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Copyright 2012 Cowan Publishing
Customer
Discovery
Hacks
Comm 4460
‘Entrepreneurship’
at UVA
Copyright 2012 Cowan Publishing
Copyright 2012 Cowan Publishing
Copyright 2012 Cowan Publishing
Design Thinking
Lean Startup
Customer Dev.
Agile
} BIG VOID
{ Actual Practice
to learn
more about
launching
new ideas
KNOWLEDGE
of software
development
not assumed
ACTION
to work on
new ideas
DESIRE
Copyright 2012 Cowan Publishing
IDEATION
PLANNING
ORGANIZATION
DEVELOPMENT
Copyright 2012 Cowan Publishing
IDEATION
Self-Love
And Then
Survival
Back Then
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
IDEATION
Self-Love
And Then
Design
Thinking
And Now
Survival
Back Then
Copyright 2012 Cowan Publishing
DESIGN THINKING- WHAT IS
DESIGN
THINKING
CUSTOMER
DISCOVERY
CUSTOMER
VALIDATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Empathy
DESIGN THINKING- WHAT IS
Creativity
Copyright 2012 Cowan Publishing
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Entry1
Urinate as they go2
Edges preferred3
Speedy4
PB > cheese5
Empathy
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Check & Repair
UV Validation
Relevant Placement
A Better Mouse Trap
Powered by Better Bait
Creativity
1
2
3
4
5
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
IDEATION
Personas
Problem
Scenarios
?
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
•Women
•Age 28-45
•Have 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
IDEATION
Copyright 2012 Cowan Publishing
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
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
relevant topics and keeping the family calendar in
ship shape. She posts to Facebook at least twice a
week and responds to other moms’ items more often
than that.
For household stuff, Costco is the go-to place, but
she’ll pick up fresh items at the farmer’s market when
it’s up and splurge at Whole Foods when they’re
having company.
Mary the Mom
IDEATION
Copyright 2012 Cowan Publishing
IDEATION
Copyright 2012 Cowan Publishing
IDEATION
Personas
User
Stories
Problem
Scenarios
?
Copyright 2012 Cowan Publishing
Drafting
Stories
PERSONAS
STORIES
Epic Stories
Stories
Test Cases
“As a [persona],
I want to [do something]
so that I can [derive a benefit]”
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
BorrowedwithutmostregardfromBanksy(banksy.co.uk)
IDEATION
Copyright 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
6.a PIVOT
experiments
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 PIVOT OR PERSEVERE?
6.b PERSEVERE
experiments prove
hypothesis
ALEX COWAN
AlexanderCowan.com
@cowanSF
!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%
Copyright 2012 Cowan Publishing
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
PLANNINGPLANNING
Do I have real evidence from my buyer that
this is compelling?
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
What are the key assumptions
required to make this business work?
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
How do I definitely prove or disprove
the assumptions with a minimum of
time and effort?
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
Am I reacting or am I focused on
validating my pivotal assumptions?
‘Pivot or persevere?’
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
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 better
organize the distribution
of allowances
Yes
* Post the proposition in ads
online
* Measure sign-up’s on a landing
page
2
Parents have smart
phones
No n/a
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
PLANNING
Copyright 2012 Cowan Publishing
$
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
ORGANIZATION
==
Aping
Then
Customer
Development
Now
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
≠
ORGANIZATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
ORGANIZATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Big Company
Recipes Applied
Copyright 2012 Cowan Publishing
5 Year Plan ==
10x Returns!
X: < Odds at Lotto
VC-Encouraged
Menagerie
X: Too much
too soon
X: Lack of Experience
in Hands-on Discovery
X: Better Luck with
the Lottery
Time to Face the Music
X: New Theories to
Explain Plan v. Actual
X: Fun and Profit-
Unlikely
ORGANIZATION
++
New Idea!
Expanded Team
Revisions to Plan
== Edgy Board
X: Want Lots of
Capital at Work
It Works! Working 5 Year Plan
New HiresFounders Investors Board
ALEX COWAN
AlexanderCowan.com
@cowanSF
Investors?
Advisors?
Focus on Validated
Learning
Copyright 2012 Cowan Publishing
Key Assumptions
ID’ed, Validated
Lower Risk &
Capital Requirement
Resources
As Needed
Clear Focus in
Hiring & Contracting
Roles and Success
Criteria Clear
Progress is Quick
and Measurable
Time to Face
the Music
Validated Learning
Answers Shared
Questions
Fun & Profit
ORGANIZATION
++
New Idea!
