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UX SA Conference 2015: Innovation Toolkit

The document discusses strategies for driving innovation in the digital banking sector, emphasizing the importance of understanding customer experiences and leveraging exponential technologies. It highlights the need for organizations to create environments that foster innovation, adopt agile methodologies, and focus on customer-centric approaches. The text also outlines various innovation processes, including problem discovery and customer journey mapping, while stressing the significance of rapid prototyping and user research.

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ANINNOVATORSTOOLKITPhil Barrett. 
 Associate director, Deloitte Digital Africa
DELOITTEDIGITAL:
 LOCALPRESENCE/GLOBALNETWORK
DIGITAL
 MARKETING Attract, intercept, engage DIGITAL
 PRODUCT DIGITAL
 BUSINESS DIGITAL
 OPERATIONS Sell, deliver, service Organise, process, supply Innovate for new value “DIGITAL?”
TOOLKIT?
AUTILITYBELT ScottLondon
INOURUTILITYBELT § Words to make innovation happen § Organising a place for innovation § Structure and process so you know where you are § Mapping the customer experiences § Ideation techniques § Experimentation with hypotheses § Prioritisation with impact maps
TOOLSPROVIDEDBY…
WORDSTOSTARTINNOVATIONMOVING
DISRUPTION?
NOTSEEINGDISRUPTIONYET? Digital Banking Disruptors Will Not Grab Much Market Share . . . Yet Make no mistake, digital disruption is coming to banking, and it will reshape the industry in every country. But new entrants and disruptors will not grab major market share from established banks in 2015. […] digital teams should use 2015 to innovate and get ahead of the curve. Forrester
THEERAOFEXPONENTIALINNOVATION Anything information-enabled starts to follow Moore’s law: doubling in power every 1-1.5 years. And everything is becoming information enabled.
EXPONENTIALSSNEAKUPONYOU Source:SingularityUniversity
FOREXAMPLE…THEHUMANGENOMEPROJECT Started 1990 Target: 15 years to sequence a full human genome. After 7 years: 1% complete. Experts pointed out: 700 years to finish the sequencing!
ONEPERCENTMEANSHALFWAYDONE Ray Kurzweil: “That means we’re halfway done.” The amount sequenced was doubling every year. The project was completed in 2001, early and under budget. 696 years earlier than expected by the experts.
EXPONENTIALORGANIZATIONS:CONCEPTS
MASSIVETRANSFORMATIVEPURPOSE TED: “Ideas worth spreading.” Google: “Organize the world’s information.” X Prize Foundation: “Bring about radical breakthroughs for the benefit of humanity.” Quirky: “Make invention accessible.” Singularity University: “Positively impact one billion people.” Drive outward-focussed, exponential thinking. Rally crowds, fan, teams and talent.
Machine learning Genomics Biometrics Internet of Things Blockchain Robotics3D Printing Drones VR Wearables Connected Cars Mobile Analytics Social Cloud Web Content EXPONENTIALTECHNOLOGIES Super Disruptors… Exponential Disruptors…
Kodak invented the CCD: key to digital photography. In 1981, they investigated whether this would turn photography on its head. THEMOSTDANGEROUSASSUMPTION? During the 1980s… • The quality of prints from electronic images will not be generally acceptable to consumers as replacement for prints based on the science of photography • The consumer’s desire to handle, display, and distribute prints cannot be replaced by electronic display devices. • Electronic systems (camera and viewing input device for TV) will not be low enough in price to have widespread appeal. KODAKWASRIGHT**FOR15YEARS
THEMOSTDANGEROUSASSUMPTION: WHATUSEDTOBETRUE,STILLIS.
PITCH:FEAROFLOSS
PITCH:3OPPORTUNITIESFORGAIN • Operate more efficiently, to maintain margin. • Provide an excellent, joined up, multi-channel service experience, to gain new customers and extend customer LTV. • Create and grow new markets and products that match changing customer needs and expectations.
ORGANISINGAPLACEFORINNOVATION
INNOVATION:ANEXCUSEFORMESSINGABOUT?
WHATKINDOFINNOVATIONAREYOUREADYFOR? Finding worthwhile new things to do. Finding better ways to do what we already do. 10% 10x “Optimisation?” “Disruption?”
UBERISJUST“IMPROVEDTAXIS.”BUTTHEIMPACT…!
“ Scott Berkun, 
 The myths of innovation All you need is the ability to make things that are good consistently, since few companies do. DOTHINGSBETTER
“ A corporation is a permanent organisation designed to execute a repeatable and scalable business model. Innovation teams and startups are temporary organisations designed to search for a repeatable and scalable business model. Steve Blank The godfather of lean innovation BUT10XINNOVATIONNEEDSADIFFERENTM.O.
“Your organisation’s world-class capabilities in brand, supply chain, distribution, sales and financial metrics are all tailored to execute the existing business model, not to help search for new ones. The resources and capabilities optimised for execution interfere with the processes needed to search for a new business model. Steve Blank The godfather of lean innovation
““In large organisations, just one out of fifty managers can resist an idea—and in doing so, kill it. By comparison, if just one of fifty investors likes a startup, it’s off to the races.” Robert Goldberg VC, Founder IdeaLab, Senior exec Zynga LARGEORGANISATIONS:“NO”MACHINES
BUTNO-ONEELSEISMAKINGANEWPRODUCTLIKETHAT! There’s no social proof for a real innovation. The whole point is that no-one else is doing it. if no one else is doing it, celebrate!
ENTERPRISEINNOVATIONHORIZONS EXPLORENEW BUSINESSIDEAS Ho rizon 3 SCALEACROSS THECHASM Ho rizon 2 EXPLOIT Ho rizon 1
HORIZON3GETSMEASUREDDIFFERENTLY ACQUISITION ACTIVATION ACTIVITY/RETURNVISITS RECOMMENDATION REVENUE Spells “AAARRR!” Pirate metrics!
DISRUPTIONINLARGERORGANISATIONS • Create organisations at the edge of yours, to disrupt other markets. • Create internal and external organisations to attack the mothership and each other. • Create a lab for breakthrough, moonshot technologies at a budget price.
