Econ125 Midterm

Successful Entrepreneurs

1. Entrepreneurial Mindset
2. Entrepreneurial Intelligence
3. Practice CURIOSITY
4. Solve PROBLEMS
5. COURAGE and ability to take ACTION
6. Tolerate RISK, Assess RISK

Drucker's Inside Sources

1. The Unexpected
2. The Incongruity
3. Process Need
4. Industry and Market Structure Change

Drucker's Outside Sources

5. Demographics
6. Changes in Perception, Mood, and Meaning
7. New Knowledge

Identifying Pain Points

1. Unmet Need
2. Friction Point
3. Gap in the Market

What are some typical pain points experienced by consumers?

Inefficiency in Service Delivery: For example, long wait times in healthcare.

Product Accessibility: Difficulty in finding specific products in retail.

Cost-Prohibitive Solutions: High costs hindering adoption of tools or services by small businesses.

Lack of Personalization: Generic services not tailored to individual needs.

Complex User Interfaces: Technology that’s too complicated for non-tech-savvy users.

What are "group norms," and why are they important?

They are the unwritten rules and traditions that govern team behavior. They are critical because they influence how teams collaborate and interact, ultimately affecting team performance.

What is "psychological safety," and why is it critical for team success?

It is a shared belief that the team is safe for interpersonal risk-taking, meaning team members feel comfortable being themselves and expressing their thoughts and concerns. It is crucial because it fosters open communication, trust, and effective teamwork.

What are some key norms that Google found to be vital to team success?

Clear Goals: Teams need to have clear objectives and understand their roles.

Dependability: Team members need to follow through on their commitments and be reliable.

Stages of Teams

1. forming
2. storming
3. norming
4. performing

What is the main goal of empathy interviews?

To understand users' feelings and experiences through a human-centered approach, providing insights that might not be apparent through traditional interviews.

Why should empathy interviews feel like open conversations?

They aim to understand participants' perspectives rather than confirm ideas, so they should be less structured and more conversational.

What are the benefits of interviewing in pairs during empathy interviews?

It allows one interviewer to take detailed notes while the other focuses on engaging the participant and exploring areas to dive deeper.

Why should tangents be pursued in empathy interviews?

They can reveal deeper insights and show what issues participants feel passionate about, which can provide valuable information.

What is meant by using a "beginner's mindset" in empathy interviews?

Approach the interview without assumptions, always ask "why," and avoid projecting personal opinions onto participants.

Why are neutral questions important in empathy interviews?

They avoid leading participants to a particular answer, ensuring that responses reflect genuine thoughts and experiences.

How does storytelling benefit empathy interviews?

It helps participants provide more context and deeper insights, making it easier to understand their perceptions and emotions.

What non-verbal cues should be observed during empathy interviews?

Look for crossed arms, facial expressions, eye contact, posture, and fidgeting to gauge participants' comfort and reactions.

Why is it important to focus on "extremes" when selecting subjects for empathy interviews?

They provide uncommon insights that can challenge conventional wisdom and reveal unique opportunities for innovation.

What are key actions for conducting empathy interviews?

Immerse: Experience what users experience.

Observe: Observe users in their environments.

Engage: Interact and interview users to understand their perspectives.

What are common mistakes to avoid during empathy interviews?

Avoid leading questions, inserting personal opinions, and focusing on yes-or-no questions, as these limit the depth of insights gathered.

What is the Design Thinking process?

1. Empathize - observe and understand users' needs and problems
2. Define - analyze observations for insights
3. Ideate - think of creative solutions
4. Prototype - develop something tangible
5. Test - get feedback on assumptions
6. Implement - understand feasibility of idea

Design Thinking Principles

1. focused on human values - customer centered
2. showing not telling - translating ideas to physical things to take and show
3. bias towards action - build, innovate, and learn by doing
4. learning mindset - embracing a beginner's way of thinking

What is the purpose of the "Empathize" stage in Design Thinking?

To gain an understanding of users' needs, experiences, and challenges by observing and engaging with them.

What happens during the "Define" stage?

Insights from the Empathize stage are analyzed to create a clear problem statement that guides ideation.

What is the focus of the "Ideate" stage?

Generating a broad range of creative ideas without judgment to solve the defined problem.

Why is prototyping important in Design Thinking?

Prototyping turns ideas into tangible solutions to evaluate feasibility and user feedback.

