SMU MGMT330 Business Capstone: Understanding The Client's Customer Session 3 PDF

SMU Classification: Restricted MGMT330 Business Capstone: Understanding the Client’s Customer Session Three Patricia Sharma Adjunct Lecturer...

SMU Classification: Restricted MGMT330 Business Capstone: Understanding the Client’s Customer Session Three Patricia Sharma Adjunct Lecturer 1  SMU Classification: Restricted Structure of Capstone Course Assess Business/Develop Ideas Design Business Model & Plan Challenge Understand Strategy Design Prove Reflection Build-Out Exec Rec. Deliver Client ‘As-is’; Rational Brainstorm, Solution Iterate Financial Bus. Case; Tune; Client Customer vs Ideate to Draft; Validate Solution/ Change Management; Create Final Meet the Value Iterative Solution; X-Team Business Implementation Strawman, VC-style Client Proposition Thinking Iterate Stress-Test 15 min RECESS Model Plan Exec Sum Pitch 11 2 3 4 5 6 7 8 9 10 11 12 13 Hear & Select Pain/Gain Who Draft Assumptions Emphasis on Test Stakeholder Proofed Full Solution; Your of Client’s What Solution Constraints Client Agreement to Analyse impacts Recap Session 7 Challenge Customer How is born Business Context & Sessions 5-12 Customer Value Prop; Sessions 2, 3, 4 Your Primary Research Continuing to Bring Client Along the Journey Business Model Generation Text Quiz Course Reflections pp. 14-119 126-133 200-239 134-189 due Evaluation Week 14 Internet Design Other Research Methods Reading of Client Text TBD & Their 83-127 NO Industry activity ratio over course of term EXAM ! Teams Working on Client Challenges Pre-reading; Participative Lectures On the Critical Path: 1. Your reading; 2. Researching client background; 3. Having a social outing with your team before you execute tasks; 3. Meet with your client mentor after kick-off (bring them along the journey); 4. Getting your primary research underway.2  SMU Classification: Restricted Plan for Today 1. The “As Is” Business Model for our Client Draw from pre-readings; Overview from our “Client” 2. The Focal Point of Your Client’s Challenge Do you have empathy with the client’s customer? Show it! 3. From Observations to Insights About Your Customer What can you leverage into the value proposition? 4. Wrap-up 5. Time in Class to Work on Your Client Challenge Develop and execute primary research of the client’s customer 3  SMU Classification: Restricted LAST WEEK’S HOMEWORK? 4  SMU Classification: Restricted Did you think about your client’s ‘As-Is’ Business Model? https://www.youtube.com/watch?v=wlKP-BaC0jA 5  SMU Classification: Restricted Activity: Develop an “As Is” Canvas of Client In Your Teams: 15 Minutes Consolidate team member input into a single “As Is” client business model Note that the business model can look different depending on how you approach the client (and what your focal area of innovation will be) Determine how you would present this to others Select a spokesperson to present the key aspects of the “As Is” business model canvas Unbundled - Customer Relationship How valid are your observations? - - Product Innovation Infrastructure The Long Tail Multi-Sided Platforms Free as a Business Model Open Business Model 6  SMU Classification: Restricted Activity: Discuss “As Is” Canvas of Client 15 Minutes Spokespersons Fill in canvas on whiteboard with your team’s perceptions Components of ’as is’ model Which business model pattern(s)? What questions do you have for your client mentor? Unbundled - Customer Relationship - Product Innovation Class discussion on the validity - Infrastructure The Long Tail of your observations Multi-Sided Platforms Free as a Business Model Open Business Models 7  SMU Classification: Restricted Plan for Today 1. The “As Is” Business Model for our Client Draw from pre-readings; Overview from our “Client” 2. The Focal Point of Your Client’s Challenge Do you have empathy with the client’s customer? Show it! 3. From Observations to Insights About Your Customer What can you leverage into the value proposition? 4. Wrap-up 5. Time in Class to Work on Your Client Challenge Develop and execute primary research of the client’s customer 8  SMU Classification: Restricted Where is the Focal Point for building your model? WHO does the firm serve? One or several specific customer segments 9  SMU Classification: Restricted TWO VIDEOS Understanding empathy Understanding customers: the customer empathy map 10  SMU Classification: Restricted Understanding empathy 11  SMU Classification: Restricted step 1: personas How to understand customers ? step 2: list topic step 3: no pain or no gain? QUIZ TOPICS Customer Empathy Map https://www.youtube.com/watch?v=kAdbbsZolOw 12  SMU Classification: Restricted Using the empathy map: Step 1 - personas B2C B2B Define your customer Define your customer persona persona 1) What’s their role / what are 1) In what kind of organization their daily activities? do they work? 2) What are their goals in life 2) What’s their role / what is that relate to your business? their job description? 