Business is from Mars, Design from VenusDeductive/Inductive Reasoning Abductive Reasoning“Traditional ﬁrms utilize and reward the use of “Designers value highly a third type of logic:two kinds of logic. ﬔe ﬁrst, inductive, entails abductive reasoning. Abductive reasoning, asproving through observation that something described by Darden professor Jeanne Liedtka,actually works. ﬔe second, deductive, involves embraces the logic of what might be.proving -- through reasoning from principles --that something must be.” ﬔis style of thinking is critical to the creative process.” http://www.businessweek.com/innovate/content/aug2005/di20050803_823317.htm
Step Back Think Organize Proceed ﬔe Inner Game of Stress: Outsmart Lifes Challenges and Fulﬁll Your Potential by W. Timothy Gallwey8
Tools for ThinkingClariﬁcation:Do I understand what you are saying?Understanding:Do I understand your thinkingContext:Do I understand the world we are acting in?Evidence:What tells me this is right?
For Clariﬁcation, try Active Listening 1. Repeat 2. Paraphrase 3. Extend
For Understanding, try Five WhysMy car will not start. (the problem) •Why? - ﬔe battery is dead. (ﬁrst why) •Why? - ﬔe alternator is not functioning. (second why) •Why? - ﬔe alternator belt has broken. (third why) •Why? - ﬔe alternator belt was well beyond its useful service life and has never been replaced. (fourth why) •Why? - I have not been maintaining my car according to the recommended service schedule. (ﬁh why, a root cause) •Why? - Replacement parts are not available because of the extreme age of my vehicle. (sixth why, optional footnote)
How Big Is The Opportunity? Total Available Market (TAM) • How many people would want/need the product? • How large is the market be Total Available Market (in $’s) if they all bought? (TAM) • How many units would that be? How Do I Find Out? • Industry Analysts – Gartner, Forrester • Wall Street Analysts – Goldman, Morgan
How Big Is My Slice? Served Available Market (SAM) • How many people need or can use product? • How many people have the money to Total Available Market buy the product Served Available Market (SAM) • How large would the market be (in (TAM) $’s) if they all bought? • Can you reach them? How Do I Find Out? • Talk to potential customers
Some Startups saw this. (SAM) Total Available Market (TAM)
Return on InvestmentAll your CEO cares about … •Returns (measurable changes) •Increased sales •Reduced costs •Achieving the mission (for a non-proﬁt) •Investments (cost of making change happen) •Keeping headcount low •Using resources more eﬀectively •Only bringing in consultants if necessary
REALITY CHECK #2: DIFFERENT MARKETS HAVE DIFFERENT NEEDS What Business Will You Be In?
Three Types of Markets Existing Market Resegmented Market New Market Who Cares? Type of Market changes EVERYTHINGSales, marketing and business development diﬀer radically by market type
Customer Development Steven Gary Blank, Four Steps to the Ephinany Customer Customer Customer Company Discovery Validation Creation Building
Potential RoadmapWhat Would You Move? • Collaboration space • Speaker features/video • Reporting and advancedCapability Admin • Community features • E(mail) to attendees Version 1.0 • Un/Oﬃcial events list • Network notiﬁcations • Basic Admin Soon Later Much Later 39
Evidence Research: Ethnography, user diaries, etc Testing: paper prototyping, ghetto testing, etc You’re good at this part!
Proceed Together ﬔe 3 Skills You Need to Succeed Product Business Tech