This document discusses how to use Lean Startup principles and practices to innovate healthcare products faster. It introduces Lean Startup, which focuses on rapidly testing assumptions and reducing risks through customer feedback. Key aspects covered include building minimum viable products (MVPs), conducting problem and solution interviews, and the goal of achieving product-market fit by increasing customer lifetime value and decreasing customer acquisition costs after launching. The document provides an overview of the Lean Startup process and emphasizes getting customer input early through various validation techniques.
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Lean Startup for Healthcare: Workshop at Healthbox
1. Lean Startup for Healthcare
Rocket Fuel
For Your Product
Growth Bernhard Kappe
Founder and CEO
Lean Startup Strategy bkappe@pathf.com
User Experience Design 312.372.1058 x 6002
Agile Software Development @bernhardkappe
Customer Acquisition and Retention pathfindersoftware.com/blog
http://pathfindersoftware.com
Innovate Products Faster with Lean + UX + Agile
2. Agenda
• Introduction
• Lean Startup 101
• The Lean Startup Path
• Risks in Healthcare
• Mentors and Advisors
• Questions
Innovate Products Faster with Lean + UX + Agile
6. +
• Design Strategy and Research
• Medical Systems Design and Development
‣ Medical Devices
‣ Integration, Analytics and Clinical Decision Support
‣ Web and Mobile Interfaces
• Risk Mitigation and Quality Management
Innovate Products Faster with Lean + UX + Agile
7. Lean Startup
• A Product Management Approach for New
Products
• Accepts Situation of Extreme Uncertainty
• Focuses on Rapidly Reducing Risks
Innovate Products Faster with Lean + UX + Agile
8. 9 Out of 10 New Products Fail
Innovate Products Faster with Lean + UX + Agile
9. Why Do They Fail?
• New Product Uncertainty: Unknown Problem,
Unknown Solution, Unknown Customer
• The Path to Disaster
‣ Business Plan Built on Untested Assumptions
‣ Market Research Serves to Support Your Assumptions
Rather than Validate Them
‣ Scale Based on the Business Plan
‣ Lack of Customers and Markets
‣ Change Business at Scale (Slow and Expensive)
‣ Run Out of Money
Innovate Products Faster with Lean + UX + Agile
10. Product/Market Fit
• The point at which you know you can
scale profitably
‣ The customer is willing to pay for the product.
‣ The Unit Cost Per Customer < Unit Revenue Per
Customer
‣ There’s sufficient evidence indicating the market is large
enough to support the business.
‣ The sales model is repeatable and scalable
Innovate Products Faster with Lean + UX + Agile
11. Product/Market Fit Benchmarks
• (Sean Ellis) 40% of paying customers
would be very disappointed without your
product
• Net Promoter Score Over 30
• Lifetime Value Per Customer > Customer
Acquisition Cost * 3 (or LTV/3 > CAC)
Innovate Products Faster with Lean + UX + Agile
12. Steve Blank
• Companies that scaled
before they get to
product/market fit
tended to fail.
• Companies that scaled
after they get to
product/market fit
tended to succeed.
Innovate Products Faster with Lean + UX + Agile
13. Mark Andreesen
Life Before Product/Market Fit: Your goal is to get to
product/market fit any way you can.
Life After Product/Market Fit: Your goal is to scale.
Innovate Products Faster with Lean + UX + Agile
14. Your Job as an Entrepreneur:
Discover a Business
Model that works
before you run out of
Money and Time.
(Then scale it.)
Innovate Products Faster with Lean + UX + Agile
17. Customer Discovery
• Question Your Assumptions
• Engage with your customers in specific ways
that test those assumptions:
‣ “Get Out of the Building” and test your core customer-problem
solution assumptions.
‣ Define and build Minimal Viable Products (MVPs) that test
technological or market risk (the willingness of customers to pay
for a specific set of features)
‣ Document and test your assumptions on the mechanics of your
business ecosystem/business model
‣ Create a value path for mitigating high risk items first in the
hopes of making major pivots as early as possible.
