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    GNG4120_lecture4_W2017 Entrepreunership

    Published: July 18, 2018

    GNG4120_lecture4_W2017 Entrepreunership

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    GNG4120_lecture4_W2017 Entrepreunership

    • 1. Lecture 4:Start-up Basics Lecture 4: Start-up Basics Majed Jarrar
    • 2. Agenda Agenda •Evolution of Startups •Business Models Canvas •Activity: Reverse Engineering BMC •Customer Discovery and Validation
    • 3. How start-ups build products? How start-ups build products? •http://steveblank.com/2014/07/30/driving-corporate-innovation-design-thinking-customer-development/ Founders product vision Look for customers Build entire product Founders product vision Build MVP Iterate and pivot Customer needs Iterate and pivot Build MVP
    • 4. What is Design Thinking? What is Design Thinking? An approach to solving design problems by understanding users needs and developing insights to solve those problems What do we want?! When do we want it?! Design Thinking! After learning user needs!
    • 5. Slide96
    • 6. What is Empathizing? What is Empathizing?
    • 7. Assume the beginner’s mindset Assume the beginner’s mindset •Don’t judge •Question everything •Be truly curious •Find patterns •Listen, really. Why ?
    • 8. Business Model Basics Business Model Basics
    • 9. What is a start-up? What is a start-up?
    • 10. What is a business model? What is a business model? •A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value).
    • 11. Slide115 Who are you creating value for? Who are the customers you wish to reach and serve and who are the most important ones? Which problems or needs are you addressing? Why customers will love you? How do you deliver your product or service? Based on your customer segment what is your customer relation? What resources do I need for my business to function? What key activities does my business require so it can function? What suppliers and partners does my business need to function? How will your business make money? What kind of revenue system can you use? How do you set the pricing? Type of costs: fixed, variable, economies of scale Who? What? How much? How?
    • 12. Slide116
    • 13. Slide118
    • 14. Common Business Models Common Business Models
    • 15. Platform BMCs? Platform BMCs? •https://youtu.be/LGVijZLcQNY •https://youtu.be/gLi8yIdHYbI
    • 16. business models that get the customers to do the work! business models that get the customers to do the work!
    • 17. BMC Activity BMC Activity •Split in groups and work on generating a business model of an existing company of your choice. Examples: –Uber –Skype –Facebook –Skipthedishes
    • 18. Slide139 Lean launch pad by Steve blank
    • 19. Slide123 Customer Development Process Lean launch pad by Steve blank
    • 20. Slide124
    • 21. Learning outcomes from customer interviews Learning outcomes from customer interviews •How is your customer currently dealing with this task/problem? (Or, what solution/process are they using?) •What do they like about their current solution/process? •Is there some other solution/process they’ve tried in the past that was better or worse? •What do they wish they could do that currently isn’t possible or practical? •How would that make their lives better? •Who is involved with this solution/process? How long does it take? •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 22. Learning outcomes from customer interviews 2 Learning outcomes from customer interviews 2 •What is their state of mind when doing this task? How busy/hurried/stressed/bored/frustrated •What are they doing immediately before and after the current solution/process? •How much time or money would they be willing to invest in a solution that made their lives easier? •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 23. Example: Online grocery application Example: Online grocery application •Your hypothesis: busy households need a better way of making sure they don’t run out of things and don’t have to make a zillion trips to the market. You’ve found customers to talk to – now you need to understand how they feel/behave when it comes to grocery shopping. •“Tell me about how your household handles grocery shopping…”: Whether they describe a detailed or haphazard process, this is your competition. This is what you have to be substantially better than, in order to get customers to change their behavior. •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 24. Online grocery store app. Online grocery store app. •“How is that process working for you?”: –a customer may complain about running out of ingredients or paying lots at the corner store. If not, you may gently prompt them with triggers like “Do you generally have the ingredients you need to make dinner?” or “How much time do you spend shopping?” –Validation check: they might not care enough to change their current habits, even if they’re not 100% satisfied. •Have you tried other approaches, like online grocery delivery or keeping a list on your iPhone?” –Customers who have tried other approaches = a good sign that this is enough of a problem that they’re motivated to fix it. •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 25. Online grocery store app. Online grocery store app. •If you could improve anything about your grocery shopping routine, what would it be? –If customers don’t immediately have an idea, you could gently prompt with “spend less time, less money, have fresher/healthier foods on hand…?” This question is going to prompt people to jump to solutions (like “I want a cost comparison tool”), rather than articulating their problems, so you need to immediately follow up with: •If you had a cost comparison tool, how would that make your life easier? –You want to discover what’s at the root of this suggestion – is it more important that they pay the lowest prices, or do they want to cut down on trips to several different grocery stores, etc. –Validation check: if they really can’t articulate why this solution would make their lives better, it probably won’t. •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 26. Online grocery store app. Online grocery store app. •Who in your household buy groceries? These are the potential stakeholders of your solution. •What do you do immediately before you go grocery shopping? This is a great way to find ways to differentiate your product •What do you do immediately after you go grocery shopping? •How much money do you think that would save you per grocery run? •http://www.cindyalvarez.com/communication/customer-development-interviews-how-to-what-you-should-be-learning
    • 27. Tips for customer interviews Tips for customer interviews •Know your goals and plan your questions before leaving the building! •Do one-on-one interviews. •Listen, don’t pitch! •Be prepared for answers you don’t like •Write your notes from the meeting immediately •Focus on discovery. Don’t worry about features! •Never ask a yes and no question, always ask open ended ones. •Have behaviuor-focused interactions •Ask for intros to others (snowball marketing)
    • 28. Useful links Useful links •http://www.youtube.com/watch?v=2FumwkBMhLo •http://www.youtube.com/watch?v=QGXZP7uyoOs •http://www.slideshare.net/Alex.Osterwalder/what-is-a- business-model •http://www.slideshare.net/RemusToma86/business- models-14982050 •https://www.youtube.com/watch?v=EJz85Tr7ajE •http://www.youtube.com/watch?v=HhoducyStMw •http://www.youtube.com/watch?v=G8Rk0c3axtI
    • 29. Next Week Next Week •Assignment 3 •Product Deliverable B0
    • 30. Quiz Quiz Socrative.com GNG4120X5120