how to think like a startup in a corporate environment
TRANSCRIPT
Incumbents with well established value chains are
slowly seeing…
Source: http://www.fedex.com/us/ship/
…very aspect of it being chipped away
Source: https://www.cbinsights.com/blog/startups-disrupting-fedex-ups/
“How can you think like a startup? And how can you become more
entrepreneurial and challenge those assumptions?” Clayton
Christensen
AssociatingAssociating
NetworkingNetworking
QuestioningQuestioningObservingObservingExperimentingExperimenting
Innovation’s DNAInnovation’s DNA
“How can you think like a startup? And how can you become more
entrepreneurial and challenge those assumptions?” Clayton
Christensen
Core message:startups...
think differently about the problemthey challenge assumptions and possess clear skills we all have
1. Determine your target customers (i.e. aim for extreme 5/8)
2. Identify underserved customer needs
3. Define your value proposition to address those needs
4. Specify your MVP "feature set" (the riskiest assumption)
5. Create your MVP (i.e. mockup/ smoke page/ prototype)
6. Create MVP7. Rapid feedback (Test) the MVP
with customers (i.e. extreme)
Cheat sheet
CustomerHave
Use
Addre
ss
Frame the problem correctly
Get feedback fromright customers
Validate the solution and ensure problem/customer fit
Value production(idea/
solution)
Problem
Justguesses
Assumptions
ProjectBrief
StrategyDevelopment
StrategySummary
IdeaDevelopment
ConnectionsArchitecture
ImpBrief
ConnectionsPlan &
ExecutionImplementation Tracking &
CultivationLearningSummary
Liquid & Linked IdeaBriefSearch & Re-apply
GrowthPotentialsBrand PlanIMC ProjectBrief
Post Program Analysis & AgencyEvaluation
Cultivate & Curate
Liquid ideaEvidence of Liquidity Creative GuidelinesConnections Architecture
SpecialistContent BriefsContent & ConnectionsPackage
Content & Local Connections PlanDeployed
Strategy Idea Creation Development Implementation Production Implementation Execution
BusinessOpportunity G1 G2 G3 G4G0
Wks b4 launch17 0 -1335 33 28 2438 23
Typical Coke Communications process
1. Do people want to a coffee or take a break from work?
Define your problem…
2. Do people buy an aspirin or seek remove a headache?
3. Do people go to the gym to get fit or they want to put themselves in a situation to meet new people?
4. Do people want a pen or have the ability to communicate?
Intentions vs. motivations
1.Why is this a problem? Go through it step by step, draw out the processes?
1.Can the problem be described in a completely different way?
2.Who is the a problem for? (Go and ask them)
4. Who are the other stakeholders? How does each stakeholder view the problem(Go and ask them)
5. How do the stakeholders currently solve the problem? why did these fail?
6. What are the symptoms of the problem? What causes the problem to occur?
Define your problem…
1.Why is this a problem? Go through it step by step, draw out the processes?
1.Can the problem be described in a completely different way?
2.Who is the a problem for? (Go and ask them)
4. Who are the other stakeholders? How does each stakeholder view the problem(Go and ask them)
5. How do the stakeholders currently solve the problem? why did these fail?
6. What are the symptoms of the problem? What causes the problem to occur?
Define your problem…
WORKOUT TIME:
15 MINS
Consolidate into 1 “team” idea
•1mins each person to pitch group
•5mins to decide and create new canvas “A”
(Colonel has final decision)
10:05am
How do we turn guesses into fact quickly & cheaply and validated our
learning?
37Classified – Confidential | Page 37
An iterative approach that advises creating small
products (ie MVP) that test assumptions and using customer feedback
- Eric Ries
39
Classified – Confidential | Page 39
45
2. Identify the riskiest parts
3. Systematically test it. “Get out of the building”
Classified – Confidential | Page 45
1.Document your idea
Step 5
Test assumptions
10 mins
Step 4
Design the experiment
10 mins
Step 3
Select top 3 assumptions
10 mins
Step 2
Prioritizing assumptions
10 mins
Step 1
Identifying assumptions
20 mins
and these are the tools will we be using…
Classified – Confidential | Page 48
Problem Solutioncanvas
Value Propositioncanvas
Experiment Card
Page 49
Two areas to look that make or break your idea
Product Solution CanvasProvides an overview of your ideaFIT
…but need a way to unpack assumptions a way to give us more “granularity” in identifying assumptions
Identifying assumptions
Value Proposition Canvas
Page 50
What is a Value Proposition?
A Value Proposition is a bundle of products & services that create value for your customer
Page 51
Finding Product Market Fit is when your assumptions are validated and you know what
your designing and for who
FIT ProblemSolution
Product Market
ObserveDesign
CustomerValue proposition FI
T
The best results come from testing no more than 8 users and running as many small tests as you can afford.
Elaborate tests are a waste of resources
Source: http://www.nngroup.com/articles/why-you-only-need-to-test-with-5-users/
Extreme usersIts about learning from “one” to
apply to the “rest”
Crossing the Chasm by Geoffrey Moore
What can we learn from this “Extreme” group
to…
…inform our thinking for mass
What “tasks” is your customer doing/to be
done? Think back to your customer journeys – what emotional or social needs arise (e.g. status, safety)
What gains can be made? More choice, save time,
more money, reduce learning curve, social
power…)
What gains from are you providing (i.e. delight
experience, its faster, its smarter etc.)