3) What are their main 3) What are their main challenges in relation to your challenges in relation to your business? business? 4) What is their personal 4) What is their personal background? background? 5) Give them a name 5) Give them a name Now it’s time to become that Now it’s time to become that person person 13  SMU Classification: Restricted Using the empathy map: Step 2 – List topics B2C B2B What are their personal What are their personal aspirations? aspirations? What does the company want? What do they say about this What do they say about this product in public / in private? product at home / in the Why the difference? company? Why the difference? What are their fears and What are their fears and worries? worries? What are their aspirations? What are their aspirations? Do they love or hate what they Do they love or hate what they do? do? How do they feel about using How do they feel about using your product or an alternative? your product or an alternative? 14  SMU Classification: Restricted Using the empathy map: Step 3 – No pain, no gain? B2C B2B What frustrates them about the What frustrates them about the current situation / way of doing current situation / way of doing things? things? What is their worst fear? What What is their worst fear? What do do they surely have to avoid? they surely have to avoid? Why are they so worried about Why are they so worried about this fear? this fear? What could they personally What could they personally gain gain from engagement with from engagement with you? What you? Is the product / service about their business? Who gains being bought for someone else? most? What’s their ultimate dream? What’s their professional life And why? What would it mean ambition? And why? What would for them? it mean for them? 15  SMU Classification: Restricted Empathy Maps – Brainstorming can take many forms 16  SMU Classification: Restricted Empathy Maps – You must obtain primary data (‘observation’ is best, but given time constraints, other approaches acceptable) There are a variety of tools and frameworks that you can use to understand the context and motivation of the customer (see 101 Design Methods book) From Kumar (2013) 101 Design Methods Observe and Know Customer 3.1 Research Participant Map p. 96 3.2 Research Planning Survey p. 98 3.3 User Research Plan p. 100 3.4 Five Human Factors p. 102 3.5 POEMS p. 104 3.6 Field Visit p. 106 3.7 Video Ethnography p. 108 3.8 Ethnographic Interview p. 110 3.9 User Pictures Interview p. 112 3.10 Cultural Artifacts p. 114 So far, I have never had a team 3.11 Image Sorting p. 116 come back with audio (or video) 3.12 Experience Simulation p. 120 of customer interviews (… but 3.13 Field Activity p. 122 this could be very powerful)! 3.14 Remote Research p. 124 3.15 User Observations Database p. 126 Chapter available in eLearn Contents>Course Reading 17  SMU Classification: Restricted Link Empathy Map to Value Proposition QUIZ TOPICS describe the outcomes and benefits your customers want (needs and unexpected gains) Wants describe the Needs things that your Fears customers are trying to get done what are things that annoy your customer before, during, and after trying to get a job done + risks related to a bad job done https://www.youtube.com/watch?v=aN36EcTE54Q 18  SMU Classification: Restricted Empathy Maps – Seek out key insights about the customer Customer Jobs – describe the things that your customers are trying to get done. Customer Pains – what are things that annoy your customer before, during, and after trying to get a job done – or prevents them from getting a job done. Customer Gains – describe the outcomes and benefits your customers want (needs and unexpected gains). 