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@ Hack Cville: Customer Discovery Hacks

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Alex Cowan
Alex Cowan

This is a talk I gave to students and community on best practices in customer development for startup's. It's particular emphasis is on the quick, simple, and effective application of design thinking and Lean Startup. Hack Cville is a private co-working and mentoring space in Charlottesville with close ties to UVA. For live and screencast versions of the material, check out: www.alexandercowan.com/speaking .

TecnologiaNegóciosAperfeiçoamento pessoal
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Copyright 2012 Cowan Publishing Customer Discovery Hacks
Copyright 2012 Cowan Publishing
Copyright 2012 Cowan Publishing
Copyright 2012 Cowan Publishing Design Thinking Lean Startup Customer Dev. Agile } BIG VOID { Actual Practice
Copyright 2012 Cowan Publishing IDEATION PLANNING ORGANIZATION DEVELOPMENT
Copyright 2012 Cowan Publishing IDEATION Self-Love And Then Survival Back Then ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing IDEATION Self-Love And Then Design Thinking And Now Survival Back Then
Copyright 2012 Cowan Publishing DESIGN THINKING- WHAT IS DESIGN THINKING CUSTOMER DISCOVERY CUSTOMER VALIDATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Empathy DESIGN THINKING- WHAT IS Creativity
Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Entry1 Urinate as they go2 Edges preferred3 Speedy4 PB > cheese5 Empathy IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Check & Repair UV Validation Relevant Placement A Better Mouse Trap Powered by Better Bait Creativity 1 2 3 4 5 ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing IDEATION Personas Problem Scenarios ? ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing •Women •Age 28-45 •Have kids •Socialize with other mom’s •Online with Facebook •86% said they’d like to be more organized •70% said they’d use an application that organizes them IDEATION
Copyright 2012 Cowan Publishing IDEATION (see http://bit.ly/ywalkman) ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Mary is a mom by choice. She had a successful career in accounting, but welcomed the opportunity to be a stay at home mom. She loves it. But it’s not like having kids purged her creative, social instincts. She wants to connect, she wants to learn, she wants to interact. Being a mom is a job and she wants to do it well. That means corresponding with other mom’s on relevant topics and keeping the family calendar in ship shape. She posts to Facebook at least twice a week and responds to other moms’ items more often than that. For household stuff, Costco is the go-to place, but she’ll pick up fresh items at the farmer’s market when it’s up and splurge at Whole Foods when they’re having company. Mary the Mom IDEATION
Copyright 2012 Cowan Publishing IDEATION
Copyright 2012 Cowan Publishing IDEATION Personas User Stories Problem Scenarios ?
Copyright 2012 Cowan Publishing Drafting Stories PERSONAS STORIES Epic Stories Stories Test Cases “As a [persona], I want to [do something] so that I can [derive a benefit]” IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing BorrowedwithutmostregardfromBanksy(banksy.co.uk) IDEATION
Copyright 2012 Cowan Publishing PLANNING !5,000,000% 0% 5,000,000% 10,000,000% 15,000,000% 20,000,000% 25,000,000% 30,000,000% 35,000,000% 40,000,000% 45,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% Revenue% Expense% EBITDA% Five Year Plan Then Iterative Management Now 6.a PIVOT experiments disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 PIVOT OR PERSEVERE? 6.b PERSEVERE experiments prove hypothesis ALEX COWAN AlexanderCowan.com @cowanSF
!5,000,000% 0% 5,000,000% 10,000,000% 15,000,000% 20,000,000% 25,000,000% 30,000,000% 35,000,000% 40,000,000% 45,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% Revenue% Expense% EBITDA% Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing PLANNINGPLANNING Do I have real evidence from my buyer that this is compelling? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis What are the key assumptions required to make this business work? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis How do I definitely prove or disprove the assumptions with a minimum of time and effort? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Am I reacting or am I focused on validating my pivotal assumptions? ‘Pivot or persevere?’
Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 [A key assumption about the business] [Whether it needs proving [Experiment to prove or disprove] 1 Parents want to better organize the distribution of allowances Yes * Post the proposition in ads online * Measure sign-up’s on a landing page 2 Parents have smart phones No n/a PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing PLANNING
Copyright 2012 Cowan Publishing $ PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing ORGANIZATION == Aping Then Customer Development Now ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing ≠ ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
Big Company Recipes Applied Copyright 2012 Cowan Publishing 5 Year Plan == 10x Returns! X: < Odds at Lotto VC-Encouraged Menagerie X: Too much too soon X: Lack of Experience in Hands-on Discovery X: Better Luck with the Lottery Time to Face the Music X: New Theories to Explain Plan v. Actual X: Fun and Profit- Unlikely ORGANIZATION ++ New Idea! Expanded Team Revisions to Plan == Edgy Board X: Want Lots of Capital at Work It Works! Working 5 Year Plan New HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
Investors? Advisors? Focus on Validated Learning Copyright 2012 Cowan Publishing Key Assumptions ID’ed, Validated Lower Risk & Capital Requirement Resources As Needed Clear Focus in Hiring & Contracting Roles and Success Criteria Clear Progress is Quick and Measurable Time to Face the Music Validated Learning Answers Shared Questions Fun & Profit ORGANIZATION ++ New Idea! Full Tilt at a ‘Pivot or Persevere’ Moment Is approach working or not? Option for Non-Traditional Funding Strategies Expanded TeamNew HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing DEVELOPMENT Waterfall Then Agile Now ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Individuals Interactions > Processes Tools Working software Comprehensive Documentation > Customer collaboration Contract negotiation > Responding to change Following a plan > DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing DEVELOPMENT validate feature relevance with customers Past collaborate with development team Present observe and envision what’s next Future
Copyright 2012 Cowan Publishing DESIGN THINKING LEAN STARTUP CUSTOMER DEV. AGILE personas problem scenarios user stories hypothesis (assumptions) experimental design roles & team objectives working product ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing 2007 went out on my own 2008 profitable, productized consulting business 2010 software business 2011 scaling! 2013 keep learning, keep innovating ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing A LEAN PROGRESSION CONSULTING PRODUCTS Validated problem scenarios with substantial detail ‘PRODUCTIZED’ CONSULTING Customer empathy- more scope, detail on problem scenarios
Copyright 2012 Cowan Publishing UNDERSTANDING THE MARKET 50-70% of Enterprise Software Implementations Fail ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
How do we do this more efficiently? Are we implementing best practices? How do we improve service quality? How do we verify that? Copyright 2012 Cowan Publishing IDEATION Help me integrate and standardize the infrastructure. And show my people how to use it. Creating accounts is taking a lot of time/ money. And there are a lot of mistakes. ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing IDEATION SERVICE STANDARDIZATION & WORKFLOW SERVICE DESIGN PROCESS AUDIT, DESIGN NETWORK PRINCIPALS OF OPERATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing USER STORIES “As a receptionist, I want to receive an out of the box set up that’s created against best practices so I don’t have to set it all up by myself.” “As a receptionist, I want to change the buttons on my phone so they do what I want.” PROBLEM SCENARIO ‘I want a good out-of-the-box experience. And to change the display on my phone.’ PERSONA Rhonda the Receptionist IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing STORY TEST CASE “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the available templates are editable in a visual environment usable by a Product Manager “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure it’s possible to update the template at install time “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the template designation is available in all Loki provisioning interfaces “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure it’s possible for the user to reset to the default template “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure the available functions are filtered by the services assigned to the user “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure available functions are filtered based on the capabilities of the phone key “As a receptionist, I want a custom configuration on my phone so that I can manage calls in the way I’ve come to expect.” EPIC STORY IDEATION
Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing MARY THE MOM About: Mary the mom. . . [Describe like your friend or the beginning of a short story. What kind of shoes does she wear?]. . . Thinks: . . . Sees: . . . Feels: . . . Does: . . . 1. List at least 3 personas 2. Describe as much as you can (5 minute exercise)
Copyright 2012 Cowan Publishing END USER PERSONAS Rita the Reseller Orson the Office Mgr. Ignatius the IT Guy Rhonda the Receptionist Susan the Small Bus. Owner Keith the Key System User Amy the Assistant Simone the Standard User Chuck the Call Center Agent Esteban the Executive Mikuko the Mobile User Cindy the Call Center Manager
Copyright 2012 Cowan Publishing ENTERPRISE PERSONAS Nietzsche the Network Eng. Paola the Provisioner Sidney the Sys. Admin. Percival the Product Manager Sven the Salesperson Anthony the Applications Eng. Itzhak the IT Developer Frank the Field Eng. Sam the Support Eng. Saul the Site Developer Fritz the Field Eng. Manager Bruce the Business Owner
Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing PLANNING Visual device management emerged from general industry activity and follow-on work at Leonid 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Leonid can create a compelling, useful, supportable visual device management solution. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Lab work followed by limited commercial release. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Did we validate the ‘existential’ propositions? Was it supportable? Bankable? ‘Pivot or persevere?’ ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing “Parents want to better organize the distribution of allowances” Priority: [1 for existential; 2+ for others] Needs Proving?: [yes or no] Experimentation: [how will most quickly, cheaply prove or disprove] * Bonus Question: How do these relate to your personas? 1. List at least 3 assumptions 2. Note as much as you can on experiments (5 min. exercise)
Copyright 2012 Cowan Publishing PRIORITY KEY ASSUMPTIONS NEEDS PROVING? EXPERIMENTATION 1 End users at large want a visual tool to manage their phones No - Already proven by prototypes from partner 1 Giving the capability to end user admin’s will do more good than harm Yes - Beta testing with customers 1 The design and architecture are supportable in current customer environments Yes - Lab testing with customers...but really... - Field testing at scale 1 The target price point is bearable by the market Yes - Initial sales negotiations - Mainline (post beta) sales 2 The capability makes sense with end users (vs. admin’s) Yes - Some proxy data on overall activity by user type - Customer interviews - Beta testing 2 (Various makes and models of phones are worth investing in) Yes - Advanced orders PLANNING
Copyright 2012 Cowan Publishing PERSONA PROBLEM SCENARIO Orson the Office Manager ‘I still don’t get it.’ ‘This thing should increase satisfaction & involvement; and reduce support calls.’ Bruce the Business Owner Percival the Product Mgr. & ONLINE SELF-CARE One click access via ‘Dashboard’ Focus on customer admin experience IMPLEMENTATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Take II- DASHBOARDS ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 Customer admin’s will do self-care with training and awareness Yes! Focus on training customer admin’s, see if they nibble 1 Presenting all the users of interest on the 1st page will engage these admin’s Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing DASHBOARD ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Good ≠ Viral PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
Copyright 2012 Cowan Publishingsee alexandercowan.com/finplan operations begin 2007 2008 2009 2010 2011 2012 Revenue (consulting) (+some software) (50% software) (scaling software) Expenses (small/me+) (variable) (++fixed costs) Financing (n/a) (small debt offer- family) (n/a) (bank-based financing) Earnings (profitable) Visibility (moderate) (low/ moderate) (low/ moderate) (high) (high) (current products: high new products: moderate) PLANNING
Copyright 2012 Cowan Publishing Theses Growth? Retention? Supportability? Ongoing investment? Competition? Hypotheses Does anyone want this? Are we the people to do it? Pivot or persevere? PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing ORGANIZATION Customer Development (me) (dev & ops mgmt.) (dev & operations team) Scaling (me) (expanded sr. mgmt.) (dev & operations team) Feasibility (me) (dev contractors) ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing Who’s the audience? What’s the problem scenario? How will it help you sharpen your personas? Problem scenarios? How will it help you validate or invalidate pivotal assumptions? What would be the next steps? What would a concierge product test look like? ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing DEVELOPMENT LOKI PORTALS ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 LOKI PROVISIONING LOKI BPM DOC’S & INFRASTRUCTURE A ITERATION 05 ITERATION 05 D E C G Predictive Content B F Predictive Content Predictive Content Predictive Content Adaptive Content Adaptive Content Adaptive Content Adaptive Content