Innovate Products Faster with Lean + UX + Agile
18. Customer Validation
• Get to Product-Market Fit
• Business Model Validation
• Sales and Marketing Road Map
Innovate Products Faster with Lean + UX + Agile
19. Lean Startup Principles
• A Business Model, Not a Business Plan
• Fast Learning Loops: Build-Measure-Learn
• Learning Japanese: Genchi Genbutsu
• MVP - It’s Not What You Think
Innovate Products Faster with Lean + UX + Agile
20. 1. A Business Model, Not a
Business Plan
Innovate Products Faster with Lean + UX + Agile
22. Questions Your Assumptions
• Is this problem worth solving?
• Who’s problem are you solving?
• How are they solving it now?
• Does anyone care about your solution?
• Will they buy it?
• How do you create value for your customers?
• How will you grow?
• What’s your unfair advantage?
• What channels will you use to get to your customers?
• What are your acquisition costs per customer?
• What is the lifetime value of your customer?
• What’s your unit cost model? Unit revenue model?
Innovate Products Faster with Lean + UX + Agile
26. Lean Canvas
Problem Solution Unique Value Unfair Customer
Proposition Advantage Segments
Top 3 Problems Top 3 features that
address the Single, clear, Can’t be easily Target Customers
problem compelling copied or bought
message why you
are different and
worth buying
Key Channel
Activities
Path to customers
Activity that drives for marketing and
acquisition/ sales
revenue
Cost Structure* Revenue Model*
•Customer acquisition costs (Unit, per customer) •Revenue Model
•Distribution costs •Lifetime Value (Unit- per customer)
•Hosting •Revenue
•People, etc. •Gross Margin
Innovate Products Faster with Lean + UX + Agile
27. • Business Model Resources
‣ SteveBlank.com
‣ Osterwalder: Business Model Generation
‣ Maurya: Running Lean
• Business Model Tools
‣ Paper/Whiteboard/Post-Its
‣ Keynote/Powerpoint
‣ Lean Canvas (http://leancanvas.com/)
‣ Business Model Toolbox iPad App
(http://www.businessmodelgeneration.com/)
‣ Lean Launch Lab
(https://www.leanlaunchlab.com/)
Innovate Products Faster with Lean + UX + Agile
28. 2. Fast Learning Loops
Innovate Products Faster with Lean + UX + Agile
31. Genchi Genbutsu =
Go To The Source
(Get Out of the Building)
Innovate Products Faster with Lean + UX + Agile
32. 4. MVP (Minimum Viable Product) -
It’s Not What You Think!
Innovate Products Faster with Lean + UX + Agile
33. Example MVPs
• Dropbox: Smoke Test
• Egyptian Democracy Movement: Mini
Demonstrations
• GLIF: Kickstarter Campaign, 3D Print +
Video
• eSpark: Paper Instructions and Tests
(Concierge MVP)
• Groupon: Wordpress Blog, Widget from The
Point, PDF Coupons via email.
Innovate Products Faster with Lean + UX + Agile
34. More on MVP
• Not one snapshot,
but a progression of
experiments
Innovate Products Faster with Lean + UX + Agile
35. The Lean Startup Path
Innovate Products Faster with Lean + UX + Agile
36. Customer/Problem Hypotheses
Problem Solution Unique Value Unfair Customer
Top 3 features that Proposition Advantage Segments
Top 3 Problems address the Can’t be easily
problem copied or bought
Single, clear, Target Customers
? ?
compelling
message why you
are different and
worth buying
? Key
Activities
Channel
Path to customers ?
Activity that drives
acquisition/
? for marketing and
sales
revenue
? ?
Cost Structure Revenue Model
•Customer acquisition costs •Revenue Model
•Distribution costs
•Hosting
? •Lifetime Value
•Revenue ?
•People, etc. •Gross Margin
Innovate Products Faster with Lean + UX + Agile
37. Problem Interviews
• Customer
Demographics
(Discover 1 4
Subsegments)
• Validate Their Top Three
Problems 2
5
• Discover New Problems
• Rank the Problems 3
• How Do They Solve
Them Now?
