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Prep. Workshop: !
Crash Course in 

Venture Design!

Copyright 2014 Cowan Publishing
ABOUT ME

!

ENTREPRENEUR (5X)
!

INTRAPRENEUR (1X)

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
ABOUT ME

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
ABOUT ME

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
AGENDA
Period!

Activities

Deliverables!

CRASH COURSE
IN VENTURE
DESIGN

Tutorials!
Examples!
Exercises

First take on:!
Personas!
Problem Scenarios-Alternatives-Value Propositions!
Start Business Model Canvas!
Venture Hypotheses!
Storyboards!
MVP Ideas!
Customer Discovery Ideas!

!

Copyright 2014 Cowan Publishing
IT’S A PROCESS

Some techniques are more effective than others.
Personas
But they all require substantial, consistent exertion.
Copyright 2014 Cowan Publishing
VENTURE DESIGN

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
VENTURE DESIGN

Hypothesize

Learn

Lean StartupStyle Assumptions

Experiment

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
VENTURE DESIGN

Hypothesize

Lean StartupStyle Assumptions
Business Model
Canvas

Learn

Experiment

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
VENTURE DESIGN

Hypothesize

Lean StartupStyle Assumptions
Business Model
Canvas

Learn

Experiment

User Stories &
Test Cases

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
VENTURE DESIGN

Hypothesize

Lean StartupStyle Assumptions
Business Model
Canvas

Learn

Experiment

User Stories &
Test Cases
Product &
Promotion

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
DESIGN THINKING

Empathy

Creativity
Copyright 2014 Cowan Publishing
DESIGN THINKING- APPLICATIONS

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- APPLICATIONS
1

2

Urinate as they go

3

Edges preferred

4

Speedy

5

Empathy

Entry

PB > cheese
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- APPLICATIONS
Check & Repair

1

UV Validation

2

Relevant Placement

3

A Better Mouse Trap

4

Powered by Better Bait

5

Creativity

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS

Personas

Problem Scenarios
Alternatives
Your Value Propositions

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
•Women!
•Age 28-45!
•Have kids!
•Socialize with other mom’s!
•Online with Facebook!
•86% said they’d like to be more

organized!
•70% said they’d use an application
that organizes them
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS

Copyright 2014 Cowan Publishing
END USER PERSONAS
Rita 

the Reseller

Rhonda 

the Receptionist

Amy 

the Assistant

Esteban 

the Executive

Orson 

the Office Mgr.

Susan the 

Small Bus. Owner

Simone 

the Standard User

Mikuko 

the Mobile User

Ignatius 

the IT Guy

Keith 

the Key System User

Chuck 

the Call Center Agent

Cindy 

the Call Center Manager

Copyright 2014 Cowan Publishing
ENTERPRISE PERSONAS
Bruce 

the Business Owner

Sidney 

the Sys. Admin.

Anthony 

the Applications Eng.

Sam 

the Support Eng.

Paola 

the Provisioner

Percival the 

Product Manager

Itzhak 

the IT Developer

Saul 

the Site Developer

Nietzsche 

the Network Eng.

Sven 

the Salesperson

Frank 

the Field Eng.

Fritz 

the Field Eng. Manager

Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

What job(s) are you doing for the
customer?
What existing need or behavior
are you fulfilling?
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

ALTERNATIVE(S)

?
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

ALTERNATIVE(S)

?

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.

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

ALTERNATIVE(S)

?

YOUR VALUE PROPOSITIONS

!

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
YOUR PRODUCT HYPOTHESIS
A certain PERSONA exists…
… and they have a certain
PROBLEMS(S) …

X

… where they’re currently using
certain ALTERNATIVE(S) …

?

… and I have a VALUE
PROPOSITION that’s better
enough than the alternatives to
cause the persona to act
(purchase, use, etc.).

!

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS
PERSONA

Helen the HR Manager

Frank the Functional Manager

“It’s hard for me to screen on
technical skill sets and I end up
sending Frank unqualified
recruits.”

“I have limited time and I don’t
want to be a jerk. It’s hard to
screen for all the relevant
technical skill sets.”

