Design Thinking&

Lean Startup

Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.

Tim Brown, CEO IDEO

#Demystification

Customer Development

Lean Manufacturing

Agile Software Development

Lean Startup Sources

Customer Development

Focus on customer from day 1Validate demand before you build

Lean Manufacturing

Reduce wasteContinuous improvement

Agile Software Development

Rapid IterationContinuous deployment

1997 2003 2011 20121988 2014

#FlashBack

Have an idea☟

Write a business plan☟

Raise money☟

Build the product☟

Launch☟

Market it☟

90% chance to fail

Traditional Startup Path

Projected growth

No business plan survives first contact with customers

Steve Blank

A startup is a temporary organization formed to search for a repeatable and scalable

business model

Steve Blank

1. Search 2. Validate 3. Grow

3 Stages of the startup

Problem/Solution Fit Product/Market Fit Scale

Customer Discovery Customer Validation Company building

Build the right product and features

that keeps users coming

Find a cost effective way to grow your customer base

Find a real and poorly addressed

need

Find how to solve it for customers willing

to pay

Turn your hypotheses into facts

Based on the outcome, pivot or persevere. Go back to step 1.

Identify the riskiest hypothesis from your business model.

Design and run an experiment that prove if hypothesis is either true or false.

1

2

3

To maximise chances of successMinimize total time through the loop

You are wasting if you are not learning

MinimumViable

Product

#build

Minimum Viable Product

An experiment that can validate or invalidate an hypothesis.

Minimum effort for maximum learning from your customers.

An MVP should not be perfect.

How to build an MVP

Discovery Interview

Landing page

Solution Interview

Crowdfunding

Concierge

Wizard of Oz

Low fidelity protoVideo

Stage

Reach

Prototype

Examples of MVPs

If you are not embarrassed by the first version of your product, you’ve launched

too late.

Reid Hoffman

Measure

#data

Cumulative vs Conversions

Big Data-vs-

Lean Data

FOCUS Only Metric that Matters

(OMTM)

1. Empathy2. Stickiness / Retention / Engagement3. Virality4. Revenue5. Scale / Distribution

StickyCustomers don’t leaveMetrics: Churn & ARPU

ViralCustomers bring new customersMetrics: Viral rate

PaidCustomer acquisition via advertisingMetrics: CAC < CLTV

Growth EnginesStrategy to allow your startup to grow

Pivot-or-

Persevere

Pivot is a change of strategy

Strategy

Optimisation

Pivot

Vision

Strategy

Product

Product-Market fit

Customer Development

#LeanCanvas

Customer & Problem Hypothesis

? ?

Target a micro-segment, the innovatorsThe first, second and third customer

Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957

Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957

Target a micro-segment, the innovatorsThe first, second and third customer

It is not:● Survey● Questionnaire● Focus group● Market Study● Your personal experience● Conversation with friends

Customer Discovery

what people actually

do

what people think

they will do

what people say

they will do

Franck Debane @fdebane

GET OUT OF THE

BUILDING

Problem Interview

YOU

Understand problem importance / frequency

Discover:➢ alternative solution to solve the problem➢ get an idea of how much the problem cost➢ how the customer look for solution to their

problem➢ the biggest pain point about the problem➢ the root causes of the problem➢ key insights to design a solution

Problem Interview: Goals

evaluate the problem importance

has the problem

aware of having the problem

looking for a solution

hacked a solution

pay for a solution

how often the problem occurs

➢ Do not talk about your idea➢ Listen, don’t talk. Be nosy. Drill down.➢ Be ready to learn and not to sell.➢ Ask about the past events➢ Be specific and avoid general questions➢ Learn, be curious. Keep asking why➢ Keep your questions unbiased➢ Repeat what you understand and get

confirmation or correction➢ Go in pairs. Take notes.➢ Interview one person at the time.

How to: problem interviews

...to Customer Validation

Get a proof of commitmentSomething of value from the customer - more than words

The stronger the commitment, the better the proof

Confirm & Sell

● Money (pre-order)● A check● A signed agreement (with blood?)● Invitation to another meeting● An email, phone number● Access to their sensitive data● Access to friends list● Something that has value, etc...

You can be creative in what you ask for, as long as it’s something that has value to your customer.

Things you can accept as payments

...to sum up...

Problem: WHAT

Solution: HOW

Waterfall

Agile Lean Startup

known unknown

unknown

known

To maximise chances of success:Minimize TOTAL time through the loop

Hypothese

Customer behaviours

MVP

Validate or invalidate

Reactivity, adaptability & flexibility-vs-

perfect planification

Thank you!

Franck Debane @fdebane

Lean Startup& Design Thinking

Similarités & Différences ?

source: http://secure.nordstrominnovationlab.com/pages/our_process_told_as_our_team_s_timeline

Thank you!

FEASIBILITY DESIRABILITY

VIABILITY

Beware of the process!