Venture Design I: Achieving Customer Relevance

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Venture Design I: Achieving Customer Relevance

  1. 1. Copyright 2014 Cowan Publishing Venture Design Workshop I Achieving Customer Relevance
  2. 2. Copyright 2014 Cowan Publishing AGENDA Period! Deliverables! Venture Design I: Achieving Customer Relevance Personas Problem Scenarios-Alternatives-Value Propositions Start Business Model Canvas Storyboards Customer Discovery Venture Design II: Iterating to Success Venture Planning- focal hypotheses, experiments, and minimum viable ‘product’ Venture Design III: Focusing & Validating Venture Progress Review of field work, refinements of approach, planning next steps. Venture Design IV: Engineering Your Business Model! Detailing your business model and remaining focal assumptions. Venture Design V: Designing the Right Product! Pairing your learnings on personas & hypotheses with high quality, actionable inputs (stories & wireframes) for product development and product validation.
  3. 3. Copyright 2014 Cowan Publishing PRODUCT IDEAS? ALEX COWAN AlexanderCowan.com @cowanSF Do you have a product idea you can use?
  4. 4. Copyright 2014 Cowan Publishing PRODUCT IDEA: ENABLE QUIZ
  5. 5. Copyright 2014 Cowan Publishing PRODUCT IDEA: WEDOTHAT
  6. 6. Copyright 2014 Cowan Publishing PRODUCT IDEA: MY LETTER, MY STORY
  7. 7. Copyright 2014 Cowan Publishing Personas IT’S A PROCESS Some techniques are more effective than others. But they all require substantial, consistent exertion.
  8. 8. Copyright 2014 Cowan Publishing Foundation in Design Thinking VENTURE DESIGN
  9. 9. Copyright 2014 Cowan Publishing Foundation in Design Thinking ExperimentLearn Hypothesize Lean Startup- Style Assumptions VENTURE DESIGN
  10. 10. Copyright 2014 Cowan Publishing Foundation in Design Thinking Business Model Canvas ExperimentLearn Hypothesize Lean Startup- Style Assumptions VENTURE DESIGN
  11. 11. Copyright 2014 Cowan Publishing Foundation in Design Thinking User Stories & Test Cases Business Model Canvas ExperimentLearn Hypothesize Lean Startup- Style Assumptions VENTURE DESIGN
  12. 12. 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
  13. 13. Copyright 2014 Cowan Publishing Foundation in Design Thinking VENTURE DESIGN
  14. 14. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF THE FULL STACK PRODUCT PERSON Specialties DESIGN&UX UNIXSYSADMIN RUBY PYTON JAVA PHP ... ENTERPRISESALES ... SEO ANALYTICS ... ... ... Foundation Skills LEAN DESIGN THINKING CUSTOMER DEV. AGILE Technical Literacy ARCHITECTURE FUNDAMENTALS App. & Platform Integration ROLES & SYSTEMS In a Technical Team SOFTWARE FUNDAMENTALS Model-View- Controller
  15. 15. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF WHY IS DESIGN THINKING HARD? Design Thinking Now Survival Then
  16. 16. Copyright 2014 Cowan Publishing Empathy Creativity DESIGN THINKING
  17. 17. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF DESIGN THINKING- APPLICATIONS
  18. 18. Copyright 2014 Cowan Publishing Entry1 Urinate as they go2 Edges preferred3 Speedy4 PB > cheese5 Empathy DESIGN THINKING- APPLICATIONS ALEX COWAN AlexanderCowan.com @cowanSF
  19. 19. Copyright 2014 Cowan Publishing Check & Repair UV Validation Relevant Placement A Better Mouse Trap Powered by Better Bait Creativity 1 2 3 4 5 DESIGN THINKING- APPLICATIONS ALEX COWAN AlexanderCowan.com @cowanSF
  20. 20. Copyright 2014 Cowan Publishing Foundation in Design Thinking DESIGN THINKING- PERSONAS Personas Problem Scenarios Alternatives Your Value Propositions
  21. 21. Copyright 2014 Cowan Publishing DESIGN THINKING- PERSONAS ALEX COWAN AlexanderCowan.com @cowanSF
  22. 22. Copyright 2014 Cowan Publishing DESIGN THINKING- PERSONAS ALEX COWAN AlexanderCowan.com @cowanSF
  23. 23. 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
  24. 24. 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
  25. 25. Copyright 2014 Cowan Publishing THE ART OF CUSTOMER DISCOVERY
  26. 26. 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
  27. 27. 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 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
  28. 28. 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)
  29. 29. Copyright 2014 Cowan Publishing OUR PERSONA Sally the Single Mom
  30. 30. Copyright 2014 Cowan Publishing WAKE UP!
