Copyright 2014 Cowan Publishing
Systematic

Innovation"


Creating Better
Products and
Ventures
Copyright 2014 Cowan Publishing
ALEX COWAN"
AlexanderCowan.com!
@cowanSF
ABOUT ME
Entrepreneur (5x)"
Intrapreneur (1x)
Copyright 2014 Cowan Publishing
ALEX COWAN"
AlexanderCowan.com!
@cowanSF
ABOUT ME
Copyright 2014 Cowan Publishing
ALEX COWAN"
AlexanderCowan.com!
@cowanSF
WHAT DRIVES VALUE HAS CHANGED
Then Now
Copyright 2014 Cowan Publishing
ALEX COWAN"
AlexanderCowan.com!
@cowanSF
THE ARITHMETIC IS THE SAME
Profit"
Revenue"
Tighte...
Copyright 2014 Cowan Publishing
THE MIX OF BUSINESS TYPES HAS CHANGED
Infrastructure-Driven
UTILITIES TELECOM COMMODITIES
...
Copyright 2014 Cowan Publishing
OLD SCHOOL VS. NEW SCHOOL
How it
was done
How to 

do it
$ !?
! ? ? ? ?
Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing
≠
ORGANIZATION
Copyright 2014 Cowan Publishing
OLD SCHOOL VS. NEW SCHOOL
Output != Outcome
(not equal to)
Learning != Scaling
(not equal ...
copyright 2014 Cowan Publishing
FULL CIRCLE
THINK SEE
FEEL DO
PERSONAS
Who?
X
PROBLEM!
SCENARIOS &
ALTERNATIVES
What?
VALU...
Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing
IDEATION
Self-Love
Then
Design
Thinking
Now
Copyright 2014 Cowan Publishing
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
DISCOVERY: PERSONAS
Copyright 2014 Cowan Publishing
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
DISCOVERY: PERSONAS
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
PROBLEM SCENARIO
X
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
PROBLEM SCENARIO
X
W...
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
ALTERNATIVE(S)
?
PRO...
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
ALTERNATIVE(S)
?
PRO...
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
YOUR VALUE PROPOSITI...
Copyright 2014 Cowan Publishing
DISCOVERY: PROBLEM SCENARIOS
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
YOUR VALUE PROPOSITI...
Copyright 2014 Cowan Publishing
… and they have a certain
PROBLEMS(S) …
… where they’re currently using
certain ALTERNATIV...
Copyright 2014 Cowan Publishing
NOT A GOOD PERSONA
• Women!
• Age 28-45!
• Has kids!
• Socialize with other mom’s!
• Onlin...
Copyright 2014 Cowan Publishing
• Women!
• Age 28-45!
• Has kids!
• Socialize with other mom’s!
• Online with Facebook!
• ...
Copyright 2014 Cowan Publishing
A BETTER PERSONA
Mary is a mom by choice. She had a successful career in accounting,
but w...
Copyright 2014 Cowan Publishing
A BETTER PERSONA
the use of a first name helps
w/ vividness (a little)
these full sentences...
Copyright 2014 Cowan Publishing
A LITTLE GAME FOR BETTER PERSONA DISCOVERY
Day in the Life
we look at a few photos for a g...
Copyright 2014 Cowan Publishing
OUR CAST
Sally the 

Single Mom
Copyright 2014 Cowan Publishing
WAKE UP!
Copyright 2014 Cowan Publishing
WAKE UP!
Copyright 2014 Cowan Publishing
GEARING UP FOR THE DAY
Copyright 2014 Cowan Publishing
AT WORK
Copyright 2014 Cowan Publishing
AFTER WORK
Copyright 2014 Cowan Publishing
PRE-BED
Copyright 2014 Cowan Publishing
BED
Copyright 2014 Cowan Publishing
GEAR
Copyright 2014 Cowan Publishing
IF I HAD 3 EXTRA HOURS…
Copyright 2014 Cowan Publishing
ABOUT SALLY THE SINGLE MOM…
What’s her favorite kind of music?!
Band/composer?!
Where did ...
Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing
PLANNING
!5,000,000%
0%
5,000,000%
10,000,000%
15,000,000%
...
Copyright 2014 Cowan Publishing
EXPERIMENTATION & VALIDATION
Do I have real evidence from my buyer
that this is compelling...
Copyright 2014 Cowan Publishing
ASSUMPTIONS
Priority Key Assumption Needs Proving? Experimentation
1
[A key assumption abo...
Copyright 2014 Cowan Publishing
FOCUS AND THE LEAN STARTUP
Crossing t’s

