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Creativity as an Iterative Process

Prepared for MGT150 Technology Management
UC Davis, Feb 2010
Yee Lee www.linkedin.com/in/yeeguy
Product Manager




Investor/Advisor




Entrepreneur In Residence
Surgeon General's Warning:
This talk primary applies to
consumer internet companies.
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              CREATIVITY THEORY
Umm, why are we doing this?
Why not just start here?
Creative Business Tasks
Business planning
Market-entry segmentation
Product/website information architecture
Marketing call-to-action content
Choosing a color pallet
How to implement a query function
How to keep your team motivated

Common characteristics
● Non-deterministic impact on business goal
● No clear “correct” a priori solution
How to manage and
evaluate creativity in
dynamic businesses?

● Partial/ambiguous goals
● Unbounded solution space
Evolutionary Strategies
  Iteration & Learning
  Diversity
  Increments & Revolutions
  Think: loops, not linear flows
YOU ARE HERE
Jump forward? Look for mines?
  Step left? Shout for help?

 If (slope > 0) {1 step forward}
      Else {rotate 30 right}
Wireless Data
                    Encryption

Financial Data
  Encryption        Wireless
                     Money
                    Transfers
      Email
    Payments
                    Email
                 Payments for
                 eBay Sellers      ???
Desktop
                Realtime
              Photosharing         Desktop
                                  Newsticker

                   Screensaver
Screensaver         Newsticker     Desktop
  Games                             Chat


     MySpace
    Photosharing
                       Facebook
                         Apps          ???
Value of Creativity

Diversity of testable ideas
→ provable or negatable


Impactful, normative tests
e.g., “double-down” or “fold”
Testing Concepts
Test vs. Control (A/B split tests)
Measurable outcomes (analytics)
Statistical significance (Chi square)
Cohort analysis
Competitive benchmarking
Crap. Now what?
Creative Advantage
Pace
Run quick & cheap experiments
Fast decision-making

Consistency
Repeatable experimental process
Willingness to drop losing ideas

Motivation
High morale, despite repeated failure
Incentives and games
Rapid Iteration Resources
Steve Blank
Four Steps to the Epiphany (available on Amazon.com)
www.sgblank.com

Eric Reis
www.startuplessonslearned.com

Sean Ellis
www.startup-marketing.com

Google:
“customer development”
“lean startup”
“minimum viable product”
Creativity as an Iterative Process

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Creativity As Iterative Process

  • 1. Creativity as an Iterative Process Prepared for MGT150 Technology Management UC Davis, Feb 2010
  • 2. Yee Lee www.linkedin.com/in/yeeguy Product Manager Investor/Advisor Entrepreneur In Residence
  • 3. Surgeon General's Warning: This talk primary applies to consumer internet companies.
  • 4. ls ia ces t Tr por acti Br t-pr d ok te es Sup gB ea Ch alle er rmin ep nge in nsto g rai R B Freedom Encouragement rsity Risk-t Dive aking es tiv en I nc CREATIVITY THEORY
  • 5. Umm, why are we doing this?
  • 6. Why not just start here?
  • 7. Creative Business Tasks Business planning Market-entry segmentation Product/website information architecture Marketing call-to-action content Choosing a color pallet How to implement a query function How to keep your team motivated Common characteristics ● Non-deterministic impact on business goal ● No clear “correct” a priori solution
  • 8. How to manage and evaluate creativity in dynamic businesses? ● Partial/ambiguous goals ● Unbounded solution space
  • 9. Evolutionary Strategies Iteration & Learning Diversity Increments & Revolutions Think: loops, not linear flows
  • 11.
  • 12. Jump forward? Look for mines? Step left? Shout for help? If (slope > 0) {1 step forward} Else {rotate 30 right}
  • 13. Wireless Data Encryption Financial Data Encryption Wireless Money Transfers Email Payments Email Payments for eBay Sellers ???
  • 14. Desktop Realtime Photosharing Desktop Newsticker Screensaver Screensaver Newsticker Desktop Games Chat MySpace Photosharing Facebook Apps ???
  • 15. Value of Creativity Diversity of testable ideas → provable or negatable Impactful, normative tests e.g., “double-down” or “fold”
  • 16. Testing Concepts Test vs. Control (A/B split tests) Measurable outcomes (analytics) Statistical significance (Chi square) Cohort analysis Competitive benchmarking
  • 18. Creative Advantage Pace Run quick & cheap experiments Fast decision-making Consistency Repeatable experimental process Willingness to drop losing ideas Motivation High morale, despite repeated failure Incentives and games
  • 19. Rapid Iteration Resources Steve Blank Four Steps to the Epiphany (available on Amazon.com) www.sgblank.com Eric Reis www.startuplessonslearned.com Sean Ellis www.startup-marketing.com Google: “customer development” “lean startup” “minimum viable product”
  • 20. Creativity as an Iterative Process