Jameel Somji – Using Design Sprints to Find Answers to Critical Business Question

This is a talk for Design Research 2019 in Vietnam by Jameel Somji

Transcript

1. Find Answers to Critical Business Questions Using Design Sprints Jameel Somji, CFA | Founder & CEO of SpiNovation Labs SpiNovation Labs SpiNovation Labs
2. 2 SpiNovation Labs Source: Google Design
3. 3 SpiNovation Labs Product Design Sprint length 3-5 days Source: Google Design
4. 4 SpiNovation Labs
5. 5 Would Seniors Rent Units in a NEW $30 Million Residential Community? SpiNovation Labs
6. 6 SpiNovation Labs Land Purchased to Develop Residential Community
7. 7 SpiNovation Labs Niagara Falls, Canada
8. SpiNovation Labs 8 Vision
9. SpiNovation Labs 9 Targeting Seniors
10. 10 Why? SpiNovation Labs
11. 11 SpiNovation Labs 50% Occupancy after 1 year :( Orillia, Canada
12. 12 How? SpiNovation Labs
13. 13 SpiNovation Labs Bank Research Partner
14. 14 SpiNovation Labs 1 Bedroom Units 2 Bedroom Units 80% 20% Forecast
15. 15 SpiNovation Labs Orillia, Canada
16. 16 SpiNovation Labs 1 Bedroom Units 2 Bedroom Units 80% 20% 20% 80% Actual Demand
17. 17 Let’s try a different research approach SpiNovation Labs
18. Sprint Participants CEO Architect Head of Marketing & Sales Property Manager UI/UX Designer Sprint Master (Jameel) SpiNovation Labs 18
19. 19 Sprint Day 1 (8 hours) SpiNovation Labs
20. Long Term Goal SpiNovation Labs 20 Build a rental only residential community for Seniors in Niagara Falls, Canada
21. Target Customer Profile Demographic Age: Primary: 55-75 Working or recently retired Household income: $40k+ Married or widowed Live in large home and children have left. Living in an old apartment Active & healthy 21 Location Primary: Niagara Falls Secondary: Niagara on the Lake, St. Catherines, Grimsby, Lincoln, Port Colburn Motivations Looking to move to a modern residence with little to no maintenance required. Sell home to access equity to fund retirement
22. Customer Journey Map SpiNovation Labs 22 1. See ad 2. Visit website 3. Phone agent for tour or more info 4. Agent follow-up 5. Client talks to family members 6. Make decision to rent 7. Submit deposit to secure rental unit (1 months rent) 8. Sell their own property (takes 6-12 months) 9. Move in 2 years later 10. Enjoy new home
23. Conduct research interviews with experts SpiNovation Labs 23 Real Estate Agents: • Apartment rental availability 1% • 90% of housing options multi-story Seniors Moving Company • 30% of residents are Seniors • Downsizing a reality Local Seniors home: • 200 person waiting list at senior homes. • Pricing • Competition Commercial Banker: • Financing City hall - Urban planner • Competition • Government incentives Senior Recreation Centre: • Location • Marketing • Seniors to test prototype with
24. SpiNovation Labs 24 Recruit Seniors
25. Critical business questions to answer in Sprint Will Seniors rent a unit? Price affordable? Demand for 1, 2 or 3 bedroom units? Unit design, layout & finishings desirable? Location desirable? SpiNovation Labs 25
26. 26 Sprint Day 2 (8 hours) SpiNovation Labs
27. Find design inspiration for prototype SpiNovation Labs 27
28. Find design inspiration for prototype SpiNovation Labs 28
29. Find design inspiration for prototype SpiNovation Labs 29
30. Why is the Elgin right for Customers? The newest property in Niagara, close to the falls and priced right. Senior Community Private backyards/decks and patios Rightsizing - 1500 to 1000 Main floor bedroom Lawn, snow and property maintenance included Value Prop
31. 31 Sprint Day 3 (8 hours) SpiNovation Labs
32. Build prototype SpiNovation Labs 32
33. Build prototype SpiNovation Labs 33
34. Settle on 5 test customers SpiNovation Labs 34
35. 35 Sprint Day 4 (8 hours) SpiNovation Labs
36. Test Prototype with 5 seniors SpiNovation Labs 36 85% of problems can be gained from talking to 5 people. Learn More
37. SpiNovation Labs Senior Feedback 37
38. Answers to critical business questions Would Seniors rent a unit? No Stairs No underground parking, Price affordable? Yes Demand for 1, 2 or 3 bedroom units? 2 bedrooms Unit design, layout & finishings desirable? Yes Location desirable? Yes SpiNovation Labs 38
39. The verdict SpiNovation Labs Idea was an… Efficient failure Flawed Success Epic Win 39
40. 40 What Next? SpiNovation Labs
41. SpiNovation Labs Source: Google Design is about balancing...
42. Design challenges SpiNovation Labs 42 Design Issues Mitigation Feasible (engineering) Profitable Stairs Add Elevators or other solution Yes No No Underground Parking Add underground parking or other solution Yes No
43. 43 The Iteration Sprint (Day 5, 6 & 7) SpiNovation Labs
44. The New Concept SpiNovation Labs 44
45. Answers to critical business questions Would Professionals rent a unit? No Competition Price affordable? Barely Unit Preference? 1-2 bedrooms Unit design, layout & finishings desirable? Yes Location desirable? Yes SpiNovation Labs 45
46. The verdict SpiNovation Labs Idea was an… Efficient failure Flawed Success Epic Win 46
47. 47 What Next? SpiNovation Labs
48. 48 Client Changed Business Model SpiNovation Labs
49. 49 SpiNovation Labs Text from CEO
50. 50 SpiNovation Labs New Target Market Company decided to sell condos to investors who are priced out of the Toronto real estate market and were looking for a more affordable place to invest. Price of Condo Town homes Toronto, Canada Niagara, Canada $1-2 Million $0.2-0.5 Million
51. 51 SpiNovation Labs Outcome (ROI) All condo units sold out within 6 weeks of opening pre-construction sales. The project is currently under construction and is expected to be completed by 2022.
52. 52 SpiNovation Labs
53. 53 Appendix SpiNovation Labs
54. When to sprint? -Start of new project to define product -Hit a roadblock -Inject speed into your process SpiNovation Labs Source: Google
55. When not to sprint? -Have clear product direction -> just need time to build -Don’t have leadership buy-in -Don’t have the right team SpiNovation Labs Source: Google
56. Executive Sponsor (Decider) Designer Tech/logistics Lead Finance Sprint Team Marketing Customer expert Sprint Facilitator SpiNovation Labs
57. What’s the catch? -Prototypes won’t be perfect -Take multiple sprints to find product-market fit. SpiNovation Labs
58. Sprint ROI -Compress 3-6 months of work into a few days -Get product to market faster -Prototype costs <5% of building the wrong thing. SpiNovation Labs
59. Additional Sprint Resources SpiNovation Labs Google Design Sprint Toolkit Lightening Decision Jam -a great way to introduce sprint methods into your organization Sprint Book by Jake Knapp
60. Drop Jameel Somji a message if you want to chat about design sprints! jameel@spinovationlabs.com SpiNovation Labs
61. Jameel Somji, CFA Founder & CEO SpiNovation Labs Thank You