Dotting i’s

Doesn’t matter unless it
helps prove...
Copyright 2014 Cowan Publishing
FOCUS AND THE LEAN STARTUP
Subject 

all your
activities +
metrics to
that litmus
test.

Copyright 2014 Cowan Publishing
CASE STUDY #1: DROPBOX
Startup looking to fund a better file sharing
product. !
!
Many exis...
Copyright 2014 Cowan Publishing
CASE STUDY #1: DROPBOX
Persona
Tom the Techie- early adopter who works on projects that re...
Copyright 2014 Cowan Publishing
DROPBOX MVP & EXPERIMENTATION
Result: Excellent traction and
conversion to sign-up’s. Stro...
Copyright 2014 Cowan Publishing
CASE STUDY #2: ZAPPOS
In the beginning, just a guy with an idea to
sell shoes online. !
!
...
Copyright 2014 Cowan Publishing
CASE STUDY #2: ZAPPOS
Persona Sam the shoe-hound- knows what he wants but not where to get...
Copyright 2014 Cowan Publishing
CASE STUDY #2: ZAPPOS
Result: It worked and the rest
is history.
Photographed shoes and pu...
Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing
DEVELOPMENT
Waterfall
Then
Agile
Now
Copyright 2014 Cowan Publishing
AGILE & THE BEAUTY OF SMALL BATCHES
PERSONAS
PROBLEM SCENARIOS
STORIES
Epic Stories
Storie...
Copyright 2014 Cowan Publishing
AGILE & THE BEAUTY OF SMALL BATCHES
Copyright 2014 Cowan Publishing
STAY ON PLAN AND HAVE A BUSINESS MODEL
This work is licensed under the Creative Commons At...
Copyright 2014 Cowan Publishing
FULL CIRCLE
!
PRODUCT &
PROMOTION
USER
STORIES &
PROTOTYPES
Did the implementation
deliver...
Copyright 2014 Cowan Publishing
Foundation in
Design Thinking
Product &
Promotion
User Stories &
Test Cases
Business Model...
Copyright 2014 Cowan Publishing
acowan@alexandercowan.com
@cowanSF
www.alexandercowan.com/venture-design
www.alexandercowa...
Copyright 2014 Cowan Publishing
IMAGE CREDITS
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Systematic Innovation