Innovate Products Faster with Lean + UX + Agile
38. Guidelines for Interviews
• There are no right or wrong answers
• Ask open-ended questions
• Don’t ask leading questions
• Don’t ask if they will use something/some
feature
• Keep a straight face, always
• Find out why
• Remember to thank them
Innovate Products Faster with Lean + UX + Agile
39. Personas and Goals Workshop
Who: UXD, PM, Visual Designer, Lead Developer, Client
• Determine the universe
of people that are
using or influencing
the use of the product
• Persona is a
“representative” for
each type of user
• Allows for easy
reference in future
discussions
• Includes stock photo,
goals, major tasks, etc.
Innovate Products Faster with Lean + UX + Agile
40. Solution Hypotheses
Problem Solution Unique Value Unfair Customer
Top 3 features that Proposition Advantage Segments
Top 3 Problems address the Can’t be easily
problem copied or bought
Single, clear, Target Customers
? ?
compelling
message why you
are different and
worth buying
? Key
Activities
Channel
Path to customers ?
Activity that drives
acquisition/
? for marketing and
sales
revenue
? ?
Cost Structure Revenue Model
•Customer acquisition costs •Revenue Model
•Distribution costs
•Hosting
? •Lifetime Value
•Revenue ?
•People, etc. •Gross Margin
Innovate Products Faster with Lean + UX + Agile
42. Workflows Workshop
Who: UXD, PM, Visual Designer, Lead Developer, Client
• Determine all of
the workflows
for each
persona.
• No activity
should reside
outside of a flow.
Innovate Products Faster with Lean + UX + Agile
43. Prototyping
• Way to get feedback on ideas before they are
completely set
• Much cheaper to modify a prototype than real
code
• People tend to give better feedback if it’s not
completely polished
• Just enough information to get your point
across and test key features
• Don’t focus on colors, layout, low-level
interactions
Innovate Products Faster with Lean + UX + Agile
44. Types of Prototypes
• Paper prototype
• Clickable pdf
• HTML
• Foam blocks
Innovate Products Faster with Lean + UX + Agile
45. Solution Interviews
• Recap Demographics
and Problem
• Describe and Show 1 4
Solution (don’t sell it!)
• Does it Resonate?
• What’s most important,
2
5
what’s missing, what can
you take away?
• How do they find out 3
about solutions to this 6
problem?
• Will they pay $X?
Innovate Products Faster with Lean + UX + Agile
46. Drill down to Minimum Viable
Product (MVP)
1 4
2
5
X
3
X 6
Innovate Products Faster with Lean + UX + Agile
47. Customer Discovery
Business Model Problem
Generation Interviews
MVP
Solution Solution
Design Interviews
Innovate Products Faster with Lean + UX + Agile
48. When Do You Stop Solution Interviews?
• Not Learning Anything New
• Prototyping takes too long
Innovate Products Faster with Lean + UX + Agile
49. Development
• It’s Expensive
• Need Developers
• Do cheaper, faster
experiments first
• Need to deliver
small experiments
Innovate Products Faster with Lean + UX + Agile
50. Cowboy Coding
• It’s Fast
• It’s Cheap (for a
while)
• It’s not
maintainable
• Be prepared to
throw it out
Innovate Products Faster with Lean + UX + Agile
51. Lean Startup: Two Fast Feedback Loops
Innovate Products Faster with Lean + UX + Agile
52. Customer Validation
The Path to Product Market Fit
9000
Customer Acquisition Cost
You Are Here Customer Lifetime Value/3
6750
4500
You Need to Get Here!
