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Experimenting
Enterprise
© 2013 BigVisible Solutions
in the
2© 2012 BigVisible Solutions
David J Bland
Startups consulted: 18
Twitter followers: 2179
Iterations of Coaching: 215
Speaker Vanity Metrics
Brian Bozzuto
Blogs & Articles Written: 77
Presentations Delivered: 46
Teams coached: 54
© 2013 BigVisible Solutions 3
This session doesn’t
guarantee a 100 million
dollar success, but it should
help prevent a 100 million
dollar failure.
© 2012 BigVisible Solutions 4
A business model used to be static
and survived many years.
38
13
4
3
2
0 10 20 30 40
Radio
TV
Internet
iPod
Facebook
Years to Reach a Market of 50
Million
© 2012 BigVisible Solutions 5
© 2012 BigVisible Solutions 6
The Lean Startup provides a
scientific approach to creating
and managing startups and get
a desired product to
customers’ hands faster.
-Eric Ries
Entrepreneur Intrapreneur
© 2013 BigVisible Solutions 7
Entrepreneur Intrapreneur
Skills
© 2013 BigVisible Solutions 8
© 2013 BigVisible Solutions 9
This is great in
theory, but it’s not for
B2B.
This is great in
theory, but I’m a
visionary.
EntrepreneurIntrapreneur
© 2013 BigVisible Solutions 10
Define the value proposition for:
Source: Adapted from Steve Blank
Buyer
User
Decider
Buyer
User
Decider
B2C B2B
© 2013 BigVisible Solutions 11
Are your users/customers:
Source: Adapted from Steve Blank
Aware of problem?
Actively seeking a solution?
Hacking together a solution?
Have $$$ for your solution?
© 2013 BigVisible Solutions 12
Can We Build It?
Should We Build It?
© 2013 BigVisible Solutions 13
Requirements = Hypotheses
© 2013 BigVisible Solutions 14
Source: Adapted from Cynefin
Simple
“Everyone Knows That”
Complicated
“Let’s consult the expert”
Complex
“Whoa, it all makes sense now…”
Chaos
“That still doesn’t make sense”
Work with experts to
inform our hypothesis
Run experiments to gain
new knowledge
© 2013 BigVisible Solutions 15
Safe Fail != Fail Safe
© 2012 BigVisible Solutions 16
Experiment with
product & process
© 2013 BigVisible Solutions 17
If you experiment just
to see what
happens, then you’ll
succeed at seeing
what happens.
© 2013 BigVisible Solutions 18
Be careful how you
structure your
experiments
© 2013 BigVisible Solutions 19
Image Source: Eric Ries The Lean Startup
Then here
Start here
Last here
© 2013 BigVisible Solutions 20
Image Source: Eric Ries The Lean Startup
Now
Execute
Quickly
© 2012 BigVisible Solutions 21
Experiment Template
For <customer segment>
I predict <outcome>
when I run <experiment>
© 2012 BigVisible Solutions 22
Experiment Example
For new customers,
I predict 10% increase in
conversion
when I offer a “no questions
asked” cancellation policy
© 2012 BigVisible Solutions 23
Experiment Guidelines
• Customer Segment (who)
• Up to / Limit Of (how many)
• Length of Time (how long)
• Financial Exposure (how much)
• Amplification & Dampening Measures
© 2013 BigVisible Solutions 24
Experiment Dashboard
ID Hypothesis Description Status Next Steps
01a
We predict
that adding
a refund
feature will
increase
conversions
Story 13c adds
refund label
and call to
action button
that puts
customer in
contact with
call center
agent.
Complete
0.2%
increase in
conversion
on cohort.
Meeting
with VP of
Ops to
discuss
strategy.
© 2013 BigVisible Solutions 25
“This is all great, but how
do we know what
experiments to run?”
© 2012 BigVisible Solutions 26
Iterative Product
+ Static Business Model
Failed Organization
© 2012 BigVisible Solutions 27Source: Alex Osterwalder
© 2012 BigVisible Solutions 28
? ? ???
?
?
?
?
?
?
?
“Let’s map out our existing business model”
Source: Adapted from Alex Osterwalder
tip: tell a story
© 2012 BigVisible Solutions 29
? ? ???
