Validation and Experimentation Board of Innovation The Growth Revolution
Intro Validation of new Ventures Experimentation Process Assumptions Hypotheses Experiment Types Metrics Wrap-up
Introductions HI THERE! � 3
ABOUT US BOARD OF INNOVATION � 4
We help corporates world wide ALL INDUSTRIES B2B/B2C to design & execute innovation programs. � 5
Thinking global It crosses borders and countries. Our innovation programs have been delivered in any geographical scope and cultural context. A TEAM CROSSING HQ based in Antwerp (Belgium) BORDERS Healthcare Market Disruption Disrupt Fortune 500 Energy Market Innovation Strategy Ecosystem Business Design Next Gen Product Exploration 22 Bootcamp program Intrapreneurial Banking Telecom Business Masterclass eHealth Corporate Training Innovation Training Venture Support Innovation Process Workshop Countries Airport of the Future Digital Business Model Design Keynote Business Innovation 5 Innovation & Creativity Program Franchising Business Model Design Continents Lecture Urban Innovation 10+ Nationalities 6 �
Our services Business Design Transformation Talent Development Train-the-trainer Innovation Growth & Innovation Strategy Scoping workshop Strategy Fit E-courses At scale Innovation Program Design Toolkit development +1000 people Building Capabilities User Research Culture Program Customer Journey Mapping Problem Fit Leadership Talent Opportunity Scan Young graduates Programs Innovation manager coaching ± 6 months Innovation Coach Ideation Brainstorm Co-creation workshop Solution Fit Validation as a service Innovation for executives Business Model Design Strategy for designers Experiment design Innovation Strategy Training Design Thinking 1-2 days Innovation & Creativity Entrepreneur in residence Market Fit We help corporates world wide to Intrapreneurship/Lean startup Venture Team Coaching design & execute innovation Business Model Innovation programs. We look forward to Design Sprints select & tailor our services Special Innovation accelerator according to your needs. Keynotes Inspiration Formats External startup accelerator Innovation Day 1 day � 7
TARRYN GILLES � 8
What?
What is validation? validation • n , the process of gathering evidence and learnings around business ideas through experimentation and user testing, in order to make faster, informed, de-risked decisions. � 10
Looking to scale a business idea? Startups are good at finding out what to build. Corporates are good at scaling. With Validation as a Service, we’ll merge the two approaches to help corporates identify and validate unmet needs in the market (problem validation), and to help design, prototype and test solutions (solution validation). Find new, quick, efficient ways to spot, validate and scale up new business opportunities. � 11
Why?
Evidence-based decision making in a corporate context HOW DO YOU KNOW? � 13
Validated Learning? Risk build Waterfall = risky build Don’t: 2 years of build research before testing the market. build Time Release! � 14 CC @lfittl
Validated Learning? Change Mindset! Risk Lean = shorter cycles! 💢 Fail and learn fast Focus on experiments & validation - Test critical assumptions build build build build - Minimise risk by maximal learning. Time Release! Release! Release! Release! 15 �
How?
