Copyright 2014 COWAN+

Innovate
Like a
Startup COWAN
+
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
ABOUT ME
Entrepreneur (5x)
Intrapreneur (1x)
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
ABOUT ME
Copyright 2014 COWAN+
ABOUT ME
www.alexandercowan.com
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
SCALE-FRIENDLY VS. INNOVATION-FRIENDLY
Scale
Friendly
Innovation
Friendly
$ !?
? !
? ? ?
Copyright 2014 COWAN+
SCALE-FRIENDLY VS. INNOVATION-FRIENDLY
$
!?
? !
? ? ?
#1: Start with the
individual
#2: Anchor to
problems,
not solutions
#3: Become a
better storyteller
#4: Circulate ideas
#5: Test early, test often
#6: Let ideas die
with dignity
#7: Learn rst,
scale second
#8: Get out there a lot
Copyright 2014 COWAN+
1Start with the individual
Copyright 2014 COWAN+
Empathy Creativity
DESIGN THINKING
Copyright 2014 COWAN+
DESIGN THINKING- PERSONAS
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
DESIGN THINKING- PERSONAS
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
NOT A GOOD PERSONA
Women
Age 28-45
Has kids
Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use an
application that organizes them
Copyright 2014 COWAN+
Women
Age 28-45
Has kids
Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use an
application that organizes them
NOT A GOOD PERSONA
Bullet points are almost
never vivid or detailed
Stock photo- not real
This is a huge
population- not exact
These responses are fake
actionable- survey responses
like this are unreliable
Copyright 2014 COWAN+
A BETTER PERSONA
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 its 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 moms on child education and keeping track of what works.
She posts to Facebook at least twice a week and responds to other
moms items more often than that.
She has a few blogs and publications she reads regularly
Mary the Mom
Copyright 2014 COWAN+
A BETTER PERSONA
the use of a rst name helps
w/ vividness (a little)
these full sentences look like a
good start towards something
vivid and detailed
this is a real photo of a
relevant person taken with an
iPhone in the real world
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 its 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 moms on child education and keeping track of what works.
She posts to Facebook at least twice a week and responds to other
moms items more often than that.
She has a few blogs and publications she reads regularly
Mary the Mom
Copyright 2014 COWAN+
DISCOVERY & LEARNING: THINK-SEE-FEEL-DO
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid The persona
should make
anyone who reads
it feel like theyve
actually met this
person.
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid
ALEX COWAN
AlexanderCowan.com
@cowanSF
If the persona
doesnt inform
how you sell stuff
and build stuff,
why bother?
ctionable
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid
ALEX COWAN
AlexanderCowan.com
@cowanSF
eal
Good personas
arent created in
cubicles. Go
where the persona
is and observe.
ctionable
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid
ALEX COWAN
AlexanderCowan.com
@cowanSF
eal
ctionable
Make sure you
can identify and
target these
personas, or you
wont be able to
nd a use for
them.
dentiable
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid
ALEX COWAN
AlexanderCowan.com
@cowanSF
eal
ctionable
dentiable
Everyone is not
your customer.
Make sure the
personas are
distinct so you can
apply relevant
focus.
xact
Copyright 2014 Cowan Publishing
V
A
R
I
E
D
ivid
eal
ctionable
dentiable
xact
etailed
People are
complicated and
so good personas
are usually pretty
substantial.
Copyright 2014 COWAN+
A LITTLE GAME FOR BETTER PERSONA DISCOVERY
Day in the Life
we look at a few photos for a given persona
you make some guesses about them
there are no right answers BUT
there is a right process: observe and infer
OBJECTIVE: get a feel for whats real; start to create something vivid
(not a full picture, just snippets)
Copyright 2014 Cowan Publishing
OUR CAST
Sally the
Single Mom
Copyright 2014 Cowan Publishing
WAKE UP!
Copyright 2014 Cowan Publishing
WAKE UP!
Copyright 2014 Cowan Publishing
GEARING UP FOR THE DAY
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AT WORK
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AFTER WORK
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PRE-BED
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BED
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GEAR
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IF I HAD 3 EXTRA HOURS
Copyright 2014 Cowan Publishing
ABOUT SALLY THE SINGLE MOM
How many credit cards does she have?
What is her credit card balance right now?
How did she nance her car?
How is she saving for retirement?
How does she do her taxes?
How does she budget and manage her
spending?
Copyright 2014 COWAN+
2Anchor to Problems, Not Solutions
Copyright 2014 COWAN+
NEEDFINDING
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
X
PROBLEM SCENARIO
NEEDFINDING
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
X
What job(s) are you doing for
the customer?
