Prototyping digital business and services

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Prototyping digital business and services Workshop in Colombia !26th-27nd of March, 2014!

Magnus ChristenssonPartner, Socialsquare

!

[email protected]

Twitter: @mchristensson

!Since 2005

pioneering blogs, wikis, visual sharing, social media, social intranets, social products and services, building communities etc.

Digital Strategy and Innovation Understand - Strategy - Action

Understand and prioritize !

!

Build-measure-learn Launch and repeat

Lean strategy

Business prototypes

Build & Launch

2013 - Long haul business innovation made by smart agile moves

!• Business model innovation process • Process and product owner for product dev

and marketing teams • MVP approach build and launched in 3

months • Customer development via social media • Campaign and launch support • Community building and management • 1000 new titles published first 6 months • 10000 monthly downloads of material first 6

months

2012 - Continuous product roadmap, user profiles and data strategy !

• Product audit • Competitor and challenger review • Technology and trend research • Prototype • Userprofiles • Concept development of app • Interviews and user research • Strategic process with all stakeholders in the

organization • Strategical advising the management • data strategy

11

Planlagt rejse

Ad-hoc rejse

Pendling

Finde tog/busWayfindingÆndringer pårejsen? Kom med alternativer

Planlægning og betalingPåmindelsePlads reserv.Billetter

Informere om skift Wayfinding

Ændringer pårejsen? Kom med alternativer

KvitteringFeedback

Lige før

Lige før

Skift

Lige efter

Skift

Før

Relevant i dagMulighedsrum

Lige efterAfgang

Ankomst

Rejsende har brug for at kunne søge,

planlægge og købe hele den samlede

rejse via Rejseplanen. Rejsende har brug for at blive notificeret omkring

rejsen inden den begynder.

Rejsende har brug for wayfinding til start destination og mellem skift på rejsen, samt notifikationer om eventuelle ændringer på rejsen.

Rejsende har brug for notifikationer på rejsen f.eks. om hvornår vedkommende skal af. Hvis der er ændringer på rejsen skal Rejseplanen tilpasse sig disse og komme med alternative forslag.

Den rejsende kan orientere sig og få notifikationer f.eks. i forhold til mulige eller planlagte returrejser.

Rejsende har typisk brug for at her-og-nu kunne finde en destination og

købe den samlede rejse dertil. Typisk

vil man søge og købe rejsen mobilt.

Ad-hoc rejsende har typisk brug for her-og-nu information omkring de

forskellige trin i rejsen, som man kommer frem.

Rejsende har brug for notifikationer på rejsen f.eks. om hvornår vedkommende skal af. Hvis der er ændringer på rejsen skal Rejseplanen tilpasse sig disse og komme med alternative forslag.

Den rejsende kan gemme destinationer, såfremt disse er af særlig relevans eller interesse.

Rejsende har typiske ikke brug for at

søge på Rejseplanen, men har et behov for at kunne trække information til sig baseret på tid og sted, at kunne se afvigelser fra køreplanen via mobil

Rejsende har typisk brug for informationer omkring ændring på rejsen. og overblik over alternativer.

Den rejsende skal have specifikke og personaliserede informationer f.eks. omkring forsinkelser eller ændring i planen. Ligesom pendlere eventuelt også selv kan indrapportere problemer til gavn for andre rejsende.

Den rejsende kan gemme ofte brugte destinationer og “følge” bestemte linjer, stationer og afgange i forhold til at personalisere Rejseplanen til

sine behov.

Forskellige behov identificerer Rejseplanens mulighedsrum

I dag er Rejseplanen kun relevant i forhold til planlægning og ved eventuelle skift på rejsen. De rejsende

som har forskellige rejsetyper har dog forskellige behov. Disse præsenteres yderligere i modellen neden.

Disse anskueliggører også det mulighedsrum Rejseplanen kan arbejde med hvis man ønsker at levere mere

relevant information i forbindelse med rejsen.

2014 - Global learning platform for the activist youth

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!• User research • Concept and product development • agile sprint development with heavy end-user

involvement • Organization building in a global

organization • Community and social design • Content and launch support

2013 - Making social happen in DI. Building a digital organisation through experiments !