ALTERNATIVE(S)

- Call references!
- Take their word for it

- A few probing questions!
- Take their word for it

VALUE

PROPOSITIONS

New ability for meaningful
screening of technical
candidates, increasing % of
successful hires and lowering
Frank’s workload on recruiting.

Less time doing interviews, and
better hires sooner.

X

PROBLEM

SCENARIO

?
!

Copyright 2014 Cowan Publishing
STORYBOARDING A PROBLEM SCENARIO
BEFORE

Problem
Scenario 

+!
Alternative
AFTER

Problem
Scenario 

+!
Value
Proposition
Copyright 2014 Cowan Publishing
EXERCISE- PERSONA CREATION
1. List at least 3 personas (4 min)
Mary the Working Mom
Susan the Stay-at-Home Mom
Douglas the Dad
Nathan the Nanny
…

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
EXERCISE- PERSONA CREATION
1. Which are buyers? Users? Both? Note with a ‘B’ and/or ‘U’ on
the Post-It
2. Which have the most compelling need, desire? Sort top to
bottom
(4 min.)

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
EXERCISE- VALUE PROPOSITIONS

X

1. Brainstorm Problem
Scenario-Alternative-Value
PROBLEM SCENARIO Proposition Trios. 

(7 min.)

?

ALTERNATIVE(S)

!

YOUR VALUE
PROPOSITIONS

Problem: Mary would like to be more
structured and consistent in her use of
allowances to teach the link between work
and financial rewards.
Alternative: Track the completion of chores,
homework, etc. manually using paper, boards,
notes on her phone.
Value Proposition: Use our app to easily and
consistently implement best practices tailored
to your situation.
Copyright 2014 Cowan Publishing
EXERCISE- VALUE PROPOSITIONS
1. Prioritize your value propositions- if you could only pitch one,
which? After that? Etc.
(2 min.)

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
PEER PRESENTATIONS PREP!
For [target customer] who [statement of the need
or opportunity], the [product name] is a [product
category] that [statement of key benefit/key
reason to buy]. unlike [primary alternative], our
product [statement of primary differentiation].
Describe your venture
accordingly (5 min.)
Copyright 2014 Cowan Publishing
EXERCISE: PEER PRESENTATION (2 MIN/EACH)

As
Presenter

1) Who is the persona? What kind of shoes
do they wear?!
2) What problem scenario(s) are you
looking at? What alternatives does the
persona use now?!
3) What’s your value proposition?!

As
Audience

- Focus on the process; avoid editorial!
- Ask a lot of questions!
- Think about it like an investor

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
THE BUSINESS MODEL CANVAS
(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer
Propositions) Relationships)

(Customer
Segments)

(Channels)

(Revenue Streams)

The templates here are made available on the same CC license terms as the original canvas.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
SEGMENT TO VALUE PROPOSITION MAPPING
Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3

The templates here are made available on the same CC license terms as the original canvas.

Segment_1
Segment_2
Segment_3

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
EXERCISE- MAPPING PERSONAS, VALUE PROP’S
1. Print out the Canvas !
2. List your prioritized personas
(Customer Segments) and
Value Propositions!
3. Map your personas to your
Value Propositions !
(3 min)

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

The templates here are made available on the same CC license terms as the original canvas.

Persona_1
Persona_2
Persona_3

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Copyright 2014 Cowan Publishing
DESIGN THINKING- USING PERSONAS

MAKING

STUFF


What does the
user (most) want?

What does the
user actually do?

SELLING

STUFF


Who are we
selling to?!

!

!

Where do we
reach them?!
With what
proposition?

Personas

Who’s buying?!

Problem Scenarios
Alternatives
Your Value Propositions

!




Where?!

!



Why?
Foundation in
Design Thinking
Copyright 2014 Cowan Publishing
PERSONAS- DISCOVERY & VALIDATION
Interviews
AdWords, etc. + Landing
Page Tests

What language, propositions resonate? !
What is the customer prepared to do?