Specialties (VARIOUS)DESIGN UNIXSYSADMIN RUBY PYTON JAVA PHP ... ... ... SEO ANALYTICS ... (VARIOUS)MGMT. ... Copyright 2012 Cowan Publishing Basic Technical Literacy SOFTWARE FUNDAMENTALS Model-View-Controller ARCHITECTURE FUNDAMENTALS App. & Platform Integration ROLES & SYSTEMS In a Technical Team Stories Personas Development Discussion Foundation Concepts ITERATIVE MANAGEMENT DESIGN THINKING CUSTOMER DEVELOPMENT AGILE Collaboration AGILE As Product Owner ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing MAKING PROGRESS IDEA! Positioning Statement? Field Work & Analytics Ideation & Design Product Development General Management Pivotal Assumptions? Field Discovery Still Learning? Field Validation Draft Prototype Quicky Prototype? Yes? Confident? No? Create User Stories Done? Customer Definition Personas? Problem Scenarios? New Learning? Define MVP CUSTOMER VALIDATION ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing BUY THE BOOK A practical primer for anyone wanting to actually implement today’s best practices in product development (available online or at any major retailer) VISIT THE SITE Free talks, tutorials, and resources for product development and new ventures. MORE? ALEX COWAN AlexanderCowan.com @cowanSF
Copyright 2012 Cowan Publishing @cowanSF alexandercowan.com/blog acowan@alexandercowan.com alexandercowan.com/speaking alexandercowan.com/resources ALEX COWAN AlexanderCowan.com @cowanSF

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  • 11. Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 12. Copyright 2012 Cowan Publishing Entry1 Urinate as they go2 Edges preferred3 Speedy4 PB > cheese5 Empathy IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 13. Copyright 2012 Cowan Publishing Check & Repair UV Validation Relevant Placement A Better Mouse Trap Powered by Better Bait Creativity 1 2 3 4 5 ALEX COWAN AlexanderCowan.com @cowanSF
  • 14. Copyright 2012 Cowan Publishing IDEATION Personas Problem Scenarios ? ALEX COWAN AlexanderCowan.com @cowanSF
  • 15. Copyright 2012 Cowan Publishing •Women •Age 28-45 •Have kids •Socialize with other mom’s •Online with Facebook •86% said they’d like to be more organized •70% said they’d use an application that organizes them IDEATION
  • 16. Copyright 2012 Cowan Publishing IDEATION (see http://bit.ly/ywalkman) ALEX COWAN AlexanderCowan.com @cowanSF
  • 17. Copyright 2012 Cowan Publishing Mary is a mom by choice. She had a successful career in accounting, but welcomed the opportunity to be a stay at home mom. She loves it. But it’s not like having kids purged her creative, social instincts. She wants to connect, she wants to learn, she wants to interact. Being a mom is a job and she wants to do it well. That means corresponding with other mom’s on relevant topics and keeping the family calendar in ship shape. She posts to Facebook at least twice a week and responds to other moms’ items more often than that. For household stuff, Costco is the go-to place, but she’ll pick up fresh items at the farmer’s market when it’s up and splurge at Whole Foods when they’re having company. Mary the Mom IDEATION
  • 18. Copyright 2012 Cowan Publishing IDEATION
  • 19. Copyright 2012 Cowan Publishing IDEATION Personas User Stories Problem Scenarios ?
  • 20. Copyright 2012 Cowan Publishing Drafting Stories PERSONAS STORIES Epic Stories Stories Test Cases “As a [persona], I want to [do something] so that I can [derive a benefit]” IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 21. Copyright 2012 Cowan Publishing BorrowedwithutmostregardfromBanksy(banksy.co.uk) IDEATION
  • 22. Copyright 2012 Cowan Publishing PLANNING !5,000,000% 0% 5,000,000% 10,000,000% 15,000,000% 20,000,000% 25,000,000% 30,000,000% 35,000,000% 40,000,000% 45,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% Revenue% Expense% EBITDA% Five Year Plan Then Iterative Management Now 6.a PIVOT experiments disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 PIVOT OR PERSEVERE? 6.b PERSEVERE experiments prove hypothesis ALEX COWAN AlexanderCowan.com @cowanSF
  • 23. !5,000,000% 0% 5,000,000% 10,000,000% 15,000,000% 20,000,000% 25,000,000% 30,000,000% 35,000,000% 40,000,000% 45,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% Revenue% Expense% EBITDA% Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 24. Copyright 2012 Cowan Publishing PLANNINGPLANNING Do I have real evidence from my buyer that this is compelling? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis What are the key assumptions required to make this business work? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis How do I definitely prove or disprove the assumptions with a minimum of time and effort? 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Am I reacting or am I focused on validating my pivotal assumptions? ‘Pivot or persevere?’
