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Lean Startup

Lean Startup. Minder Chen, Ph.D. Professor of MIS Martin V. Smith School of Business and Economics California State University Channel Islands Minder.chen@csuci.edu. The Startup Owner’s Manual. Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM.

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Lean Startup

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  1. Lean Startup Minder Chen, Ph.D. Professor of MIS Martin V. Smith School of Business and Economics California State University Channel Islands Minder.chen@csuci.edu

  2. The Startup Owner’s Manual Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM • A startup is a temporary organization designed to search for a repeatable and scalable business model (under extreme uncertainty). - Steve Blank, The Startup Owner’s Manual

  3. Resources • http://theleanstartup.com/ • http://wiki.mbalib.com/zh-tw/精益创业 • http://en.wikipedia.org/wiki/Lean_startup • http://steveblank.com/ • http://steveblank.com/2012/11/27/open-source-entrepreneurship/ • http://www.slideshare.net/sblank/lean-launchpad-educators-handbook-sept-2013 • Video: Steve Blank on entrepreneurship 1, 2, 3, 4 and 5 • Video: Steve Blank, the start-up owners manual • Slides: Steve Blank, the nine deadly sins of start-ups • Paper: Steve Blank, the nine deadly sins of start-ups • http://theleanstartup.com/ • Video: Lean Start-up (Eric Ries) • Slides: Principles of the Lean Start-up (Eric Ries) • Paper: Lean Start-up Methodology (Eric Ries)

  4. 10 Top Ten Mistakes of Entrepreneurs Guy Kawasaki, The Top 10 Mistakes of Entrepreneurs https://www.youtube.com/watch?v=HHjgK6p4nrw • Multiplying big numbers by 1percent • Scaling too soon • Partnering • Pitching instead of prototyping • Using too many slides and too small a font • Doing things serially • Believing 51% = control • Believing patents =defensibility • Hiring in your own image • Befriending your VCs & Thinking VCs can add value

  5. Source: http://businessmodelgeneration.com/canvas Video

  6. Osterwalder’s Business Model - Insight value proposition key activities customer relationships key partners customer segments cost structure revenue streams key resources (c)2010 K+S Ranch Consulting Inc. www.steveblank.com channels images by JAM

  7. What How Who Cash Flow Source: Alexander Osterwalder & Yves Pigneur, Business Model Generation (Preview version), 2009.

  8. The Use of the Business Model Canvas Your Business Model • Describe • Discuss • Design • Challenge • Improve • Innovate • Invent • Pivot • Choose

  9. Reverse Engineering Facebook’s Business Model with Ballpark Figures http://www.businessmodelalchemist.com/

  10. Questioning Business Model Components

  11. A Starting Point of Innovation A customer friction is a (re)discovered of relevant and often unmet needs in a recognizable situation from a target group. • Adapted form http://www.innovationexcellence.com/blog/2011/07/08/solve-customer-frictions/

  12. Customer Value Canvas http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf http://www.franciscopalao.com/english/value-proposition-canvas-get-to-know-your-customers-and-improve-your-value-proposition/

  13. Lean Canvas

  14. Key Metrics Diffusion / Spreading - active users - number of cities/countries in which events have been created so far Depth of customer relations - created events - average amount of received ratings Monetization - standard advertising metrics - percentage / total number of premium users

  15. Validate Your Business Model No startup business plan survived first contact with customers. “Get out of the building approach” – It is not a business plan. Most startups lack a structured process for testing their business model hypotheses.

  16. TAM http://aiti.mit.edu/media/programs/india-bms-summer-2013/materials/step_4_calculate_the_tam_---trepreneurship_101.pdf

  17. Marketing Sizing: TAM, SAM, and TM http://en.wikipedia.org/wiki/Total_addressable_market Total Addressable/Available Market

  18. 太肯運動科技 【店家資料】太肯運動科技 官網 https://www.titan-tech.com.tw/創業資金 初期投入150萬元(為開發產品，2012年投入300萬元、2013年再投入600萬元)去年營收 1800萬元(獲利再投入研發、行銷，年度盈餘剩50萬元)

  19. 太肯的機能運動襪 許景泰 (link) • 年賣1800萬 運動襪 跑出商機 • https://www.titan-tech.com.tw/static/aboutus • 擁有亞洲頂尖研發團隊之人員共同開發 • 臺灣師範大學 運動科學研究所 • 國際生物力學學會 • 台灣運動科技發展協會 Source: http://www.appledaily.com.tw/appledaily/article/finance/20140324/35720083/

