UX SA Conference 2015: Innovation Toolkit

AN INNOVATORS TOOLKITPhil Barrett. Associate director, Deloitte Digital Africa

DELOITTE DIGITAL: LOCAL PRESENCE/GLOBAL NETWORK

DIGITAL MARKETING

Attract, intercept, engage

DIGITAL PRODUCT

DIGITAL BUSINESS

DIGITAL OPERATIONS

Sell, deliver, service

Organise, process, supply

Innovate for new value

“DIGITAL?”

TOOLKIT?

A UTILITY BELT

Scott London

IN OUR UTILITY BELT§ Words to make innovation happen

§ Organising a place for innovation

§ Structure and process so you know where you are

§ Mapping the customer experiences

§ Ideation techniques

§ Experimentation with hypotheses

§ Prioritisation with impact maps

TOOLS PROVIDED BY…

WORDS TO START INNOVATION MOVING

DISRUPTION?

NOT SEEING DISRUPTION YET?

Digital Banking Disruptors Will Not Grab Much Market Share . . . Yet

Make no mistake, digital disruption is coming to banking, and it will reshape the industry in every country.

But new entrants and disruptors will not grab major market share from established banks in 2015. […] digital teams should use 2015 to innovate and get ahead of the curve.

Forrester

THE ERA OF EXPONENTIAL INNOVATION

Anything information-enabled starts to follow Moore’s law: doubling in power every 1-1.5 years.

And everything is becoming information enabled.

EXPONENTIALS SNEAK UP ON YOU

Sour

ce: S

ingu

larit

y U

nive

rsity

FOR EXAMPLE…THE HUMAN GENOME PROJECT

Started 1990

Target: 15 years to sequence a full human genome.

After 7 years: 1% complete.

Experts pointed out: 700 years to finish the sequencing!

ONE PERCENT MEANS HALFWAY DONE

Ray Kurzweil: “That means we’re halfway done.”

The amount sequenced was doubling every year.

The project was completed in 2001, early and under budget.

696 years earlier than expected by the experts.

EXPONENTIAL ORGANIZATIONS: CONCEPTS

MASSIVE TRANSFORMATIVE PURPOSE

TED: “Ideas worth spreading.”

Google: “Organize the world’s information.”

X Prize Foundation: “Bring about radical breakthroughs for the benefit of humanity.”

Quirky: “Make invention accessible.”

Singularity University: “Positively impact one billion people.”

Drive outward-focussed, exponential thinking.

Rally crowds, fan, teams and talent.

Machine learning Genomics

Biometrics Internet of Things

Blockchain

Robotics3D Printing

Drones

VR

Wearables Connected Cars

Mobile

Analytics

Social

Cloud

Web

Content

EXPONENTIAL TECHNOLOGIESSuper Disruptors… Exponential Disruptors…

Kodak invented the CCD: key to digital photography.

In 1981, they investigated whether this would turn photography on its head.

THE MOST DANGEROUS ASSUMPTION?

During the 1980s…

•The quality of prints from electronic images will not be generally acceptable to consumers as replacement for prints based on the science of photography

•The consumer’s desire to handle, display, and distribute prints cannot be replaced by electronic display devices.

•Electronic systems (camera and viewing input device for TV) will not be low enough in price to have widespread appeal.

KODAK WAS RIGHT* *FOR 15 YEARS

THE MOST DANGEROUS ASSUMPTION: WHAT USED TO BE TRUE, STILL IS.

PITCH: FEAR OF LOSS

PITCH: 3 OPPORTUNITIES FOR GAIN

• Operate more efficiently, to maintain margin.

• Provide an excellent, joined up, multi-channel service experience, to gain new customers and extend customer LTV.

• Create and grow new markets and products that match changing customer needs and expectations.

ORGANISING A PLACE FOR INNOVATION

INNOVATION: AN EXCUSE FOR MESSING ABOUT?

WHAT KIND OF INNOVATION ARE YOU READY FOR?

Finding worthwhile new things to do.

Finding better ways to do what we already do.

10% 10x

“Optimisation?” “Disruption?”

UBER IS JUST “IMPROVED TAXIS.” BUT THE IMPACT…!

“Scott Berkun,

The myths of innovation

All you need is the ability to make things that are good consistently, since few companies do.

DO THINGS BETTER

“A corporation is a permanent organisation designed to execute a repeatable and scalable business model.