“ ADVANCED:AMAZON’SINSTITUTIONALYES If you’re a manager at Amazon and a subordinate comes to you with a great idea, your default answer must be YES. If you want to say no, you are required to write a two-page thesis explaining why it’s a bad idea. In other words, Amazon has increased the friction entailed in saying no, resulting in more ideas being tested (and hence implemented) throughout the company. Salim Ismail on an idea instituted by CEO Jeff Bezos and CTO Werner Vogels
“ CASESTUDY:BBVA Creating a truly groundbreaking, 'customer-centric,' rapid, simple and efficient model of interaction, in which the customer receives the best his bank has to offer, requires constant efforts to innovate in both the organisational and cultural arena and in the technological field. Francisco González, 
 BBVA CEO and chairman since 2001
BBVA’SINNOVATIONAPPROACH • Steering committee sets priorities and accepts applications for funding • Agile throughout the bank: planning and delivery. • Build an architecture that facilitates rapid front end dev/release cycles. Strong services layer needed. • Customer metrics and adoption for each digital innovation. • Promote the right culture: gather ideas from everyone, deliver change with agile, empower with the right tools, link collaboration and innovation to staff incentives. • Create robust redundancy with: Employee involvement, academic and agency ties, innovation centre, open talent incubator, hackathons, beta community, venture fund, acquisitions. • Champion innovation with innovation centre, blogs, magazines, competitions…
INNOVATIONPROCESS
IFYOU’REBUNGEE JUMPING… …USEACORD!
“ FORSUCCESS,INNOVATECUSTOMER-FIRST You’ve gotta start with the customer experience and work backwards to the technology. Steve Jobs
AGILEWASNEVERSUPPOSEDTOMEANTHIS Build Budget Market feedback
Where do 
 backlogs 
 come from? 
 backlogs 
 come from? Where do
• Their own/organisational hallucination. • Adding complexity: “And we could also…” • Forgetting customer contact and even analytics. DON’TLISTENTOHIPPOS
DON’TGETMISLEADBYCUSTOMEROPINIONSEITHER The infamous Ford Edsel
COUNTERACTFANTASYWITHEVIDENCE
Team vision and discipline 
 over individuals and interactions 
 over processes and tools Validated learning 
 over working software 
 over comprehensive documentation Customer discovery 
 over customer collaboration 
 over contract negotiation Initiating change
 over responding to change
 over following a plan BEYONDTHEAGILEMANIFESTO — Kent beck, 2011
A LEANINNOVATIONPROCESS Stage 1 Stage 2 Stage 3 Select the right problems to solve, and solve them elegantly. Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. Human-centred design Lean startup Lean UX
“LEAN”ACTUALLYMEANS… • Deliver small batches quickly. Everyone can perceive progress, cause and effect when they happen quickly. • Eliminate waste. Don’t make or do things that will not get used in the process of delivering value to customers. • Learn and improve. Make sure that you inspect the impact of your steps, through measurement and observation. • Empower the team. The people close to the problem are the best positioned to understand and solve it. • Build quality in. Focussing on quality ends up delivering results faster. • See the whole. Considering just one part of a system in isolation will yield unpredictable results.
LEANSTARTUP BUILD MEASURE LEARN
LEANINNOVATIONACTIVITIES Stage 1 Stage 2 Stage 3 Select the right problems to solve, and solve them elegantly Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations Software: MVP experiments. User-tests.Observe users, analyse patterns, identify problems. Mock-ups.
 Technical PoCs. Pirate metrics. User tests. Production software releases. Pirate metrics. User tests. Business metrics. Measure Build Maps and models Learn Solutions that are worth it. Who wants it, in what form and how much they’ll pay. Detail: Features, forms, tweaks that work . Problems and opportunities.
WAITINGFORFEEDBACKISNOTENOUGH Feedback Silence No opinion Tentative opinion Strong opinion Not using Trying out Casual user Evangelist/Beta group User
MVPEXPERIMENTS F2F/121 • Lab test a mockup • Concierge • Wizard of Oz • Storyboard • Prototype spaces • Catalogue/data sheet/home page Quant/online • Call to action • Ad tracking • Video and link • Split testing
IMMERSIONANDOBSERVATIONISSUPERLEAN
RAPIDPROTOTYPINGANDUSERRESEARCH:SOLEAN!
No plan survives contact with the enemy. – Helmuth von Moltke the Elder Prussian Army Field Marshall “
JOURNEYMAPS
Stage 2 Stage 3 Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PRODUCTMARKETFIT SCALEANDEXTEND Stage 1 Select the right problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. STAGES0AND1
“There are no facts inside the building. The facts exist outside the building. Get out of the building. Steve Blank, 
 Customer development guru
MAPCUSTOMERJOURNEYS
4KINDSOFJOURNEYMAPPING Day in the life: Understand the full breadth of customer activity in your target space. Discover needs no-one is addressing. Great for innovation. As-is customer experience: Map the current customer experiencer your organisation offers. Spot the optimisations, and maybe innovations. Customer experience vision: Map the experience you want to offer. Great for ideation and alignment. Service blueprint: Understand what it will take to deliver the experience you want to, with backstage people, process and technology. Great for programme management and scoping.
“DAYINTHELIFE”JOURNEYMAPPING The whole process, not just the parts where they touch your organisation. That opens up more opportunities for innovation.
