# Cultivate — full article text > Cultivate is a product innovation studio in Melbourne, Australia, helping > organisations validate ideas and launch the right product to market quickly. > This file contains the complete text of every article published on the site. Site map and page descriptions: https://www.cultivateideas.com.au/llms.txt --- ## The Power of Rapid Experimentation in New Product Development - URL: https://www.cultivateideas.com.au/article/the-power-of-rapid-experimentation-in-new-product-development - Category: Experimentation - Published: June 6, 2023 - Author: Gwendolyn Ong In the ever-evolving landscape of business and innovation, the ability to develop successful new products is a crucial element of staying ahead of the competition. However, traditional product development approaches can be slow, costly, and prone to failure. That's where the transformative power of rapid experimentation in new product development comes into play. Let’s show you how rapid experimentation can help businesses navigate this dynamic landscape and generate money making products. To truly understand the power of rapid experimentation, we must first acknowledge the challenges faced by businesses in the traditional product development process. The time and cost involved in bringing a product to market, coupled with the risk of failure, can be daunting. This is where the concept of rapid experimentation emerges as a game-changer. It enables businesses to test and iterate ideas quickly, gaining valuable insights and reducing the risk of investing in unproven concepts. In the realm of rapid experimentation, failure takes on a new meaning. Rather than being viewed as a setback, it becomes an opportunity for growth and learning. We understand that the most successful companies in the world are learning, growing and innovating to stay ahead. What we also need to understand is the importance of embracing failure as an inherent part of the innovation process. The concept of rapid experimentation involves quick testing and refining of your ideas to determine what works and what doesn't, before making substantial investments in time and resources. By encouraging a culture that accepts failure as a stepping stone towards success, we empower founders, entrepreneurs and innovators to take calculated risks, learn from their experiments, and iterate towards winning solutions. At Cultivate, our methodology and approach to new product ideas is grounded in rapid experimentation - failing fast and failing often to gain new learnings. We do that through our unique way of building Minimum Testable Products (MTPs). Yep - you heard that right. Not to be confused with Minimum Viable Products, but that’s for another article. Let’s dive deeper into the benefits of rapid experimentation and how failing fast and often can transform the way you and your organisation approach new product development. ### Accelerate Time to Market By experimenting quickly with MTPs, you can validate your ideas and make necessary adjustments to bring your product to market faster. The earlier you can validate your concept, the sooner you can start generating revenue and reap the rewards. And when we say faster, we mean in weeks - if not days. ### Reduce Risk of Failure By failing fast and often, you can identify issues and weaknesses much earlier on, saving valuable time and resources by avoiding costly mistakes. This iterative approach allows for course correction and informed decision-making, resulting in more robust products that are better aligned with market demands. ### Cost-Efficiencies Rapid experimentation enables you to test your ideas with minimum investments of time and resources. You don’t have to build costly MVPs as we know that MTPs are by far faster and leaner. By failing fast, you avoid costly mistakes that come with substantial early investments and instead, make small, low-risk investments that can yield big results. ### Fuels Innovation and Growth At its core, rapid experimentation serves as a catalyst for innovation by fostering a culture that embraces failure and encourages bold risk-taking. This mindset unlocks the potential for breakthrough ideas, creative solutions, and unprecedented growth. By continuously experimenting and exploring new avenues, businesses can stay ahead of the curve, disrupt industries, and create a legacy of innovation. ### Unveils Customer Gold Failing fast and often through MTPs provides immediate learnings from your target market on what they like and dislike about your product. This is GOLD. These learnings help refine your ideas and make improvements, leading to a better end product - all before you build it. This helps you make informed decisions on what to pursue and what to discontinue, leading to a better match between your product and the market. ### Increase Confidence and Decision Making As we know, there is no magic 8 ball to tell us the future of the success of a product. The iterative nature of rapid experimentation builds confidence in your product development process. It allows you to make data-backed decisions and take calculated risks, resulting in a more strategic and informed approach. This increased confidence empowers you to navigate the complexities of new product development with clarity and conviction. The impact of rapid experimentation extends far beyond individual product development projects. It lays the foundation for a culture of innovation within organisations, growing startups and product teams. At Cultivate, we empower our clients to thrive in an era of relentless change. We help you navigate the complexities of new product development and provide the innovation framework, deep knowledge, and support needed to unlock the full potential of rapid experimentation. If your organisation is ready to drive the best ideas forward, hit the Let's Talk