Have  (1) Set of experiment cards  A few larger blue dots 1 MINUTE
  29. 29. Let’sstartwithour challenge ©AdaptiveX
  30. 30. This is Richard! A fitness professional who is passionate about helping people live longer and healthier lives. ©AdaptiveX
  31. 31. ©AdaptiveX
  32. 32. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle ©AdaptiveX
  33. 33. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle
  34. 34. Long Term Vision • Helps to anchor the innovation in terms of our business goals • Super optimistic, in two years, what does the ideal world look like if your project was successful? ©AdaptiveX
  35. 35. Long Term Vision • Helps to anchor the innovation in terms of our business goals • Super optimistic, in two years, what does the ideal world look like if your project was successful? ©AdaptiveX
  36. 36. Idea • What is our product idea? • Who is our customer/user? • What problem does it solve? ©AdaptiveX
  37. 37. Idea • What is our product idea? • Who is our customer/user? • What problem does it solve? ©AdaptiveX
  38. 38. Metric • How do we know when we’ve achieved our goal? • What outcomes are we looking to achieve? • How can we measure those outcomes? ©AdaptiveX
  39. 39. Metric • How do we know when we’ve achieved our goal? • What outcomes are we looking to achieve? • How can we measure those outcomes? ©AdaptiveX
  40. 40. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle ©AdaptiveX
  41. 41. What things could stop us from achieving our long term goal? (super pessimistic) ©AdaptiveX
  42. 42. Riskiest Assumptions Start Here (Does anyone care?) DESIRABLE Do people need and want it? FEASIBLE Do we have the technical means? VIABLE Is it right for our business ©AdaptiveX
  43. 43. Case ©AdaptiveX
  44. 44. Learning Goals • Helps us focus on the most important learning • Provides orientation towards our outcomes • Aligns on risky assumptions (desirability/feasibility/viability) ©AdaptiveX
  45. 45. WE WILL FAIL IF… “People don’t trust our product” Example ©AdaptiveX
  46. 46. Exercise: “Assumptions” 1. Individually (in silence) take the rectangular post-its ©AdaptiveX
  47. 47. Exercise: “Assumptions” 1. Individually (in silence) take the rectangular post-its 2. Think of 2-3 assumptions that you think exist with this idea ©AdaptiveX
  48. 48. Exercise: “Assumptions” 1. Individually (in silence) take the rectangular post-its 2. Think of 2-3 assumptions that you think exist with this idea 3. Convert these assumptions into questions (one per post- it) 2 MINUTES ©AdaptiveX
  49. 49. Now we find the top 3 questions ©AdaptiveX
  50. 50. Exercise: “Assumptions” 1. One person at a time ©AdaptiveX
  51. 51. Exercise: “Assumptions” 1. One person at a time 2. Stick your post-its on the table ©AdaptiveX
  52. 52. Exercise: “Assumptions” 1. One person at a time 2. Stick your post-its on the table 3. And read them out loud to your team. ©AdaptiveX
  53. 53. Exercise: “Assumptions” 1. One person at a time 2. Stick your post-its on the table 3. And read them out loud to your team. 4. Remove any duplicates. 3 MINUTE ©AdaptiveX
  54. 54. Exercise: “Vote” 1. Everyone, except the decider takes 2 dots ©AdaptiveX
  55. 55. Exercise: “Vote” 1. Everyone, except the decider takes 2 dots 2. Vote for the questions you think are most critical to answer that are also the most unknown (no evidence) (hint: look for the desirability ) 1 MINUTE ©AdaptiveX
  56. 56. Exercise: “Decision” 1. Decider takes one large dot ©AdaptiveX
  57. 57. Exercise: “Decision” 1. Decider takes one large dot 2. Chooses the question THEY think are the most important to answer first 1 MINUTE ©AdaptiveX
  58. 58. Assumptions/questions, make excellent “sprint questions” and learning goals! ©AdaptiveX
  59. 59. “Lifeistooshorttowork onsomethingnobody wants” AshMaurya ©AdaptiveX
  60. 60. Let’stakea15minute break ©AdaptiveX
  61. 61. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle ©AdaptiveX
  62. 62. Types of Experiments • Help us to capture the maximum amount of truth about an idea • Tests different assumptions of desirability, feasibility, and viability • We only scale based on evidence ©AdaptiveX Sourced: Grace Ng
