Growth Hacking, Product Design, Design Thinking & Company Innovation Culture - Burton Lee - LvBS -...

Lessons from Silicon Valley: Growth Hacking, Product Design, Design Thinking, Company Culture and InnovaCon

Lviv Business School @ UCU (LvBS)

MS in Innova7ons & Entrepreneurship Program Dr. Burton Lee PhD MBA

European Entrepreneurship & Innova1on Stanford Engineering School, Silicon Valley, CA

www.StanfordEuropreneurs.org | @Europreneurs

Lviv, Ukraine Oct 16 2015

Key Lessons from Silicon Valley

•  ‘Growth Hacking’ – The new Sales & Marke1ng – Lessons for Tradi1onal Firms

•  Product Design and Product Management –  ‘Design Thinking’ as a Strategy Tool

•  Company Culture –  Innova1on – Ethics

Oct 16 2015 Copyright Burton H. Lee & Innovarium Ventures 2015

Importance of Great Product Design

for Building Successful

Companies…

… and Reducing Failures

Thru ‘Premature Scaling’

Product Quality

End-‐to-‐End Customer Experience

ABOUT THE SPEAKER

DR. BURTON LEE PHD MBA

STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES

[email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Map of Presen7ng Speaker Na7onali7es

European Entrepreneurship & Innova7on @ Stanford Engineering

(ME421)

Winter 2015 – Year Seven

Enterprise Estonia Silicon Valley

Ghent, Flanders Region Belgium

iMinds ICT Research Ins7tute

hUp://www.europeanentrepreneursatstanford.com | hUp://me421.stanford.edu Oct 16 2015 Copyright Burton H. Lee & Innovarium Ventures 2015

February 10 @ Stanford Engineering Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)


Observa7ons from Ukraine & Europe

•  Visits to leading UA ICT companies (Prom.UA, playtech), KPI, KMBS, LvBS

•  7 years working in Europe with tech startups, corpora1ons, investors, universi1es, engineering and business professors & schools, governments and the European Commission –  Poland, Estonia, Latvia, Lithuania, Bulgaria, Croa1a, Slovakia, Hungary, Belarus, Russia

–  Collabora1ons with European universi1es in Ireland, Finland, France, Germany


Lessons from Silicon Valley

User Growth and

‘Growth Hacking’

1


Exponen7al User Growth and Market Disrup7on

‘User Growth’ Now Takes Central Place in Strategy

•  No more ‘VP of Sales & Marke1ng’ at high-‐growth startups

•  Major shib to ‘VP of Growth’ at best tech firms


Growth Hacking

•  Marriage of these competencies, func1ons and approaches: –  Product design & customer experience

•  User interfaces, customer engagement, product architecture – Web & data analy1cs

•  Real-‐1me analysis of customer behavior/preferences –  Tradi1onal Marke1ng & Sales

–  Rapid itera1on •  Agile & lean development, pivots


Copyright Burton H. Lee & Innovarium Ventures 2015

Oct 16 2015


Product Design &

‘Design Thinking’

2


Source: Steve Blank, 2012

Android & iPhone “Disrup(ve Innova(on” via New Business Models + Advanced Product Design


Smart Phone “Company-‐Busters” New Products and Services for Global Markets

Oct 16 2015

Importance of Great Product Design

for Building Successful

Companies…

European Startup Teams O_en Miss These Key Ac7vi7es

•  Develop too few product/service concepts –  Have just 1-‐2 ideas

•  Too few interac1ons with real users/customers –  2-‐3 discussions vs mee1ng/observing 00’s –  Don’t make serious effort to go into market, understand customers and the market

–  Develop liUle sense of market segments: high, middle, low •  Build insufficient prototypes

–  1 or 2 vs 10 vs 500 •  Test prototypes with too few real users •  Start with the Wrong Ques1ons About User Needs


A ‘Lean Startup’ Approach to Early Stage Entrepreneurship Educa1on

Product-‐Market Fit


Using ‘Design Thinking’

Seeking Product-Market Fit

How Can We Increase

New Product Success Rates at Ukrainian Companies ??