Full Tilt at a ‘Pivot or
Persevere’ Moment
Is approach
working or not?
Option for
Non-Traditional
Funding Strategies
Expanded TeamNew HiresFounders Investors Board
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
DEVELOPMENT
Waterfall
Then
Agile
Now
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Individuals
Interactions
>
Processes
Tools
Working
software
Comprehensive
Documentation
>
Customer
collaboration
Contract
negotiation
>
Responding
to change
Following
a plan
>
DEVELOPMENT
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
DEVELOPMENT
validate feature
relevance with
customers
Past
collaborate with
development
team
Present
observe and
envision what’s
next
Future
Copyright 2012 Cowan Publishing
DESIGN
THINKING
LEAN
STARTUP
CUSTOMER
DEV.
AGILE
personas
problem scenarios
user stories
hypothesis
(assumptions)
experimental design
roles & team
objectives
working product
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
2007 went out on my own
2008
profitable,
productized
consulting business
2010 software business
2011 scaling!
2013 keep learning,
keep innovating
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
A LEAN PROGRESSION
CONSULTING PRODUCTS
Validated problem
scenarios with
substantial detail
‘PRODUCTIZED’
CONSULTING
Customer empathy-
more scope, detail on
problem scenarios
Copyright 2012 Cowan Publishing
UNDERSTANDING THE MARKET
50-70% of
Enterprise
Software
Implementations
Fail ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
How do we do this
more efficiently? Are
we implementing best
practices?
How do we improve
service quality? How
do we verify that?
Copyright 2012 Cowan Publishing
IDEATION
Help me integrate and
standardize the
infrastructure. And show
my people how to use it.
Creating accounts is
taking a lot of time/
money. And there are a
lot of mistakes.
SERVICE
STANDARDIZATION
& WORKFLOW
SERVICE
DESIGN
PROCESS
AUDIT,
DESIGN
NETWORK
PRINCIPALS
OF OPERATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
USER STORIES
“As a receptionist, I want to receive an out
of the box set up that’s created against
best practices so I don’t have to set it all
up by myself.”
“As a receptionist, I want to change the
buttons on my phone so they do what I
want.”
PROBLEM SCENARIO
‘I want a good out-of-the-box experience.
And to change the display on my phone.’
PERSONA
Rhonda the Receptionist
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
STORY TEST CASE
“As a receptionist, I want to receive an out of the box phone
set up that’s created against best practices so I don’t have
to set it all up by myself.”
Make sure the available templates are
editable in a visual environment usable by
a Product Manager
“As a receptionist, I want to receive an out of the box phone
set up that’s created against best practices so I don’t have
to set it all up by myself.”
Make sure it’s possible to update the
template at install time
“As a receptionist, I want to receive an out of the box phone
set up that’s created against best practices so I don’t have
to set it all up by myself.”
Make sure the template designation is
available in all Loki provisioning interfaces
“As a receptionist, I want to change the buttons on my
phone so they do what I want.”
Make sure it’s possible for the user to reset
to the default template
“As a receptionist, I want to change the buttons on my
phone so they do what I want.”
Make sure the available functions are
filtered by the services assigned to the user
“As a receptionist, I want to change the buttons on my
phone so they do what I want.”
Make sure available functions are filtered
based on the capabilities of the phone key
“As a receptionist, I want a custom configuration on my phone so that I can manage calls in the way I’ve
come to expect.”
EPIC STORY
IDEATION
Copyright 2012 Cowan Publishing
IDEATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
MARY THE MOM
About: Mary the mom. . . [Describe like your friend or the beginning
of a short story. What kind of shoes does she wear?]. . .
Thinks: . . .
Sees: . . .
Feels: . . .
Does: . . .
1. List at least 3 personas
2. Describe as much as you can
Copyright 2012 Cowan Publishing
END USER PERSONAS
Rita
the Reseller
Orson
the Office Mgr.
Ignatius
the IT Guy
Rhonda
the Receptionist
Susan the
Small Bus. Owner
Keith
the Key System User
Amy
the Assistant
Simone
the Standard User
Chuck
the Call Center Agent
Esteban
the Executive
Mikuko
the Mobile User
Cindy
the Call Center Manager
Copyright 2012 Cowan Publishing
ENTERPRISE PERSONAS
Nietzsche
the Network Eng.
