UNIT III

APPLIED DESIGN THINKING TOOLS

Concept of Minimum Usable Prototype [MUP] - MUP challenge brief -
Designing & Crafting
the value proposition - Designing and Testing Value Proposition;
Design a compelling value
proposition; Process, tools and techniques of Value Proposition Design
Minimum Usable Prototype (MUP)
● Entrepreneurs success with innovation and enterprise creation pursuit lies both in their
ability to identify problems that are worth solving, and to bring that idea (an imagined
solution to solve the problem) to life by rapidly building prototypes.
● Prototype is not POC (Proof-of-Concept), which is a basic working version to show that the
solution works.
● Prototype is that which the target customer uses to test the solution and validate the value
proposition offered by the innovative solution, thereby providing critical feedback to the
innovator.
● In FORGE we call this Prototype, the Minimum Usable Prototype (MUP) and the MUP proves
beyond doubt the possibility of an efficient and cost-effective solution to the target problem,
thereby creating a compelling case for this solution to be launched in the market as a product
paving way for business building and enterprise creation.
 ● In order for startup founders to achieve the Proof-of-Product milestone, it is imperative to
focus the whole prototyping activity only towards building, testing and proving a smaller scope
of solution called the Minimum Usable Prototype (MUP).

MUP is a ‘Good is Good Enough’ solution with the most important features that is enough to convince
the end-user to use it, test it for utility, usability and deployability, understand/experience its worth,
and to provide feedback on ‘willingness-to-pay’.

● A minimum usable product is a product that is functional and user-friendly.

● The purpose of an MUP is to provide a good user experience and collect feedback from
users.
● MUP is not only functional and usable but also provides a positive user experience
to its target audience.
● Usability is a key factor in the success of any product, and the goal is to create a
product that meets the needs of its users and is enjoyable to use.
How to build it:

1. Define usability goals: Identify the key usability goals for your product, such as ease of use,

efficiency, and user satisfaction.

2. Conduct user research: Conduct user research to understand the needs, preferences, and

behaviors of your target audience.

3. Design for usability: Design the user interface and user experience of your product with usability

in mind, taking into account factors such as simplicity, consistency, and intuitiveness.

4. Test for usability: Conduct usability testing with your target audience to identify any issues or

areas for improvement.

5. Iterate and improve: Use the feedback from usability testing to iterate and improve the usability

of your product.
Prototyping Principles
Advantages of Minimum Usable Prototype (MUP)

1. Early User Feedback:

● Validation of Concepts: MUPs allow for early testing of core functionalities and user
interactions, ensuring that the product aligns with user needs and expectations.
● Identification of Issues: By getting feedback from real users, teams can identify and address
potential usability problems before investing heavily in development.

2. Reduced Development Costs:

● Iterative Development: MUPs enable teams to iterate on the product design and functionality
based on user feedback, reducing the risk of building features that are not valuable to users.
● Efficient Resource Allocation: By focusing on the most essential features, teams can
allocate resources more effectively and avoid wasted effort on features that may not be
necessary.
Advantages of Minimum Usable Prototype (MUP)

3. Risk Mitigation:

● Reduced Risk of Failure: MUPs help to identify and mitigate potential risks early in the
development process, reducing the likelihood of product failure.
● Increased Confidence: By validating the core concept and user acceptance, MUPs can
increase confidence in the product's success.

4. Improved Product-Market Fit:

● Enhanced Understanding: MUPs provide valuable insights into user preferences and
market demand, helping teams to refine their product offering and improve product-market fit.
● Faster Time to Market: By iterating on the product based on user feedback, teams can bring
products to market more quickly and efficiently.
Advantages of Minimum Usable Prototype (MUP)

5. Enhanced Collaboration:

● Shared Vision: MUPs can help to create a shared understanding of the product vision
among stakeholders, fostering collaboration and alignment.
● Empowered Teams: By involving users early in the development process, teams can feel
more empowered and motivated to deliver a successful product.

In summary, MUPs are a valuable tool for product development, offering a range of benefits
including early user feedback, reduced costs, risk mitigation, improved product-market fit, and
enhanced collaboration. By leveraging MUPs effectively, teams can increase their chances of
creating successful and innovative products.
 MUP Challenge
1. Scope and Feature Prioritization:

● Limiting Features: Deciding which features to include and exclude in the MUP can be challenging,
as it directly impacts the effectiveness of testing and user feedback.
● Balancing Complexity: Striking the right balance between simplicity and functionality is crucial to
ensure the MUP remains usable while providing meaningful insights.

