Creativity is an iterative process that involves: 1) Running quick, cheap experiments through partial or ambiguous goals and an unbounded solution space. 2) Learning through diversity, increments, revolutions, and viewing the process as loops rather than linear flows. 3) Rapidly testing concepts through A/B testing, measurable outcomes, statistical significance, and competitive benchmarking to prove or disprove ideas.

1. Creativity as an Iterative Process
Prepared for MGT150 Technology Management
UC Davis, Feb 2010

2. Yee Lee www.linkedin.com/in/yeeguy
Product Manager
Investor/Advisor
Entrepreneur In Residence

3. Surgeon General's Warning:
This talk primary applies to
consumer internet companies.

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CREATIVITY THEORY

5. Umm, why are we doing this?

6. Why not just start here?

7. Creative Business Tasks
Business planning
Market-entry segmentation
Product/website information architecture
Marketing call-to-action content
Choosing a color pallet
How to implement a query function
How to keep your team motivated
Common characteristics
● Non-deterministic impact on business goal
● No clear “correct” a priori solution

8. How to manage and
evaluate creativity in
dynamic businesses?
● Partial/ambiguous goals
● Unbounded solution space

9. Evolutionary Strategies
Iteration & Learning
Diversity
Increments & Revolutions
Think: loops, not linear flows

10. YOU ARE HERE

12. Jump forward? Look for mines?
Step left? Shout for help?
If (slope > 0) {1 step forward}
Else {rotate 30 right}

13. Wireless Data
Encryption
Financial Data
Encryption Wireless
Money
Transfers
Email
Payments
Email
Payments for
eBay Sellers ???

14. Desktop
Realtime
Photosharing Desktop
Newsticker
Screensaver
Screensaver Newsticker Desktop
Games Chat
MySpace
Photosharing
Facebook
Apps ???

15. Value of Creativity
Diversity of testable ideas
→ provable or negatable
Impactful, normative tests
e.g., “double-down” or “fold”

16. Testing Concepts
Test vs. Control (A/B split tests)
Measurable outcomes (analytics)
Statistical significance (Chi square)
Cohort analysis
Competitive benchmarking

17. Crap. Now what?

18. Creative Advantage
Pace
Run quick & cheap experiments
Fast decision-making
Consistency
Repeatable experimental process
Willingness to drop losing ideas
Motivation
High morale, despite repeated failure
Incentives and games

19. Rapid Iteration Resources
Steve Blank
Four Steps to the Epiphany (available on Amazon.com)
www.sgblank.com
Eric Reis
www.startuplessonslearned.com
Sean Ellis
www.startup-marketing.com
Google:
“customer development”
“lean startup”
“minimum viable product”

20. Creativity as an Iterative Process