Understanding Business/Business Planning Problem-Solution Fit PDF

05.12.2024 Understanding Business / Business Planning Problem-Solution Fit Session 2 Recap Company, structure, financing, legal form Task division, Task allocation, Reward allocation, Information flows 2 Warm-up How did you find a new business idea...

05.12.2024 Understanding Business / Business Planning Problem-Solution Fit Session 2 Recap Company, structure, financing, legal form Task division, Task allocation, Reward allocation, Information flows 2 Warm-up How did you find a new business idea? 3 Traditional new product development New Products Producer User Active Role Passive Role 4 What is the problem? Producer’s View  Customer’s View! ▪ Proud about the idea ▪ Constantly confronted with ▪ Working on it for months new things ▪ High identification ▪ Attention is limited ▪ Criticism for product = ▪ First impression decides Personal criticism ▪ Caught in mind-set Potentially misleading Relevant, but unknown 5 Examples? 6 An idea doesn‘t only consist of a solution Idea = Problem/Opportunity + Solution 7 „Double diamond“ concept The problem space The solution space 1 Discover 2 Define 3 Ideate 4 Implement Doing the right thing Doing things right (IDENTIFY) (SOLVE) 8 Problem-Solution-Fit Problem-solution fit takes place when: A solution that effectively addresses a real and validated problem for a specific target audience. The “Why” of consumption: ▪ People buy a product to improve their lives. ▪ They want a problem to be solved. ▪ Solving this problem is our job. 9 Characteristics of a good problem ▪ Frequent: A problem that occurs often enough to matter. ▪ Painful: Causes frustration, inefficiency, or inconvenience. ▪ Unmet Need: Current solutions are inadequate or non-existent. ▪ Clearly Defined: Specific and easy to articulate. 10 Human-centered design to create user-focused solutions Short Video about Human-Centered Design https://www.designkit.org/ 11 Human-centered design process source: Designkit.org 12 Example: Netflix 13 Inspiration phase (the problem space) PAGE 14 14  What are customer needs? ▪ Definition: Customer needs refer to the problems, desires, or expectations that customers aim to satisfy through a product, service, or experience. (remember: a product/service solves a problem, it is bought to get a job done!) ▪ Needs can be explicit (stated clearly by the customer) or latent (hidden or unarticulated) PAGE 15 15  Types of customer needs Functional Needs ▪ Practical and task-related requirements. ▪ Example: "I need a faster way to commute to work.“ Emotional Needs ▪ Feelings or experiences customers want to achieve. ▪ Example: "I want to feel secure when using online payments.“ Social Needs ▪ Related to status, relationships, or belonging. ▪ Example: "I want my colleagues to respect my presentation skills." PAGE 16 16 Example Susan does not eat healthy. (observation) However, she wants to eat healthy. (goal) ➔ Gap ( = unmet need)! Why? (insights) Customer needs It takes too much time searching for She needs to find delicious recipes recipes that matches her dieatry needs. that machtes her diatary needs easily. She feels overwhelmed by meal She needs a simpler way to organize planning every week needs a simpler her recipes. way to organize her recipes She thinks that she is a bad cook She wants to feel confident that she is preparing delicious food. PAGE 17 17 Uncover customer needs Empathy is… the ability to share someone else’s feelings or experiences by imagining what it would be like to be in that person’s situation. https://dictionary.cambridge.org/ 18 Uncover customer needs Observe Engage Immerse View users and Interact with your Wear your users’ their behavior in users shoes the context of their lives ▪ Understand and uncover users’ needs, wishes and fears 19 Personas: Immerse yourself in the world of your target user ▪ Personas – one of the most widely used tools for target group research ▪ are fictional representations of target users ▪ help you step out of yourself and understand users’ needs, experiences, behaviors and goals ▪ is based on qualitative (and/or quantitative) data 20 20 Personas help you understand your users’ needs, experiences, behaviors and goals PAGE 21 Why don’t we use an average person? ▪ In the past managers derived customer FC Bayern fan, Friendly, always profiles from statistics, using mean/ likes beer, smiling, usually plays volleyball, median numbers from demographics (e.g. likes hiking in has a joke on his lips age, income etc.) autumn ▪ Difficult to