Finding Problems Worth Solving

Objective: Explain customer problem and opportunity, distinguish their meanings, and apply them to a described case.

Customer problem: A customer problem is a relevant difficulty or unmet need supported by evidence. Opportunity: An opportunity combines a potentially valuable need with a feasible way to address it. A business is a coordinated activity rather than simply a product or an exciting idea. Identify whose problem is being addressed, how value reaches that person, and what resources the organization uses. Entrepreneurial decisions often involve incomplete information. Distinguish a claim about customer demand from evidence of actual behavior, and explain which assumption would most change the proposed decision. Application: Interviewees describe trouble arranging a reliable pickup. This most directly illustrates customer problem. A team identifies demand and a workable delivery method. This most directly illustrates opportunity.

Objective: Explain value proposition and alternative solution, distinguish their meanings, and apply them to a described case.

Value proposition: A value proposition explains the benefit offered to a specified customer. Alternative solution: An alternative solves the customer's need through another product, process, or behavior. A business is a coordinated activity rather than simply a product or an exciting idea. Identify whose problem is being addressed, how value reaches that person, and what resources the organization uses. Entrepreneurial decisions often involve incomplete information. Distinguish a claim about customer demand from evidence of actual behavior, and explain which assumption would most change the proposed decision. Application: A service promises a clearer way to schedule appointments. This most directly illustrates value proposition. Customers currently use phone calls rather than a new app. This most directly illustrates alternative solution.

Objective: Explain problem-solution fit and assumption, distinguish their meanings, and apply them to a described case.

Problem-solution fit: Problem-solution fit is evidence that a proposed solution addresses a meaningful problem for a defined group. Assumption: An assumption is an unverified condition a plan depends on. A business is a coordinated activity rather than simply a product or an exciting idea. Identify whose problem is being addressed, how value reaches that person, and what resources the organization uses. Entrepreneurial decisions often involve incomplete information. Distinguish a claim about customer demand from evidence of actual behavior, and explain which assumption would most change the proposed decision. Application: Users complete the task more effectively with a prototype. This most directly illustrates problem-solution fit. A founder assumes customers will pay a stated price. This most directly illustrates assumption.