  20. Biomechanics生物力 https://www.titan-tech.com.tw/truestory/research3 Video: https://www.youtube.com/watch?v=ndEnngIOxCI 「就是一種希望“活用生物力學，創新運動科技”的執著，襪子是腳與鞋的唯一介面，全世界那麼多的製鞋大廠不惜耗費鉅資研發鞋類，但卻很少有人重視襪子！」-相子元教授

  21. 他山之石可以攻錯 Source: https://www.titan-tech.com.tw/truestory/research3 Video: https://www.youtube.com/watch?v=ndEnngIOxCI 為了研發出最適合國人走路、運動穿的專業襪子，他不惜在短短不到三年的時間，飛往世界各國，砸下台幣20多萬，買了將近300雙的襪子，還不包括旅費在內！ 「所有能買的"機能性"襪子，我幾乎都買了…..最貴的，一雙就要2000多塊台幣…」相子元教授收藏的300雙襪子，遍佈五大洲，除了日本、韓國、美國、加拿大、紐西蘭、澳洲和歐洲各國，包括德國、擁有最好的織襪機台的義大利等，甚至遠到南非，他也去了一趟。

  22. Source:Link

  23. Pressure https://www.youtube.com/watch?v=dldpSlkPLew https://www.titan-tech.com.tw/sport_socks/low_arch_pro_basketball_socks

  24. Learning and Assumptions Testing Big Company Start-up

  25. Hypotheses Testing and Insight Business Model Hypotheses Facts

  26. Waterfall / Product ManagementExecution on Two “Knowns” More startups fail from a lack of customers than from a failure of product development Requirements Product Features: known Design Implementation Verification Customer Problem: known Maintenance Source: Eric Rieshttp://startuplessonslearned.blogspot.com

  27. The Customer Development Process More startups fail from a lack of customers than from a failure of product development Try many times before you get it right. It is OK to fail so plan to learn from it. Only move to the next stage when you learn enough and reach the “escape velocity” http://www.ctinnovations.com/images/resources/Startup%20Owners%20Manual%20-%20BlankDorf.pdf

  28. BioIQ.Com Case Study

  29. The Lean Start-Up Steve Blank, "Why The Lean Start-up Change Everything," HBR, May 2013. (link)

  30. What Is Pivot? • Pivot: A change to business model component based on customer feedbacks. A pivot is not a failure. • Pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, engine of growth, etc. • Eric Ries, The Lean Startup, 2013. • Pivots are vision driven.

  31. MVP In product development, the Minimum Viable Product (MVP) is a strategy used for fast and quantitative market testing of a product or product features. It is an iterative process of idea generation, prototyping, presentation, data collection, analysis and learning.

  32. An MVP Example Source: http://michaelrwolfe.com/2013/10/19/why-is-dropbox-more-popular-than-other-programs-with-similar-functionality/ Why is Dropbox more popular than other programs with similar functionality? • Well, let’s take a step back and think about the sync problem and what the ideal solution for it would do: • There would be a folder. • You’d put your stuff in it. • It would sync.

  33. Source: http://startitup.co/guides/294/becoming-a-lean-startup-guru

  34. http://upscalability.com/lean-startup/

  35. http://upscalability.com/

  36. http://upscalability.com/

  37. Startup vs. Large Company http://steveblank.com/2012/03/05/search-versus-execute/

  38. Lessons Learning http://steveblank.com/2012/03/05/search-versus-execute/ The search for the business model is the front end of the startup process The goal is to find a repeatable/scalable model, and then execute Customer and Agile Development are the processes to search and build the model Execution requires operating plans and financial forecasts Product management is the process for executing the model This is true in the smallest startup or largest company

  39. From Startup to Large Company Sustaining Sustaining Innovation Innovate or Evaporate Goal is to solve for: unknown customer and unknown features Build Search Execute Scalable Startup Transition /Buyout Large Company • Existing Market / Known customer • Known product feature needs Disruptive Innovation • New Market • New tech, customers, channels • Exit Criteria • Business model found • Total Available Market > $500m • Can grow to >$100m/year • Can be Venture capital funded

  40. The Lean Startup Method • Entrepreneurs are everywhere. • Entrepreneurship is management. • Validated learning. • Build-Measure-Learn. • Innovation accounting. • Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, 2011.

  41. Lean Startup

  42. http://thumbnails.visually.netdna-cdn.com/the-lean-startup_50291668aa9bb.pnghttp://thumbnails.visually.netdna-cdn.com/the-lean-startup_50291668aa9bb.png

  43. SCRUM Process Source: https://www.youtube.com/watch?v=WxiuE-1ujCM

  44. Lean Startup = Customer Development + Agile Method

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