Innovation teams and startups are temporary organisations designed to search for a repeatable and scalable business model.

Steve Blank

The godfather of lean innovation

BUT 10X INNOVATION NEEDS A DIFFERENT M.O.

“Your organisation’s world-class capabilities in brand, supply chain, distribution, sales and financial metrics are all tailored to execute the existing business model, not to help search for new ones.

The resources and capabilities optimised for execution interfere with the processes needed to search for a new business model.

Steve Blank

The godfather of lean innovation

““In large organisations, just one out of fifty managers can resist an idea—and in doing so, kill it.

By comparison, if just one of fifty investors likes a startup, it’s off to the races.”

Robert Goldberg

VC, Founder IdeaLab, Senior exec Zynga

LARGE ORGANISATIONS: “NO” MACHINES

BUT NO-ONE ELSE IS MAKING A NEW PRODUCT LIKE THAT!There’s no social proof for a real innovation. The whole point is that no-one else is doing it. if no one else is doing it, celebrate!

ENTERPRISE INNOVATION HORIZONS

EXPLORE NEW BUSINESS IDEAS

Ho

rizon 3

SCALE ACROSS THE CHASM

Ho

rizon 2

EXPLOIT

Ho

rizon 1

HORIZON 3 GETS MEASURED DIFFERENTLY

ACQUISITION

ACTIVATION

ACTIVITY/RETURN VISITS

RECOMMENDATION

REVENUE

Spells “AAARRR!” Pirate metrics!

DISRUPTION IN LARGER ORGANISATIONS• Create organisations at the edge of yours, to disrupt other markets.

• Create internal and external organisations to attack the mothership and each other.

• Create a lab for breakthrough, moonshot technologies at a budget price.

“ADVANCED: AMAZON’S INSTITUTIONAL YES

If you’re a manager at Amazon and a subordinate comes to you with a great idea, your default answer must be YES.

If you want to say no, you are required to write a two-page thesis explaining why it’s a bad idea.

In other words, Amazon has increased the friction entailed in saying no, resulting in more ideas being tested (and hence implemented) throughout the company.

Salim Ismail on an idea instituted by CEO Jeff Bezos and CTO Werner Vogels

“CASE STUDY: BBVA

Creating a truly groundbreaking, 'customer-centric,' rapid, simple and efficient model of interaction, in which the customer receives the best his bank has to offer, requires constant efforts to innovate in both the organisational and cultural arena and in the technological field.

Francisco González, BBVA CEO and chairman since 2001

BBVA’S INNOVATION APPROACH• Steering committee sets priorities and accepts applications for

funding

• Agile throughout the bank: planning and delivery.

• Build an architecture that facilitates rapid front end dev/release cycles. Strong services layer needed.

• Customer metrics and adoption for each digital innovation.

• Promote the right culture: gather ideas from everyone, deliver change with agile, empower with the right tools, link collaboration and innovation to staff incentives.

• Create robust redundancy with: Employee involvement, academic and agency ties, innovation centre, open talent incubator, hackathons, beta community, venture fund, acquisitions.

• Champion innovation with innovation centre, blogs, magazines, competitions…

INNOVATION PROCESS

IF YOU’RE BUNGEE JUMPING…

…USE A CORD!

“FOR SUCCESS, INNOVATE CUSTOMER-FIRST

You’ve gotta start with the customer experience and work backwards to the technology.

Steve Jobs

AGILE WAS NEVER SUPPOSED TO MEAN THIS

Build

Budget

Market feedback

Where do backlogs come from?

backlogs come from?

Where do

• Their own/organisational hallucination.

• Adding complexity: “And we could also…”

• Forgetting customer contact and even analytics.

DON’T LISTEN TO HIPPOS

DON’T GET MISLEAD BY CUSTOMER OPINIONS EITHER

The infamous Ford Edsel

COUNTERACT FANTASY WITH EVIDENCE

Team vision and discipline over individuals and interactions over processes and tools

Validated learning over working software over comprehensive documentation

Customer discovery over customer collaboration over contract negotiation

Initiating changeover responding to changeover following a plan

BEYOND THE AGILE MANIFESTO

— Kent beck, 2011

A LEAN INNOVATION PROCESS

Stage 1 Stage 2 Stage 3

Select the right problems to solve, and solve them elegantly.

Find the right concept, structure, workflow, incentives.

Roll out to more users, and roll out extended features.