  63. 63. Speed vs. Truth Sourced: Strategyzer Evidence Map
  64. 64. Now we find the top 3 experiment ideas ©AdaptiveX
  65. 65. Exercise: “Experiment Cards” 1. Facilitator picks up the experiment cards ©AdaptiveX
  66. 66. Exercise: “Experiment Cards” 1. Facilitator picks up the experiment cards 2. Spread out the cards on the table ©AdaptiveX
  67. 67. Exercise: “Experiment Cards” 1. Facilitator picks up the experiment cards 2. Spread out the cards on the table 3. Facilitator reads them out loud to your team. 5 MINUTES ©AdaptiveX
  68. 68. Exercise: “Vote” 1. Everyone, except the decider takes 2 dots ©AdaptiveX
  69. 69. Exercise: “Vote” 1. Everyone, except the decider takes 2 dots 2. Vote for the experiments you think are the fastest to get data towards your question 2 MINUTE ©AdaptiveX
  70. 70. Exercise: “Decision” 1. Decider takes one large dot ©AdaptiveX
  71. 71. Exercise: “Decision” 1. Decider takes one large dot 2. Chooses the experiment THEY think is the most appropriate to run first 1 MINUTE ©AdaptiveX
  72. 72. Experiment Card Key Question? Experiment Method Hypothesis / Metric ©AdaptiveX
  73. 73. Exercise: “Design an Experiment” 1. Facilitator takes a “blank learning card template” ©AdaptiveX
  74. 74. Exercise: “Design an Experiment” 1. Facilitator takes a “blank learning card template” 2. Facilitator works with the team to fill in the card details based on chosen experiment 6 MINUTE ©AdaptiveX
  75. 75. Let’stakeaminuteto presentsome experiments ©AdaptiveX
  76. 76. High fives all around! 🙌🙌 🙏🙏 👏👏 ©AdaptiveX
  77. 77. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle ©AdaptiveX
  78. 78. Experiment Retrospective Sourced: Jeff Patton • What were the results of the experiment? • What did you believe that you no longer believe? • What did you learn that you didn’t know before? • What decision will you make based on these results? ©AdaptiveX
  79. 79. Making Better Decisions 1. Pivot – you change a key dimension of your idea, problem, or user 2. Persevere – you move to your next riskiest assumption 3. Pull the Plug – you kill the initiative ©AdaptiveX
  80. 80. When to run experiments ©AdaptiveX  At the beginning of a complex initiative  When new uncertain and complex scope has entered your backlog  When the problem is difficult and the outcome is uncertain
  81. 81. When to run experiments ClientRequirements Technology / Infrastructure Unknown UnknownKnown Known Experiments User Stories Spikes ©AdaptiveX
  82. 82. 1. Vision + Idea + Metric 2. Learning Goals (Assumptions) 3. Designing Experiments 4. Making Decisions 5. Continuous Innovation (Kata) Product Innovation & The Experimentation Cycle ©AdaptiveX
  83. 83. Avoid opinion-based prioritization 1. Use experimentation to explore opportunities 2. Put data at the heart of your process 3. Spread the culture of data and sharing of information throughout your organization Sourced: Tamzin Taylor – How to avoid opinion-based product prioritization ©AdaptiveX
  84. 84. The Product Kata Sourced: • Mellisa Perri – Escaping the Build Trap • Mike Rother – Toyota Kata ©AdaptiveX
  85. 85. Richard’s Magic Jacket Example
  86. 86. Richard’s Magic Jacket Example Step 1: ©AdaptiveX
  87. 87. Richard’s Magic Jacket Example North Star Metric More than 80% of user base will wear our product three or more times per week Step 1: ©AdaptiveX
  88. 88. Customer Richard’s Magic Jacket Example User Reduce Back Pain User’s objective North Star Metric More than 80% of user base will wear our product three or more times per week Step 2: ©AdaptiveX
  89. 89. Customer Has clean clothes Steps in the journey (headings help) Discover Learn Use Reduce Back Pain Richard’s Magic Jacket Example User User’s objective North Star Metric More than 80% of user base will wear our product three or more times per week Step 2: ©AdaptiveX
