Lean start up primer

Lean start-up methodology primer

and MSc development workshop

AndyHirst

This session…

• Discover some new approaches to business start-up• Create some basic course concepts• Apply some techniques• And of course ……

Have fun!

Help yourself to tea, coffee and biscuits

The Innovator’s Dilemma“Jobs to be done” – Clayton Christensen

• Functional jobs - Task• Emotional jobs - Feelings• Social jobs - Relationships• Supporting jobs - Context

Warm-up Task: In groups of 2/3Identifythetop3“jobstobedone”forthenewMScinEntrepreneurship

What do we know about the start-up process?

Failure rates have been stubbornly high - 75%!• A business fails because it runs out of customers

Geoffrey Moore – Crossing the Chasm

Focus on product development not customer development

Big design doesn’t workIridium Motorola (1999)

$5 Billion flop

66 satellites – global coverage / 500k users

Business plans contain NO FACTS“..plans rarely survive first contact with the enemy” (Helmuth von Moltke)

“Everybody has a plan until they get punched in the mouth” (Mike Tyson)

Just a set of assumption and predictions

Start-ups are not able to make realistic forecasts of future growth

SO…..

Could hypothesis driven business development be the solution?

Steve Blank – “The path to the epiphany”

A mixture of customer development and iterative development techniques

Reduce Complexity and Risk!

Lean start up is all about iteration

Espresso coffee

What changed?

TASK: Discuss in groups of 2

The business model – definition

• Thebusinessmodelencouragestheentrepreneurto• conceptualizetheventureasaninterrelatedsetofstrategicgoals• seekcomplementaryrelationshipsamongelements,throughuniquecombinations;• developactivitysetsaroundalogicalframework• ensureconsistencybetweenelementsofstrategy,architecture,economics,growth,andexitintentions.

Need a common language

100

80

60

40

20

On the RiseA Google Trend analysis shows that the Business Model Canvas is trending upwards together with the Lean Startup.

2008 2009 2010 2011 2013 2014

Blue Ocean Strategy

Lean Startup

Disruptive Innovation

Business Model CanvasThe number 100 represents peak search interest

2524

The Business Model Canvas

designed by: Strategyzer AGThe makers of Business Model Generation and Strategyzer

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strategyzer.com

Revenue Streams

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

ChannelsKey Resources

TASK: Rapid Prototype

• Whoareourpotentialcustomers?

Customer/Users Architypes

• Aspects to consider • Demographics• Motivations• Role models /Influencers• Ambitions • Family wealth• ….

• Day in a life• User stories

Emergent strategyLean start-up

Similar methods that overlap with lean start-up philosophy• Design thinking• Rapid prototyping• Agile project management• Emergent strategy

• Iteration!

Can we change the way we business model/ design courses?

Visual Tools

Product-MarketFit

Gain Creators

Pain Relievers Pains

Gains

Products& Services

CustomerJob(s)

Value Proposition Customer Segment

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer

The Value Proposition Canvas

strategyzer.com

CustomerSegment

The Value Proposition Canvas

Customer (Segment) Profile:

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

Pains

Gains

CustomerJob(s)

10:00

ValueProposition

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

The Value Proposition Canvas

Gain Creators

Pain Relievers

Products& Services

Value (Proposition) Map:

10:00

Swap canvasAdd,Develop,Organise

The Start in Start-up

MVPA sellable product or service that has enough features to satisfy one customer segment

10:00TASK: In groups of 3, create an MSc in a box

Pitch your ideaIn30secondsexplainyourMScthinkaboutyourcustomersegment,productfeatures,pains,gainsandjobstobedone.

2nd Iteration

Lean start up is all about iteration

Make a change based on your feedback

3rd Iteration

Lean start up is all about iteration

Make a change based on your feedback

Look at the existing market

Blue Ocean Strategy – Kim and Mauborgne (2005)

Createproductsinuncontestedmarketsatlowcost

What’s different about Nintendo’s business model?