software design class (session 4): setting course- designing your proposition

8/9/2019 Software Design Class (Session 4): Setting Course- Designing Your Proposition

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SOFTWARE DESIGN: SESSION 4SETTING COURSE-

DESIGNING YOUR PROPOSITION

Alex Cowan


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THE VENTURE DESIGN PROCESS

SCALE?

PIVOT?

PRODUCT &

PROMOTION

USER STORIES

& PROTOTYPES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

SHOW

ME

?

WHAT

IF?

Is the problemrelevant? Is theproposition bettervs alternatives?

Do we understand

this person? Whatmakes them tick?

Did theimplementationdeliver onthe story?

Was the implementedstory relevant to theproposition?

How did the customer/user react?

WHO?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES


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WHERE YOU SHOULD BE NOW

Personas, including

Think-See-Feel-Do

Problem Scenarios

Alternatives

Value Propositions

Do we understand


WHO?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES

Interview Guide

2 (or more) Interviews


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PERSONAS & PROBLEM SCENARIOS

X

The HR manager wants to send notes on candidates to thefunctional manager.

(Too Detailed, A Feature vs. a Product/Venture)

Hiring technical talent.

(Too Broad, Abstract)

Screening technical talent.

(Probably About Right)


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REVIEW MORE STUDENT WORK


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X

?

PROBLEM SCENARIO

ALTERNATIVE(S)


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XPROBLEM SCENARIO

?ALTERNATIVE(S)

YOUR VALUE PROPOSITIONS !Are they better enough than thealternative(s)?


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Problem ScenarioHelen needs to screen a lot ofengineering candidates for open positions, sending

only qualified candidates to the hiring manager.

Many of the skill requirements are outside herbackground.

Alternative: She calls references to get a generalsense of their performance on the job.

Value Proposition: If we offer her an automatedcapability for meaningful screening of technical

candidates, she would use it and continue to use it

because it improves hiring outcomes.

PROBLEM

SCENARIO

X ?ALTS

!YOUR

PROPOSITIONS

Add Value Propositionsagainst your Problem

Scenario+Alternative Pairs


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NOW YOU HAVE A PRODUCT HYPOTHESIS

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 alternativesto cause the persona to act (purchase,

use, etc.).

A certain PERSONAexistsHR and functional managers are in charge of

technical hires

and the HR managers need to effectively screen a

large number of candidates, many of whom haveskills outside the HR managers background.

Currently they implement a patchwork of callingreferences and asking a few probing questions.

By offering an easy, affordable, lightweight

technical quizzing solution, Enable Quiz can

acquire and retain these customer personas,delivering material value.

Enable Quiz example:


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WHAT WELL WORK ON TODAYFinding the Right

PROBLEMFinding the Right

SOLUTION

time

alternatives

divergence convergence divergence convergence

source: adapted from The Design of Everyday Things

PersonasProblems

Alternatives

Field

Discovery

Value Hypothesis &Assumptions

ProductHypothesis

Experiments on Motivation


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WHAT WELL COVER TODAY

Do we understand


WHO?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES

VALUE

PROPOSITIONS &

ASSUMPTIONS

Do we understand


WHO?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES

CUSTOMER

DISCOVERY &

EXPERIMENTS

VALUE

PROPOSITIONS &

ASSUMPTIONS

WHAT

IF?

Do we understand


Was the implementedstory relevant to theproposition?

WHO?PERSONAS

WHAT?

PROBLEM

SCENARIOS &

ALTERNATIVES


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WORKING YOUR PRODUCT HYPOTHESIS

and I have a VALUE PROPOSITION

thats better enough than the alternativesto cause the persona to act (purchase,

use, etc.).

VALUE HYPOTHESIS

QUESTIONS

How much better than the best alternative

is your product?

How obvious is that to the customer?

TOOLS

Testable Propositions

Structured Assumptions

Structured Experiments (including MVP)


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WHAT ANGLE ARE WE WORKING?

source: adapted from BJ Foggs Behavioral Model

Ability (Usability)

Motivation

Action Line

Inaction : (

Action : )


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HYPOTHESIS-DRIVEN INNOVATION VIA LEAN STARTUP

Do I have real evidence from my buyer thatthis is compelling?

01 IDEA!

What is our value hypothesis and what areits key assumptions?

02 HYPOTHESI S

How do I definitely prove or disprove theassumptions with a minimum of time andeffort?

03 EXPERIMENTAL DESIG N

04 EXPERIMENTATION

Am I reacting or am I focused onvalidating my pivotal assumptions?

Pivot or persevere?

