People in the real world have real needs. 0:00 Let's see how these needs are manifested in businesses and 0:03 organizations who develop new products. 0:06 This section is inspired by and based on the work of 0:10 Josh Seiden who highlights the difference between requirements and hypothesis. 0:14 In many organizations, both big and small. 0:19 Product development and business owners introduce needs as requirements. 0:22 Sometimes a lengthy spec document is produced to detail those requirements. 0:28 These requirements are an excellent tool to use in production mode based on 0:33 known and agreed upon standards. 0:38 An example for requirement is develop a smart shopping cart for 0:41 grocery stores that will help people scan and pay for 0:45 their product as they walk through the aisles. 0:49 A requirement is a way of framing a need by a product or 0:53 business practitioner to manage the work of a team. 0:56 Requirements are perceived as necessities although they are based on 1:00 thinking done by a person who does not always have access to users' needs, 1:05 behavior or problems. 1:09 Hypotheses are a better way to reframe requirements. 1:12 They are much more effective for developing new products under 1:17 conditions of extreme uncertainty as Eric Reese has noted. 1:20 A hypothesis is a proposed explanation of the way things work 1:24 that includes both an assumption and a test. 1:30 What happens if we frame the requirement I just gave as an example of a hypothesis? 1:33 [SOUND] Let's see. 1:39 We believe that moms who visit grocery stores with their kids will pay for 1:40 a device that makes their shopping experience faster and more fun for 1:44 their kids. 1:49 We will know this is true when 1) moms use our prototype efficiently, and 1:50 2) kids are having fun during grocery shopping. 1:56 It's easy to see how an hypothesis includes both an assumption and a test. 2:00 It is also clear that the hypothesis does not specify the solution. 2:06 It leaves room for the team's creativity to solve a user problem or 2:11 meet a real need it describes. 2:15 This hypotheses can be easily tested. 2:18 Test results will give the team a very clear answer whether or 2:21 not the hypotheses is validated are not. 2:25 When you try to understand whether your target audience has a certain problem, 2:30 it is extremely beneficial to develop assumptions then test them. 2:34 This validated learning is key to developing empathy with your 2:39 future potential customers. 2:42