Product/Market Fit:
2250
LTV/3 >= CAC
0
Month 1 Month 2 Month 3 Month 6 Month 5 Month 6 Month ? Month 8 Month 9 Month 16 Month 11 Month 12
Innovate Products Faster with Lean + UX + Agile
53. Post Launch Goal:
• Increase LTV and Decrease CAC
Innovate Products Faster with Lean + UX + Agile
54. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
Innovate Products Faster with Lean + UX + Agile
55. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
• Improve value to customer
Innovate Products Faster with Lean + UX + Agile
56. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
• Improve value to customer
Add features
Innovate Products Faster with Lean + UX + Agile
57. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
• Improve value to customer
Add features
Improve Features
Innovate Products Faster with Lean + UX + Agile
58. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
• Improve value to customer
Add features
Improve Features
Remove features
Innovate Products Faster with Lean + UX + Agile
59. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Increase LTV
• Improve value to customer
Add features
Improve Features
Remove features
• Find and foster loyalty
behaviors
Innovate Products Faster with Lean + UX + Agile
60. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Decrease CAC ‣ Increase LTV
• Improve value to customer
Add features
Improve Features
Remove features
• Find and foster loyalty
behaviors
Innovate Products Faster with Lean + UX + Agile
61. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Decrease CAC ‣ Increase LTV
• Changes to messaging • Improve value to customer
Add features
Improve Features
Remove features
• Find and foster loyalty
behaviors
Innovate Products Faster with Lean + UX + Agile
62. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Decrease CAC ‣ Increase LTV
• Changes to messaging • Improve value to customer
• Changes to marketing Add features
channels
Improve Features
Remove features
• Find and foster loyalty
behaviors
Innovate Products Faster with Lean + UX + Agile
63. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Decrease CAC ‣ Increase LTV
• Changes to messaging • Improve value to customer
• Changes to marketing Add features
channels
Improve Features
• Does the Experience
Match the Marketing? Remove features
• Find and foster loyalty
behaviors
Innovate Products Faster with Lean + UX + Agile
64. Post Launch Goal:
• Increase LTV and Decrease CAC
‣ Decrease CAC ‣ Increase LTV
• Changes to messaging • Improve value to customer
• Changes to marketing Add features
channels
Improve Features
• Does the Experience
Match the Marketing? Remove features
• Changes to Optimize • Find and foster loyalty
Customer Acquisition behaviors
Funnel/Experience for
New Users
Innovate Products Faster with Lean + UX + Agile
65. Post Launch Fast Feedback Loops
• You have real users and precise usage data
on individuals - analyze it!
• Make small changes fast (hours, not weeks
to get into production)
• When you make changes - A/B test (or do
multivariate if you have big enough
volumes.)
Innovate Products Faster with Lean + UX + Agile
66. Metrics for Pirates
• Acquisition
‣ Users come to site from various channels
• Activation
‣ Users enjoy 1st visit: "happy" experience
• Retention
‣ Users come back, visit site multiple times
• Referral
‣ Users like product enough to refer others
• Revenue
‣ Users conduct some monetization behavior
Innovate Products Faster with Lean + UX + Agile
67. Build Metrics Into Your MVP
Innovate Products Faster with Lean + UX + Agile
69. Feedback
• What are users doing?
• What aren’t they doing?
• Where do they seem to be having
problems?
• What else do they want?
• Why?
Innovate Products Faster with Lean + UX + Agile
70. Feedback - What users are (& aren’t) doing
• Acquisition and retention funnels,
interventions
• Cohorts
• A/B or multivariate testing
Innovate Products Faster with Lean + UX + Agile
71. Feedback
• Feature Requests - User Voice
• Net Promoter Score - KISSinsights
• % Who Would Be Very Disappointed
Without Your Product.