button! ‍ --- ## Decoding Idea Validation: Your Top Questions, Answered - URL: https://www.cultivateideas.com.au/article/decoding-idea-validation-your-top-questions-answered - Category: Validation - Published: June 9, 2023 - Author: Gwendolyn Ong As product veterans, innovation consultants and mentors for the startup industry, we come across many common questions that we are beginning to compile as a resource to help others that are starting on their journey. These questions are beyond-a-doubt questions that come up in almost every consultation. If your question isn’t here, please let us know and we will answer it in the next series! ### 01. How do I know whether my idea is worth pursuing? While we thrive on exploring cutting-edge technologies and fresh ideas, determining whether an idea is worth pursuing is an enigma that remains unsolved. We understand the yearning for a definitive answer to this question. However, we believe that if you can address and provide substantiating evidence for a series of crucial questions, your idea may hold promise. These questions consider the fundamental aspects of a successful product and serve as a compass, directing your focus and effort. Here are the questions that can guide you: - **Desirability:** Do you have customers who are genuinely interested and willing to pay for your idea? - **Viability:** Can your idea generate a return on investment? Is there a viable business model that supports its long-term sustainability? - **Feasibility:** Do you possess the necessary resources, including a capable team, adequate funding, the right technology, and sufficient time, to bring your idea to life? If you can definitively answer these questions, your idea may indeed be worth pursuing. However, it is crucial to resist the temptation to plunge straight into the build phase. This is a common pitfall. Instead, take the path of validating your idea before fully committing to it. We recommend exploring **The Product Foundation Kit**, which offers the **Ultimate Idea Screening Checklist.** Remember, idea validation is an essential first step in the journey towards creating a successful product. It helps you mitigate risks, fine-tune your strategy, and ensure that your efforts are focused on ideas with the greatest potential for success. ‍ ### 02. How will I know when an idea is validated? Idea validation is not a simple ‘yes’ or ‘no’ proposition. **I want you to imagine a journey with several interconnected steps.** Think of it as climbing a staircase. Each step represents a milestone in the validation process, moving you closer to determining the viability of your idea. While individual steps may not provide a definitive answer, when you zoom out and look at the overall progress, you start to see leading indicators. These indicators help you gauge the potential success or failure of your idea and guide you in making informed decisions. #### It's an iterative process that allows you to learn, adapt, and refine your idea, increasing the chances of reaching a validated and market-ready product. ‍ It's important to recognise that the definition of success or validation may vary depending on different perspectives. What may be considered successful for one person or entity may not be the same for another. Investors, for instance, often evaluate success based on the market potential and the return on their investment. They want to see the ability to capture a significant market share and generate substantial revenue. On the other hand, for a new startup founder, success may start with selling just one product, then gradually scaling up to 10, 100, and beyond. Each step along the way builds confidence and helps them progress on this interconnected staircase of validation. To determine what success metrics are relevant to your idea, it's important to define clear goals and objectives. These metrics should be specific to your industry and business. Once you have identified these metrics, rapid experimentation becomes a powerful tool to test the assumptions that underpin your idea. #### You can do that by narrowing down and conducting small-scale, real world experiments to capture data, and draw insights. Be sure to make sure to align your idea with the success metrics as this is how you steer and make informed decisions on how to move forward. Our methodology and rapid experimentation process allows you to learn, adapt, and iterate, ultimately increasing your chances of reaching a validated state. ‍ ### How can I test my idea without investing too much money? Testing and validating your idea without investing too much money requires a shift in mindset and a focus on lean, efficient methods. Many people incorrectly believe that idea validation requires a large budget for building an MVP, creating prototypes, or hiring external help. At Cultivate, we introduced a game-changing concept called **Minimum Testable Products (MTPs)** that revolutionised the way we test and validate our own ideas and our clients. MTPs allow you to launch your own experiments quickly and effectively. But first, it starts with changing the pre-conceived notion that validating an idea requires building a functional MVP. Now, let's talk about effort. #### MTPs are designed to be lean, fast, and affordable. We have developed a collection of methods specifically tailored for creating MTPs that serve as tools for testing assumptions and gathering valuable insights from your target audience. With our curated database of methods, you can easily find the right approach based on your specific needs. So if you're looking for **low-cost methods or low-effort techniques,** our database has you covered. It's a treasure trove of proven strategies to help you validate your ideas efficiently and effectively. If you’re new to our world of MTPs or the [Cultivate Methods