VALUEHYPOTHESIS

source: adapted from The Lean Startup


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HYPOTHESIS-DRIVEN INNOVATION VIA LEAN STARTUP

What is our value hypothesis and what areits key assumptions?

02 HYPOTHESI S

VALUEHYPOTHESIS

If we [do something] for [persona], they will [respond in a certain way]


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EXAMPLE: ENABLE QUIZ

Persona(s)Helen the HR Manager- responsible for sourcing and screening job candidates

Frank the Functional Manager- hiring manager responsible for acquiring and managing talent

ProblemScenario

Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews

AlternativesHelen: call references, take their word for it (on skills)

Frank: ask a few probing questions

Value Prop. A lightweight quizzing app that has Helen can use to do quick, effective screening.

What is the core value hypothesis?


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Basic Value Hypothesis

If Enable Quiz offers companies that hire

engineers lightweight technical quizzes that

screen job candidates for engineering positions,then these companies would trial, use, adopt, and

pay for such a service.


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As a group, draft yourcore value hypothesis

If Enable Quiz offers companies that hire

engineers lightweight technical quizzes that

screen job candidates for engineering positions,then these companies would trial, use, adopt, and

pay for such a service.

As a group, convergeyour product hypothesis

(5 min)


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UNPACKING THE CORE HYPOTHESIS


Example Assumptions (Enable Quiz)

If we get HR managers to a landing page with a demo, 10% will sign up forour email product announcements.

If we create position-specific quizzes for HR managers, theyll use them~100% of the time and, after two positions, be willing to pay.

If we offer the service at [x] price with [y] supplemental assistance,companies that hire a lot of engineers will pay [z].


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TESTING YOUR ASSUMPTIONS VIA AN MVP

M

VP

inimum What is the fastest, cheapestway to validate or invalidate

this option so we give

ourselves more options on

future success?



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iableWill it give us a definitive

result? What are the

actionable metrics?

M

VP



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roductDoes it really require actual

product? Can we use

alternative brands, channels?

M

VP



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roductiable

inimumis not necessarily actual software/product (seeconcierge MVP)

is a first and foremost learning vehicle

vs. a project plan

(OK to do those things but alwayssubordinatethem to the learning mission)

vs. a product development project

M

VP



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UNBUNDLING THE CORE HYPOTHESIS INTO ASSUMPTIONS

MVP Archetype Notes

Wizard of Oz Show or fake the customer experience

Concierge Hand create the user experience

Sales See if you can sell some.


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UNBUNDLING THE VALUE HYPOTHESIS INTO ASSUMPTIONS

MVP Archetype Example Assumptions (Enable Quiz)

Wizard of Oz If we get HR managers to a landing page with a demo, 10% will sign up forour email product announcements.

Concierge If we create position-specific quizzes for HR managers, theyll use them~100% of the time and, after two positions, be willing to pay.

SalesIf we offer the service at [x] price with [y] supplemental assistance,companies that hire a lot of engineers will pay [z].



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CASE STUDY: DROPBOX

OPPORTUNITYUnderlying demand and supportinginfrastructure ready for a great file sharing app.

CHALLENGEBuilding a great cross-platform app. requiredVC funding. VCs saw a space with lots ofexisting competitors struggling to get traction.


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CASE STUDY: DROPBOX

PersonaTom the Techie- early adopter who works on projects that require swapping a lot of files between a shifting

network of collaborators.

ProblemScenario

Its difficult to share files between a network of collaborators, particularly if theyre: big or numerous or change a

lot.

AlternativesMany existing products, but none of them super compelling and widely adopted.

Also, custom setups which work but are cumbersome to set up and maintain.

ValueHypothesis

If Dropbox created a file sharing service that truly felt transparent to the user across all major platforms- OSX, iOS,

Windows, etc., then a mass market of users would prefer it over the alternatives, subscribe to it and use it over

time.

What Minimum Viable Product (MVP)?

That you can bootstrap?

That doesnt require software at all?


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THE WIZARD OF OZ MVP

Result: Excellent traction and

conversion to sign-ups.Strong validation signal.

Created a synthetic web demo tailored

for early market (techies), promoted it,

and measured email sign-ups.


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OPPORTUNITYHiring quality technical talent is critical formany companies, but screening for skill sets istime consuming and awkward.

CHALLENGEThe founding team wants to bootstrap withoutexternal funding so they need to focus on aspecific technical domain, one that will getthem strong early traction.


