Design thinking and prototyping
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Questions and Answers

Why is surveying people with a prototype beneficial in the entrepreneurial process?

  • It ensures legal protection of the product idea through demonstrated public interest.
  • It provides concrete data and feedback, aiding in refining the product or service. (correct)
  • It allows for the immediate acquisition of funding based on positive reactions.
  • It guarantees widespread market adoption upon the product's official release.

In the context of prototyping, why is 'building to think' considered important during the early stages?

  • It accelerates the production timeline by eliminating the need for iterative design.
  • It allows for experimentation and discovery, leading to a deeper understanding of the problem and potential solutions. (correct)
  • It ensures that the final product meets all predetermined specifications from the outset.
  • It minimizes resource expenditure by focusing on creating a polished, presentable prototype.

During which stage of prototyping is it most crucial to address ambiguities?

  • Ergonomics Stage
  • Accuracy Stage (correct)
  • Pitch Stage
  • Aesthetics Stage

How does a prototype primarily assist in the 'pitch' stage of an entrepreneurial venture?

<p>By offering a tangible representation of the idea, making it easier to communicate its value to potential investors or partners. (D)</p> Signup and view all the answers

What is the main goal of 'integrated models' in the advanced stages of prototyping?

<p>To create a comprehensive and functional representation of the final product. (C)</p> Signup and view all the answers

What does 'thinking with your hands' signify in the context of early-stage prototyping?

<p>Actively engaging in hands-on creation and experimentation to refine an idea. (D)</p> Signup and view all the answers

What is the significance of embracing failure in the 'Evolve' stage of prototyping?

<p>It emphasizes the importance of learning from mistakes and iterating on designs. (B)</p> Signup and view all the answers

During the prototyping process, when is it most appropriate to use low-resolution prototypes?

<p>When initially exploring and visualizing different concepts. (B)</p> Signup and view all the answers

Which type of prototype is best suited for simulating the user experience of a service?

<p>Experiential prototype (C)</p> Signup and view all the answers

Why is rapid prototyping considered beneficial in the design process?

<p>It allows for early identification and correction of flaws (D)</p> Signup and view all the answers

Eric Ries' journey to developing the Lean Startup methodology involved which of the experiences listed below?

<p>Founding and failing with Catalyst Recruiting, then co-founding IMVU Inc. (D)</p> Signup and view all the answers

What is the primary purpose of prototyping, according to the material?

<p>Communicating ideas and concepts (B)</p> Signup and view all the answers

In the Build-Measure-Learn loop, what is the PRIMARY purpose of the 'Measure' phase?

<p>To gather data and assess the impact of changes made during the 'Build' phase. (D)</p> Signup and view all the answers

What does the principle of 'fail early and often' suggest in the context of prototyping?

<p>Iterate quickly and learn from mistakes (A)</p> Signup and view all the answers

In what scenarios, beyond physical products, can prototyping be applied?

<p>Software applications and user interfaces (C)</p> Signup and view all the answers

How does the 'Scientific Lean Startup' approach, as presented, primarily aim to improve entrepreneurial decision-making?

<p>By applying rigorous testing and data analysis to validate assumptions. (B)</p> Signup and view all the answers

What is the trade-off to consider when deciding how much effort to put into the appearance of a prototype?

<p>Appearance matters, but prototyping should be quick and efficient (A)</p> Signup and view all the answers

Which of the following best describes the role of prototyping within the Design Thinking process and the Lean Startup methodology?

<p>A process of creating rough drafts or models to test assumptions and gather feedback. (A)</p> Signup and view all the answers

An entrepreneur is developing a new app. Which prototyping approach would be MOST effective for gathering user feedback on the app's navigation and user interface?

<p>Building an interactive wireframe or mock-up. (B)</p> Signup and view all the answers

Entrepreneurs use the 'Build-Measure-Learn' feedback loop. If testing reveals that a core assumption about a product is incorrect, what would be the MOST appropriate next step, according to the Lean Startup methodology?

<p>Pivot the product strategy based on the validated learning from the testing. (B)</p> Signup and view all the answers

A design team is tasked with improving the layout of a retail store to enhance customer flow and product visibility. Which prototyping method would be MOST suitable for testing different store layouts before making permanent changes?

<p>Using tape and cardboard to mock up different layouts in the actual store. (D)</p> Signup and view all the answers

Camuffo, Cordova, Gambardella, and Spina's research suggests startups should make decisions based on what?

<p>Randomized control trials. (B)</p> Signup and view all the answers

How does the Build-Measure-Learn loop support the validation of assumptions about customers?

<p>By using data to test assumptions and learn if they are correct. (A)</p> Signup and view all the answers

What is the role of the 'Build' phase in the Build-Measure-Learn loop?