  31. 31. Copyright 2014 Cowan Publishing WAKE UP!
  32. 32. Copyright 2014 Cowan Publishing GEARING UP FOR THE DAY
  33. 33. Copyright 2014 Cowan Publishing AT WORK
  34. 34. Copyright 2014 Cowan Publishing AFTER WORK
  35. 35. Copyright 2014 Cowan Publishing PRE-BED
  36. 36. Copyright 2014 Cowan Publishing BED
  37. 37. Copyright 2014 Cowan Publishing GEAR
  38. 38. Copyright 2014 Cowan Publishing IF I HAD 3 EXTRA HOURS…
  39. 39. 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?
  40. 40. Copyright 2014 Cowan Publishing EXERCISE- PERSONA CREATION Mary the Working Mom Susan the Stay-at-Home Mom Douglas the Dad Nathan the Nanny Ivan the Infant … List at least 3 personas (4 min) use 1 index card/ persona
  41. 41. Copyright 2014 Cowan Publishing EXERCISE- PERSONA CREATION Mary the Working Mom (B, U) Susan the Stay-at-Home Mom (B, U) Douglas the Dad (U) Nathan the Nanny (U) Ivan the Infant (U) … Which are buyers? Users? Both? Note with a ‘B’ and/or a ‘U’ on the Index Card (1 min)
  42. 42. Copyright 2014 Cowan Publishing EXERCISE- PERSONA CREATION (2 min) Can you think of 5 real examples for each? Use the back of your index cards
  43. 43. Copyright 2014 Cowan Publishing EXERCISE- PERSONA CREATION Which have the most compelling need, desire? If you could only pitch 1 persona type, which? Sort top to bottom (1 min)
  44. 44. Copyright 2014 Cowan Publishing DISCOVERY & LEARNING: THINK-SEE-FEEL-DO ALEX COWAN AlexanderCowan.com @cowanSF
  45. 45. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF XPROBLEM SCENARIO DISCOVERY & LEARNING: PROBLEM SCENARIOS
  46. 46. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF XWhat job(s) are you doing for the customer? What existing need or behavior are you fulfilling? PROBLEM SCENARIO DISCOVERY & LEARNING: PROBLEM SCENARIOS
  47. 47. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF ? X ALTERNATIVE(S) PROBLEM SCENARIO DISCOVERY & LEARNING: PROBLEM SCENARIOS
  48. 48. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF ? 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. ALTERNATIVE(S) PROBLEM SCENARIO DISCOVERY & LEARNING: PROBLEM SCENARIOS
  49. 49. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF YOUR VALUE PROPOSITIONS ! ALTERNATIVE(S) ? PROBLEM SCENARIO X DISCOVERY & LEARNING: PROBLEM SCENARIOS
  50. 50. Copyright 2014 Cowan Publishing ALEX COWAN AlexanderCowan.com @cowanSF X Are they better enough than the alternative(s)? ! ? YOUR VALUE PROPOSITIONS ALTERNATIVE(S) PROBLEM SCENARIO DISCOVERY & LEARNING: PROBLEM SCENARIOS
  51. 51. Copyright 2014 Cowan Publishing EXERCISE- VALUE PROPOSITIONS Brainstorm Problem Scenario- Alternative-Value Proposition Trios. YOUR VALUE PROPOSITIONS! ALTERNATIVE(S) ? PROBLEM SCENARIO X Problem: Mary would like to be more structured and consistent in her use of allowances to teach the link between work and financial rewards. Alternative: Track the completion of chores, homework, etc. manually using paper, boards, notes on her phone. Value Proposition: Use our app to easily and consistently implement best practices tailored to your situation. (7 min.)
  52. 52. Copyright 2014 Cowan Publishing EXERCISE- VALUE PROPOSITIONS Prioritize your value propositions- if you could only pitch one, which? After that? Etc. (2 min.)