  90. 90. Customer Has clean clothes Google Referral Fb Advert User Steps in the journey (headings help) Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain User’s objective Step 2: North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  91. 91. Customer Has clean clothes Google Referral Fb Advert Marketing Page Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Steps in the journey (headings help)User User’s objective Step 2: North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  92. 92. Customer Has clean clothes Google Referral Fb Advert Marketing Page Discover Learn Use Richard’s Magic Jacket Example Reduce Back PainRequest Trial Offer Steps in the journey (headings help)User User’s objective Step 2: North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  93. 93. Customer Has clean clothes Google Referral Fb Advert Marketing Page Get Jacket and Wear It Discover Learn Use Richard’s Magic Jacket Example Reduce Back PainRequest Trial Offer Richard Steps in the journey (headings help)User User’s objective Step 2: North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  94. 94. Customer Has clean clothes Google Referral Fb Advert Marketing Page Wear it for a month Richard Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Get Jacket and Wear It Request Trial Offer Steps in the journey (headings help)User User’s objective Step 2: North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  95. 95. Customer Has clean clothes Google Referral Fb Advert Marketing Page Wear it for a month Richard Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Get Jacket and Wear It Request Trial Offer Steps in the journey (headings help)User User’s objective Step 3: Awareness to Registration Conversion Rate North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  96. 96. Customer Has clean clothes Google Referral Fb Advert Marketing Page Wear it for a month Richard Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Get Jacket and Wear It Request Trial Offer Steps in the journey (headings help)User User’s objective Step 3: Registration to Activation Conversion Rate North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  97. 97. Customer Has clean clothes Google Referral Fb Advert Marketing Page Wear it for a month Richard Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Get Jacket and Wear It Request Trial Offer Steps in the journey (headings help)User User’s objective Step 3: Activation to Retention Conversion Rate North Star Metric More than 80% of user base will wear our product three or more times per week ©AdaptiveX
  98. 98. Customer Has clean clothes Google Referral Fb Advert Marketing Page Wear it for a month Richard Discover Learn Use Richard’s Magic Jacket Example Reduce Back Pain Get Jacket and Wear It Request Trial Offer Steps in the journey (headings help)User User’s objective Step 3: North Star Metric More than 80% of user base will wear our product three or more times per week 2% improvement increased the overall jacket worn count by 100% ©AdaptiveX
  99. 99. ©AdaptiveX 50% of Users dropping off page 1 More people converting during reg. Increase conversion by (5%^) Jackets Worn Per Week Why are people dropping off this point? Talk to people, find most common reasons We come away with a list of reasons Richard’s Magic Jacket Interview users Observe users Data Mining Office Workers Back pain due to poor posture 35% of people interviewed don’t trust technology HMW get people to trust tech If We Add Testimonials Then People will Convert Improvement of 5% conversion Lack of trust
  100. 100. In Closing ©AdaptiveX  Experimentation is a process to help teams explore opportunities  Testing ideas and getting real data is at the heart of the process  Align team members across product decisions and prioritize based on evidence and data
  101. 101. Questions? Comments? ©AdaptiveX  What new information did you learn?  What questions do you still have?  What ideas would you like to try?
  102. 102. Get in touch any time! : carlos@adaptivex.ca : 1+647-204-0647 : www.adaptiveX.ca : @adaptiveX : /adaptive-x
  103. 103. Design Sprint Training http://bit.ly/sprint-agileTO
  104. 104. Slides and Stories: • David Bland – Testing Business Ideas • Melissa Perri – Escaping the Build Trap • Barry Cross – Lean Innovation • Tamzin Taylor – Avoid Opinion-Based Product Prioritization • Tristan Kromer – Experiment Design Templates Slide Designs and Format: • AJ&Smart • Jake Knapp and John Zeratsky

×