<p>Develop a Minimum Viable Product (MVP) to test core assumptions. (C)</p> Signup and view all the answers

According to Tim Brown, what three key elements does Design Thinking integrate?

<p>The needs of people, the possibilities of technology, and the requirements for business success. (A)</p> Signup and view all the answers

What is the primary objective of Design Thinking in the context of product development?

<p>To create products that precisely meet the identified needs and desires of the target users. (A)</p> Signup and view all the answers

Why is using paper and pencil recommended as a starting point for prototyping in the entrepreneurial process?

<p>To minimize initial investment and encourage rapid iteration. (C)</p> Signup and view all the answers

What is the significance of the statement 'That a swing is not a swing is not a swing' within the context of entrepreneurship and product development?

<p>It highlights how different people may have different interpretations and needs, even for seemingly simple products. (D)</p> Signup and view all the answers

In the context of the 'Scientific Lean Start-Up' approach, what is the purpose of adding a 'scientific element'?

<p>To enable rigorous testing of hypotheses and data-driven decision-making. (C)</p> Signup and view all the answers

How does embracing a 'failing more often' mentality benefit entrepreneurs in the product development lifecycle?

<p>It accelerates the learning process and facilitates quicker adaptation through experimentation. (A)</p> Signup and view all the answers

According to Simon (1988: 68), what is the core activity that defines design?

<p>Devising a course of action to change existing situations into preferred ones. (B)</p> Signup and view all the answers

What is one of the listed reasons why entrepreneurs' products often fail to resonate with consumers?

<p>Entrepreneurs have a limited understanding of people’s needs. (B)</p> Signup and view all the answers

In design thinking, why is it important to view a prototype as a stepping stone rather than a final product?

<p>All of the above. (D)</p> Signup and view all the answers

What is the primary goal of testing prototypes with users in the design thinking process?

<p>To gather natural and honest feedback to inform further development. (A)</p> Signup and view all the answers

Which of the following best describes the 'Define' stage in the design thinking process?

<p>Clearly articulating the problem you are trying to solve based on user insights. (C)</p> Signup and view all the answers

Why is 'failing quickly and cheaply' considered a benefit of prototyping in design thinking?

<p>It helps to identify and address problems early in the development process, reducing potential costs and risks. (B)</p> Signup and view all the answers

What is the key difference between a human-centered and an engineering-centered approach to product design?

<p>Human-centered design prioritizes user needs and feedback, while engineering-centered design focuses on technical specifications and performance. (C)</p> Signup and view all the answers

In the context of design thinking, what does it mean to take a 'scientific lean start-up' approach?

<p>Using validated learning and iterative testing to refine a business model or product. (D)</p> Signup and view all the answers

Which of the following is a primary purpose of creating prototypes?

<p>To explore and communicate ideas, and learn about important issues. (A)</p> Signup and view all the answers

How does the iterative nature of design thinking contribute to better problem-solving?

<p>By enabling continuous refinement and adaptation based on new insights and feedback. (C)</p> Signup and view all the answers

What is the primary risk when respondents in a study are friends of the subject being evaluated, potentially leading to confirmation bias?

<p>Respondents may be unwilling to provide negative feedback to avoid disappointing their peers. (D)</p> Signup and view all the answers

In the context of the Scientific Lean Startup approach, what is the significance of establishing clear metrics, such as rejecting a hypothesis if less than 60% of interviews provide corroborating evidence?

<p>It minimizes the risk of confirmation bias by providing an objective threshold for decision-making. (D)</p> Signup and view all the answers

How do thoroughly considered and validated theories of a business benefit entrepreneurs?

<p>They help entrepreneurs mitigate biases and imprecisions when analyzing market signals. (D)</p> Signup and view all the answers

What is the recommended course of action in the Scientific Lean Startup approach if not all of the initial hypotheses are corroborated?

<p>Abandon the original idea or investigate alternative solutions, also known as pivoting. (D)</p> Signup and view all the answers

What is a key advantage of using a scientific approach in entrepreneurial decision-making?

<p>It increases firm performance by enabling entrepreneurs to recognize project returns and pivot effectively. (C)</p> Signup and view all the answers

In what way does testing hypotheses about customer preferences through experiments contribute to entrepreneurial success?

<p>It reduces the likelihood of incurring false positives and false negatives during market analysis. (D)</p> Signup and view all the answers

How does the Scientific Lean Startup methodology propose to deal with potential biases in entrepreneurial decision-making?

<p>By implementing rigorous testing and validation of hypotheses. (A)</p> Signup and view all the answers

What does the text imply about entrepreneurs who use a scientific approach versus those who do not?

<p>Entrepreneurs using a scientific approach are better equipped to make informed decisions based on evidence. (A)</p> Signup and view all the answers

Flashcards

Prototype Testing

Testing prototypes helps gain natural, honest user feedback.

Design Thinking

An iterative approach to problem-solving that prioritizes understanding and meeting user needs.