Paola
the Provisioner
Sidney
the Sys. Admin.
Percival the
Product Manager
Sven
the Salesperson
Anthony
the Applications Eng.
Itzhak
the IT Developer
Frank
the Field Eng.
Sam
the Support Eng.
Saul
the Site Developer
Fritz
the Field Eng. Manager
Bruce
the Business Owner
Copyright 2012 Cowan Publishing
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
PLANNING
Visual device management emerged from
general industry activity and follow-on work
at Leonid
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
Leonid can create a compelling,
useful, supportable visual device
management solution.
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
Lab work followed by limited
commercial release.
6.a YES
results
disprove
hypothesis
01 IDEA!
02 HYPOTHESIS
03 EXPERIMENTAL DESIGN
04 EXPERIMENTATION
05 REVISE?
6.b NO
we appear to
have a valid
hypothesis
Did we validate the ‘existential’
propositions? Was it supportable?
Bankable?
‘Pivot or persevere?’
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
“Parents want to better organize the distribution of allowances”
Priority: [1 for existential; 2+ for others]
Needs Proving?: [yes or no]
Experimentation: [how will most quickly, cheaply prove or disprove]
* Bonus Question: How do these relate to your personas?
1. List at least 3 assumptions
2. Note as much as you can on experiments
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
PRIORITY KEY ASSUMPTIONS
NEEDS
PROVING?
EXPERIMENTATION
1
End users at large want a visual tool
to manage their phones
No
- Already proven by prototypes from
partner
1
Giving the capability to end user
admin’s will do more good than harm
Yes - Beta testing with customers
1
The design and architecture are
supportable in current customer
environments
Yes
- Lab testing with customers...but really...
- Field testing at scale
1
The target price point is bearable by
the market
Yes
- Initial sales negotiations
- Mainline (post beta) sales
2
The capability makes sense with end
users (vs. admin’s)
Yes
- Some proxy data on overall activity by
user type
- Customer interviews
- Beta testing
2
(Various makes and models of
phones are worth investing in)
Yes - Advanced orders
PLANNING
Copyright 2012 Cowan Publishing
PERSONA PROBLEM SCENARIO
Orson the
Office Manager
‘I still don’t get it.’
‘This thing should increase
satisfaction & involvement;
and reduce support calls.’
Bruce
the
Business Owner
Percival
the
Product Mgr.
&
ONLINE SELF-CARE
One click access
via ‘Dashboard’
Focus on
customer admin
experience
IMPLEMENTATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Priority Key Assumption Needs Proving? Experimentation
1
End users want to log in
and do self-care
Yes!
Instrument adequate reporting,
create awareness,
see if they nibble
1
Reducing the portals
clicks to destination
from 4-6 to 2-3 is good
enough
Yes
- Log and analyze navigation
- Do support calls go down?
ASSUMPTIONS ON SELF-CARE
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Priority Key Assumption Needs Proving? Experimentation
1
End users want to log in
and do self-care
Yes!
Instrument adequate reporting,
create awareness,
see if they nibble
1
Reducing the portals
clicks to destination
from 4-6 to 2-3 is good
enough
Yes
- Log and analyze navigation
- Do support calls go down?
ASSUMPTIONS ON SELF-CARE
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Take II- DASHBOARDS
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Priority Key Assumption Needs Proving? Experimentation
1
Customer admin’s will
do self-care with training
and awareness
Yes!
Focus on training customer
admin’s,
see if they nibble
1
Presenting all the users
of interest on the 1st
page will engage these
admin’s
Yes
- Log and analyze navigation
- Do support calls go down?
ASSUMPTIONS ON SELF-CARE
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
DASHBOARD
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Good ≠ Viral
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
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.
Fixed: product development, G&A
Variable: field teams, support
BroadSoft
Other resellers
Integrators
Other network system
vendors
Product development
Large account mgmt.
Consulting
Custom Dev.
Actionable insight
on cloud UC
Best practice recipes
Dev. Team
Licensing
Maintenance & Support
Consulting
Custom Development
Dedicated personal
assistance
BroadSoft
SIPhon Networks
Direct
Reduced time & risk to
get to market
Reduced cost
Implementation of
learned best practices
Large/incumbent
Medium/competitive
Small/niche
Copyright 2012 Cowan Publishing
PLANNING
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.