19  SMU Classification: Restricted Customer Jobs = tasks to perform, problems to solve Functional jobs Specific task or problem (e.g. eat healthy, find food, enjoy a trip) Social jobs How does the customer want to be perceived (e.g. trendy, competent, eco-friendly, powerful…) Personal / emotional jobs Which emotional state is the customer looking for (e.g. bliss, secure, calm…) Not all jobs are equally important! Supporting jobs Value buyer: compare offers, make decisions, wait in line, take delivery… Value co-creator: posting reviews, feedback, user-inspired innovation Value transferer: end of life (e.g. cancel subscription, dispose of a product, reselling) 20  SMU Classification: Restricted Customer Pains = what annoys the customer Pains have the same Trigger questions dimensions as jobs What is too costly? Time, price, effort? functional, social, emotional, supporting, and consist of What makes you feel bad? Why are current solutions Obstacles: what is not enough? preventing the customer What are key challenges from getting started and difficulties? slowing them down What negative social making their job harder (or consequences do they fear impossible) / experience? Risks: What risks do they fear (financial, social, technical?) what could go wrong What common mistakes do what could negative they make? consequences be What is keeping them from How severe is the pain? Try using your VP / product / to gain precise answers! service? 21  SMU Classification: Restricted Customer Gains = concrete ambitioned outcomes Trigger Questions Required gains Which savings (time, money, and effort) Conditio sine qua non: “a would make your customers happy? necessary condition” – i.e. no What quality levels do they expect, and what would they wish more or less of? solution can work without this How do current VPs delight your What is considered “required” customers? Which features? What would make your customers’ jobs can evolve over time!!! or lives easier? E.g., flatter learning curve, more services, or lower costs of Expected gains ownership? Basic expectations any What positive social consequences do your customers desire (keep face, status, solutions should meet power) Desired gains What are customers looking for most (e.g., design, guarantees, new features)? “love-to-haves”  customers What do customers aspire to achieve, or what would be a big relief to them? can typically imagine those How do customers measure success and Unexpected gains failure? What would increase your customers’ Dive deep to address users’ likelihood of adopting an alternative VP latent (only subconsciously (cost, investment, risk, or quality)? known) desires 22  SMU Classification: Restricted Customer Understanding – Process is iterative Start by identifying a customer type Use your imagination / empathy to conceive of different pains, gains, jobs… DO NOT THINK ABOUT THE VALUE PROPOSITION (CHANGE), THINK BEYOND WHAT YOU ARE CURRENTLY OFFERING (e.g. accept a wide range of substitutes for the jobs a customers wants to complete) Do secondary research to learn more about these customers (in a company, different customers can be users, buyers, gatekeepers…) Conduct primary research to verify assumptions and findings Be ready to be proven wrong. Don’t stick to your preconceived ideas or prejudices! But don’t change your knowledge based on a single, unfounded, observation either 23  SMU Classification: Restricted Plan for Today 1. The “As Is” Business Model for our Client Draw from pre-readings; Overview from our “Client” 2. The Focal Point of Your Client’s Challenge Do you have empathy with the client’s customer? Show it! 3. From Observations to Insights About Your Customer What can you leverage into the value proposition? 4. Wrap-up 5. Time in Class to Work on Your Client Challenge Develop and execute primary research of the client’s customer 24  SMU Classification: Restricted Low cost / high speed Market Research Low cost / high speed Market Research allows you to learn and discover enough information to make reasonable estimates. This type of research is often used by resource- constrained entrepreneurs in start-ups Joe Gebbia (Airbnb): “It’s OK to do things that do not scale, as long as the insights are scalable”  Get out and talk to people You may find that some of your early assumptions are incorrect or incomplete and use the primary research to re- shape your business concept. Some of the slides here build on the slides developed for the entrepreneurship summer school in Imperial College London, special thanks to Sabrina Kiefer 25  SMU Classification: Restricted Market Segmentation consumer vs industrial Factor Consumer markets Industrial markets CUSTOMER SEGMENTS: Age, sex, race Vertical industry What are the characteristics of Income Geographical location the customer? Family size Size of organization Life cycle stage Technology Location Profitability Lifestyle/Taste Style/ culture of management CUSTOMER RELATIONS + Size/ frequency of purchase Application of product CHANNELS: Brand loyalty / type of relation with Importance of purchase / switching How will the customer