Beruflich Dokumente
Kultur Dokumente
TO INNOVATE YOUR
WAY TO SUCCESS
By Jacob Nielson of
www.TheInnovativeManager.com
2
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10 PROVEN METHODS
TO INNOVATE YOUR
WAY TO SUCCESS
Hi Fellow Innovator,
Thank you for downloading my free ebook. In 2011 I had an experience that
changed my life forever. I was hired by a large organization to study innovation
methods and help the company transform itself into an innovation powerhouse. I
spent every day going to work searching online, reading books and summarizing
all my material into PowerPoint slides that I would present to management. It was
an amazing experience and I feel so grateful and lucky that I had it. When that proj-
ect ended, I was hired to put those frameworks to use as a new product manager
for one of the company’s most important product lines. Ever since then, I’ve been
implementing those frameworks and learning first hand which ones work and which
ones don’t. The following are the 10 best that I’ve found so far that I know from per-
sonal experience actually work.
Whatever your goals are with this book, whether it be to start a business or boost
your career within a business,
I wish you the very best and
hope that these materials can If you would like to reach out to me
help you in your journey. for whatever reason, please feel free to do so via
email, Twitter or Facebook at the addresses below.
Jacob Nielson I’d love to hear from you!
Email: jake@theinnovativemanager.com
Twitter: @jakenielson
Facebook: facebook.com/theinnovativemanager
Google Plus: Profile Link
Table of contents
Introduction..................................................................................... 5
4. InVENNtion................................................................................ 11
7. SCAMPER ................................................................................ 20
Introduction
I have combed the internet, spoken with numerous innovators, worked with consul-
tants and worked in marketing and product management for years all while in search
of the highest quality tools and methods for innovation that I could find. What I found
throughout this journey has changed my life and helped me think differently about
business, products and entrepreneurship ever since. Below is the list of some of the
best content that I found - I hope these ideas become as useful for you as they have
been for me. Please note that some of the concepts listed below are touched on brief-
ly while others are given more extensive treatment. I plan to cover each one individual-
ly in subsequent blog posts but for now I wanted to give you exposure to the ten best
frameworks that I have come across so far. After you’ve finished reading this ebook,
I would love to hear some of the ideas and tools you have found to be useful as well.
Feel free to send me an email or a message on Facebook with your thoughts.
Sophisticated Users
Average Users
Basic Users
myself to use it, I started looking for other options. As I searched the internet I came
across Evernote. It was a nice, simple and free web-based note taking program. I
started using it and discovered two things:
99Evernote was far less sophisticated than OneNote (no Office integration)
99It was simple and easy to use
99Best of all, it was free
After a while I found myself naturally gravitating toward using Evernote and leaving my
pen and paper behind. Evernote as a company has continued to prosper and today is
a powerhouse brand in note taking software.
This story goes to show that anytime a group of customers is overserved, either by
too many features, cost or complicated interfaces, there is a disruptive opportunity for
an entrepreneur to create a simpler, more cost effective solution.
The way out of this dilemma is to go down the road of cannibalizing your existing
products. For many companies, this is a gut-wrenching decision that requires some
soul searching. As an example, think of how Garmin, the GPS manufacturer, felt when
Google came out with Navigation built into Android? By then it’s almost too late. How-
ever it makes me wonder if inside of Garmin did they ever have the conversation of
whether or not they should go into purely software based navigation? I can imagine
that if they did have that conversation they may have concluded it was a bad idea
because it would cannibalize their lucrative hardware sales. Unfortunately I don’t know
what exactly happened but whatever decision they came to, they did not adequately
anticipate Google’s entry into navigation and they are suffering because of it.
Conclusion
This theory is so powerful that I plan to expand on in much more on the blog as well
as in subsequent ebooks. I am currently finalizing an overall process of how to use
this concept to your advantage and once that is done I will offer an ebook on it. Stay
tuned...
necting the dots is simple: everyday you experience new things whether you recog-
nize it or not. Innovation can come when you connect experiences you have with what
you are trying to accomplish. Another powerful example of this principle is the story
of Philo Farnsworth who while plowing a field on his family farm noticed that the lines
on the field eventually formed an image - this insight led him to the concept of forming
images on a screen by scanning a series of lines which later became the television.
To put this idea to work for you, consider the following areas of your life: education,
— Steve Jobs
work, hobbies and other interests. These categories provide broad buckets to use
in identifying what makes you unique. As you fill out these buckets, preferably using
images and other visualizations, start to think through how some of these might be
connected. In Philo Farnsworth’s case, two major things in his life were science and
farming. Later on he decided to focus his science efforts around the idea of movable
images, or television. As he thought through the experiences he had while plowing as
a farmer he realized that the lines created in the field would generate an image when
looked at from a distance. This insight led him to the idea of creating images through
scanning and displaying a series of lines electronically. This led to the first electronic
television.
