Page 131 - Transforming an Idea Into a Business with Design Thinking

110 ◾ Transforming an Idea Into a Business with Design Thinking

Areas of assumptions include all aspects of the business model:

– Customer motivations, needs and future behavior expectations
– Value Proposition
– Value Delivery
– Value Creation
– Value Partnership
– Value capturing, including pricing and licensing model
– Value funding, including cost projections
– Experience Implications.
– Resources, Process and Technology dependencies

If during validation you find out that the assumption did not hold
ground, then it is necessary to have a critical discussion among the stake-
holders to figure out the next steps. It is important to know that at times
it is okay if your assumptions do not hold ground. But when that hap-
pens, you need to move forward nonetheless. However, this should be a
rare event, and the team should agree that they are ready to overcome this
obstacle.

6.1.1 Impact

If an assumption is proven false through research, negative consequences on
the business would result.

◾◾ Impact is Minor if the consequence is minimal.
◾◾ Impact is Major if the consequence is drastic but recoverable.
◾◾ Impact is Critical if the consequence is catastrophic (Figure 6.1).

These assumptions should be looked at from the lens of an hour glass,
where the top half will be filled with these minor, major and critical
assumptions at the beginning of the venture. However, as your team goes
through the first three stages, these assumptions will be validated, and the
bottom half will continue to fill up (Figure 6.2).

You have to note that as you move forward in your venture, the top half
will continually be filled with newer assumptions, so do not consider that
your initial set of assumptions are all the assumptions you need to worry
about.