Database,](https://cultivateideas.com.au/products/product-methods-early-access?utm_source=website&utm_medium=article&utm_campaign=top3questions) we have some incredible resources that will help you! ‍ --- ## ClickUp: Optimising Pricing with the Haggle Method - URL: https://www.cultivateideas.com.au/article/clickup-optimising-pricing-with-the-haggle-method - Category: Field Report - Published: June 2, 2023 - Author: Daniel Sterry ### Field Report Explore how [ClickUp](https://clickup.com/), a leading project management software company, implemented the Haggle method to optimise its pricing strategy, gain new insights, and drive growth. ClickUp recognised the importance of pricing and quantified buyer personas as key drivers of customer acquisition and retention, and they sought a unique experimentation approach to empower customers and personalise their pricing. ClickUp offers a comprehensive suite of project management tools designed to enhance team collaboration and productivity. As the project management software market became increasingly competitive, ClickUp aimed to differentiate itself by implementing a dynamic and customer-centric pricing strategy. The Haggle empowers your customers to negotiate the price and terms of their purchase. Instead of presenting just a fixed pricing model, this method gives customers a chance to present their own offer by asking them how much they are willing to pay and for how many users or units. ![](https://www.cultivateideas.com.au/images/articles/field-report-clickup-plans.png) By providing customers with this level of control over the transaction, they are more likely to feel invested in the product or service and perceive greater value from the purchase. With this, you'll be able to tap into a broader audience that may have previously been untapped, while still remaining within a viable profit range. The Haggle method empowers ClickUp to optimise their pricing strategy and effectively convert their target market. It ensures they capture maximum value without leaving money on the table, while also allowing customers to feel like they've secured a great deal through negotiations. > ClickUp embraced the Haggle method as a way to involve customers in the pricing process and create a sense of ownership over the value they received. Instead of just presenting their pricing plan tiers, ClickUp introduced a "Make a Deal" feature, inviting potential customers to submit their desired price and the number of users they needed for their teams. ![](https://www.cultivateideas.com.au/images/articles/field-report-clickup-modal.png) When customers clicked this feature, they were presented with a form to specify their desired pricing and feature preferences. The form allowed customers to choose the specific paid plan they wanted to make a deal on, indicate the number of team members they need, and select their preferred payment frequency, whether monthly or yearly. Customers were also given the opportunity to provide additional information or specific requirements they had for their desired plan. ![](https://www.cultivateideas.com.au/images/articles/field-report-clickup-email.png) By implementing the Haggle method, ClickUp achieved several benefits. First and foremost, it allowed ClickUp to learn more about their customers and identify specific buyer personas and their willingness to pay. Capturing these early insights are by far the most important lessons learned. Secondly, it opened the door for ClickUp to reach a wider audience, such as individuals and smaller teams that might have been deterred by fixed pricing tiers. It allowed customers to feel a sense of control and customisation over their pricing, leading to increased customer satisfaction and conversion. Lastly, the Haggle method fostered a spirit of collaboration and dialogue with customers, strengthening the customer-product relationship. However, implementing the Haggle method also presented some challenges. ClickUp needed to carefully balance revenue considerations and ensure that the negotiated prices were within acceptable ranges. They also needed to manage the expectations of customers who might submit unrealistic or overly discounted offers. For those customers that complained, ClickUp offered 3 free months to apologise for not meeting expectations. But the lessons learnt far outweighed the cost of giving temporary free access to those customers. Implementing the Haggle method provided ClickUp with invaluable insights into customer preferences and willingness to pay, enabling targeted quantified buyer persona strategies. Moreover, it eliminated barriers for individuals and smaller teams who may have been deterred by fixed pricing tiers, resulting in increased satisfaction and conversion rates. ClickUp's commitment to meeting customer needs through a unique pricing structure that aligned with customer preferences and dynamic buyer personas set them apart. By utilising the Haggle method, they were ready to optimise, test their pricing strategy and drive new growth. Discover the power of the Haggle method and more by unlocking a world of possibilities with our [Cultivate Methods Database](https://www.cultivateideas.com.au/products/product-methods-early-access?utm_source=website&utm_medium=article&utm_campaign=clickup). Access the full range of methods to gain valuable insights, enhance customer satisfaction, and propel your ideas forward. This field report marks the beginning of an exciting series that delves into the realm of real-world experimentation. Through a collection of in-depth field reports, we explore how industry leaders employ experimentation and innovative methods to validate and propel the growth of their products. You’ll will gain inspiration and ideas on how to implement these very same techniques within your own startup or organisation. --- ## Validated Design - a validated approach to new product