A Systems View Across Time and Space
Step | Purpose | Tools | Outputs | Next Step |
---|---|---|---|---|
0. Start | To identify "Wicked Problems" | Big Idea | ||
a) Empathise | Observing and engaging with people to understand them on a psychological and emotional level | Immersion; Observation; Interviews | Broad understanding of existence of 'Wicked Problem(s)' | 0b |
b) Define under-served needs | To define the big user problem that your team needs to solve | 5 Whys | Problem statement | 0c |
c) Ideate solution | To create your 'Big Idea' to address the wicked problem | Problem Statement (1b); Brainstorming; Mind mapping; Provocation | 'Big Idea' to address problem | 1a |
1. Observation | To discover existence of potential market | Customer profiles and personas | ||
a) Big Idea prototype | To clearly explain 'Big Idea' to potential customers and elicit general feedback | Prototype (clear description of big idea) | 1b | |
b) Test existence of segment | To ask, "Does the idea suitably address the problem?" | Prototype (1a); Surveys | Explicit feedback from potential customers | 1c |
c) Understand segment needs | To understand the needs of the customers/users in relation to the problem statement (for each segment, if more than one) | Prototype (1a); Immersion; Observation; Interviews | Implicit feedback from potential customers; Needs statement | 1d |
d) Define customer profile | 1. To segment customers/users into groups defined by their needs 2. To create a customer profile for each segment type | Needs statement (1c) | Customer profile for each segment; Personas for each segment | If customer profile is fully defined: 2a; else: 1e |
e) Ideate | To refine Big Idea in-line with customer/user feedback | Prototype (1a); Needs statement (1c); Customer profiles (1d); Personas (1d); Brainstorming; Mind mapping; Provocation | Improved 'Big idea' to address problem | 1a |
2. Customer Discovery | To classify and prioritise market segments | Understanding of Customer Pains and Gains | ||
a) Rough prototype | To demonstrate 'Big Idea' to target customer segment and elicit specific feedback | Needs statement (1c); Customer profiles (1d); Paper-prototypes; "Wizard of Oz" prototypes | Rough prototype that allows user to interact with your 'Big Idea' | 2b |
b) Test in each customer segment | To discover implicit needs (pains and gains) of each customer segment | Prototype (2a); Immersion; Observation; Interviews | List of pains and gains for each customer segment | 2c |
c) Understand customers | To understand the significance of the pains and gains of the customer segment | Prototype (2a); Immersion; Observation; Interviews | Understanding of the importance of the pains and gains that you are trying to address | 2d |
d) Define pains and gains | To define and prioritise the real (implicit) needs (pains and gains) of each customer segment | Prioritised list of pains and gains for each customer segment in relation to the problem being addressed | If pains and gains fully defined and significant: 3a; else if pains and gains fully defined and not significant: 0c; else: 2e | |
e) Ideate | To improve prototype or method to enable better elicitation of user-needs in relation to the problem statement | Needs statement (1c); Customer profiles (1d); Brainstorming; Mind mapping; Provocation | Improved prototype or method that allows user to interact with your 'Big Idea' | 2a |
3. Value propositions | To define how you will create value for your customers | Value proposition(s) | ||
a) Prototype | To describe your value proposition | VP canvas; Prioritised list of pains and gains (2d) | Filled Value Proposition Canvas for each customer segment; Value proposition statement | 3b |
b) Test problem–solution fit | To verify alignment between pains and pain relievers and gains and gain creators | VP canvas; Prioritised list of pains and gains (2d) | Focus on most important pain relievers and gain creators for creation of value for each customer segment | 3c |
c) Understand perception of value | To understand how your potential customers perceive value in your big idea | VP canvas; Day in the life exercise; Surveys; Immersion; Observation; Interviews | Qualification of the value, to each customer segment, of your big idea; Understanding of the importance of each of the identified pains and gains; Understanding of the ability of your value proposition to reduce pains and create gains | 3d |
d) Define pain reducers and gain creators | To refine value proposition to focus on the most important pain reducers and gain creators | VP canvas | VP canvas with value proposition(s) fully aligned with customer needs | If pain reducers and gain creators fully defined and align with pains and gains: 4a; else if pain reducers and gain creators fully defined and not aligned with pains and gains: 0c; else: 3e |
e) Ideate | To improve your value proposition | VP canvas; Prioritised list of pains and gains (2d); Brainstorming; Mind mapping; Provocation | Updated Value Proposition Canvas | 3a |
4. Relationships and Channels | To determine how to reach your customers and the kind of relationship(s) they expect | Knowledge of market size and reach; Communication and engagement strategy | ||
a) Prototype | To test communication and customer engagement methods | Landing pages; Social media; Industry data | Provisional communication and engagement strategy; Prototype elements (could be a web landing page, social media page, podcast, tradeshow stand, etc.) | 4b |
b) Test | To verify efficacy and potential reach of channels | Web analytics; A/B split testing; Industry data; Interviews with channel partners; Surveys | Quantification of potential reach of channels for communication of your value proposition | 4c |
c) Understand | To understand how your customers can be reached and the type of relationships they expect | Prototype (4a); Immersion; Observation; Interviews with customers | Qualification of customer relationship types for delivery of your value proposition | 4d |