Journey model Journey stages Search engines Google Social media Facebook Referrals TripAdvisor Friends Staff Public relations TV commercials Radio Questions Where do I want to go? Who can I trust? Where can go to get a beach? Discover> Explore> Decision> Book / P> Evita The family mom Brian & Sally The miserly couple Steve The business traveller Overall boo Questions What do I do with this? Where do I get customers number? Do I add 15% onto my rate? How do I reply to this quote? Will the customer get it if I apply to this email? How do I block this out in calendar? Why is the customer asking for more people than I can accommodate? Where will this go? Do I have to complete my profile now? This is confusing who can help me? Do I have to list each establishment one by one? I only have hard copy photos? Do you have a photographer? Does someone come to vet the place? Can I specify race or gay etc? Now what? Can I change my login details? How do I find out my GPS location? Patricia Conservative B&B owner Brad Live fast, die young agent Walter Know it all retired businessman How does it work? What will I need? How long will it take? Is it safe? Is the person coming to stay legit? Do I have to accept all quotes? What is a live booking? How do I update rates and availability? Why doesn't it look like I thought it would? Journey stages Discover> Evaluate> Register/ List> Live> Book/>Decision> Search engines Google Social media Facebook Public relations Adverts Sales calls Request a quote Book now List your establishment Profile Vetted Establishment page Profile not complete Declined I want to see interesting pictures. Where can I go that has hot weather right now? What has a pool? Can I imagine myself in this place? Is it safe? Gather> Overall decision: Request a quote: Quote received: Inspiration Holiday type Vibe Distance from me Mountain Forrest Sea (beach) Remote Location details List of Establishments Photos Reviews Price range Availability # people it sleeps # of beds in rooms Location Features Establishment detail page Recently Viewed ( Wish list ) Quote received Quote needed Book now Submit quote Ignore quote View other EST… Cost Benefits Contract Commitment Will it work with what I have got? What will I need Reviews Who will give me the right price? I am going to Langebaan where can I stay? Distance? Where can I go this weekend? Where can I get a good deal? What accommodation specials are available? What are the benefits to using SafariNow? What is available in my area? Is there wifi? Where can I go to be near a river? What is available two hours drive from me? What is like Montagu? What is happening in Ballito? What can I afford? Who can give me the best price? What do other people think? How does it look? Which one looks the nicest? What is the view like? Does it give me food? Can my kids be entertained while I chill with my man? Can I take my dog? Can I take my children? Which one looks the nicest? How long will this take? Is it the price right? Is it near the beach? What are people saying about this place? Recent reviews? Is the person reviewing like me? Why can I not see a price? Can I get it cheeper direct? Does it have wifi? Can I book right now? Is this place real? How quickly will they get back to me? How do I know what my room preference is? Do I have to select a room? Who is this quote going to? Why must I enter my contact details? I just want to know availability? Where is my quote - not immediate? Why should I book with SafariNow? What do I do now? How do I pay? Have they answered all my questions? I do not understand the quote? What does the total mean? Why is this different to online? What does it include? Why have you not answered my questions? Is this the actual price? What room am I getting? How does this compare to other quotes? What currency is this quote in? What is the deposit? Is my card sa When is the Why I am giv guaranteed How can I tr Is my bookin Why did you space? How do I kn How else can Why is my b Is my bookin Will it work with my systems? How much does it cost? How long will it take? What do other establishments think? Are they reputable? How will I get paid? Why do I need to do this? Do you really need all the info? What do you want photos of - establishment and specifics (rooms)? Why can I not see my page now? Why do you not offer sliding scale? Why can I not just list right away? Why do you require municipal documents? Do I have to complete my profile now? How long is this going to take? Can somebody else do this for me? Can you post the photos for me? Can I upload a photo from my phone? Why can I not see my page now? Other: I haven’t put my establishment up why is it on your site ? Why should I update rates and availability? Why doesn't it look like I thought it would? Can somebody else update my rates and availability for me? Why is this so time consuming? Why doesn't it look like I thought it would? Why can’t I edit my description? Why have you changed my description? Why is that photo first? How much are they going to charge me? Will the customer get it if I apply to this email? Why am I getting an enquiry for dates that are already booked? Why can I not contact customer directly? Why does my number not appear? Can I give a discount? Who am I sending it to? I don’t have availability at this listing but I do at another? I can recommend a place for you? When am I getting my money? Please stop smsing me. Do you block this out in my calendar? Why should I reply to a quote that I am not accepting? Other: I am listed on SafariNow? I don’t own this anymore how do I cancel it? How d Help, w Can I s Why is Why is Why am sms’s? Will th 15% is Why ar booked Accept quote Decline Quote Decline Book now You ha book Accept / Pseudo real time Real time (Eg: fully booked) Offer something else? Ignore quote Send message Query Editorial Pictures Reviews List of locations EndusersEstablishmentManagers/Owners 1 2 3 4 6 5 10 a ba c VISION+PERSONAS+ECOSYSTEM
JOBSTOBEDONE A customer job could be: • The tasks they are trying to perform and complete, • The problems they are trying to solve, • Or the needs they are trying to satisfy. Lift my right finger Become a fully- self-actualised human being What is the job that a customer is hiring your product to do?
PAINS Lower-than-expected benefit. “The food was cold when it finally reached us.” Lower-than-expected easiness. “I can’t get the necessary documents.” Emotional: “Running at the gym makes me feel so bored.” Social: “It’s embarrassing to have to ask for directions.” Negative expectations. “I won’t run it because it will probably mess up my hard drive.” Things that annoy your customers - and might stop them from taking action. Benefit - effort - social - emotional - financial.
GAINS Expected and required. “I can make a call on my smartphone.” Desired. “I wish all my devices would work together seamlessly.” Unexpected. “I didn’t ever think a touchscreen smart phone linked to an app store could exist.” Social. “People would respect me if I drove a BMW.” Emotional. “I will be happy when I have a puppy to love.” Benefit - effort - social - emotional - financial.
AGREATCUSTOMEREXPERIENCEDELIVERSONTHREELEVELS Basic expectations 
 Perform its primary function elegantly, completely and consistently Power and performance
 Deliver new value through new tools & systems Beauty and enchantment
 Enchant customers with beauty, thoughtfulness and care AKA the Kano Model
We feel first, and our thinking is defined by what we feel. Stylish products and environments are perceived to be: • More valuable, even when they fail • More trustworthy and credible • Easier to use ENCHANTMENTMAKESPEOPLEENGAGEBETTER
BUTDEEPDELIGHTCOMESFROMFUNCTION than expected EASINESSMORE than expected EASINESSLESS than expected BENEFITMORE than expected BENEFITLESS Surprise, delight
 Loyalty Disappointment, anger, Churn BJ Fogg’s diamond of user delight Satisfaction Meets expectations
IDEATION
PROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. Stage 2 Stage 3 Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PRODUCTMARKETFIT SCALEANDEXTEND Stage 1 Select the right problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFIT STAGE1
IDEATIONISATHING.WITHALONGHISTORY. Aristotle Guildford Osborn ParnesChamberlin Dialogue Multiple working hypotheses Divergent thinking Brainstorming How might we?
TWODISTINCTPHASESOFDESIGN Divergent thinking Convergent thinking
6UP(ORCRAZY8S):HAVELOTSOFIDEAS Divergent thinking tactic 1
REMOVEBOUNDARIESANDBLOCKAGES Divergent thinking tactic 2
EXTERNALISETHINKING Remove boundaries and blockages
PRESUMEVALUE,EVENWHENIT’SNOTOBVIOUS Remove boundaries and blockages
BUILDINSTEADOFBLOCK Remove boundaries and blockages
PROVOCATIONANDSTIMULI Divergent thinking tactic 3 Automatic Manual People Numbers Money Outcomes Visuals Numbers Avoid pain Attain goal Choice Simple Social Private
“HIT”HEURISTICIDEATIONTECHNIQUE Dimension 2 value Dimension 2 value Dimension 2 value Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Edward Tauber’s HIT technique, 1972 Explore idea space systematically. Stimulate ideation through strange combinations.
6-5-3/3-12-3/X-Y-Z Take time to frame the problems, assemble stimulus. Time to sketch problems alone. And time to present iterate problems.