Innovate Products Faster with Lean + UX + Agile
72. Feedback - Why users are behaving as
they are
• Usability testing
‣ what users as they use the product
‣ have them talk out loud
• find out why they are doing things
• what they are looking for
• what they expect to see
Innovate Products Faster with Lean + UX + Agile
73. Feedback
• Continuous Deployment: roll small tests
into production in hours, get feedback
• Bigger feature changes, new features - use
agile
• Consider adding “Validated” to stories
being done
Innovate Products Faster with Lean + UX + Agile
77. Common Mistakes
• Too Broad a Segment
• Not a Big Enough Problem
• Not a Big Enough Market
• Don’t Test the Riskiest Assumptions First
• Surveys Instead of Interviews
• Mix Problems and Solutions
• Confuse Users and Customers
• Build Too Much (Fat Experiments)
• Don’t Test Revenue Model Early Enough
• Stop Experimenting When You Have Customers (No Metrics and
no qualitative feedback)
• No UX and No Agile
Innovate Products Faster with Lean + UX + Agile
78. 10 types of innovation: move beyond products to win
67
79. 10 types of innovation: move beyond products to win
5. Product performance
basic features, performance and functionality
6. Product system
extended system that surrounds an offering
7. Service
how you service your customers
Offering
Product Product Service
performance system
67
80. 10 types of innovation: move beyond products to win
5. Product performance
basic features, performance and functionality
6. Product system
extended system that surrounds an offering
7. Service
how you service your customers
Process. Offering
Enabling Core Product Product Service
process process performance system
3. Enabling process
assembled capabilities
4. Core process
proprietary processes that add value
67
81. 10 types of innovation: move beyond products to win
5. Product performance
basic features, performance and functionality
6. Product system
extended system that surrounds an offering
7. Service
how you service your customers
Process. Offering Delivery
Enabling Core Product Product Service Channel Brand Customer
process process performance system experience
8. Channel
how you connect your offerings to
3. Enabling process your customers
assembled capabilities
9. Brand
how you express your offering’s
4. Core process benefit to customers
proprietary processes that add value
10. Customer experience
how you create an overall
experience for customers
67
82. 10 types of innovation: move beyond products to win
1. Business model 5. Product performance
how the enterprise makes money basic features, performance and functionality
2. Networking 6. Product system
enterprise’s structure/ extended system that surrounds an offering
value chain
7. Service
how you service your customers
Finance Process. Offering Delivery
Business Networking Enabling Core Product Product Service Channel Brand Customer
model process process performance system experience
8. Channel
how you connect your offerings to
3. Enabling process your customers
assembled capabilities
9. Brand
how you express your offering’s
4. Core process benefit to customers
proprietary processes that add value
10. Customer experience
how you create an overall
experience for customers
67
86. Physicians and
Key value chain areas--healthcare surgeons
Hospital
systems
Patient
Health insurance
& managed care
70
87. Physicians and
Key value chain areas--healthcare surgeons
Pharmaceuticals
Hospital
systems
Medical
appliances Patient
Health insurance
& managed care
Medical
equipment
70
88. Healthcare Challenges
• Complex Ecosystems
• Lots of Complex Knowledge Domains
• Lots of Regulations
• Important Stakeholders Are Hard to Reach
• Getting to Product/Market Fit Can Be Expensive
Innovate Products Faster with Lean + UX + Agile
89. Mitigation Strategies
• Understand the Landscape
• Lean Hypothesis Testing is Even More Essential
• Go To the Source/Get Out of the Building
• Start with High Risk Items
• Get Advisors and Mentors, and Leverage Them
‣ Domain and Ecosystem Knowledge
‣ Introductions, Access to Customers (for Research)
‣ Regulatory Knowledge
‣ Entrepreneurial Experience
Innovate Products Faster with Lean + UX + Agile
90. More on Advisors and Mentors
• Get Them
• Use Their Network (But Not To Sell)
• Communicate With Them
‣ Weekly Summary, Asks
‣ Lean Launch Lab
Innovate Products Faster with Lean + UX + Agile
94. Startup Scoreboard
How do investors, employees, advisors and partners evaluate a startup?