?
?
?
?
?
?
?
“Let’s validate our riskiest assumptions”
Source: Adapted from Alex Osterwalder
© 2012 BigVisible Solutions 30
This is most
likely your
Riskiest
Assumption
Source: Adapted from Alex Osterwalder
© 2012 BigVisible Solutions 31
This is most
likely your
other
Riskiest
Assumption
Source: Adapted from Alex Osterwalder
© 2012 BigVisible Solutions 32
What happens when we
subtract costs from revenue?
Source: Adapted from Alex Osterwalder
© 2013 BigVisible Solutions 33
“Okay, now we have a big
list of assumptions, how do
we decide where to start?”
© 2013 BigVisible Solutions 34
experiment
experiment
experiment
experiment
experiment
experiment
experiment
“Let’s dot vote!”
(you could, but that’s pretty subjective)
© 2013 BigVisible Solutions 35
time
learning
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
experiment
(ok better, but what are they tied to?)
© 2013 BigVisible Solutions 36
Now we have a focusing mechanism
focustime time
learninglearning
experiments experiments
experiments experiments
© 2013 BigVisible Solutions 37
And assumptions that need validation
focus
experiments experiments
experiments experiments
time time
learninglearning
© 2013 BigVisible Solutions 38
This is Experiment Mapping
focus
experiments experiments
experiments experiments
time time
learninglearning
© 2013 BigVisible Solutions 39
Customer Segment is our focus
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
© 2013 BigVisible Solutions 40
Will they pay for our product?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
© 2013 BigVisible Solutions 41
Can we scale to meet demand?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
We can scale
to meet
demand
© 2013 BigVisible Solutions 42
Can we use our distribution channels?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
We can use
existing
distribution
channels
We can scale
to meet
demand
© 2013 BigVisible Solutions 43
Are we solving a real need?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
© 2013 BigVisible Solutions 44
Which of these is the riskiest?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
© 2013 BigVisible Solutions 45
Can we do a concierge test?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
© 2013 BigVisible Solutions 46
We could build a prototype
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
Build a
prototype
© 2013 BigVisible Solutions 47
Maybe run a focus group?
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
Build a
prototype
Run a focus
group with
80 people
© 2013 BigVisible Solutions 48
Prototype will take time
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
Build a
prototype
Run a focus
group with
80 people
© 2013 BigVisible Solutions 49
Focus groups take a long time too
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
Build a
prototype
Run a focus
group with
80 people
© 2013 BigVisible Solutions 50
Concierge test is quick & we’ll learn
focus
experiments experiments
experiments experiments
time time
learninglearning
Customer
Segment
They will
pay for our
product
Our product
solves a need
they have
We can use
existing
distribution
channels
We can scale
to meet
demand
Concierge
test with 10
customers
Build a
prototype
Run a focus
group with
80 people
© 2013 BigVisible Solutions 51
“Let’s swarm on this
experiment”
high
learning
short
timeframe
© 2013 BigVisible Solutions 52
Just because you can
measure it, does not
mean you should
measure it.
© 2013 BigVisible Solutions 53
Auditable
Actionable
Accessible
Source: Eric Ries The Lean Startup
© 2013 BigVisible Solutions 54
Auditable
“Be able to defend your metrics
with confidence”
© 2013 BigVisible Solutions 55
Auditable?
zombie
project
metrics
© 2013 BigVisible Solutions 56
Actionable
“Does this metric incentivize a
change in behavior?”
© 2013 BigVisible Solutions 57
Actionable?
Facebook likes won’t
influence your dog
© 2013 BigVisible Solutions 58
Actionable
Number of steps
should influence
your lifestyle
0
50
100
150
200
250
1 2 3 4 5 6 7 8 9 10 11
Velocity(Points)
Iteration
Team Velocity per Iteration
Delta Planned Actual Avg Last 3
© 2013 BigVisible Solutions 59
Actionable?
What does this tell
you about your
product?
© 2013 BigVisible Solutions 60
Accessible
“Can you easily access and share
this data?”
© 2013 BigVisible Solutions 61
Accessible?
