Defining the Problem BIG BANG BRIEFING 1 To a child with a hammer, everything looks like a nail Nothing is more dangerous than an idea when it is the only one we have. Page 2 Before developing your solution, make sure you’re working on the right problem What is the problem? Whose problem is it (and whose problem is it *not*)? Why is it an *important* problem? Why hasn’t it been solved before? Page 3 “Always on” email ▪ Email is now an essential “utility” ▪ Zero configuration ▪ When it goes down the productivity of my workforce goes to zero ▪ Lights out ▪ Appliance ▪ You don’t need to sell me, if you deliver it, I’ll buy it! ▪ Instant failover to local appliance for local failure (planned or otherwise) ▪ Is the problem – fix Microsoft exchange? ▪ ▪ And what “it”? Near instant failover for full site disaster (or a move) ▪ Supporting not just email but everything that was being hung on the email system – archiving, compliance, security, etc. - It was a lot more than the customer first let on - Took going back with conceptual designs to tease out the real problem ▪ At a price that the IT lead could sign off on The curse of the corner case ▪ Which worked in every configuration of Exchange of which no two are identical - Page 5 Disney Execs: – Ops: Expand?! We can’t even meet today’s demand. – Photographer at my service where and when I want, but not in my face – Merchandise: Why sell a photo for a 45% markup when we make 85% on tee shirts and plush? – Professional, high-quality photos with your camera and mine Guest Complaints: – My first park experience was a photographer harassing me, but then I never saw him again when I was ready – I want my ride photo but I don’t want to carry it around the park all day – I wanted to buy my photo at the end of the day but the line is an hour! Rethink the business not as merchandising but as a Disney-caliber guest service: – No waiting in long lines; nothing to carry How? Move photo fulfillment bottleneck from the park to the web – Many more photographers – More photos = more memories – Hassle-free shopping at home – Higher margins – in parks and online Page 6 2 A problem well-defined is half-solved. A problem inadequately defined will produce the wrong product! Page 7 Formal methods for need finding Discovering unmet needs that exist but everyone overlooks Broad need finding Buglists & Customer Feedback User observation Mind mapping Deep need finding Structured interviews and observations Process mapping 5-why’s Page 8 Fundamental Behaviors of Need Finding Be There No substitute for being “in the place”. Be Present Immerse yourself, roll up your sleeves, dive in. Be Surprised Release expectations. Be Thoughtful Your idea is just a theory. Question everything. Be Humble, Be Gentle Balance aggressiveness with reality. 9 Page 10 3 The real problem is rarely the obvious one... Page 10 “Customers don’t want ¼ inch drills, they want ¼ inch holes.” — Ted Levitt “We don’t sell makeup, we sell hope.” — Max Revlon Page 11 Create a first draft of the real world problem you are solving Identify and State The Problem Based on what objective sources of data? Any confirmatory evidence? Identify the Customer(s) – who has this problem? How critical is this problem? Must have, want to have, nice to have? How is this problem being addressed today? Describe the Value Proposition – how would they value the solution What are the costs of the problem? Hard costs, soft costs, other costs (e.g., reputational costs, perceived risk to employment etc. Based on what evidence Page 12 What are you doing? The pitch should start by explaining *what you do* Be specific about whether you are going to make something, develop something, license something, provide a service etc.... "We make and sell software...” "We develop therapeutics that...” "We license a technique for manufacturing biofuels...“ “We provide safe, fun and engaging entertainment experiences…” Page 14 For whom? Next, who is your consumer/customer? Be specific about who is your intended customer or consumer "for doctors in rural communities in India..." "for waste water treatment plants across Canada...." "nursing mothers with HIV...“ “for the entire family – parents, toddlers and teens alike…” Page 15 Why is this important? Finally, explain why it is important. Give evidence: use market size, intense needs, and unstoppable trends to show that what you are doing is the foundation for a great project or business "3 billion people annually have this problem..." "1 million children per year die of..." "Energy consumption in data centers will double in the next 10 years...“ I spent $10,000 on this family vacation and my teenager is bored to tears.” Page 16 Let’s try one.