Design Thinking

A human-centered approach to solving problems.

Iterative Process

A cyclical process of understanding the user, ideating, prototyping and testing.

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Prototype

A preliminary model of a product, service, or experience.

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Prototyping

A key step in Design Thinking.

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Prototyping Use

Crucial for understanding problem areas and confirming assumptions.

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Prototyping

Quickly discover design flaws at minimal cost.

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Prototyping Accuracy

Prototypes clarify ambiguities in a design, ensuring all uncertainties are resolved early.

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Prototyping Ergonomics

Prototypes help assess how well a product fits in hand, on the body, or in a space.

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Prototyping Aesthetics

Prototypes allow definition of colors, textures, and materials for a product.

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Prototyping Surveys

Prototypes are useful for collecting user feedback through surveys.

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Prototyping Pitches

A prototype is used to showcase an idea to potential investors or companies.

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Prototyping Testing

Prototypes help test if an idea works and identify necessary tweaks.

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Inspire (Prototyping)

This stage involves embracing failure and building prototypes to think through ideas experimentally.

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Evolve (Prototyping)

This involves targeted models to manage changes, experimenting based on data.

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Why products fail?

Entrepreneurs often miss the mark because they don't fully grasp what people truly need or want.

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Understanding Needs

By deeply understanding people's needs, entrepreneurs can create products that resonate and offer real value.

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Prototyping tools

Using basic tools like paper and pencil allows for quick, iterative prototyping without the barrier of technology.

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Failing Often.

More failures lead to more learning and faster improvement; embrace experimentation and iteration.

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Swing Analogy

You’re solving the right problem, but your customer doesn’t understand the solution or doesn’t know how to use it.

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Lean Startup

A methodology that favors experimentation and iterative product releases over detailed planning in creating a product.

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Scientific element

Integrating a structured, data-driven approach to the Lean Startup method to validate assumptions and refine product development.

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Physical Prototype

A tangible representation of a product or concept.

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Analytic Prototype

A virtual representation of a product or concept, often using mathematical or computational models.

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Experiential Prototype

A prototype that focuses on how a user interacts with the product or service.

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Prototype Materials

Prototypes can be made using readily available materials like trash, paper, and items from a DIY store.

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Prototype Scope

Prototyping is not limited to physical products; it can also be applied to interactions and spaces.

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Prototyping Approach

Early prototyping should prioritize speed and iteration over perfect appearance.

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Fail Early

It is important to fail early and often in the prototyping process.

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Confirmation Bias

Favoring information confirming existing beliefs.

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Clear Metrics

Pre-set criteria to accept or reject a hypothesis.

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Clear Decision Rules

Predetermined rules for acting on data.

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Pivot

Shifting to an alternate business approach.

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Benefit of Scientific Approach

Using a scientific approach to make better entrepreneurial decisions that increase firm performance.

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Validated Theories

Thoroughly considered and validated theories of their business and hypotheses about what customers want.

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Agenda Topics

Design Thinking, Prototyping, Scientific Lean Start Up, Outlook.

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Reduce False Outcomes.

Mitigating biases or imprecisions when they analyze market signals, reducing the likelihood of incurring false positives and false negatives.

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Eric Ries

American entrepreneur and author, known for 'The Lean Startup'.

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Build-Measure-Learn Loop

A continuous process of turning ideas into products, measuring customer response, and learning whether to pivot or persevere.

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Scientific Entrepreneurial Decision Making

An approach using quantitative data to make informed entrepreneurial decisions.

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Persevere

Continuing on the current path when validated learning confirms the initial hypothesis.

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Validated Learning

The process of testing hypotheses about a business model to validate assumptions.

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Evidence-Based Decisions

Decisions should be based on evidence rather than solely on intuition.

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Study Notes

  • Prof. Dr. Miriam Bird is the professor giving the lecture on Entrepreneurship & Family Enterprises
  • The lecture is being held at TUM School of Management, TUM Campus Heilbronn, and hosted by the Global Center for Family Enterprise
  • This is session 3, On Campus
  • The agenda includes: introduction, design thinking, prototyping, scientific Lean Start-Up, and outlook

Course at a Glance

  • Session 1: Introduction to entrepreneurship
  • Session 2: Opportunity recognition and effectuation
  • Session 3: Design Thinking and Prototyping
  • Session 4: Decision Making & Business Model Canvas
  • Session 5: Entrepreneurial Teams
  • Session 6: Growth and Entrepreneurial Finance
  • Session 7: Social and Sustainable Entrepreneurship, and ultimately the Exam

Key Session Learning Points

  • Understanding why entrepreneurs' products often fail to attract buyers
  • Learning to better grasp people's needs as entrepreneurs
  • Understanding that paper and pencil makes the perfect way to kick off the prototyping journey
  • Embracefrequent failure
  • Grasping the concept of "a swing is not a swing is not a swing"
  • Defining the lean start-up approach
  • Integrating a "scientific element" into the lean start-up approach by formulating hypotheses