Not accessible
© 2013 BigVisible Solutions 62
Accessible
Accessible
Image Source: Lean.st
© 2013 BigVisible Solutions 63
Source: Dave McClure Pirate Metrics
Acquisition
Activation
Retention
Referral
Revenue
© 2013 BigVisible Solutions 64
Source: Dave McClure Pirate Metrics
Acquisition
Activation
Retention
Referral
Revenue
© 2013 BigVisible Solutions 65
“Metrics are people, too”
Source: Eric Ries The Lean Startup
© 2013 BigVisible Solutions 66
Aware
Hopeful
Satisfied
Passionate
Source: Adapted from Cooper & Vlaskovits
© 2013 BigVisible Solutions 67
Aware
Hopeful
Satisfied
Passionate
Acquisition
Activation
Retention
Referral
© 2012 BigVisible Solutions 68
Start small.
© 2012 BigVisible Solutions 69
When you have stories
around an uncertain
feature, add a hypothesis
that states the expected
outcome on a specific
metric.
© 2012 BigVisible Solutions 70
If you have a Kanban Board,
add a Validate Column to
the very right of it.
© 2012 BigVisible Solutions 71
Problem Solution Process
Known Known
Waterfall or
Agile
Known Unknown Agile
Unknown Unknown Lean Startup
© 2012 BigVisible Solutions 72
Where are the
unknown / unknown’s
in your enterprise?
David J Bland
Experimentor
Brian Bozzuto
Principal
73© 2013 BigVisible Solutions
Thank You!

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Experimenting in the Enterprise Agile 2013 Conference

  • 2. 2© 2012 BigVisible Solutions David J Bland Startups consulted: 18 Twitter followers: 2179 Iterations of Coaching: 215 Speaker Vanity Metrics Brian Bozzuto Blogs & Articles Written: 77 Presentations Delivered: 46 Teams coached: 54
  • 3. © 2013 BigVisible Solutions 3 This session doesn’t guarantee a 100 million dollar success, but it should help prevent a 100 million dollar failure.
  • 4. © 2012 BigVisible Solutions 4 A business model used to be static and survived many years. 38 13 4 3 2 0 10 20 30 40 Radio TV Internet iPod Facebook Years to Reach a Market of 50 Million
  • 5. © 2012 BigVisible Solutions 5
  • 6. © 2012 BigVisible Solutions 6 The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. -Eric Ries
  • 7. Entrepreneur Intrapreneur © 2013 BigVisible Solutions 7
  • 9. © 2013 BigVisible Solutions 9 This is great in theory, but it’s not for B2B. This is great in theory, but I’m a visionary. EntrepreneurIntrapreneur
  • 10. © 2013 BigVisible Solutions 10 Define the value proposition for: Source: Adapted from Steve Blank Buyer User Decider Buyer User Decider B2C B2B
  • 11. © 2013 BigVisible Solutions 11 Are your users/customers: Source: Adapted from Steve Blank Aware of problem? Actively seeking a solution? Hacking together a solution? Have $$$ for your solution?
  • 12. © 2013 BigVisible Solutions 12 Can We Build It? Should We Build It?
  • 13. © 2013 BigVisible Solutions 13 Requirements = Hypotheses
  • 14. © 2013 BigVisible Solutions 14 Source: Adapted from Cynefin Simple “Everyone Knows That” Complicated “Let’s consult the expert” Complex “Whoa, it all makes sense now…” Chaos “That still doesn’t make sense” Work with experts to inform our hypothesis Run experiments to gain new knowledge
  • 15. © 2013 BigVisible Solutions 15 Safe Fail != Fail Safe
  • 16. © 2012 BigVisible Solutions 16 Experiment with product & process
  • 17. © 2013 BigVisible Solutions 17 If you experiment just to see what happens, then you’ll succeed at seeing what happens.
