This is a presentation made during a 2 day digital business and service workshop in Colombia in March 2014.

1. !
Prototyping digital business and services
Workshop in Colombia
!
26th-27nd of March, 2014
!
Magnus Christensson
Partner, Socialsquare
!
magnus@socialsquare.dk
Twitter: @mchristensson

2. !
Since 2005
pioneering blogs, wikis, visual
sharing, social media, social
intranets, social products and
services, building communities etc.
Digital Strategy and Innovation
Understand - Strategy - Action

3. Understand and prioritize
!
!
Build-measure-learn Launch and repeat
Lean
strategy
Business
prototypes
Build &
Launch

4. 2013 -
Long haul business
innovation made by smart
agile moves
!
• Business model innovation process
• Process and product owner for product dev
and marketing teams
• MVP approach build and launched in 3
months
• Customer development via social media
• Campaign and launch support
• Community building and management
• 1000 new titles published first 6 months
• 10000 monthly downloads of material first 6
months

5. 2012 -
Continuous product
roadmap, user profiles and data
strategy
!
• Product audit
• Competitor and challenger review
• Technology and trend research
• Prototype
• Userprofiles
• Concept development of app
• Interviews and user research
• Strategic process with all stakeholders in the
organization
• Strategical advising the management
• data strategy
11
Planlagt
rejse
Ad-hoc
rejse
Pendling
Finde tog/busWayfinding
Ændringer pårejsen? Kommed alternativer
Planlægningog betaling
PåmindelsePlads reserv.Billetter
Informereom skift
Wayfinding
Ændringer pårejsen? Kom medalternativer
KvitteringFeedback
Lige før
Lige før
Skift
Lige efter
Skift
Før
Relevant i dag
Mulighedsrum
Lige efter
Afgang
Ankomst
Rejsende har brug for at kunne søge,
planlægge og købe hele den samlede
rejse via Rejseplanen. Rejsende har
brug for at blive notificeret omkring
rejsen inden den begynder.
Rejsende har brug for
wayfinding til startdestination og mellem skift på
rejsen, samt notifikationer om
eventuelle ændringer på
rejsen.
Rejsende har brug for
notifikationer på rejsen f.eks.
om hvornår vedkommende skal
af. Hvis der er ændringer på
rejsen skal Rejseplanen tilpasse
sig disse og komme med
alternative forslag.
Den rejsende kan orientere sig
og få notifikationer f.eks. i
forhold til mulige eller planlagte
returrejser.
Rejsende har typisk brug for at her-
og-nu kunne finde en destination og
købe den samlede rejse dertil. Typisk
vil man søge og købe rejsen mobilt.
Ad-hoc rejsende har typisk
brug for her-og-nuinformation omkring de
forskellige trin i rejsen, som
man kommer frem.
Rejsende har brug for
notifikationer på rejsen f.eks.
om hvornår vedkommende skal
af. Hvis der er ændringer på
rejsen skal Rejseplanen tilpasse
sig disse og komme med
alternative forslag.
Den rejsende kan gemme
destinationer, såfremt disse er af
særlig relevans eller interesse.
Rejsende har typiske ikke brug for at
søge på Rejseplanen, men har et
behov for at kunne trække
information til sig baseret på tid og
sted, at kunne se afvigelser fra
køreplanen via mobil
Rejsende har typisk brug for
informationer omkring
ændring på rejsen. og overblik
over alternativer.
Den rejsende skal have
specifikke o
Forskellige behov identificerer Rejseplanens mulighedsrum
I dag er Rejseplanen kun relevant i forhold til planlægning og ved eventuelle skift på rejsen. De rejsende
som har forskellige rejsetyper har dog forskellige behov. Disse præsenteres yderligere i modellen neden.
Disse anskueliggører også det mulighedsrum Rejseplanen kan arbejde med hvis man ønsker at levere mere
relevant information i forbindelse med rejsen.

6. 2014 -
Global learning platform for
the activist youth
!
!
• User research
• Concept and product development
• agile sprint development with heavy end-user
involvement
• Organization building in a global
organization
• Community and social design
• Content and launch support

7. 2013 -
Making social happen in DI.
Building a digital
organisation through
experiments
!
• Social media strategy
• Consulting and driving 5 Social media
spearhead projects in different business units
• Using LinkedIn as a strategic platform
• Education in community management
• Developing governance and guidelines
through learning from experiments

8. 2013 -
Understanding digital tourism
from where the action is
• Working closely with Wonderful Copenhagen R&D
and Marketing department
• Digital strategy for community building
• Mapping the digital customer journey
• +60 interviews with tourists
• Providing deep quantitative and qualitative customer
understanding of the digital tourist
• Enabling internal units to design, plan and execute
activities on digital platforms