Machine learning Predictive analytics Biometrics Mobile 3D printing Cloud Genomics Sensors Blockchain iBeacon Augmented reality Wearable Confidence Personal Relationship Transparency Tedium Self service Timing Efficiency Delight Trust Visualised Free SOMESTIMULITOCROSS
DEMATERIALISATION Taxi Fleet Research Libraries Classifieds Book Stores Long Distance Hotel Chains
DEMONETISATION Your business is shown to drivers approaching. You decide how much you’re willing to pay for each view as well as your total monthly spend. It’s super simple to set up and see results. makes games available for free Candy Crush generates daily revenues of ~$979 000 Source: Singularity University
DEMOCRATISATION 3D Printing will democratise the ability to distribute personalised production around the planet Leveraging individuals inputs to build and influence other institutions’ potential success
Your turn: Ideate 1: Set up the challenge Start alone. Pick a pain or a gain to tackle (could be a theme or group of related ones.) Pick two “easy/appealing” stim words: one from blue and one from purple. Then pick two “unpleasant/ difficult” stim words. Make a grid. Then stop.
Machine learning Predictive analytics Biometrics Mobile 3D printing Cloud Genomics Sensors Blockchain iBeacon Augmented reality Wearable Crowd Dematerialisation Confidence Personal Relationship Transparency Tedium Self service Timing Efficiency Delight Trust Visualised “Free”
Your turn: Ideate 2: Ideate and iterate Design as many ideas for your grid as you can in 10 minutes. If stuck, try another square. “How might we…?” Pick a partner and share you ideas. Work together for 2 minutes to add new ideas for person 1. Work together for 2 minutes to add new ideas for person 2.
SLEEPONIT James Young, Advertising Man of the year 1946
PRIORITISATION
“ HIMAGAIN Real artists ship. Steve Jobs
Stage 1 Select the right problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. STAGES2&3 Stage 3 Roll out to more users, and roll out extended features. SCALEANDEXTEND Stage 2 Find the right concept, structure, workflow, incentives. PRODUCTMARKETFIT
TWODISTINCTPHASESOFDESIGN Divergent thinking Convergent thinking
IMPACTMAPS There is often a set of assumptions that are hidden in the instruction “thou shalt build this particular feature”. Impact mapping is a great tool for understanding the value of delivering a particular piece of software. Gojko Adzic
PRIORITISEFEATUREIDEASWITHIMPACTMAPS Goal How How How Who How What What What
PRIORITISE Use social proof stats and stories to drive action Make calculator easier to understand Add a video More customers choose to invest with us More customers complete purchase Customers choose to invest more Customers disinvest less First time investors R100m
 of customer money invested
QUICKLYSORTTOUGHDECISIONS?
EXPERIMENTS
In the lab… • Find this. • Achieve that without help. • Explain that correctly, as if to a friend. But NOT “would you use this?” DON'TTRYTOMEASUREMENTALSTATE
PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. STAGES2AND3 Stage 2 Find the right concept, structure, workflow, incentives. PRODUCTMARKETFIT Stage 1 Select the right problems to solve, and solve them elegantly. Stage 3 Roll out to more users, and roll out extended features. SCALEANDEXTEND
MVP MVPEXPERIMENT Stage 1 Stage 2 Stage 3 PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 MVP Experiment MVP
TURNIDEASINTOHYPOTHESES
 ABOUTOUTCOMES We believe that 
 building this feature 
 for these people 
 will achieve this outcome. We will know this is true when we see this quantitative measure 
 AND this qualitative response. We believe that 
 building A SOCIAL PROOF PANEL
 for NEW, inexperienced investors 
 will achieve An increase in customer acquisition from the landing pages. We will know this is true when we see A 20% increase in people starting and finishing signup during the sprint after release AND 50% of users show A positive response in the user testing. AMAZON.COM >60%FAIL
AVOIDVANITYMETRICS Weeks Increasing numbers of visitors, counted cumulatively Awesome, right?
COHORTANALYSIS 0% 25% 50% 75% 100% 1 2 3 4 5 6 7 Go for trial Register Try once Try 5 times Pay Weeks 

107 MEASURECUSTOMEROUTCOMES Raw data that tells you the scale of your operation. The proportion of your visitors achieving the goals you want to enable. Move slowly. Measure products that have reached scale. Customer outcome metrics Scale metrics Business metrics Registration rate Transactions per month Visits per month Conversion rate Referrals rate Pages viewed Sales completed Profit Revenue Market share
SETAFAILCONDITION “…We will know we are right when we see a 50% conversion rate.” What if you saw 49%? 45%? 30%? Set a fail condition: “…We will know we are wrong when we see conversion <50%…” A fail condition is less easy to quibble with.
“FAILFASTANDPIVOT” Fail? We’re not allowed to do that! Fail means two different things. Horizon 1 failure: Failure to correctly execute a prescribed business process. Bad. Horizon 3 failure: Proving that customers don’t want a certain thing, is a successful experimental result. Good.
MAKETHELEARNINGANDVELOCITY CLEARFORYOURSTAKEHOLDERS • Show vivid evidence • Count the number of experiments conducted • Show the list of what you’ve learned • Identify and envision competitive opportunities • Show hard numbers …and the funding will keep coming. www.kalahari.net Goal Funnel Feb 1, 2011 - Feb 28, 2011 Comparing to: Site Checkout 35,472 visitors finished | 53.18% funnel conversion rate 64,120 /checkout/pipeline/signin.aspx?Retur 23,282 /checkout/pipeline/signin.aspx?Retur 6,604 /default.aspx 6,069 /checkout/pipeline/newsletter_edit.as 5,390 /page_templates/searchresults.aspx? 2,879 Basket 64,120 47,550 (74%) proceeded to Vouchers 16,570 (exit) 3,531 /default.aspx 2,160 /checkout/pipeline/xpress_basket.asp 1,149 /page_templates/searchresults.aspx? 856 /checkout/pipeline/xpress_basket.asp 656 252 (entrance) 82 /checkout/pipeline/signin.aspx?Retur 48 /checkout/pipeline/signin.aspx?Retur 41 /checkout/pipeline/xpress_payment_ 16 /checkout/pipeline/xpress_basket_mu 7 Vouchers 47,802 45,685 (96%) proceeded to Payment 2,117 (exit) 805 /checkout/pipeline/xpress_basket.asp 485 /default.aspx 268 /checkout/help/help.aspx 88 /checkout/pipeline/xpress_vouchers.a 55 268 /checkout/pipeline/signin.aspx?Retur 118 (entrance) 58 /checkout/pipeline/xpress_payment_ 40 /checkout/pipeline/signin.aspx?Retur 9 /default.aspx 4 Payment 45,953 33,409 (73%) proceeded to Checkout 12,544 (exit) 1,797 /checkout/pipeline/xpress_basket.asp 1,274 /checkout/pipeline/xpress_vouchers.a 807 /default.aspx 576 /checkout/help/help.aspx 506 2,063 /checkout/pipeline/xpress_payment_ 1,546 (entrance) 388 /checkout/help/help.aspx 21 /checkout/pipeline/xpress_vouchers_ 11 /checkout/help/payjar.aspx 11 Checkout 35,472 53.18% funnel conversion rate 1 Google Analytics
HOLYINNOVATION,BATMAN! • Exponentials • Horizons • Lean product process • Jobs, pains and gains • Ideation matrix • Impact maps • Hypotheses
“ Tim Brown, IDEO INNOVATION=COMPETITIVEADVANTAGE In today's fluid business environment, innovation has become nothing less than a survival strategy.