d) Define relationships and channel types | To define your potential market reach and strategy to achieve it | Growth funnel (Acquisition, Activation, Retention, Referral and Revenue (AARRR)) | Size of market and reach potential (TAM, SAM, SOM); Communication and engagement strategy | If relationships and channels fully defined and fit value proposition: 5a; else: 4e |
e) Ideate | To improve size of market and reach potential (TAM, SAM, SOM); To refine communication and engagement strategy | Brainstorming; Mind mapping; Provocation; Landing pages; Social media; Industry data | Improved prototype inputs or method for testing of communication and engagement strategy | 4a |
5. Revenue Streams | To understand your required and expected revenue streams and the impact of their variation | Revenue metrics and risk profile | ||
a) Prototype | To model baseline revenue forecasts | Innovation Accounting; Sales forecast; Income statement; Cash flow forecast; Balance sheet; P&L forecast | Revenue model | 5b |
b) Test viability | To understand impact of variation | Innovation accounting; Traditional financial forecasting and modelling methods | Understanding of the impact of variation of revenue | 5c |
c) Understand willingness to pay | To understand likelihood of variation | Industry data; Interviews with channel partners; Competitor research; Interviews with customers | Understanding of the likelihood of variation of revenue; Validation of forecasted revenue | 5d |
d) Define revenue metrics | To define revenue metrics, willingness of the customer to pay, and associated risk | Innovation accounting; Forecasting | Defined, validated revenue metrics; Revenue risk profile | If revenue metrics and customer willingness to pay fully defined: 6a; else: 5e |
e) Ideate | To improve modelled revenue forecasts | Revenue model; Brainstorming; Mind mapping; Provocation | Improved revenue model inputs | 5a |
6. Key Activities | To define the activities required to deliver the value proposition | Activity plan and timeline | ||
a) Prototype | To record activities required to deliver value proposition | Activity plan | 6b | |
b) Test ability to deliver value proposition | To identify whether the activities deliver each element of the value proposition, including all pain relievers and gain creators, as well as facilitating channels and customer relationships and business activities such as accounting, HR and legal | Activity plan (6a); value proposition canvas (3d); Communication and engagement strategy (4d); Revenue metrics (5d) | Full list of required activities | 6c |
c) Understand shortfalls and waste | To understand which necessary activities are unprovided or unnecessary activities are included | Activity plan (6a); value proposition canvas (3d); Communication and engagement strategy (4d); Revenue metrics (5d) | 6d | |
d) Define scope of activities | To define and prioritise all necessary activities and their relationships with business operations and deliverables; To define sequence and timeline of activities | Activity plan (6a); value proposition canvas (3d); Communication and engagement strategy (4d); Revenue metrics (5d) | Prioritised activity list; Activity relationship plan; Project plan/timeline | If scope of activities fully defined and delivers value proposition and feasible: 7a; else if scope of activities fully defined and not feasible: 0c; else: 6e |
e) Ideate | To identify how to ensure delivery of value proposition whilst minimising activities and eliminating waste | Activity relationship plan; Project plan/timeline ; Brainstorming; Mind mapping; Provocation | Improved activity plan inputs | 6a |
7. Partners and Resources | To understand which partnerships & resources are needed to deliver the value proposition | Operational resources and requirements plan | ||
a) Prototype | To identify which resources and partnerships are needed to complete all activities | Activity plan | Activity relationship plan; Project plan/timeline with resources allocated; | 7b |
b) Test feasibility | To uncover which activities can be fulfilled with exiting or planned resources, and which need to be outsourced | 7c | ||
c) Understand resource needs | To understand the advantages and disadvantages of adding resources or outsourcing for each activity | Project plan; Risk analysis; SWOT analysis | Requirements analysis | 7d |
d) Define operational requirements | To define operational strategy | Operational resources and requirements | If operational requirements for partners and resources fully defined: 8a; else: 7e | |
e) Ideate | To improve operational strategy by playing on strengths and reducing risk | Brainstorming; Mind mapping; Provocation | Improved activity relationship and resource plan inputs | 7a |
8. Cost Structure | To understand the costs in delivering the value proposition | Business model | ||
a) Prototype | To model baseline cost forecasts | Innovation Accounting; Sales forecast; Cash flow forecast; Balance sheet; P&L forecast | Cost model | 8b |
b) Test financial assumptions | To test reliability of assumptions | Industry data; Enquiries with suppliers; Competitor research | Understanding of the likelihood of variation of costs | 8c |
c) Understand impact of variation | To understand impact of variation | Innovation accounting; Traditional financial forecasting and modelling methods | Understanding of the impact of variation of costs | 8d |
d) Define known and unknown costs | To define financial cost metrics and associated risk to viability of delivery of value proposition | Innovation accounting; Forecasting | Defined, validated cost metrics; Cost risk profile; Business model | If known and unknown costs fully defined and viable: 9a; else if known and unknown costs fully defined and not viable: 6a; else: 8a |
e) Ideate | To improve modelled financial cost forecasts and reduce risk | Assumption confidence | Improved inputs to cost model | 8a |
9. Implementation | To deploy the MVP or added feature | Product | ||
a) Development and Deployment | To develop and deploy MVP or added feature in-line with business model (8d) | Resources; Partnerships; Business model (8d) | Product | 3b |