design - URL: https://www.cultivateideas.com.au/article/validated-product-design - Category: Validation - Published: July 17, 2022 - Author: Daniel Sterry At Cultivate we were lucky to visit a new biotech company making waves. It inspired me to write about our theory of Validated Design and why it’s so important. Walking through their lab got me thinking about experimentation in the traditional sense - a process that is carried out to support or refute a hypothesis. A process that begins with an educated guess or thought that requires it to be challenged, tested, and measured. Good product design isn’t just about how beautiful you can make something look or about how functional it can be. It encompasses so much more than that. Validated design works on the principle that every product is made up of a series of interrelated areas and processes that work together, and that the success of the product depends on the ability to validate and understand those areas deeply. It works on the basis and mindset of applying rigorous scepticism to everything you do. There are three key areas to understand in order to improve the effectiveness of a new product: desirability, feasibility, and viability. It doesn't matter what your product is, how complex it is, or what industry you’re in, we are all trying to answer the same questions. Will they use it, will it work, and can I make money from it? ![](https://www.cultivateideas.com.au/images/articles/cultivate-dvf.png) *Cultivate DVF Framework* American engineer, statistician, and professor Dr W. Edwards Deming first derived the philosophy and method that allowed individuals and organisations to plan and continually improve themselves, their relationships, processes, products and services. His philosophy is one of continual improvement; avoiding blame and redefining mistakes as opportunities to learn and improve. > *“The ultimate purpose of collecting data is to provide a basis or recommendation for action.”* Data played an essential part in his decisions and aided in the continual improvement of results. Data was used to measure the impact of experiments in order to further improve the process. When we create new products we typically make hundreds of assumptions. An educated guess or thought. By defining the assumptions that form our ideas, we can start to recognise and act on those areas that need to be challenged. For some, these areas go untested for far too long and are only questioned once heavy investment has been put into building a product. As time progresses, problems begin to compound and ultimately a lack of early and continuous validation can lead to a product’s demise. You should begin to unpack the three key areas of desirability, feasibility, and viability by reframing your thoughts and assumptions encompassing these three areas into 100s of questions. By applying experimentation methods to challenge them, they should present themselves as opportunities to learn that are grounded in reality. It gives you insight into the exact nature of the problem to be solved and how you should be solving it. > *“You should measure the numbers that drive action, it’s only then will you know what to do next.”* Unless your name is Elon and you are sending rockets to Mars, asking yourself “Can I build it?” is often not your first question, especially if you have the right team or you are a well-funded corporation. Asking the question “Do customers want this?” is usually the hardest step and often the most overlooked. Start with simple questions first as these will lead to more complex questions as you learn more over time. ![](https://www.cultivateideas.com.au/images/articles/cultivate-validated-design-framework-biotech-2-min.png) Let’s stay within the context of biotech and take the example of a micro sampler device and define a few starting assumptions. Again, ensuring we keep things simple in the beginning. - We believe we can extract a sample without introducing inflammation or blood [feasibility] - We believe we can design a tamper-proof single-use device [feasibility] - We believe that the payee (doctor/government/insurer) will pay at least $250 per test [viability] - We believe doctors are willing to choose this method over current methods such as MRI [desirability] - We believe patients are willing to use this device on themselves [desirability] - We believe we can manufacture a device for a unit cost of $54 including lab sample processing costs, storage, and logistics [viability] - We believe we can design a device that requires no cold storage [feasibility] We use 100s of [unique methods](https://www.cultivateideas.com.au/products/product-methods-early-access) to rigorously test these three areas and the questions that arise within them as quickly as possible. We call them MTPs. A ‘Minimum Testable Product’. Concepts, assumptions, and ideas are tested with customers as soon as they are defined enough to be demonstrated. The key is to develop just enough of the product to determine whether it sticks true to your original assumption or hypothesis. If not, ask yourself what did we learn and what can we change to test this again? Using MTP methodology allows us to significantly reduce our effort to engage a particular audience, test desirability, design, function, or even understand investor appetite, but most importantly learn something new. ![](https://www.cultivateideas.com.au/images/articles/cultivate-validated-design-framework-alpha.png) *Cultivate Validated Design framework* Taking a Validated Design approach shows us how best to adapt our products based on what we have learned and adjust incrementally. It's so important to challenge your thinking and take a validated approach to designing new products so that you can make informed decisions. It will help you reduce uncertainty and risk while allowing you to gain