  • 25. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 [A key assumption about the business] [Whether it needs proving [Experiment to prove or disprove] 1 Parents want to better organize the distribution of allowances Yes * Post the proposition in ads online * Measure sign-up’s on a landing page 2 Parents have smart phones No n/a PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 26. Copyright 2012 Cowan Publishing PLANNING
  • 27. Copyright 2012 Cowan Publishing $ PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 28. Copyright 2012 Cowan Publishing ORGANIZATION == Aping Then Customer Development Now ALEX COWAN AlexanderCowan.com @cowanSF
  • 29. Copyright 2012 Cowan Publishing ≠ ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 30. Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 31. Big Company Recipes Applied Copyright 2012 Cowan Publishing 5 Year Plan == 10x Returns! X: < Odds at Lotto VC-Encouraged Menagerie X: Too much too soon X: Lack of Experience in Hands-on Discovery X: Better Luck with the Lottery Time to Face the Music X: New Theories to Explain Plan v. Actual X: Fun and Profit- Unlikely ORGANIZATION ++ New Idea! Expanded Team Revisions to Plan == Edgy Board X: Want Lots of Capital at Work It Works! Working 5 Year Plan New HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
  • 32. Investors? Advisors? Focus on Validated Learning Copyright 2012 Cowan Publishing Key Assumptions ID’ed, Validated Lower Risk & Capital Requirement Resources As Needed Clear Focus in Hiring & Contracting Roles and Success Criteria Clear Progress is Quick and Measurable Time to Face the Music Validated Learning Answers Shared Questions Fun & Profit ORGANIZATION ++ New Idea! Full Tilt at a ‘Pivot or Persevere’ Moment Is approach working or not? Option for Non-Traditional Funding Strategies Expanded TeamNew HiresFounders Investors Board ALEX COWAN AlexanderCowan.com @cowanSF
  • 33. Copyright 2012 Cowan Publishing DEVELOPMENT Waterfall Then Agile Now ALEX COWAN AlexanderCowan.com @cowanSF
  • 34. Copyright 2012 Cowan Publishing Individuals Interactions > Processes Tools Working software Comprehensive Documentation > Customer collaboration Contract negotiation > Responding to change Following a plan > DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
  • 35. Copyright 2012 Cowan Publishing DEVELOPMENT validate feature relevance with customers Past collaborate with development team Present observe and envision what’s next Future
  • 36. Copyright 2012 Cowan Publishing DESIGN THINKING LEAN STARTUP CUSTOMER DEV. AGILE personas problem scenarios user stories hypothesis (assumptions) experimental design roles & team objectives working product ALEX COWAN AlexanderCowan.com @cowanSF
  • 37. Copyright 2012 Cowan Publishing 2007 went out on my own 2008 profitable, productized consulting business 2010 software business 2011 scaling! 2013 keep learning, keep innovating ALEX COWAN AlexanderCowan.com @cowanSF
  • 38. Copyright 2012 Cowan Publishing A LEAN PROGRESSION CONSULTING PRODUCTS Validated problem scenarios with substantial detail ‘PRODUCTIZED’ CONSULTING Customer empathy- more scope, detail on problem scenarios
  • 39. Copyright 2012 Cowan Publishing UNDERSTANDING THE MARKET 50-70% of Enterprise Software Implementations Fail ALEX COWAN AlexanderCowan.com @cowanSF
  • 40. Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 41. How do we do this more efficiently? Are we implementing best practices? How do we improve service quality? How do we verify that? Copyright 2012 Cowan Publishing IDEATION Help me integrate and standardize the infrastructure. And show my people how to use it. Creating accounts is taking a lot of time/ money. And there are a lot of mistakes. ALEX COWAN AlexanderCowan.com @cowanSF
  • 42. Copyright 2012 Cowan Publishing IDEATION SERVICE STANDARDIZATION & WORKFLOW SERVICE DESIGN PROCESS AUDIT, DESIGN NETWORK PRINCIPALS OF OPERATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 43. Copyright 2012 Cowan Publishing USER STORIES “As a receptionist, I want to receive an out of the box set up that’s created against best practices so I don’t have to set it all up by myself.” “As a receptionist, I want to change the buttons on my phone so they do what I want.” PROBLEM SCENARIO ‘I want a good out-of-the-box experience. And to change the display on my phone.’ PERSONA Rhonda the Receptionist IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 44. Copyright 2012 Cowan Publishing STORY TEST CASE “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the available templates are editable in a visual environment usable by a Product Manager “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure it’s possible to update the template at install time “As a receptionist, I want to receive an out of the box phone set up that’s created against best practices so I don’t have to set it all up by myself.” Make sure the template designation is available in all Loki provisioning interfaces “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure it’s possible for the user to reset to the default template “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure the available functions are filtered by the services assigned to the user “As a receptionist, I want to change the buttons on my phone so they do what I want.” Make sure available functions are filtered based on the capabilities of the phone key “As a receptionist, I want a custom configuration on my phone so that I can manage calls in the way I’ve come to expect.” EPIC STORY IDEATION
  • 45. Copyright 2012 Cowan Publishing IDEATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 46. Copyright 2012 Cowan Publishing MARY THE MOM About: Mary the mom. . . [Describe like your friend or the beginning of a short story. What kind of shoes does she wear?]. . . Thinks: . . . Sees: . . . Feels: . . . Does: . . . 1. List at least 3 personas 2. Describe as much as you can (5 minute exercise)
  • 47. Copyright 2012 Cowan Publishing END USER PERSONAS Rita the Reseller Orson the Office Mgr. Ignatius the IT Guy Rhonda the Receptionist Susan the Small Bus. Owner Keith the Key System User Amy the Assistant Simone the Standard User Chuck the Call Center Agent Esteban the Executive Mikuko the Mobile User Cindy the Call Center Manager
  • 48. Copyright 2012 Cowan Publishing ENTERPRISE PERSONAS Nietzsche the Network Eng. Paola the Provisioner Sidney the Sys. Admin. Percival the Product Manager Sven the Salesperson Anthony the Applications Eng. Itzhak the IT Developer Frank the Field Eng. Sam the Support Eng. Saul the Site Developer Fritz the Field Eng. Manager Bruce the Business Owner
  • 49. Copyright 2012 Cowan Publishing PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 50. Copyright 2012 Cowan Publishing PLANNING Visual device management emerged from general industry activity and follow-on work at Leonid 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Leonid can create a compelling, useful, supportable visual device management solution. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Lab work followed by limited commercial release. 6.a YES results disprove hypothesis 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 REVISE? 6.b NO we appear to have a valid hypothesis Did we validate the ‘existential’ propositions? Was it supportable? Bankable? ‘Pivot or persevere?’ ALEX COWAN AlexanderCowan.com @cowanSF
  • 51. Copyright 2012 Cowan Publishing “Parents want to better organize the distribution of allowances” Priority: [1 for existential; 2+ for others] Needs Proving?: [yes or no] Experimentation: [how will most quickly, cheaply prove or disprove] * Bonus Question: How do these relate to your personas? 1. List at least 3 assumptions 2. Note as much as you can on experiments (5 min. exercise)
  • 52. Copyright 2012 Cowan Publishing PRIORITY KEY ASSUMPTIONS NEEDS PROVING? EXPERIMENTATION 1 End users at large want a visual tool to manage their phones No - Already proven by prototypes from partner 1 Giving the capability to end user admin’s will do more good than harm Yes - Beta testing with customers 1 The design and architecture are supportable in current customer environments Yes - Lab testing with customers...but really... - Field testing at scale 1 The target price point is bearable by the market Yes - Initial sales negotiations - Mainline (post beta) sales 2 The capability makes sense with end users (vs. admin’s) Yes - Some proxy data on overall activity by user type - Customer interviews - Beta testing 2 (Various makes and models of phones are worth investing in) Yes - Advanced orders PLANNING
  • 53. Copyright 2012 Cowan Publishing PERSONA PROBLEM SCENARIO Orson the Office Manager ‘I still don’t get it.’ ‘This thing should increase satisfaction & involvement; and reduce support calls.’ Bruce the Business Owner Percival the Product Mgr. & ONLINE SELF-CARE One click access via ‘Dashboard’ Focus on customer admin experience IMPLEMENTATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 54. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 55. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 End users want to log in and do self-care Yes! Instrument adequate reporting, create awareness, see if they nibble 1 Reducing the portals clicks to destination from 4-6 to 2-3 is good enough Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 56. Copyright 2012 Cowan Publishing Take II- DASHBOARDS ALEX COWAN AlexanderCowan.com @cowanSF