Real-Time Analytics
& Recording

MVP

Tell me about yourself.!
What do you do? How often?!
How does it make you feel?

What do users actually do?

Minimum Viable
Product

Do customers like it? Buy it? Use it? 

Tell others about it?
Copyright 2014 Cowan Publishing
VENTURE DESIGN

Hypothesize

Learn

Lean StartupStyle Assumptions

Experiment

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing
PLANNING

Now

Then

Lean 

Startup

Five Year
Plan

01 IDEA!
45,000,000%
40,000,000%

02 HYPOTHESIS

35,000,000%
30,000,000%
25,000,000%

Revenue%
Expense%

20,000,000%

EBITDA%

15,000,000%

6.a PIVOT
experiments
03 EXPERIMENTAL DESIGN
disprove
hypothesis
04 EXPERIMENTATION

10,000,000%
5,000,000%
0%
!5,000,000%

2012%

2013%

2014%

2015%

2016%

2017%

2018%

2019%

2020%

05 PIVOT OR PERSEVERE?

6.b PERSEVERE

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
PLANNING WITH LEAN STARTUP
Do I have real evidence from my buyer that
this is compelling?
What are the key assumptions required to
make this business work?
How do I definitely prove or disprove
the assumptions with a minimum of
time and effort?
Am I reacting or am I focused on
validating my pivotal assumptions?

01 IDEA!

02 HYPOTHESIS

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

‘Pivot or persevere?’

Copyright 2014 Cowan Publishing
ASSUMPTIONS & LEAN STARTUP
Priority

Key Assumption

Needs Proving?

1

[A key assumption about
the business]

1

Parents want to organize
the distribution of
Yes
allowances with an app

* Post the proposition in ads

online!
* Measure sign-up’s on a landing
page


2

Parents want to link
allowances to chores

Yes

* Show prototypes with choices

* Test in beta

2

Parents have smart
phones

No

n/a

[Whether it needs
proving!

Experimentation
[Experiment to !
prove or disprove]

Focus on strategic,
pivotal assumptions


ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
PLANNING WITH THE LEAN STARTUP

Crossing t’s

Dotting i’s

Doesn’t matter unless it helps
prove (or disprove) your
pivotal assumptions


ALEX COWAN!
AlexanderCowan.com!
@cowanSF

Copyright 2014 Cowan Publishing
PLANNING WITH THE LEAN STARTUP

Subject 

all your
activities +
metrics to
that litmus
test.


ALEX COWAN!
AlexanderCowan.com!
@cowanSF

Copyright 2014 Cowan Publishing
THE REVELATION OF CUSTOMER DEVELOPMENT
You know you’re here
and should be doing
this, but. . .

MVP

. . . most people
mimic mature
business patterns and
start here.

Product-Market 

Fit

Scale

PIVOTAL

ASSUMPTIONS
 Nascent


Test, revise,
test...


Validated- now
tactical


Validated- now
tactical


PRODUCT


N/A


MVP


Focus: efficiency,
extension


What would a
startup do??


ORG.


Founders


PARTNERS,

CHANNELS


Customer dev.
team


Full functional
organization


Scalable
organization


Probably too
soon


Probably too
soon


Yeah, maybe?


Yeah, definitely!

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
DESIGN THINKING- PERSONAS
PROBLEM SCENARIO

X

ALTERNATIVE(S)

?

YOUR VALUE PROPOSITIONS

!

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
YOUR PRODUCT HYPOTHESIS
A certain PERSONA exists…
… and they have a certain
PROBLEMS(S) …

X

… where they’re currently using
certain ALTERNATIVE(S) …

?

… and I have a VALUE
PROPOSITION that’s better
enough than the alternatives to
cause the persona to act
(purchase, use, etc.).

!