PROBLEM/SOLUTION FIT PRODUCT MARKET FIT SCALE AND EXTENDPROBLEM DISCOVERY

Stage 0

Understand root causes and key user needs behaviours and motivations.

Human-centred design

Lean startup

Lean UX

“LEAN” ACTUALLY MEANS…• Deliver small batches quickly. Everyone can perceive

progress, cause and effect when they happen quickly.

• Eliminate waste. Don’t make or do things that will not get used in the process of delivering value to customers.

• Learn and improve. Make sure that you inspect the impact of your steps, through measurement and observation.

• Empower the team. The people close to the problem are the best positioned to understand and solve it.

• Build quality in. Focussing on quality ends up delivering results faster.

• See the whole. Considering just one part of a system in isolation will yield unpredictable results.

LEAN STARTUP

BUILD

MEASURE

LEARN

LEAN INNOVATION ACTIVITIESStage 1 Stage 2 Stage 3

Select the right problems to solve, and solve them elegantly


Roll out to more users, and roll out extended features


Stage 0

Understand root causes and key user needs behaviours and

motivations

Software: MVP experiments.

User-tests.Observe users, analyse patterns, identify problems.

Mock-ups.Technical PoCs.

Pirate metrics. User tests.

Production software releases.

Pirate metrics. User tests. Business metrics.

Measure

BuildMaps and models

LearnSolutions that are worth it. Who wants it, in what form

and how much they’ll pay.Detail: Features, forms, tweaks that work .

Problems and opportunities.

WAITING FOR FEEDBACK IS NOT ENOUGH

Feedback

Silence

No opinion Tentative opinion Strong opinion

Not using

Trying out

Casual user

Evangelist/Beta group

User

MVP EXPERIMENTS

F2F/121 • Lab test a mockup • Concierge • Wizard of Oz • Storyboard • Prototype spaces • Catalogue/data sheet/home page

Quant/online • Call to action • Ad tracking • Video and link • Split testing

IMMERSION AND OBSERVATION IS SUPER LEAN

RAPID PROTOTYPING AND USER RESEARCH: SO LEAN!

No plan survives contact with the enemy.

– Helmuth von Moltke the ElderPrussian Army Field Marshall

“

JOURNEY MAPS

Stage 2 Stage 3



PRODUCT MARKET FIT SCALE AND EXTEND

Stage 1


PROBLEM/SOLUTION FITPROBLEM DISCOVERY

Stage 0


STAGES 0 AND 1

“There are no facts inside the building. The facts exist outside the building.

Get out of the building.

Steve Blank, Customer development guru

MAP CUSTOMER JOURNEYS

4 KINDS OF JOURNEY MAPPING

Day in the life: Understand the full breadth of customer activity in your target space. Discover needs no-one is addressing. Great for innovation.

As-is customer experience: Map the current customer experiencer your organisation offers. Spot the optimisations, and maybe innovations.

Customer experience vision: Map the experience you want to offer. Great for ideation and alignment.

Service blueprint: Understand what it will take to deliver the experience you want to, with backstage people, process and technology. Great for programme management and scoping.

“DAY IN THE LIFE” JOURNEY MAPPING

The whole process, not just the parts where they touch your organisation. That opens up more opportunities for innovation.

Journey model

SafariNow User Journey V114 April 2014

Uniquesellingpoints

Unique choiceNo other OTA has this diverse

range of unique establishments

SecurityListed establishments have all

been vetted by SafariNow

Great customer serviceSafariNow is available for

assistance of any kind

Direct email contact with establishmentNo middle man

Journey stages

Search engines Google

Social media Facebook

Referrals TripAdvisor Friends Staff

Public relations TV commercials Radio

No booking feeThe end user only pays what the

establishment quotes

QuestionsWhere do I want to go?Who can I trust?Where can go to get a beach?

Why are the photos different?I am not happy now what?

Discover> Explore> Decision> Book / Pay> During Trip> Post Trip>

EvitaThe familymom

Brian & SallyThe miserlycouple

SteveThe businesstraveller

Pre Trip>Overall booking & paying:

Is this compulsory?How can I thank the establishment?How do I get my sock back?How will I remember to book here again?

QuestionsWhat do I do with this?Where do I get customers number?Do I add 15% onto my rate?How do I reply to this quote?Will the customer get it if I apply to this email?How do I block this out in calendar?Why is the customer asking for more people than I can accommodate?Where will this go?

