Index

A

A/B testing, 230–231

ad-libs, for Prototyping, 76, 82–83

Ad Tracking (Experiment Library), 220

AirBnB, 91

Alibaba Group, 268–271

alignment, creating, 260–261

Anthropologist, 106, 114–115, 217

Apple, 156, 157

App Store (Apple), 157

assessment

Business Model and, 156–157

of competitors, 128–129, 130–131

of skills for Value Proposition Design, xxii–xxiii

of Value Proposition, 122–123

Azuri, 146–151

B

best practices

for mapping customers’ jobs, pains, and gains, 24–25 (See also Customer Gains; Customer Pains; Jobs to be Done)

for mapping value creation, 30

Blank, Steve, 118, 182–183

Blue Ocean Strategy, 130

books, as Starting Points, 92–93

brainstorming

defining criteria with, 140

possibilities for, 92–93

See also Starting Points

Bransfield-Garth, Simon, 146

brochures, creating, 222

Build, Measure, Learn Circle, 94, 95

Business Hypothesis

defined, 201

extracting, 200–201

Lean Startup and, 185, 186–187

prioritizing, 202–203

Business Model, 142–157

assessing, 156–157

Azuri example, 146–151

compressed air energy storage example, 152–153

creating value for customers and, 144–145

Fit and, 48–49, 52–53

platform Business Models, 52–53

stress testing, 154–155

testing, 194–195

Business Model Canvas

defined, xv

illustrated, xvii

Business Model Generation (Osterwalder), xiv, xvi

business plans, experimentation processes versus, 179

business-to-business (B2B) transactions, 50–51

Buy a Feature (Experiment Library), 235

Buyer of Value (customer role), 12

C

Call to Action (CTA), 218–219

Canvas

Customer Profile and, 3–5, 9, 10–25

Fit and, 3–5, 40–59

identifying stakeholders with, 50–51

moviegoing example, 54–55

observing customers, 7

summarized, 60

Value Map and, 3–5, 8, 26–39

Value Proposition, defined, 6

See also Business Model Canvas; Customer Profile; Fit; Value Map; Value Proposition; Value Proposition Canvas

change. See Evolve

channels, defined, xvi

characteristics, of customers, 14–15

Choices, 120–141

competitors and, 128–129, 130–131

context and, 126–127

defining criteria and selecting prototypes, 140–141

feedback and, 132–133, 134–135, 136–137

role-playing and, 107, 124–125

tips for, 124, 131, 137

Value Proposition assessment, 122–123

visualization and, 138–139

Circle, Testing the, 190–191

Cocreator (for Customer Insight), 107

Cocreator of Value (customer role), 12

colleagues, Value Proposition Design for, xxiv–xxv

Company Building (Customer Development process), 183

competitors, assessing, 128–129, 130–131

compressed air energy storage example

Business Model, 152–153

Prototyping, 96–97

context

Jobs to be Done, 13

understanding, 126–127

cost structure, defined, xvi

Creation (Customer Development process), 183

criteria, defining, 140–141

Customer Development process, 182–183

Customer Gains

best practices for mapping, 24–25

checking Fit and, 46–47

defined, 16–17

psychodemographic profile approach versus, 54–55

ranking, 20–21

as Starting Point, 88–89

Testing the Circle objective, 190–191

See also Gain Creators

Customer Insight, 104–119

Anthropologist, 106, 114–115, 217

choosing mix of experiments for, 216–217 (See also Experiment Library)

Cocreator, 107

creating value for, 144–145 (See also Business Model)

customer relationship management (CRM), xvi, 109

Data Detective, 106, 108–109, 217

gaining, 106–107

identifying patterns in, 111, 116–119

Impersonator, 107, 124–125

Journalist, 106, 110–113, 217, 225

Scientist, 107

shaping ideas and, 70–71

tips for, 113, 115, 117

Customer Pains

best practices for mapping, 24–25

checking Fit and, 46–47

defined, 14–15

psychodemographic profile approach versus, 54–55

ranking, 20–21

as Starting Point, 88–89

Testing the Circle objective, 190–191

See also Pain Relievers

Customer Profile, 10–25

best practices for mapping jobs, pains, and gains, 24–25

business-to-business (B2B) transactions, 50–51

Customer Gains, defined, 16–17

Customer Pains, defined, 14–15

customer’s context and, 56–57

customer segments, xvi, 116

defined, 9

different solutions for same customers, 58–59

identifying high-value jobs, 100–101

innovating from, 102–103

jobs, pains, and gains as new approach, 54–55

Jobs to be Done, defined, 12–13

ranking jobs, pains, and gains, 20–21

sketching, 18–19

understanding customer perspective for, 22–23

use of, 60–61

See also Jobs to be Done; Starting Points

D

Data Detective, 106, 108–109, 217

data mining, 109

data sheets, creating, 222

data traps, avoiding, 210–211

Day in the Life, A (worksheet), 115–116

de Bono, Edward, 136–137

decision makers, 50–51

Dell, 157

Design, 64–170

characteristics of great Value Propositions, 72–73

constraints, 90–91

design/build (Lean Startup), 185, 186–187

in established organizations, 158–187 (See also established organizations)