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Persona(s)Helen the HR Manager- responsible for sourcing and screening job candidates

Frank the Functional Manager- hiring manager responsible for acquiring and managing talent

ProblemScenario

Helen: hard to screen for technical skills

Frank: never has enough time for recruiting and doesnt want to be a jerk during interviews

AlternativesHelen: call references, take their word for it (on skills)

Frank: ask a few probing questionsValueHypothesis

If Enable Quiz offers companies that hire engineers lightweight technical quizzes that screen job candidates for

engineering positions, then these companies would trial, use, adopt, and pay for such a service.





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THE CONCIERGE MVP

Metrics:

Do the HR managers use them? How often?

Do they want one for their next open position?

Do the functional managers care?

Work with a set of HR managers to produceposition-specific quizzes by hand on paper (or

Google Forms, etc.).


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A QUESTION?There are dozens of technical/engineer topicsEnable Quiz could offer. How can they assesswhich topics are most marketable?


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THE GOOGLE ADWORDS MVP

Metrics:

Which topics have the highest click-through rate (CTR)?

Which then convert to sign-ups to newsletters, etc.?

Pair their qualitative research with topics trendingonline and then run a series of Google AdWords

campaigns with different topics.


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CASE STUDY: LEONID SYSTEMS

Persona(s) Chris the CTO- has funding and mandate to transition the business towards hosted services; many bases to cover

ProblemScenario

IT is the most expensive, most risky area when making changes to the business.

Alternatives1) Place large, risky bets on major new system upgrades. 2) Make small incremental updates (but risk not keeping

pace).ValueHypothesis

Leonid will offer modular, integration-friendly applications in two critical areas: 1) services provisioning and 2) end

user self-service portals.





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CASE STUDY: LEONID SYSTEMS

Started with consulting as a concierge vehicle

to create tactical solutions, focus problemscenarios, evolving to full-fledged product.

Result: Steady step-wise growth with

consistently better understanding of key

customer problem scenarios.


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ABOUT SOFTWARE, TESTING MOTIVATION, AND MVPS

You have to put the magic in the software.

(Not the other way around)

Concierge and other non-software MVPs

can be pretty magical.

Find 100 people that are really into it and

you can probably grow.


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UNBUNDLING THE VALUE HYPOTHESIS INTO ASSUMPTIONS

MVP Archetype Example Assumptions (Enable Quiz)

Wizard of Oz If we get HR managers to a landing page with a demo, 10% will sign up forour email product announcements.

Concierge If we create position-specific quizzes for HR managers, theyll use them~100% of the time and, after two positions, be willing to pay.

SalesIf we offer the service at [x] price with [y] supplemental assistance,companies that hire a lot of engineers will pay [z].


How might you use each of the vehicles above to test yourbasic value hypothesis?

(If you find you need to decompose/refine it, go ahead.)


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EXERCISE: STORYBOARDING THE CUSTOMER JOURNEY

AttentionInterest

DesireActionOnboarding

Retention

How do they first findout that you, your

proposition exist?

How do you break

through the noise

floor?


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AttentionInterest


Retention

What is it that

engages them withyour proposition?

How will youconnect?


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AttentionInterest


Retention

Are you connectingwith an importantproblem scenario?

Is your VP better

enough than thealternative?


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AttentionInterest


Retention

What is absoluteminimum set of

actions required by

the customer tohave you deliver on

their problem?


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AttentionInterest


Retention

How do they

become a regular,habitual user? How

will you know if

thats happening?


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STORYBOARDING AIDAOR- ENABLE QUIZ

Attention Interest Desire


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STORYBOARDING AIDAOR- ENABLE QUIZ

Action Onboarding Retention


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STORYBOARDING AIDAOR

StoryboardAIDAOR for your

project

Attention Interest Desire

Action Onboarding Retention


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VALIDATION CRITERIA

0 Day30 Day

90 Day

Can they use it?


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VALIDATION CRITERIA

0 Day30 Day

90 Day

Are they still using it?


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VALIDATION CRITERIA

0 Day30 Day

90 Day Is it creating betteroutcomes?


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TEMPLATE: PERSONAS, PROBLEM SCENARIOS, INTERVIEWS

ref.alexandercowan.com/pdesign


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ASSIGNMENTS

1. Do/Individual: Draft Value Propositions for Your Problem Scenarios

(10-20 minutes)

2. Do/Individual: Draft a Summary Value Hypothesis(~5 minutes)

3. Do/Individual: Place Your AIDAOR Storyboard (~5 minutes)

4. Do/Individual: Draft Three MVP Ideas (10-15 minutes)5. Do/Individual: Draft a Working Set of Assumptions and MVP Ideas

Against Your Value Hypothesis (10-15 minutes)

v6

software design class (session 4): setting course- designing your proposition

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