Module 3: Define - Finding the Real Problem

🎯 What You'll Master:

✅ Turn messy research into clear problem statements
✅ Write powerful "How Might We" questions
✅ Avoid solving the wrong problem (common mistake!)
✅ Use the Problem Statement Formula
✅ Learn from Indian companies' problem-defining success

📖 The Paytm Story: Finding the Real Problem

💸 How Paytm Cracked Digital Payments in India

The Situation (2015): India was a cash-loving country. Credit cards were rare. Most people didn't trust online transactions. Government wanted to promote digital payments, but people weren't interested.

What Others Thought the Problem Was:

❌ "Indians don't have smartphones" (Wrong - smartphone sales were growing!)
❌ "People don't understand technology" (Wrong - WhatsApp was everywhere!)
❌ "Digital payment is too complicated" (Partially true, but not the core!)

What Paytm Discovered Through Empathy:

✅ People feared losing money to fraud
✅ They didn't see immediate benefit (why change from cash?)
✅ Shopkeepers resisted because they had to pay transaction fees
✅ People loved the feeling of tangible money

The REAL Problem They Defined:

"How might we make digital payments feel as SAFE, TANGIBLE, and REWARDING as cash, while making it so CONVENIENT that both customers and shopkeepers willingly switch?"

Their Solution (Based on This Clear Problem):

🎁 Cashback (makes it MORE rewarding than cash!)
🔒 Instant transaction confirmation (builds trust)
🆓 Zero transaction fee for merchants (removes resistance)
📱 Simple QR code scanning (easier than handling change!)
📊 Track all spending (benefit cash doesn't offer)

💡 Result: From demonetization onwards, Paytm exploded! Today, even street vendors use it. Why? Because they solved the REAL problem, not what they assumed the problem was!

🤔 Why "Define" is Crucial

You just did all that empathy work in Module 2 - interviews, observations, surveys. Now you have TONS of information! But raw information is like having ingredients without a recipe. The Define stage turns scattered insights into ONE clear problem statement.

🏢 Office Analogy:

Imagine this conversation:

Boss: "Our sales are down. Fix it!"
You (without Define): "Okay, let me... um... lower prices? Or hire more salespeople? Or... 🤷"

You (with Define): "I talked to customers. The real problem isn't price or sales staff. They find our product confusing. So the problem is: How might we simplify our product explanation so customers understand the value immediately?"

See the difference? Now you know EXACTLY what to solve!

📝 The Problem Statement Formula

[User] needs [need] because [insight]

Let's break this down:

🧑‍💼 [User] = Who has this problem?

Be specific! Not "people" but "working mothers in Mumbai" or "rural farmers in Punjab"

💡 [Need] = What do they need?

What outcome are they trying to achieve? Focus on the goal, not the solution!

🔍 [Insight] = Why is this important?

What did you learn from empathy? What's the deeper motivation?

🇮🇳 Real Indian Examples Using the Formula

1. 🚗 Ola Cabs Problem Statement

"Working women in Indian cities need a reliable and safe transportation option for late-night travel because they feel unsafe in regular taxis and auto-rickshaws, which prevents them from taking evening shifts or attending social events."

Solution that followed: SOS button, ride sharing with tracking, verified drivers, share ride details with family - all directly addressing the defined problem!

2. 🍔 Zomato Problem Statement

"Urban millennials need to discover new restaurants that match their taste preferences without wasting money on bad meals because they love trying new food but don't trust advertising and feel frustrated when they pick a bad restaurant."

Solution that followed: User reviews, ratings, photo menus, personalized recommendations - helping users make informed decisions!

3. 📚 BYJU'S Problem Statement

"Students preparing for competitive exams need engaging and personalized learning that adapts to their pace because traditional coaching classes are expensive, time-consuming, and teach at a fixed pace that doesn't suit everyone's learning style."

Solution that followed: Video lessons, adaptive testing, learn-at-your-own-pace, visual animations - making learning fun and flexible!

✅ Good vs ❌ Bad Problem Statements

❌ Too Vague:

"Users need a better app."

Problem: What does "better" mean? Who are the users? Why?

✅ Specific:

"Small business owners need a simple invoicing tool because they waste 3 hours daily on manual billing."

❌ Has Solution Already:

"Users need a chatbot to solve their problems."

Problem: You're deciding the solution (chatbot) before exploring alternatives!

✅ Focus on Need:

"Customer service agents need faster access to order information because delayed responses frustrate customers."

❌ No Insight:

"Customers need better support."

Problem: Why? What makes it "bad" now? What did empathy reveal?

✅ Shows Why:

"First-time users need onboarding guidance because they abandon the app after one use when they can't figure out basic features."

🎨 "How Might We" Questions

Another powerful way to define problems is using "How Might We" (HMW) questions. They open up possibilities without limiting solutions.

Why "How Might We" is Magic:

"How" suggests we don't know the answer yet (open to ideas)
"Might" says it's possible (optimistic, not guaranteed)
"We" means we'll solve it together (collaborative)

Examples from Indian Companies:

🏨 OYO Rooms:
❌ "We need to build budget hotels."
✅ "How might we make budget hotel stays predictable and trustworthy for young travelers?"

📦 Delhivery:
❌ "We need faster delivery trucks."
✅ "How might we ensure packages reach customers on time despite India's traffic and address challenges?"

💼 Naukri.com:
❌ "We need a job posting website."
✅ "How might we connect job seekers with relevant opportunities faster while helping companies find the right talent?"

🎯 Interactive: Build Your Problem Statement!

Let's Practice! Fill in the blanks:

1. Who is your user? (Be specific!) 2. What do they need? (Focus on the outcome, not solution!) 3. Why? (Your empathy insight!)

💡 Pro Tip: Your first problem statement is rarely perfect! Write it, discuss with your team, refine it. The goal is clarity, not perfection on first try!

🎯 Module 3: Define - Finding the Real Problem