Connecting the dots is a simple but profound way to spark your personal creativity
and maximize the unique combination of experiences you have had in your life to cre-
ate something new and useful for the world.
4. InnVENNtion™
By Jacob Nielson, Creator of The Innovative Manager
While studying various stories of innovation, I was surprised to hear a few recurring
themes. One of these was the idea of connecting the dots. Another was the con-
cept that innovation occurred at the intersection of two or more generally unrelated
products or ideas. For example, when Apple announces a new product, often they
will mention the idea that their company is at the intersection of technology and lib-
eral arts. To illustrate this intersection, I like to use Venn diagrams (hence the term
InVENNtion™) because thinking through the implications of the diagram can lead to
new insights. So if we think about this intersection between technology and liberal
arts, we begin to realize it’s inspirational power. For most people, technology is often
viewed in the following terms:
• Science
• Engineering
• Hardware
• Electronics
• Software
From this list you can see that technology is a “hard” term that often connotes the
embodiment of various technical components. At its most basic level, technology is
most often thought of in utilitarian terms - something that could be used to make living
life more efficient.
Now consider liberal arts. Words often ascribed to the term liberal arts include:
• Literature
• Philosophy
• Poetry
• Fine art
• Calligraphy
With the term liberal arts you feel a sense of beauty, elegance and refinement. Addi-
tionally, you can see that this term is comprised of things that uplift and inspire. In its
truest form, liberal arts can be thought of as something that stirs the soul in a way that
makes living life more enjoyable and meaningful.
Now think about how those two terms - technology and liberal arts - could intersect.
The intersection would have to be something technical, science and engineering in-
tensive while also being beautiful, inspiring and philosophically meaningful. Sound
familiar? That is the exact description that many Apple fans ascribe to the majority of
their products. This is the whole idea behind InVENNtion™. By using this framework
it’s easy to see that Apple’s culture and design strategy sits squarely at this intersec-
tion. Even from the very beginning, Steve
Jobs had always enjoyed the beauty of
calligraphy. This is what drove him to
include sans serif fonts on the first Ma-
cintosh and is what led him to forming
teams of poets, musicians and artists to
work for him on many of his most famous
projects such as the iMac.
Adjacent Spaces
Though random associations can work, it’s often more useful to start with your own
industry, product or realm of expertise then associate it with what some like to call
“adjacent spaces.” These associations often happen much more naturally and can
lead to quick and highly feasible ideas. For example, most of Apple’s major innova-
tions have happened because they decided to enter a market (or “space”) that was
adjacent to their core computer market. In 2001, Apple entered the personal music
player market with the introduction of the iPod. In 2007, they entered the cell phone
business with the introduction of the iPhone. Rumors now swirl that Apple’s next big
thing will be an entry into the television market by introducing what some expect to be
called the iTV (the name “Apple TV” is already taken). Similar to what Apple did, most
businesses that have reached a revenue plateau, either through market share domi-
nance or because the market they are in is about to decline, look to expand by build-
ing out adjacent spaces and incorporating them into their businesses. What adjacent
spaces should your business consider entering? How long before those spaces con-
verge naturally regardless of what your business does?
This canvas is a graph that quickly illustrates the value curve your products provide
versus the competition across a number of metrics important to the customer. For
example, if we created a strategy canvas for smartphones the attributes along the
bottom might include processing power, screen size, thickness, battery life, camera,
sd card, etc. The y-axis would represent relative (e.g. 1-5) scores for each device
compared and a line would be drawn connecting the ratings for each attribute. After
creating a strategy canvas, Kim and Mauborgne teach that the pathway to success-
ful innovation lies in doing a unique combination of one to four things to your prod-
uct, namely: 1) Raise, 2) Reduce, 3) Eliminate, 4) Create. I’ll briefly expand on each of
these concepts.
Raise
Continuing the smartphone example, back in 2011, Motorola wanted to capitalize
on the storied Razr brand of old by creating the worlds thinnest smartphone. Toward
the end of the year, they announced the Droid Razr - a 7mm thin smartphone. This
was quite the engineering feat because at the time most smartphones were hover-
ing around 9-15mm. From a blue ocean perspective, Motorola essentially “raised” the
thinness of their design to a level previously unheard of for premium smartphones and
solidified a competitive edge for that product.