Licensing
Maintenance & Support
Consulting
Custom Development
Dedicated personal
assistance
BroadSoft
SIPhon Networks
Direct
Reduced time & risk to
get to market
Reduced cost
Implementation of
learned best practices
Large/incumbent
Medium/competitive
Small/niche
Copyright 2012 Cowan Publishing
PLANNING
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.
Fixed: product development, G&A
Variable: field teams, support
BroadSoft
Other resellers
Integrators
Other network system
vendors
Product development
Large account mgmt.
Consulting
Custom Dev.
Actionable insight
on cloud UC
Best practice recipes
Dev. Team
Copyright 2012 Cowan Publishing
PLANNING
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.
Fixed: product development, G&A
Variable: field teams, support
BroadSoft
Other resellers
Integrators
Other network system
vendors
Product development
Large account mgmt.
Consulting
Custom Dev.
Actionable insight
on cloud UC
Best practice recipes
Dev. Team
Copyright 2012 Cowan Publishing
PLANNING
Copyright 2012 Cowan Publishingsee alexandercowan.com/finplan
operations begin
2007 2008 2009 2010 2011 2012
Revenue (consulting)
(+some
software)
(50%
software)
(scaling
software)
Expenses (small/me+) (variable)
(++fixed
costs)
Financing (n/a)
(small debt
offer- family)
(n/a) (bank-based
financing)
Earnings (profitable)
Visibility (moderate)
(low/
moderate)
(low/
moderate)
(high) (high)
(current products:
high
new products:
moderate)
PLANNING
Copyright 2012 Cowan Publishing
Theses
Growth?
Retention?
Supportability?
Ongoing investment?
Competition?
Hypotheses
Does anyone want this?
Are we the people to do it?
Pivot or persevere?
PLANNING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
ORGANIZATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
ORGANIZATION
Customer
Development
(me)
(dev & ops
mgmt.)
(dev & operations
team)
Scaling
(me)
(expanded
sr. mgmt.)
(dev &
operations team)
Feasibility
(me)
(dev
contractors)
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
Who’s the audience? What’s the problem scenario?
How will it help you sharpen your personas? Problem scenarios?
How will it help you validate or invalidate pivotal assumptions?
What would be the next steps?
What would a concierge product test
look like?
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
DEVELOPMENT
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
DEVELOPMENT
LOKI
PORTALS
ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04
ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04
LOKI
PROVISIONING
LOKI BPM
DOC’S &
INFRASTRUCTURE
A
ITERATION 05
ITERATION 05
D
E
C
G
Predictive
Content
B
F
Predictive
Content
Predictive
Content
Predictive
Content
Adaptive
Content
Adaptive
Content
Adaptive
Content
Adaptive
Content
Specialties
(VARIOUS)DESIGN
UNIXSYSADMIN
RUBY
PYTON
JAVA
PHP
...
...
...
SEO
ANALYTICS
...
(VARIOUS)MGMT.
...
Copyright 2012 Cowan Publishing
Basic
Technical
Literacy
SOFTWARE
FUNDAMENTALS
Model-View-Controller
ARCHITECTURE
FUNDAMENTALS
App. & Platform Integration
ROLES & SYSTEMS
In a Technical Team
Stories
Personas
Development Discussion
Foundation
Concepts
ITERATIVE
MANAGEMENT
DESIGN
THINKING
CUSTOMER
DEVELOPMENT
AGILE
Collaboration AGILE
As Product Owner
ORGANIZATION
Copyright 2012 Cowan Publishing
MAKING PROGRESS
IDEA!
Positioning
Statement?
Field Work & Analytics
Ideation & Design
Product Development
General Management
Pivotal
Assumptions?
Field
Discovery
Still Learning?
Field
Validation
Draft
Prototype
Quicky
Prototype?
Yes?
Confident?
No?
Create
User
Stories
Done?
Customer
Definition
Personas?
Problem Scenarios?
New Learning?
Define
MVP
CUSTOMER
VALIDATION
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
BUY THE BOOK
A practical primer for anyone
wanting to actually implement
today’s best practices in product
development (available online or
at any major retailer)
VISIT THE SITE
Free talks, tutorials, and
resources for product
development and new ventures.
MORE?