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
LEONID MVP #1: CONSULTING

It pays
CONSULTING

It’s easy to scale
Consultants naturally do customer discovery

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
LEONID MVP #2: PRODUCTIZED CONSULTING
Customer empathymore scope, detail on
problem scenarios

It’s easier to sell
CONSULTING

‘PRODUCTIZED’
CONSULTING

It’s easier to staff
It’s easier to manage

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
LEONID MVP #3: SOFTWARE PRODUCTS
Customer empathymore scope, detail on
problem scenarios

CONSULTING

Validated problem
scenarios with
substantial detail

‘PRODUCTIZED’
CONSULTING

PRODUCTS

Copyright 2014 Cowan Publishing
LEONID MVP #3: SOFTWARE PRODUCTS

Validated problem scenarios
Existing customer relationships

PRODUCTS

Ability to pre-sell

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
USER JOURNEY: PHOTO-SOCIAL

ASSUMPTION

User’s social network
will like and share the
app’s output

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
PHOTO-SOCIAL MVP

MVP

Create the target
output by hand. !

!

Does anyone care?

ASSUMPTION

User’s social network
will like and share the
app’s output

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
ENABLE QUIZ: PROBLEM SCENARIO
BEFORE

AFTER

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
CONCIERGE MVP: ENABLE QUIZ

Concierge MVP?
Sure: Hand craft quizzes on
paper on off-the-shelf tool.

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
MVP: Zappos
Some shoe buyers are dissatisfied with
mall retail and would purchase online.
Photograph some shoes and create
a site to showcase them for sale.

source: CNN article ‘Zappos’ silent founder’

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
MVP: Paul Howe & Associates
Some people would like to know how
much their stuff is worth.
Do it for them buy hand.

source: as told to Lean Startup Circle, SF (Jan 2013)

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
MVP: Sprig
Urbanites would like Uber-style,
healthy, hot, meals delivered in 20
minutes.
Put it on Eventbrite, email people,
see what happens.

source: as told to Lean Startup Circle, SF (Jan 2014)

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
MVP: Dropbox
Users would sign-up and pay for a file
exchange service that actually worked
well.
Create a ‘Wizard of Oz’ demo tailored
for early market (techies) and
measure sign-up’s.
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
IN CONCLUSION…
You have to put the magic in the
software.
(Not the other way around)
Concierge and other nonsoftware MVP’s can be pretty
magical.
ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
LEAN AT LARGE

Hypothesize

Learn

Experiment

Lean StartupStyle Assumptions

Lean at Large

Foundation in
Design Thinking COWAN!
ALEX
AlexanderCowan.com!
@cowanSF

Copyright 2014 Cowan Publishing
LEAN AT LARGE

Let’s not
argue

Let’s assume.
Then test.

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
ASSUMPTIONS & LEAN STARTUP
Priority

Key Assumption

Needs Proving?

1

[A key assumption about
the business]

1

Parents want to organize
the distribution of
Yes
allowances with an app

* Post the proposition in ads

online!
* Measure sign-up’s on a landing
page


2

Parents want to link
allowances to chores

Yes

* Show prototypes with choices

* Test in beta

2

Parents have smart
phones

No

n/a

[Whether it needs
proving!

Experimentation
[Experiment to !
prove or disprove]

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
OPERATING WITH LEAN AT LARGE

Copyright 2014 Cowan Publishing
EXERCISE: LEAN STYLE ASSUMPTIONS
List at least 3 assumptions (5 min.)!
“Parents want to better organize the distribution of allowances using
an app”
Priority: 1 [1 for existential; 2+ for others]
Needs Proving?: yes [yes or no]
...

One assumption
per index card

Copyright 2014 Cowan Publishing
EXERCISE: LEAN STYLE ASSUMPTIONS
1. Rank order them. Which ones are truly pivotal? 

Note with a ‘1’. (3 min.)

Copyright 2014 Cowan Publishing
EXERCISE: GROUP PRESENTATIONS (3 MIN/EACH)

1) What’s your idea? (Read positioning statement)!
2) What’s your MVP/next step?!
3) What are your success criteria for validation?