Prioritized Criteria Risk Traction Metrics Value
Low Profit High
1.Traction Revenues
2.Team Pilot Customers
3.Social Proof Non-Paying Customers
4.Model High Validated Hypothesis Low
Idea/Non-Validated
Too Hypothesis
High
Innovate Products Faster with Lean + UX + Agile
97. Lean Startup for Healthcare
Rocket Fuel
For Your Product
Growth Bernhard Kappe
Founder and CEO
Lean Startup Strategy bkappe@pathf.com
User Experience Design 312.372.1058 x 6002
Agile Software Development @bernhardkappe
Customer Acquisition and Retention pathfindersoftware.com/blog
http://pathfindersoftware.com
Innovate Products Faster with Lean + UX + Agile
Editor's Notes
Bernhard Kappe\nRun Pathfinder Software, Chicago Lean Startup Circle, invest in and advise startups\n
A lot of material, time to ask questions. We&#x2019;ll send you a dropbox link to the presentation.\n\n
A little bit of background on Pathfinder. Been around for about 10 years, Help companies launch software products. Have over 300 successful releases under our belts. We work with startups and established companies, Medical devices, web applications, educational iPad apps for kindergartners and first graders. \n
we work with startups and existing companies, help them with new product innovation - including lean startup approach and innovation accounting, portfolio management.\n
\n
\n
A series of different approaches, from scrum and xp to crystal, etc. that address this, practitioners and leaders came together to come up with the Agile Manifesto. A lot of techniques that are used in this body of knowledge.\n\nBuild software and show it to stakeholders. Do it early, do it often. \nDon't waste time on unnecessary documentation.\nGood people take responsibility if they are given it.\nWork together and communicate. \nadapt to change.\n\n
\n
\n
So a key concept here is product/market fit.\n
\n
Steve Blank. Successful serial entrepreneur. Nice exits, retired. Started teaching what he learned, what others learned. Around the time of the dot com bubble bursting. \n\nNoticed that companies from that time period that scaled before they reached product market fit - the webvans, drugstore.coms, etc. - tended to fail more (and more spectacularly)\n\nAnd that the ones who scaled after product market fit tended to be more successful.\n\n
Pragmatic marketing assumes you are after product/market fit. Or close enough.\n
Startups uncertainty\nPlus, as a startup, you have limited time to figure it out. Even if you're well funded, and you're doing new product development at a big company. No results, no job, no funding.\nSo there&#x2019;s an approach for this called customer development. \n
\nHe came up with an approach that compiled all of these lessons learned into an approach for getting to product/market fit, into a set of meta principles and stages. He called it customer development, and taught it to his students at Berkley, and then at Stanford. It was very popular, and he compiled those notes into a self published book because of the demand. It took off. The Four Steps.\n\n
understand the customers, earlyvangelists, problem, solution, what you&#x2019;re mvp might be like, how you might acquire them. No funding beforehand, don&#x2019;t know if you can bootstrap, etc. going into incubators: at or ready to cross the line. don&#x2019;t have a business until you&#x2019;ve done that.\n
\n
\n
\n
9 out of 10 startups, 9 out of 10 new products. It&#x2019;s risky.\n
You&#x2019;ve got a startup, or a new product. Your assumptions in your business plan are wrong. So don&#x2019;t waste time doing a long business plan. It&#x2019;s based on very incomplete information.\n
So there&#x2019;s another diagnosis. Maybe no one cares about the problem or your solution. It doesn&#x2019;t matter how usable it is if the problem it&#x2019;s addressing isn&#x2019;t big enough. \n
\n
\n
\n
Business Model - Complicated\nMaking a Business work is a complicated thing. Rationale - how you create, deliver and capture value. It&#x2019;s interrelated. \n\nThere's lots of moving parts that need to work together. Usually, there's lot's of ways to approach it. [business model canvas]\n\nModel it. do a few. Share it. Put it on a wall. Update it. \n\n
\n
\n
\n
\n
This comes from Lean Manufacturing, the toyota production system. Go to the source, go there yourself. Talk to customers. \n
9 out of 10 startups, 9 out of 10 new products. It&#x2019;s risky.\n
\n
The main point here is that mvp isn&#x2019;t a snapshot - it&#x2019;s a progression of experiments to validate hypotheses, and the early experiments often don&#x2019;t involve building software. Pricing. Final MVP - first one you roll out - get actual, live paying customers.\n
\n
At the start, we tackle the big problems Business Model Hypotheses\nAttack them by greatest risk and easiest to figure out. Different, but often: \nSo if you take these two together - go to the source, and minimal experiments ...\n