Though Motorola engineers may or may not have used the strategy canvas to come
up with this idea (they probably just wanted to repeat the success of the original Razr
flip phone), if they had used it they would have quickly identified their competitive po-
sition in the market and recognized ways they could stand above the crowd of smart-
phone releases.
The iPhone is another example of using “raise” to gain a competitive edge. With every
mid-cycle refresh of their iPhone models - when they add an “S” to the model - they
seem to usually focus on, among other things, vastly improving the camera on the de-
vice. I’ve owned both the Droid Razr and an iPhone 4S and the camera on the iPhone
4S was remarkably good compared with the Razr and other devices I’ve used.
Reduce
In some cases, especially with regard to disruptive situations, reducing the perfor-
mance level of a particular attribute is the right strategy. This is where the smartphone
example illustrates a design trade-off decision. For most smartphones the objective is
to maximize battery life. However, what if you decided to prioritize that objective lower
than the objective to make the phone as thin as possible? The result of that question
would be that you would end up “raising” the thinness of the phone at the expense of
the life of the battery. This is not the most desirable conclusion to reach but may still
yield a market advantage if you can claim the world’s thinnest smartphone like Mo-
torola did in 2011.
However if you think about the idea of reduction in light of disruptive innovation you
start to see an interesting corollary. In disruptive innovation a product reaches a point
where it is overserving the majority of its intended users. If you can identify the specif-
ic features or benefits that are overserved, using Blue Ocean strategy canvas you will
know which feature or benefit to reduce and what the overall product/benefit profile
should look like. To me, this is a fascinating use of the two frameworks and I will plan
to explore this in later detail on the blog.
Eliminate
Sometimes the best thing to do with an existing idea is eliminate elements and think
through what could emerge. In the smartphone example, Apple decided to completely
eliminate the SD card slot. But the idea of removing an SD slot isn’t a very game
changing innovation. However, when you start to think about what Apple eliminated
when they first introduced the iPhone - namely the physical keyboard - that was a
significant step. Another example of eliminate would be Redbox. For a time, Block-
buster ruled the movie rental business by having a nationwide brick-and-mortar store
presence. This wide distribution was credited for the company’s success and the main
reason it was hard for other rental businesses to compete. However, by the late 90’s
and early 2000’s, Redbox had decided that brick-and-mortar stores were not needed
and instead focused on the idea of distributing rentals through vending machines.
They basically eliminated the store and created a new value driver with the DVD vend-
ing machine. Later on companies like Netflix and Amazon took the idea of eliminate
one step further by offering rentals online.
The most important thing about the idea of eliminate is to think through it with a clean
slate perspective. In other words, don’t get caught in the trap of thinking that you
must leverage your existing resources with every new idea. The reason this is a trap
Create
Another tool in the Blue Ocean strategy framework is the idea of creating a new value
driver for the product or service in question. Back to the smartphone example, when
Google announced the Moto X in 2013, it offered something that had never been done
before with smartphones - complete color customization. Previous phones usually
came in either one or two colors at the most. With the Moto X, anyone could go on-
line and choose their own color scheme which would then be manufactured to those
specifications in Texas then shipped out from there. The max period of time from plac-
ing the order to getting the phone was promised to be 6 days.
Conclusion
With Blue Ocean strategy, innovators are able to systematically think through ways to
create value for their target customers versus the competition. Obviously with each
idea generated, more analysis would be necessary to validate whether those specific
ideas were valuable to customers but the Blue Ocean Strategy approach provides a
fast and analytical approach to ideation and innovation.
Subtraction
What if you removed a seemingly essential component from a product? What if some-
one removed the keyboard from a smartphone? Hint: the iPhone did this when it
launched without a hardware keyboard.
Multiplication
What if you took a key component of the product and added another copy of it? The
best example of this is the double (or triple/quadruple/quintuple) bladed razor. Shav-
ing razor companies such as Gillette and Schick have used the principle of multiplica-
tion to come up with blockbuster innovations. The key is - would another copy of this
component add value? In some cases, the answer could definitely be yes.
Division
What if you split the product (or service) apart into disparate components and re-ar-
ranged them in a new and unique way? One example of this is when car radio manu-
facturers (particularly the aftermarket radio manufacturers) started selling designs that
enabled the face of the system to be removed. Doing so enabled the owner to remove
the face and reduce the possibility of the car being broken into and having the ra-
dio stolen. The key here is to answer the question: would a modular approach to this
product or service add value to the consumer?