More people have arrived than paid for?Do I have to complete my profile now?This is confusing who can help me?Do I have to list each establishment one by one?I only have hard copy photos?Do you have a photographer?Does someone come to vet the place?Can I specify race or gay etc?Now what?Can I change my login details?How do I find out my GPS location?

PatriciaConservativeB&B owner

BradLive fast, dieyoung agent

WalterKnow it all retiredbusinessman

How does it work?What will I need?How long will it take?Is it safe?Is the person coming to stay legit?Do I have to accept all quotes?

What is a live booking?How do I update rates and availability?Why doesn't it look like I thought it would?

How do I answer review?How do I contact customer that left stuff behind?How do I get someone to review me?

Uniquesellingpoints

Can pay via EFTEFT is perceived as more secure

by many end users

Verified reviewsReviews can only be posted by

past guests of an establishment

High volume of site trafficMarketing efforts and SEO give

great exposure to establishments

Money upfrontMoney in establishment bank

account often before guest arrival

Only charge confirmed guests No yearly fees, only charged 15%

commission

Dedicated support team No subscription based calendarFree calendar to manage booking

availability, or NightsBridge

Free websiteSafariNow offers establishments

a free Wordpress site

Direct email contact with guestDeal directly with guest for

quotes and book communication

SecurityProtection against fraudulent

behaviour online

Journey stages Discover> Evaluate> Register/ List> Live> Book/ Pay> Pre Trip>Decision> During Trip> Post Trip>

I can’t find email?Do I have to take printout?Will the owner be there - nice?Do they have dogs?

Search engines Google

Social media Facebook

Public relations Adverts Sales calls

Request a quote

Book now

List your establishment

Profile VettedEstablishment

page

Profile not complete

Declined

Choose anotherestablishment

I don’t wantanother booking

Refund payment if payment has been made

Review & Rate

Review

Respond to negative review

ContentDecisionLayout (understanding listing) - Rooms - Beds - BathroomsSpecial requirements - Pet friendly - Disabilities - Dietary - Halal - Are children allowed - Child friendlySpecialsFacilitiesAvailabilityEstablishment should be able to tell guests if have petsLocation - Whats in the area - How far for foodReviews/ RatingPictures (facility based pictures)Can I book right now (don’t want a quote)Vibe

Quote - End User DatesRoomsSpecial requirementsPAXContact detailsCancelation feesT&CBreakage deposit

Quote - EstablishmentGet a call how to deal with first queryActual priceAvailableName of establishmentImageLocationMessage/ answer questions - yes can bring your dogEnquiry number SafariNowCTA - Book Now/ Pay Now/ Pay EFT/ Pay CardHow to pay - method and processExplain subject to availability - NB Priority emailRemember to update your rates and availability

Register/ ListRegister - Like LinkedIn - min requirements then improveCheckbox Terms & Conditions Get an email from SafariNow to thank for applicationListing - Backend to load listing - Reminder every week until they have uploaded everythingGone live when profile complete - Email to confirm thisGet midway score to list them fairly while still starting outNew email - welcome and you have a support teamOften change of ownership - need to tick agreed again - want to start fresh or carry onEmail about what missing and login details

Explore & Gather - End UserLocation or Establishment Listing Page- Filter- Specials- Photo- Price range- Reviews- Availability- Number of people it sleeps and how- Single vs. multiple units- Location/ close to- Features (bigger - pool, braai, etc)

Room Finder- Quotes from a number of places based on requirements - Location - Number of people - Accommodation type - Vibe of establishment

Evaluate - EstablishmentWhy would I joinBenefitsCostsEffortContractual commitment - Can I use other sites as well (exclusive)Computability with other real time systemsNeed establishment to review SafariNow

LiveCan’t edit certain thingsCheck availabilityManage bookingsRecently added pageBenefits of live bookingRelevant analytics data

Post Trip - End UserReview and rate SafariNow (look at 3rd party tool)Review and rate establishmentReview locationReview restaurant and things to do

Post Trip - EstablishmentEmail of reviewCan respond if negative review

Book/ Payment - End UserCredit card (3D secure)EFT (need to work out operation in terms of holding accommodation for money to come through) Confirmation of payment You have paid - you still oweHow money works - who has been paidDetails of establishmentAvailability still to be confirmedDirectionsContact details for establishmentDatesCheck-in and check-outValue packCancelation termsT&CBreakage deposit Confirmation of booking

Book/Payment - EstablishmentEmail confirming an end user has accepted their quote and now payedNeed to secure datesSend confirmation of booking and payment receivedEmail sent quote acceptedThe establishment then receives an email to remind them the booking a couple of days before guest arrival

Pre TripValue pack

During Trip

I want to see interesting pictures.Where can I go that has hot weather right now?What has a pool?Can I imagine myself in this place?Is it safe?

