1. UMSI Entrepreneurship 2016 Winter UMSI 363 Class #9 Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor School of Information 650-539-8376 nabgilby@umich.edu

2. Today 1:10 – 1:30 Midterm difficulties review 1:30 – 2:45 Shareout (Nancy leaves 1:50, returns 3:05) LAB: Do KJ, if complete, start design thinking on wireframes

3. Team Project Overview 1.Form your team, establish ground rules, Interviews round 1 2.Review Customer Development Round 1 and Potentially Pivot, Competition, Market size 3.Review Customer Development Round 2, Pivot? 4.Review Customer Development Round 3, Pivot? Skeleton of Swift App 5.KJ Affinity Diagram, Design Thinking for initial brainstorming, wireframe, xcode storyboard layout to wireframes, test with users 6.Draft pitch, Dataset, backend, build app scaffolding, 7.All teams pitch and review, MVP prototype 8.Pitch and demo to VCs, Executives, Entrepreneurs Project Week:

4. Midterm Difficulties Review

5. 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

6. 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 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?

7. 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? 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? 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?”

8. KJ Method

10. 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

11. 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?

12. Your Presentation Format: 6 Minutes 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. 1.Company purpose Define the company/business in a single declarative sentence. 2.Problem User scenario, use quotes Describe the pain of the customer (or the customer’s customer). Outline how the customer addresses the issue today. 3.Solution And demo Demonstrate your company’s value proposition to make the customer’s life better. (Video, walk through user scenario, addressing top items from Problem) Provide use cases. 1.Why now –Set-up the historical evolution of your category. –Define recent trends that make your solution possible. 2.Market size –Identify/profile the customer you cater to. –Calculate the TAM (top down), SAM (bottoms up) and SOM. 6.Competition Matrix, Describe Landscape List competitors List competitive advantages 7.Why you as a team believe (or not) KJ, quotes, What you’ve learned 8.What’s Next and Team. Company timeline with development roadmap Founders, why great team

13. 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

14. 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

15. Sample Wildfire KJ Diagram

16. cc Sample Wildfire KJ Diagram: top 1 sections

17. Sample Wildfire KJ Diagram: top 3rd

18. KJ Process Write your KJ QUESTION: What did say was urgently needed to best deliver 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

19. 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)

20. 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).

21. 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: – “leads to” -> – and “mutually affect each other” – |-| “is in contrast to” The top priorities are: –Point to and read the top priority Red XX, Red level statement, repeat with Blue \\\ 2 nd priority Red level statement then Green … 3 rd 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

22. KJ Diagram

23. Simple Example

24. This week assignment #16: 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

25. Assignment #17: Draft Wireframes Design, finally ! SUBMIT: Draft Wireframe Make sure to illustrate/point out/annotate with 1...2.....3 on the wireframe where you are addressing the top 3 urgent problems/meaningful items that you voted on top 3 in your KJ. WHEN YOU DO YOUR USER INTERVIEWS, WALK THROUGH EITHER THE WIREFRAME OR THE XCODE STORYBOARDS, HAVE THEM SCORE YOUR SOLUTION FEATURES (INCLUDING TOP 3 FROM THE KJ) FOR BOTH SATISFACTION AND IMPORTANCE!!

26. Assignment #18 Put your Wireframe into Swift Storyboards Design, finally ! Modify your swift code from Assignment #15, your app skeleton, to have the same front end flow from your wireframes, this should be LO FI!!!! SUBMIT: Zip up your swift code and submit OR submit a link to your github repository. Please match your wireframes exactly as possible. This should be mostly working in the storyboard with a few labels/actions in swift code for screen transitions. This must "run" so we can click through the screens.

27. Assignment Summary Assignments: #16 Submit KJ + Final Revision Target User, Problems, Value Hypothesis, tested with 1 user each #17: Draft Wireframes #18 Put your Wireframe into Swift Storyboards