  53. 53. Copyright 2014 Cowan Publishing THE BUSINESS MODEL CANVAS 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) ALEX COWAN AlexanderCowan.com @cowanSF
  54. 54. Copyright 2014 Cowan Publishing SEGMENT TO VALUE PROPOSITION MAPPING 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_1 Cost_2 Cost_3 Partner_1 Partner_2 Partner_3 Activity_1 Activity_2 Activity_3 Resource_1 Resource_2 Resource_3 Revenue_1 Revenue_2 Revenue_3 Relationship_1 Relationship_2 Relationship_3 Channel_1 Channel_2 Channel_3 Proposition_1 Proposition_2 Proposition_3 Segment_1 Segment_2 Segment_3 ALEX COWAN AlexanderCowan.com @cowanSF
  55. 55. Copyright 2014 Cowan Publishing THE INDEPENDENT VARIABLE Value Propositions Customer Segments 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) ALEX COWAN AlexanderCowan.com @cowanSF
  56. 56. Copyright 2014 Cowan Publishing CUSTOMER SEGMENTS VS. PERSONAS ≈ g Customer Segments Personas ALEX COWAN AlexanderCowan.com @cowanSF
  57. 57. Copyright 2014 Cowan Publishing EXERCISE- MAPPING PERSONAS, VALUE PROP’S 1. List your prioritized personas (Customer Segments block) and Value Propositions 2. Map your personas to your Value Propositions 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. Activity_1 Activity_2 Activity_3 Proposition_1 Proposition_2 Proposition_3 Persona_1 Persona_2 Persona_3 (3 min)
  58. 58. 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… AND NOW THE PRODUCT HYPOTHESIS ! ? X
  59. 59. Copyright 2014 Cowan Publishing EXERCISE: YOUR PRODUCT HYPOTHESIS … 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… ‘HR and functional managers are in charge of technical hires and they struggle to effectively screen for technical skill sets, making the hiring process slower and more labor intensive and producing worse outcomes than they should reasonably expect. Currently they implement a patchwork of calling references and asking a few probing questions. By offering an easy, affordable, lightweight technical quizzing solution, Enable Quiz can acquire and retain these customer personas, delivering material value.’ (4 min.) Enable Quiz example:
  60. 60. Copyright 2014 Cowan Publishing PEER PRESENTATIONS PREP! (4 min.) For [target customer] who [statement of the need or opportunity], the [product name] is a [product category] that [statement of key benefit/ key reason to buy]. unlike [primary alternative], our product [statement of primary differentiation]. For [hiring managers] who [need to evaluate technical talent], [Enable Quiz] is a [talent assessment system] that [allows for quick and easy assessment of topical understanding in key engineering topics]. Unlike [formal certifications or ad hoc questions], our product [allows for lightweight but consistent assessments of technical talent]. EXAMPLE
  61. 61. Copyright 2014 Cowan Publishing As Presenter As Audience 1) What is this? (Use positioning statement) 2) Who is the persona? What kind of shoes do they wear? 3) What problem scenario(s) are you looking at? What alternatives does the persona use now? 4) What’s your value proposition? 5) What’s your product hypothesis? 6) What do you need to learn more about? - Focus on the process; avoid editorial - Ask a lot of questions - Think about it like an investor EXERCISE: PEER PRESENTATION (5 min./ each)
  62. 62. Copyright 2014 Cowan Publishing STORYBOARDING: ORIGINS copyright Fred Moore & Disney Pictures ALEX COWAN AlexanderCowan.com @cowanSF
  63. 63. Copyright 2014 Cowan Publishing Personas STORYBOARDING EXAMPLE
  64. 64. Copyright 2014 Cowan Publishing Personas STORYBOARDING EXAMPLE
  65. 65. Copyright 2014 Cowan PublishingCopyright 2014 Cowan Publishing ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS X Helen the HR Manager “It’s hard for me to screen on technical skill sets and I end up sending Frank unqualified recruits.” Frank the Functional Manager “I have limited time and I don’t want to be a jerk. It’s hard to screen for all the relevant technical skill sets.” PERSONA PROBLEM SCENARIO - Call references - Take their word for it - A few probing questions - Take their word for it?ALTERNATIVE(S) !VALUE PROPOSITIONS New ability for meaningful screening of technical candidates, increasing % of successful hires and lowering Frank’s workload on recruiting. Less time doing interviews, and better hires sooner.
