how to get to problem / solution fit
TRANSCRIPT
![Page 1: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/1.jpg)
Fredi SchmidliZürich, 15 August, 2016
Hear from Fredi Schmidli - lean investor - how to get to
problem/solution fit
Lean Startup ZürichMeetup
1fredi@pragmatic-‐solutions.ch15.08.2016
![Page 2: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/2.jpg)
Fredi Schmidli
• Economist and BA• Management Teams in various functions• Entrepreneur• Business Angel and Boardmember: www.startangels.ch• Partner at pragmatic solutions• Community Builder: meetup.com/Lean-‐startup-‐Zurich/
2fredi@pragmatic-‐solutions.ch15.08.2016
![Page 3: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/3.jpg)
THE LEAN INVESTOR:MAKE LOTS OF LITTLE BETS. EXPECT MOST TOFAIL.
Dave Mc Clure @http://500.co
3fredi@pragmatic-‐solutions.ch15.08.2016
![Page 4: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/4.jpg)
Goal: To improve the success rate
Source: Ash Maurya «Running Lean»
• Develop product in half the time and at half the cost (GE)
• Reduce failure: “wrong” product and “premature” scaling
4fredi@pragmatic-‐solutions.ch15.08.2016
![Page 5: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/5.jpg)
Lean Innovation Framework
5fredi@pragmatic-‐solutions.ch15.08.2016
![Page 6: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/6.jpg)
Problem Solution Fit => ValueProblem Solution FitYou validated with MVP and prospects that a specific solution will solve a know problem to such a degree that customer will buy it.
Brant Cooper
Value assumption – test whether a product or service really delivers value to specific customers once using it.
ScaleProduct Market
fit
Problem Solution
fit
Customer Discovery
Customer Validation
Customer Creation
Is the identified problem real? Will the target customer pay? Can the problem be solved?
6fredi@pragmatic-‐solutions.ch15.08.2016
![Page 7: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/7.jpg)
From Idea to Problem/Solution Fit
7Source: Ash Maurya «Running Lean»
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 8: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/8.jpg)
Key Principle
Get out of the building and 1 2 3 4 5 6 7 8 9
8fredi@pragmatic-‐solutions.ch15.08.2016
![Page 9: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/9.jpg)
Lean Canvas (by Ash Maurya / adapted from Osterwalder)
9fredi@pragmatic-‐solutions.ch15.08.2016
![Page 10: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/10.jpg)
Why Lean Innovation?
See: http://practicetrumpstheory.com/2012/02/why-‐lean-‐canvas/
10fredi@pragmatic-‐solutions.ch15.08.2016
![Page 11: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/11.jpg)
The 3 Phases of Customer Development
11Source: Ash Maurya, Scaling Lean
What happens here?
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 12: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/12.jpg)
Different Stages, 10x product launch
12Source: Asy Maurya, Scaling Lean
Ideation Validation Execution
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 13: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/13.jpg)
Source: Ash Maurya «Running Lean» Workshop, 2015
13fredi@pragmatic-‐solutions.ch15.08.2016
![Page 14: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/14.jpg)
Lean Canvas (by Ash Maurya / adapted from Osterwalder)
14fredi@pragmatic-‐solutions.ch15.08.2016
![Page 15: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/15.jpg)
Persona Development & Segmentation
understand the “whys” by looking at the customers behaviors
15
FactsFactual information about your target customer
PainState the problem you believe your target customers have, that your solutions solves
BehaviorExisting behavior they exhibit now, because they don’t have your solution
GoalsWhat goals are they trying to accomplish with their behavior, that your solution will do better
See also: http://de.slideshare.net/LeanStartupMachinefredi@pragmatic-‐solutions.ch15.08.2016
![Page 16: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/16.jpg)
What and why Early Adopters?