Task Unification
The idea of task unification is to assign a new and additional task to an existing prod-
uct or service. When Arm and Hammer realized their baking soda could be used as an
effective deodorizer for refrigerators, their marketing messages started reflecting this
and their sales took off. The product
was originally designed for baking but
customers realized another valuable
application and thus unified the addi-
“Can this product be
tional task of deodorizing with Arm and utilized for another purpose
Hammer baking soda. The key ques- that could add value to the
tion is: can this product be utilized for customer?
another purpose that could add value
to the customer?
Attribute Dependency
What if you could add or remove dependencies between variables in and around your
product? For example, turning on a light is usually dependent on someone flipping the
light switch. If you were a light switch manufacturer and wanted to improve your prod-
uct, perhaps removing that dependency would be a good place to start. That seems
to be the idea behind motion sensing light switches. In many commercial buildings
these products have been used to save time and energy. Conversely, in some cases
it may be beneficial to create new dependencies in a product. The oft sited example
of this is transition lenses. Before transition lenses if the sun’s brightness changed
you would need to remove your glasses and put on sunglasses. There was no linkage
between the variables that mattered to the performance of the glasses. With transition
lenses these variables were linked (a new dependency was added) and the glasses
performance responded accordingly.
7. SCAMPER
By Alex Osborn, Original Creator of Brainstorming
SCAMPER is an acronym for a list of thought provoking tools to help facilitate ideation
and innovation development. The components of SCAMPER are:
Combine
What other components, services, items, etc. could I combine or integrate with this
product? Keeping with the smartphone example, what if you could combine a smart-
phone with a tablet by having the phone dock into the tablet (like Asus has done with
the Padphone). What if you could combine additional services such as internet radio
subscriptions with each smartphone sold and have the billing bundled together? An-
other idea would be to combine the functionality of a smartphone with the functional-
ity of an image projector. Or if you wanted to get really crazy, why not combine the
functionality of a smartphone with an umbrella? Could you build an umbrella into a
smartphone? Well...that might not be a very good idea after all but you get the point.
Adapt
How could the product adapt to meet different uses, scenarios, or conditions? For
example, how might tires adapt for use in the snow? Answer: studded tires. In keep-
ing with the smartphone example, how might a smartphone adapt if it were to be
used in places where there are no electricity or cell towers? Add satellite functional-
ity perhaps? Due to the lack of power it would also need built in solar charging or fuel
cell power of some kind. The point of the adapt part of SCAMPER is to help you think
through various scenarios which can prompt unique and interesting ideas. This works
with any product or service.
Magnify/Modify
What if you made an extremely large version of the product (Magnify)? When the iPad
first came out there was a funny picture that circled the internet which showed a guy
who had taped a magnifying glass to his face while he was using his iPhone. The
caption read “The New iPad.” The picture has some truth to it. Though development
for the iPad technically started before development of the iPhone (the iPhone’s touch-
screen came from that work), after the iPhone came out the easiest development
route for the iPad was to simply enlarge some key components such as the screen
and battery. Other ways to apply this principle include asking yourself things such as
what other ways could this product be modified? What other meaning, color, motion,
sound, smell, form or shape could it embody? Would any of these new embodiment
add value to the consumer?
notifications? I suspect for most people this would constitute major privacy concerns
but it’s another example of how you could put to other uses the idea of home security.
Eliminate
Leonardo Da Vinci wrote “Simplicity is the ultimate sophistication.” The principle of
eliminate tends to help innovators steer towards a more simple and refined approach
to their product. Too often with new product development programs it becomes re-
ally easy to get caught up in the trap of over-designing something. Adding too many
features and making the product way too complicated for end users to use. Con-
versely, simply by thinking through things to eliminate you can come up with new
ideas and embodiments that might make sense. Removing the hardware keyboard
on a smartphone when the iPhone came out is a key example of this. One key point
of this idea is that you must think through eliminating things that are normally thought
of as essential to the product’s design and functionality and then come up with solu-
tions of how to deal with those situations. Another example is the number of buttons
on a device. Throughout the 80’s and 90’s it seemed that devices were designed with
as many buttons as possible. The more the better. In the mid 2000’s though, some-
thing happened. People started shunning the buttons and wishing for more simplicity.
Around this time BMW came up with what they called the iDrive - a joystick and but-
ton to control your entire car. Initially reviews were mixed because it took some getting
used to but as time went on the system gained popularity and now the system makes
use of voice controls - further reducing the need for even iDrive itself. Perhaps one
day there wont need to be any buttons in a car because the car would drive itself and
you could use voice commands to make it do certain things.
