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Running a

Successful
Accelerator
Ideas &
Practices

COWAN+
Copyright 2014 Cowan Publishing

ABOUT ME

Entrepreneur (5x)
Intrapreneur (1x)
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

ABOUT ME

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

ABOUT ME

www.alexandercowan.com
Copyright 2014 Cowan Publishing

PROCESS

PROGRAMMING

TWO PILLARS OF ACCELERATOR SUCCESS

Copyright 2014 Cowan Publishing

PROGRAMMMING

Copyright 2014 Cowan Publishing

ITS A PROCESS

Some techniques are more effective than others.

Personas

But they all require substantial, consistent exertion.


Copyright 2014 Cowan Publishing

SCALE-FRIENDLY VS. INNOVATION-FRIENDLY


Scale
Friendly

Innovation
Friendly

!?

Copyright 2014 COWAN+

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS (IN REVERSE)


Do we
understand this
person? What
makes them
tick?

THINK

SEE

FEEL

DO

PERSONAS

Is problem
relevant? Is the
proposition
better vs.
alternatives?

Was the
How did the
implemented
customer/user
story relevant to react?
the proposition?

Did the implementation


deliver on the story?

PROBLEM
VALUE
USER
CUSTOMER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Who?

THINK

FEEL

SEE

DO

PERSONAS

What?

What if?

PROBLEM
VALUE
SCENARIOS &
PROPOSITIONS
ALTERNATIVES
Copyright 2014 Cowan Publishing

WHY IS DESIGN THINKING HARD?

Then

Now

Survival

Design Thinking

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING

Empathy

Creativity
Copyright 2014 Cowan Publishing

02 DIAGNOSING USER NEEDS & PROBLEMS

The twin anti-poles of design failure


S

Doing precisely
what the user asks

P
A
N

Assuming you know whats


best and ignoring the user

Copyright 2014 Cowan Publishing

DESIGN THINKING- APPLICATIONS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING- APPLICATIONS

Empathy

Entry

Urinate as they go

Edges preferred

Speedy

PB > cheese

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING- APPLICATIONS


Check & Repair

UV Validation

Relevant Placement

A Better Mouse Trap

Powered by Better Bait

Creativity

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING- PERSONAS

Personas

Problem Scenarios
Alternatives
Your Value Propositions

Foundation in
Design Thinking

Copyright 2014 Cowan Publishing

DESIGN THINKING- PERSONAS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DESIGN THINKING- PERSONAS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

NOT A GOOD PERSONA

Women
Age 28-45
Has kids
Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use an
application that organizes them
Copyright 2014 Cowan Publishing

NOT A GOOD PERSONA


This is a huge
population- not exact

These responses are fake


actionable- survey responses
like this are unreliable

Women
points are almost
Age 28-45 Bullet
never vivid or detailed
Has kids
Socialize with other moms
Online with Facebook
86% said theyd like to be more
organized
70% said theyd use an
application that organizes them

Stock photo- not real


Copyright 2014 Cowan Publishing

THE ART OF CUSTOMER DISCOVERY

Copyright 2014 Cowan Publishing

A BETTER PERSONA

Mary the Mom


Mary is a mom by choice. She had a successful career in accounting,
but welcomed the opportunity to be a stay at home mom. She loves it.
But its not like having kids purged her creative, social instincts. She
wants to connect, she wants to learn, she wants to interact. Being a
mom is a job and she wants to do it well. That means corresponding
with other moms on child education and keeping track of what works.
She posts to Facebook at least twice a week and responds to other
moms items more often than that.
She has a few blogs and publications she reads regularly

Copyright 2014 Cowan Publishing

A BETTER PERSONA
the use of a first name helps
w/ vividness (a little)

Mary the Mom


Mary is a mom by choice. She had a successful career in accounting,
but welcomed the opportunity to be a stay at home mom. She loves it.

these full sentences look like a


good start towards something
vivid and detailed

But its not like having kids purged her creative, social instincts. She
wants to connect, she wants to learn, she wants to interact. Being a
mom is a job and she wants to do it well. That means corresponding
with other moms on child education and keeping track of what works.
She posts to Facebook at least twice a week and responds to other
moms items more often than that.