16
2.5% 13.5% 34% 34% 16%
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 17: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/17.jpg)
17fredi@pragmatic-‐solutions.ch15.08.2016 Source: Ash Maurya «Running Lean» Workshop, 2015
![Page 18: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/18.jpg)
Lean Canvas (by Ash Maurya / adapted from Osterwalder)
18fredi@pragmatic-‐solutions.ch15.08.2016
![Page 19: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/19.jpg)
How to uncover problems
5 Why root cause analysisà “Why is this a problem?”
“Job to be done” concept, Clayton Christensen (JTBD)• main job & related Job• Functional & emotional aspects• Personal & social dimension
19fredi@pragmatic-‐solutions.ch15.08.2016
![Page 20: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/20.jpg)
BML Feedback loop
Design experiment
Proposal, Pretotype,, MVP …Results
Analyse results:persevere, pivotor quit?
weeks not years
Assumption/Hypothesis
Run experiment
20Source: Eric Ries «The Lean Startup»
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 21: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/21.jpg)
Types of experiments
4) Early version with minimal feature set that can be “sold” to early adopters
1) Proposal: a document describing the solution
3) Fake demo of any kind
2) Smoke Test: Landing Page to test interest
MVP
Pretotype
21fredi@pragmatic-‐solutions.ch15.08.2016
![Page 22: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/22.jpg)
Validated Learning Experiment Template
Metric: We will know we have succeeded when [quantitative/measurable outcome] or [qualitative/observable outcome]
Janice Fraser
Hypothesis: We believe that [customer type] have a need for [need/action/behavior]
Experiment: The smallest thing we can do to prove that need is [experiment]
22fredi@pragmatic-‐solutions.ch15.08.2016
![Page 23: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/23.jpg)
• Welcome: Set the scene (2min)• Interviewees demographics-‐target customer? (2min)• Describe problem (your hypothesis) (2min)• Customers must rank top three problems (4min)• Listen to their world view (15min)• Wrap up. Sum up feedback to confirm understanding (2min)• Get permission to follow up. Get referrals (2min)
Problem Interview
Ash Maurya
• Document results
23
Goal: Have I identified a problem worth solving?
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 24: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/24.jpg)
24fredi@pragmatic-‐solutions.ch15.08.2016 Source: Ash Maurya «Running Lean» Workshop, 2015
![Page 25: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/25.jpg)
Test your concept early
Don’t be afraid to be “embarrassed” when customers see your “product” for the first time, you will be embarrassed anyway. Eric Ries
25fredi@pragmatic-‐solutions.ch15.08.2016
![Page 26: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/26.jpg)
26
Learning is hard and often frustrating
fredi@pragmatic-‐solutions.ch15.08.2016 Source: Ash Maurya «Running Lean» Workshop, 2015
![Page 27: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/27.jpg)
Lean Canvas (by Ash Maurya / adapted from Osterwalder)
27fredi@pragmatic-‐solutions.ch15.08.2016
![Page 28: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/28.jpg)
Lean Canvas (by Ash Maurya / adapted from Osterwalder)
28fredi@pragmatic-‐solutions.ch15.08.2016
![Page 29: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/29.jpg)
29fredi@pragmatic-‐solutions.ch15.08.2016
Source: Ash Maurya «Running Lean» Workshop, 2015
![Page 30: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/30.jpg)
30fredi@pragmatic-‐solutions.ch15.08.2016
Source: Ash Maurya «Running Lean» Workshop, 2015
![Page 31: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/31.jpg)
Types of experiments
4) Early version with minimal feature set that can be “sold” to early adopters
1) Proposal: a document describing the solution
3) Fake demo of any kind
2) Smoke Test: Landing Page to test interest
MVP
Pretotype
31fredi@pragmatic-‐solutions.ch15.08.2016
![Page 32: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/32.jpg)
Pretotype Example (Explainer Video)
Test vision ofcloud serviceoffering –Dropbox
32
https://www.youtube.com/watch?v=7QmCUDHpNzE
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 33: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/33.jpg)
Solution Interview
Ash Maurya
• Tell a story -‐ frame the product (2min)• Show Concept/UVP, Demo/Pretotype/MVP (15min)
• Wrap up. Sum up feedback to confirm understanding (2min)• Get permission to follow up. Get referrals (2min) • Document results
• Welcome: Set the scene (2min)• Collect demographics – right customer segment? (2min)
33
• Test the pricing (15min)
Goal: Will I build sth. people want at the price they will pay?
