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Howshould weinnovate?
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FastIterativeResponsiveExperiments
Shorten the gap between idea and results
Process of continuous improvement
Data drives subsequent iterations
Structured to maximize learning
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Understand Diverge HypothesisDefine Decide
1 UNDERSTAND user needs, business value and technology capacity
3
DEFINE the problem, key strategy and focus2
DIVERGE from a single potential solution to create diversity of options to explore
4 DECIDE on the most promising ideas from the range of options
5 HYPOTHESIS of a problem statement and solution that can be tested
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Declarationof
Innovation
• Budget• Decision Making• Risk Management• Priorities
• Who?• What?• When?• Where?• How?• Why?
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Framing the ExperimentWhat question(s) do we want to
answer in our experiment?
What has to be true in order for us to be successful?
What other assumptions are we making?
What could cause us to fail?
Project: ___________
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Framing the ExperimentWhat question(s) do we want to
answer in our experiment?
What has to be true in order for us to be successful?
What other assumptions are we making?
What could cause us to fail?
Project: ___________Cheetah•Can we streamline process by splitting must haves from nice to haves?
•Will it improve NPS?
•Will it improve financial results?
•We can stay compliant (KYC/BSA/CIP)
•Our customers are neutral to positive about a more self-serve approach
•We can get additional (non-required) info after account opening
•Reasonably cheap and fast tech integration
•Lack of customer adoption
•Insufficient employee adoption
•Effort and expense of changes with no lift in results
•Effective int./ext. comms. to stakeholders
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“If I had asked people what they wanted, they would have said faster horses.”
Henry Ford
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Image: FAKEGRIMLOCK for Lean Entrepreneur
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Empathy
Design Thinking
Define
Ideate
Prototype
Test
Dschool.stanford.edu
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Pains, Gains, and Jobs
• Pains get in the way of the job to be done• Annoyances• May cause work-arounds
• Gains can be well understood and sought out• May be hidden or unexpected• Often involve tradeoffs
• Customers ”hire” products to do jobs for them• What is the job the customer needs done?• What are the other products have hired to get the job done?
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Pains
• What unaddressed pains can you think of?• What drives you crazy as a customer?• What complaints do you hear from friends and
family?• What pain points do you hear from
customers?• Where are customers creating work-arounds
because their current products and services don’t provide exactly what they need?
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Gains
• What kind of gains are customers looking for?– Lower prices?– Higher quality?– Faster service?– More customization?– Feelings, such as prestige or status?
• What tradeoffs are they willing to make?• What unexpected gains could you offer?
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Jobs to be Done
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Swiffer
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Pains, Gains, and Jobs to be Done
What job does the user need done?
What pain(s) is the user trying to avoid?
What gain(s) is the user trying to achieve?
Project: ___________
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Five Whys• Why?• Why?• Why?• Why?• Why?
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Empathy Map• Name your Persona– Lifestyle details– Personality– Pains/Gains/Jobs to be done
• What is their current experience with your product?• Where are there gaps?• How can you fill them?
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Understand Diverge HypothesisDefine Decide
1 UNDERSTAND user needs, business value and technology capacity
3
DEFINE the problem, key strategy and focus2
DIVERGE from a single potential solution to create diversity of options to explore
4 DECIDE on the most promising ideas from the range of options
5 HYPOTHESIS of a problem statement and solution that can be tested
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What is the core
hypothesis?
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FIRE™ Experiment TemplateCustomer Segment
Core Insight
Hypothesis
Describe the Test
Measuring Success (metrics / what is significant?)
Resources Needed (technical, human, external)
Estimated Budget
Timeframe
Project: ___________
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FIRE™ Experiment Template
Customer Segment Affluent retail customers (>$100k assets) <50 y/o who use our mobile app
Core Insight Often unwilling to come in to open accounts. (Losing to Chase, Schwab, BofA, and fintechs/Neobanks)
Hypothesis Reducing time and clicks will reduce abandoned / unfunded accounts
Describe the Test Lo-Fi prototype to split AML/KYC/BSA requirementsfrom other “nice to have” info
Measuring Success (metrics / what is significant?) Customer acceptance and adoption
Resources Needed (technical, human, external)
Estimated Budget $500 T&E for customers, $2,000 for external labor (if needed)
Timeframe MVP in 30 days, full prototype in 90 days
Project: ___________Cheetah
•Developers/ partners to build prototype(s)
•5-10 willing customers to test
•Compliance review
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Goal is to reach a quick decision by testing the key hypothesis
Desired outcome of an experiment
Success cannot be viewed as consistently moving along without changes
After everything necessary has been learned, it’s a waste of time to continue along with the same trial
It is desirable to have trials that don’t work. That means the organization is learning
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How do we test our core hypotheses?
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Test BoardASSUMPTION TEST WITH VALIDATED IF…
Project: ___________
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Test BoardASSUMPTION TEST WITH VALIDATED IF…New process can be
compliantInternal compliance
review OK by Compliance
Customers accept/adopt process
Lo-Fi prototype w/ 5-10 target customers
80% can complete tasks + 67% say willing to use
Reasonably cheap and fast tech integration
Field mapping via technical prototype
100% data integration w/ no uncorrectable errors
Project: ___________Cheetah
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Process Map
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Process Map
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How Might We…? Harvard Business Review calls “How might we…?” “The Secret Phrase Top Innovators Use”, and it’s a well worn tool for everyone from IDEO to Google Ventures to the Stanford design school. Now you’re in on the secret too. Click on the some of the links for deeper context and understanding.
Examples•How might we onboard new customers completely with just their mobile device?
•How might we reduce the time from application to funding small business loans?
•How might we create custom reports for our commercial clients?
HMW…
Get more customers to try mobile deposits?
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Project-level FIRE Break™
Risk to: Biggest risk How do we minimize it? How do we monitor for it? How do we repair it?
Customers
Business
Security
Compliance
Project: ___________
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Project-level FIRE Break™
Risk to: Biggest risk How do we minimize it? How do we monitor for it? How do we repair it?
CustomersReputation risk from major errors/failure
Test and learn cycle-prototype/pilot/ phased rollout
Measure acceptance and iterate along the
cycle
Kill quickly if not working, customer
service payments if/as needed
BusinessExpense and effort of change without upside
lift
Test and learn cycle-prototype/pilot/ phased rollout
Measure cost/ benefits and iterate
along the cycleKill quickly if not
working
SecurityData leakage or
breach
Screen all partners; Involve Data Security,
IT Risk and Compliance
Daily monitoring, firewall from other
customer data
Kill quickly if not working, customer
service payments if/as needed
Compliance AML/KYC/BSA/CIPInvolve Risk and
Compliance; outside counsel if needed
Daily manual review, limit daily volume if
neededManual remediation
Project: ___________Cheetah
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Solution Sketches
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New Ideas in just Five Days - Jake Knapp, et al
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New Ideas in just Five Days - Jake Knapp, et al
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NEED TOAction(s)
USERSVery specific
BECAUSESurprising insights
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