finding the right Business Model, 142–157 (See also business model)

making choices for, 120–141 (See also Choices)

overview, 67

Prototyping possibilities, 70–71, 74–85 (See also Prototyping)

shaping ideas with, 70–71

Starting Points, 70–71, 86–103 (See also Starting Points)

summarized, 170

understanding customers, 70–71, 104–119 (See also Customer Insight)

discovery (Customer Development process), 182

Dotmocracy, 138–139

Dropbox, 210

E

Earlyvangelists, 118

economic buyers, 50–51

Eight19 (Azuri), 146–151

emotional jobs, of customers, 12

end users, 50–51. See also Customer Insight

Environment Map, v, xv

EPFL, 96–97

established organizations, 158–169

inventing and improving, 160–161, 162–163

reinventing, 164–165

Value Proposition Design for, xix

workshops for, 166–167, 168–169

Evidence

Call to Action (CTA) and, 218–219

need for, 190–195

producing, 97, 216

See also Test

Evolve, 254–272

creating alignment and, 260–261

improvement and, 264–265

measuring and monitoring, 262–263

overview, 257

reinventing and, 266–267, 268–271

summarized, 272

“exhausted maximum” trap, 211

experience, as feedback, 134

Experiment Library, 214–237

Ad Tracking, 220

Buy a Feature, 235

Call to Action (CTA), 218–219

choosing mix of experiments, 216–217

experiment, defined, 216

experiment design and, 204–205

experimenting to reduce risk, 178–179

Illustrations, Storyboards, and Scenarios, 222, 224–225

Innovation Games, 232

Landing Page MVP, 228–229

Life-Size Experiments, 226–227

Minimum Viable Product (MVP), 222–223, 228–229

Mock Sales, 236–237

Pre Sales, 237

Product Box, 234

Speed Boat, 233

Split Testing, 230–231

tips for, 217, 222, 224, 227, 229, 231, 233, 237

Unique Link Tracking, 221

See also Test

F

Facebook, 157

facts, as feedback, 134

false-negative/false-positive traps, 210

Federal Institute of Technology (Switzerland), 96–97

feedback, 132–133, 134–135, 136–137

financial issues

cost structure, defined, xvi

generating revenue, 144–145

profit, defined, xvi

revenue streams, defined, xvi

stress testing, 154–155

testing customers’ willingness to pay, 219 (See also Experiment Library)

See also Business Model

Fit, 40–59

addressing customers’ jobs, pains, and gains with, 44–45

checking for, 46–47

Customer Profile and customer context, 56–57

Customer Profile and Value Map as two sides of, 3–5

Customer Profile versus psychodemographic profile approach, 54–55

different solutions for same customers, 58–59

multiple Fit, 52–53

stages of, 48–49

striving for, 42–43

use of, 60–61

functional jobs, of customers, 12

G

Gain Creators

Fit and, 9, 47

Pain Relievers versus, 38

Products and Services as, 33

Value Map and, 33–34

gains. See Customer Gains

Google

AdWords, 220

searches, 108

government census data, 108

H

Hilti, 90

Hohmann, Luke, 232

hypothesis. See Business Hypothesis

I

Ikea, 157

Illustrations, Storyboards, and Scenarios (Experiment Library), 222, 224–225

Impersonator, 107

improvement

for established organizations, 160–161, 162–163

as relentless, 264–265

See also Evolve

Indigo, 150–151

influencers, 50–51

Innovation Games, 232

intermediary Fit, 52–53

interviewing, of customers, 106, 110–113, 217, 225

iPod (Apple), 156

J

Jobs to be Done

best practices for mapping, 24–25

defined, 12–13

identifying high-value jobs, 98–99, 100–101

psychodemographic profile approach versus, 54–55

ranking, 20–21

as Starting Point, 88–89

Testing the Circle objective, 190–191

Journalist, 106, 110–113, 217, 225

K

Key activities, defined, xvi

key partnerships, defined, xvi

key resources, defined, xvi

L

Landing Page MVP (Experiment Library), 228–229

Lean Startup, 184–185, 186–187

Learning Cards, 206–207, 213

learning (Lean Startup), 185, 186–187

Life-Size Experiments (Experiment Library), 226–227

listening, 112

Lit Motors, 226

“local maximum” trap, 211

M

magazines, as Starting Points, 92–93

market pull, 95

Marriott, 227

measurement

Evolve and, 262–263

Lean Startup feature, 185, 186–187

See also Test

MedTech, 154–155

Minimum Viable Product (MVP)

Lean Start-up with, 184

Prototyping and, 77

testing with, 222–223, 228–229

Mock Sales (Experiment Library), 236–237

N

napkin sketch, for Prototyping, 76, 80–81

Nespresso, 90, 156

new ventures, Value Proposition Design for, xviii

O

observation, of customers, 106, 114–115, 216–217. See also Experiment Library

obstacles, of customers, 14–15. See also Customer Pains

opinion, as feedback, 134

Osterwalder, Alexander, xiv, xvi

outcomes

Customer Gains as, 16–17

undesired, by customers, 14–15

Owlet, 246–251

P

Pain Relievers

Fit and, 9, 47

Gain Creators versus, 38

Products and Services as, 31–32

Value Map and, 33–34

“participatory tv,” for understanding context, 126, 127

patterns, identifying, 111, 116–119

personal jobs, of customers, 12

perspective, of customers, 22–23. See also Customer Insight

platform Business Models, 52–53

Pre Sales (Experiment Library), 237

prioritization, 202–203, 219.