In which stage are you? Depending on the stage of the innovation funnel you’re in, you’ll need to validate different elements of your business idea, so that you can pick different kinds of experiments. • Problems : at the very • Solu0ons : Does your offer • Features : test core • Business Model : test the • Pricing : test the pricing beginning of your solve this need and is the features that are crucial viability of the solu2on model of your product or innova2on path, you’ll customer willing to pay? for adding value to your you designed. service. need to test whether a solu2on. problem you iden2fied is a problem worth solving for your customer. 17 �
Validation step by step A. Define your focus: what do you seek to validate? Cleary define your challenge, and at what stage of the innovation funnel you’re in, in order to select relevant experiment types to validate various aspects of your business proposition. � 18
Validation step by step A. Define your B. Map and focus: what do you prioritise your seek to validate? critical assumptions Cleary define your challenge, Regardless the stage you’re in and at what stage of the (problem space, solution innovation funnel you’re in, in space, business or pricing order to select relevant models), you can now map experiment types to validate out the assumptions and then various aspects of your turn them into hypotheses to business proposition. be tested. 19 �
Validation step by step A. Define your B. Map and C. Design the relevant focus: what do you prioritise your experiments to test seek to validate? critical assumptions your hypotheses Cleary define your challenge, Regardless the stage you’re in Once you have ranked your and at what stage of the (problem space, solution assumptions and defined key innovation funnel you’re in, in space, business or pricing hypotheses you want to test, you order to select relevant models), you can now map can select the most suitable experiment types to validate out the assumptions and then experiment(s) with the right various aspects of your turn them into hypotheses to metrics to test and validate (or business proposition. be tested. reject) your hypotheses. 20 �
Validation step by step A. Define your B. Map and C. Design the relevant D. Interpreting results focus: what do you prioritise your experiments to test and making (tough) seek to validate? critical assumptions your hypotheses evidence-based decisions. Cleary define your challenge, Regardless the stage you’re in Once you have ranked your Deciding whether to pivot, stop or and at what stage of the (problem space, solution assumptions and defined key persevere or iterate based on your innovation funnel you’re in, in space, business or pricing hypotheses you want to test, you learnings is a crucial moment and order to select relevant models), you can now map can select the most suitable often the toughest part - what is the experiment types to validate out the assumptions and then experiment(s) with the right evidence telling me? What do I do various aspects of your turn them into hypotheses to metrics to test and validate (or next? Is this enough? business proposition. be tested. reject) your hypotheses. 21 �
Validation of New Business Ideas � 22
2001: “IT”
BONO JEFF BEZOS � 24
‘’IT’’ would be “Bigger than the internet” “As big a deal as the PC!” “A Transforming factor for cities” � 25
“IT” turned out to be … A TWO-WHEELED, SELF-BALANCING, ELECTRIC PERSONAL TRANSPORTATION DEVICE , USING PATENTED DYNAMIC STABILIZATION TECHNOLOGY FOR ALL PEOPLE THAT TRAVEL SHORT DISTANCES …. � 26
“If enough people see this machine, you won’t have to convince them to architect cities around it; it’ll just happen.” Steve Jobs
Lessons learned? BEFORE BUILDING AND LAUNCHING Consider your assumptions Validate the key problem FOCUS Validate your solution Validate your business model Validate your pricing structure � 28
“Life is too short to build something nobody wants” - Ash Maurya, Running Lean
Our success at Amazon is a function of how many experiments we do per year, per month, per week, per day. Jeff Bezos � 30
Launching new business ideas EXPERIMENTATION PROBLEM FIT MARKET FIT DISCOVERY SOLUTION FIT GROWTH & SCALE � 31
DO’s DONT’s Choosing your focus - what are you aiming to Don’t skip the discovery phase - it is crucial for validate? the groundwork. Take on the right mindset! See this as a way to Get attached to your solution(s). Just don’t. OK? learn! Don’t be afraid of imperfections or “Move fast, with stable infrastructure” embarrassment. � 32
Don’t ask “what will we build?” Ask “what do you want to learn?” � 33
The Experimentation Process � 34
Experimentation is the process of observing how customers react to validate (or invalidate) business idea assumptions . � 35
The Experiment Process IDENTIFY YOUR RISKIEST ASSUMPTION DESIGN YOUR TAKE AN Assumptions EXPERIMENT EVIDENCE-BASED DECISION CUSTOMER ANALYZE RUN RESULTS EXPERIMENT
The Lean Startup Build (MVP) Measure Learn from your failures And iterate! Learn Learn � 37
The Experiment Process IDENTIFY YOUR RISKIEST ASSUMPTION DESIGN YOUR TAKE AN Assumptions EXPERIMENT EVIDENCE-BASED DECISION CUSTOMER ANALYZE RUN RESULTS EXPERIMENT
First, know that you don’t know
ASSUMPTIONS REALITY WHAT YOU WHAT YOU THINK IS TRUE KNOW IS TRUE EXPERIMENTATION � 40
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