THANKS.pbarrett@deloitte.co.za

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UX SA Conference 2015: Innovation Toolkit

  • 1.
    ANINNOVATORSTOOLKITPhil Barrett. 
 Associatedirector, Deloitte Digital Africa
  • 2.
  • 3.
  • 4.
  • 6.
  • 7.
    INOURUTILITYBELT § Words tomake innovation happen § Organising a place for innovation § Structure and process so you know where you are § Mapping the customer experiences § Ideation techniques § Experimentation with hypotheses § Prioritisation with impact maps
  • 8.
  • 10.
  • 11.
  • 12.
    NOTSEEINGDISRUPTIONYET? Digital Banking DisruptorsWill Not Grab Much Market Share . . . Yet Make no mistake, digital disruption is coming to banking, and it will reshape the industry in every country. But new entrants and disruptors will not grab major market share from established banks in 2015. […] digital teams should use 2015 to innovate and get ahead of the curve. Forrester
  • 13.
    THEERAOFEXPONENTIALINNOVATION Anything information-enabled starts to follow Moore’slaw: doubling in power every 1-1.5 years. And everything is becoming information enabled.
  • 14.
  • 15.
    FOREXAMPLE…THEHUMANGENOMEPROJECT Started 1990 Target: 15years to sequence a full human genome. After 7 years: 1% complete. Experts pointed out: 700 years to finish the sequencing!
  • 16.
    ONEPERCENTMEANSHALFWAYDONE Ray Kurzweil: “Thatmeans we’re halfway done.” The amount sequenced was doubling every year. The project was completed in 2001, early and under budget. 696 years earlier than expected by the experts.
  • 17.
  • 18.
    MASSIVETRANSFORMATIVEPURPOSE TED: “Ideas worthspreading.” Google: “Organize the world’s information.” X Prize Foundation: “Bring about radical breakthroughs for the benefit of humanity.” Quirky: “Make invention accessible.” Singularity University: “Positively impact one billion people.” Drive outward-focussed, exponential thinking. Rally crowds, fan, teams and talent.
  • 19.
    Machine learning Genomics BiometricsInternet of Things Blockchain Robotics3D Printing Drones VR Wearables Connected Cars Mobile Analytics Social Cloud Web Content EXPONENTIALTECHNOLOGIES Super Disruptors… Exponential Disruptors…
  • 21.
    Kodak invented theCCD: key to digital photography. In 1981, they investigated whether this would turn photography on its head. THEMOSTDANGEROUSASSUMPTION? During the 1980s… • The quality of prints from electronic images will not be generally acceptable to consumers as replacement for prints based on the science of photography • The consumer’s desire to handle, display, and distribute prints cannot be replaced by electronic display devices. • Electronic systems (camera and viewing input device for TV) will not be low enough in price to have widespread appeal. KODAKWASRIGHT**FOR15YEARS
  • 22.
  • 23.
  • 24.
    PITCH:3OPPORTUNITIESFORGAIN • Operate moreefficiently, to maintain margin. • Provide an excellent, joined up, multi-channel service experience, to gain new customers and extend customer LTV. • Create and grow new markets and products that match changing customer needs and expectations.
  • 25.
  • 26.
  • 27.
    WHATKINDOFINNOVATIONAREYOUREADYFOR? Finding worthwhile new thingsto do. Finding better ways to do what we already do. 10% 10x “Optimisation?” “Disruption?”
  • 28.
  • 29.
    “ Scott Berkun, 
 Themyths of innovation All you need is the ability to make things that are good consistently, since few companies do. DOTHINGSBETTER
  • 30.
    “ A corporation isa permanent organisation designed to execute a repeatable and scalable business model. Innovation teams and startups are temporary organisations designed to search for a repeatable and scalable business model. Steve Blank The godfather of lean innovation BUT10XINNOVATIONNEEDSADIFFERENTM.O.
  • 31.
    “Your organisation’s world-classcapabilities in brand, supply chain, distribution, sales and financial metrics are all tailored to execute the existing business model, not to help search for new ones. The resources and capabilities optimised for execution interfere with the processes needed to search for a new business model. Steve Blank The godfather of lean innovation
  • 33.
    ““In large organisations,just one out of fifty managers can resist an idea—and in doing so, kill it. By comparison, if just one of fifty investors likes a startup, it’s off to the races.” Robert Goldberg VC, Founder IdeaLab, Senior exec Zynga LARGEORGANISATIONS:“NO”MACHINES
  • 34.
    BUTNO-ONEELSEISMAKINGANEWPRODUCTLIKETHAT! There’s no socialproof for a real innovation. The whole point is that no-one else is doing it. if no one else is doing it, celebrate!
  • 35.
  • 36.
  • 37.
    DISRUPTIONINLARGERORGANISATIONS • Create organisationsat the edge of yours, to disrupt other markets. • Create internal and external organisations to attack the mothership and each other. • Create a lab for breakthrough, moonshot technologies at a budget price.
  • 38.
    “ ADVANCED:AMAZON’SINSTITUTIONALYES If you’re amanager at Amazon and a subordinate comes to you with a great idea, your default answer must be YES. If you want to say no, you are required to write a two-page thesis explaining why it’s a bad idea. In other words, Amazon has increased the friction entailed in saying no, resulting in more ideas being tested (and hence implemented) throughout the company. Salim Ismail on an idea instituted by CEO Jeff Bezos and CTO Werner Vogels
  • 39.
    “ CASESTUDY:BBVA Creating a trulygroundbreaking, 'customer-centric,' rapid, simple and efficient model of interaction, in which the customer receives the best his bank has to offer, requires constant efforts to innovate in both the organisational and cultural arena and in the technological field. Francisco González, 
 BBVA CEO and chairman since 2001
  • 40.
    BBVA’SINNOVATIONAPPROACH • Steering committeesets priorities and accepts applications for funding • Agile throughout the bank: planning and delivery. • Build an architecture that facilitates rapid front end dev/release cycles. Strong services layer needed. • Customer metrics and adoption for each digital innovation. • Promote the right culture: gather ideas from everyone, deliver change with agile, empower with the right tools, link collaboration and innovation to staff incentives. • Create robust redundancy with: Employee involvement, academic and agency ties, innovation centre, open talent incubator, hackathons, beta community, venture fund, acquisitions. • Champion innovation with innovation centre, blogs, magazines, competitions…
  • 41.