See also Experiment Library

problems, of customers, 14–15.

See also Customer Pains

Problem-Solution Fit, 48–49

Product Box (Experiment Library), 234

Product-Market Fit, 48–49

Products and Services

meeting customer expectations with, 31–32

multiple Fit for, 52–53

Testing the Square objective, 192–193

types of, 29–30

value of, to customers, 31–32

profit, defined, xvi

Progress Board, 242–243, 244–245

Prototyping, 74–85

ad-libs for, 76, 82–83

defined, 76

napkin sketch for, 76, 80–81

packaging and, 223, 234

principles of, 78–79

selecting prototypes, 140–141

shaping ideas with, 70–71

spaces for, 227

tips for, 77

Value Proposition Canvas for, 77, 84–85

See also Experiment Library

psychodemographic profiles, as traditional approach, 54–55

push versus pull debate, 94–95, 96–97, 98–99, 100–101

R

ranking, for customer jobs/pains/gains, 20–21

recommenders, 50–51

Rectangle, Testing the, 194–195

reinventing, to Evolve, 266–267, 268–271

required gains, of customers, 16

research, about customers. See Customer Insight

revenue streams, defined, xvi

Ries, Eric, 184–185

risks, customers and, 14–15

role-playing, 107, 124–125

S

saboteurs, 50–51

Scientist, 107

segmentation, xvi, 116

services. See Products and Services

Skype, 157

social jobs, of customers, 12

social media analytics, 109

Southwest, 91

Speed Boat (Experiment Library), 233

Split Testing (Experiment Library), 230–231

Square, Testing the, 192–193

stakeholders

identifying, 50–51

role-playing and, 107, 124–125

Starting Points, 86–103

addressing customer concerns with, 88–89

books and magazines for, 92–93

design constraints and, 90–91

innovation with Customer Profile, 102–103

push versus pull debate, 94–95, 96–97, 98–99, 100–101

shaping ideas with, 70–71

tips for, 93, 97

start-ups, Value Proposition Design for, xviii

Step-by-Step Testing, 196–213

avoiding data traps, 210–211

extracting hypothesis, 200–201

Learning Cards for insight, 206–207, 213

learning speed and, 208–209

overview, 198–199

prioritizing hypothesis, 202–203

Test Cards for experiment design, 204–205, 212

tips for, 210

Strategy Canvas, 129, 130

Strategyzer logo, explained, x

stress testing, 154–155

supporting jobs, of customers, 12

Swatch, 90

synthesis, 116, 117

T

Taobao, 268–271

technology push, 94, 96–97

Test, 172–252

Customer Development process, 182–183

experimenting to reduce risk, 178–179

Experiment Library for, 214–237 (See also Experiment Library)

Lean Startup, applying, 186–187

Lean Startup movement, 184–185

principles, 180–181

Progress Board, 242–243, 244–245

step-by-step, 196–213 (See also Step-by-Step Testing)

systematic design and testing example, 246–251

testing process, summarized, 240–241, 252

Testing the Circle objective, 190–191

Testing the Rectangle objective, 194–195

Testing the Square objective, 192–193

tips for, 183

Test Cards, 204–205, 212

thinking hats (de Bono), 136–137

third-party research reports, 108

Transferrer of Value (customer role), 12

U

unique link tracking (Experiment Library), 221

V

validation (Customer Development process), 182

Value Map, 26–39

best practices for mapping value creation, 30

Gain Creators and, 33–34

mapping how products and services create value, 36–38

mapping value propositions, 34–35

Pain Relievers, 31–32

Products and Services, 29–30

use of, 60–61

Value Proposition

assessing competitors and, 128–129, 130–131

assessment, 122–123

Business Model connection to, 152–153

defined, vi, xvi, 6

See also Value Proposition Canvas; Value Proposition Design

Value Proposition Canvas

characteristics of great value propositions, 72–73 (See also Design)

for Prototyping, 77, 84–85

Value Proposition Design

book organization and online companion, x

Business Model Canvas, defined, xv (See also Business Model Canvas)

competitors versus, 128–129

Environment Map and, v, xv

for established organizations, xix

to overcome problems, vi–vii

selling colleagues on, xxiv–xxv

skills needed for, xxii–xxiii

for start-ups, xviii

successful use of, viii, xi

tools and process of, xii–xiii (See also Canvas; Design; Evolve; Test)

uses of, xx–xxi

Value Proposition Canvas, defined, xiv, xv (See also Value Proposition Canvas)

visualization, 138–139

W

website

tracking customers on, 109

Value Proposition Design Online Companion, explained, x

websites

landing pages of, 223, 228–229

WhatsApp, 157

workshops, for established organizations, 166–167, 168–169