• Social media strategy • Consulting and driving 5 Social media

spearhead projects in different business units • Using LinkedIn as a strategic platform • Education in community management • Developing governance and guidelines

through learning from experiments

2013 - Understanding digital tourism from where the action is

• Working closely with Wonderful Copenhagen R&D and Marketing department

• Digital strategy for community building • Mapping the digital customer journey • +60 interviews with tourists • Providing deep quantitative and qualitative customer

understanding of the digital tourist • Enabling internal units to design, plan and execute

activities on digital platforms

How the internet and the digital domain is changing service-related business as we know it.

Digital Strategy and Innovation AgencyHelping The Challengers Disrupt

Filed for bankrupcy 2012

Iphone launched in 2007

Flickr launched in 2004

Instagram launched in 2010

1998 2000 2002 2004 2006 2008 2010 20120$

20$

40$

60$

Kodak share price

133 years old Invented the digital camera + 300.000 Facebook likes

2 years after launch used by every 4. th dane

7 months after launch in 400.000 Danish households

If we look at the education market…

You might say that this change have two angles…

A technology (or rather web) angle

The hotel industry made by web people

Culture support made by web people

Employment services made by web people

Banking made by web people

And a service angle (which often is pretty social or collaborative)

Peer-to-peer parking

Peer-to-peer lending services

Peer-to-peer car sharing service

Services

The service paradigm shift happen in the 80s

• Fewer tangible components • Difficult do judge quality before purchase • Simultaneous production and consumption • Time-dependent • No transfer of ownership

Customers pay for outcomes or solutions to their needs or challenges. !

This is increasingly through services, where technology and sociality adds new perspectives to the value services can provide or the economy of scale behind them.

“Software Is Eating The World” Marc Andreessen

If you look five years out, every industry is going to be rethought in a social way. You can remake whole industries. That’s the big thing.”

Mark Zuckerbergwww.ft.com/reports/connected-business-dec2010

http://www.ft.com/reports/connected-business-dec2010

What does this means for how we develop businesses?

There was not much literature on developing new businesses a few years back. !

Most academia focused on managing existing businesses. And the literature that was there did not take the digital disruption we see today in to account.

“An organization dedicated to creating something new under conditions of extreme uncertainty”

“A startup is not a smaller version of a large company” !

Ash Maurya Steve Blank Eric Ries Jason Fried David Heinemeier

We are inspired by…

and many more…

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Meet the challengers !http://www.socialsquare.dk/

startup-research-project/

We* believe we can learn a lot from how a start-up is developing their business and services. !

*) so does General Electric, Toyota, UK Government Digital Services, Microsoft and many other incumbents and large organizations.

There are typically 2 types of start-ups

Tech-first (like Google) are those that need to be built to show they work

Service-first (like Airbnb or Facebook) are those that depend on a service or community

If you’re not a developer… fight the tech-first mentality with a service-first business approach

A startup have… !

• Limited ressources • A unknown product meeting an unknown need • A lifetime dependent of reaching its customers

Therefore a start-up works towards… !

• Finding a plan that works • Risk minimizing • Ressource optimizing • … through customer focus

• Minimize the time in each iteration.

• Iterate as many times as possible

A approach related to design thinking

!

• Knowledge generated through action • Knowledge building process + knowledge using process

• Focusing on what and how rather than why • Focusing on humans • Having a holistic, systemic and visual approach

CUSTOMER DISCOVERY Problem/Solution fit

3 stages

CUSTOMER VALIDATION Product/Market fit

CUSTOMER CREATION Scale

“Before investing months or years of effort towards building a product, the first step is determining if this product is something worth doing” Ash Maurya

PROBLEM/SOLUTION FIT High-touch, Market risk, Qualitiative

First: problem/solution fit

• No clear understanding of the problem • Mitigate the market risk • Goal: Find a problem worth solving and

discover customers • Through formulating a set of hypotheses… • …and then testing them hands-on through

customer interviews • Can take weeks or a couple months to

complete

From a lot of potential users come a few customers

100 users

10 customers

PRODUCT/MARKET FIT Self-serve, Tech risk, Quantitative

Then: product/market fit

• Go from hands-on and high-touch to automated service and high-tech

• Mitigate the tech risk • Goal: to build something people want and

validate your business model • Through iterations of your service (MVP) • …and increased customer acquisition • The riskiest part of the work which can take

months or years to navigate

Developing your service and business

PROBLEM/SOLUTION FIT

High-touch,

Market risk,

Qualitiative

100 users

10 customers

1000 users

100 customers

10.000 users

1000 customers

100.000 users

10.000 customers

PRODUCT/MARKET FIT

Self-serve,

Tech risk,

Quantitative

PHASE 1

PHASE 2

PHASE 3

PHASE 4

TIME

GROWTH

This model is inspired by and adapted from Ash Maurya’s 10x Product Launch Plan

FOCUS

You all have services and businesses you want to launch - or you want to help others develop their businesses

