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Lean LaunchPad

2013 April-June

Iain Verigin

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Course Introduction

• Objectives• Intro & Background• A Story -- “The Course in a Nutshell”• How the class works

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Who Am I? (Iain)• Teaching “Customer Development” since ’08

– 3 Lean LaunchPads e@UBC.

• 2 Startup Companies– Home Run PMC-Sierra– Double Packet Engines

• Many “Start-up” Products/Lines– Lotsa hits and many more misses.

• Experience: Product Strategy, Business Development, Product Marketing, Engineering, “Health Issues”

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Who Are You?• Professors • PhDs• Alumni

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“Themes”

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Steve Blank’s “Customer Development” 2006

• Problem: Startups fail from lack of customers– Not lack of product

• Solution: Develop Customers and Products together

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Company

Building

Customer Development

CustomerDiscovery

Customer Development is as important as Product Development

Concept/Bus. Plan

Product Dev.

Alpha/Beta Test

Launch/1st Ship

Product Development

CustomerValidation

Customer

Creation

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Lean Startup – Eric Ries• What’s A Startup

– “A human institution designed to create a new product or service under conditions of extreme uncertainty” pg 27

• Quality– “If we do not know who the customer is, we

do not know what quality is.” pg 107

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Steve Blank “2012”

“A Startup is a temporary organization in search of a scaleable, repeatable, and profitable business

model”

Page xvii, Startup Owners Manual

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Search vs. Execution

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This Course is All About

“The Search”

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Objectives

• Learn how to organize & execute sales, marketing, and business development when bringing a new product to market(while searching)

• Learn relevant “People Skills”– Listening, Presenting, Mindset and Burnout – Entrepreneurship is all about people

• & have fun on the way

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What are we really gonna do?

1. Learn some “search” process & theory

2. Experience it directly by“Getting Out of The Building”

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Why Customer Dev?

• It’s what I know.

– The “book/story “4 Steps to Epiphany” by Steve Blank is one of the few that is very close to my personal experience.

:aside:

You Customers

Process Scorecard

The Course in a Nutshell

Purpose

16Or … “You Are Here”

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Your Purpose

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To Create a CustomerDrucker says …

“There is only one valid definition of business purpose: …”

Page 20 “The Essential Drucker”

Aside

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What is Marketing?• Drucker says --

• There will always, one can assume, be the need for some selling. But the aim of marketing is to make selling superflous.

The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.

• Reference: pages 20 & 21 in “Essential Drucker”.

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A Product That Sells Itself

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The Scorecard

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Technology Ventures: From Idea to OpportunityChapter 7: Figure 7.3

Resources Financial Physical Intellectual

Deal Reward, Risks Incentives Ownership Harvest

People The Team Capabilities Attitude Reputation

Opportunity Customers Strategy Business Model

The Business

Plan

The Biz Plan

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A Better Way to View It

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The Business Model Canvas

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Apple Canvas

:example:

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Keep Track

Week n

Week 1

Week 2

test

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:Score Card: ( Hypothesis Summary)

Guess Guess Guess Guess Guess

GuessGuess

Guess Guess

Biz Model Canvas Links• http://www.businessmodelgeneration.com/• http://www.alexosterwalder.com/• http://www.businessmodelalchemist.com/tools

• Customer Development & Biz Model Canvas Combined• http://steveblank.com/2010/10/25/entrepreneurship-as-a-scienc

e-–-the-business-modelcustomer-development-stack/• http://www.businessmodelalchemist.com/2010/08/combining-bu

siness-model-prototyping-customer-development-and-social-entrepreneurship.html

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:More:

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Customers?

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Technology Adoption Life Cycle

Chasm

EarlyMarket

Bowling Alley

Tornado

Main Street

Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”

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Underlying Drivers in Growth Markets

Techies:Just try it!

Pragmatists:Stick with the herd!

Conservatives:Stick with what’s proven!

Skeptics:Just say No!

Visionaries:Get ahead of the herd!

Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”

“Technology Adoption Strategies”

People

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New Market “Chasm”

Chasm

EarlyMarket

Bowling Alley

Tornado

Main Street

Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”

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? Instant Success ?

In 4th year after launch.

( ie 6 years )

This is as fast as it gets.

NB. Apple's fiscal year ends in September. This means that Q1 includes the holiday season, which accounts for jumps in the data. Fiscal Q1 is Oct - Dec of previous year. So Q1 of 2008 is Oct - Dec of 2007, Q2 of 2008 is Jan - Mar of 2008 and so on.

http://en.wikipedia.org/wiki/File:Ipod_sales_per_quarter.svg

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The Process

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Study/Plan and Act• Market

Analysis

• Market Pursuit

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It’s The Scientific Process!

• Hypothesis• Develop Test• Observe• Analyze Results

• Re-jig Hypothesis• Do it again

( many times … Quickly )

• Apply to Customers

• Product / Market Fit is what you are looking for.• Is not obvious

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Six steps to Acting as an entrepreneur

Chapter 2: Figure 2.1

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iPod Timeline

Cycling, Cycling, and more Cycling

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More Process

• Customer Development• www.steveblank.com

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Search vs. Execution

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Execution Like This

Bill Buxton, “Sketching User Experience”

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Search Looks Like This

Bill Buxton, “Sketching User Experience”

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7 Steps (minimum)

http://blog.startupcompass.co/what-the-fortune-1000-can-learn-from-the-star

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You

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Model – Knowledge Funnel“What Do You Know”

Roger Martin’s Knowledge Funnel Mystery Heuristic Algorithm

! Very Useful for our class !

You start in the Mystery Zone( the guesses )

Success is getting it to “Heuristic zone”(what are the “rules-of-thumb”

Grand Slam is getting it to the “Algorithm” zone

Source: Design of Business, Roger Martin

VousEtesici

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Summary

You Customers

Process Scorecard

Mash Up

“Chasm Model”

“Business Model Canvas”

“Knowledge Funnel”

“Customer Development”

Mash Up

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That’s The Story

• So ….

What Are We Gonna Do?

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What Are We Gonna Do?• In Class

– 8 * “Iain” Presentations• Process, Theory, Personal Skills

– 4 * “You” Project Update Presentations• TAM/SAM, Canvas, Experiments, #Calls

• In Between Classes– “You” Get Out of the Building– “You” Blog Your Progress– “Us” monitor & comment on blogs

How the Class Works

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Course Blog

• http://llpgenomics2014q1.wordpress.com/

“Being a Novice Is

Way Overrated”

52http://sethgodin.typepad.com/seths_blog/2010/09/the-myth-of-preparation.html

Seth Godin “Winners”live here

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END

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Models / Frameworks• Primary

– Customer Development Model – Steve Blank• Supporting

– Crossing the Chasm – Geoffrey Moore– Knowledge Funnel & Reliability Bias – Roger L. Martin– Innovators Dilemma/Solution – Clayton Christensen– Lean Startup – Eric Ries– Design Driven Innovation – Roberto Verganti– Positioning – Ries & Trout– Solution Selling, CustomerCentric Selling – Bosworth– ProActive Selling, William “Skip” Miller– Strategic Selling – Miller Heiman– Mindset – Carol Dweck– Made 2 Stick - MarComm - Chip & Dan Heath– Personal Behaviour – Marshall Goldsmith

How the Class Works

Assumptions• That most people have tons of

“Execution Experience”

and very little “Search Experience”

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✖ ✔

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Example

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Break