ALEX COWAN!
AlexanderCowan.com!
@cowanSF
Copyright 2014 Cowan Publishing
www.alexandercowan.com/venture-design

www.alexandercowan.com/venture-design

www.alexandercowan.com/startup-sprints

@cowanSF

acowan@alexandercowan.com
Copyright 2014 Cowan Publishing

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Venture Design Crash Course: Prep for Startup Weekend Oakland

  • 1. Prep. Workshop: ! Crash Course in 
 Venture Design! Copyright 2014 Cowan Publishing
  • 2. ABOUT ME ! ENTREPRENEUR (5X) ! INTRAPRENEUR (1X) ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 5. AGENDA Period! Activities Deliverables! CRASH COURSE IN VENTURE DESIGN Tutorials! Examples! Exercises First take on:! Personas! Problem Scenarios-Alternatives-Value Propositions! Start Business Model Canvas! Venture Hypotheses! Storyboards! MVP Ideas! Customer Discovery Ideas! ! Copyright 2014 Cowan Publishing
  • 6. IT’S A PROCESS Some techniques are more effective than others. Personas But they all require substantial, consistent exertion. Copyright 2014 Cowan Publishing
  • 7. VENTURE DESIGN Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 8. VENTURE DESIGN Hypothesize Learn Lean StartupStyle Assumptions Experiment Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 9. VENTURE DESIGN Hypothesize Lean StartupStyle Assumptions Business Model Canvas Learn Experiment Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 10. VENTURE DESIGN Hypothesize Lean StartupStyle Assumptions Business Model Canvas Learn Experiment User Stories & Test Cases Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 11. VENTURE DESIGN Hypothesize Lean StartupStyle Assumptions Business Model Canvas Learn Experiment User Stories & Test Cases Product & Promotion Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 13. DESIGN THINKING- APPLICATIONS ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 14. DESIGN THINKING- APPLICATIONS 1 2 Urinate as they go 3 Edges preferred 4 Speedy 5 Empathy Entry PB > cheese ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 15. DESIGN THINKING- APPLICATIONS Check & Repair 1 UV Validation 2 Relevant Placement 3 A Better Mouse Trap 4 Powered by Better Bait 5 Creativity ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 16. DESIGN THINKING- PERSONAS Personas Problem Scenarios Alternatives Your Value Propositions Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 17. DESIGN THINKING- PERSONAS ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 18. DESIGN THINKING- PERSONAS ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 19. DESIGN THINKING- PERSONAS •Women! •Age 28-45! •Have kids! •Socialize with other mom’s! •Online with Facebook! •86% said they’d like to be more organized! •70% said they’d use an application that organizes them Copyright 2014 Cowan Publishing
  • 20. DESIGN THINKING- PERSONAS Copyright 2014 Cowan Publishing
  • 21. END USER PERSONAS Rita 
 the Reseller Rhonda 
 the Receptionist Amy 
 the Assistant Esteban 
 the Executive Orson 
 the Office Mgr. Susan the 
 Small Bus. Owner Simone 
 the Standard User Mikuko 
 the Mobile User Ignatius 
 the IT Guy Keith 
 the Key System User Chuck 
 the Call Center Agent Cindy 
 the Call Center Manager Copyright 2014 Cowan Publishing
  • 22. ENTERPRISE PERSONAS Bruce 
 the Business Owner Sidney 
 the Sys. Admin. Anthony 
 the Applications Eng. Sam 
 the Support Eng. Paola 
 the Provisioner Percival the 
 Product Manager Itzhak 
 the IT Developer Saul 
 the Site Developer Nietzsche 
 the Network Eng. Sven 
 the Salesperson Frank 
 the Field Eng. Fritz 
 the Field Eng. Manager Copyright 2014 Cowan Publishing