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2012 Cowan Publishing
@cowanSF
alexandercowan.com/blog
acowan@alexandercowan.com
alexandercowan.com/speaking
alexandercowan.com/resources
ALEX COWAN
AlexanderCowan.com
@cowanSF

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  • 21. Copyright 2012 Cowan Publishing Drafting Stories PERSONAS STORIES Epic Stories Stories Test Cases “As a [persona], I want to [do something] so that I can [derive a benefit]” IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 22. Copyright 2012 Cowan Publishing BorrowedwithutmostregardfromBanksy(banksy.co.uk) IDEATION
  • 23. Copyright 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 6.a PIVOT experiments disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 PIVOT OR PERSEVERE? 6.b PERSEVERE experiments prove hypothesis ALEX COWAN AlexanderCowan.com @cowanSF
  • 24. !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% Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 25. Copyright 2012 Cowan Publishing PLANNINGPLANNING Do I have real evidence from my buyer that this is compelling? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis What are the key assumptions required to make this business work? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis How do I definitely prove or disprove the assumptions with a minimum of time and effort? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Am I reacting or am I focused on validating my pivotal assumptions? ‘Pivot or persevere?’ ALEX COWAN AlexanderCowan.com @cowanSF
  • 26. Copyright 2012 Cowan Publishing 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 better organize the distribution of allowances Yes * Post the proposition in ads online * Measure sign-up’s on a landing page 2 Parents have smart phones No n/a PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 27. Copyright 2012 Cowan Publishing PLANNING
  • 28. Copyright 2012 Cowan Publishing $ PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 29. Copyright 2012 Cowan Publishing ORGANIZATION == Aping Then Customer Development Now ALEX COWAN AlexanderCowan.com @cowanSF
  • 30. Copyright 2012 Cowan Publishing ≠ ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 31. Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 32. Big Company Recipes Applied Copyright 2012 Cowan Publishing 5 Year Plan == 10x Returns! X: < Odds at Lotto VC-Encouraged Menagerie X: Too much too soon X: Lack of Experience in Hands-on Discovery X: Better Luck with the Lottery Time to Face the Music X: New Theories to Explain Plan v. Actual X: Fun and Profit- Unlikely ORGANIZATION ++ New Idea! Expanded Team Revisions to Plan == Edgy Board X: Want Lots of Capital at Work It Works! Working 5 Year Plan New HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
  • 33. Investors? Advisors? Focus on Validated Learning Copyright 2012 Cowan Publishing Key Assumptions ID’ed, Validated Lower Risk & Capital Requirement Resources As Needed Clear Focus in Hiring & Contracting Roles and Success Criteria Clear Progress is Quick and Measurable Time to Face the Music Validated Learning Answers Shared Questions Fun & Profit ORGANIZATION ++ New Idea! Full Tilt at a ‘Pivot or Persevere’ Moment Is approach working or not? Option for Non-Traditional Funding Strategies Expanded TeamNew HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
  • 34. Copyright 2012 Cowan Publishing DEVELOPMENT Waterfall Then Agile Now ALEX COWAN AlexanderCowan.com @cowanSF
  • 35. Copyright 2012 Cowan Publishing Individuals Interactions > Processes Tools Working software Comprehensive Documentation > Customer collaboration Contract negotiation > Responding to change Following a plan > DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
  • 36. Copyright 2012 Cowan Publishing DEVELOPMENT validate feature relevance with customers Past collaborate with development team Present observe and envision what’s next Future
  • 37. Copyright 2012 Cowan Publishing DESIGN THINKING LEAN STARTUP CUSTOMER DEV. AGILE personas problem scenarios user stories hypothesis (assumptions) experimental design roles & team objectives working product ALEX COWAN AlexanderCowan.com @cowanSF
  • 38. Copyright 2012 Cowan Publishing 2007 went out on my own 2008 profitable, productized consulting business 2010 software business 2011 scaling! 2013 keep learning, keep innovating ALEX COWAN AlexanderCowan.com @cowanSF
  • 39. Copyright 2012 Cowan Publishing A LEAN PROGRESSION CONSULTING PRODUCTS Validated problem scenarios with substantial detail ‘PRODUCTIZED’ CONSULTING Customer empathy- more scope, detail on problem scenarios
  • 40. Copyright 2012 Cowan Publishing UNDERSTANDING THE MARKET 50-70% of Enterprise Software Implementations Fail ALEX COWAN AlexanderCowan.com @cowanSF