  • 18. © 2013 BigVisible Solutions 18 Be careful how you structure your experiments
  • 19. © 2013 BigVisible Solutions 19 Image Source: Eric Ries The Lean Startup Then here Start here Last here
  • 20. © 2013 BigVisible Solutions 20 Image Source: Eric Ries The Lean Startup Now Execute Quickly
  • 21. © 2012 BigVisible Solutions 21 Experiment Template For <customer segment> I predict <outcome> when I run <experiment>
  • 22. © 2012 BigVisible Solutions 22 Experiment Example For new customers, I predict 10% increase in conversion when I offer a “no questions asked” cancellation policy
  • 23. © 2012 BigVisible Solutions 23 Experiment Guidelines • Customer Segment (who) • Up to / Limit Of (how many) • Length of Time (how long) • Financial Exposure (how much) • Amplification & Dampening Measures
  • 24. © 2013 BigVisible Solutions 24 Experiment Dashboard ID Hypothesis Description Status Next Steps 01a We predict that adding a refund feature will increase conversions Story 13c adds refund label and call to action button that puts customer in contact with call center agent. Complete 0.2% increase in conversion on cohort. Meeting with VP of Ops to discuss strategy.
  • 25. © 2013 BigVisible Solutions 25 “This is all great, but how do we know what experiments to run?”
  • 26. © 2012 BigVisible Solutions 26 Iterative Product + Static Business Model Failed Organization
  • 27. © 2012 BigVisible Solutions 27Source: Alex Osterwalder
  • 28. © 2012 BigVisible Solutions 28 ? ? ??? ? ? ? ? ? ? ? “Let’s map out our existing business model” Source: Adapted from Alex Osterwalder tip: tell a story
  • 29. © 2012 BigVisible Solutions 29 ? ? ??? ? ? ? ? ? ? ? “Let’s validate our riskiest assumptions” Source: Adapted from Alex Osterwalder
  • 30. © 2012 BigVisible Solutions 30 This is most likely your Riskiest Assumption Source: Adapted from Alex Osterwalder
  • 31. © 2012 BigVisible Solutions 31 This is most likely your other Riskiest Assumption Source: Adapted from Alex Osterwalder
  • 32. © 2012 BigVisible Solutions 32 What happens when we subtract costs from revenue? Source: Adapted from Alex Osterwalder
  • 33. © 2013 BigVisible Solutions 33 “Okay, now we have a big list of assumptions, how do we decide where to start?”
  • 34. © 2013 BigVisible Solutions 34 experiment experiment experiment experiment experiment experiment experiment “Let’s dot vote!” (you could, but that’s pretty subjective)
  • 35. © 2013 BigVisible Solutions 35 time learning experiment experiment experiment experiment experiment experiment experiment experiment experiment experiment experiment experiment experiment (ok better, but what are they tied to?)
  • 36. © 2013 BigVisible Solutions 36 Now we have a focusing mechanism focustime time learninglearning experiments experiments experiments experiments
  • 37. © 2013 BigVisible Solutions 37 And assumptions that need validation focus experiments experiments experiments experiments time time learninglearning
  • 38. © 2013 BigVisible Solutions 38 This is Experiment Mapping focus experiments experiments experiments experiments time time learninglearning
  • 39. © 2013 BigVisible Solutions 39 Customer Segment is our focus focus experiments experiments experiments experiments time time learninglearning Customer Segment
  • 40. © 2013 BigVisible Solutions 40 Will they pay for our product? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product
  • 41. © 2013 BigVisible Solutions 41 Can we scale to meet demand? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product We can scale to meet demand
  • 42. © 2013 BigVisible Solutions 42 Can we use our distribution channels? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product We can use existing distribution channels We can scale to meet demand
  • 43. © 2013 BigVisible Solutions 43 Are we solving a real need? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand
  • 44. © 2013 BigVisible Solutions 44 Which of these is the riskiest? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand
  • 45. © 2013 BigVisible Solutions 45 Can we do a concierge test? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers
  • 46. © 2013 BigVisible Solutions 46 We could build a prototype focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers Build a prototype
  • 47. © 2013 BigVisible Solutions 47 Maybe run a focus group? focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers Build a prototype Run a focus group with 80 people
  • 48. © 2013 BigVisible Solutions 48 Prototype will take time focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers Build a prototype Run a focus group with 80 people
  • 49. © 2013 BigVisible Solutions 49 Focus groups take a long time too focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers Build a prototype Run a focus group with 80 people
  • 50. © 2013 BigVisible Solutions 50 Concierge test is quick & we’ll learn focus experiments experiments experiments experiments time time learninglearning Customer Segment They will pay for our product Our product solves a need they have We can use existing distribution channels We can scale to meet demand Concierge test with 10 customers Build a prototype Run a focus group with 80 people
  • 51. © 2013 BigVisible Solutions 51 “Let’s swarm on this experiment” high learning short timeframe
  • 52. © 2013 BigVisible Solutions 52 Just because you can measure it, does not mean you should measure it.