Gather>Overall decision: Request a quote: Quote received:

Inspiration

Holiday type

Vibe

Distance from me

MountainForrestSea (beach)Remote

Locationdetails

List ofEstablishments

PhotosReviewsPrice rangeAvailability# people it sleeps# of beds in roomsLocationFeatures

Establishmentdetail page

Recently Viewed

( Wish list )

Quote received

Quote needed

Book now

Submit quote

Ignore quote

View other EST…

CostBenefitsContractCommitmentWill it work with what I have got?What will I need

Reviews

Who will give me the right price?I am going to Langebaan where can I stay?Distance?Where can I go this weekend?Where can I get a good deal?What accommodation specials are available?

What are the benefits to using SafariNow?What is available in my area?Is there wifi?

Where can I go to be near a river?What is available two hours drive from me?What is like Montagu?What is happening in Ballito?What can I afford?Who can give me the best price?What do other people think?

How does it look?Which one looks the nicest?What is the view like?Does it give me food?Can my kids be entertained while I chill with my man?Can I take my dog?Can I take my children?Which one looks the nicest?How long will this take?

Is it the price right?Is it near the beach?What are people saying about this place?Recent reviews?Is the person reviewing like me?Why can I not see a price?Can I get it cheeper direct?

Does it have wifi?Can I book right now?Is this place real?How quickly will they get back to me?

How do I know what my room preference is?Do I have to select a room?Who is this quote going to?

Why must I enter my contact details?I just want to know availability?

Where is my quote - not immediate?Why should I book with SafariNow?

What do I do now?How do I pay?Have they answered all my questions?I do not understand the quote?What does the total mean?

Why is this different to online?What does it include?Why have you not answered my questions?Is this the actual price?What room am I getting?How does this compare to other quotes?

What currency is this quote in?What is the deposit?

How do I know this is still happening?Who do I contact if nobody is there?Can I come home late after partying?Will the disability service really be there?

Will there be someone there when I am there?Who do I contact if nobody is there?

Is my card safe?When is the rest of my payment due?Why I am giving my card detail if I am not guaranteed booking?How can I trust this?

Is my booking confirmed?Why did you take my money if there is no space?How do I know this is legit?How else can I pay?

Why is my booking not confirmed?Is my booking secure?

NOT AVAILABLEWho is going to pay the difference?Who will cover my cost?When will I get my money back?How quickly will someone get back to me?

CONFIRMATIONI thought it was booked already?It has been 2hrs why haven’t I heard?It is the weekend, now what?Can I cancel my booking - how, how much?Where do I get the keys?Who do I speak to when I get there?Are the time for check-in exact?I need to amend my booking - how?How do I get there?Do I need a 4x4?Can I add another day?Can I order dinner?What is included?

Why is this on your website it is so crap?They have nothing that they said they would?Why are the prices more here?

Why are none of the facilities I need here? I cannot work from here.

Why are you asking me this?Is this anonymous?

Can I unsubscribe?I want my money back?

Will it work with my systems?How much does it cost?

How long will it take?What do other establishments think?Are they reputable?How will I get paid?

Why do I need to do this?Do you really need all the info?What do you want photos of - establishment and specifics (rooms)?Why can I not see my page now?Why do you not offer sliding scale?

Why can I not just list right away?Why do you require municipal documents?Do I have to complete my profile now?How long is this going to take?Can somebody else do this for me?Can you post the photos for me?Can I upload a photo from my phone?Why can I not see my page now?

Other: I haven’t put my establishment up why is it on your site ?

Why should I update rates and availability?Why doesn't it look like I thought it would?Can somebody else update my rates and availability for me?Why is this so time consuming?

Why doesn't it look like I thought it would?Why can’t I edit my description?Why have you changed my description?Why is that photo first?

How much are they going to charge me?Will the customer get it if I apply to this email?Why am I getting an enquiry for dates that are already booked?Why can I not contact customer directly?Why does my number not appear?Can I give a discount?Who am I sending it to?I don’t have availability at this listing but I do at another?I can recommend a place for you?

