UMSI Entrepreneurship Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor  School of Information 650-539-8376 nabgilby@umich.edu UMSI 663 Fall 2015 10/23/2015 Week #7

Team Project Overview Project Week: Form your team, establish ground rules, Interviews round 1 Review Customer Development Round 1 and Potentially Pivot, Competition, Market size Review Customer Development Round 2, Pivot? Review Customer Development Round 3, Pivot? KJ Affinity Diagram, Test with Users Design Thinking for initial brainstorming, wireframe test with users, Skeleton of App Draft pitch, Dataset, backend, build app scaffolding, All teams pitch and review, MVP prototype Pitch and demo to VCs, Executives, Entrepreneurs

Are you refining your target user MAKING IT SMALLER Are you refining your target user MAKING IT SMALLER? Are you hearing similar feedback? Do you have your target, have you heard repeats from 7 people? Team gelling? How did it go this week? Correct on target users? Problems? Did you succeed in NOT sharing your value hypothesis?

Your Presentation Format: 7 Minutes Competition List competitors List competitive advantages Product Detail & Demo Product line-up (form factor, functionality, features, architecture, intellectual property). Development roadmap. Team Founders & Management Board of Directors/Board of Advisors http://www.sequoiacap.com/grove/posts/6bzx/writing-a-business-plan We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed. Company purpose Define the company/business in a single declarative sentence. Problem Describe the pain of the customer (or the customer’s customer). Outline how the customer addresses the issue today. Solution Demonstrate your company’s value proposition to make the customer’s life better. Show where your product physically sits. Provide use cases. Why now Set-up the historical evolution of your category. Define recent trends that make your solution possible. Market size Identify/profile the customer you cater to. Calculate the TAM (top down), SAM (bottoms up) and SOM.

Design Thinking

Record and Write Top Quotes 2-3 for each interview, 25-30 QUOTES TOTAL 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

Minimal Viable Product

Minimal Viable Product

KJ Method (Jiro Kawakita) and Questioning Build an Affinity Diagram = KJ Diagram A “tool”, at some of my companies we fondly referred to it a “the bull's-eye” structures detailed objective data into more general conclusions. Used for providing initial structure in problem exploration. Often structures answers to a “WHAT” question e.g. “What is the major problem users have right now with Obama Care” EXAMPLE: Wildfire

Sample Wildfire KJ Diagram

Sample Wildfire KJ Diagram: top 1 sections cc

Sample Wildfire KJ Diagram: top 3rd

KJ Process Write your KJ QUESTION: What did <target users> say was urgently needed to best deliver <value hypothesis> Multi-pick to get to 18-25 most meaningful quotes Process Data: Group quotes around meaning, AT THE SAME LEVEL OF ABSTRACTION, no more than 3 quotes (leave lone wolves that are at a high level of abstraction, you may be able to group them next round) Write a meaningful header, capture the most important thought, clear language (avoid AND’s) Repeat (until no more grouping make sense) Layout the diagram on white roll paper, per the Wildfire example, using arrows, counter arrows Vote on top 3, lowest level groupings Write a summary statement

KJ How To 1: Have one quote per black level post-it written in black, all caps, initals of speaker right hand corner JL-1 (for Joyce Lee quote #1) Make sure you have quotes from at least 7 target users, 6 of which you will use to review the KJ, wireframe, competition matrix with. Red level post-its should be just a small step up in abstraction but should not be blackpostit1 AND blackpostit2 AND blackpostit3. Red, blue and green only have at most 3 post-it/post-it groups of (Red or blue) All teams must get to blue level Extra credit for a team if they get one section to Green level When you’ve abstracted your post-it’s as far as you can go, you finish putting putting the diagram on the paper MINUS the final ANSWER to the what question and the top 3 votes (see next slide)

KJ How To 2: Make the diagram like the coloring on the example Wildfire diagram. Add the FLOW arrows from your top most sections -> this leads to this <-> these both affect each other |-| these are counter to each other Each person gets 3 votes of 3,2,1 points. You vote on the red level of what most strongly answers your KJ WHAT question. Color (like the wildfire example) your top mosts points ( 1. RED X marks, 2. Blue \ marks, 3 green dots) Abstracting from your Red, Blue, Green red-level labels, write your final statement in RED in the upper right of the KJ diagram in all caps (yes the wildfire one is wrong) When the diagram is done, date and each of you sign the diagram in black at the bottom right THEN your teams all swing their arms in a circle while saying Yooooo then both clap and say ONE (yes goofy but it’s part of the ritual so give it a try).

How to Present a KJ Diagram (for customer feedback) Put the KJ diagram on the wall. Explain to the customer that this is an affinity diagram made from the most urgent, direct quotes your team heard from conversations with a group of target users. Point to and read the Black “What” statement in the upper left of the KJ Diagram What we heard from target users was …. Point to and read summary statement in Red on the upper right The details backing this are…. Walk through and point to the flow, starting with the left-top most Blue level statement, point to the next blue level use language: <blue 1 statement> “leads to” -> <blue 2 statement> <blue 1 statement> and <blue 2 statement> “mutually affect each other” <-> <blue 1 statement> |-| “is in contrast to” <blue 2 statement> The top priorities are: Point to and read the top priority Red XX, Red level statement, repeat with Blue \\\ 2nd priority Red level statement then Green … 3rd priority Red level statement These priorities support, point to and read the upper left Red summary statement. Point out direct quotes from the customer you are presenting to. Ask them “did we hear you correctly? Is there anything we are missing?” Thank the customer

KJ Diagram

Simple Example

This week assignment #13: Feedback & Hypothesis What we are testing this week: Target User KJ Question/KJ Summary Statement/3 top Problem areas Value Hypothesis SHARE IT! Each person interviews 1 target users to get feedback on Target User, KJ and then value hypothesis statement Walk them through the KJ, Reveal top areas voted on the KJ, perhaps read quotes Ask if they agree with the "picture" Ask if there is anything you missed? SUBMIT: Text for Target User, .KJ Question/KJ Summary Statement/3 top Problem areas from KJ/Value Hypothesis 1 quote, written, recording segment if possible, from each team member Picture of finished KJ, must match all formatting requirements! Write in the comments whether you have had at least 7 interviews with similar target users that are saying similar things about their urgent problems/areas of most meaning

Assignments How to do a KJ Contextual Inquiry and Affinity Diagram #21 Do the KJ exercise to build an Affinity Diagram #22 Each team member presents KJ, wireframe, competition Matrix to 3 target users for feedback (add exercise, product score sheet) #23 Revise your target user, top 3 problems, value hypothesis, wireframe, competition matrix, based on feedback from #22 #24 Layout the user stories (using proper structure) that your team agrees need to be accomplished for your MVP #1 Work on your prototype code