What is the main goal of the "Test" stage?

To refine prototypes based on user feedback and ensure the solution addresses the problem effectively.

What is an Empathy Map?

It is a collaborative tool used to gain a deeper insight into customers. It helps teams build empathy with users by visualizing their thoughts, feelings, behaviors, and environment.

What are the main benefits of using an Empathy Map?

- Removes bias and aligns the team on a shared understanding of the user.
- Identifies gaps in research.
- Uncovers user needs that may not be consciously known by users.
- Helps understand drivers behind user behavior.
- Guides teams towards meaningful innovation.

What are the key sections of an Empathy Map?

What do users say?

What do users think?

What do users feel?

What do users hear?

What do users see?

What are users’ pains and gains?

How does an Empathy Map contribute to design thinking?

It helps designers put themselves in users' shoes by visualizing their environment, motivations, and experiences, leading to user-centered solutions.

Point of View (POV)

1. Define your user - define the type of person you are designing for
2. Identify Needs - select most essential needs
3. Express Key Insights - express key insights from gathered information

Design Challenge Statement

____ is a challenge for ______ because ______

how might we questions (HMWQ)

used to ponder potential solutions to the design problem created using POV template

What are the elements of a strong Design Challenge Statement?

A strong Design Challenge Statement should be specific, user-focused, and provide a clear direction for ideation without suggesting solutions.

What is the difference between convergent and divergent thinking?

Convergent thinking involves judging and refining ideas (critical thought), while divergent thinking involves generating new, original ideas (creative thought).

How can stress impact creativity?

It triggers the amygdala, which prioritizes safety over creativity, causing the brain to focus on conventional thinking and shutting down innovative thought processes.

What is brainstorming?

A method used by design teams to generate ideas to solve clearly defined problems in a free-thinking environment, often guided by "How Might We" questions.

What are some techniques for effective brainstorming?

Mind mapping, rapid ideation, brainwriting, and using constraints to focus creativity.

Why is it important to defer judgment during brainstorming?

It encourages free sharing of ideas and prevents stifling creativity through criticism.

How can daydreaming and letting your mind wander contribute to creativity?

It allows the brain to make connections between different thoughts and experiences, often leading to unique and creative insights.

How does socialization impact creativity?

As we grow older, socialization teaches us to conform and judge ideas, reducing our natural ability to think creatively and without constraints.

What are some strategies to foster creativity in high-stress environments?

Create a judgment-free zone, encourage playful thinking, and establish a safe space to minimize stress and encourage creative risk-taking.

How does the "Reverse Brainstorming" technique work?

It involves identifying ways to cause the problem or make it worse, then flipping these ideas to discover potential solutions.

How does being visual help in brainstorming?

Drawing or sketching ideas helps communicate concepts quickly and effectively, making it easier for others to understand and build on them.

Why should teams aim for quantity in brainstorming sessions?

It increases the likelihood of discovering innovative and impactful solutions that may not have surfaced otherwise.

What is a prototype in the context of design?

It is anything a user can interact with, such as a storyboard, a gadget, a role-playing activity, or a physical environment, used to explore ideas and gather user feedback.

Why is prototyping beneficial in the design process?

To ideate and solve problems.
To communicate ideas effectively.
To start meaningful conversations with users.
To fail quickly and cheaply, minimizing resources spent.
To test various possibilities without committing to a single direction.

Why is it important to let go of prototypes quickly?

Spending too much time on one prototype can lead to emotional attachment, making it harder to discard or refine ideas as needed.

What is the first pitfall of prototyping in design thinking?

Diving into the First Good Idea: This occurs when teams rush to implement the first promising idea without considering alternatives. It leads to less exploration and often a suboptimal solution.

How can you avoid the "endowment effect" when prototyping?

Use cheap, low-fidelity materials for early prototypes and be willing to discard them once they've served their purpose.

What is the solution to the pitfall of "wasting time explaining and pitching"?

Embrace a bias towards action by building physical prototypes to illustrate concepts rather than explaining them theoretically.

How can failure in prototyping be reframed positively?

Consider failure as a learning opportunity that provides valuable insights, leading to better iterations.

What is the difference between a prototype and a Minimum Viable Product (MVP)?

A prototype is used to test specific questions during development, while an MVP is a more refined version that delivers value to the user.

What are some prototyping techniques?