Reverse/Rearrange
This is one of the more quirky and interesting tools in SCAMPER. Think of what you
would do if the product was used in reverse? Think again about a car. What if the
vehicle was only driven in reverse? Well driving with your neck cranked all the way
around the entire time would get old and painful after a while. In that scenario, it would
be much better if there was a display of what’s in the rear of the car built into the
dash. That’s just one idea. Another thought is that it would be nice if the rear wheels
turned in addition to the front wheels. Four-wheel turning is now available on some
luxury cars and we all know how rear displays are becoming ubiquitous on newer
cars. These are just some of the ways to use this method. Another interesting example
is that of an upright stapler. I don’t know why it took so long for someone to think of
it but normal staplers take up plenty of space on a desk compared to the upright ver-
sions. Perhaps the inventor came up with the idea using the SCAMPER method.
Associating
This is the ability to connect seemingly unrelated ideas in ways that can combine into
a new and useful concept. This skill is what Steve Jobs had an abundance of and is
essentially the same principle of “Connecting the Dots” which we discussed earlier.
The skill of associating things is most pronounced in creative people. As Steve Jobs
once said “Creativity is connecting things,” the essence of creativity is simply making
new and unique combinations of things that already exist. There are two keys to build-
ing the skill of associating:
99Have Many and Varied Experiences - Having many and varied experiences is
like filling your mind with creative fuel. One of the best and most efficient meth-
ods to having many and varied experiences is travel. Many entrepreneurs have
started successful companies simply by traveling somewhere and discovering
something new and useful that they could bring back to their homeland.
99Consciously Mash-up - Travel alone doesn’t make you more innovative or cre-
ative. It’s only in burning the fuel of creativity do you experience bursts of inno-
vative thought. The most effective method I have found to burn creative fuel is
to consciously write down observations and think through possible connections.
As you do this over and over you will eventually train your mind to do it automat-
ically to the point where you won’t need to write them down and inspiration will
flow freely.
Questioning
In the study, the authors cite this great quote by Peter Drucker: “The important and
difficult job is never to find the right answers, it is to find the right question.” Success-
ful innovators have always questioned the status quo and are rarely, if ever, satisfied.
Most often what happens is the innovator will experience something that annoys or
frustrates them and begin to ask “Why? Why does this simple service require so many
steps? Why do I need to read an instruction manual to know how this works? Why
not eliminate steps and the instruction manual altogether?” These are the kinds of
questions that spawn great entrepreneurial ideas. One example the authors cite is the
founding of Dell. While attending college, Michael Dell wondered why most comput-
ers cost five times more than the sum of their parts. As he explored this question he
discovered a new opportunity to build a streamlined computer company which later
became Dell.
Observing
Observation is a skill that separates good marketers from great marketers. Some of
the most profound ideas came from the simplest observations. The founder of Intuit
started the company after observing how painstakingly difficult it was for his wife to
keep track of their family finances. Upon observing this he decided there must be a
better way and eventually created Quicken. Later on, as an interesting side note - Aar-
on Patzer, the founder of Mint.com, got his inspiration for creating Mint after becoming
frustrated by how difficult it was to use Quicken. Later Mint was acquired by Intuit and
Patzer was put in charge of product innovation for the company. Just because some-
one has already created a solution for a problem, doesn’t mean there is no more room
for innovation or a better solution to take its place.
Experimenting
Networking
The idea of networking is well entrenched in modern business lingo. However, this
is not the kind of networking you may be thinking of where you meet people, put on
your most awesome face and hope they think you’re someone worthy of their time
(and money). Innovators don’t start networking with the intent to trade money or jobs,
rather they do it to trade ideas. In conjunction with the concept of associating and ob-
serving, innovators often try to put themselves in situations where they can meet peo-
ple who have a unique background and an interesting perspective on the problems
people face. Meeting these types of creative, inventive, thought-provoking people on
a regular basis helps free your mind from your own limited perspective and see things
in a new light. By doing this, what you’ll find is that often the answers to your industry-
specific problem will come from outside your industry. This is why many I highly en-
courage people to view or attend TED talks. These talks are a great way to expand
your knowledge domain to cover multiple viewpoints and foster new ideas.
So what? who cares? why you? is based on the key questions people ask when eval-
uating the potential of new ideas. Each question represents a step in the value discov-
ery process and is anchored by a visual tool or framework to explore, model and map
the commercial potential for a new idea. I highly recommend you check out her web-
site if you want to learn more. Below is just a short list of the questions in the process
that help entrepreneurs clearly define what their idea is, who the customer is and why
you have the right stuff to make it happen.
So What?
