Edmund Pendleton. Lead Instructor, NSF I-Corps Assistant Faculty Director, NSF I-Corps Director, DC I-Corps

Transcription

1 Edmund Pendleton Lead Instructor, NSF I-Corps Assistant Faculty Director, NSF I-Corps Director, DC I-Corps

2 Before we start

3

4 I-Corps Story

5 $7 Billion

6 How can we increase the economic impact of the research dollars invested every year?

7

8

9 NSF I-Corps Lean LaunchPad Course

10 Developed by entrepreneurs

11 Taught by entrepreneurs

12

13

14

15

16 I-Corps Nodes

17 DC Regional Node

18 National Regional

19 National Regional

20 What will you do?

21 Jump In

22 100 Interviews

23 But why?

24 Everyone has a plan

25 until he gets punched in the face.

26 Search for Product-Market Fit

27 Build a Business Model

28 Go No-Go

29 Startup Story

30 My startup set out to change an entire industry

31 1600s Night Caps

32 1700s Tri-corner Hats

33 1800s Top Hats

34 1900s Fedora Hats

35 1990s Hard Hats

36 More innovation in hats

37 We had a much better way

38

39 And these guys said so

40

41

42

43

44

45

46 What Happened?

47 10 years $20M later

48

49

50

51 Why are we here?

52 Our Goal

53 Improve Odds

54 Pick Winners

55 Pick Winners

56 Startup Statistics

57

58 Create More Winners

59 Shift the Curve

60 Reduce Risk Fewer Strikeouts

61 Reduce Risk Fewer Strikeouts More Base Hits and Home Runs!

62

63 What we Used to Believe What we Now Know

64 What we used to believe

65 Startups are smaller versions of large companies

66 What we now know

67 Startups are NOT smaller versions of large companies

68 Startups search Companies execute

69 No business plan survives first contact with customers

70 Tyson s Law

71

72 for startups

73 Planning comes before the plan

74 Business Models

75 Business Model Canvas Who are your Key Partners? Who are your key suppliers? 6 What are you getting from them and giving to them? 7 What Key Activities do you require? Manufacturing? Software development? Personal concierge service? Etc. 8 What customer problems are you helping to solve? What customer needs are you satisfying? 1 How will you get, keep, and grow customers? 4 3 Who are your most important customers? What are their archetypes? What job do they want you to get done for them? 2 What Key Resources do you require? Financial? Physical? Intellectual property? Human resources? What are key features of your product/service that match customer problems/needs? Through which channels (sales, distribution, support) do your customers want to be reached? What are most important costs inherent in your business model? What is mix of fixed and variable costs? 9 How will you make money? What is revenue model? What are pricing tactics? 5

76 Iterate and Pivot Who are your Key Partners? Who are your key suppliers? 6 What are you getting from them and giving to them? 7 What Key Activities do you require? Manufacturing? Software development? Personal concierge service? Etc. 8 What customer problems are you helping to solve? What customer needs are you satisfying? 1 How will you get, keep, and grow customers? 4 3 Who are your most important customers? What are their archetypes? What job do they want you to get done for them? 2 What Key Resources do you require? Financial? Physical? Intellectual property? Human resources? What are key features of your product/service that match customer problems/needs? Through which channels (sales, distribution, support) do your customers want to be reached? What are most important costs inherent in your business model? What is mix of fixed and variable costs? 9 How will you make money? What is revenue model? What are pricing tactics? 5

77 More startups fail from a lack of customers than from product / tech failure

78 More startups fail from a lack of customers than from product / tech failure

79 Founders run a Customer Development Team no sales, marketing or business development

80 Entrepreneurial education begins with the search for a Business Model

81 Putting search first is a radical change not just one more methodology or a fad

82 Get out of the building!

83

84 Business Models Customer Development

85 What s a company?

86 What s a company? A business organization that sells a product or service in exchange for revenue and profit.

87 What s a startup?

88 A temporary organization designed to search for a repeatable and scalable business model

92 Startup aims to become a company

93 How are companies organized?

94 How are companies organized? Companies are organized around Business Models

95 What s a Business Model?

96

97 or how a company makes money!

98 Customer Segments Who are your most important customers? What are their archetypes? What job do they want you to get done for them?

99 Customer Segments have Customer Types

100 Customer Types End User

101 Customer Types End User Influencer

102 Customer Types End User Influencer Recommender

103 Customer Types End User Influencer Recommender Decision Maker

104 Customer Types End User Influencer Recommender Decision Maker Payer

105 Customer Types End User Influencer Recommender Decision Maker Payer Saboteur

106 Value Propositions What customer problems are you helping to solve? What customer needs are you satisfying?

107 Business Model Canvas Channels Through which channels (sales, distribution, support) do your customers want to be reached?

108 Business Model Canvas Customer Relationships How will you get, keep, and grow customers?

109 Business Model Canvas Revenue Streams How will you make money? What is revenue model? What are pricing tactics?

110 Business Model Canvas Key Partners Who are your Key Partners? Who are your key suppliers? What are you getting from them and giving to them?

111 Business Model Canvas Key Activities What Key Activities do you require? Manufacturing? Software development? Personal concierge service? Etc.

112 Business Model Canvas Key Resources What Key Resources do you require? Financial? Physical? Intellectual property? Human resources?

113 Business Model Canvas Cost Structure What are most important costs inherent in your business model? What is mix of fixed and variable costs?