9. How the internet and the digital
domain is changing service-related
business as we know it.

10. Digital Strategy and Innovation Agency
Helping The Challengers Disrupt
Filed for bankrupcy 2012
Iphone launched in 2007
Flickr launched in 2004
Instagram launched
in 2010
1998 2000 2002 2004 2006 2008 2010 2012
0$
20$
40$
60$
Kodak share price
133 years old
Invented the digital camera
+ 300.000 Facebook likes

11. 2 years after launch used
by every 4. th dane
7 months after launch in
400.000 Danish households

12. If we look at the education market…

20. You might say that this change have
two angles…

21. A technology (or rather web) angle

22. The hotel
industry
made by web
people

23. Culture
support
made by web
people

24. Employment
services
made by web
people

25. Banking
made by web
people

26. And a service angle
(which often is pretty social or collaborative)

27. Peer-to-peer
parking

28. Peer-to-peer
lending
services

29. Peer-to-peer
car sharing
service

30. Services
The service paradigm
shift happen in the 80s
• Fewer tangible components
• Difficult do judge quality before purchase
• Simultaneous production and consumption
• Time-dependent
• No transfer of ownership

31. Customers pay for outcomes or solutions to
their needs or challenges.
!
This is increasingly through services,
where technology and sociality adds new
perspectives to the value services can provide
or the economy of scale behind them.

32. “Software Is Eating The World”
Marc Andreessen

34. If you look five years out,
every industry is going to
be rethought in a social
way. You can remake
whole industries. That’s
the big thing.”
Mark Zuckerberg
www.ft.com/reports/connected-business-dec2010

35. What does this means for how we
develop businesses?

36. There was not much literature on developing
new businesses a few years back.
!
Most academia focused on managing existing
businesses.
And the literature that was there did not take the
digital disruption we see today in to account.

37. “An organization dedicated
to creating something new
under conditions of extreme
uncertainty”
“A startup is not a smaller
version of a large company”
!

38. Ash Maurya Steve Blank Eric Ries Jason Fried David Heinemeier
We are inspired by…
and many more…

39. !
Meet the
challengers
!
http://www.socialsquare.dk/
startup-research-project/

40. We* believe we can learn a lot from
how a start-up is developing their
business and services.
!
*) so does General Electric, Toyota, UK Government Digital Services,
Microsoft and many other incumbents and large organizations.

41. There are typically 2 types of start-ups

42. Tech-first
(like Google) are those that need to be built
to show they work

43. Service-first
(like Airbnb or Facebook) are those that
depend on a service or community

44. If you’re not a developer…
fight the tech-first mentality with a
service-first business approach

45. A startup have…
!
• Limited ressources
• A unknown product meeting an unknown need
• A lifetime dependent of reaching its customers

46. Therefore a start-up works towards…
!
• Finding a plan that works
• Risk minimizing
• Ressource optimizing
• … through customer focus

47. • Minimize the time in
each iteration.
• Iterate as many times
as possible

48. A approach related to design thinking
!
• Knowledge generated through action
• Knowledge building process + knowledge
using process
• Focusing on what and how rather than why
• Focusing on humans
• Having a holistic, systemic and visual
approach

49. CUSTOMER
DISCOVERY
Problem/
Solution fit
3 stages
CUSTOMER
VALIDATION
Product/Market fit
CUSTOMER
CREATION
Scale

50. “Before investing months or years of effort
towards building a product, the first step is
determining if this product is something
worth doing”
Ash Maurya

51. PROBLEM/
SOLUTION FIT
High-touch,
Market risk,
Qualitiative
First: problem/solution fit
• No clear understanding of the problem
• Mitigate the market risk
• Goal: Find a problem worth solving and
discover customers
• Through formulating a set of hypotheses…
• …and then testing them hands-on through
customer interviews
• Can take weeks or a couple months to
complete

52. From a lot of potential users come a few customers
100 users
10 customers

53. PRODUCT/
MARKET FIT
Self-serve,
Tech risk,
Quantitative
Then: product/market fit
• Go from hands-on and high-touch to
automated service and high-tech
• Mitigate the tech risk
• Goal: to build something people want and
validate your business model
• Through iterations of your service (MVP)
• …and increased customer acquisition
• The riskiest part of the work which can take
months or years to navigate

54. Developing your service and business
PROBLEM/SOLUTION FIT
High-touch,
Market risk,
Qualitiative
100 users
10 customers
1000 users
100 customers
10.000 users
1000 customers
100.000 users
10.000 customers
PRODUCT/MARKET FIT
Self-serve,
Tech risk,
Quantitative
PHASE 1
PHASE 2
PHASE 3
PHASE 4
TIME
GROWTH
This model is inspired by and adapted from Ash Maurya’s 10x Product Launch Plan
FOCUS