  • 23. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 24. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X What job(s) are you doing for the customer? What existing need or behavior are you fulfilling? ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 25. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X ALTERNATIVE(S) ? ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 26. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X ALTERNATIVE(S) ? 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. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 27. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X ALTERNATIVE(S) ? YOUR VALUE PROPOSITIONS ! ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 28. YOUR PRODUCT HYPOTHESIS A certain PERSONA exists… … and they have a certain PROBLEMS(S) … X … where they’re currently using certain ALTERNATIVE(S) … ? … and I have a VALUE PROPOSITION that’s better enough than the alternatives to cause the persona to act (purchase, use, etc.). ! ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 29. ENABLE QUIZ: EXAMPLE PROBLEM SCENARIOS PERSONA Helen the HR Manager Frank the Functional Manager “It’s hard for me to screen on technical skill sets and I end up sending Frank unqualified recruits.” “I have limited time and I don’t want to be a jerk. It’s hard to screen for all the relevant technical skill sets.” ALTERNATIVE(S) - Call references! - Take their word for it - A few probing questions! - Take their word for it VALUE
 PROPOSITIONS New ability for meaningful screening of technical candidates, increasing % of successful hires and lowering Frank’s workload on recruiting. Less time doing interviews, and better hires sooner. X PROBLEM
 SCENARIO ? ! Copyright 2014 Cowan Publishing
  • 30. STORYBOARDING A PROBLEM SCENARIO BEFORE Problem Scenario 
 +! Alternative AFTER Problem Scenario 
 +! Value Proposition Copyright 2014 Cowan Publishing
  • 31. EXERCISE- PERSONA CREATION 1. List at least 3 personas (4 min) Mary the Working Mom Susan the Stay-at-Home Mom Douglas the Dad Nathan the Nanny … ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 32. EXERCISE- PERSONA CREATION 1. Which are buyers? Users? Both? Note with a ‘B’ and/or ‘U’ on the Post-It 2. Which have the most compelling need, desire? Sort top to bottom (4 min.) ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 33. EXERCISE- VALUE PROPOSITIONS X 1. Brainstorm Problem Scenario-Alternative-Value PROBLEM SCENARIO Proposition Trios. 
 (7 min.) ? ALTERNATIVE(S) ! YOUR VALUE PROPOSITIONS Problem: Mary would like to be more structured and consistent in her use of allowances to teach the link between work and financial rewards. Alternative: Track the completion of chores, homework, etc. manually using paper, boards, notes on her phone. Value Proposition: Use our app to easily and consistently implement best practices tailored to your situation. Copyright 2014 Cowan Publishing
  • 34. EXERCISE- VALUE PROPOSITIONS 1. Prioritize your value propositions- if you could only pitch one, which? After that? Etc. (2 min.) ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 35. PEER PRESENTATIONS PREP! For [target customer] who [statement of the need or opportunity], the [product name] is a [product category] that [statement of key benefit/key reason to buy]. unlike [primary alternative], our product [statement of primary differentiation]. Describe your venture accordingly (5 min.) Copyright 2014 Cowan Publishing
  • 36. EXERCISE: PEER PRESENTATION (2 MIN/EACH) As Presenter 1) Who is the persona? What kind of shoes do they wear?! 2) What problem scenario(s) are you looking at? What alternatives does the persona use now?! 3) What’s your value proposition?! As Audience - Focus on the process; avoid editorial! - Ask a lot of questions! - Think about it like an investor ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 37. THE BUSINESS MODEL CANVAS (Key Partners) (Key Activities) (Key Resources) (Cost Structure) (Value (Customer Propositions) Relationships) (Customer Segments) (Channels) (Revenue Streams) The templates here are made available on the same CC license terms as the original canvas. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 38. SEGMENT TO VALUE PROPOSITION MAPPING Partner_1 Partner_2 Partner_3 Activity_1 Activity_2 Activity_3 Proposition_1 Proposition_2 Proposition_3 Relationship_1 Relationship_2 Relationship_3 Resource_1 Resource_2 Resource_3 Cost_1 Cost_2 Cost_3 The templates here are made available on the same CC license terms as the original canvas. Segment_1 Segment_2 Segment_3 Channel_1 Channel_2 Channel_3 Revenue_1 Revenue_2 Revenue_3 This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 39. EXERCISE- MAPPING PERSONAS, VALUE PROP’S 1. Print out the Canvas ! 2. List your prioritized personas (Customer Segments) and Value Propositions! 3. Map your personas to your Value Propositions ! (3 min) Activity_1 Activity_2 Activity_3 Proposition_1 Proposition_2 Proposition_3 The templates here are made available on the same CC license terms as the original canvas. Persona_1 Persona_2 Persona_3 This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http:// creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Copyright 2014 Cowan Publishing