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Systematic Innovation

  1. 1. Copyright 2014 Cowan Publishing Systematic
 Innovation" 
 Creating Better Products and Ventures
  2. 2. Copyright 2014 Cowan Publishing ALEX COWAN" AlexanderCowan.com! @cowanSF ABOUT ME Entrepreneur (5x)" Intrapreneur (1x)
  3. 3. Copyright 2014 Cowan Publishing ALEX COWAN" AlexanderCowan.com! @cowanSF ABOUT ME
  4. 4. Copyright 2014 Cowan Publishing ALEX COWAN" AlexanderCowan.com! @cowanSF WHAT DRIVES VALUE HAS CHANGED Then Now
  5. 5. Copyright 2014 Cowan Publishing ALEX COWAN" AlexanderCowan.com! @cowanSF THE ARITHMETIC IS THE SAME Profit" Revenue" Tighter Proposition (website, pres., etc.) Finite Cost Finite Deliverables Increased Use of Channels Ease of Entry Easy to See What's on MenuUpsell Intellectual Property Multipliers Tighter Talent Definition Simpler Training, Eval., Promotion Cost of DeliveryCost" Less Consultative Selling Simplified Contracting Cost of Sales Standard Project Management Comparable Post Mortems Engagement! Management (example: product-driven consulting)
  6. 6. Copyright 2014 Cowan Publishing THE MIX OF BUSINESS TYPES HAS CHANGED Infrastructure-Driven UTILITIES TELECOM COMMODITIES Scope-Driven RETAIL BANKING CORP. LAW Product-Driven PACKAGED GOODS APP. SOFTWARE MEDIA
  7. 7. Copyright 2014 Cowan Publishing OLD SCHOOL VS. NEW SCHOOL How it was done How to 
 do it $ !? ! ? ? ? ?
  8. 8. Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing ≠ ORGANIZATION
  9. 9. Copyright 2014 Cowan Publishing OLD SCHOOL VS. NEW SCHOOL Output != Outcome (not equal to) Learning != Scaling (not equal to)
  10. 10. copyright 2014 Cowan Publishing FULL CIRCLE THINK SEE FEEL DO PERSONAS Who? X PROBLEM! SCENARIOS & ALTERNATIVES What? VALUE PROPOSITIONS 
 & ASSUMPTIONS What if? ! USER STORIES & PROTOTYPES How? Scale? Pivot? PRODUCT & PROMOTION / CUSTOMER DISCOVERY 
 & EXPERIMENT Tell me…?
  11. 11. Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing IDEATION Self-Love Then Design Thinking Now
  12. 12. Copyright 2014 Cowan Publishing ALEX COWAN! AlexanderCowan.com! @cowanSF DISCOVERY: PERSONAS
  13. 13. Copyright 2014 Cowan Publishing ALEX COWAN! AlexanderCowan.com! @cowanSF DISCOVERY: PERSONAS
  14. 14. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF
  15. 15. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF PROBLEM SCENARIO X
  16. 16. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF PROBLEM SCENARIO X What job(s) are you doing for the customer? What existing need or behavior are you fulfilling?
  17. 17. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF ALTERNATIVE(S) ? PROBLEM SCENARIO X
  18. 18. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF ALTERNATIVE(S) ? PROBLEM SCENARIO X If they currently use spreadsheets, watch them use it and get a copy of it. If they currently put notes on the family fridge, ask about it, photograph it.
  19. 19. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF YOUR VALUE PROPOSITIONS ! ALTERNATIVE(S) ? PROBLEM SCENARIO X
  20. 20. Copyright 2014 Cowan Publishing DISCOVERY: PROBLEM SCENARIOS ALEX COWAN! AlexanderCowan.com! @cowanSF YOUR VALUE PROPOSITIONS ! ALTERNATIVE(S) ? PROBLEM SCENARIO X Are they better enough than the alternative(s)?
  21. 21. Copyright 2014 Cowan Publishing … and they have a certain PROBLEMS(S) … … where they’re currently using certain ALTERNATIVE(S) … … and I have a VALUE PROPOSITION that’s better enough than the alternatives to cause the persona to act (purchase, use, etc.). A certain PERSONA exists… PERSONAS: READY FOR VALIDATION ! ? X
  22. 22. Copyright 2014 Cowan Publishing NOT A GOOD PERSONA • Women! • Age 28-45! • Has kids! • Socialize with other mom’s! • Online with Facebook! • 86% said they’d like to be more organized! • 70% said they’d use an application that organizes them
  23. 23. Copyright 2014 Cowan Publishing • Women! • Age 28-45! • Has kids! • Socialize with other mom’s! • Online with Facebook! • 86% said they’d like to be more organized! • 70% said they’d use an application that organizes them NOT A GOOD PERSONA Bullet points are almost never vivid or detailed Stock photo- not real This is a huge population- not exact These responses are ‘fake actionable’- survey responses like this are unreliable