go to the source, the customer and find out. It&#x2019;s about as fast and easy a way to find out if you&#x2019;re solving a problem worth solving. You interview them on their problems. Demographic questions let you find subsegments of earlyvangelists. Validate, ask them if there are problems you haven&#x2019;t mentioned, have them rank the problems. If you&#x2019;ve nailed the problems, you&#x2019;ll know. If it&#x2019;s not a top 3 problem, problem $10.\n
Don&#x2019;t ask leading questions - this is great, isn&#x2019;t it?\n Don&#x2019;t ask if they will use something/some feature - they will almost always say yes\n Keep a straight face, always - don&#x2019;t give away your reaction\n Ask open-ended questions - Did you go to the grocery store last week? yes/no vs - tell me about your last grocery shopping experience \n
Personas: Who you are building this for. Includes not just obvious users, but other people who influence or are influenced by those that are using product. Ex: client who thought they had 4 users, one of which was a doctor. We determined that while doctors were a stakeholder - the software was used in their offices - but the doctor wasn&#x2019;t actually using the software, their administrative staff is. And the administrative staff could be a nurse, who has clinical background and would understand medical terminology, or the front office secretary who probably doesn&#x2019;t. Knowing that not all users have clinical background could affect things like terminology used. In the end, we identified 28 users for this client&#x2019;s product, not the 4 they originally thought.\nAnother example: educational games. Kids are clearly target audience. But parents have a stake in what is designed for their kids. As might teachers and school administrators who need to track progress of their students.\nHelps client frame who really uses their product, who they need to take into consideration. Also provides reference later in dev cycle when they want to add a feature you don&#x2019;t think is necessary or useful. Discussion becomes not about what the client wants or what you want, but which user would find this useful and to accomplish what goal.\nFor UX folks, there is an ongoing debate about the usefulness of personas. We don&#x2019;t do detailed ones about the life of the person (&#x201C;Sally, who is 45, has 3 kids and a dog, and likes long walks in the park&#x201D; We concentrate on useful information related to the the software, their knowledge base, their goals, and how they will use the software.\n
\ntypically, the big assumptions. a problem worth tackling, does anyone care?\n
In solution design, you&#x2019;re using information from customer interviews to put together personas, workflows, and low fi wireframes (hand sketched, paper is usually good enough to start. You&#x2019;re designing a high level solution to show to customers. By the way, when you&#x2019;re doing problem interviews, solution design and customer interviews, you know who&#x2019;s good to have involved? User Experience Designers.\n
Flows: show steps at a high level that the user needs to go through to accomplish a task. Looks at the what, not the how\nIncludes decision points and alternate routes\nEx: Beginning of a flow may be that the user logs in. Need to include an option for a user that doesn&#x2019;t have an account. Might be forgotten otherwise.\n\nFlows are the key to expressing a digital product, even a complex one, in a digestible set of &#x201C;things.&#x201D; A product may have 200 user stories (individual steps), but only about 10 or 15 major flows. It&#x2019;s easier to grapple with 15 things than 200. \n
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So again, usually the easiest thing to do is to take these hand sketched wireframes to prospective customers and get their feedback. Does it solve their problem? If they need a feature, ask them wy - drill down further on the problem, don&#x2019;t just take the answer at face value. If you&#x2019;re on the right track, you&#x2019;ll know from the feedback. What&#x2019;s most important, what&#x2019;s missing, what can you take away?\n
What you can take away is really important. Remember, you&#x2019;re trying to run the minimal experiment that validates or invalidates your hypotheses. \n
So this part of customer development, getting down to mvp is called customer discovery. \n\n\n\n
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Hack something together, throw it out there, get something out as fast as you can.\n\nIt&#x2019;s worth doing if it&#x2019;s short and fast. Groupon&#x2019;s wordpress blog is an example\n
Lean Startup takes the customer development fast feedback loop for hypothesis testing and couples that with another fast feedback loop - agile development. As an aside, customer development is the approach we use for new products. We use pragmatic marketing&#x2019;s product management approach. \n
Wrong. You&#x2019;ve only just started. You&#x2019;re trying to get to product market fit - a point where you can scale and make money. A rough measure for product/market fit is LTV 3x or more of CAC. Your job after MVP is to get to product/market fit. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