Lean canvas

Business model canvas

Lean canvas

Problem Solution

Key Metrics

Value Proposition

Unfair advantage

Channel

Customer segments

Cost structure Revenue streams

Existing alternatives Early adopters

Lean canvas

Problem Solution

Key Metrics

Value Proposition

Unfair advantage

Channel

Customer segments

Cost structure Revenue streams

Top 3 problems Top 3 features

Key activities you measure

Single, clear compelling message that states why you are different

Can’t be easily copied or bought

Path to customers

Target customers

Acquisition cost

Distribution cost

People, etc

Revenue model

Gross margin

Etc.


Lean canvas

Problem Solution

Key Metrics

Value Proposition

Top 3 problems Top 3 features



Customer segments

Target customers


Excercise

Develop the problem area of your lean canvas

Problem

Problem

Top 3 problems

Existing alternatives

Are we working on a problem worth solving? What do we think is the problem we are trying to solve?

!

!

!

!

What existing alternatives is there today?

Excercise

Develop the solution area of your lean canvas

Solution

What do we think is the right solution? What 3 features does it have? How does it work? How does it look?

Solution

Top 3 features

“A Minimum Viable Product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort”

Eric Ries

How Vayable was developed…

1. Finding the guides Jamie Wong (the founder) started locally in San Francisco and her first step was finding tour guides. She talked to friends, friends of friends, and travel bloggers to be guides in SF. She even hosted meet-ups to find interesting people. !

2. Finding the tourists With some tour guides on hand, she set out to find tourists. Her initial batch of tourists came from a genius move: she hosted Airbnb guests, figured out what they wanted to see, and set up tours for them. !

3. Set-up and deliver tours She was able to find these things out and get people to pay her real money with no tech. Just a blog with a bit of info, a couple pictures of the guides, a few video testimonials, and a whole lot of hustling.

MVP

• Explore only ideas that require no more tech than maybe a wordpress blog or simple website.

• Think about how to make a service or community work in a tiny way.

• Provide your service 100% manually until you just can’t do it without more people or tech.

How can we make a MVP for a service?

Service blueprints

Its a way to specify and detail each individual aspect of a service. This involves creating a visual schematic with both user and service provider perspectives.

Service phase 1 Service phase 2 Service phase 3 Service phase 4 Service phase 5

Service Blueprint

Group:

Date:

Version:

Cus

tom

er

activ

ityTo

uch-

poin

tSe

rvic

e

Developing touch-points

DEVELOP SKETCHES DESIGN WIREFRAMES DESIGN PROTOTYPES

Author Consultant Blogger Business owner

Scientist Cultural institution

Professional Speaker

yes!

no!

?!no!

no!

yes!

yes!yes!?!

Company

Excercise

Identify your customers

Customers

Who is having the problem? !

!

!

!

!

Who really want your service now?

Customer segments

Target customers

Early adopters

From a lot of potential users come a few customers

10 users

1 customer

Excercise

What is your value proposition?

Unique value proposition

What do we offer? !

The UVP is a marketing promise. You develop it from your hypothesis about the Problem and the Solution.

Value Proposition


Value propositionTemplate “We help X do Y by doing Z” !

Example We help manufacturers develop great products quickly by giving them access to 3D printers as a per hourly service fee

How do you test your MVP?

Why are we doing interviews

!

• To make sure you have a problem worth solving and what that problem is

• To identify those who have the problem - but especially those who are willing to pay for it now (the early adopters)

• To understand what a solution to the problem might be and to validate your solution (MVP)

• To test pricing (later on)

Interviews

• What questions should you ask? Well, what do you want to know? (it’s a good idea to look at the hypothesis you identified yesterday)

• Talk to the right people (the list of customers from yesterday should be able to answer your questions)

• Write an interview guide (Cover all your areas of interest and make it comparable across interviews)

• Get feedback on your prototype (Show/tell them how the service works, use your blueprint or mock-ups of touch-points)

• Listen, don’t pitch your idea (don’t sell, don’t use leading questions, but open-ended questions. Be curious.)