  • 41. Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 42. How do we do this more efficiently? Are we implementing best practices? How do we improve service quality? How do we verify that? Copyright 2012 Cowan Publishing IDEATION Help me integrate and standardize the infrastructure. And show my people how to use it. Creating accounts is taking a lot of time/ money. And there are a lot of mistakes. SERVICE STANDARDIZATION & WORKFLOW SERVICE DESIGN PROCESS AUDIT, DESIGN NETWORK PRINCIPALS OF OPERATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 43. Copyright 2012 Cowan Publishing USER STORIES “As a receptionist, I want to receive an out of the box set up that’s created against best practices so I don’t have to set it all up by myself.” “As a receptionist, I want to change the buttons on my phone so they do what I want.” PROBLEM SCENARIO ‘I want a good out-of-the-box experience. And to change the display on my phone.’ PERSONA Rhonda the Receptionist IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 44. Copyright 2012 Cowan Publishing STORY TEST CASE “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the available templates are editable in a visual environment usable by a Product Manager “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure it’s possible to update the template at install time “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the template designation is available in all Loki provisioning interfaces “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure it’s possible for the user to reset to the default template “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure the available functions are filtered by the services assigned to the user “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure available functions are filtered based on the capabilities of the phone key “As a receptionist, I want a custom configuration on my phone so that I can manage calls in the way I’ve come to expect.” EPIC STORY IDEATION
  • 45. Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 46. Copyright 2012 Cowan Publishing MARY THE MOM About: Mary the mom. . . [Describe like your friend or the beginning of a short story. What kind of shoes does she wear?]. . . Thinks: . . . Sees: . . . Feels: . . . Does: . . . 1. List at least 3 personas 2. Describe as much as you can
  • 47. Copyright 2012 Cowan Publishing END USER PERSONAS Rita the Reseller Orson the Office Mgr. Ignatius the IT Guy Rhonda the Receptionist Susan the Small Bus. Owner Keith the Key System User Amy the Assistant Simone the Standard User Chuck the Call Center Agent Esteban the Executive Mikuko the Mobile User Cindy the Call Center Manager
  • 48. Copyright 2012 Cowan Publishing ENTERPRISE PERSONAS Nietzsche the Network Eng. Paola the Provisioner Sidney the Sys. Admin. Percival the Product Manager Sven the Salesperson Anthony the Applications Eng. Itzhak the IT Developer Frank the Field Eng. Sam the Support Eng. Saul the Site Developer Fritz the Field Eng. Manager Bruce the Business Owner
  • 49. Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 50. Copyright 2012 Cowan Publishing PLANNING Visual device management emerged from general industry activity and follow-on work at Leonid 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Leonid can create a compelling, useful, supportable visual device management solution. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Lab work followed by limited commercial release. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Did we validate the ‘existential’ propositions? Was it supportable? Bankable? ‘Pivot or persevere?’ ALEX COWAN AlexanderCowan.com @cowanSF
  • 51. Copyright 2012 Cowan Publishing “Parents want to better organize the distribution of allowances” Priority: [1 for existential; 2+ for others] Needs Proving?: [yes or no] Experimentation: [how will most quickly, cheaply prove or disprove] * Bonus Question: How do these relate to your personas? 1. List at least 3 assumptions 2. Note as much as you can on experiments ALEX COWAN AlexanderCowan.com @cowanSF
  • 52. Copyright 2012 Cowan Publishing PRIORITY KEY ASSUMPTIONS NEEDS PROVING? EXPERIMENTATION 1 End users at large want a visual tool to manage their phones No - Already proven by prototypes from partner 1 Giving the capability to end user admin’s will do more good than harm Yes - Beta testing with customers 1 The design and architecture are supportable in current customer environments Yes - Lab testing with customers...but really... - Field testing at scale 1 The target price point is bearable by the market Yes - Initial sales negotiations - Mainline (post beta) sales 2 The capability makes sense with end users (vs. admin’s) Yes - Some proxy data on overall activity by user type - Customer interviews - Beta testing 2 (Various makes and models of phones are worth investing in) Yes - Advanced orders PLANNING