this is a real photo of a


relevant person taken with an
iPhone in the real world

She has a few blogs and publications she reads regularly

Copyright 2014 Cowan Publishing

V ivid

A
R
I
E
D

The persona
should make
anyone who reads
it feel like theyve
actually met this
person.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

V ivid

A ctionable
R
I
E
D

If the persona
doesnt inform
how you sell stuff
and build stuff,
why bother?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

V ivid

A ctionable
R eal

I
E
D

Good personas
arent created in
cubicles. Go
where the persona
is and observe.
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

V ivid

A ctionable
R eal

I dentifiable
E
D

Make sure you


can identify and
target these
personas, or you
wont be able to
find a use for
them.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

V ivid

A ctionable
R eal

I dentifiable
Exact
D

Everyone is not
your customer.
Make sure the
personas are
distinct so you can
apply relevant
focus.
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

V ivid

A ctionable
R eal

I dentifiable
Exact
D etailed

People are
complicated and
so good personas
are usually pretty
substantial.
Copyright 2014 Cowan Publishing

A LITTLE GAME FOR BETTER PERSONA DISCOVERY

Day in the Life


we look at a few photos for a given persona
(not a full picture, just snippets)
you make some guesses about them
there are no right answers BUT
there is a right process: observe and infer
OBJECTIVE: get a feel for whats real; start to create something vivid

Copyright 2014 Cowan Publishing

SVEN THE SALESPERSON: A DAY IN THE LIFE

Copyright 2014 Cowan Publishing

WAKE UP!

** create fake
email account,
fake email to them

Copyright 2014 Cowan Publishing

WAKE UP!

Copyright 2014 Cowan Publishing

ON THE JOB

Copyright 2014 Cowan Publishing

LUNCH BREAK

Copyright 2014 Cowan Publishing

FINISHING UP

Copyright 2014 Cowan Publishing

ON THE ROAD

Copyright 2014 Cowan Publishing

UNWINDING AFTER WORK

Copyright 2014 Cowan Publishing

DINNER

Copyright 2014 Cowan Publishing

WINDING DOWN & BED

Copyright 2014 Cowan Publishing

ABOUT SVEN THE SALESPERSON


Whats his favorite kind of music?
What do you think he looks at to set his agenda
for the next day?
What movie did he last see?
How much do you think he uses his PC vs. his
mobile? Which in which situations?
If he had a dog, what kind?
What one change on the way he uses
Salesforce would most change his life for the
better?

Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: THINK-SEE-FEEL-DO

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO
What job(s) are you doing for
the customer?
What existing need or
behavior are you fulfilling?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

?
ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

If they currently use


spreadsheets, watch them
use it and get a copy of it.
If they currently put notes on the
family fridge, ask about it,
photograph it.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS


Hiring technical talent is difficult.
(Too Broad, Abstract)

Screening technical talent is difficult.


(Probably About Right)

Its difficult for the HR manager to get their screening


notes to the functional manger.
(Too Detailed, A Feature vs. a Product/Venture)
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

YOUR VALUE PROPOSITIONS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

DISCOVERY & LEARNING: PROBLEM SCENARIOS

PROBLEM SCENARIO

ALTERNATIVE(S)

YOUR VALUE PROPOSITIONS


Are they better enough than the
alternative(s)?

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

AND NOW THE PRODUCT HYPOTHESIS


A certain PERSONA exists
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 alternatives to cause the
persona to act (purchase, use, etc.).