As every entrepreneur and innovator knows, when you have an idea you are passion-
ate about it is not always easy to explain what the idea is to others in simple terms. To
make things easier, each step is split up into three sub-questions:
99What’s Your Idea? - Think of this as the headline of a newspaper. When you
launch your great new idea, what would you want the headline say if/when :-) it
appears on the front page of the New York Times? For example, when Nest first
announced their newly created learning thermostat, the headline on TIME maga-
zine was “’Nest’” Is The iPod of Thermostats.” With just that headline you know
several things: 1) Nest is something new that’s come out, 2) it’s sexy and easy
to use like an iPod and 3) it’s a thermostat. It’s that level of simplicity and clarity
that helps sell your idea to both customers and potential investors.
99What’s the Problem? - What problem does your idea solve? To think of this,
remind yourself how you came up with the idea in the first place. Was it to an-
swer a specific challenge like “How can I upload and share my pictures with my
friends faster?” (Instagram). By answering this question you are identifying the
reason anyone would ever be willing to pay money for the product. If you can’t
answer this question effectively, then you may need a new idea.
99Where does your idea fit? - This question relates to where does your idea fit in
the market of similar items. Would this be a premium product, a value product or
somewhere in the mid-tier? This relates well with my strategy framework of cost
vs benefit leadership. Would this be an idea that lends itself more towards cost
leadership or benefit leadership? Answering this question is key to knowing how
your idea will fit in when you take it to market.
Who Cares?
For every new idea, this is arguably the most important question to answer. Who, if
anyone, will care about your idea? A common mistake people make after coming up
with a new idea is asking their family members what they think about it. Many times
the response is less than encouraging, not because the idea is wrong but because
those family members are not part of the intended market. The idea could be fantastic
if it reached the right people but if it doesn’t get outside your immediate circle of fam-
ily/friends, it may not be well received. There are three questions as a part of this main
section:
99Who’s Your Customer? What specific people or group of people will want to
use this product? Too often budding entrepreneurs and marketers get caught
in the “everybody” trap. Occasionally when I work with others around market-
ing messaging and new product innovation we’ll come up with an idea and this
question will come up. Some will answer by saying “everybody is going to want
this!” Or “Everyone is our target market!” Wrong. There is zero chance that actu-
ally “everybody” will want some one thing. For example, let’s pretend we work
for a toaster company and we came up with a new, faster and safer way of mak-
ing toast. Who is going to want this thing? Well, “everybody!” some will say. “Ev-
eryone eats toast, right?!” No. Not everyone eats toast. And not even everyone
who eats toast actually makes toast. And not even everyone who makes toast
uses a toaster. Does a 4 year old kid eat toast? Yes but he or she doesn’t make
toast, the parent makes the toast. So how do we go about figuring out who
will want this new toaster? The answer is to start with someone you know - an
actual person with a name. If you can’t think of someone you know personally
who would potentially want the product idea, go online and search forums for
people who deal with the issue and there’s a good chance you’ll find someone
who wants what you’ve come up with. Once you’ve identified at least one actual
person who you think would want this, then you can start making more general
assumptions. Start specific then go general. Never the other way around.
99Where’s The Money? - It’s surprising how many entrepreneurs will start a busi-
ness with no initial idea of how it will actually make money. Don’t let that be you.
Figure out exactly how you plan to generate revenues and have a specific plan
for how you plan to create and grow your business’ revenue streams. If it’s an
online business, do you plan to generate ad revenues? Course revenues? Ebook
revenues? Etc. If you have a new service idea, will you charge your customers
monthly for access to the service or will you charge them for every time service
is rendered? Are there multiple streams of income possibilities for your idea?
If so, what are they and how will you build them into your business model? As
the primary investor in your idea - even if you’re not investing money, you’re still
investing time - you should have a good idea of how you plan to get a return on
that investment.
Why You?
This set of questions revolves around answering questions designed to help you clari-
fy exactly why your idea has advantages over others, why you have the right team and
resources in place to make it happen and why you are the uniquely suited to create
and succeed in this new venture.
99Who’s On The Team? - Who are the people that make up the business? Are
they the right people? If so, why? What role will each person perform in creat-
ing the business? How will they make decisions when there is a disagreement?
What are the skills of each team member and how do they complement each
other?
99What’s Your Story? - What story in your life helps illustrate how you are per-
fectly suited to create this solution? What experiences did you have in coming
up with the idea? Have you overcome the problem yourself in a meaningful and
repeatable way? What makes you fit for entrepreneurship? The better story you
have to tell the market, the more your potential customers will give you cred-
ibility. If all you’ve done is read a book about how to do something and you now
expect others to believe you are an expert, you’ll face an uphill climb. However,
if you have dealt with the same problem as your customers and overcome it in a
Hear
During the “hear” phase you will do a deep dive into researching the people who you
want to solve a problem for. You’ll decide who to study, observe them while they ex-
perience the problem they face and see how they currently deal with that problem.
