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60 changes: 13 additions & 47 deletions docs/introduction.md
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# Hypotheses Briefs

These exercises are adapted from Steve Blank's seminal work, [The Four Steps to
the
Epiphany](http://www.amazon.com/Four-Steps-Epiphany-Successful-Strategies/dp/0976470705).
Steve Blank, often considered one of the key thought leaders in entrepreneurial
innovation, has significantly contributed to the conceptual framework of the
Lean Startup methodology. His extensive experience as a founder and investor has
shaped modern approaches to building successful startups.
Welcome to [Spantree's](https://spantree.net) guide to Hypotheses Briefs. Drawing from Steve Blank's pivotal [The Four Steps to the Epiphany](http://www.amazon.com/Four-Steps-Epiphany-Successful-Strategies/dp/0976470705), Hypotheses Briefs serve as the first brushstrokes on a canvas – vital for envisioning the full picture before delving into the details of company or product development. They resonate with our core value of "solving hard problems scientifically." By approaching business challenges with the rigor of the scientific method, this guide aims to equip teams with the ability to make substantiated, data-driven decisions.

The **Hypotheses Briefs** are an integral component of the Customer Discovery
phase, which Blank posits as the first step in his Customer Development model.
This model has become a cornerstone for Lean Startups, which emphasizes the
importance of agility and user feedback in developing products that meet market
needs. The approach encourages entrepreneurs to validate their business
assumptions through rigorous testing, iteration, and pivoting when necessary.
## Embracing the Scientific Approach in Business

## Role of Hypotheses Briefs
At Spantree, we believe that the scientific method isn't just for labs; it's a powerful framework for all sorts of innovation. Whether developing new products, providing services, or optimizing operations, crafting Hypotheses Briefs allows teams to propose, test, and refine ideas systematically. Validation through real-world feedback is not just a step; it's the path to genuine insights.

The creation of hypotheses briefs is fundamentally tied to the Lean Startup's
principles, predominantly the Build-Measure-Learn feedback loop. By documenting
initial assumptions, startup teams begin a process of exploration that
ultimately aims to answer the critical question: "Should this product be built?"
More importantly, it helps them discern whether their solution effectively
addresses real customer problems and aligns with their needs.
## Criteria for Crafting Hypotheses Briefs

### Product Validation
Hypotheses Briefs start with a hypothesis, much like a scientific experiment. What does your organization believe is true about the product or service? These briefs channel that hypothesis through a process of testing and learning which features click, which benefits resonate, and what unique value propositions can separate you from the crowd.

Hypotheses briefs align closely with product validation practices. Once the
hypotheses are defined, they can be further refined and tested through exercises
like [design sprints](http://www.gv.com/sprint/) — a five-day process for
answering critical business questions through designing, prototyping, and
testing ideas with customers. These sprints leverage hypotheses briefs to focus
the team’s efforts and form a clear testable pathway for the week's activities.
## The Art and Science of Pricing and Delivery

### Market Validation
The briefs probe deeper than just product-market fit; they also consider how a product or service is delivered and priced. Understanding the cost not only in monetary terms but also in terms of customer effort and adaptation is vital. This ensures that solutions are accessible, desirable, and viable.

The hypotheses briefs' importance cannot be overstated. They are an essential
roadmap guiding entrepreneurs through the uncertain journey of bringing a new
product to market. They encourage disciplined experimentation and a
customer-centric development process that has been widely acclaimed for its
effectiveness in minimizing waste and optimizing product-market fit.
## Market and Competitive Landcape

### Feedback Mechanisms
Moreover, these briefs encourage a forward-thinking analysis of market dynamics and an acute awareness of market you're entering. Assessing how a novel offering stacks up against direct or indirect competitors also teaches the fine skill of predictive adjustments based on market responses.

These articulated assumptions will serve as the backbone for market validation
exercises like customer interviews, allowing teams to confront their ideas with
real-world insights. Whether questions are confirmed or invalidated, the
learning derived from these interactions is invaluable, informing the necessary
iterations to the hypotheses and leading to closer alignment with the market's
needs.
## The Spantree Way – Solving for Everyone

Ultimately, Steve Blank's approach to hypotheses and the structured methods he
advocates for — detailed in _The Four Steps to the Epiphany_ — are more than
academic exercises. They are practical tools that have reshaped how modern
startups are developed, grown, and scaled. They embody a culture where listening
to the customer, learning from the market, and responding with agility is not
just recommended but necessary for the success and survival in the ever-changing
market landscape.
As a guiding principle, Hypotheses Briefs are accessible for all types of businesses – be it a company seeking to create the [next home-sharing revolution](examples/airbnb/introduction.md) or a services firm aiming to [craft bespoke software](examples/foosoft/introduction.md) that propels other businesses forward.

In a spirit of knowledge sharing, this guide intends to be a trove of strategies and actionable steps for any organization to apply, broadening the impact of the scientific approach to solving hard problems across the business landscape.
134 changes: 92 additions & 42 deletions docs/structure/customer-problem.md
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# Customer and Problem Hypotheses

This crucial exploration sets the stage for innovation by mapping out who will
benefit from the new developments and the specific challenges they face. This
understanding is at the heart of both product design and service delivery.

## Types Of Customers

Are there different types of customers we should approach when we sell our
product (End Users, Influencers, Recommenders, Economic Buyers, Decision
Makers)? In addition to all these parties to the sale there’s one more group
that needs to be mentioned. You won’t be looking for them, but they will see you
coming. In the case of sales to companies, document titles and where in the
organization they are to be found.
Recognizing the diversity of customers provides vital clues to developing
offerings that cater to different needs and decision drivers. It is essential to
define clearly how various groups will interact with and benefit from the
offering.