  • 40. DESIGN THINKING- USING PERSONAS MAKING
 STUFF
 What does the user (most) want? What does the user actually do? SELLING
 STUFF
 Who are we selling to?! ! ! Where do we reach them?! With what proposition? Personas Who’s buying?! Problem Scenarios Alternatives Your Value Propositions ! 
 Where?! ! 
 Why? Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 41. PERSONAS- DISCOVERY & VALIDATION Interviews AdWords, etc. + Landing Page Tests What language, propositions resonate? ! What is the customer prepared to do? Real-Time Analytics & Recording MVP Tell me about yourself.! What do you do? How often?! How does it make you feel? What do users actually do? Minimum Viable Product Do customers like it? Buy it? Use it? 
 Tell others about it? Copyright 2014 Cowan Publishing
  • 42. VENTURE DESIGN Hypothesize Learn Lean StartupStyle Assumptions Experiment Foundation in Design Thinking Copyright 2014 Cowan Publishing
  • 43. PLANNING Now Then Lean 
 Startup Five Year Plan 01 IDEA! 45,000,000% 40,000,000% 02 HYPOTHESIS 35,000,000% 30,000,000% 25,000,000% Revenue% Expense% 20,000,000% EBITDA% 15,000,000% 6.a PIVOT experiments 03 EXPERIMENTAL DESIGN disprove hypothesis 04 EXPERIMENTATION 10,000,000% 5,000,000% 0% !5,000,000% 2012% 2013% 2014% 2015% 2016% 2017% 2018% 2019% 2020% 05 PIVOT OR PERSEVERE? 6.b PERSEVERE ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 44. PLANNING WITH LEAN STARTUP Do I have real evidence from my buyer that this is compelling? What are the key assumptions required to make this business work? How do I definitely prove or disprove the assumptions with a minimum of time and effort? Am I reacting or am I focused on validating my pivotal assumptions? 01 IDEA! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION ‘Pivot or persevere?’ Copyright 2014 Cowan Publishing
  • 45. ASSUMPTIONS & LEAN STARTUP Priority Key Assumption Needs Proving? 1 [A key assumption about the business] 1 Parents want to organize the distribution of Yes allowances with an app * Post the proposition in ads
 online! * Measure sign-up’s on a landing page
 2 Parents want to link allowances to chores Yes * Show prototypes with choices
 * Test in beta 2 Parents have smart phones No n/a [Whether it needs proving! Experimentation [Experiment to ! prove or disprove] Focus on strategic, pivotal assumptions
 ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 46. PLANNING WITH THE LEAN STARTUP Crossing t’s
 Dotting i’s
 Doesn’t matter unless it helps prove (or disprove) your pivotal assumptions
 ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 47. PLANNING WITH THE LEAN STARTUP Subject 
 all your activities + metrics to that litmus test.
 ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 48. THE REVELATION OF CUSTOMER DEVELOPMENT You know you’re here and should be doing this, but. . . MVP . . . most people mimic mature business patterns and start here. Product-Market 
 Fit Scale PIVOTAL
 ASSUMPTIONS
 Nascent
 Test, revise, test...
 Validated- now tactical
 Validated- now tactical
 PRODUCT
 N/A
 MVP
 Focus: efficiency, extension
 What would a startup do??
 ORG.
 Founders
 PARTNERS,
 CHANNELS
 Customer dev. team
 Full functional organization
 Scalable organization
 Probably too soon
 Probably too soon
 Yeah, maybe?
 Yeah, definitely!
 ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 49. DESIGN THINKING- PERSONAS PROBLEM SCENARIO X ALTERNATIVE(S) ? YOUR VALUE PROPOSITIONS ! ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 50. YOUR PRODUCT HYPOTHESIS A certain PERSONA exists… … and they have a certain PROBLEMS(S) … X … where they’re currently using certain ALTERNATIVE(S) … ? … and I have a VALUE PROPOSITION that’s better enough than the alternatives to cause the persona to act (purchase, use, etc.). ! ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 51. LEONID MVP #1: CONSULTING It pays CONSULTING It’s easy to scale Consultants naturally do customer discovery ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 52. LEONID MVP #2: PRODUCTIZED CONSULTING Customer empathymore scope, detail on problem scenarios It’s easier to sell CONSULTING ‘PRODUCTIZED’ CONSULTING It’s easier to staff It’s easier to manage ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 53. LEONID MVP #3: SOFTWARE PRODUCTS Customer empathymore scope, detail on problem scenarios CONSULTING Validated problem scenarios with substantial detail ‘PRODUCTIZED’ CONSULTING PRODUCTS Copyright 2014 Cowan Publishing
  • 54. LEONID MVP #3: SOFTWARE PRODUCTS Validated problem scenarios Existing customer relationships PRODUCTS Ability to pre-sell ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 55. USER JOURNEY: PHOTO-SOCIAL ASSUMPTION
 User’s social network will like and share the app’s output ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 56. PHOTO-SOCIAL MVP MVP
 Create the target output by hand. ! ! Does anyone care? ASSUMPTION
 User’s social network will like and share the app’s output ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 57. ENABLE QUIZ: PROBLEM SCENARIO BEFORE AFTER ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 58. CONCIERGE MVP: ENABLE QUIZ Concierge MVP? Sure: Hand craft quizzes on paper on off-the-shelf tool. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 59. MVP: Zappos Some shoe buyers are dissatisfied with mall retail and would purchase online. Photograph some shoes and create a site to showcase them for sale. source: CNN article ‘Zappos’ silent founder’ ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 60. MVP: Paul Howe & Associates Some people would like to know how much their stuff is worth. Do it for them buy hand. source: as told to Lean Startup Circle, SF (Jan 2013) ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 61. MVP: Sprig Urbanites would like Uber-style, healthy, hot, meals delivered in 20 minutes. Put it on Eventbrite, email people, see what happens. source: as told to Lean Startup Circle, SF (Jan 2014) ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 62. MVP: Dropbox Users would sign-up and pay for a file exchange service that actually worked well. Create a ‘Wizard of Oz’ demo tailored for early market (techies) and measure sign-up’s. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 63. IN CONCLUSION… You have to put the magic in the software. (Not the other way around) Concierge and other nonsoftware MVP’s can be pretty magical. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 64. LEAN AT LARGE Hypothesize Learn Experiment Lean StartupStyle Assumptions Lean at Large Foundation in Design Thinking COWAN! ALEX AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 65. LEAN AT LARGE Let’s not argue Let’s assume. Then test. ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 66. ASSUMPTIONS & LEAN STARTUP Priority Key Assumption Needs Proving? 1 [A key assumption about the business] 1 Parents want to organize the distribution of Yes allowances with an app * Post the proposition in ads
 online! * Measure sign-up’s on a landing page
 2 Parents want to link allowances to chores Yes * Show prototypes with choices
 * Test in beta 2 Parents have smart phones No n/a [Whether it needs proving! Experimentation [Experiment to ! prove or disprove] ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing
  • 67. OPERATING WITH LEAN AT LARGE Copyright 2014 Cowan Publishing
  • 68. EXERCISE: LEAN STYLE ASSUMPTIONS List at least 3 assumptions (5 min.)! “Parents want to better organize the distribution of allowances using an app” Priority: 1 [1 for existential; 2+ for others] Needs Proving?: yes [yes or no] ... One assumption per index card Copyright 2014 Cowan Publishing
  • 69. EXERCISE: LEAN STYLE ASSUMPTIONS 1. Rank order them. Which ones are truly pivotal? 
 Note with a ‘1’. (3 min.) Copyright 2014 Cowan Publishing
  • 70. EXERCISE: GROUP PRESENTATIONS (3 MIN/EACH) 1) What’s your idea? (Read positioning statement)! 2) What’s your MVP/next step?! 3) What are your success criteria for validation? ALEX COWAN! AlexanderCowan.com! @cowanSF Copyright 2014 Cowan Publishing