lean nyu itp class 2 2.9.2015

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Lean LaunchPad

Class 2 / 12

February 9, 2015

Jen van der Meer | jd1159 at nyu dot edu

Josh Knowles | chasing at spaceship dot com

LEAN LAUNCHPAD AT NYU ITP

Rockets Sketches borrowed from Harry Allen Design

http://harryallendesign.blogspot.com/2012_06_01_archive.html

http://2.bp.blogspot.com/-Dwr7-a-Yqss/T-jbQTZn_OI/AAAAAAAABmo/4sp5WwPyROo/s1600/Glasslab+Presentation_Page_07_Image_0001.jpg

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6:30 7:00

Guest Speaker: Chris Milne, Sacrificial Prototypes

7:00 8:00

5 minute business model canvas presentations

5 minute questioning of key business model hypotheses

8:00-8:15

Break

8:50 9:10

Discussion Value Proposition, Research Methods

8:309:30

Guest Speakers:

Travis Hardman, CTO Daily Voice

TODAY:

.

Class timeframe 2015

2/2

Business Models

Customer Development

2/9

Value Proposition

Research tools

2/16

Presidents Day

2/23

Customer Segments

Research Tools

3/23

Spring Break

3/9

Customer Relationships

Product Development

3/23

Resources

Activities + Costs

3/30

Product Development

UX and User Interface

Design

4/6

UI UX Part 2

4/13

Product Development

User test

4/20

Product development

4/27

Product MVP

May!

Delicious Celebration

Lessons Learned

3/2

Revenue Streams

Distribution Channels

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Business model the rationale of how an organization creates delivers and captures value

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LEAN at NYU ITP OUR APPROACH

Customer research is about getting out of the building.

It must be done by you, the founding team, because:

Key customer feedback points are random, unpredictable, and often painful to hear.

Employees have far less at stake, may fear reporting bad news, and they dont get heard adequately when they report back.

There are good consultants (like our UX advisors for the class) and bad ones, who weed out the negative commentary and who look for upsell opportunities. Learn how to tell the good from the bad by doing the work yourself.

CUSTOMER DEVELOPMENT

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ONLY a founder can embrace the feedback, react to it, and adeptly make the decisions necessary to change or pivot key BUSINESS MODEL components?

AGREE?

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A Value Proposition creates value for a Customer Segment through a distinct mix of elements catering to that segments needs.

Quantitative, Qualitative.

VALUE PROPOSITION

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A Value Proposition creates value for a Customer Segment through a distinct mix of elements catering to that segments needs.

Quantitative, Qualitative.

VALUE PROPOSITION

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Newness

Performance

Customization

Getting the job done

Design

Brand/Status

Price

Cost Reduction

Risk Reduction

Accessibility

Convenience/Usability

_The Business Model Canvas

VALUES

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GO DEEPER on VALUE PROP:

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VALUE PROPOSITION FIT

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VALUE PROPOSITION FIT

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WHERE DO YOU FIND A VALUE PROPOSITION?

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http://rhizome.org/editorial/2011/dec/15/technology-not-enough-story-nyus-interactive-telec/

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Lean simulates entrepreneurship

BY requiring FOUNDERS TO GET OUT OF THE BUILDINGand into YOUR customers world.

Customer Discovery

Customer Creation

Customer Validation

Company

Building

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Pivot

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Talking to customers is intimidating what do I say, what do I do?

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Observing customers is tricky what do I look for, what do I watch?

Inhabitat.com

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teams get over the hump, but find its very hard to get to a true pain point

I think I only scratched the surface, and never really got to the core problems.

I dont know if my customers really understand what they need enough to articulate it to me.

Customers said they would pay, but then they didnt when it came time to pay.

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Photo credit: http://www.nydailynews.com/life-style/58-parents-gadgets-babysit-kids-study-article-1.1383009

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CUSTOMER DISCOVERY YIELDS SURFACE LEVEL INSIGHTS

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BUT WITHOUT DEEPER UNDERSTANDING, TEAMS STRUGGLE TO DISCOVER THE HIDDEN, INVISIBLE, OUT OF CONSCIOUSNESS TRUTHS. THE DEEPEST PAIN POINTS THAT CUSTOMER WANT SOLVED.