When am I getting my money?Please stop smsing me.Do you block this out in my calendar?Why should I reply to a quote that I am not accepting?

Other:I am listed on SafariNow?I don’t own this anymore how do I cancel it?

What happens if they don’t arrive?How do I kick them out - they are trashing the place?

These people are unhappy and I don’t agree with them?

I don’t agree with negative review?How do I get my breakage deposit back?

How do a review guests?How do I black list guests?Do I have to go through you to keep them a loyal customer?Why should i get someone to book through SafariNow again?

How do I put this booking in my calendar?Help, what do I do with this booking now?Can I see who is coming to stay?

Why is the money not in my account yet?Why is there a middle man?Why am I getting so many emails and sms’s?

Will the money go straight to my account?15% is really high!Why are you sending this to me I am fully booked?

What time are they arriving?How do I contact them to find out dietary requirements?I have dogs, should I tell them?

My guests are arriving tomorrow and I have not received the money in my account?Can they collect the keys from you, I am not going to be around?

Where can I get some background information on my guests?I have double booked how do I cancel the one booking?

Accept quote

Credit card / EFT Payment

Confirmation of payment

Room booked and paid for

Confirmation of booking

Successful booking. Payment taken off if

not done so.

Update calendar

Value pack

Decline Quote

Decline

Book nowConfirmation of

capture

You have a booking!

Accept / Reject

Pseudo real time

Real time

Credit card Capture / EFT

payment

Unsuccessful booking tell us why

(Eg: fully booked)Offer something else?

Ignore quote

Send message Query

Editorial PicturesReviews

List of locations

End

user

sEs

tabl

ishm

ent

Man

ager

s/O

wne

rs

End user

Establishment

1

2

3

4 6

7

7

8

9

5

10 11 12

13 14

a

ba c

VISION + PERSONAS + ECOSYSTEM

JOBS TO BE DONE

A customer job could be:

• The tasks they are trying to perform and complete,

• The problems they are trying to solve,

• Or the needs they are trying to satisfy.

Lift my right finger

Become a fully-self-actualised human being

What is the job that a customer is hiring your product to do?

PAINS

Lower-than-expected benefit. “The food was cold when it finally reached us.”

Lower-than-expected easiness. “I can’t get the necessary documents.”

Emotional: “Running at the gym makes me feel so bored.”

Social: “It’s embarrassing to have to ask for directions.”

Negative expectations. “I won’t run it because it will probably mess up my hard drive.”

Things that annoy your customers - and might stop them from taking action.

Benefit - effort - social - emotional - financial.

GAINS

Expected and required. “I can make a call on my smartphone.”

Desired. “I wish all my devices would work together seamlessly.”

Unexpected. “I didn’t ever think a touchscreen smart phone linked to an app store could exist.”

Social. “People would respect me if I drove a BMW.”

Emotional. “I will be happy when I have a puppy to love.”

Benefit - effort - social - emotional - financial.

A GREAT CUSTOMER EXPERIENCE DELIVERS ON THREE LEVELS

Basic expectations Perform its primary function elegantly, completely and consistently

Power and performanceDeliver new value through new tools & systems

Beauty and enchantmentEnchant customers with beauty, thoughtfulness and care

AKA the Kano Model

We feel first, and our thinking is defined by what we feel.

Stylish products and environments are perceived to be:

• More valuable, even when they fail

• More trustworthy and credible

• Easier to use

ENCHANTMENT MAKES PEOPLE ENGAGE BETTER

BUT DEEP DELIGHT COMES FROM FUNCTIONthan expected

EASINESS MORE

than expectedEASINESS LESS

than expected

BENEFIT MOREthan expected

BENEFIT LESS

Surprise, delightLoyalty

Disappointment, anger, Churn

BJ Fogg’s diamond of user delight

Satisfaction Meets expectations

IDEATION

PROBLEM DISCOVERY

Stage 0


Stage 2 Stage 3



PRODUCT MARKET FIT SCALE AND EXTEND

Stage 1


PROBLEM/SOLUTION FIT

STAGE 1

IDEATION IS A THING. WITH A LONG HISTORY.

Aristotle Guildford Osborn ParnesChamberlin

Dialogue Multiple working hypotheses

Divergent thinking

Brainstorming How might we?

