How to think like a startup in a corporate environment

Think like a Startup

17 December 2015

Teams: name your team and Colonel

…but first, a little context

…so why startup thinking?

Established business models are being chipped away by human-

centered startups

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/

Source: Tom Goodwin

“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

Where do we start?

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

Problem Solution canvas vs Business Model canvas

Startup world

VS

Today’s world

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

Summer campaign

Footy finalsEaster

Every year CCSP plans with 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

Question:Do people want a drill

or a hole?

Define right problem…

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?


WORKOUT TIME:

5 MINS

Reflect your problem solution

canvas and review your problem

09:55am

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?


WORKOUT TIME:

5 MINS

Has your problem definition changed?

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 (assumptions) into fact

36Classified – Confidential | Page 36

10:20am

How do we turn guesses into fact quickly & cheaply and validated our

learning?

37Classified – Confidential | Page 37

Lean Startup

38

De-risk an idea via

Classified – Confidential | Page 38

An iterative approach that advises creating small

products (ie MVP) that test assumptions and using customer feedback

- Eric Ries

39


Minimum viable productExtreme users

Validated learningPivot

So, how to we actually do this?

41


There are three key principles

42


43


1.Document your idea


44

2. Identify the riskiest parts


45

2. Identify the riskiest parts

3. Systematically test it. “Get out of the building”



Process to help us

identify & test

assumptions

Page 46

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…


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

So how do we best observe customers?

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


Source: http://www.slideshare.net/adrianholzer37/value-proposition-design

Value Proposition Canvas example

Page 57

Say we have an idea, and we create a…

Page 58

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


Workout time!

Identifying

assumptions

20 minsPage 61

10:40am

Instructions

“B” canvas & starting brainstormi

ng assumptions

Page 62

Next

Prioritizing

assumptions

Page 63

11:00 am

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


Workout time!

Prioritizing

assumptions

10 minsPage 65

11:05am

Instructions

Move the assumptions around from “Critical” and “Nice to Have”

Page 66

Next

Select top 3

assumptions

Page 67

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


Workout time!

Select top 3

assumptions10 mins

Page 69

11:20am

Instructions

Select the top 3

“Critical” and add to Experimentcard “C”

Page 70

Next

Design our validation method

Page 71

Value Proposition Canvas top 3 assumptions are… Idea: NudgeFX Customer: Committed Female Runners



MVP

..on customer

Validated if… (and why?)







MVP

..on customer



Smoke Test site explains the value proposition

Staff wanting to get fit






MVP

..on customer





1. At least 8 people of 15 emailed register (Quantitative)

2. Positive facial expressions, gut reactions, and body language (Qualitative)



✓




MVP

..on customer








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)


✓✓



✓✓✓


MVP

..on customer













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


11:40am

How do you pick the right MVP?

What do you need to do arrive to validated learning?


Minimum Viable Product (MVP)

Quick



Cheap



Minimal



Testable



Measurable



Don't sell the idea, test it


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


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.

Founded in 2009, raised $2.25M in 1 Round, Acquired by Food Network on April 20, 2014

So back to our NudgeFX idea and validating our top 3 assumptions


Idea

Problem Solutioncanvas

Value Propositioncanvas

Experiment Card

11:50am


MVP

..on customer













Sign up site with $39 per month subscription


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


PivotOr

Preserve

Did you find your MUST HAVE solution?

Did you find your EARLY ADOPTERS?

What new INSIGHT you learnt?

Our real

example


$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:


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:


Page 113

Experiment #2

Riskiest assumption: High cost of personal trainer

Page 114

Assumption:


Experiment/MVP

Sign up site with $39 per month

subscription

Customer


Experiment #3

$100 Website + $2,650 mockup app + $2,200 p/t = $4,950 Created in 60mins, running over 6 weeks

Workout time!

Design your experiment

10 mins

115


12:00pm

Instructions

Add MVP and Customer to Experiment

Card

116


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


Next

Validate assumption

s

Page 118

Workout time!

Testing assumption

s

10 mins

119


Instructions

Find another team and

test 1 top assumption

120


121

So you have a great idea?


122

Prove it!


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


12:20pm

Let the games begin!

http://www.online-stopwatch.com/eggtimer-countdown/full-screen/




Reading options

URL: http://hbr.org/2013/05/why-the-lean-start-up-changes-everything/ar/pr


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”


What is your idea? What are the critical value proposition features?



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


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


A


B


MVP

..on customer Validated if..

EXPE

RIM

ENT

CARD

TEM

PLAT

E


C