2. User Experience and Design:

● Limited Visual Appeal: MUPs often have a basic and unpolished design, which may not accurately
reflect the final product's aesthetics and user experience.
● Usability Testing: Ensuring that the MUP is intuitive and easy to use can be difficult, especially
when dealing with complex interactions or unfamiliar concepts.
 MUP Challenge
3. Technical Constraints:

● Development Time: Creating a MUP within a limited timeframe can be challenging,

especially if it requires complex technical implementations.
● Scalability: The MUP may not be able to handle the same load or scale as the final product,
limiting its ability to accurately test performance and scalability.

4. Feedback and Iteration:

● Interpreting Feedback: Gathering and interpreting user feedback from MUP testing can be
complex, as it may not represent the full range of user needs and preferences.
● Iterative Development: Incorporating feedback into the MUP development process can be
time-consuming and may require significant changes to the design or functionality.
 MUP Challenge
5. Expectation Management:

● Setting Realistic Expectations: Managing expectations around the MUP's capabilities and
limitations is essential to avoid disappointment or misunderstandings.
● Avoiding Overreliance: It's important to recognize that the MUP is a tool for testing and
learning, and may not represent the final product's full potential.

By carefully considering these challenges and adopting effective strategies, teams can maximize
the value of MUPs in their product development process.
Tools
The Business Model Canvas
Customer Segments are the groups of people and/or organizations a company or
organization aims to reach and create value for with a dedicated value proposition.

Value Propositions are based on a bundle of products and services that create
value for a customer segment.

Channels describe how a value proposition is communicated and delivered to a

customer segment through communication, distribution, and sales channels.
Customer Relationships outline what type of relationship is established and
maintained with each customer segment, and they explain how customers are
acquired and retained.
Revenue Streams result from a value proposition successfully offered to a customer
segment. It is how an organization captures value with a price that customers are willing
to pay.

Key Resources are the most important assets required to offer and deliver the
previously described elements.

Key Activities are the most important activities an organization needs to perform well.

Key Partnerships shows the network of suppliers and partners that bring in external
resources and activities.

Cost Structure describes all costs incurred to operate a business model.

Profit is calculated by subtracting the total of all costs in the cost structure from the total
of all revenue streams.
The Value Proposition Canvas
The Value Proposition Canvas has two sides.

Customer Profile - clarify your customer understanding.

Value Map - describe how you intend to create value for that customer.

Achieve Fit between the two when one meets the other.
Customer Pains
Undesired outcomes, problems, and characteristics

Obstacles

Risks (undesired potential outcomes)

Customer Gains
Required gains

Expected gains

Desired gains

Unexpected gains
Profile of a “Business Book Reader”

We chose to use potential readers of this book to illustrate the customer profile.
We deliberately went beyond jobs, pains, and gains merely related to reading
books, since we intended to design an innovative and more holistic value
proposition for business people in general.
Profile of a “Business Book Reader
Products and Services
Physical/tangible

Goods, such as manufactured products.

Intangible

Products such as copyrights or services such as after-sales assistance.

Digital

Products such as music downloads or services such as online recommendations.

Financial

Products such as investment funds and insurances or services such as the

financing of a purchase.
Pain Relievers
● Pain relievers describe how exactly your products and services alleviate
specific customer pains.
● They explicitly outline how you intend to eliminate or reduce some of the
things that annoy your customers before, during, or after they are trying to
complete a job or that prevent them from doing so.
● Great value propositions focus on pains that matter to customers, in particular
extreme pains.
● Great value propositions often focus only on few pains that they alleviate
extremely well.
Gain Creators
● Gain creators describe how your products and services create customer
gains.
● They explicitly outline how you intend to produce outcomes and benefits that
your customer expects, desires, or would be surprised by, including functional
utility, social gains, positive emotions, and cost savings.
● As with pain relievers, gain creators don’t need to address every gain
identified in the customer profile. Focus on those that are relevant to
customers and where your products and services can make a difference.
Designing and Crafting Value
Proposition
DESIGN
Invite Big Ideas to the Table with Books and
Magazines
1. Select books.
2. Browse and extract.
3. Share and discuss.
4. Brainstorm possibilities.

Push vs. Pull (Value Proposition Design Methodology)

Push indicates that you’re starting the design of your value proposition from a
technology or innovation you possess, whereas pull means you’re beginning with
a manifest customer job, pain, or gain.
Technology Push
Market Pull
Compare Your Value Proposition with Competitors
Draw a Strategy Canvas step by step and compare your value proposition with
those of your competitors.

1. Select a value proposition.

2. Select factors of competition.
3. Score your value proposition.
4. Add competing value propositions.
5. Score competing value propositions.
6. Analyze your sweet spot.
Value Proposition
Testing
Testing Process
Testing Process