  • 42.
  • 43.
    “ FORSUCCESS,INNOVATECUSTOMER-FIRST You’ve gotta startwith the customer experience and work backwards to the technology. Steve Jobs
  • 44.
  • 45.
    Where do 
 backlogs
 come from? 
 backlogs 
 come from? Where do
  • 46.
    • Their own/organisationalhallucination. • Adding complexity: “And we could also…” • Forgetting customer contact and even analytics. DON’TLISTENTOHIPPOS
  • 47.
  • 48.
  • 49.
    Team vision anddiscipline 
 over individuals and interactions 
 over processes and tools Validated learning 
 over working software 
 over comprehensive documentation Customer discovery 
 over customer collaboration 
 over contract negotiation Initiating change
 over responding to change
 over following a plan BEYONDTHEAGILEMANIFESTO — Kent beck, 2011
  • 50.
    A LEANINNOVATIONPROCESS Stage 1Stage 2 Stage 3 Select the right problems to solve, and solve them elegantly. Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. Human-centred design Lean startup Lean UX
  • 51.
    “LEAN”ACTUALLYMEANS… • Deliver smallbatches quickly. Everyone can perceive progress, cause and effect when they happen quickly. • Eliminate waste. Don’t make or do things that will not get used in the process of delivering value to customers. • Learn and improve. Make sure that you inspect the impact of your steps, through measurement and observation. • Empower the team. The people close to the problem are the best positioned to understand and solve it. • Build quality in. Focussing on quality ends up delivering results faster. • See the whole. Considering just one part of a system in isolation will yield unpredictable results.
  • 52.
  • 53.
    LEANINNOVATIONACTIVITIES Stage 1 Stage2 Stage 3 Select the right problems to solve, and solve them elegantly Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations Software: MVP experiments. User-tests.Observe users, analyse patterns, identify problems. Mock-ups.
 Technical PoCs. Pirate metrics. User tests. Production software releases. Pirate metrics. User tests. Business metrics. Measure Build Maps and models Learn Solutions that are worth it. Who wants it, in what form and how much they’ll pay. Detail: Features, forms, tweaks that work . Problems and opportunities.
  • 54.
    WAITINGFORFEEDBACKISNOTENOUGH Feedback Silence No opinion Tentativeopinion Strong opinion Not using Trying out Casual user Evangelist/Beta group User
  • 55.
    MVPEXPERIMENTS F2F/121 • Lab testa mockup • Concierge • Wizard of Oz • Storyboard • Prototype spaces • Catalogue/data sheet/home page Quant/online • Call to action • Ad tracking • Video and link • Split testing
  • 56.
  • 57.
  • 58.
    No plan survives contactwith the enemy. – Helmuth von Moltke the Elder Prussian Army Field Marshall “
  • 59.
  • 60.
    Stage 2 Stage3 Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PRODUCTMARKETFIT SCALEANDEXTEND Stage 1 Select the right problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. STAGES0AND1
  • 61.
    “There are nofacts inside the building. The facts exist outside the building. Get out of the building. Steve Blank, 
 Customer development guru
  • 62.
  • 63.
    4KINDSOFJOURNEYMAPPING Day in thelife: Understand the full breadth of customer activity in your target space. Discover needs no-one is addressing. Great for innovation. As-is customer experience: Map the current customer experiencer your organisation offers. Spot the optimisations, and maybe innovations. Customer experience vision: Map the experience you want to offer. Great for ideation and alignment. Service blueprint: Understand what it will take to deliver the experience you want to, with backstage people, process and technology. Great for programme management and scoping.
  • 64.
    “DAYINTHELIFE”JOURNEYMAPPING The whole process,not just the parts where they touch your organisation. That opens up more opportunities for innovation.
  • 65.
    Journey model Journey stages Searchengines Google Social media Facebook Referrals TripAdvisor Friends Staff Public relations TV commercials Radio Questions Where do I want to go? Who can I trust? Where can go to get a beach? Discover> Explore> Decision> Book / P> Evita The family mom Brian & Sally The miserly couple Steve The business traveller Overall boo Questions What do I do with this? Where do I get customers number? Do I add 15% onto my rate? How do I reply to this quote? Will the customer get it if I apply to this email? How do I block this out in calendar? Why is the customer asking for more people than I can accommodate? Where will this go? Do I have to complete my profile now? This is confusing who can help me? Do I have to list each establishment one by one? I only have hard copy photos? Do you have a photographer? Does someone come to vet the place? Can I specify race or gay etc? Now what? Can I change my login details? How do I find out my GPS location? Patricia Conservative B&B owner Brad Live fast, die young agent Walter Know it all retired businessman How does it work? What will I need? How long will it take? Is it safe? Is the person coming to stay legit? Do I have to accept all quotes? What is a live booking? How do I update rates and availability? Why doesn't it look like I thought it would? Journey stages Discover> Evaluate> Register/ List> Live> Book/>Decision> Search engines Google Social media Facebook Public relations Adverts Sales calls Request a quote Book now List your establishment Profile Vetted Establishment page Profile not complete Declined I want to see interesting pictures. Where can I go that has hot weather right now? What has a pool? Can I imagine myself in this place? Is it safe? Gather> Overall decision: Request a quote: Quote received: Inspiration Holiday type Vibe Distance from me Mountain Forrest Sea (beach) Remote Location details List of Establishments Photos Reviews Price range Availability # people it sleeps # of beds in rooms Location Features Establishment detail page Recently Viewed ( Wish list ) Quote received Quote needed Book now Submit quote Ignore quote View other EST… Cost Benefits Contract Commitment Will it work with what I have got? What will I need Reviews Who will give me the right price? I am going to Langebaan where can I stay? Distance? Where can I go this weekend? Where can I get a good deal? What accommodation specials are available? What are the benefits to using SafariNow? What is available in my area? Is there wifi? Where can I go to be near a river? What is available two hours drive from me? What is like Montagu? What is happening in Ballito? What can I afford? Who can give me the best price? What do other people think? How does it look? Which one looks the nicest? What is the view like? Does it give me food? Can my kids be entertained while I chill with my man? Can I take my dog? Can I take my children? Which one looks the nicest? How long will this take? Is it the price right? Is it near the beach? What are people saying about this place? Recent reviews? Is the person reviewing like me? Why can I not see a price? Can I get it cheeper direct? Does it have wifi? Can I book right now? Is this place real? How quickly will they get back to me? How do I know what my room