  • 53. Copyright 2012 Cowan Publishing PERSONA PROBLEM SCENARIO Orson the Office Manager ‘I still don’t get it.’ ‘This thing should increase satisfaction & involvement; and reduce support calls.’ Bruce the Business Owner Percival the Product Mgr. & ONLINE SELF-CARE One click access via ‘Dashboard’ Focus on customer admin experience IMPLEMENTATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 54. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 55. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 56. Copyright 2012 Cowan Publishing Take II- DASHBOARDS ALEX COWAN AlexanderCowan.com @cowanSF
  • 57. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 Customer admin’s will do self-care with training and awareness Yes! Focus on training customer admin’s, see if they nibble 1 Presenting all the users of interest on the 1st page will engage these admin’s Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 58. Copyright 2012 Cowan Publishing DASHBOARD ALEX COWAN AlexanderCowan.com @cowanSF
  • 59. Copyright 2012 Cowan Publishing Good ≠ Viral PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 60. 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. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
  • 61. 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. Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
  • 62. 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. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
  • 63. 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. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
  • 64. Copyright 2012 Cowan Publishingsee alexandercowan.com/finplan operations begin 2007 2008 2009 2010 2011 2012 Revenue (consulting) (+some software) (50% software) (scaling software) Expenses (small/me+) (variable) (++fixed costs) Financing (n/a) (small debt offer- family) (n/a) (bank-based financing) Earnings (profitable) Visibility (moderate) (low/ moderate) (low/ moderate) (high) (high) (current products: high new products: moderate) PLANNING
  • 65. Copyright 2012 Cowan Publishing Theses Growth? Retention? Supportability? Ongoing investment? Competition? Hypotheses Does anyone want this? Are we the people to do it? Pivot or persevere? PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 66. Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 67. Copyright 2012 Cowan Publishing ORGANIZATION Customer Development (me) (dev & ops mgmt.) (dev & operations team) Scaling (me) (expanded sr. mgmt.) (dev & operations team) Feasibility (me) (dev contractors) ALEX COWAN AlexanderCowan.com @cowanSF
  • 68. Copyright 2012 Cowan Publishing Who’s the audience? What’s the problem scenario? How will it help you sharpen your personas? Problem scenarios? How will it help you validate or invalidate pivotal assumptions? What would be the next steps? What would a concierge product test look like? ALEX COWAN AlexanderCowan.com @cowanSF
  • 69. Copyright 2012 Cowan Publishing DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
  • 70. Copyright 2012 Cowan Publishing DEVELOPMENT LOKI PORTALS ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 LOKI PROVISIONING LOKI BPM DOC’S & INFRASTRUCTURE A ITERATION 05 ITERATION 05 D E C G Predictive Content B F Predictive Content Predictive Content Predictive Content Adaptive Content Adaptive Content Adaptive Content Adaptive Content
  • 71. Specialties (VARIOUS)DESIGN UNIXSYSADMIN RUBY PYTON JAVA PHP ... ... ... SEO ANALYTICS ... (VARIOUS)MGMT. ... Copyright 2012 Cowan Publishing Basic Technical Literacy SOFTWARE FUNDAMENTALS Model-View-Controller ARCHITECTURE FUNDAMENTALS App. & Platform Integration ROLES & SYSTEMS In a Technical Team Stories Personas Development Discussion Foundation Concepts ITERATIVE MANAGEMENT DESIGN THINKING CUSTOMER DEVELOPMENT AGILE Collaboration AGILE As Product Owner ORGANIZATION
  • 72. Copyright 2012 Cowan Publishing MAKING PROGRESS IDEA! Positioning Statement? Field Work & Analytics Ideation & Design Product Development General Management Pivotal Assumptions? Field Discovery Still Learning? Field Validation Draft Prototype Quicky Prototype? Yes? Confident? No? Create User Stories Done? Customer Definition Personas? Problem Scenarios? New Learning? Define MVP CUSTOMER VALIDATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 73. Copyright 2012 Cowan Publishing BUY THE BOOK A practical primer for anyone wanting to actually implement today’s best practices in product development (available online or at any major retailer) VISIT THE SITE Free talks, tutorials, and resources for product development and new ventures. MORE? ALEX COWAN AlexanderCowan.com @cowanSF
  • 74. Copyright 2012 Cowan Publishing @cowanSF alexandercowan.com/blog acowan@alexandercowan.com alexandercowan.com/speaking alexandercowan.com/resources ALEX COWAN AlexanderCowan.com @cowanSF