create product/service for persons, that are 53% male, have a medium income of 41 TEUR and 1.3 He loves his job, is children. competent ▪ User-experience research has shown that it is better to create a persona based on Wears comfortable qualitative research (a sample of 6 to 8 allround clothes, Punctual, careful, loves is enough) always carries his tools around, is not cooking into fashion 22 22 Types of personas Proto personas meant to quickly align the team’s existing assumptions about who their users are, but not based on (new) research + fast, make teams implicit assumptions explicit, team alignment; - inaccurate representations Qualitative personas based on small-sample qualitative research, such as interviews, usability tests, or field studies + relatively fast, real insights; - no proportion of users, overrepresented outliers Statistical personas where initial qualitative research informs a survey instrument that is used to gather a large sample size, and the personas emerge from statistical analysis + proportion of users; - no overrepresented outliers; - time-consuming, expensive 23 23 From theory to practice ▪ Objective: Define your target user and identify (unmet) customer need(s) that your solution addresses. ▪ Steps: 1. Define your target audience 2. Develop problem statements 3. Refine your solution or find a new solution. ▪ Deliverables: A concise problem-solution fit. 24 Step 1 – Identify your target audience ▪ Who is your user? Age, profession, behavior, lifestyle ▪ Define key characteristics: Name, backstory, goals, pain points, etc. ▪ Method: Personas 25 Step 2 – Develop problem statement(s) ▪ Method: “Why” method Susan does not eat healthy. (observation) However, she wants to eat healthy. (goal) ➔ Gap ( = unmet need)! Why? (problems/ insights) It takes too much time searching for recipes that matches her dieatry needs. She feels overwhelmed by meal planning every week needs a simpler way to organize her recipes She thinks that she is a bad cook 26 Problem Statement Eating healthy is a challenge for Susan (persona), because ▪ It takes too much time searching for recipes ▪ It takes too much time searching for recipes that matches her dieatry needs. (insight 1) ▪ She feels overwhelmed by meal planning every week needs a simpler way to organize her recipes (insight 2) ▪ She thinks that she is a bad cook (insight 3) 27 Ideation phase (the solution space) With strong problem statements at hand, you are ready to get creative! 28 Creativity Creativity (noun) = The use of imagination or original ideas to create something; inventiveness. (Oxford Dictionary) = the generation of ideas that are novel and useful (e.g., Barron, 1955; Stein, 1953) ▪ Genetic disposition ▪ Can be trained ▪ Context dependent ▪ Critical skill (https://www.weforum.org/agenda/2016/01/the-10-skills-you-need-to-thrive-in-the-fourth-industrial- revolution/) 29 Creativity Creativity has a lot to do with how our brain works… 30 Creativity Let’s do an exercise! Make a list of 20 animals 2 min 31 Why it is hard to be creative? Functional Fixedness Our brain is categorizing…. PETS ZOO FARM WOOD 32 What can you do? Unlock your creativity with the right techniques 33 What can you do? ▪ Look at problems from different angles ▪ Connect and combine concepts ▪ Use analogies ▪ Challenge traditional assumptions ▪ Learn tools and techniques that enhance creativity ▪ Build environments that foster innovation 34 What can you do? Brainstorming Idea Fair Mix & Match Impose constraints Eye 4 Seredenipity Cross Pollineation 35 Step 3 – Refine your solution or find a new solution If your solution fits an important problem, refine your solution by defining excitement features! Kano Model Source: Berger et al., 1993 36 Step 3 – Brainstorm solutions/ideas If your solution fits NOT an important problem, find a new solution! ▪ Brainstorm ideas ▪ What new approach could solve the problem(s)? ▪ How might technology or design improve their experience? ▪ Discuss and select an idea ▪ Does it solve the defined problem(s)? ▪ Will it be desirable, feasible and viable? 37 Validate your product/service! The Mom Test https://www.youtube.com/watch?v= Hla1jzhan78 38 Wrap-up ▪ What is the problem-solution fit and why is it important? ▪ How to identify customer needs? ▪ How to generate creative solutions? 39 Next session outlook ▪ Market analysis ▪ Competitor analysis ▪ USP 40 Something to read… 41 Questions? Feel free to contact me! Carola Wandres [email protected] Institute for Strategy, Technology, and Organization, Building D5