Problem-Solution Hypothesis - Module 5 Flashcards
It seeks to explain why something has happened, or what might
happen, under certain conditions.
hypothesis or hypothesis statement
It used to understand how different variables relate to
each other
hypothesis
These are often written as if-then statements
hypothesis statement
It is a statistical means of testing an assumption stated in a hypothesis
hypothesis statement
These are new organizations created by entrepreneurs to launch new products
Startups
TorF: A hypothesis-driven approach to entrepreneurship minimizes, per unit of resources expended, the
amount of information gained for resolving such uncertainty
False
TorF: an entrepreneur must decide whether to persevere with her proposed business
mode
True
TorF: A hypothesis-driven approach helps reduce the biggest risk facing entrepreneurs: offering a product that no one wants.
True
TorF: Many startups fail because their founders waste resources building and marketing
products before they have resolved business model uncertainty
True
Enumeration: Steps in Hypothesis Driven Entrepreneurship
Step 1: Develop a Vision
Step 2: Translate the Vision into Hypotheses
Step 3: Specify MVP Tests
Step 4: Prioritize Tests
Step 5: Learn from MVP Tests
Step 6: Persevere, Pivot, or Perish
Step 7: Scaling and Ongoing Optimization
This initial step of developing a
vision, also called_________
ideation
is an integrated array of distinctive choices specifying a new venture’s
unique customer value proposition and how it will configure activities to deliver that value and earn
sustainable profits.
business model
the smallest set of features and/or activities needed to complete what a “Build-Measure-Learn” (3 lean startup principles) cycle and thereby test a business model hypothesis.
Minimum Viable Product (MVP)
Who wrote “The Lean Startup”
Eric Ries
Who wrote “The Startup Way”
Eric Ries
This book is about the lean startup movement.
The Lean Startup
This book is about on modern entrepreneurial management
The Startup Way
Enumeration: By launching a series of
MVPs, an entrepreneur reduces product development batch sizes and cycle times, yielding two benefits:
- Short product development cycles accelerate feedback
- Releasing feature revisions in small batches makes it easier to interpret test results and to diagnose problems
customers experience only a subset of the features envisioned for subsequent versions of the product
constrained product functionality
a startup relies on temporary and makeshift technology to deliver the MVP’s functionality.
constrained operational capability
To ensure sales to early adopters, it can be tempting to specify MVPs that
include sophisticated features that might be deemed irrelevant by mainstream customers—or worse, might confuse mainstream customers and position the new product in their minds as “not for me.”
Constrained Functionality
TorF: Operational requirements are nor dictated by product functionality
False
TorF: entrepreneurs should
generally employ MVPs with constrained operational capability whenever they are still defining their product’s core functionality
True
TorF: entrepreneurs should not constrain operational capability when it
would be costly to acquire such capability and when relying on a temporary, makeshift solution does not unduly impact customers’ ability to provide useful feedback.
False
The technology used to deliver the MVP’s functionality is often temporary
and makeshift relative to the operational capabilities required for scaling
Constrained Operations
TorF: Whether they constrain functionality or operations, MVPs are typically tested with a greatly large customer set, when compared to the pool of prospects that a scaling startup would target.
False
TorF: Acquiring a large numbers of customers before validating business model hypotheses can be expensive and can exacerbate damage to a startup’s brand if a subsequent pivot confuses and alienates the early adopters.
True
TorF: MVPs should be tested with just enough customers to provide reliable feedback.
True
a hypothesis has been confirmed when in reality it is not valid
false positive
TorF: false positive results are sometimes observed when entrepreneurs recruit enthusiasts— individuals with an unusual level of passion for the product category—as test subjects
True
a hypothesis has been disconfirmed when in reality it is valid
false negative
TorF: False negative results regarding demand for a new product are more likely to occur with a badly built MVP or a poorly executed test
True
an entrepreneur must prioritize the tests, deciding how to sequence them.
Prioritize Tests
TorF: As a general principle, an entrepreneur should give priority to tests that can eliminate considerable
risk at a low cost
True
TorF: when business model elements are serially independent, then an entrepreneur will have little choice about how
to sequence experiments
False
entrepreneurs evaluate feedback gained from MVP tests
Learn from MVP Tests
TorF: Entrepreneurs also should be on guard against three other potential sources of error
False
They stated preferences do not always correspond to their true preferences
Customers
Enumeration: Two types of potential error
- Customers
- Entrepreneur itself
TorF: Extensive psychological research shows that humans are vulnerable to cognitive biases: they see what
they want to see, and they see what they expect to see.
