Innovator’s Method. Engineering uses “design thinking.” Entrepreneurship
a. Step 1: Insight. ”Savor Surprises.” Associative thinking combines things that don’t usually go together to create something new. Creativity is connecting things. Triggering new ideas (from Innovator’s DNA): Observe, Network, Experiment, and Ask Questions to get to Associative Thinking.
b. Step 2: Problem. Find out if you’re solving a problem that customers need/care about. Look at symptoms and get to the root cause of those symptoms. Discover the job to be done. Why would a customer hire your product? Look at functional, social, and emotional issues. Example: Digital watches did not totally displace mechanical watches. Why? Social reasons—high-end watches lend prestige and appeal to emotions.
c. Step 3: Solution. Develop a prototype of minimum awesome product. Series of prototypes—viable to awesome product. 1. Go broad with possible solutions; 2. Theoretical prototype—conceptual model of your solution, use “wow” test with customers; 3. Virtual prototype—Mock-up and wow test; 4. Minimum viable awesome prototype. Theoretical and virtual are fast—you can create a lot of them in a short period of time.
d. Step 4: Business Model. Discover a low-cost, go-to-market strategy. Use Business Model Canvas by Osterwalder to consider major business assumptions. Example: Indian company (Godrej) found that 80% of Indian houses don’t have a refrigerator. Godrej did not leap to a conclusion, but answered the “job to be done?” Small refrigerator would not work. No consistent power in rural India. Rapid prototyping produced more of a cooler, less of a refrigerator and a battery to deal with intermittent power.