traction, fidelity, data, market insights, assets, and even new customers. It allows you to build momentum and iteratively push your product or idea in the right direction. At Cultivate, we talk a lot about data and experimentation. We believe in Validated Design through data-driven decisions. It helps us design better products and allows us to focus our time, energy, and resources in the right direction. --- ## How Marvel Studios experimented on you - URL: https://www.cultivateideas.com.au/article/how-marvel-studios-experimented-on-you - Category: Industry - Published: September 13, 2021 - Author: Daniel Sterry ### The fans got it made We’ve all been experimented on before, but Marvel Studios took involving the customer to the next level. In 2009, fans were introduced to the character Deadpool in the film X-Men Origins: Wolverine, played by Ryan Reynolds. The character suffered huge backlash and was criticised due to the character not sticking true to its origins. In fact, the first adaptation of Deadpool was so poorly received, it was said that any future attempts at producing a movie would be impossible to salvage. In 2010, Ryan was determined to bring the Deadpool character back to life, co-writing a new script that adapted the character more faithfully. With a hefty estimate of $58 million to produce, the risk for the studio was far too great. The damage had been done. Ryan spent the next four years pushing for the movie to be produced. It wasn’t until 2014 that test footage of a supposed new Deadpool film was ‘leaked’ to the internet masses. With an overwhelmingly enthusiastic response to the footage from fans and the general public, the film was greenlit by Fox Studios 24 hours later. In a 2016 interview, the interviewer asked Ryan who leaked the footage and with a grin and guilty smile, he simply replied “Who knows?”. The movie was a huge success generating $782.6 million at the box office becoming one of the highest-grossing films of the year and breaking numerous records. On the scale of things, a little price to pay to be sure. > “The fans got it made. It’s a great story. It’s totally fan-driven in every way.” Experimentation opens up new learning opportunities and allows you to measure market demand while lowering the barrier to entry in getting your product in the hands of real fans *cough* customers. The key is understanding which method will accurately measure the assumption you are trying to test. **Watch the Ryan Reynolds interview here:** --- ## Ray-Ban and Facebook introduces Ray-Ban Stories - URL: https://www.cultivateideas.com.au/article/ray-ban-and-facebook-introduces-ray-ban-stories-an-all-too-familiar-story - Category: Industry - Published: September 10, 2021 - Author: Daniel Sterry ### An all too familiar story? This Thursday, the first pair of smart glasses made by Facebook is going on sale for just over $400. Partnering with conglomerate eyewear manufacturer Luxottica Group (Ray-Ban), the device has been aptly named Ray-Ban Stories. > “Our mission is to help build tools that will help people feel connected any time, anywhere.” Rocking the classic Wayfarer design, the glasses feature two-front facing cameras for capturing video and photos. Syncing with a companion camera roll app called Facebook View where clips can be edited and shared to other apps on your phone. ![](https://www.cultivateideas.com.au/images/articles/facebook-ray-ban-stories-3.png) There is also a physical button on the glasses for recording, or you can say “Hey Facebook, take a video” to control them hands-free. Sound familiar? In 2013, Google also released Google Glass, an optical head-mounted display designed in the shape of a pair of glasses. A revolutionary device that set out to change the way we interact with the world around us by bringing technology to the forefront of our everyday lives. Although the device generated notable buzz across the world, there were growing safety and security concerns. People were not used to seeing such a device fitted with a camera constantly pointed at them. Bars and restaurants went as far as to ban the use of the product in their establishments. Even between friends, it wasn’t seen as socially acceptable and was even considered ‘creepy’. Google went as far as to flaunt its new device at the New York Fashion show, in a cringey attempt to alleviate the feedback of its ugly look. A problem Ray-Ban won't have. There were many reasons Google Glass failed, but mostly people were just not ready for such a product. You could look at humans as robotic machines who make decisions based on logic. But in reality, humans can be irrational, emotional beings who are influenced by biases, experiences, and social norms when making decisions. The product never reached the mass market and in 2015 Google decided to discontinue the product. Google is now reintroducing Google Glass Enterprise, targeted towards enterprise players to be a hands-free device for smarter and faster hands-on work. Although today the technology has significantly improved in some aspects, Facebook has been able to fit an impressive amount into their frame of just a few millimetres. ![](https://www.cultivateideas.com.au/images/articles/facebook-ray-ban-stories-4.png) > “That’s why we baked privacy directly into the product design and functionality of the full experience, from the start.” We all know Facebook is no stranger to privacy concerns and it seems they are attempting to address them directly. A LED is hardwired to the camera that shines with white light to notify people nearby when you’re taking photos or videos. Facebook’s hardest sell might not be privacy, but the product itself. Snapchat is now in its third attempt at creating its version of smart glass. With improvements each time, they too failed to catch the desire of the target market. We will see if the world is ready for Facebook.