customer costs purchase / use the product? Purpose of use Volume of purchases Purchasing behaviour Frequency of purchase Importance of purchase / switching Purchasing procedure costs Distribution channel Source of purchase VALUE PROPOSITION: Similarity to existing purchases Performance requirements What are the users’ specific Price elasticity Assistance from suppliers needs, and preferences Brand preferences Brand preferences Desired features Desired features Quality Quality Service requirements 26  SMU Classification: Restricted Quantitative data using secondary sources Desktop research: News sites and newspapers Country data, specialist journals, industry assessments, journals, analysis reports Websites (companies, trade bodies, etc.) Government and NGO open data sites Patent searches (e.g. google patents, USPTO.org, EPO.org, ipos.gov.sg) Credible blogs, podcasts, twitter, we chat, google analytics, reddit, linked in, and other social media channels … These days the problem is often less whether you can find data, and more whether you can make sense of the abundance and select smartly BUT for very innovative businesses finding out which data could be useful is the hardest part What information or statistics can you find about the broader market? 27  SMU Classification: Restricted Qualitative information using witnesses QUIZ Preferred witnesses are experts in a certain TOPICS product/market segment Direct witnesses: Working in organisations that are in your potential market segments, e.g. companies or early adopters that might use your product Indirect witnesses: people who have regular contact with your customers, such as: Vendors, Retailers, Wholesalers,... Professionals/practitioners, consultants, government bodies, federations, Prejudiced witnesses have a keen interest in maintaining the status quo! They can be valuable sources of information as they can provide you with important information about which barriers to break through 28  SMU Classification: Restricted As you progress, document your learnings about your customer (and actions needed to validate/refine it) Draw insights from observations But… if you find your observations always validate your hypothesis… then you are probably not asking the right customers….. 29  SMU Classification: Restricted Drawing insights from observations – what do we mean? ‘Outside-In’ video suggests that an insight emerges as you answer the questions: What are they doing (an observation)? Why are they doing it (avoid accepting myths and prejudices)? Wow! A fresh revelation about customer behavior/actions to a dilemma “Insight”: “the act of ‘seeing into’ a situation or understanding the ‘inner nature’ of what we observe” (Kumar) a remarkable realization that you could leverage to better respond to a design challenge. Comprises a point of view, and can result in generally acceptable rationale Most useful are “non-obvious” or surprising insights Kumar recommends “observe first, generate (lower level) insights later” https://www.youtube.com/watch?v=RuucbQQYw-0 30  SMU Classification: Restricted Identifying insights from observation / interview When are insights obtained During observations or afterwards on reflection Insights may be Obvious (i.e., significant observations) e.g., “students are using their laptops during class, while instructors just lecture, and don’t care to impose strict rules” Non-obvious (most likely from interviews or developing hypotheses on why users behave in certain ways) e.g., “students use laptops because they grew up with new forms of media, and find these more attractive than lectures”)  evidence suggests using laptops in class reduces learning The great art is to question seemingly obvious behaviors 31  SMU Classification: Restricted What questions should you ask? Looking for problems and needs: What’s not working well in the current situation and Why? How are people facing challenges in their daily lives? How are they working around their problems? Or are they just giving up since there is nothing out there that can support their needs? 