55. You all have services and
businesses you want to launch
- or you want to help others
develop their businesses

56. Lean canvas

57. Business model canvas

58. Lean canvas
Problem Solution
Key Metrics
Value
Proposition
Unfair advantage
Channel
Customer
segments
Cost structure Revenue streams
Existing alternatives Early adopters

59. Lean canvas
Problem Solution
Key Metrics
Value
Proposition
Unfair advantage
Channel
Customer
segments
Cost structure Revenue streams
Top 3 problems Top 3 features
Key activities you
measure
Single, clear
compelling
message that
states why you
are different
Can’t be easily
copied or bought
Path to customers
Target customers
Acquisition cost
Distribution cost
People, etc
Revenue model
Gross margin
Etc.
Existing alternatives Early adopters

60. Lean canvas
Problem Solution
Key Metrics
Value
Proposition
Unfair advantage
Channel
Customer
segments
Cost structure Revenue streams
Top 3 problems Top 3 features
Key activities you
measure
Single, clear
compelling
message that
states why you
are different
Can’t be easily
copied or bought
Path to customers
Target customers
Acquisition cost
Distribution cost
People, etc
Revenue model
Gross margin
Etc.
Existing alternatives Early adopters

61. Lean canvas
Problem Solution
Key Metrics
Value
Proposition
Top 3 problems Top 3 features
Key activities you
measure
Single, clear
compelling
message that
states why you
are different
Customer
segments
Target customers
Existing alternatives Early adopters

62. Excercise
Develop the problem area of
your lean canvas

63. Problem
Problem
Top 3 problems
Existing alternatives
Are we working on a problem worth solving?
What do we think is the problem we are
trying to solve?
!
!
!
!
What existing alternatives is there today?

64. Excercise
Develop the solution area of
your lean canvas

65. Solution
What do we think is the right solution?
What 3 features does it have?
How does it work?
How does it look?
Solution
Top 3 features

66. “A Minimum Viable Product is that version
of a new product which allows a team to
collect the maximum amount of validated
learning about customers with the least
effort”
Eric Ries

68. How Vayable was developed…
1. Finding the guides
Jamie Wong (the founder) started locally in San Francisco and her first step was finding
tour guides. She talked to friends, friends of friends, and travel bloggers to be guides in
SF. She even hosted meet-ups to find interesting people.
!
2. Finding the tourists
With some tour guides on hand, she set out to find tourists. Her initial batch of tourists
came from a genius move: she hosted Airbnb guests, figured out what they wanted to
see, and set up tours for them.
!
3. Set-up and deliver tours
She was able to find these things out and get people to pay her real money with no tech.
Just a blog with a bit of info, a couple pictures of the guides, a few video testimonials,
and a whole lot of hustling.

69. MVP
• Explore only ideas that require no more tech than maybe a
wordpress blog or simple website.
• Think about how to make a service or community work in a tiny
way.
• Provide your service 100% manually until you just can’t do it
without more people or tech.

70. How can we make a MVP for a
service?

71. Service blueprints
Its a way to specify and detail each
individual aspect of a service.
This involves creating a visual schematic
with both user and service provider
perspectives.

72. Service phase 1 Service phase 2 Service phase 3 Service phase 4 Service phase 5
Service Blueprint
Group:
Date:
Version:
Customer
activityTouch-pointService

74. Developing touch-points
DEVELOP SKETCHES DESIGN WIREFRAMES DESIGN PROTOTYPES

75. AuthorConsultantBlogger Business
owner
Scientist Cultural
institution
Professional
Speaker
yes!
no!
?!
no!
no!
yes!
yes!yes!
?!
Company

76. Excercise
Identify your customers

77. Customers
Who is having the problem?
!
!
!
!
!
Who really want your service now?
Customer
segments
Target customers
Early adopters

78. From a lot of potential users come a few customers
10 users
1 customer

79. Excercise
What is your value
proposition?

80. Unique value proposition
What do we offer?
!
The UVP is a marketing promise.
You develop it from your hypothesis about the
Problem and the Solution.
Value
Proposition
Single, clear
compelling
message that
states why you
are different

81. Value proposition
Template
“We help X do Y by doing Z”
!
Example
We help manufacturers develop great products
quickly by giving them access to 3D printers as a per
hourly service fee

82. How do you test your MVP?

83. Why are we doing interviews
!
• To make sure you have a problem worth solving and what
that problem is
• To identify those who have the problem - but especially
those who are willing to pay for it now (the early
adopters)
• To understand what a solution to the problem might be
and to validate your solution (MVP)
• To test pricing (later on)