  66. 66. Copyright 2014 Cowan Publishing STORYBOARDING A PROBLEM SCENARIO AFTER BEFORE BEFORE (using the Alternative) AFTER (with the Value Proposition)
  67. 67. Copyright 2014 Cowan Publishing EXERCISE: BEFORE AND AFTER BOARDS Using the squares, create a before and then after storyboard- 3 panels each BEFORE (using the Alternative) AFTER (with the Value Proposition) (10 min.)
  68. 68. Copyright 2014 Cowan Publishing DESIGN THINKING- USING PERSONAS Foundation in Design Thinking Personas Problem Scenarios Alternatives Your Value Propositions SELLING STUFF Who’s buying? Where? Why? Who are we selling to? Where do we reach them? With what proposition? MAKING STUFFWhat does the user actually do? What does the user (most) want?
  69. 69. Copyright 2014 Cowan Publishing PERSONAS- DISCOVERY & VALIDATION MVP Tell me about yourself. What do you do? How often? How does it make you feel? Interviews AdWords, etc. + Landing Page Tests Real-Time Analytics & Recording Minimum Viable Product What language, propositions resonate? What is the customer prepared to do? What do users actually do? Do customers like it? Buy it? Use it? Tell others about it?
  70. 70. 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
  71. 71. Copyright 2014 Cowan Publishing X PROBLEM SCENARIOS & ALTERNATIVES What? PRODUCT & PROMOTION / CUSTOMER DISCOVERY & EXPERIMENTS Tell me…? BY THE NUMBERS PERSONAS Who? USER STORIES & PROTOTYPES How? Scale? Pivot? VALUE PROPOSITIONS & ASSUMPTIONS What if? !
  72. 72. Copyright 2014 Cowan Publishing 4 TYPES OF LEAN HYPOTHESES ALEX COWAN AlexanderCowan.com @cowanSF PERSONA HYPOTHESIS PROBLEM HYPOTHESIS VALUE HYPOTHESIS CUSTOMER CREATION HYPOTHESIS
  73. 73. Copyright 2014 Cowan Publishing PERSONA HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF Does this person exist? Can you identify them? Do you understand them really well? What do they think-see-feel-do in your area?
  74. 74. Copyright 2014 Cowan Publishing PERSONA HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘Everyone is my customer!’ Possibly true at some point, but you need to nail early adopters to get traction.
  75. 75. Copyright 2014 Cowan Publishing PERSONA HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘There are a few customers to focus on- I’m not sure which one’. Pick the one with the most compelling need and choose. Or guess. But don’t diffuse your focus.
  76. 76. Copyright 2014 Cowan Publishing PERSONA HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘I can’t find anyone to interview’ Then I would step back. This almost certainly means you’ll have trouble with the next steps as well.
  77. 77. Copyright 2014 Cowan Publishing PERSONA HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘I think I get this persona, but I’m not sure about the whole think-see-feel-do thing.’ Think-see-feel-do is not the only way to go but it’s pretty good. Solid personas are the stitch in time that saves 9.
  78. 78. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF Have you identified a discrete problem/need? How important is it to the target persona(s)? What alternatives do they use today? How?
  79. 79. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘During customer discovery interviews, the subjects consistently mentioned our problem scenario’ Excellent! That’s a good preliminary validation you’re on the right track.
  80. 80. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We did a questionnaire and >80% of subjects said they wish [our problem area] was better.’ Don’t trust questionnaires, especially with leading questions. Focus on face-to- face.
  81. 81. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘I am in this business/I am one of these personas and I know I have this problem- and I’m sure it exists for most others like me.’ Good start but approach discovery like you know nothing.
  82. 82. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘Our product doesn’t really address a problem, exactly, so this isn’t relevant for us.’ There are no new problems or habits. Make sure you know what you’re after.
  83. 83. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘Our product is so fundamentally novel that there are no current alternatives.’ (see previous)
  84. 84. Copyright 2014 Cowan Publishing PROBLEM HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We’ve mapped out the alternative and observed or key personas in action with them.’ Excellent! You’re ready to synthesize, tune and test your value proposition!
  85. 85. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF How much better than the best alternative is your product? How obvious is that to the customer?