TWO DISTINCT PHASES OF DESIGN

Divergent thinking Convergent thinking

6 UP (OR CRAZY 8S): HAVE LOTS OF IDEASDivergent thinking tactic 1

REMOVE BOUNDARIES AND BLOCKAGESDivergent thinking tactic 2

EXTERNALISE THINKING Remove boundaries and blockages

PRESUME VALUE, EVEN WHEN IT’S NOT OBVIOUSRemove boundaries and blockages

BUILD INSTEAD OF BLOCKRemove boundaries and blockages

PROVOCATION AND STIMULI Divergent thinking tactic 3

Automatic Manual

People Numbers

Money Outcomes

Visuals Numbers

Avoid pain Attain goal

Choice Simple

Social Private

“HIT” HEURISTIC IDEATION TECHNIQUE

Dimension 2 value Dimension 2 value Dimension 2 value

Dimension 1 Value “How might we…?” “How might we…?” “How might we…?”




Edward Tauber’s HIT technique, 1972

Explore idea space systematically.

Stimulate ideation through strange combinations.

6-5-3 / 3-12-3 / X-Y-ZTake time to frame the problems, assemble stimulus.

Time to sketch problems alone.

And time to present iterate problems.

Machine learning Predictive analytics

Biometrics Mobile

3D printing Cloud

Genomics Sensors

Blockchain iBeacon

Augmented reality

Wearable

Confidence Personal

Relationship Transparency

Tedium Self service

Timing Efficiency

Delight Trust

Visualised Free

SOME STIMULI TO CROSS

DEMATERIALISATION

Taxi Fleet

Research Libraries Classifieds

Book Stores Long Distance

Hotel Chains

DEMONETISATION

Your business is shown to drivers approaching.

You decide how much you’re willing to pay for each view as well as your total monthly spend.

It’s super simple to set up and see results.

makes games available for freeCandy Crush generates daily revenues of ~$979 000

Source: Singularity University

DEMOCRATISATION

3D Printing will democratise the ability to distribute personalised production around the planet

Leveraging individuals inputs to build and influence other institutions’ potential success

Your turn:

Ideate 1: Set up the challenge

Start alone.

Pick a pain or a gain to tackle (could be a theme or group of related ones.)

Pick two “easy/appealing” stim words: one from blue and one from purple. Then pick two “unpleasant/difficult” stim words.

Make a grid. Then stop.

Machine learning Predictive analytics

Biometrics Mobile

3D printing Cloud

Genomics Sensors

Blockchain iBeacon

Augmented reality Wearable

Crowd

Dematerialisation

Confidence Personal

Relationship Transparency

Tedium Self service

Timing Efficiency

Delight Trust

Visualised “Free”

Your turn:

Ideate 2: Ideate and iterate

Design as many ideas for your grid as you can in 10 minutes. If stuck, try another square. “How might we…?”

Pick a partner and share you ideas.

Work together for 2 minutes to add new ideas for person 1.

Work together for 2 minutes to add new ideas for person 2.

SLEEP ON IT

James Young, Advertising Man of the year 1946

PRIORITISATION

“HIM AGAIN

Real artists ship.

Steve Jobs

Stage 1



Stage 0


STAGES 2 & 3

Stage 3


SCALE AND EXTEND

Stage 2


PRODUCT MARKET FIT

TWO DISTINCT PHASES OF DESIGN

Divergent thinking Convergent thinking

IMPACT MAPS

There is often a set of assumptions that are hidden in the instruction “thou shalt build this particular feature”.

Impact mapping is a great tool for understanding the value of delivering a particular piece of software.

Gojko Adzic

PRIORITISE FEATURE IDEAS WITH IMPACT MAPS

Goal

How

How

How

Who

How

What

What

What

PRIORITISE Use social proof stats and stories to drive action

Make calculator easier to understand

Add a video

More customers

choose to invest with us

More customers complete purchase

Customers choose to invest

more

Customers disinvest less

First time investors

R100m

of customer money invested

QUICKLY SORT TOUGH DECISIONS?

EXPERIMENTS

In the lab… • Find this. • Achieve that without help. • Explain that correctly, as if to a friend. But NOT “would you use this?”

DON'T TRY TO MEASURE MENTAL STATE


Stage 0


STAGES 2 AND 3

Stage 2


PRODUCT MARKET FIT

Stage 1


Stage 3


SCALE AND EXTEND

MVP MVP EXPERIMENT

Stage 1 Stage 2 Stage 3


Stage 0

MVP Experiment MVP

TURN IDEAS INTO HYPOTHESES ABOUT OUTCOMES

We believe that building this feature for these people will achieve this outcome.