Then, ideally, you will start to gain empathy for them and their situation and you’ll
capture their experiences as stories. This experience of immersing yourself into your
potential customer’s world will inform your innovation efforts throughout the process.
During the hear phase, there are several steps to help you capture your customer’s
needs:
99Identify A Problem To Investigate (The Design Challenge) - The first step is to
have a customer problem in mind that you want to investigate and understand
better. For example, if you want to create a new product to help people preserve
and store food more efficiently, you should establish that as the goal of the study
99Write Down Existing Knowledge About The Problem - Chances are that you
already know a thing or two about the problem you want to study. Document
what you already know about the problem and identify gaps in your own knowl-
edge about the problem so you know what to focus on when going through the
observation phase.
99Identify People To Speak With - When figuring out who to talk to about the
problem you identify, it’s often most helpful to speak with those people who are
at the extremes of the issue. It’s always good to get a range but if you can get
the extremes as well, they will usually be most vocal about the specifics of the
problem and how they dealt with it.
99Choose Research Methods - There are a variety of tools you can use when
engaging with your potential customers. Among these are:
• Individual interviews
• Focus group
• In context immersion (becoming the customer)
• Ethnography (in-depth observation of the customer and their experience)
• Expert interviews
99Develop An Interview Approach - Just setting up an interview without knowing
how to approach the topic is a recipe for useless data. Use these basic interview
principles to get the responses you need:
99Open Specific - Help your participant get used to the process by asking specif-
ic questions they can easily answer such as their name, age, favorite color, hob-
bies, or anything specifically related to the problem such as how they currently
solve it, etc.
99Go Broad - After the person or group is warmed up, ask them general questions
that will elicit broad responses. In this stage you want to ask things like what
their goals are and how they view the issue from a grand scale. For example, if
I were creating a new smartphone I might want to ask a broad question such as
“How do you communicate with others? What are some right and wrong ways
to communicate with other people?” Their responses will be broadly applicable
to the problem you’re trying to solve and will provide you with the context they
experience.
99Probe Deep - Start to dive into the specifics of what they experience. In the
smartphone example, ask probing questions that help them elicit specific re-
sponses and provide detailed examples. These responses will be incredibly use-
ful to you later on in the design process.
99Develop Your Mindset - Make sure you have cultivated a healthy perspective be-
fore going into this research phase. Avoid approaching these interviews as fish-
ing for specific answers to validate your previous assumptions. Rather cultivate
what Steve Jobs referred to as a “Beginners Mind” and be ready to absorb data
like a sponge.
Create
The create phase is where you summarize the research you’ve done, brainstorm pos-
sible solutions and begin creating simple and quick prototypes.
99Create User Personas - During your research you should have come across a
variety of potential customers. As you think about each potential user you met
and interacted with (or learned about), try to group each user into categories.
For each category develop a user persona that typifies that category of users.
Most marketers think of these categories of users as market segments. Use
these customer personas, which represent a market segment, to guide you
as you begin to clarify the problem they face and generate potential solutions
to that problem. Give each persona a name and a face (they need not be real
names and the faces can be stand-ins) to make it easier to relate to them and
their needs.
99Share Stories - One of the most effective ways to understanding your custom-
er’s pain points is to write out specific stories that exemplify the problem they
face. For simplicity you can use the personas created in the step above as a
starting point for your stories. Pick a persona and then write out the story of that
person with regards to the particular problem you are trying to solve. List the
steps they took to arriving at the problem and then list the pain they experienced
when they applied the current solutions to that problem. Write these out as a
narrative of the persona as if they are a character in a novel that experiences
something that bothers them, leads them to wasting time or money or causes
them grief in some way. Don’t write the solution to the problem yet but be very
specific about the issues your persona faced. And if one of your research partic-
ipants had an experience that would typify a large segment of users, write their
story verbatim. The more specific and the more vivid, the more useful the story
will be later on when coming up with solutions.
99Identify Patterns - As you develop personas and user stories, patterns will of-
ten emerge. Identify these patterns and document them as key insights into your
potential customers experience. Look for the following types of patterns from
your research:
• Processes - Identify and document the overall, end-to-end process the user
experienced. Use a process diagram to help guide your thinking. Identify
steps such as how the user came to know they needed a solution, how the
current solutions presented themselves and how they set about implement-
ing those solutions. The overall customer purchase process is the most
obvious way to approach documenting this process.