CUSTOMER DISCOVERY YIELDS SURFACE LEVEL INSIGHTS

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PAIN DRIVEN DESIGN

Artifacts

Behavior

Expressed Needs

Norms

Beliefs

Assumptions

Values

Plans

Traditions

Attitudes

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Find the outlier unmet needs that inspire novel approaches

Most startups fit the bell curve of sameness

AS A RESULT, MANY STARTUPS CHASE

THE SAME PAIN POINTS

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SELECTING Quick HIGH IMPACT DESIGN RESEARCH METHODS TO GET UNDER THE ICEBERG

http://image.slidesharecdn.com/drmethodslegalsize-100319105558-phpapp02/95/slide-1-728.jpg?cb=1269014371

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WHATs DIFFERENT FROM DESIGN RESEARCH

Customer development IS different than ethnography or design research inquiry

Founders are NOT neutral observers. While you can practice the art of neutral observation, you, as a founder, are making contact with your first potential customers.

Were going to start wide, and expansive, and go deep, getting to deeply unmet needs that can drive a successful business model.

But we will be quickly moving to understand the business model that will fuel your vision.

Customer Discovery

- test customer reactions

is the business model scalable?

- build customer demand

Design Research

- clarify customer needs

is the customer need significant?

- test product features

http://www.trilemon.com/wp-content/uploads/2013/12/Universal-Methods-of-Design.pdf

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DESIGN RESEARCH METHODS

TO COMPLEMENT CUSTOMER DISCOVERY

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Getting ReadyDesigner/ResearcherText/SourceEmpathy exercisesD-SchoolD-School BootlegBrain DumpSteve PortigalInterviewing UsersDesign Pass/Vail TestsGiff ConstableTalking to HumansListening MethodsCreate Contrasts Steve PortigalInterviewing UsersProbe for the UnsaidSteve PortigalInterviewing UsersObserving MethodsTours or Games Ajay RevelsPolitemachinesAEIOUHarringtonUniversal Methods of Design

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GETTING READY

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https://www.flickr.com/photos/juhansonin/8009704349/in/photolist-dcMQ3R-ejpNXD-dcMPZa-cNCsnA-7E4o7D-7ydj9U/

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GETTING READY: DEVELOPING EMPATHY

The problems you are trying to solve are rarely your own and you wont find a market until you can understand the needs that other have. Make sure you are not just getting out of the building, but getting into the context of your customers lives.

Observe: View users and their behavior in the context of their lives.

Engage: interact and interview users through scheduled and short intercept encounters.

Immerse: Experience what your user experiences.

From: D-School Bootcamp Bootleg:

http://dschool.stanford.edu/wp-content/uploads/2011/03/BootcampBootleg2010v2SLIM.pdf

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Convene a brain dump.

Get whats in everyones heads out on the table. Assumptions, expectations, closely held beliefs, perspectives, hypotheses.

Contradictions are inevitable, and become great fodder for hypotheses to test on your business model canvas.

Think about it as a transitional ritual of unburdening, like men emptying their pockets of keys, change, and wallet as soon as they return home.

Adapted from Steve Portigal, Interviewing Users.

GETTING READY: BRAIN DUMP

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Set targets now, to see if you can disprove your riskiest hypotheses.

Customer discovery is qualitative at first, but after 100 interviews, you will start to get quantitative understanding.

What do you expect to be true?

What constitutes a pass?

A fail?

Set goals for key questions and track results. Giff Constable, Talking to Humans

DESIGN PASS/FAIL TESTS

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Listening METHODS

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https://www.flickr.com/photos/33392350@N00/5076456621/in/photolist-8JAaGa-m83iBw-a9Q3QZ-7QQrbc-bA3AKD-bPXUSz-8fnCAw-8ozJt3-876czN-g6dUEb-cATtz3-8HFwM8-8ZnpKq-9WGfDZ-dCE6cg-ajDae2-c8DMKC-7zQ7HA-9QBr8b-cpnzmm-fYBuqo-8Yh47a-7ETpwS-7DrZ8J-9Wtvea-9dCtZh-bBYSr7-dw5kXy-ajDaQ2-a1pNe4-bn3uJA-8URn4J-bt8fS6-a6ZrV9-8yoqG8-85Yse9

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To check against a cover story or get underneath the obvious truths:

Compare processes: How is applying for preschool different than applying for pre-k.

Compare to others: Do you learning habits differ from your fellow grad students in your program

Compare across time: How have your shopping habits changed from the time you lived with roommate, to living alone, to living with a partner.

Adapted from Interviewing Users, by Steve Portigal

listening method:

Create