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![Discovering Customer Needs
[In]validate your assumptions by:
• Interviewing users
• Observing users in their native
environments
• Manually simulating your
system (“concierge”)
• Rapid usability testing
• Tracking behavior of customer
cohorts (related groups)
13!](https://image.slidesharecdn.com/at4bankston-140122122342-phpapp02/85/Lean-Startup-Tools-for-Scrum-Product-Owners-15-320.jpg)
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Lean Startup Tools for Scrum Product Owners
- 1. AT4 Concurrent Session 11/14/2013 10:15AM "Lean Startup Tools for Scrum Product Owners" Presented by: Arlen Bankston LitheSpeed, LLC Brought to you by: 340 Corporate Way, Suite 300, Orange Park, FL 32073 888 268 8770 904 278 0524 sqeinfo@sqe.com www.sqe.com
- 2. Arlen Bankston LitheSpeed Arlen Bankstonis an established leader in the application and evolution of process management methodologies such as Lean, Six Sigma and BPM, as well as Agile software development processes such as Extreme Programming (XP) and Scrum. He is a Lean Six Sigma Master Black Belt and Certified ScrumMaster Trainer. He also has twelve years of experience in product design, leveraging principles of information architecture, interaction design and usability to develop innovative products that meet customers' expressed and unspoken needs. Arlen has led Agile and Lean deployment and managed process improvement projects at clients such as Capital One, T. Rowe Price, Freddie Mac, and the Armed Forces Benefits Association. Arlen's recent work has centered on combining Lean Six Sigma process improvement methods with Agile execution to dramatically improve both the speed and quality of business results. He has also led the integration of interaction design and usability practices into Agile methodologies, presenting and training frequently at both industry conferences and to Fortune 100 clients.!
- 3. Lean Startup Toolsfor Agile Product Teams Agile Development Practices East, Nov. 14, 2013!
- 4. Meet the Presenter ArlenBankston • Co-Founder of LitheSpeed, LLC • User experience & product development background • 14 years of Agile experience • Lean Six Sigma Master Black Belt • Lately 40% training, 20% each of coaching, product development & management 2
- 5. Agenda Agile & TheLean Startup Movement Validating your Business Case • • • • Getting Out of the Building Business Model Planning Tuning your Solution • • • Landing & Launching Prototyping Building Based on Data • • • 3 Analytics & Testing Customer Service
- 6. Agile & TheLean Startup Movement
- 7. Risks of Agile 1. Backlogitems are not always validated against true enduser needs 2. Critical reliance on a fallible Product Owner 3. Lack of clear advice on how and when to “pivot” 4. IT bias… fall back on what we know: build, build, build 5
- 8. “Lean” Means JustEnough Manage risk by doing just enough to learn, as a product progresses: • How to build the right thing • How to target the right people • How technically viable your idea is • What it’s worth • How to grow it 6
- 9. Lean Startup Movement– A Brief History Steve Blank coined “customer discovery” in the book “Four Steps to the Epiphany” Steve funded Eric Ries’s startup company IMVU in 2004 • • • • 7 In 2010, Alex Osterwalder wrote “Business Model Generation” In 2011, Eric wrote “The Lean Startup”
- 10. Lean Startup ina Nutshell Describe your business case as ! a set of assumptions 1. Build! Ideas! Product! Learn! Measure! Data! 2. Talk to early adopters and show! them prototypes to test assumptions 3. “Pivot” releases based on both qualitative & quantitative feedback 4. Deliver often & with high quality using agile methods 8
- 11. Lean%Startup%at!Capital!One!Bank! 1. Hire only thebest digital talent and then massively empower them 2. Designed new workplace environments to spark innovation 3. Retooled consumer insights generation 4. Don’t create business cases first – Build and test prototypes to create the business case 5. Build concierge-based solutions before we build the technology 6. Measure success as customer engagement rather than unit production Thanks to Gagan Kanjlia, Senior Vice President, Capital One Bank
- 12. Validating your BusinessCase Matching customers, problems & markets
- 13. Most Initial BusinessModels are Wrong PDA encryption software led to…! • ! ! • The Game NeverEnding (a web-based MMORPG) led to…
- 14. Lean + AgileInnovation Process Find the right product market fit… Customer% Discovery% Customer% Valida7on% Pivot Then execute and iterate on it incrementally. LEAN FEATURE VALIDATION AND ELABORATION Product Backlog AGILE FEATURE DELIVERY AND RELEASE
- 15. Discovering Customer Needs [In]validateyour assumptions by: • Interviewing users • Observing users in their native environments • Manually simulating your system (“concierge”) • Rapid usability testing • Tracking behavior of customer cohorts (related groups) 13!