We will know this is true when we see this quantitative measure AND this qualitative response.

We believe that

building A SOCIAL PROOF PANEL

for NEW, inexperienced investors

will achieve An increase in customer acquisition

from the landing pages.

We will know this is true when we see A 20%

increase in people starting and finishing signup

during the sprint after release AND 50% of users

show A positive response in the user testing.

AMAZON.COM >60% FAIL

AVOID VANITY METRICS

Weeks

Increasing numbers of visitors, counted cumulatively

Awesome, right?

COHORT ANALYSIS

0%

25%

50%

75%

100%

1 2 3 4 5 6 7

Go for trialRegisterTry onceTry 5 timesPay

Weeks

107

MEASURE CUSTOMER OUTCOMES

Raw data that tells you the scale of your operation.

The proportion of your visitors achieving the goals you want to enable.

Move slowly. Measure products that have reached scale.

Customer outcome metrics

Scale metrics

Business metrics

Registration rate Transactions per month

Visits per month Conversion rate

Referrals rate

Pages viewed Sales completed

Profit Revenue

Market share

SET A FAIL CONDITION“…We will know we are right when we see a 50% conversion rate.”

What if you saw 49%? 45%? 30%?

Set a fail condition: “…We will know we are wrong when we see conversion <50%…”

A fail condition is less easy to quibble with.

“FAIL FAST AND PIVOT”

Fail? We’re not allowed to do that!

Fail means two different things.

Horizon 1 failure: Failure to correctly execute a prescribed business process. Bad.

Horizon 3 failure: Proving that customers don’t want a certain thing, is a successful experimental result. Good.

MAKE THE LEARNING AND VELOCITY CLEAR FOR YOUR STAKEHOLDERS• Show vivid evidence

• Count the number of experiments conducted

• Show the list of what you’ve learned

• Identify and envision competitive opportunities

• Show hard numbers

…and the funding will keep coming.

www.kalahari.netGoal Funnel Feb 1, 2011 - Feb 28, 2011

Comparing to: Site

Checkout35,472 visitors finished | 53.18% funnel conversion rate

64,120/checkout/pipeline/signin.aspx?Retur 23,282/checkout/pipeline/signin.aspx?Retur 6,604/default.aspx 6,069/checkout/pipeline/newsletter_edit.as 5,390/page_templates/searchresults.aspx? 2,879

Basket64,120

47,550 (74%)proceeded to Vouchers

16,570(exit) 3,531/default.aspx 2,160/checkout/pipeline/xpress_basket.asp 1,149/page_templates/searchresults.aspx? 856/checkout/pipeline/xpress_basket.asp 656

252(entrance) 82/checkout/pipeline/signin.aspx?Retur 48/checkout/pipeline/signin.aspx?Retur 41/checkout/pipeline/xpress_payment_ 16/checkout/pipeline/xpress_basket_mu 7

Vouchers47,802

45,685 (96%)proceeded to Payment

2,117(exit) 805/checkout/pipeline/xpress_basket.asp 485/default.aspx 268/checkout/help/help.aspx 88/checkout/pipeline/xpress_vouchers.a 55

268/checkout/pipeline/signin.aspx?Retur 118(entrance) 58/checkout/pipeline/xpress_payment_ 40/checkout/pipeline/signin.aspx?Retur 9/default.aspx 4

Payment45,953

33,409 (73%)proceeded to Checkout

12,544(exit) 1,797/checkout/pipeline/xpress_basket.asp 1,274/checkout/pipeline/xpress_vouchers.a 807/default.aspx 576/checkout/help/help.aspx 506

2,063/checkout/pipeline/xpress_payment_ 1,546(entrance) 388/checkout/help/help.aspx 21/checkout/pipeline/xpress_vouchers_ 11/checkout/help/payjar.aspx 11

Checkout35,472

53.18% funnel conversion rate

1 Google Analytics

HOLY INNOVATION, BATMAN!• Exponentials

• Horizons

• Lean product process

• Jobs, pains and gains

• Ideation matrix

• Impact maps

• Hypotheses

“Tim Brown, IDEO

INNOVATION = COMPETITIVE ADVANTAGE

In today's fluid business environment, innovation has become nothing less than a survival strategy.

[email protected]

UX SA Conference 2015: Innovation Toolkit

Design

Transcript of UX SA Conference 2015: Innovation Toolkit