  24. 24. Copyright 2014 Cowan Publishing A BETTER PERSONA Mary is a mom by choice. She had a successful career in accounting, but welcomed the opportunity to be a stay at home mom. She loves it. But it’s not like having kids purged her creative, social instincts. She wants to connect, she wants to learn, she wants to interact. Being a mom is a job and she wants to do it well. That means corresponding with other mom’s on child education and keeping track of what works. She posts to Facebook at least twice a week and responds to other moms’ items more often than that. ! She has a few blogs and publications she reads regularly… Mary the Mom
  25. 25. Copyright 2014 Cowan Publishing A BETTER PERSONA the use of a first name helps w/ vividness (a little) these full sentences look like a good start towards something vivid and detailed the Facebook behavior is a cue on identification this is a real photo of a relevant person taken with an iPhone in the real world Mary is a mom by choice. She had a successful career in accounting, but welcomed the opportunity to be a stay at home mom. She loves it. But it’s not like having kids purged her creative, social instincts. She wants to connect, she wants to learn, she wants to interact. Being a mom is a job and she wants to do it well. That means corresponding with other mom’s on child education and keeping track of what works. She posts to Facebook at least twice a week and responds to other moms’ items more often than that. ! She has a few blogs and publications she reads regularly… Mary the Mom
  26. 26. Copyright 2014 Cowan Publishing A LITTLE GAME FOR BETTER PERSONA DISCOVERY Day in the Life we look at a few photos for a given persona you make some guesses about them there are no right answers BUT! there is a right process: observe and infer OBJECTIVE: get a feel for what’s real; start to create something vivid (not a full picture, just snippets)
  27. 27. Copyright 2014 Cowan Publishing OUR CAST Sally the 
 Single Mom
  28. 28. Copyright 2014 Cowan Publishing WAKE UP!
  29. 29. Copyright 2014 Cowan Publishing WAKE UP!
  30. 30. Copyright 2014 Cowan Publishing GEARING UP FOR THE DAY
  31. 31. Copyright 2014 Cowan Publishing AT WORK
  32. 32. Copyright 2014 Cowan Publishing AFTER WORK
  33. 33. Copyright 2014 Cowan Publishing PRE-BED
  34. 34. Copyright 2014 Cowan Publishing BED
  35. 35. Copyright 2014 Cowan Publishing GEAR
  36. 36. Copyright 2014 Cowan Publishing IF I HAD 3 EXTRA HOURS…
  37. 37. Copyright 2014 Cowan Publishing ABOUT SALLY THE SINGLE MOM… What’s her favorite kind of music?! Band/composer?! Where did she buy their last pair of shoes?! What movie did she last see?! What did she drink with dinner last night?! If she had a dog, what kind?! What’s her favorite magazine?
  38. 38. Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing PLANNING !5,000,000% 0% 5,000,000% 10,000,000% 15,000,000% 20,000,000% 25,000,000% 30,000,000% 35,000,000% 40,000,000% 45,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% Revenue% Expense% EBITDA% Five Year Plan Then Iterative Management Now
  39. 39. Copyright 2014 Cowan Publishing EXPERIMENTATION & VALIDATION Do I have real evidence from my buyer that this is compelling? 01 IDEA! What are the key assumptions required to make this business work? 02 HYPOTHESIS How do I definitely prove or disprove the assumptions with a minimum of time and effort? 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATIONAm I reacting or am I focused on validating my pivotal assumptions? ‘Pivot or persevere?’
  40. 40. Copyright 2014 Cowan Publishing ASSUMPTIONS Priority Key Assumption Needs Proving? Experimentation 1 [A key assumption about the business] [Whether it needs proving! [Experiment to ! prove or disprove] 1 Parents want to organize the distribution of allowances with an app Yes * Post the proposition in ads
 online! * Measure sign-up’s on a landing page
 2 Parents want to link allowances to chores Yes * Show prototypes with choices
 * Test in beta 2 Parents have smart phones No n/a Focus on strategic, pivotal assumptions