32  SMU Classification: Restricted Which insight(s) are correct? Observation: People who download an online banking app check their finances up to five times a day Possible Insight: access to information increases use of information OR people with OCD are more likely to download online banking app OR online banking apps become a tool for marketing OR online banking apps enhance transparency and trust in the banking systems …. Insights stem from questioning why an observed act happens require interpretation, “reading” and “seeing” into situations Encapsulate a point of view (that can over time be substantiated) Non-obvious and surprising! QUIZ TOPICS 33  SMU Classification: Restricted Example of a field observations (business school) Stanford Bicycle Coffee Holder User interview: “I like to drink my coffee as I go between classes” User: students bicycling on campus… Field observation: …exhibit a range of jury-rigged methods, e.g. balancing coffee in hands or elsewhere on the bicycle while riding Dilemma: It can be unsafe carrying coffee on a bike? 34  SMU Classification: Restricted An insight from field observations (business school) Insight (need): Users want to bring coffee to class, but users have to bicycle between classes (at a later stage) Prototyping: we trial and error, identifying and catering to users’ needs, getting feedback Commercialize 35  SMU Classification: Restricted Framing (or conceptualising) Insights You need to organize and convey your observations / insights through easy to absorb visual structures Venn diagrams Trees (hierarchies) competitive Entity position mapping RC-car triathlon Clustering in insights arrayed by 2 racing (dominant explanatory) dimensions leisurely strenuous Nature jogging walks Network diagrams (illustrating influence, recreational etc., relationships, etc.) Less fed dog Noisy Boy kicks house dog Angry dog 36  SMU Classification: Restricted Framing (or conceptualising) Insights You need to organize and convey your observations / insights through easy to absorb visual structures Matrices A B C D  Clustering in array - all insights by A - x xxx same insights (determined by B - influence or relationship) C xx - Spectrums D xxx -  Timeline: mapping of single dimension’s changes over time, e.g. 60 immersiveness of videogames over 50 time 40 30 20 10 0 1980 1990 2000 2010 2014 37  SMU Classification: Restricted Framing (or conceptualizing) Insights There are a variety of tools and frameworks that you can use to understand the context and motivation of the customer (see 101 Design Methods book) From Kumar (2013) 101 Design Methods Framing Insight 4.1 Observations to Insights p. 138 4.2 Insights Sorting p. 140 4.3 User Observation Database Queries p. 142 4.4 User Response Analysis p. 144 4.5 ERAF Systems Diagram p. 146 4.6 Descriptive Value Web p. 150 4.7 Entities Position Map p. 152 4.8 Venn Diagramming p. 154 4.9 Tree / Semi-Lattice Diagramming p. 156 4.10 Symmetric Clustering Matrix p. 158 4.11 Asymmetric Clustering Matrix p. 162 4.12 Activity Network p. 166 4.13 Insights Clustering Matrix p. 170 4.14 Semantic Profile p. 174 4.15 User Groups Definition p. 176 4.16 Compelling Experience Map p. 178 4.17 User Journey Map p. 182 4.18 Summary Framework p. 184 Chapter available in library (not on eLearn) 4.19 Design Principles Generation p. 188 https://smu.vstbridge.com/#/book-details/9781118392195 4.20 Analysis Workshop p. 190 38  SMU Classification: Restricted Plan for Today 1. The “As Is” Business Model for our Client Draw from pre-readings; Overview from our “Client” 2. The Focal Point of Your Client’s Challenge Do you have empathy with the client’s customer? Show it! 3. From Observations to Insights About Your Customer What can you leverage into the value proposition? 4. Wrap-up 5. Time in Class to Work on Your Client Challenge Develop and execute primary research of the client’s customer 39  SMU Classification: Restricted Summary of Today 1. Understand your client’s business model 2. Understand your client’s customer segments (as you defined them) through research and observation to: Empathize with their jobs, pains, and gains Frame observations into insights Hypothesize on potential value proposition(s) 3. You now have awareness that you must move quickly to define what data you need determine what research tools need to be applied execute to secure a fact base to support your hypothesis (or revise and reiterate) 40  SMU Classification: Restricted Exercise 1 of 3: Get Inspired Find at least 10 BMCs (or other types of business model representations) that could somehow relate to your client company Any student/group to volunteer to present 10 BMCs (or as many as possible) next week? (5mins max) 41  SMU Classification: Restricted Hypothesise Exercise 2 of 3: Develop a Map for Your Customer Segment Customer Empathy Map Any students/groups to volunteer to present this next week – 1 for Challenge 1, 1 for Challenge 2 (5 mins max) 42  SMU Classification: Restricted Hypothesise Exercise 3 of 3: Link Empathy Map to Value Proposition describe the outcomes and benefits your customers want (needs and unexpected gains) Wants describe the Needs things that your Fears customers are trying to get done what are things that annoy your customer before, during, and after trying to get a job done Any students/groups to volunteer to present this next week – 1 for Challenge 1, 1 for Challenge 2 (5 mins max) 43  SMU Classification: Restricted Next week, present preliminary empathy maps; primary research plan to validate/refine your understanding (teams will also do an exercise providing industry/client analysis based on prior research) Each team should post as many observations / understanding as possible  Who is the ‘customer’?  