True
If the MVP validates the business model hypothesis and other feedback does not prompt a shift in direction
Persevere
If the MVP test rejects the business model hypothesis or if it validates the hypothesis, but other feedback indicates that greater opportunity lies elsewhere
Pivot
If an MVP test decisively rejects a crucial business model hypothesis, and the entrepreneur cannot identify a plausible pivot, then she should shut down her business.
Perish
If an entrepreneur has validated all key business model hypotheses
Product-Market Fit
This means that the venture has the right product for the market: one with
demonstrated demand from early adopters and with solid profit potential
Product-Market Fit
It is a graphic organizer that provides the viewer with a high-level view of a project and can turns your ideas into a logical and convincing sequence
storyboard
It is a technique that does indeed come from the cinema industry where a linear sequence of illustrations used in animation to develop a broader story
storyboard
TorF: Interview used also in business to understand and map’s customers’ experience, enable the growth of the company (using this process) and it also helps to put together your business startup
story in a convincing way.
False - Storyboard
TorF: Storyboarding has become a best practice and process in the movie industry, is now becoming also an essential process in business
True
This have been used in media and film to plan out video shots before investing time and resources into the actual production
Storyboard
TorF: The use of storyboards for product development and UX design is much different
False
TorF: Storyboards allow product designers to easily and inexpensively test multiple product visions, customer journey maps, and UX product flows until a clear final product design is created and understood by all departments
True
It helps the product developer
understand the user’s journey as they interact with the product and design the product around the user’s needs
Vision
This is a simple statement, story, or example of how you want the product
to function and what objective you want it to achieve
Product Vision
It allows for a clearer understanding from the start of how the product is intended to be built and minimizes the chances for
miscommunications as the development process continues.
storyboard
TorF: Creating a few product visions and working across departments is an essential second step to developing a product.
False
TorF: storyboarding helps create customer journey maps of your target personas
True
TorF: your product users and your product purchasers may not be the same people, and therefore you will have to cater both your product design and marketing efforts differently depending on which audience you’re trying to reach.
True
Creating a ___________________ allows developers to experience the product discovery and purchasing process, which in turn can maximize your conversion rate.
customer journey map storyboard
Creating a ____________allows product developers to easily walk through a sample UX step-by-step.
storyboard
Enumeration: Creating a product vision
- What problem are my target users currently experiencing?
- What would help alleviate this problem?
- How will my product provide this form of problem alleviation?
- What does a “happy user” look like?
Enumeration: Creating a customer journey map for key user personas
- Who would be buying my product? How old are they? What is their professional background?
What are their motivations (both personal and professional)? - What problem are my buyers currently experiencing?
- How would they come across my product as a solution?
- What problems would they face when either trying to purchase my product, or implement it in
their business? - What would success from our product look like from our buyer’s perspective?
Enumeration: Creating a user experience flow
- Where do you want your users to land?
- What is the “hook” that will stop them from bouncing on your page?
- Do you need different landing pages for different types of users?
- How can you capture their contact info so your sales team can follow up on a lead?
- Are all the steps necessary? Can you cut any out to streamline the flow and increase conversion
rate? - Is there a clear and obvious way for the users to purchase the product?
TorF: Make sure to keep your storyboards handy and constantly update them throughout the design process.
True
Enumeration: Different Types of Techniques in making a storyboard
- Talk and image
- Video clip
- Role play
- Text and image
- Comic Strip
tell a story of a protagonist and his environment using one or several images
Talk and image
tell a story of a protagonist and his environment using video to blur lines between reality and fiction
Video clip
Have people play the roles of a story’s protagonist to make the scenario real and tangible
Role play
tell a story of a protagonist and his environment using text and one or several images
Text and image
Use a series of cartoon images to tell the story of a protagonist in tangible way
Comic Strip
Group or conference presentation with low cost
Talk and image
Broadcast to large audience or in-house use for decisions with important financial implications and the cost is medium to high
Video clip
Workshops where participants present newly developed business model ideas to each other and can cost low
Role play
Reports or broadcast to large audiences and can cost low
Text and image
Reports or broadcast to large audiences and can cost low to medium
Comic Strip