• Cycle - Look for cycles that occur throughout the process and determine
how often the process is repeated and whether or not the entire process is
better represented as a cycle.
• Hierarchies - Look for ways the user prioritized things throughout their ex-
perience. List how they prioritized their decision making and identify how
those priorities influenced their overall satisfaction of meeting their needs.
• Matrix - Create tables or matrices to help clarify some of the choices the
user had to make throughout the process.
• Relationships - Use Venn diagrams to identify any key overlapping relation-
ships in your research and to clarify alternative choices the user could have
made.
99Identify Opportunities - After synthesizing the research above into well-docu-
mented personas, stories and patterns you are now equipped to identify specific
areas of opportunity. This step is essential because it helps focus your brain-
storming efforts toward solving a specific set of problems that your customer
faces and helps clarify your users context and environment which will help en-
sure that you don’t come up with solutions that are impractical when consider-
ing the users environment at the time of need. Identify these opportunities by
asking the following questions:
• Are there steps in the process that take an inordinate amount of time? Can
we improve that time with a new solution?
• What are the highest priority items that the user is unsatisfied with?
• Etc.
99Brainstorm New Solutions - You’re now ready to begin the brainstorming ses-
sions. If brainstorming ideas as a group, try to follow the “Seven Brainstorming
Rules:”
• Defer Judgement - There are no bad ideas during the session.
• Encourage Wild Ideas - No matter how impractical they may seem.
• Build On The Ideas of Others - Use the term “and” instead of “but.” “And”
is a building block for ideas, “but” is a wrecking ball.
• Stay Focused On Topic - Be disciplined and focus on solving the problem
at hand.
• Be Visual - Try to engage both the creative and logical side of the brain.
• One Conversation At A Time - Allow everyone’s ideas to be heard.
• Go for Quantity - Worry about quality later, right now is a time to air a multi-
tude of thoughts that can be built upon. Filtering happens later on.
99Make Ideas Real - After you’ve come up with a set of ideas, now it’s time for
early prototyping. Don’t worry, this doesn’t mean you need to actually create a
finished and fully operational prototype but you should have enough information
to create a quick and rough prototype - even if that means just a diagram or a
drawing. Use whatever tools you have available and build a rapid prototype that
you can show to someone. A sketch on the back of a napkin is the most famous
example of a rapid prototype. Use cardboard, string, tape, a whiteboard, what-
ever to make your idea one step closer to reality.
99Gather Feedback - Iteration and quick, validated learning is one of the most
important aspects of successful innovation. After you’ve created your rough
and rapid prototype, show it to people who are part of your list of potential cus-
tomers. Ask for their feedback on what they think of it and how it could be im-
proved. When gathering feedback, remember these key principles:
• Don’t Sell the Idea - You’re goal is not to make a sale but to improve your
idea.
• Ask Participants To Build On The Idea - Incorporate any ideas they have
into the prototype to improve the overall quality of the idea.
Deliver
After understanding the customer’s needs, identifying opportunities and creating rapid
prototypes, you are now ready to start creating the solution. However, keep in mind
that throughout this phase you will still be learning and iterating as you go because for
each prototype you’ll receive feedback and be able to incorporate that feedback into
the next iteration until the solution is practically bullet proof.
99Develop A Sustainable Revenue Model - For any new product or business to
survive, it must be able to generate revenue in a sustainable way. In this step
you must do the following:
• Know the value of the solution to the customer. What is the maximum they
would be willing to pay for this?
• Know what the sources of revenue will be. Will customers pay, sponsors,
advertisers, retailers, wholesalers, etc?
• Identify how the solution benefits each stakeholder.
99Identify Capabilities Required To Deliver Solution - Most products require a
team of people with various skill sets and abilities in order to deliver the finished
product. In this step you must think through the entire value chain and identify
exactly what skills will be needed in order to deliver each step. For example:
• How will you distribute your solution - when, where and how do you expect
your customers to experience your solution?
• What engineering, financial, manufacturing, marketing and sales skills will
be required in order for this solution to be created and executed reasonably
well?
• Who should you partner with in order to deliver the solution and comple-
ment your skills?
99Plan A Pipeline of Solutions - To survive and thrive as a business, you must
have a plan for the future. Create a pipeline of solutions that you will deliver over
time as you gain momentum and better understanding of your customers needs.
Conclusion
Human Centered Design has been around for decades but no one knows how to do it
better than IDEO. If you want to learn more, I suggest visiting their website and down-
loading some of their free white papers on HCD.
Thanks again for downloading this book and I hope you enjoyed it as much as I en-
joyed making it!
Jake Nielson