!
Copyright 2014 Cowan Publishing

DOUBLE DIAMOND MODEL OF DESIGN


Finding the Right
SOLUTION

alternatives

Finding the Right


PROBLEM

divergence

convergence

divergence

time

convergence

source: adapted from The Design of Everyday Things


Copyright 2014 Cowan Publishing

THE BUSINESS MODEL CANVAS


(Key
Partners)

(Key
Activities)

(Key
Resources)

(Cost Structure)

(Value
(Customer
Propositions) Relationships)

(Customer
Segments)

(Channels)

(Revenue Streams)

The templates here are made available on the same CC license terms as the original canvas.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

SEGMENT TO VALUE PROPOSITION MAPPING


Partner_1
Partner_2
Partner_3

Activity_1
Activity_2
Activity_3

Proposition_1
Proposition_2
Proposition_3

Relationship_1
Relationship_2
Relationship_3

Resource_1
Resource_2
Resource_3

Cost_1
Cost_2
Cost_3

The templates here are made available on the same CC license terms as the original canvas.

Segment_1
Segment_2
Segment_3

Channel_1
Channel_2
Channel_3

Revenue_1
Revenue_2
Revenue_3

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://
creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

STORYBOARDING A PROBLEM SCENARIO

Trigger?
Before
+
How does the
After
problem scenario
initiate?

Action?
How is the
alternative
executed?

Reward?
How well is the
persona gratified?

Copyright 2014 Cowan Publishing

STORYBOARDING A PROBLEM SCENARIO


BEFORE

BEFORE
(using the
Alternative)
AFTER

AFTER
(with the Value
Proposition)

Copyright 2014 Cowan Publishing

DESIGN THINKING- USING PERSONAS

MAKING
STUFF

What does the


user (most) want?

SELLING
STUFF

What does the


user actually do?

Who are we
selling to?

Whos buying?

Where do we
reach them?

Where?

With what
proposition?

Personas

Problem Scenarios
Alternatives
Your Value Propositions

Why?

Foundation in
Design Thinking
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

What if?

Tell me?

ASSUMPTIONS

CUSTOMER
DISCOVERY &
EXPERIMENTS
Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


Do I have real evidence from my buyer
that this is compelling?

01 IDEA!

What are the key assumptions required


to make this business work?

02 HYPOTHESIS

How do I definitely prove or disprove the


assumptions with a minimum of time
and effort?
Am I reacting or am I focused on
validating my pivotal assumptions?
Pivot or persevere?

6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


01 IDEA!

What are the key assumptions required


to make this business work?
How do I definitely prove or disprove the
assumptions with a minimum of time
and effort?

02 HYPOTHESIS
6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

ASSUMPTIONS: ORGANIZED AND PRIORITIZED


Priority

Key Assumption

Needs Proving?

Experimentation

[A key assumption about the [Whether it needs


proving
business]

[Experiment to
prove or disprove]

Hiring managers would


prefer a lightweight quiz app
Yes
over calling references and
ad hoc probing.

* Customer interviews on problem


scenario
* Value testing through minimum
viable product

Managers want to be able to


Yes
add their questions as well

* Show prototypes with choices


* Test in beta

Parents have smart phones

n/a

No

Focus on pivotal
assumptions

Copyright 2014 Cowan Publishing

FOCUS AND THE LEAN STARTUP

Crossing ts
Dotting is
Doesnt matter unless it
helps prove (or disprove)
your pivotal assumptions
Copyright 2014 Cowan Publishing

FOCUS AND THE LEAN STARTUP

Subject
all your
activities +
metrics to
that litmus
test.
Copyright 2014 Cowan Publishing

5 TYPES OF INNOVATION HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

CUSTOMER CREATION
HYPOTHESIS

USABILITY
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PERSONA HYPOTHESIS

PERSONA
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PERSONA HYPOTHESIS- CHECKLIST


Hypothesis

Experiment

This persona exists (in non-trivial


numbers) and you can identify them.

- Can

You understand this persona well.

- What

you think of 5-10 examples?


you set up discovery interviews with them?
- Can you connect with them in the market at large?
- Can

kind of shoes do they wear?


you hearing, seeing the same things across your discovery
interviews?

- Are

Do you understand what they Think in


your area of interest?

- What

Do you understand what they See in


your area of interest?

- Where

How do they Feel about your area of


interest?

- What

Do you understand what they Do in your


area of interest?

- What

do you they mention as important? Difficult? Rewarding?