Design Thinking

  • Design is devising a course of action aimed at changing existing situations into preferred ones
  • Design thinking is a human-centered approach to innovation
  • Design thinking integrates the designer's toolkit to meet people's needs
  • Design thinking considers the possibilities of technology, and requirements for business success
  • Key elements include interdisciplinary teams, iterative processes, and variable spaces
  • iterative process includes understanding, observing, defining a point of view, finding ideas, prototyping, and testing

Design Thinking Mindset

  • Curiosity
  • Reframing
  • Collaboration
  • Mindfulness of process
  • Bias towards action

Stages of the Design Process

  • Understand important issues as a starting point
  • Split the group and go outside to find out first-hand experience
  • Find the real experts to learn quicker through interviews (not surveys)
  • Try to learn by yourself (learning by doing)
  • Demonstrate and communicate learnings
  • Work in teams to develop different prototypes
  • Combine prototypes, then present and test

Design Thinking Process in 5 Steps

  • Empathize
    • Understand people within the context of your design challenge
    • Understand the way they do things and why
    • Understand their physical and emotional needs, how they think about the world, and what is meaningful to them
    • Observe, engage, and watch/listen
  • Define
    • Bring clarity and focus the design space by making sense of gathered information
    • Become an expert on the subject, and gaining empathy for the person you're designing for
    • The goal is to produce a meaningful and actionable problem statement
  • Ideate
    • Go wide in terms of concepts and outcomes
    • Create fluency (volume) and flexibility (variety) in your innovation option
    • Transition from identifying problems to creating solutions that are both novel and useful, while using your imagination
  • Prototype
    • Prototypes should be challenged and tested
    • Create the prototype with the understanding it's not the finished product/service/experience
    • Serve as a stepping stone along the way to the finished product/service/experience
  • Test
    • Avoid assumptions and presenting a user with a prototype
    • The most informative results come from tests that allow users to give natural and honest feedback

Summary of Design Thinking

  • Human-centered versus engineering-centered product design
  • It is an iterative process, a human-centered approach to solving problems and a five-step iterative process

Prototyping

  • A prototype is something that is explicitly not the finished product/service/experience
  • Instead, it is intended to be a stepping stone
  • Prototyping is a key part of design thinking

Prototypes are Used For

  • Trying out an idea, learning about important issues, and failing quickly & cheaply
  • Communicating ideas to others and bringing a team together

Purposes of Prototyping

  • Accuracy: Eliminates ambiguities
  • Ergonomics: See if it fits well in hands, on the body, or in a space
  • Aesthetics: Define colors, textures, and materials needed
  • Survey: Collect data and survey people
  • Pitch: Showcase your idea to potential investors or a company
  • Testing: Test your idea and see if it needs mechanical tweaks

Stages of Prototyping

  • Inspire: Include embracing failure, building to think, and using low resolution ideas
  • Evolve: Include expecting changes, experimenting, and targeting models
  • Validate: Include managing changes, building to spec, and using integrated models

How Prototyping Works

  • Begins with sketching your idea
  • Focus on a single part of functionality, or covering all functionalities
  • Dirty paper prototype as the goal, like a cardboard model
  • "Thinking with your hands" is the overall approach

Forms of Prototypes

  • Physical: Tangible
  • Analytic: Virtual
  • Experiential: Behavioral

Prototyping Considerations

  • Prototype appearance makes a difference
  • Prototyping should be "quick and dirty"

Prototyping Philosophy

  • Fail early and often

Summary of Prototyping

  • Prototypes are not finished products
  • Prototyping is a key part of design thinking
  • It is possible to prototype (almost) everything
  • Fail early and frequently (and cheap)
  • Prototypes are key for communication with others

Lean Start-Up

  • American entrepreneur and author Eric Ries, born in 1978, founded Catalyst Recruiting at Yale (the company failed)
  • Ries moved to Silicon Valley as a software engineer and left to co-found IMVU Inc.
  • After leaving IMVU, Ries joined Kleiner Perkins as a VC advisor, and published The Lean Startup in 2011
  • Build, measure and learn to translate ideas into products, measure reaction and learn to pivot or persevere

The Scientific Approach

  • The treatment consists of training to identify the problem, articulate theories, and define clear hypotheses
  • Conduct rigorous tests to "prove" or disprove the theories and measure the results of tests
  • Ultimately, make decisions based on these tools

Training Outcomes

  • Treatment teams are aware that Business Model Canvas (BMC) is the overarching theory of the firm
  • Treatment teams see every block as containing one or more hypotheses requiring validation
  • Each stage in the process the treatment teams are use metrics and thresholds to test everything and improve the process

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