84. Interviews
• What questions should you ask? Well, what do you want to know?
(it’s a good idea to look at the hypothesis you identified yesterday)
• Talk to the right people
(the list of customers from yesterday should be able to answer your questions)
• Write an interview guide
(Cover all your areas of interest and make it comparable across interviews)
• Get feedback on your prototype
(Show/tell them how the service works, use your blueprint or mock-ups of touch-points)
• Listen, don’t pitch your idea
(don’t sell, don’t use leading questions, but open-ended questions. Be curious.)
• Summarize what you learn
(create overview, identify patterns, conclude and update your documents)

85. Testing prototypes
Interview guide Prototype
Interview
summarizes
Interview
patterns

86. Excercise
Establish an interview guide

87. Interview guide
• What do we want to know?
(it’s a good idea to look at the different hypothesis you developed yesterday)
• How can you test your hypothesis related to the problem you are trying to solve?
• How can you test your hypothesis regarding the solution?
• Does our value proposition resonate with them?
• What are your early adopters attitude and expectations towards the service?
• What do they use today that is similar to what you offer? And why, do they use it?
• What barriers hinders your early adopters from using your service?

88. Documenting and taking the
consequences of what you’ve
learned.

89. Updating your documents is important…
!
• To document the learning you have made
• To have a systematic way of developing your business
idea and service
• To update your interview guide and your focus of
learning

90. How does the input we received effect our…
!
• View on the problem?
• Ideas about the solution?
• The design of our service blueprint or touch-points?
• Knowledge on our early adopters?
• Hypothesis on what they find valuable?
• Value proposition?
!
• What new questions do you have to ask?

91. Excercise
Fill out the metric area of your
lean canvas

92. Metrics
What are you measuring?
Key Metrics
Key activities you
measure

93. Dave McClure, pirate metrics
Aqcusition
!
Activation
!
Retention
!
Referral
!
Revenue
How do users find you?
!
Is their first experience with you great?
!
Do they come back?
!
Do they tell their friends and colleagues about you?
!
How do you make money?

94. Focus on value
before growth

95. Value metrics
Aqcusition
!
Activation
!
Retention
!
Referral
!
Revenue
How do users find you?
!
Is their first experience with you great?
!
Do they come back?
!
Do they tell their friends and colleagues about you?
!
How do you make money?

96. Excercise
Please, have an increased focus on the solution
and these metrics in future interviews
!
• How do we deliver a great experience for
the customer?
• How do we make sure they want to come
back?
• How much do they want to pay?

97. Towards product/market fit
and thoughts about scaling

98. From service need to scalable business
PROBLEM/SOLUTION FIT
High-touch,
Market risk,
Qualitiative
100 users
10 customers
1000 users
100 customers
10.000 users
1000 customers
100.000 users
10.000 customers
PRODUCT/MARKET FIT
Self-serve,
Tech risk,
Quantitative
PHASE 1
PHASE 2
PHASE 3
PHASE 4
TIME
GROWTH
This model is inspired by and adapted from Ash Maurya’s 10x Product Launch Plan
FOCUS

99. Scaling
• Launch a “teaser” site with sign-up and start building e-mail list
early
• Use your 10 early adopters to help find the next batch of
customers
• Supplement the rest by setting up more interviews using your
email list
• Collect customer testimonials / case-studies
• Start building a marketing website
• Test early channels for user acquisition
1000 users
100 customers
DESIGN OF WIREFRAMES
DEFINE MINIMAL
VIABLE PRODUCTDESIGN OF PROTOTYPES TEST OG VALIDATION
OF HYPOTHESES
ANALYSIS AND
ADAPTION

100. Scaling
10.000 users
1000 customers
• Use your marketing website to sign-up users
• Use your learning to define multiple pricing plans
• Manage the full user lifecycle from visitor to sign-up to paid
• Move towards a more automated self-service model
DEVELOP BETA &
COMMERCIAL RAMP-UP
VERSION
DESIGN OF SOCIALITY
EVOLVE MINIMAL VIABLE
PRODUCT
DEFINE CORE-LEVERAGE
AND BUSINESS CASE
DEFINE LAUNCH CRITERIA &
PARTICIPATION ACTIVITIES

101. Scaling
100.000 users
10.000 customers
• Start tackling scaling risks
• Start testing other customer acquisition channels
• Optimize cost structure
• Product/Market Fit means a shift from finding a plan that works
to accelerating that plan and focus on growth (e.g. new metrics)
LAUNCH EVENTS PR
ESTABLISHING
PARTNERSHIPS
SCALE THE TEAM

102. What did you learn?

103. !
Thanks and goodbye
!
!
!
Magnus Christensson
Partner, Socialsquare
!
magnus@socialsquare.dk
Twitter: @mchristensson