- Do they see the work (or habit) as you do?
- What would they like to do better? To be better?
do they get their information? Peers? Publications?
- How do they decide whats OK? Whats aspirational?
are their triggers for this area? Motivations?
- What rewards do they seek? How do they view past actions?
do you actually observe them doing?
- How can you directly or indirectly validate thats what they do?

Copyright 2014 Cowan Publishing

EARLY MARKET VS. LATER MARKET

Copyright 2014 Cowan Publishing

EARLY MARKET VS. LATER MARKET

Copyright 2014 Cowan Publishing

5 TYPES OF INNOVATION HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

CUSTOMER CREATION
HYPOTHESIS

USABILITY
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PROBLEM HYPOTHESIS

PROBLEM
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

PROBLEM HYPOTHESIS- CHECKLIST


Hypothesis

Experiment

Youve identified at least one discrete


problem (job, desire, etc.)

- Can

The problem is important

- Do

You understand current alternatives

- Have

you describe it in a sentence? Do others get it?


- Can you identify current alternatives?
subjects mention it unprompted in discovery interviews?
- Do they respond to solicitation (see also value and customer creation
hypotheses)?
you seen them in action?
- Do you have artifacts (spreadsheets, photos, posts, notes, whiteboard
scribbles, screen shots)?

Copyright 2014 Cowan Publishing

KEYS TO FINDING SUBJECTS


Avoid subjects that are easy but less/not relevant.
1) Have a screener with factual questions
2) Avoid direct to user sources for professional subjects (theyre far less likely to
be representative

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


Do I have real evidence from my buyer
that this is compelling?

01 IDEA!

What are the key assumptions required


to make this business work?

02 HYPOTHESIS

How do I definitely prove or disprove the


assumptions with a minimum of time
and effort?
Am I reacting or am I focused on
validating my pivotal assumptions?
Pivot or persevere?

6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

04 EXPERIMENTATION

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

EVIDENCE-BASED INNOVATION VIA LEAN STARTUP


01 IDEA!

02 HYPOTHESIS
6.a YES
results
disprove
hypothesis

03 EXPERIMENTAL DESIGN

Am I reacting or am I focused on
validating my pivotal assumptions?

04 EXPERIMENTATION

Pivot or persevere?

05 REVISE?

6.b NO
we appear to
have a valid
hypothesis

Copyright 2014 Cowan Publishing

5 TYPES OF INNOVATION HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

CUSTOMER CREATION
HYPOTHESIS

USABILITY
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

VALUE HYPOTHESIS

VALUE
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

V
P

What is the fastest,


cheapest way to
validate or
invalidate this
option so we give
ourselves more
options on future
success?
Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Will it give us a
definitive result?
What are the
actionable metrics?

Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Product

Does it really
require actual
product? Can we
use alternative
brands, channels?

Copyright 2014 Cowan Publishing

TESTING YOUR HYPOTHESIS VIA MVP

Minimum

Viable

Product

is not necessarily actual software/product


(see concierge MVP)
is a first and foremost learning vehicle
vs. a project plan
vs. a product development project
(OK to do those things but always
subordinate them to the learning mission)

Copyright 2014 Cowan Publishing

CASE STUDY: DROPBOX


OPPORTUNITY
Underlying demand and supporting
infrastructure ready for a great file sharing
app.
CHALLENGE
Building a great cross-platform app.
required VC funding. VCs saw a space
with lots of existing competitors struggling
to get traction.

Copyright 2014 Cowan Publishing

CASE STUDY: DROPBOX


Persona

Tom the Techie- early adopter who works on projects that require swapping a lot of files between a
shifting network of collaborators.

Problem
Scenario

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

Alternatives

Many existing products, but none of them super compelling and widely adopted.
Also, custom setups which work but are cumbersome to set up and maintain.

Value Prop.

A file sharing service that truly feels transparent to the user across all major platforms- OSX, iOS,
Windows, etc.

What Minimum Viable Product (MVP)?