  41. 41. Copyright 2014 Cowan Publishing FOCUS AND THE LEAN STARTUP Crossing t’s
 Dotting i’s
 Doesn’t matter unless it helps prove (or disprove) your pivotal assumptions

  42. 42. Copyright 2014 Cowan Publishing FOCUS AND THE LEAN STARTUP Subject 
 all your activities + metrics to that litmus test.

  43. 43. Copyright 2014 Cowan Publishing CASE STUDY #1: DROPBOX Startup looking to fund a better file sharing product. ! ! Many existing direct competitors but few have traction. ! ! Fairly involved cross-platform product development project - substantial time and money required.! ! Youch.
  44. 44. Copyright 2014 Cowan Publishing CASE STUDY #1: DROPBOX Persona Tom the Techie- early adopter who works on projects that require swapping a lot of files between a shifting network of collaborators. Problem Scenario It’s difficult to share files between a network of collaborators, particularly if they’re: big or numerous or change a lot. Alternatives Many existing products, but none of them super compelling and widely adopted.! Also, custom setup’s which work but are cumbersome to set up and maintain. Value Prop. A file sharing service that truly feels transparent to the user across all major platforms- OSX, iOS, Windows, etc. What MVP? ! ! That you can bootstrap?! ! That doesn’t require software at all?
  45. 45. Copyright 2014 Cowan Publishing DROPBOX MVP & EXPERIMENTATION Result: Excellent traction and conversion to sign-up’s. Strong validation signal. Create a ‘Wizard of Oz’ demo tailored for early market (techies) and measure sign- up’s.
  46. 46. Copyright 2014 Cowan Publishing CASE STUDY #2: ZAPPOS In the beginning, just a guy with an idea to sell shoes online. ! ! At the time, online retail still nascent. !
  47. 47. Copyright 2014 Cowan Publishing CASE STUDY #2: ZAPPOS Persona Sam the shoe-hound- knows what he wants but not where to get it. Problem Scenario Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated. Alternatives Possibly mail order or wait until he’s in a bigger market to go to the store. Value Prop. Make the shoe Sam wants accessible online and make sure he has a great experience so he’ll come back and not have to think about where to find the shoe he wants anymore. What MVP? ! ! That you can bootstrap?! ! That doesn’t require software at all?
  48. 48. Copyright 2014 Cowan Publishing CASE STUDY #2: ZAPPOS Result: It worked and the rest is history. Photographed shoes and put them online to observe whether anyone bought them.
  49. 49. Copyright 2014 Cowan PublishingCopyright 2012 Cowan Publishing DEVELOPMENT Waterfall Then Agile Now
  50. 50. Copyright 2014 Cowan Publishing AGILE & THE BEAUTY OF SMALL BATCHES PERSONAS PROBLEM SCENARIOS STORIES Epic Stories Stories Test Cases “As a [persona], I want to [do something] so that I can [derive a benefit]”
  51. 51. Copyright 2014 Cowan Publishing AGILE & THE BEAUTY OF SMALL BATCHES
  52. 52. Copyright 2014 Cowan Publishing STAY ON PLAN AND HAVE A BUSINESS MODEL This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. (Cost Structure) (Key Partners) (Key Activities) (Key Resources) (Revenue Streams) (Customer Relationships) (Channels) (Value Propositions) (Customer Segments)
  53. 53. Copyright 2014 Cowan Publishing FULL CIRCLE ! PRODUCT & PROMOTION USER STORIES & PROTOTYPES Did the implementation deliver on the story? / CUSTOMER DISCOVERY 
 & EXPERIMENT How did the customer/user react? VALUE PROPOSITIONS 
 & ASSUMPTIONS ! Was the implemented story relevant to the proposition? X PROBLEM! SCENARIOS & ALTERNATIVES Is problem relevant? Is the proposition better vs. alternatives? THINK SEE FEEL DO PERSONAS Do we understand this person? What makes them tick?
  54. 54. Copyright 2014 Cowan Publishing Foundation in Design Thinking Product & Promotion User Stories & Test Cases Business Model Canvas ExperimentLearn Hypothesize Lean Startup- Style Assumptions VENTURE DESIGN
  55. 55. Copyright 2014 Cowan Publishing acowan@alexandercowan.com @cowanSF www.alexandercowan.com/venture-design www.alexandercowan.com www.alexandercowan.com/startup-sprints
  56. 56. Copyright 2014 Cowan Publishing IMAGE CREDITS [ADD]

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