- 16. Problem Interview Talk withearly adopters to learn whether they share your perception of the problem. This is a sample interview script to validate & rank problems with users. 14! Thanks to Ash Maurya, author of Running Lean for this format: http://www.runningleanhq.com/
- 17. MacGyver’s Kitchen What dowe do with unused food in our pantry? Felt that new dieters were the audience. • We split into three teams • We went to Macy’s Cellar looking for people in the cooking section • We went to Whole Foods • We grabbed people off the street in Times Square Results? • We learned: Young singles and families were most interested, and more for variety than diet or budget. • 88% of the people we spoke to gave us their email addresses (35 emails)
- 18. Javelin%Board%for!MacGyver’s!Kitchen! Don’t know what todo with food in pantry Don’t know what to do with food in pantry To validate: To validate: 60% 60% Invalid Customer Valid 20% 7/34 Wrong customer, budget & waste not important. 80% 35/44 Concerned with time, variety, serving size
- 19. Validation Board forExperimentation Plan and track experiments to test your assumptions about customers, problems & solutions. Pivot based upon the results that you see. 17 hBps://www.leanstartupmachine.com/validaHonboard/!
- 20. The Pivot Based onwhat you learn, you might: • Stick to the plan • Target another customer group • Target a different need • Expand or contract feature focus • Change platforms or architecture • Change channels • Kill the idea entirely Persevere, pivot or punt. 18
- 21. Lean!Canvas%to!draJ!your!Business!Model! Draft your businesscase in a simple, single-page format, and adjust based upon the results of your interviews, prototypes and releases. 19 Thanks!to!Ash!Maurya,!Leanstack.com!
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- 24. Tuning Your Solution Quick,cheap ways to validate your approach
- 25. The%MVP! A “Minimum ViableProduct” might be: Learning: Onsite observation, fake menus, ads Pitching: Preorders, comparisons, joint design Experiencing: Concierge, prototypes • • • Later%releases% focus!on!scaling. Early releases focus on quickly & cheaply testing ideas. 23
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- 27. Concierge!to!Test!without!Coding! A manual simulationof your product or service.
- 28. Balsamiq!Mockups!for!LowWFi!Prototyping! Test layouts andflows without coding or graphic design. hBp://balsamiq.com/products/mockups/!
- 29. Easel!for!Rapid!Prototyping! Create clickable prototypesto test interaction flows and basic designs.
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- 32. Unbounce!for!Landing!Pages! You can createdynamic landing pages that help you tune your pitch and garner pre-orders with tools like Unbounce.
- 33. Kickstarter!to!Find!a!Market!&!Funding! Crowdfunding sites likeKickstarter can be used to sharpen your message, test a market and fund independent projects.
- 34. Wufoo,%Qualaroo%for!Surveys!&!Forms! Rapid form builderscan capture customer details or test ideas. More!informaHon!at!Wufoo.com,!Qualaroo.com!
- 35. Building Based onData Analyzing & evolving your production system
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- 37. Customer%Funnels%and!Cohort!Analysis! Study your users’behavior as individuals. “Cohorts” are usually groups that arrive at the same time and share the same initial experience. ! Popular tools: • Mixpanel • KISSMetrics Tracking%reten4on%of%cohorts%over%4me.%
- 38. “Pirate”%Metrics!&!Customer!Funnels! Acquisi7on% How many usersare interested and find you? Preorders, signups, ad responses How is their experience when they do? Successful runs through key use case Ac7va7on% Reten7on% Do they stick around for the long run? 30, 60, 90 day retention by cohort Do they pay? Ratio of paying users or ROI Revenue% Referral% Do they tell their friends? Successful recommendations Thanks to Dave McClure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version 36!
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- 40. QuanHtaHve!A/B%&%Mul7variate%Tes7ng% Split (A/B) testingrandomly presents users with competing versions of specific application pages and features. • See what works best by running parallel experiments • Choose the winning option after appropriate time Header! Sign%up% form% Demo! movie! A% B% Header! Story! Demo! movie! Sign%up% form% Story! 58%%of!visitors! signed!up! 35%%of!visitors! signed!up!
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- 45. Reading%List%–!Lean!&!Agile!InnovaHon! • • • • • • • • Running Lean –Maurya Essential Scrum – Rubin The Entrepreneur's Guide to Customer Development – Vlaskovits The Lean Startup – Ries Discover to Deliver – Gottesdiener The Other Side of Innovation – Govindarajan Four Steps to the Ephiphany – Blank Business Model Generation – Osterwalder
- 46. Contact Us forFurther Information Arlen Bankston Managing Partner,! LitheSpeed Arlen.Bankston@lithespeed.com On the Web: http://www.lithespeed.com http://www.sanjivaugustine.com "I only wish I had read this book when I started my career in software product management, or even better yet, when I was given my first project to manage. In addition to providing an excellent handbook for managing with agile software development methodologies, Managing Agile Projects offers a guide to more effective project management in many business settings." John P. Barnes, former Vice President of Product Management at Emergis, Inc. 44