What existing need or
behavior are you fullling?
PROBLEM SCENARIO
NEEDFINDING
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
?
X
ALTERNATIVE(S)
PROBLEM SCENARIO
NEEDFINDING
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
?
X
If they currently use
spreadsheets, watch them
use it and get a copy of it.
If they currently put notes on the
family fridge, ask about it,
photograph it.
ALTERNATIVE(S)
PROBLEM SCENARIO
NEEDFINDING
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
YOUR VALUE PROPOSITIONS
!
ALTERNATIVE(S)
?
PROBLEM SCENARIO
X
NEEDFINDING
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
X
Are they better enough than the
alternative(s)?
!
?
YOUR VALUE PROPOSITIONS
ALTERNATIVE(S)
PROBLEM SCENARIO
NEEDFINDING
Copyright 2014 COWAN+
and they have a certain
PROBLEMS(S)
where theyre currently using
certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITION thats better enough
than the alternatives to cause the
persona to act (purchase, use, etc.).
A certain PERSONA exists
NEEDFINDING: THE PRODUCT HYPOTHESIS
!
?
X
Copyright 2014 COWAN+
3
Become a Better Storyteller
Copyright 2014 COWAN+
STORYBOARDING: ORIGINS
copyright Fred Moore & Disney Pictures
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
Personas
STORYBOARDING EXAMPLE
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 COWAN+
Personas
STORYBOARDING EXAMPLE
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing
ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS
Copyright 2014 Cowan Publishing
X
Helen the HR Manager
Its hard for me to screen on
technical skill sets and I end up
sending Frank unqualied
recruits.
Frank the Functional Manager
I have limited time and I dont
want to be a jerk. Its hard to
screen for all the relevant
technical skill sets.
PERSONA
PROBLEM
SCENARIO
- Call references
- Take their word for it
- A few probing questions
- Take their word for it
?
ALTERNATIVE(S)
!
VALUE
PROPOSITIONS
New ability for meaningful
screening of technical
candidates, increasing % of
successful hires and lowering
Franks workload on recruiting.
Less time doing interviews, and
better hires sooner.
Copyright 2014 COWAN+
STORYBOARDING A PROBLEM SCENARIO
AFTER
BEFORE
BEFORE
(using the
Alternative)
AFTER
(with the Value
Proposition)
Copyright 2014 COWAN+
SKETCHING YOUR NARRATIVE
source: adapted from Nir Eyals Hook Framework
How does the problem
scenario initiate?
How is the alternative
executed?
How is the persona
gratied?
REWARD ACTION TRIGGER
Copyright 2014 COWAN+
4Circulate Ideas
Copyright 2014 COWAN+
ALEX COWAN
AlexanderCowan.com
@cowanSF
WHY IS CIRCULATING IDEAS HARD?
Design Thinking
Now
Survival
Then
Copyright 2014 COWAN+
5
Test Early, Test Often
Copyright 2014 COWAN+
EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
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
Copyright 2014 COWAN+
and they have a certain
PROBLEMS(S)
where theyre currently using
certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITION thats better enough
than the alternatives to cause the
persona to act (purchase, use, etc.).
A certain PERSONA exists
AND NOW THE PRODUCT HYPOTHESIS
!
?
X
Copyright 2014 COWAN+
and they have a certain
PROBLEMS(S)
where theyre currently using
certain ALTERNATIVE(S)
and I have a VALUE
PROPOSITION thats better enough
than the alternatives to cause the
persona to act (purchase, use, etc.).
A certain PERSONA exists
AND NOW THE PRODUCT HYPOTHESIS
PERSONA
HYPOTHESIS
PROBLEM
HYPOTHESIS
VALUE
HYPOTHESIS
Copyright 2014 COWAN+
EVIDENCE-BASED INNOVATION VIA LEAN STARTUP
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 denitely 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 2014 COWAN+
CASE STUDY: RAPID EQUIPPING FORCE (REF)
OPPORTUNITY
Post traumatic stress disorder (PTSD)
creating extremely serious mental and
physical health issues for service
personnel and veterans.
CHALLENGE
Despite substantial spending, current
approaches to diagnosis and treatment
under-delivering.
Copyright 2014 COWAN+
CASE STUDY: RAPID EQUIPPING FORCE
Persona
Problem
Scenario
Alternatives
Value Prop.
Salem the Solider- receives relatively good treatment for acute injuries but concussive injuries that are
not immediately debilitating often go undiagnosed and/or untreated or under-treated.
The brain is a complex instrument- you cant just patch it up. Concussions that are not immediately
debilitating can still lead to serious conditions.