1. Who are the end-users and how do their needs differ from those of the buyers
or decision-makers?
1. What specific problems do influencers, recommenders, and decision-makers seek
to solve with your offering?
1. Are there groups, like support staff or partners, who interact with it
differently?
1. In what ways do economic buyers assess the value of your offering compared to
daily users?
1. How do the priorities and challenges vary among different customer groups?
1. Are there individuals who could resist or impede the adoption process?
1. What data or assistance does each group need to make an informed choice?
1. How might variables like industry trends or locale impact customer needs and
behaviors?

## Customer Problems

Understand how customers experience pain (their problem) and why (how much) it
matters to them. Summarize not only what the customer's problem, but what the
organizational impact of the problem is in terms of the different types of pain
it causes at various levels of the company/family/consumer. Capture answers to
the question “If they could wave a magic wand and change anything at all, what
would it be?” Categorize problems as follows:
Identifying customer challenges is key to delivering meaningful value. It
includes evaluating the tangible and latent difficulties they confront, which
informs the urgency and focus of the response.

### Latent Need

The customers have a problem or they have a problem and understand that they
have a problem.
These are the challenges that customers may not fully recognize or deem
important yet. Such unrecognized needs can represent untapped opportunities,
ripe for innovative offerings.

1. What workarounds are currently being used by customers that might signal an
underlying challenge?
1. What recurring pain points or frustrations hint at deeper issues?
1. Are there industry shifts or emerging technologies indicating new customer
needs?
1. What prevailing customer assumptions about their current offerings could be
addressed or improved upon?
1. What advancing technologies might unveil needs that are not on customers'
radar?

### Active Need

The customers recognize a problem -- they are in pain -- and are actively
searching for a solution, but haven’t done any serious work to solve it yet.
They have a vision: they have an idea of what a solution to the problem would
look like, may have cobbled together a homegrown solution, and, in the best
case, are prepared to pay for a better solution.
Here, focus on the pain points customers are acutely aware of and urgently need
to address. Defining these helps to prioritize and tailor offerings that fulfill
their immediate requirements.

1. Are you solving a Mission Critical problem?
1. Is the solution only nice-to-have?
1. How are customers trying to address their needs, and what alternatives are
they considering?
1. What is the urgency of solving these problems, and what would be the
repercussions of no solution?
1. What efforts or sacrifices are customers prepared to make to find a remedy
for their problems?

By addressing these areas, organizations can ensure their products and services
are precisely matched to real and perceived customer needs.

## A Day In The Life

This requires a deep understanding of a target company on many levels. Document
how the world looks from an end-user perspective:
Gaining a nuanced view of the customer's everyday environment provides rich
insights into how the offerings provided can be integrated into workflows and
systems, streamlining their day-to-day operations and supporting their strategic
goals.

1. How does an end user spend their day?
1. What products do they use and for how long?
1. How would their life change if they started using your product?
1. What about their manager?
1. What about the president or executives of the company?
1. What about the IT department? What other systems do they support?
1. How do customers' daily activities interface with the product or service?
1. Are there existing tools or systems that you would need to complement or
replace?
1. How would the adoption alter their typical day, workflows, or system use?

## Organizational and Customer Influence Map

Most customers don’t work by themselves. They interact with other people. List
all of the people you believe could influence a customer’s buying decisions. If
you’re targeting large companies, you might have a lot of complexity and
unknowns in your diagram. Document the relationships between the Recommenders,
Influencers, Economic Buyers, Decision Makers and Saboteurs.
Identifying key stakeholders and the influential web within organizations
clarifies who will weigh in on purchasing decisions. Recognizing these
relationships is crucial for crafting persuasive communication.

1. How do you think a sale will be made?
1. Who has to be convinced and in what order?
1. Which individuals have the final say, and how does their influence filter
through the organization?
1. How do you envision a sale unfolding?
1. What sequence of approvals is needed, and who needs convincing?
1. Can you spot potential advocates who will champion the value of your
offering?
1. What credible sources might influence their thinking?

## ROI (Return On Investment) Justification

What is the customer’s expectation from their investment measured against goals
such as time, money, resources and status?
Clearly stating the potential gains from the investment in your offering helps
justify its adoption. It's about identifying the benefits whether they are more
straightforward, like cost savings, or more intangible, such as reputation
enhancement.

1. What measurable advantages can customers expect from adopting your
deliverables?
1. What is the predicted timeline for realizing these benefits?
1. How does your offering stack up against others in delivering ROI?

## Minimum Feature Set

1. What is the smallest set of features that customers will pay for in the first
release?
1. What is the smallest or least complicated problem that the customer will help
us solve?
Pinpointing the most fundamental aspects necessary to address the identified
customer problems without extraneous complexity is essential. This focus helps
to prioritize the features or service elements that are most critical at launch.

1. Which core features or service elements are customers willing to pay for
initially?
1. How does each identified feature or service aspect address the primary
customer challenges?
1. What future enhancements might customers find valuable, and how should they
be introduced?

This structured approach to customer and problem hypotheses aligns the
development of both products and services with market requirements. It ensures
that what's brought to market is both relevant and positioned to effectively
meet customer expectations and industry needs.
4 changes: 2 additions & 2 deletions docs/structure/market-type.md
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1. What is the market share of each of the competitors?
1. What is the total marketing and sales dollars the market share leaders will
be spending to compete with you?
1. Do you understand the cost of entry against incumbents? # What performance
attributes have customers told you are important?
1. Do you understand the cost of entry against incumbents?
1. What performance attributes have customers told you are important?
1. How do competitors define performance?
1. What percentage of this market do you want to capture in years one through
three?
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