Which feature of your solution
will help withcustomer “tasks”?
Describe your product/service feature
sets…
How are you relieving pain?(e.g. provide
time/cost saving, make life easier, increase status,
better quality)
What are the key pain points? (e.g. barriers, concerns, cost, time,
frustrations, loss of face…)
Value Proposition Canvas Explained
Classified – Confidential | Page 56
Source: http://www.slideshare.net/adrianholzer37/value-proposition-design
Value Proposition Canvas example
Page 57
CustomerHave
Use
Addre
ss
Staying motivated and keeping track of training goals can be difficult
Committed Female Runners • Real time “ongoing” access experts• Convenient, personalised “bite size’
advice through unlimited questions• Verified personal trainers
NudgeFX
Problem
Value Proposition Canvas:
Define
fitness
goal
Identify
training
program
High cost of
personal
trainer
Stay motivated
Outsource
self discipline
Cheaper
than physical
personal
trainer
Pick the
right personal
trainer
Get healthier
Find personal
trainer
Help prevent
injuries
Validated
choice of
personal
trainer
Mobile platform
that provides
access to real
experts in real
time
Idea: NudgeFX Customer: Committed Female Runners
Convenien
tpersonalis
e “bite
size’ advice
Classified – Confidential | Page 60
Value Proposition Canvas:
Define
fitness
goal
Identify
training
program
High cost of
personal
trainer
Stay motivated
& reach
goals
Outsource
self discipline
Cheaper
than physical
personal
trainer
Pick the
right personal
trainer
Get healthier
Find personal
trainer
Help prevent
injuries
Validated
choice of
personal
trainer
Mobile platform
that provides
access to real
experts in real
time
Idea: NudgeFX Customer: Committed Female Runners
Convenien
tpersonalis
e “bite
size’ advice
Critical
Nice to have
Classified – Confidential | Page 64
High cost of
personal
trainer
Stay motivated &
reach goals
Mobile Platform
that provides to
access real experts
in real time
Assumption Test with…experiment/
MVP
..on customer Validated if..
Mobile Platform that provides access to real experts in real time
Stay motivated & reach goals
High cost of personal trainer
Now lets move the top 3 assumptions and design our validation method
Classified – Confidential | Page 68
Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners
Classified – Confidential | Page 72
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Stay motivated & reach goals
High cost of personal trainer
Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners
Classified – Confidential | Page 73
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Smoke Test site explains the value proposition
Staff wanting to get fit
Stay motivated & reach goals
High cost of personal trainer
Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners
Classified – Confidential | Page 74
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Smoke Test site explains the value proposition
Staff wanting to get fit
1. At least 8 people of 15 emailed register (Quantitative)
2. Positive facial expressions, gut reactions, and body language (Qualitative)
Stay motivated & reach goals
High cost of personal trainer
✓
Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners
Classified – Confidential | Page 75
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Smoke Test site explains the value proposition
Staff wanting to get fit
1. At least 8 people of 15 emailed register (Quantitative)
2. Positive facial expressions, gut reactions, and body language (Qualitative)
Stay motivated & reach goals
WhatsApp app + real personal trainer
People training for Sydney ½ marathon
1. At least 5 of 8 stay and completed there training goals (Quantitative)
2. Received unsolicited positive feedback (Qualitative)
High cost of personal trainer
✓✓
Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners
Classified – Confidential | Page 76
✓✓✓
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Smoke Test site explains the value proposition
Staff wanting to get fit
1. At least 8 people of 15 emailed register (Quantitative)
2. Positive facial expressions, gut reactions, and body language (Qualitative)
Stay motivated & reach goals
WhatsApp app + real personal trainer
People training for Sydney ½ marathon
1. At least 5 of 8 stay and completed there training goals (Quantitative)
2. Received unsolicited positive feedback (Qualitative)
High cost of personal trainer
Sign up site with $39 per month subscription
Sydney Harbour Runners
1. At least 10 of 20 register for app and program (Quantitative)
2. Received positive feedback (Qualitative)
Minimal Viable Product/Offer/Proposition…
is the most important “feature set” (assumptions) of your value proposition you can
do/make to address most important pain point of your segment that you can learning from
We use MVP to help test and validate our assumptions
Classified – Confidential | Page 77
11:40am
How do you pick the right MVP?
What do you need to do arrive to validated learning?
Classified – Confidential | Page 78
Best method to validate assumptions using your MVPProblem Solution ImplementationsMethod
Contextual enquires
Sketch
Smoke test/Landing page
Mockups/Wireframe
Concierge
Prototype
Wizard of Oz
✓ ✓✓
✓
✓ ✓
✓
✓
✓
A/B “split” Testing ✓
✓
✓
Explorative to affirmative
Classified – Confidential | Page 85
Source: http://www.slideshare.net/usersnap/a-best-of-100-marketing-experiments-at-usersnap-startup-marketing-gettogether-5-vienna
Sign up first customer by describing benefits of service plus subscription fee
Provide recipe service personally (concierge it!)