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 34: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/34.jpg)
LEARN: Persevere
I am convinced that half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance 34fredi@pragmatic-‐solutions.ch15.08.2016
![Page 35: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/35.jpg)
35
Four sequential experiments
Experiment 1; 10% success
Refine target segment
Experiment 2; 20% success
Refine target segment
Experiment 3; 33% success
Experiment 4; 33% successqual. quant.
Positive Negative
From Sébastien Sacard
# interviews
10% 20% 33%
33%
fredi@pragmatic-‐solutions.ch15.08.2016
![Page 36: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/36.jpg)
LEARN: Persevere
I am convinced that half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance 36fredi@pragmatic-‐solutions.ch15.08.2016
![Page 37: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/37.jpg)
Experiment Report
Why is it relevant?
Quantify your goalsset scope/timebox
Plan how to executeexperiment
Results = Data
Document the learning (validated,invalidated or inconclusive)
Test value and growth hypothesis first
Move to next experiment
37fredi@pragmatic-‐solutions.ch15.08.2016
![Page 38: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/38.jpg)
38fredi@pragmatic-‐solutions.ch15.08.2016
![Page 39: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/39.jpg)
Lean Dash Board (Lean Stack)
Flow
39
![Page 40: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/40.jpg)
Lean Dash Board: Example
Customer Example:Insurance Company
www.pragmatic-‐solutions.ch 4015.08.2016
![Page 41: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/41.jpg)
Problem Solution Fit => ValueProblem Solution FitYou validated with MVP and prospects that a specific solution will solve a know problem to such a degree that customer will buy it.
Brant Cooper
Value assumption – test whether a product or service really delivers value to specific customers once using it.
ScaleProduct Market
fit
Problem Solution
fit
Customer Discovery
Customer Validation
Customer Creation
Is the identified problem real? Will the target customer pay? Can the problem be solved?
41fredi@pragmatic-‐solutions.ch15.08.2016
![Page 42: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/42.jpg)
The growth assumption – test how new customers will discover a product or service. Through what engine will you acquire new customers at affordable cost.
Product Market Fit => GrowthProduct Market FitCustomer is willing to pay. Cost of acquiring new customers is smaller than profit. Evidence that market is large enough
Brant Cooper
ScaleProduct Market
fit
Problem Solution
fit
Customer Discovery
Customer Validation
Customer Creation
42fredi@pragmatic-‐solutions.ch15.08.2016
![Page 43: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/43.jpg)
LEARN: … or pivot
Pivot: A change in strategy without a change in vision
43fredi@pragmatic-‐solutions.ch15.08.2016
![Page 44: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/44.jpg)
Savings Potentials with Lean
• Lean Canvas instead of Business Plan• Identification & priorisation of risks instead oftesting the whole Business Model• Solution interviews instead of Market Research• Pretotype/MVP instead of perfect Product• Speed has biggest impact on profit
44fredi@pragmatic-‐solutions.ch15.08.2016
![Page 45: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/45.jpg)
Hands on books
45fredi@pragmatic-‐solutions.ch15.08.2016
![Page 46: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/46.jpg)
agility accelerates ...
FEEDBACK DOOR
46fredi@pragmatic-‐solutions.ch15.08.2016
![Page 47: How To get to problem / solution fit](https://reader034.vdocuments.net/reader034/viewer/2022042706/5880d0421a28ab9c3a8b5173/html5/thumbnails/47.jpg)
47
Feedback Door1. How likely is it that you would recommend this Presentation to a friend or colleague?
Source: NetPromoter Score
2. What changes would we have to make for you to give us one point more?
……………………………………………………………………………………………………………
fredi@pragmatic-‐solutions.ch15.08.2016