preference is? Do I have to select a room? Who is this quote going to? Why must I enter my contact details? I just want to know availability? Where is my quote - not immediate? Why should I book with SafariNow? What do I do now? How do I pay? Have they answered all my questions? I do not understand the quote? What does the total mean? Why is this different to online? What does it include? Why have you not answered my questions? Is this the actual price? What room am I getting? How does this compare to other quotes? What currency is this quote in? What is the deposit? Is my card sa When is the Why I am giv guaranteed How can I tr Is my bookin Why did you space? How do I kn How else can Why is my b Is my bookin Will it work with my systems? How much does it cost? How long will it take? What do other establishments think? Are they reputable? How will I get paid? Why do I need to do this? Do you really need all the info? What do you want photos of - establishment and specifics (rooms)? Why can I not see my page now? Why do you not offer sliding scale? Why can I not just list right away? Why do you require municipal documents? Do I have to complete my profile now? How long is this going to take? Can somebody else do this for me? Can you post the photos for me? Can I upload a photo from my phone? Why can I not see my page now? Other: I haven’t put my establishment up why is it on your site ? Why should I update rates and availability? Why doesn't it look like I thought it would? Can somebody else update my rates and availability for me? Why is this so time consuming? Why doesn't it look like I thought it would? Why can’t I edit my description? Why have you changed my description? Why is that photo first? How much are they going to charge me? Will the customer get it if I apply to this email? Why am I getting an enquiry for dates that are already booked? Why can I not contact customer directly? Why does my number not appear? Can I give a discount? Who am I sending it to? I don’t have availability at this listing but I do at another? I can recommend a place for you? When am I getting my money? Please stop smsing me. Do you block this out in my calendar? Why should I reply to a quote that I am not accepting? Other: I am listed on SafariNow? I don’t own this anymore how do I cancel it? How d Help, w Can I s Why is Why is Why am sms’s? Will th 15% is Why ar booked Accept quote Decline Quote Decline Book now You ha book Accept / Pseudo real time Real time (Eg: fully booked) Offer something else? Ignore quote Send message Query Editorial Pictures Reviews List of locations EndusersEstablishmentManagers/Owners 1 2 3 4 6 5 10 a ba c VISION+PERSONAS+ECOSYSTEM
  • 66.
    JOBSTOBEDONE A customer jobcould be: • The tasks they are trying to perform and complete, • The problems they are trying to solve, • Or the needs they are trying to satisfy. Lift my right finger Become a fully- self-actualised human being What is the job that a customer is hiring your product to do?
  • 67.
    PAINS Lower-than-expected benefit. “Thefood was cold when it finally reached us.” Lower-than-expected easiness. “I can’t get the necessary documents.” Emotional: “Running at the gym makes me feel so bored.” Social: “It’s embarrassing to have to ask for directions.” Negative expectations. “I won’t run it because it will probably mess up my hard drive.” Things that annoy your customers - and might stop them from taking action. Benefit - effort - social - emotional - financial.
  • 68.
    GAINS Expected and required.“I can make a call on my smartphone.” Desired. “I wish all my devices would work together seamlessly.” Unexpected. “I didn’t ever think a touchscreen smart phone linked to an app store could exist.” Social. “People would respect me if I drove a BMW.” Emotional. “I will be happy when I have a puppy to love.” Benefit - effort - social - emotional - financial.
  • 69.
    AGREATCUSTOMEREXPERIENCEDELIVERSONTHREELEVELS Basic expectations 
 Performits primary function elegantly, completely and consistently Power and performance
 Deliver new value through new tools & systems Beauty and enchantment
 Enchant customers with beauty, thoughtfulness and care AKA the Kano Model
  • 70.
    We feel first,and our thinking is defined by what we feel. Stylish products and environments are perceived to be: • More valuable, even when they fail • More trustworthy and credible • Easier to use ENCHANTMENTMAKESPEOPLEENGAGEBETTER
  • 71.
    BUTDEEPDELIGHTCOMESFROMFUNCTION than expected EASINESSMORE than expected EASINESSLESS thanexpected BENEFITMORE than expected BENEFITLESS Surprise, delight
 Loyalty Disappointment, anger, Churn BJ Fogg’s diamond of user delight Satisfaction Meets expectations
  • 72.
  • 73.
    PROBLEMDISCOVERY Stage 0 Understand rootcauses and key user needs behaviours and motivations. Stage 2 Stage 3 Find the right concept, structure, workflow, incentives. Roll out to more users, and roll out extended features. PRODUCTMARKETFIT SCALEANDEXTEND Stage 1 Select the right problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFIT STAGE1
  • 74.
    IDEATIONISATHING.WITHALONGHISTORY. Aristotle Guildford OsbornParnesChamberlin Dialogue Multiple working hypotheses Divergent thinking Brainstorming How might we?
  • 75.
  • 76.
  • 77.
  • 78.
  • 79.
  • 80.
  • 81.
    PROVOCATIONANDSTIMULI Divergent thinking tactic3 Automatic Manual People Numbers Money Outcomes Visuals Numbers Avoid pain Attain goal Choice Simple Social Private
  • 82.
    “HIT”HEURISTICIDEATIONTECHNIQUE Dimension 2 valueDimension 2 value Dimension 2 value Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Dimension 1 Value “How might we…?” “How might we…?” “How might we…?” Edward Tauber’s HIT technique, 1972 Explore idea space systematically. Stimulate ideation through strange combinations.
  • 83.
    6-5-3/3-12-3/X-Y-Z Take time toframe the problems, assemble stimulus. Time to sketch problems alone. And time to present iterate problems.
  • 84.
    Machine learning Predictive analytics BiometricsMobile 3D printing Cloud Genomics Sensors Blockchain iBeacon Augmented reality Wearable Confidence Personal Relationship Transparency Tedium Self service Timing Efficiency Delight Trust Visualised Free SOMESTIMULITOCROSS
  • 85.
    DEMATERIALISATION Taxi Fleet Research LibrariesClassifieds Book Stores Long Distance Hotel Chains
  • 86.
    DEMONETISATION Your business isshown to drivers approaching. You decide how much you’re willing to pay for each view as well as your total monthly spend. It’s super simple to set up and see results. makes games available for free Candy Crush generates daily revenues of ~$979 000 Source: Singularity University
  • 87.
    DEMOCRATISATION 3D Printing willdemocratise the ability to distribute personalised production around the planet Leveraging individuals inputs to build and influence other institutions’ potential success
  • 88.
    Your turn: Ideate 1:Set up the challenge Start alone. Pick a pain or a gain to tackle (could be a theme or group of related ones.) Pick two “easy/appealing” stim words: one from blue and one from purple. Then pick two “unpleasant/ difficult” stim words. Make a grid. Then stop.
  • 89.