  • 53. © 2013 BigVisible Solutions 53 Auditable Actionable Accessible Source: Eric Ries The Lean Startup
  • 54. © 2013 BigVisible Solutions 54 Auditable “Be able to defend your metrics with confidence”
  • 55. © 2013 BigVisible Solutions 55 Auditable? zombie project metrics
  • 56. © 2013 BigVisible Solutions 56 Actionable “Does this metric incentivize a change in behavior?”
  • 57. © 2013 BigVisible Solutions 57 Actionable? Facebook likes won’t influence your dog
  • 58. © 2013 BigVisible Solutions 58 Actionable Number of steps should influence your lifestyle
  • 59. 0 50 100 150 200 250 1 2 3 4 5 6 7 8 9 10 11 Velocity(Points) Iteration Team Velocity per Iteration Delta Planned Actual Avg Last 3 © 2013 BigVisible Solutions 59 Actionable? What does this tell you about your product?
  • 60. © 2013 BigVisible Solutions 60 Accessible “Can you easily access and share this data?”
  • 61. © 2013 BigVisible Solutions 61 Accessible? Not accessible
  • 62. © 2013 BigVisible Solutions 62 Accessible Accessible Image Source: Lean.st
  • 63. © 2013 BigVisible Solutions 63 Source: Dave McClure Pirate Metrics Acquisition Activation Retention Referral Revenue
  • 64. © 2013 BigVisible Solutions 64 Source: Dave McClure Pirate Metrics Acquisition Activation Retention Referral Revenue
  • 65. © 2013 BigVisible Solutions 65 “Metrics are people, too” Source: Eric Ries The Lean Startup
  • 66. © 2013 BigVisible Solutions 66 Aware Hopeful Satisfied Passionate Source: Adapted from Cooper & Vlaskovits
  • 67. © 2013 BigVisible Solutions 67 Aware Hopeful Satisfied Passionate Acquisition Activation Retention Referral
  • 68. © 2012 BigVisible Solutions 68 Start small.
  • 69. © 2012 BigVisible Solutions 69 When you have stories around an uncertain feature, add a hypothesis that states the expected outcome on a specific metric.
  • 70. © 2012 BigVisible Solutions 70 If you have a Kanban Board, add a Validate Column to the very right of it.
  • 71. © 2012 BigVisible Solutions 71 Problem Solution Process Known Known Waterfall or Agile Known Unknown Agile Unknown Unknown Lean Startup
  • 72. © 2012 BigVisible Solutions 72 Where are the unknown / unknown’s in your enterprise?
  • 73. David J Bland Experimentor Brian Bozzuto Principal 73© 2013 BigVisible Solutions Thank You!

Notes de l'éditeur

  1. Overall, pedometer users increased their physical activity by 26.9% over baseline. An important predictor of increased physical activity was having a step goal such as 10,000 steps per day (P = .001). When data from all studies were combined, pedometer users significantly decreased their body mass index by 0.38 (95% CI, 0.05-0.72; P = .03).&quot; Promoting Lifestyle Physical Activity: Experiences with the First Step Program.Am J LifestyleMed. 2009 Jul 1;3(1 Suppl):508-548.
  2. Overall, pedometer users increased their physical activity by 26.9% over baseline. An important predictor of increased physical activity was having a step goal such as 10,000 steps per day (P = .001). When data from all studies were combined, pedometer users significantly decreased their body mass index by 0.38 (95% CI, 0.05-0.72; P = .03).&quot; Promoting Lifestyle Physical Activity: Experiences with the First Step Program.Am J LifestyleMed. 2009 Jul 1;3(1 Suppl):508-548.