Techniques include storyboarding, role-playing, simulations, mock-ups, wireframes, and working models.

What should be done if testing reveals flaws or new insights?

Teams should iterate on the prototype, making improvements or considering a pivot based on feedback and testing results.

What is a hypothesis in the context of prototyping?

It describes how a solution might address the identified problem or need, providing a basis for testing and learning.

Why is gathering feedback on prototypes essential?

It helps refine ideas, validate assumptions, and maximize learning, making the prototyping and testing stages more effective.

What are the six best practices for gathering feedback on prototypes?

Use various methods to solicit feedback.
Test prototypes on the right people, including extreme users.
Ask the right questions to guide testing sessions.
Be neutral when presenting your prototypes.
Adapt while testing.
Let users contribute their ideas.

How does the "I Like, I Wish, What If" method work?

It invites users to provide positive feedback (I Like), share improvements (I Wish), and suggest new possibilities (What If).

How can sharing inspiring stories help in feedback sessions?

They can reveal insights and ideas that the team can build on for future iterations.

What mindset should you have when testing prototypes?

Maintain a flexible and open mindset, ready to adapt and iterate based on feedback received.

What are some key principles to keep in mind during testing?

You are not selling; you are gathering feedback.
Listen more than you talk.
Leave space for discussion and encourage user engagement.
Take notes during feedback sessions.

What is the ideal setup for conducting testing sessions?

It is ideal to conduct testing in teams, with one person focused on conducting the testing and another focused on taking notes.

What should be done after the initial testing phase?

Iterate on the prototype based on feedback, continue testing with more users, and refine the prototype until it effectively meets user needs.

Why is giving negative feedback important?

Negative feedback helps employees learn and grow, increases engagement, and drives company improvement when delivered constructively.

What does it mean to focus on the "what" and not the "who" when giving feedback?

Address behaviors and their impact rather than making feedback personal or pointing fingers at the individual.

How can you tailor your feedback approach?

Adapt feedback delivery based on the recipient's style and sensitivity to ensure it's received in a constructive manner.

Why is making feedback a two-way street important?

Asking for feedback in return makes the process collaborative, builds trust, and promotes open communication.

What is Radical Candor?

A feedback method that encourages direct, honest communication while showing care for the individual, enabling growth and trust.

Why is it important to make feedback specific and actionable?

Specific feedback provides clarity and actionable steps for improvement, making it more effective and easier to implement.

What is the main difference between Design Thinking and Lean Startup?

Design Thinking focuses on understanding user needs before building a solution, while Lean Startup builds a Minimum Viable Product (MVP) quickly, tests it, and iterates based on user feedback.

What does the Lean Startup approach emphasize?

The Lean Startup emphasizes "build, measure, learn" cycles to minimize risk, reduce waste, and quickly pivot based on real-time feedback from users.

What is a "Minimum Viable Product" (MVP)?

An MVP is a basic version of a product with just enough features to satisfy early customers and gather feedback for future development.

What is a startup pivot?

A pivot is a fundamental change in a startup's business model, product, or strategy in response to market feedback, aiming to find a more viable path for growth.

Why are pivots often necessary for startups?

Startups may need to pivot when their initial idea doesn't achieve the desired traction, customer feedback indicates a different need, or market conditions change.

What are common types of pivots?

Zoom-In Pivot: Focus on one feature of the product.

Zoom-Out Pivot: Expand to include additional features.

Customer Segment Pivot: Shift target customer segment.

What role does customer feedback play in pivoting?

Customer feedback helps identify whether a pivot is needed and provides insights into how the product should change to better meet user needs.

What are some common reasons for a startup to pivot?

The prototype or MVP rejects the hypothesis.
Validating the hypothesis reveals greater opportunities elsewhere.
New user feedback uncovers different customer needs or pain points.

What is the difference between a Lo-Fi and a Hi-Fi prototype?

Lo-Fi Prototype: Low-cost, quickly built, and used to validate problems and start conversations with users.

Hi-Fi Prototype: More refined, involves moderate time and cost, and is used for in-depth user conversations and insights.

What are some examples of MVPs mentioned in the slides?

Explainer videos, landing pages, "Wizard of Oz" tests, concierge tests, and crowdfunding campaigns.

What is the role of additional research in prototype evolution?

Additional research helps refine the prototype, validates new hypotheses, and guides the team in delivering first value to the user.