UMSI Entrepreneurship Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor  School of Information 650-539-8376 nabgilby@umich.edu 2016 Winter UMSI 363 Class #4

Don’t do what the customer tells you to do? You’ve got to start with the customer experience and work backwards to the technology…I’ve made this mistake probably more than anybody else in this room…As we have tried to come up with a strategy and a vision for Apple, it started with ‘What incredible benefits can we give to the customer? Where can we take the customer?’…I think that’s the right path to take. - Steve Jobs http://www.forbes.com/sites/drewhansen/2013/12/19/myth-busted-steve-jobs-did-listen-to-customers/#1c19efa4298f 1?47 How did it go this week? Correct on target users? Problems? Did you succeed in NOT sharing your value hypothesis?

Today 1:15 Start Midterm Review/Example During lab – second standup- Coordinate Share Out 2:45 Start Share Outs – Should you pivot? If time, Continue Lab

Project Your Project has gone through 4 weeks: Share out on your value hypothesis, quotes, decide if you will pivot on target user, problem and value hypothesis Potentially pivot Target User, Problem or Value Hypothesis

Team Project Overview Project Week: Form your team, establish ground rules, Interviews round 1 Review Customer Development Round 1 and Potentially Pivot, Review Customer Development Round 2, Pivot, Competition, Market size Review Customer Development Round 3 sketch/wireframe, Business Model Canvas, KJ Affinity Diagram, final wireframe test with users Review Customer Solution Round 4: Draft Pitch, put together prototype All teams pitch and review, MVP prototype Pitch and demo to VCs, Executives, Entrepreneurs

First Standup Tell Us What you did last week to get the interviews done What you will do this week to get 3 each, 6-9 more done What obstacles you have

Share Out Team name Target user description What is their urgent problem? What is your value hypothesis? Each team (plays) ONE quote that either strongly support or negates their value hypothesis Group discussion change target user, change problems, both, value hypothesis

Midterm Review/Example

Discussion

Business Model Canvas – Plain English

Who is the FIRST target, specifically

IDEATION: Customer Development Customer Search Customer Validation ??? Problems Solutions

The hardest innovation problem is finding a market for a pre-defined solution!!!

KJ Method 1: (Jiro Kawakita) Supports groups to quickly reach a consensus on priorities of subjective, qualitative data You will be using a structured Contextual Inquiry approach called the KJ Method, where you ask 4 Open-ended questions around your problem area, based on a THEM question constructed from your urgent problem: THEME QUESTION: What did Mother’s as primary family organizer say they need to help ease constantly being stressed out with unexpected pickup/drop off of their children to/from school or outside activities Tell me about how you (do today without your intended solution? (Find out as much as you can about their worldview but DO NOT LEAD THEM) What complaints, problems, weaknesses do you have? What do you like? What should we do (specifically, RIGHT NOW) to improve the weaknesses you mentioned prior?

KJ Method Teams, you must all help each other to find 3 target customers each. You may find after doing 1 or 2 that the attributes of your customer need to change or that you hypothesis is wrong and needs to change or both! HAVE FUN... THE AREA YOU CHOSE IS INTERESTING ... this is an opportunity for you to learn about your area of passion, it's not about if your idea is right or wrong, you have plenty of time to fix it. Instructions 1. Each team member, find three target users to interview. Record the interview (before recording ask permission. Record on your phone or use something like Camtasia). 2. DO NOT TELL THEM ABOUT ANY IDEAS/PRODUCTS, your job is to validate and dig deeper into their problems to validate your value hypothesis you formulated. 3. You will be using a structured Contextual Inquiry approach called the KJ Method, where you ask 4 Open-ended questions around your problem area: 1. Tell me about how you (do today without your intended solution? (Find out as much as you can about their worldview but DO NOT LEAD THEM) 2. What complaints, problems, weaknesses do you have? 3. What do you like? 4. What should we do (specifically, RIGHT NOW) to improve the weaknesses you mentioned prior? EXAMPLE: Area: 3D printing prosthetic hands Problem: People who need prosthetic hands cannot get them because they are too expensive Write the question as hypothesis: What are the most crucial problems in using 3D printed prosthetic hands? 1. Tell me about how you work with your hands? 4. What should we do (specifically, RIGHT NOW) to improve the weaknesses? 4. From each interview write down the 1 or 2 quotes on a post it note (IN THE CUSTOMER’S WORDS EXACTLY) that best answer your WHAT question. From the example: “What are the most crucial problems in using 3D printed prosthetic hands?”

KJ Method

Record and Write Top Quotes 2-3 for each interview Black text, all caps, large, easily readable from 6 feet away Traceability code: allows trace back to the source for the team but respects confidentiality

Affect and Report Language In DESIGN THINKING – trying to get to what is MEANINGFUL to the user…..emotion, pain or joy Field of semantics distinguishes between two kinds of language, Affective and Report Affective language – emotional information = context = WHY Report language – logical information = facts = 5 W 1H = WHO WHAT WHEN WHERE HOW

KJ Method (Jiro Kawakita) Of Contextual Inquiry and Questioning Obtain a 360 degree perspective of the actual environment in which the product or service would be used. You explore through: Open-ended inquiry Process observation Participant observation Build a team united around what’s meaningful to the users from a variety of perspectives….. REMEMBER DIVERSITY IN TEAMS……THIS IS WHY IT IS VITAL FOR INNOVATION

Prepare Share Out: Customer Development Round 1 Each team will huddle for 15 minutes to identify quotes from interviews to share with the group. Each person should have 2-3 yellow sticky notes with direct quotes, written in the KJ format. SAVE THOSE!!! Each person should try to share quotes with their team that reinforced or negated the target user or problem If possible, each team should plan to play ONE recorded quote from their interviews in the Share Out for the class. Decide as a team if you need to pivot target user, urgent problem, value hypothesis some or all of the above!! Teams should identify questions about the process so far they might want to ask Nancy, other teams, or lab assistants.

Competition Landscape: Gartner Magic Quadrant

Competition Matrix: Rack and Stack

Market Size TAM = How big is the universe SAM = How many can I reach with my sales channel Target Market = who will be the most likely users/customers Target Market

First Standup Tell Us What you did last week to get the interviews done What you will do this week to get 3 each, 6-9 more done What obstacles you have

Share Out Team name Target user description What is their urgent problem? What is your value hypothesis? Each team (plays) ONE quote that either strongly support or negates their value hypothesis Group discussion change target user, change problems, both, value hypothesis

Assignment Summary #12 Customer Validation Round 2 #13 Submit Lynda Certificate