Direct Engagement with Real Users

Design Thinking Exercise

Re-‐designing the 21st Century Shopping Cart

IDEO Shopping Cart Project


Sketching New Ideas Possible Product Features and Architectures

How Would You Redesign The Shopping Cart for Modern Shoppers in Ukraine?

Apr 20 2015 Copyright 2015 Burton H. Lee and Innovarium Ventures | Silicon Valley 38

‘So_ Prototyping’

Sob Prototyping Materials & Tools •  Paper •  Cardboard •  Plas1c •  Wooden s1cks •  Post-‐it Notes •  Cloth •  Sketches •  Scissors •  Tape •  Glue •  Staplers •  Markers


Observe Real Customers & Customer Behavior


42

Record Real Customers & Customer Behavior

Storytelling Tools Communica(on Methods with Users and Product Team

•  Role playing (ac1ng) •  Storyboarding •  Ar1fact crea1on •  Use case analysis •  Improvisa1on (ac1ng) •  PPT presenta1on •  Architecture & ecosystem diagrams


46

One Design Team’s Solu7on for 21st Century Shoppers

Actual Product Design Process (generally not linear for new products and untested markets)

Search for Product-‐Market Fit

47

What is Different About ‘Design Thinking’? •  Avoids ‘Hard Engineering’ ac1vi1es, expenditures and commitments for as long as Possible

•  Combines many ‘hard’ & ‘sob’ disciplines: –  Sociology Design –  Psychology Art & Drawing –  Anthropology –  Human Factors –  HandiCrabs & Making Things –  Business –  Engineering & Architecture

•  Searches for disrup(ve and new crea1ve approaches to solving societal problems and marketplace gaps

•  Focuses on finding and ‘asking the right ques1ons’ Oct 16 2015 Copyright Burton H. Lee & Innovarium

Ventures 2015

Storytelling Goals for Companies

•  What is the problem? •  Who is the end user? •  How does your product/service help to solve the problem?

•  How did you arrive at your tenta1ve solu1on? •  How would you test this further in the marketplace?


Product Design Is *Not* the Same as ‘Engineering Design’

Key DT Methodologies & Skills

•  Idea1on •  Needs Finding & Empathizing •  Ques1on Asking | Listening | Watching •  Assump1ons Challenging •  Storytelling •  Sob Prototyping •  Itera1on •  User Context Seeking


The Essence of ‘Design Thinking’


Company Innovation Culture

by ‘Accident’ or by ‘Design’ ?

3

Stock Op7ons for Startup Employees

Necessary But

Not Sufficient

Company Culture is Now Used as a Key Element of

Strategic Advantage vs CompeCtors

Company ‘Innova7on Culture’ Silicon Valley Milestones

1950s-‐60s-‐70s

1980s-‐90s-‐2000s

1990s-‐2000s-‐2010s

Copyright Burton H. Lee & Innovarium Ventures 2015 Oct 16 2015

1960


The HP Way Founda(ons for Corporate Innova(on Culture

•  A radical and contrarian approach to organizing & running large companies in 1949 –  “HP rejected the idea that a company exists merely to maximize profits”

•  Customer-‐focused •  Team-‐based projects •  Stock op1ons programs •  A responsibility to the community at large •  Strong engineering-‐driven culture •  Management-‐by-‐objec1ves, not by-‐control


The HP Way Guiding Values for the Company

•  “What can we contribute?” •  “Are people’s lives improved because of what we do?”

•  “Are the communi1es in which we operate stronger, and the lives of our employees beUer?”

•  “Do our products offer something unique to our customers?”


Oct 16 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 APPLE

The Core of Apple Culture

•  Accountability •  Hire the best •  Consistency •  Design for great user experiences •  Excellence above revenues •  Treat employees well



Apple in Steve Jobs Time …

Oct 16 2015 Copyright Burton H. Lee & Innovarium Ventures 2015 Apple under Tim Cook

Innova1on Culture @ Google

•  Innova1on from everywhere •  Focus on the user •  Think 10X •  Bet on technical insights •  Launch and iterate •  20% 1me •  Default to open process •  Fail well •  Have a mission that maUers


•  Strong engineering culture •  Strong sense of corporate mission

Oct 16 2015

Benefits of Innova1on Culture @ Google •  Sustained ability to:

–  Enter new ver1cals –  Create new product categories and industries –  Move quickly –  Stay ahead of rivals –  AUract the best talent –  Dominate their markets –  Build a world-‐leading ‘innova1on ecosystem’ in/around Google

•  ‘Innova1on culture’ used from Day One as a tool to: –  Build a ‘flat’ company –  Less hierarchy than most other enterprises –  Rapid decision-‐making –  Superior strategic vision + execu1on –  Accept failures, learn from failures, shut down failures quickly



Microso_ 1980s -‐ 2014


Microso_ 2015

Key Ques1ons

•  How does a company maintain its culture as it scales/grows?

•  How can an exis1ng company ‘pivot’ its culture to be more innova1on-‐centric?


Innova7on Culture Prac7ces @ Google

•  Hire for personality & culture fit •  Value speed & pivo1ng in decision-‐making •  Work, eat and live together •  Do all reorgs in a day •  Organize the company around the people whose impact is the highest

•  Establish a culture of ‘Yes’ •  Bet on technical insights, not market research •  Default to open, not closed •  Don’t follow compe11on •  Avoid deep hierarchies


Who Is Your ‘Chief Culture Officer’?

Culture Beats

Strategy

Company Culture

is the core

Innova7on Plajorm


Sa7rical Org Charts, by Manu Cornet

(2011) French So_ware

Engineer at Google.

Wrap-‐Up and Summary

The Essence of ‘Design Thinking’

Product Design Excellence & Skills Are EssenCal to

Growing Successful Companies in Ukraine

Customer Demand for Quality is Extremely Important

Companies Must Understand the End-‐to-‐End

Customer Experience

Join Our Online Community

@europreneurs

Speaker Presentation Slides

www.slideshare.net/burtonlee1

Speaker Videos – YouTube Channel

‘StanfordEuropreneurs’ ‘European Innovation @Stanford’

www.StanfordEuropreneurs.org me421.stanford.edu

THANK YOU Dr. Burton Lee PhD MBA Stanford School of Engineering [email protected]

WWW.STANFORDEUROPRENEURS.ORG

@EUROPRENEURS

Working in Silicon Valley, Europe, La7n America and Washington DC

•  Senior financial, technical and strategy advisory services for global technology innova1on organiza1ons •  Professional Services

–  Technology startup and growth companies •  Interim CXO and Advisory Board roles •  Expert guidance & decision-‐making at the interface between market/customers, technology and finance •  Business development – industrial and government •  Business plan prepara1on/research/review; Government Grant proposal prepara1on/review •  Coaching and mentoring of CEOs and other CXO-‐level managers •  Assistance with government regulatory and policy agencies

–  Angel, venture capital and private equity Investors •  Fund strategy, team selec1on and market posi1oning •  Due diligence: technical, financial, strategy and business models

–  Public and non-‐profit R&D laboratories •  Technology transfer & partnerships; venturing and spin-‐out of companies; strategy and business development; grant applica1ons

–  Research universi1es •  Innova1on-‐related models, policies and prac1ces •  Technology transfer and licensing; industry partnerships and rela1ons; development and strategy; grant applica1ons

–  Na1onal and regional government agencies •  Innova1on policy formula1on, analysis and review; cluster development strategy; economic impact studies •  Science & technology policy formula1on, analysis & review: space, avia1on, nanotechnology, sobware/AI/robo1cs, manufacturing

•  Selected recent clients –  US/European technology startup companies – alterna1ve energy, robo1cs/AI, sobware, Internet, nanotech –  Venture and private equity funds – aerospace, nanotechnology, ICT, compu1ng, advanced materials, clean tech –  Office of the Prime Minister, Ireland; European Commission; Na1onal Science Founda1on; NASA, Na1onal Academies

•  Dr. Burton Lee PhD MBA, Managing Director –  Contact: [email protected] Based in Palo Alto, CA near Stanford University –  Bio/References: LinkedIn Profile –  Lecturer, European Entrepreneurship & Innova1on, Stanford School of Engineering

Growth Hacking, Product Design, Design Thinking & Company Innovation Culture - Burton Lee - LvBS -...

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