That you can bootstrap?
That doesnt require software at all?
Copyright 2014 Cowan Publishing

THE WIZARD OF OZ MVP


Created a synthetic demo
tailored for early market
(techies), promoted it, and
measured email sign-ups.
Result: Excellent traction and
conversion to sign-ups.
Strong validation signal.
Copyright 2014 Cowan Publishing

EXAMPLE: ENABLE QUIZ


OPPORTUNITY
Hiring quality technical talent is critical for
many companies, but screening for skill
sets is time consuming and awkward.
CHALLENGE
The founding team wants to bootstrap
without external funding so they need to
focus on a specific technical domain, one
that will get them strong early traction.

Copyright 2014 Cowan Publishing

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

Problem
Scenario

Helen: hard to screen for technical skills


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

Alternatives

Helen: 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 Minimum Viable Product (MVP) for deciding on the right first topics?
That you can bootstrap?
That doesnt require software at all?
Copyright 2014 Cowan Publishing

THE PRE-SALES MVP


Ran Google AdWord
campaigns across top ranking
technical topics, measuring
click through rate and landing
page sign-ups.
Target Outcome: Informed
selection of starter topics (and
baseline on initial conversions).
Copyright 2014 Cowan Publishing

CASE STUDY: LEONID SYSTEMS


OPPORTUNITY
Major disruption and new product
opportunities among telecom providers
with introduction of voice-over-IP and cloud
communications.
IT systems need to be rethought.
CHALLENGE
As a one-person startup, Leonid had
actionable ideas but not enough resources
to execute an end-to-end solution.
Copyright 2014 Cowan Publishing

CASE STUDY: LEONID SYSTEMS


Persona

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

Problem
Scenario

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

Alternatives

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

Value Prop.

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

What Minimum Viable Product (MVP)?


That you can bootstrap?
That doesnt require software at all?
Copyright 2014 Cowan Publishing

LEONID MVPs: FROM CONSULTING TO PRODUCT


CONSULTING

Started with consulting as a


concierge vehicle to create
tactical solutions, evolving to
full-fledged product.

PRODUCTIZED
CONSULTING

PRODUCTS

Result: Steady step-wise


growth with consistently better
understanding of key customer
problem scenarios.
Copyright 2014 Cowan Publishing

CASE STUDY: ZAPPOS


OPPORTUNITY
An observed problem scenario around the
difficulty of finding the right shoe at local
retail and a giant (but nascent) market in
online retail (1999).
CHALLENGE
Consumers still in the early stages of
adopting and habituating to online retail.
Founder (Nick Swinmurn) wanted to
bootstrap.

Copyright 2014 Cowan Publishing

CASE STUDY: ZAPPOS


Persona

Sam the shoe-hound- knows what he wants but not where to get it.

Problem
Scenario

Sam is unable to find the shoe he wants at local retailers, wasting time and getting frustrated.

Alternatives

Possibly mail order or wait until hes in a bigger market to go to the store.

Value Prop.

Make the shoe Sam wants accessible online and make sure he has a great experience so hell come
back and not have to think about where to find the shoe he wants anymore.

What Minimum Viable Product (MVP)?


That you can bootstrap?
That doesnt require software at all?
Copyright 2014 Cowan Publishing

CASE STUDY: ZAPPOS


Photographed shoes and put
them online to observe
whether anyone bought them.
Result: It worked and the rest
is history.

Copyright 2014 Cowan Publishing

ABOUT MVPS AND PRODUCTS IN GENERAL


You have to put the magic in
the software.
(Not the other way around)
Concierge and other nonsoftware MVPs can be pretty
magical.
Find 100 people that are really
into it and you can probably
grow.

Copyright 2014 Cowan Publishing

5 TYPES OF INNOVATION HYPOTHESES

PERSONA
HYPOTHESIS

PROBLEM
HYPOTHESIS

VALUE
HYPOTHESIS

CUSTOMER CREATION
HYPOTHESIS

USABILITY
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

USABILITY HYPOTHESIS

USABILITY
HYPOTHESIS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

Scale?
Who?

THINK

FEEL

SEE

DO

What?

What if?

Tell me?

How?

/
Pivot?