Its part of the culture to ignore or minimize injuries that dont immediately put you out of commission.
The most common alternative is after-the-fact treatment within the Veterans Administration hospitals
where very little history is available.
Just about anything that would improve outcomes would improve many lives.
Copyright 2014 COWAN+
CASE STUDY: RAPID EQUIPPING FORCE
REF head Peter
Newell got a tip to
look at what
NASCAR was
doing to measure,
diagnose, and
treat concussive
injuries.
source: NASCAR
Copyright 2014 COWAN+
CASE STUDY: RAPID EQUIPPING FORCE
Working with R&D partners, REF
developed a prototype system for
soldiers to use on the front lines.
Soldier System Characteristics

Pressure Sensors (4): 100 psi max at ~50kHz sample rate
3 Axis Accelerometer (Body and Head): 1250 G max at ~50 kHz
sample rate
3 Axis Gyro (Head): 2000 dps max gyro at 1-2 KHz sample rate
GPS: Time stamping of event data
Wireless Communication to the
Vehicle Sensor System
VIA RFID - Uniquely identifies soldier
position when in a vehicle
Battery Power Self contained (2 each CR-123A)
Prototype Vehicles
MATV
Vehicle System Characteristics
ATEC Data Recorder
Ethernet, CAN, Power, GPS,
and Removable Storage Media
Data Event Recorders
3 and 6 axis units to 6,000 Gs
Various Interface Adapter (VIA)
Soldier position location in vehicle
Provide uplink to vehicle for
Soldier System
Single Board Computer to interface
system to ATEC Recorder
Vehicle System Characteristics
MaxxPro Dash source: adapted from Innovation Leadership Board and REF
Copyright 2014 COWAN+
MVP ARCHETYPES
The Concierge MVP:
manually provide the product experience you
want the customer to have
The Pre-Sales MVP:
hand sold and/or promoted online
The Focal Product:
minimal implementation focused only on
features required for core value proposition
Copyright 2014 COWAN+
6Learn First, Scale Second
Copyright 2014 COWAN+
OLD SCHOOL VS. NEW SCHOOL
Output vs. Outcome
Scaling vs. Learning
Copyright 2014 COWAN+
WHERE ARE YOU NOW?
MVP
Nascent
Product-Market
Fit(?)
Scale
PIVOTAL
ASSUMPTIONS
PRODUCT
ORG.
PARTNERS,
CHANNELS
Founders
N/A
Probably too
soon
Test, revise,
test...
MVP
Customer dev.
team
Probably too
soon
Validated- now
tactical
Focus: efciency,
extension
Full functional
organization
Yeah, maybe?
Validated- now
tactical
What would a
startup do??
Scalable
organization
Yeah, denitely!
Copyright 2014 COWAN+
PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
EXPENSE
FLEXIBILITY
wireframe
working design
prototype
working product
with a few users
with lots of users
idea
DRAFT &
EXPERIMENT
A LOT
Copyright 2014 COWAN+
PLAY TO YOUR ADVANTAGE AT THE EARLY PHASES
EXPENSE
FLEXIBILITY
wireframe
working design
prototype
working product
with a few users
with lots of users
idea
play to your
strengths as as
startup/new product
in this zone
Copyright 2014 Cowan Publishing
AGILE & THE BEAUTY OF SMALL BATCHES
Copyright 2014 COWAN+
7Kill Zombie Ideas
Copyright 2014 Cowan Publishing
SOME ZOMBIE IDEA TYPES
THE R&D ZOMBIE
Also known as the solution
looking for a problem zombie.
1 x TIME
THE CUSTOMER
SAID ZOMBIE
Customers say they love it-
but are they actually buying?
THE TOP DOWN
ZOMBIE
We told the street were doing
it, so now
THE CRUMBLING
ZOMBIE
So much time, so much money
theres gotta be something here.
Copyright 2014 COWAN+
8Get out there a lot
Copyright 2014 COWAN+
X
PROBLEM
SCENARIOS &
ALTERNATIVES
What?
PRODUCT &
PROMOTION
/
CUSTOMER
DISCOVERY &
EXPERIMENTS
Tell me?
VENTURE DESIGN
PERSONAS
Who?
USER
STORIES &
PROTOTYPES
How?
Scale?
Pivot?
VALUE
PROPOSITIONS
& ASSUMPTIONS
What if?
!
Copyright 2014 COWAN+
acowan@alexandercowan.com
@cowanSF
www.alexandercowan.com/venture-design
Slides: bit.ly/innostart
www.alexandercowan.com/startup-sprints
FINI