• Summarize what you learn (create overview, identify patterns, conclude and update your documents)

Testing prototypes

Interview guide PrototypeInterview summarizes

Interview patterns

Excercise

Establish an interview guide

Interview guide

• What do we want to know? (it’s a good idea to look at the different hypothesis you developed yesterday)

• How can you test your hypothesis related to the problem you are trying to solve? • How can you test your hypothesis regarding the solution? • Does our value proposition resonate with them? • What are your early adopters attitude and expectations towards the service? • What do they use today that is similar to what you offer? And why, do they use it? • What barriers hinders your early adopters from using your service?

Documenting and taking the consequences of what you’ve learned.

Updating your documents is important…

!

• To document the learning you have made • To have a systematic way of developing your business

idea and service • To update your interview guide and your focus of

learning

How does the input we received effect our…

!

• View on the problem? • Ideas about the solution? • The design of our service blueprint or touch-points? • Knowledge on our early adopters? • Hypothesis on what they find valuable? • Value proposition?

!

• What new questions do you have to ask?

Excercise

Fill out the metric area of your lean canvas

Metrics

What are you measuring?

Key Metrics


Dave McClure, pirate metrics

Aqcusition !

Activation !

Retention !

Referral !

Revenue

How do users find you? !

Is their first experience with you great? !

Do they come back? !

Do they tell their friends and colleagues about you? !

How do you make money?

Focus on value before growth

Value metrics

Aqcusition !

Activation !

Retention !

Referral !

Revenue

How do users find you? !

Is their first experience with you great? !

Do they come back? !

Do they tell their friends and colleagues about you? !

How do you make money?

Excercise

Please, have an increased focus on the solution and these metrics in future interviews !

• How do we deliver a great experience for the customer?

• How do we make sure they want to come back?

• How much do they want to pay?

Towards product/market fit and thoughts about scaling

From service need to scalable business

PROBLEM/SOLUTION FIT

High-touch,

Market risk,

Qualitiative

100 users

10 customers

1000 users

100 customers

10.000 users

1000 customers

100.000 users

10.000 customers

PRODUCT/MARKET FIT

Self-serve,

Tech risk,

Quantitative

PHASE 1

PHASE 2

PHASE 3

PHASE 4

TIME

GROWTH

This model is inspired by and adapted from Ash Maurya’s 10x Product Launch Plan

FOCUS

Scaling• Launch a “teaser” site with sign-up and start building e-mail list

early • Use your 10 early adopters to help find the next batch of

customers • Supplement the rest by setting up more interviews using your

email list • Collect customer testimonials / case-studies • Start building a marketing website • Test early channels for user acquisition

1000 users

100 customers

DESIGN OF WIREFRAMESDEFINE MINIMAL VIABLE PRODUCTDESIGN OF PROTOTYPES TEST OG VALIDATION

OF HYPOTHESES

ANALYSIS AND ADAPTION

Scaling

10.000 users

1000 customers

• Use your marketing website to sign-up users • Use your learning to define multiple pricing plans • Manage the full user lifecycle from visitor to sign-up to paid • Move towards a more automated self-service model

DEVELOP BETA & COMMERCIAL RAMP-UP VERSION

DESIGN OF SOCIALITY

EVOLVE MINIMAL VIABLE PRODUCT

DEFINE CORE-LEVERAGE AND BUSINESS CASE

DEFINE LAUNCH CRITERIA & PARTICIPATION ACTIVITIES

Scaling

100.000 users

10.000 customers

• Start tackling scaling risks • Start testing other customer acquisition channels • Optimize cost structure • Product/Market Fit means a shift from finding a plan that works

to accelerating that plan and focus on growth (e.g. new metrics)

LAUNCH EVENTS PR

ESTABLISHING PARTNERSHIPS

SCALE THE TEAM

What did you learn?

!

Thanks and goodbye !

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!Magnus ChristenssonPartner, Socialsquare

!

[email protected]

Twitter: @mchristensson

Prototyping digital business and services

Business

Transcript of Prototyping digital business and services