Changes to test might be things like layouts, calls to action, lazy vs. upfront registration, help, chat, button colors, sequencing of flows, how much functionality gets exposed for new users, etc. \n
So you don&#x2019;t stop with the experiments and fast feedback loops just because you launched - you keep going! There&#x2019;s one thing here: you need metrics. \n
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Don&#x2019;t wait to retrofit this until after launch: We bake person based metrics into mvp development, so you have funnel analysis, customer lifecycle analytics, and cohort analysis for customer retention right from launch. Other metrics like on Net Promoter score as well. \n
Don&#x2019;t wait to retrofit this until after launch: We bake person based metrics into mvp development, so you have funnel analysis, customer lifecycle analytics, and cohort analysis for customer retention right from launch. Other metrics like on Net Promoter score as well. \n
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A series of different approaches, from scrum and xp to crystal, etc. that address this, practitioners and leaders came together to come up with the Agile Manifesto. A lot of techniques that are used in this body of knowledge.\n\nBuild software and show it to stakeholders. Do it early, do it often. \nDon't waste time on unnecessary documentation.\nGood people take responsibility if they are given it.\nWork together and communicate. \nadapt to change.\n\n
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A series of different approaches, from scrum and xp to crystal, etc. that address this, practitioners and leaders came together to come up with the Agile Manifesto. A lot of techniques that are used in this body of knowledge.\n\nBuild software and show it to stakeholders. Do it early, do it often. \nDon't waste time on unnecessary documentation.\nGood people take responsibility if they are given it.\nWork together and communicate. \nadapt to change.\n\n
This can be used more for interior pages, for small on page optimization. Bigger things - have to build in yourself. Harder to do, most don&#x2019;t do it until later. \n
Good stuff\n
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Kaiser Permanente begins the implementation of a $1 billion nationwide IT infrastructure aimed at reducing costs, streamlining billings, and increasing access to information for physicians and patients.\n\nThe Balanced Budget Act of 1997 adds private fee-for-service insurance plans as an option for Medicare beneficiaries, giving Provider-Service Organizations (PSOs) and Physician Practice Management Groups (PPMGs) a greater role in the managed care arena. (1998, Networking)\n\nBuyer's Health Care Action Group (BHCAG) creates Choice Plus which sets fees for providers using a "virtual" capitation model. This model sets a standard fee-for-service amount (calculated at x$ per patient per month) and offers incentives for the providers to meet or beat that price and disincentives if they don't. (1996, Business Model)\n\nBlue Cross of California (BCC) completes its conversion to for-profit status under WellPoint Health Networks.\n\nAetna US Healthcare (now Aetna, Inc.) introduces its online enrollment service, EZEnroll. Aimed at managed care plans with 25 - 2,999 employees, EZEnroll allows administrators or employees to apply online eliminating inaccuracies on enrollment forms, reducing the time required to complete the forms, and saving Aetna $60,000 annually. (1996, Channel)\n\nColumbia/HCA Healthcare, the largest US healthcare provider begins its first national advertising campaign with $20 million earmarked to make it a household name. In 1995, the healthcare sector had 139 name changes with mergers and acquisitions the primary reason for change. (1996, Brand)\n\nOxford Health Plans becomes the first to offer a comprehensive alternative medicine policy through a credentialed network of non-physician health care providers. The program offers discounted rates negotiated for its members with a selected group of acupuncturists, chiropractors, massage therapists, and nutritionists who meet state certifications and liability requirements. (1997, Product Performance)\n
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Payors, Providers, Customers, Regulators, Software Firms, etc. \nSilos, one group does not know what another is doing.\nFDA, \n
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The lean startup is a data driven approach. You recognize that you have assumptions that you need to validate before you scale, and so you set up fast learning loops, in which you formulate falsifiable hypotheses, how you will measure them, and the minimum experiment to validate or invalidate hypotheses. There are a ton of tools and techniques that you can use at different stages. \n
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So from that have come a lot of other folks, that have pushed thinking forward. Eric Ries with the Lean Startup, Sean Ellis, Dave McClure, Ash Maurya, Brant Cooper, Steve himself, who&#x2019;ve brought it forward and evolved it.\n