    Machine learning Predictiveanalytics Biometrics Mobile 3D printing Cloud Genomics Sensors Blockchain iBeacon Augmented reality Wearable Crowd Dematerialisation Confidence Personal Relationship Transparency Tedium Self service Timing Efficiency Delight Trust Visualised “Free”
  • 90.
    Your turn: Ideate 2:Ideate and iterate Design as many ideas for your grid as you can in 10 minutes. If stuck, try another square. “How might we…?” Pick a partner and share you ideas. Work together for 2 minutes to add new ideas for person 1. Work together for 2 minutes to add new ideas for person 2.
  • 91.
  • 92.
  • 93.
  • 94.
    Stage 1 Select theright problems to solve, and solve them elegantly. PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand root causes and key user needs behaviours and motivations. STAGES2&3 Stage 3 Roll out to more users, and roll out extended features. SCALEANDEXTEND Stage 2 Find the right concept, structure, workflow, incentives. PRODUCTMARKETFIT
  • 95.
  • 96.
    IMPACTMAPS There is oftena set of assumptions that are hidden in the instruction “thou shalt build this particular feature”. Impact mapping is a great tool for understanding the value of delivering a particular piece of software. Gojko Adzic
  • 97.
  • 98.
    PRIORITISE Use social proof statsand stories to drive action Make calculator easier to understand Add a video More customers choose to invest with us More customers complete purchase Customers choose to invest more Customers disinvest less First time investors R100m
 of customer money invested
  • 99.
  • 100.
  • 101.
    In the lab… •Find this. • Achieve that without help. • Explain that correctly, as if to a friend. But NOT “would you use this?” DON'TTRYTOMEASUREMENTALSTATE
  • 102.
    PROBLEM/SOLUTIONFITPROBLEMDISCOVERY Stage 0 Understand rootcauses and key user needs behaviours and motivations. STAGES2AND3 Stage 2 Find the right concept, structure, workflow, incentives. PRODUCTMARKETFIT Stage 1 Select the right problems to solve, and solve them elegantly. Stage 3 Roll out to more users, and roll out extended features. SCALEANDEXTEND
  • 103.
    MVP MVPEXPERIMENT Stage 1Stage 2 Stage 3 PROBLEM/SOLUTIONFIT PRODUCTMARKETFIT SCALEANDEXTENDPROBLEMDISCOVERY Stage 0 MVP Experiment MVP
  • 104.
    TURNIDEASINTOHYPOTHESES
 ABOUTOUTCOMES We believe that
 building this feature 
 for these people 
 will achieve this outcome. We will know this is true when we see this quantitative measure 
 AND this qualitative response. We believe that 
 building A SOCIAL PROOF PANEL
 for NEW, inexperienced investors 
 will achieve An increase in customer acquisition from the landing pages. We will know this is true when we see A 20% increase in people starting and finishing signup during the sprint after release AND 50% of users show A positive response in the user testing. AMAZON.COM >60%FAIL
  • 105.
    AVOIDVANITYMETRICS Weeks Increasing numbers ofvisitors, counted cumulatively Awesome, right?
  • 106.
    COHORTANALYSIS 0% 25% 50% 75% 100% 1 2 34 5 6 7 Go for trial Register Try once Try 5 times Pay Weeks 

  • 107.
    107 MEASURECUSTOMEROUTCOMES Raw data thattells you the scale of your operation. The proportion of your visitors achieving the goals you want to enable. Move slowly. Measure products that have reached scale. Customer outcome metrics Scale metrics Business metrics Registration rate Transactions per month Visits per month Conversion rate Referrals rate Pages viewed Sales completed Profit Revenue Market share
  • 108.
    SETAFAILCONDITION “…We will knowwe are right when we see a 50% conversion rate.” What if you saw 49%? 45%? 30%? Set a fail condition: “…We will know we are wrong when we see conversion <50%…” A fail condition is less easy to quibble with.
  • 109.
    “FAILFASTANDPIVOT” Fail? We’re notallowed to do that! Fail means two different things. Horizon 1 failure: Failure to correctly execute a prescribed business process. Bad. Horizon 3 failure: Proving that customers don’t want a certain thing, is a successful experimental result. Good.
  • 110.
    MAKETHELEARNINGANDVELOCITY CLEARFORYOURSTAKEHOLDERS • Show vividevidence • Count the number of experiments conducted • Show the list of what you’ve learned • Identify and envision competitive opportunities • Show hard numbers …and the funding will keep coming. www.kalahari.net Goal Funnel Feb 1, 2011 - Feb 28, 2011 Comparing to: Site Checkout 35,472 visitors finished | 53.18% funnel conversion rate 64,120 /checkout/pipeline/signin.aspx?Retur 23,282 /checkout/pipeline/signin.aspx?Retur 6,604 /default.aspx 6,069 /checkout/pipeline/newsletter_edit.as 5,390 /page_templates/searchresults.aspx? 2,879 Basket 64,120 47,550 (74%) proceeded to Vouchers 16,570 (exit) 3,531 /default.aspx 2,160 /checkout/pipeline/xpress_basket.asp 1,149 /page_templates/searchresults.aspx? 856 /checkout/pipeline/xpress_basket.asp 656 252 (entrance) 82 /checkout/pipeline/signin.aspx?Retur 48 /checkout/pipeline/signin.aspx?Retur 41 /checkout/pipeline/xpress_payment_ 16 /checkout/pipeline/xpress_basket_mu 7 Vouchers 47,802 45,685 (96%) proceeded to Payment 2,117 (exit) 805 /checkout/pipeline/xpress_basket.asp 485 /default.aspx 268 /checkout/help/help.aspx 88 /checkout/pipeline/xpress_vouchers.a 55 268 /checkout/pipeline/signin.aspx?Retur 118 (entrance) 58 /checkout/pipeline/xpress_payment_ 40 /checkout/pipeline/signin.aspx?Retur 9 /default.aspx 4 Payment 45,953 33,409 (73%) proceeded to Checkout 12,544 (exit) 1,797 /checkout/pipeline/xpress_basket.asp 1,274 /checkout/pipeline/xpress_vouchers.a 807 /default.aspx 576 /checkout/help/help.aspx 506 2,063 /checkout/pipeline/xpress_payment_ 1,546 (entrance) 388 /checkout/help/help.aspx 21 /checkout/pipeline/xpress_vouchers_ 11 /checkout/help/payjar.aspx 11 Checkout 35,472 53.18% funnel conversion rate 1 Google Analytics
  • 111.
    HOLYINNOVATION,BATMAN! • Exponentials • Horizons •Lean product process • Jobs, pains and gains • Ideation matrix • Impact maps • Hypotheses
  • 112.
    “ Tim Brown, IDEO INNOVATION=COMPETITIVEADVANTAGE Intoday's fluid business environment, innovation has become nothing less than a survival strategy.
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