  86. 86. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘Over 80% of the people we asked said they’d buy our product!’ Can’t trust it- Yellow Walkman data
  87. 87. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We did a concierge test and [got paid, got asked by the customer when they could buy our product].’ Excellent! You’re on the fast track of iterating to a successful outcome. Time to look at an actual MVP.
  88. 88. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We finished our concierge test. They liked it but as a result it was a long way to conclusive.’ Now that you know how, could you get paid for the next one? Try other test and then if negative, consider pivot.
  89. 89. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We made a bunch of pre-release sales, but they’re non-binding.’ That’s OK (as long as you made the agreement with a real decision maker). You’ve got a reasonably good validation of value hypothesis.
  90. 90. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We couldn’t make any pre-release sales.’ Why not? No interest? That’s bad. Need to sell real product (and that’s really why), consider what’s behind that.
  91. 91. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We found a few AdWord-landing page combinations that had better than expected click through and conversion rates to email sign-up’s.’ Excellent! That’s a good validation of your value hypothesis and you’re gotten a jump start on your Customer Creation Hypotheses.
  92. 92. Copyright 2014 Cowan Publishing VALUE HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF ‘We tried a few things with AdWords and landing pages, but the results weren’t great.’ What happens when you try the same thing out in the real world? Search is a good way to connect with existing demand but not necessarily learn about its fundamentals.
  93. 93. Copyright 2014 Cowan Publishing CUSTOMER CREATION HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF How will you get the customer’s: attention, interest, desire, action, onboarding, retention? How will you know if it’s working?
  94. 94. Copyright 2014 Cowan Publishing CUSTOMER CREATION HYPOTHESIS ALEX COWAN AlexanderCowan.com @cowanSF Most of these results are pretty definitive.
  95. 95. Copyright 2014 Cowan Publishing WHERE ARE YOU NOW? MVP Nascent Product-Market Fit(?) Scale PIVOTAL ASSUMPTIONS PRODUCT ORG. PARTNERS, CHANNELS Founders N/A Probably too soon Test, revise, test... MVP Customer dev. team Probably too soon Validated- now tactical Focus: efficiency, extension Full functional organization Yeah, maybe? Validated- now tactical What would a startup do?? Scalable organization Yeah, definitely!
  96. 96. Copyright 2014 Cowan Publishing AGENDA Period! Deliverables! Venture Design I: Achieving Customer Relevance Personas Problem Scenarios-Alternatives-Value Propositions Start Business Model Canvas Storyboards Customer Discovery Venture Design II: Iterating to Success Venture Planning- focal hypotheses, experiments, and minimum viable ‘product’ Venture Design III: Focusing & Validating Venture Progress Review of field work, refinements of approach, planning next steps. Venture Design IV: Engineering Your Business Model! Detailing your business model and remaining focal assumptions. Venture Design V: Designing the Right Product! Pairing your learnings on personas & hypotheses with high quality, actionable inputs (stories & wireframes) for product development and product validation.
  97. 97. Copyright 2014 Cowan Publishing RECOMMENDED NEXT STEPS “Homework” 1. Draft a working set of personas Pick the most important buyers and/or users. More is not necessarily better- you can always add more (re-segment) later. Finish think-see-feel-do. Find a photo. 2. Draft a working set of problem scenario-alternative-value proposition trios. 3. Finish a working product hypothesis and positioning statement. GOOGLE DOC TEMPLATE FOR ABOVE: http://bit.ly/venturetemplate 4. Finish a working interview guide to validate your persona and problem hypotheses and complete a few customer interviews.
  98. 98. Copyright 2014 Cowan Publishing RECOMMENDED NEXT STEPS Follow-On Workshops 1. For Creating Strong Personas Day in the Life Workshop: http://bit.ly/daynthelife 2. For Structuring Your Product Value Propositions into Testable Assumptions Venture Design II: Iterating to Success: http://bit.ly/vdesignII 3. For Designing a Profitable Business Model Venture Design IV: Engineering Your Business Model: http://bit.ly/vdesignIV 4. For Linking the Above to an Effective Product Development Program Venture Design V: Designing the Right Product: http://bit.ly/vdesignV
  99. 99. Copyright 2014 Cowan Publishing acowan@alexandercowan.com @cowanSF www.alexandercowan.com/venture-design bit.ly/vdesignI www.alexandercowan.com/startup-sprints

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