Using 2-3 words, create a post- it note for each observation  Then post on the empathy map for your team Explain what you plan on doing to validate/refine your understanding 44  SMU Classification: Restricted Get Started on your client project Individually As a Team Re-read text references from today’s Undertake a social event as a team Session 3 Map key milestones pp. 126-133 Define key roles assumes you already understand pp. 14-119 Leader/challenger/other Contribute to completion of customer Client communications/management empathy map for client’s customer (teams will be asked to present) Prof communications/management Status reporting Other Read text as background for Session 4 Develop team calendar (common free time?) pp. 200-239 Work around commitments of team Finalise background research on client’s members industry, the company, and its Develop customer empathy map and competitors (you will be asked as a team provide some hypothesis to investigate to complete in class either a PESTLE, This will identify questions to research SWOT or 5 Forces analysis) Develop first cut research plan / execute Client liaisons: introduce yourselves as a team to your Client Mentor and provide initial clarification questions 45 Bring your client with you along the journey  SMU Classification: Restricted Status Reporting (your team decision as to what extent you keep your Prof apprised) Milestone Due On-Track / Completed Issues Document ”as is” Business Model Week 3 Document Understanding of Industry & Week 4 Client in Context of Client Challenge Describe WHO (intent, empathy map) and Week 4 What (job, pain, gain, proposition) Preliminary Documentation of Observed Week 5 (researched) Customer and Insights Document Draft Value Proposition Week 6 Document Client Presentation Week 6 Document Informal Reflections from Week 9 Client Presentation / Iterations Document Solution Prototype and tested Week 10 assumptions Document Financial Business Case, Week 11 Implementation Considerations and Plan Document Draft Client Final Deliverable Week 12 Document Client Presentation & Exec Sum Week 13 46  SMU Classification: Restricted Plan for Today 1. The “As Is” Business Model for our Client Draw from pre-readings; Overview from our “Client” 2. The Focal Point of Your Client’s Challenge Do you have empathy with the client’s customer? Show it! 3. From Observations to Insights About Your Customer What can you leverage into the value proposition? 4. Wrap-up 5. Time in Class to Work on Your Client Challenge Develop and execute primary research of the client’s customer 47  SMU Classification: Restricted So, what are we going to do  Empathize with the this week?... customer;  Manage client and prof expectations;  While embracing ambiguity ! 48  SMU Classification: Restricted APPENDIX: PROJECT TOOLS 49  SMU Classification: Restricted Research the Business: tools and frameworks (see “101 Design methods”) Sensing and understanding 1.1 Buzz Reports p22 1.2 Popular Media Scan p24 1.3 Key Facts p26 1.4 Innovation Sourcebook p28 1.5 Trends Expert Interview p30 1.6 Keyword Bibliometrics p32 1.7 Ten Types of Innovation Framework p34 1.8 Innovation Landscape p36 1.9 Trends Matrix p38 1.10 Convergence Map p40 1.11 From…To Exploration p42 1.12 Initial Opportunity Map p44 1.13 Offering-Activity-Culture Map p46 1.14 Intent Statement p48 From Kumar (2013) 101 Design Methods 50  SMU Classification: Restricted Research the Business: tools and frameworks (see “101 Design methods”) Context and situation 2.1 Contextual Research Plan p60 2.2 Popular Media Search p62 2.3 Publications Research p64 2.4 Eras Map p66 2.5 Innovation Evolution Map p68 2.6 Financial Profile p70 2.7 Analogous Models p72 2.8 Competitors-Complementors Map p74 2.9 Ten Types of Innovation Diagnostics p76 2.10 Industry Diagnostics p78 2.11 SWOT Analysis p80 2.12 Subject Matter Experts Interview p82 2.13 Interest Groups Discussion p84 From Kumar (2013) 101 Design Methods 51  SMU Classification: Restricted Research the Business: tools and frameworks (see “101 Design methods”) Observe and Know People 3.1 Research Participant Map p96 3.2 Research Planning Survey p98 3.3 User Research Plan p100 3.4 Five Human Factors p102 3.5 POEMS p104 3.6 Field Visit p106 3.7 Video Ethnography p108 3.8 Ethnographic Interview p110 3.9 User Pictures Interview p112 3.10 Cultural Artifacts p114 3.11 Image Sorting p116 3.12 Experience Simulation p120 3.13 Field Activity p122 3.14 Remote Research p124 From Kumar (2013) 101 Design Methods 3.15 User Observations Database p126 52  SMU Classification: Restricted Other methods: user journeys 53  SMU Classification: Restricted How do you find Witnesses? Look at your product/market segmentation Ignore segments in which you see no benefit for obvious reasons ( e.g. they can’t afford that product or application or it doesn’t pertain to their business…) Do desktop research to identify companies in segments presumed relevant and suitable witnesses within these companies. Can you indicate segments where you could make contact from your own personal network (organizations, people)? Brainstorm: how to obtain contacts in the other segments? Use your network, family, friends, LinkedIn, peers/colleagues, etc. Try to find at least 3 to 5 possible organizations + contacts per segment. Use anyone with credibility as a coach! 54  SMU Classification: Restricted How many witnesses? Interview as many witnesses as needed: Until you learn nothing new Until you can explain the reasons behind any contradictory information received from different witnesses within a segment. Objectives Understand the true needs of the players in a product/market segment (for instance, they may only need a specific part of your offering), and Improve understanding of secondary circumstances, eg. sales cycles, who has decision making power, budgets, urgency, … but also how the Value Chain really works. 55  SMU Classification: Restricted Speaking to a witness: How to prepare well? Important: don’t waste time asking Tip: questions to which you can find Meetings can be the most interesting answers by other means (such as the format, but company website, press articles …) also the most time consuming for both Prepare well and try to show that you parties. have prepared professionally So qualify your witness first (i.e. gauge their interest in and relevance to your Ask the right questions to the right proposal) by telephone! person: a technical person or a financial person do not speak the same language! Direct and indirect witnesses require different approaches Structure your interviews clearly and consistently, so you can benchmark and compare 56  SMU Classification: Restricted Some interview points Dimensions Interview vs. process observations create different levels of understanding Interviews provide complexity of reasoning Observation gives complexity of situation (emotional etc.) Interviews that ask for confirmation vs. open-ended Following with probing Stay open-minded, have inquiring mind Show your interest and curiosity Abide by confidentiality (gain trust) 57  SMU Classification: Restricted Questionnaire tips I am … Determine: You are …, responsible for … Who would be involved in the decision “x” said I should call you because … making process? Product specification (positive and What is the decision cycle? negative!) Verify your assumptions about the Compatibility problems? Can existing upstream and downstream value chain: installation and processes remain ‘Is it true that…?’ unchanged, and if not, how flexible is Do you experience certain problems?/ the client or partner in changing these? How do you deal with this today? List of competing solutions (also simple substitutes) © Imperial College London How much do you spend on this problem today? If you are talking to an indirect witness, Are you satisfied with the current such as a ‘Coach’, you will adapt the solution? questions accordingly If this or that solution would be possible, do you see profitable applications in your business? When evaluating an alternative, what are your criteria and standards? E.g. price, quality, speed, compatibility, just-in-time delivery? Anything else? Would you consider working with a small company? 58  SMU Classification: Restricted Observations – taking field notes Observations Interpretations On one side of your  On the other side of the notebook you might notebook you might document what you have document interpretations, questions, and possible observed. Attempt to avoid theories of behavior (why). interpretation and speculation in these notes. Tech aids  Transcription recording apps – e.g. www.fireflies.ai ? 59