114 How do we build a Business Model?

115 9 Guesses Starting Point Guess Guess Guess Guess Guess Guess Guess Guess Guess

116 But realize these are Hypotheses

117 But realize these are Hypotheses Guesses!

118 How do we turn these into facts?

119 Customer Development

120 Search for Product-Market Fit Discover whom your customers are

121 Search for Business Model Validate customers with early sales

122 Sales, Sales, Sales Scale sales by creating demand

123 Startup to Company Build out organization and processes

124 I-Corps Focus

125 I-Corps Focus Customer Discovery

126 I-Corps Focus Search for Product-Market Fit

127 Customer Discovery in Four Steps

128 Step 1: State your Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

129 Step 2: Test the Problem

130 Step 2: Test the Problem Identify customer problems and needs

131 Step 2: Test the Problem Identify customer problems and needs Test hypotheses about CS and VPs

132 Step 2: Test the Problem Identify customer problems and needs Test hypotheses about CS and VPs iterate and pivot

133 In addition to Value Propositions

134 Also talk to Customers about these Boxes Where do you buy products today?

135 Also talk to Customers about these Boxes How do you find out about new products?

136 Also talk to Customers about these Boxes What would this be worth to you?

137 Also talk to Customers about these Boxes

138 Step 3: Test the Solution MVP

139 Step 3: Test the Solution MVP Test minimum viable product features

140 Step 3: Test the Solution MVP Test minimum viable product features Do they satisfy problems or needs?

141

142

143 Insights Drive Changes Audio Middleware Companies Problem Solving Refine and improve 3D audio algorithms Better Performance 3D immersive sound Higher gaming scores Personal Assistance and Self-service Small support staff, emphasize web support PC Gamers More realism PC Game Developers Reduced ear fatigue Intellectual Property Proprietary knowledge, brand, patents, trade secrets, Audio experts, software developers Pinpoint sounds Game Engine Companies Audio Middleware Companies Note changes from last iteration Audio & Software Engineers IP License Fee to UMD Software development tools SW License, Per Title, Per Seat for Plug-in

144 Step 4: Pivot or Proceed New Gues s New Gues s

145 Step 4: Pivot or Proceed Fact Fact

146 Step 4: Pivot or Proceed Product-Market Fit

147 Step 4: Pivot or Proceed Holy Grail!

148 Step 4: Pivot or Proceed

149 9 Guesses End Goal Fact Fact Fact Fact Fact Fact Fact Fact Fact

150 What Good about Ideas Steve?

151 What Good about Ideas Steve? He didn t talk to customers!

152 REMEMBER You are talking to customers to identify problems and needs

153 REMEMBER You are talking to customers to identify problems and needs you are not asking them to define your product!

154

155 Quick Summary

156 Start with the Business Model

157 Business Model Canvas

158 Step 1: State your Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

159 Step 2: Test the Problem Identify customer problems and needs

160 Iterate and Pivot What customer problems are you helping to solve? What customer needs are you satisfying? 1 How will you get, keep, and grow customers? 4 3 Who are your most important customers? What are their archetypes? What job do they want you to get done for them? 2 What are key features of your product/service that match customer problems/needs? Through which channels (sales, distribution, support) do your customers want to be reached?

161 Step 3: Test the Solution MVP Test minimum viable product features Do they satisfy problems or needs?

162 Iterate and Pivot What customer problems are you helping to solve? What customer needs are you satisfying? 1 How will you get, keep, and grow customers? 4 3 Who are your most important customers? What are their archetypes? What job do they want you to get done for them? 2 What are key features of your product/service that match customer problems/needs? Through which channels (sales, distribution, support) do your customers want to be reached?

163 Key Activities, Resources, Partners

164 Revenue & Costs

165 9 Guesses End Goal Fact Fact Fact Fact Fact Fact Fact Fact Fact

166

167 Initial Directions

168 Pick one Customer Segment

169 Dive Deep

170 Different Customer Segments often have Different Business Models

171

172 Customer Segment #1 Customer Segment #2 Customer Segment #3

173 Pick one Customer Segment Identify End User, Decision, Payer

174 Business to Business

175 End User = Steel Laborer

176 Decision Maker = Project Manager

177 Payer = Purchasing Director

178 Saboteur = Construction Surveyor

179 Business to Business typically have distinct End Users, Decision Makers, Payers, and others.

180 Business to Consumer may as well!

181 Business to Consumer

184 Pick one Customer Segment Identify End User, Decision, Payer List only Value Propositions you plan to test

185 Original Canvas

186 Revised Canvas

187

188 Customer Segments

189 Customer Segments Customer Sub-Segments

190 Customer Segments Customer Sub-Segments Customer Types

191 Customer Segments

192 Hospitals Primary Care Clinics

193 Hospitals Primary Care Clinics

194 Customer Sub-Segments

195 Hospitals

196

197 Hospitals Customer Sub-Segments University Teaching Hospitals Major (Non-University) Teaching Hospitals

198 Not Done

199 Customer Types

200 Find the people! University Teaching Hospitals End User

201 Find the people! University Teaching Hospitals End User Decision Maker

202 Find the people! University Teaching Hospitals End User Decision Maker Payer

203 Find the people! University Teaching Hospitals End User Decision Maker Payer Influencer

204 Find the people! University Teaching Hospitals End User Decision Maker Payer Influencer Recommender

205 Find the people! University Teaching Hospitals End User Decision Maker Payer Influencer Recommender Saboteur

206 University Teaching Hospitals Customer Types End User Decision Maker Payer Influencer Recommender Saboteur

207 Identify Archetypes to understand purchase decision

208 User Archetype Reads Attends Watches

209 Identify Archetypes for each Customer Segment

214 Why do we group into Customer Segments?

215 Different Customer Segments often have

216 Different Customer Segments often have Different Business Models

218

219

220

221 Customer Segments #1, #2, #3

222 But Remember

223 Different Customer Types also often have

224 Different Customer Types also often have Different Value Propositions

225