Learn customer needs in detail and automated later what worked and need.
So back to our NudgeFX idea and validating our top 3 assumptions
Classified – Confidential | Page 109
Idea
Problem Solutioncanvas
Value Propositioncanvas
Experiment Card
11:50am
Assumption Test with…experiment/
MVP
..on customer
Validated if… (and why?)
Mobile Platform that provides access to real experts in real time
Smoke Test site explains the value proposition
Staff wanting to get fit
1. At least 8 people of 15 emailed register (Quantitative)
2. Positive facial expressions, gut reactions, and body language (Qualitative)
Stay motivated & reach goals
WhatsApp app + real personal trainer
People training for Sydney ½ marathon
1. At least 5 of 8 stay and completed there training goals (Quantitative)
2. Received unsolicited positive feedback (Qualitative)
High cost of personal trainer
Sign up site with $39 per month subscription
Sydney Harbour Runners
1. At least 10 of 20 register for app and program (Quantitative)
2. Received positive feedback (Qualitative)
These are the experiments and MVP we will be using…
Validated Learning
Classified – Confidential | Page 110
PivotOr
Preserve
Did you find your MUST HAVE solution?
Did you find your EARLY ADOPTERS?
What new INSIGHT you learnt?
$25 domain + $140 webhosting = $165(via strikingly.com) created in 45mins
Riskiest assumption: Mobile platform that provides access to real experts in real time
Experiment/MVP:
Site explains the value proposition
Customer:
Staff wanting to get fit
Assumption:
Mobile platform that provides
to access real experts in real
time
Page 112
Experiment #1
$0 WhatsApp + $2,200 personal trainer = $2,200
(via WhatsApp) created in 2mins, ran for 6 weeks
Riskiest assumption: Stay motivated & reach goals
Experiment/MVP:
WhatsApp app + real personal
trainer
Customer:
People training for Sydney ½
marathon
Assumption:
Stay motivated & reach goals
Page 113
Experiment #2
Riskiest assumption: High cost of personal trainer
Page 114
Assumption:
High cost of personal trainer
Experiment/MVP
Sign up site with $39 per month
subscription
Customer
Sydney Harbour Runners
Experiment #3
$100 Website + $2,650 mockup app + $2,200 p/t = $4,950 Created in 60mins, running over 6 weeks
Best method to validate assumptions using your MVPProblem Solution ImplementationsMethod
Contextual enquires
Sketch
Smoke test/Landing page
Mockups/Wireframe
Concierge
Prototype
Wizard of Oz
✓ ✓✓
✓
✓ ✓
✓
✓
✓
A/B “split” Testing ✓
✓
✓
Explorative to affirmative
Classified – Confidential | Page 117
Napkin pitch – example…
1. Introduce the idea 20 seconds
2. What's top 3 assumptions & how you tested it? 60 seconds
1. What you have learnt?100 seconds
Total 180 seconds = 3 minutes
Pitch (3 ideas x 3 mins)
Total = 10 mins
Classified – Confidential | Page 123
12:20pm
Let the games begin!
http://www.online-stopwatch.com/eggtimer-countdown/full-screen/
Classified – Confidential | Page 124
Reading options
URL: http://hbr.org/2013/05/why-the-lean-start-up-changes-everything/ar/pr
Classified – Confidential | Page 125
CustomerHave
Use
Addre
ss
Your name: ____________
__________(Idea name)
Problem
PRO
BLEM
SO
LUTI
ON
CAN
VAS
TEM
PLAT
E
What is the problem you are trying to solve?
Why it is important? Be specific and concise
Who has this problem?
Be specific and concise
What is your idea? What are the critical value
proposition features?Be specific and concise
Prepare by Red Garage Ventures – commercial in confidence
CustomerHave
Use
Addre
ss
Your name: ____________
Value production(idea/
solution)
Problem
PRO
BLEM
SO
LUTI
ON
CAN
VAS
CHEA
TSHE
ETWhat is the problem you are trying to solve? Why it is important?
Write it here. Be specific and concise
Who has this problem? Who is the early adopter or “extreme user”
Write it here. Be specific and concise
What is your idea? What are the critical value proposition features?
Write it here. Be specific and concise
Prepare by Red Garage Ventures – commercial in confidence
Visit the “Smoke test” website http://nudgefxme.strikingly.com/What is the problem you trying to solve? Why it is
important? Be specific and concise
Who has this problem? Be specific and concise
What is your idea? What your critical value proposition
featuresBe specific and concise
Your name: Franki
PRO
BLEM
SO
LUTI
ON
CAN
VAS
EXAM
PLEExample
Prepare by Red Garage Ventures – commercial in confidence
CustomerHave
Use
Addre
ss
Your name: ____________
__________(Idea name)
Problem
What is the problem you are trying to solve?
Why it is important? Be specific and concise
Who has this problem?
Be specific and concise
What is your idea? What are the critical value
proposition features?Be specific and concise
Prepare by Red Garage Ventures – commercial in confidence
A