innovathon agile indiea 2012

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InnovathonHow to build innovation stamina systematically?

Innovathon

Vinay Dabholkar, Ph.D.Catalign Innovation Consultingvinay@catalign.com

Akkiraju Bhattiprolu (Akki)YAssume Inc.,

akkirajub@yassume.com

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Innovathon Objective1. Understand Leap Of Faith2. Understand Validated

Learning3. Systematic Way To Tackle

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A startup is a human institution designed to

deliver a new product or service under conditions of

extreme uncertainty.

What Is A Startup ?

Nothing to do with size of company, sector of the economy, or industry.

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Requirements

Analysis

DesignDevelop

Implement

Maintain

Problem : Known

Solution : Known

Waterfall

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Business Analyst Product Owner

Product BacklogUser Stories

XP SCRUM

Problem : Known

Solution : Unknown

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First Priorities • Quality? • Scope?• Speed?• First Time Right?

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IM market3D avatar

Original assumptionsNew IM Network Impossible

Add-on With Interoperability

Users Wouldn’t Add New IM IM Of Choice

Users Will Play With Existing Friends

Make It Easy To Invite Existing Friends

Launch

Nobody botheredto download

Friends downloadNobody buys

IMVU story

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New AssumptionsNew IM Network Impossible New IM Possible

Users Wouldn’t Add New IM Working With 8 IMs

Users Will Play With Existing Friends

Users Prefer New Friends

IMVU story

IM market3D avatar

Launch

Learning throughRapid experimentation &Real numbers

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How To Optimize Effort To Arrive At

This New Learning?

IMVU story

IM market3D avatar

Launch

Learning throughRapid experimentation &Real numbers

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First Priorities • Quality? • Scope?• Speed?• First Time Right?

• Validated learning

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1. We know what customers want2. We can accurately predict the

future3. Advancing the plan is progress

Shadow Beliefs

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You Know Your Customer?

• Who They Are• What They Want

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Minimum Viable Product (MVP)

A Minimum Viable Product has just those features that allow the product to be deployed, and no more

Few UsersFeedback & Learning

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Today’s ContextHow To Practice ?

MVP Is OutFeedback ReceivedWhat Next?

Why Not Before MVP?YASSUME CASE STUDY

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Learning Prioritizatio

On What Basis?

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Learning PrioritizationOn What Basis?

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Leap Of Faith Assumptions

• No Data – Pure Gut

AND• Crucial To

Success

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Exercise 1

Classify The FeedbackBased On Relevance To Leap Of

Faith• High • Medium• Low

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Idea Generation

• No Black Hats• Ignore Limitations• Wild Ideas Most Welcome

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Exercise 2

Select Any One Feedback Area – High LOF

Each Group To Brainstorm And Generate Ideas

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Idea Selection

• Which One to Work On?• Boss Decides?

• Boss Knows Customers• Boss Knows Customer Needs

• Boss Predicts!

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Let’s look at some “real” predictions

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We Can’t Predict Success Of InnovationsEven Boss Can’t Predict

How Do We Select Ideas ??

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SelectIdeas

Prototyping

ExperimentAt low-costAt high-speed

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What Is An Experiment?

Experiment is about assumption testing

What Is the Outcome Of An Experiment?What works under what context and what does not workLearning

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4 types of risks of every

innovation

Need risk

Real Need?

Commerci-lization

Do we have the technology?Technology

Production risk

Can we scale this?

Can we monetize

Source: Managing product and service development, Stefan Thomke, McGraw Hill, 2007

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Examples

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Bank of America

Long perceived waiting time after 10min

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Bank of America

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Source: The ten faces of innovation, Tom Kelley, Profile books, 2007

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SelectIdeas

Prototyping

Exercise 3Select any 2 ideas and

generate Low-cost High-speed experiments

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What is it validating?What is the cost & speed?

For your experiment

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Cost Is The Only Measure?BIG NO

Word Of Caution

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Recap1 Validated learning

Leap of Faith2

Low-cost experiment3

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