PERSONAS

PROBLEM
VALUE
CUSTOMER
USER
PRODUCT &
SCENARIOS &
PROPOSITIONS DISCOVERY & STORIES &
PROMOTION
ALTERNATIVES & ASSUMPTIONS EXPERIMENTS PROTOTYPES
Copyright 2014 Cowan Publishing

THE VENTURE DESIGN PROCESS

How?

/
USER
PRODUCT &
STORIES &
PROMOTION
PROTOTYPES
Copyright 2014 Cowan Publishing

WHAT ARE WE TESTING?

Action : )

Motivation

Action Line
Inaction : (

Ability
(Usability)
source: adapted from BJ Foggs Behavioral Model
Copyright 2014 COWAN+

WHAT ARE WE TESTING?


DONT RUIN YOUR
RESULTS BY TRYING
TO TEST BOTH AT
THE SAME TIME

Motivation

Proposition
Testing
(ala Lean
Startup)

Ability
(Usability)

Usability
Testing

source: adapted from BJ Foggs Behavioral Model


Copyright 2014 COWAN+

AGILE FOUNDATIONS
DEVELOPMENT

VALIDATION

DISCUSSION

USER STORIES

PERSONAS
PROBLEM SCENARIOS,
ALTERNATIVES
PROPOSITIONS

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

AGILE USER STORIES- WHATIS


PERSONAS
PROBLEM SCENARIOS
VALUE PROPOSITIONS

Drafting
Stories

Epic Stories
Stories
Test Cases

As a [persona],
I want to [do something]
so that I can [derive a benefit]

ALEX COWAN
AlexanderCowan.com
@cowanSF
Copyright 2014 Cowan Publishing

EXAMPLE: AGILE USER STORIES


EPIC STORY
As the HR manager, I want to create a screening quiz so that I can understand whether I want to
send possible recruits to the functional manager.
CHILD STORIES
A) As an HR manager, I want to match an open positions required skills with quiz topics so I can
create a quiz relevant for candidate screening.
B) As an HR manager, I want to send a draft quiz to the the functional manager so I make sure Ive
covered the right topics on the screening quiz.
C) As a functional manager, I want to send feedback on the screening quiz to the HR manager so I
make sure Im getting the best possible screening on candidates.
D) As an HR manager, I need to purchase an upgraded service tier so I can add additional topics to
my quiz.
E) As an HR manager, I want to add custom questions to the quiz so we cover additional topics that
are important to the functional manager.
F) As a manager, I want to make sure the quiz is ready so I can make sure Im prepared for our first
candidate screening.
Copyright 2014 Cowan Publishing

USABILITY TEST SUITES: A PROGRESSION


Exploratory

Assessment

Validation

DESIGN

DESIGN

DESIGN

TEST

PROTOTYPE

TEST

It looks like this


approach will
fundamentally work.

PROTOTYPE

TEST

The implementation
is sound and ready
for fine-tuning.

PROTOTYPE

Ready
for prime
time.
Copyright 2014 Cowan Publishing

PROCESS

PROGRAMMING

TWO PILLARS OF ACCELERATOR SUCCESS

Copyright 2014 Cowan Publishing

PROCESS

Copyright 2014 Cowan Publishing

AGILE & THE BEAUTY OF SMALL BATCHES

Copyright 2014 Cowan Publishing

AGILE & THE BEAUTY OF SMALL BATCHES


Story
Backlog
Story A
size = x
Story B
size = y

ITERATION 01

PRIORITY

Story C
size = z
RELEASE X
Story D
size = a
Story E
size = b
...

Story N..
size = c

ITERATION 02

...

ITERATION N
Copyright 2014 Cowan Publishing

TOOLS: TRELLO

Copyright 2014 Cowan Publishing

FINI

Hypothesize

Learn

Experiment

View this deck

bit.ly/uvainno

Check out
Venture Design

bit.ly/vdesign

Use Customer
Discovery Handbook

bit.ly/playent

Twitter!

@cowanSF

Get in touch

acowan@alexandercowan.com

Copyright 2014 COWAN+

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