  • 57. Copyright 2012 Cowan Publishing Priority Key Assumption Needs Proving? Experimentation 1 Customer admin’s will do self-care with training and awareness Yes! Focus on training customer admin’s, see if they nibble 1 Presenting all the users of interest on the 1st page will engage these admin’s Yes - Log and analyze navigation - Do support calls go down? ASSUMPTIONS ON SELF-CARE ALEX COWAN AlexanderCowan.com @cowanSF
  • 58. Copyright 2012 Cowan Publishing DASHBOARD ALEX COWAN AlexanderCowan.com @cowanSF
  • 59. Copyright 2012 Cowan Publishing Good ≠ Viral PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 60. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
  • 61. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Licensing Maintenance & Support Consulting Custom Development Dedicated personal assistance BroadSoft SIPhon Networks Direct Reduced time & risk to get to market Reduced cost Implementation of learned best practices Large/incumbent Medium/competitive Small/niche Copyright 2012 Cowan Publishing PLANNING
  • 62. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
  • 63. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.The templates here are made available on the same CC license terms as the original canvas. Fixed: product development, G&A Variable: field teams, support BroadSoft Other resellers Integrators Other network system vendors Product development Large account mgmt. Consulting Custom Dev. Actionable insight on cloud UC Best practice recipes Dev. Team Copyright 2012 Cowan Publishing PLANNING
  • 64. Copyright 2012 Cowan Publishingsee alexandercowan.com/finplan operations begin 2007 2008 2009 2010 2011 2012 Revenue (consulting) (+some software) (50% software) (scaling software) Expenses (small/me+) (variable) (++fixed costs) Financing (n/a) (small debt offer- family) (n/a) (bank-based financing) Earnings (profitable) Visibility (moderate) (low/ moderate) (low/ moderate) (high) (high) (current products: high new products: moderate) PLANNING
  • 65. Copyright 2012 Cowan Publishing Theses Growth? Retention? Supportability? Ongoing investment? Competition? Hypotheses Does anyone want this? Are we the people to do it? Pivot or persevere? PLANNING ALEX COWAN AlexanderCowan.com @cowanSF
  • 66. Copyright 2012 Cowan Publishing ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 67. Copyright 2012 Cowan Publishing ORGANIZATION Customer Development (me) (dev & ops mgmt.) (dev & operations team) Scaling (me) (expanded sr. mgmt.) (dev & operations team) Feasibility (me) (dev contractors) ALEX COWAN AlexanderCowan.com @cowanSF
  • 68. Copyright 2012 Cowan Publishing Who’s the audience? What’s the problem scenario? How will it help you sharpen your personas? Problem scenarios? How will it help you validate or invalidate pivotal assumptions? What would be the next steps? What would a concierge product test look like? ALEX COWAN AlexanderCowan.com @cowanSF
  • 69. Copyright 2012 Cowan Publishing DEVELOPMENT ALEX COWAN AlexanderCowan.com @cowanSF
  • 70. Copyright 2012 Cowan Publishing DEVELOPMENT LOKI PORTALS ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 ITERATION 01 ITERATION 02 ITERATION 03 ITERATION 04 LOKI PROVISIONING LOKI BPM DOC’S & INFRASTRUCTURE A ITERATION 05 ITERATION 05 D E C G Predictive Content B F Predictive Content Predictive Content Predictive Content Adaptive Content Adaptive Content Adaptive Content Adaptive Content
  • 71. Specialties (VARIOUS)DESIGN UNIXSYSADMIN RUBY PYTON JAVA PHP ... ... ... SEO ANALYTICS ... (VARIOUS)MGMT. ... Copyright 2012 Cowan Publishing Basic Technical Literacy SOFTWARE FUNDAMENTALS Model-View-Controller ARCHITECTURE FUNDAMENTALS App. & Platform Integration ROLES & SYSTEMS In a Technical Team Stories Personas Development Discussion Foundation Concepts ITERATIVE MANAGEMENT DESIGN THINKING CUSTOMER DEVELOPMENT AGILE Collaboration AGILE As Product Owner ORGANIZATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 72. Copyright 2012 Cowan Publishing MAKING PROGRESS IDEA! Positioning Statement? Field Work & Analytics Ideation & Design Product Development General Management Pivotal Assumptions? Field Discovery Still Learning? Field Validation Draft Prototype Quicky Prototype? Yes? Confident? No? Create User Stories Done? Customer Definition Personas? Problem Scenarios? New Learning? Define MVP CUSTOMER VALIDATION ALEX COWAN AlexanderCowan.com @cowanSF
  • 73. Copyright 2012 Cowan Publishing BUY THE BOOK A practical primer for anyone wanting to actually implement today’s best practices in product development (available online or at any major retailer) VISIT THE SITE Free talks, tutorials, and resources for product development and new ventures. MORE? ALEX COWAN AlexanderCowan.com @cowanSF
  • 74. Copyright 2012 Cowan Publishing @cowanSF alexandercowan.com/blog acowan@alexandercowan.com alexandercowan.com/speaking alexandercowan.com/resources ALEX COWAN AlexanderCowan.com @cowanSF