Design Thinking&
Lean Startup
Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.
Tim Brown, CEO IDEO
#Demystification
Customer Development
Lean Manufacturing
Agile Software Development
Lean Startup Sources
Customer Development
Focus on customer from day 1Validate demand before you build
Lean Manufacturing
Reduce wasteContinuous improvement
Agile Software Development
Rapid IterationContinuous deployment
1997 2003 2011 20121988 2014
#FlashBack
Have an idea☟
Write a business plan☟
Raise money☟
Build the product☟
Launch☟
Market it☟
90% chance to fail
Traditional Startup Path
Projected growth
No business plan survives first contact with customers
Steve Blank
A startup is a temporary organization formed to search for a repeatable and scalable
business model
Steve Blank
1. Search 2. Validate 3. Grow
3 Stages of the startup
Problem/Solution Fit Product/Market Fit Scale
Customer Discovery Customer Validation Company building
Build the right product and features
that keeps users coming
Find a cost effective way to grow your customer base
Find a real and poorly addressed
need
Find how to solve it for customers willing
to pay
Turn your hypotheses into facts
Based on the outcome, pivot or persevere. Go back to step 1.
Identify the riskiest hypothesis from your business model.
Design and run an experiment that prove if hypothesis is either true or false.
1
2
3
To maximise chances of successMinimize total time through the loop
You are wasting if you are not learning
MinimumViable
Product
#build
Minimum Viable Product
An experiment that can validate or invalidate an hypothesis.
Minimum effort for maximum learning from your customers.
An MVP should not be perfect.
How to build an MVP
Discovery Interview
Landing page
Solution Interview
Crowdfunding
Concierge
Wizard of Oz
Low fidelity protoVideo
Stage
Reach
Prototype
Examples of MVPs
If you are not embarrassed by the first version of your product, you’ve launched
too late.
Reid Hoffman
Measure
#data
Cumulative vs Conversions
Big Data-vs-
Lean Data
FOCUS Only Metric that Matters
(OMTM)
1. Empathy2. Stickiness / Retention / Engagement3. Virality4. Revenue5. Scale / Distribution
StickyCustomers don’t leaveMetrics: Churn & ARPU
ViralCustomers bring new customersMetrics: Viral rate
PaidCustomer acquisition via advertisingMetrics: CAC < CLTV
Growth EnginesStrategy to allow your startup to grow
Pivot-or-
Persevere
Pivot is a change of strategy
Strategy
Optimisation
Pivot
Vision
Strategy
Product
Product-Market fit
Customer Development
#LeanCanvas
Customer & Problem Hypothesis
? ?
Target a micro-segment, the innovatorsThe first, second and third customer
Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957
Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957
Target a micro-segment, the innovatorsThe first, second and third customer
It is not:● Survey● Questionnaire● Focus group● Market Study● Your personal experience● Conversation with friends
Customer Discovery
what people actually
do
what people think
they will do
what people say
they will do
Franck Debane @fdebane
GET OUT OF THE
BUILDING
Problem Interview
YOU
Understand problem importance / frequency
Discover:➢ alternative solution to solve the problem➢ get an idea of how much the problem cost➢ how the customer look for solution to their
problem➢ the biggest pain point about the problem➢ the root causes of the problem➢ key insights to design a solution
Problem Interview: Goals
evaluate the problem importance
has the problem
aware of having the problem
looking for a solution
hacked a solution
pay for a solution
how often the problem occurs
➢ Do not talk about your idea➢ Listen, don’t talk. Be nosy. Drill down.➢ Be ready to learn and not to sell.➢ Ask about the past events➢ Be specific and avoid general questions➢ Learn, be curious. Keep asking why➢ Keep your questions unbiased➢ Repeat what you understand and get
confirmation or correction➢ Go in pairs. Take notes.➢ Interview one person at the time.
How to: problem interviews
...to Customer Validation
Get a proof of commitmentSomething of value from the customer - more than words
The stronger the commitment, the better the proof
Confirm & Sell
● Money (pre-order)● A check● A signed agreement (with blood?)● Invitation to another meeting● An email, phone number● Access to their sensitive data● Access to friends list● Something that has value, etc...
You can be creative in what you ask for, as long as it’s something that has value to your customer.
Things you can accept as payments
...to sum up...
Problem: WHAT
Solution: HOW
Waterfall
Agile Lean Startup
known unknown
unknown
known
To maximise chances of success:Minimize TOTAL time through the loop
Hypothese
Customer behaviours
MVP
Validate or invalidate
Reactivity, adaptability & flexibility-vs-
perfect planification
Thank you!
Franck Debane @fdebane
Lean Startup& Design Thinking
Similarités & Différences ?
source: http://secure.nordstrominnovationlab.com/pages/our_process_told_as_our_team_s_timeline
Thank you!
FEASIBILITY DESIRABILITY
VIABILITY
Beware of the process!