the Learning StartupFrom Business_Idea to Company_Creationbuilding_blocks process
What and WhoTime to innovate ● At the convergence of the most recent developments on entrepreneurship such as the Lean Start-up concept, the Business Model framework and the Customer Development framework, the Learning Startup is an organisation running explicit learning processes to convert a Business Idea into a real business.Put your (money, time, resources) where your mouth is ● I created the Learning Startup project to experiment and learn around the Learning Startup concept, starting from the initial Business Idea of an online, freemium platform to support startups in their learning process of converting a business idea into a real business.
Inspiring Authors● This course was inspired by the work of Steve Blank, Eric Ries and Alex Osterwalder ● Steve Blank is a retired serial entrepreneur with over 30 years of experience in high technology companies and management. He is a Consulting Professor at Stanford in the Graduate School of Engineering STVP Program and author of “Four Steps to the Epiphany” http://steveblank.com/ ● Eric Ries is the creator of the Lean Startup methodology and the author of the entrepreneurship blog “Startup Lessons Learned” http://www.startuplessonslearned.com/ ● Alex Osterwalder is an author, speaker and workshop facilitator on the topic of business model innovation. He is the author of “Business Model Generation” http://www.businessmodelgeneration.com/
BibliographyBooks ● Steve Blank – Four Steps to the Epiphany ● Alex Osterwalder – Business Model GenerationBlogs ● Steve Blank – Steve Blank – NOTE: start from “Customer Development Manifesto” tag ● Alex Osterwalder – Business Model Alchemist ● Eric Ries – Startup Lessons LearnedMeta resources ● Steve Blank blog – Tools and Blogs for Entrepreneurs ● Andrew Chen blog – List of Essays ● Tom Eisenmann blog – Readings on Launching Tech Ventures ● Eric Ries blog – Recommended Reading ● Startup Lessons Learned – conference website sllconf.com ● Learning Startup blog – ChannelsOther Books ● Brant Cooper & Patrick Vlaskovits – The Entrepreneur’s Guide to Customer Development ● Jason Fried & David Heinemeier Hansson – Re-Work ● Eric Ries – The Lean Startup Book (Sep 2011)NOTE to find the online resources just google these terms
BiographyLeonardo Zangrando has a background in Mechanical Engineering and holds an MBA from IESEBusiness School. He has been consulting on sales effectiveness in the pharma sector for the past 10+years. Since 2007 he reoriented his activity towards education and training.On a parallel track, he has been interested in business startups since the mid 90s and has worked onseveral projects in the initial transition from business idea to startup, with particular focus onbootstrapping (self-financing startups.) He is currently helping a number of startups in the transitionprocess to a running business.Leonardo Zangrando key theme is resource-efficiency, in terms of increasing efficiency of processes,reducing waste of resources, and expressing full potential. He is fascinated by the evolutionary processof a startup, which transforms a business idea into a company and he is very keen on increasingentrepreneurs success rate by improving the entrepreneurial process efficiency.He advocates the convergence of the most recent developments on entrepreneurship such as the LeanStartup concept, the Business Model framework and the Customer Development framework into theLearning Startup, an organisation running explicit learning processes to convert a business idea into areal business.He created the Learning Startup project to experiment and learn around the Learning Startup concept,starting from the initial Business Idea of an online, freemium platform to support startups in theirlearning process to convert a business idea into a real business.
the Learning StartupFrom Business_Idea to Company_Creationbuilding_blocks process
A working definition Company An on-going organisation executing a plan trough systems and procedures
This section based on the work of Steve Blank What is a Business Idea?
Business Market Type Idea ● Disruptive Innovation → create market Buyer value generated (willingness to pay) ● Sustaining Innovation Costs incurred → get market share ● Compete on – Cost Leadership – Differentiation Industry Successful Successful Competitor – Specialization average differentiated low-cost with dualcompetitor competitor competitor advantage
Business Industry Risk Idea Med Dev / Health Care Life Science / Biotech Technology Risk Personalized Medicine Cleantech Semiconductors Customer Consumer Electronics AND Game Software Technology Risk Communication Software Electronic Design Automation Communication Hardware Enterprise Hardware Customer Enterprise Software Risk Web 2.0
Business Size the Market Idea ● Total Available Market – How big is the universe Startup ● Served Available Market Target – How many can I reach with Market my sales channel Served Available ● Startup Target Market Market – who will be my most likely buyers TotalAvailable Market
Business STARTUP Company IdeaTo qualify for becoming A temporary An on-goingStartup, a Business Idea organisation organisation must have a Market. to transform executing a planActivities will depend on Industry Risk and a Business Idea trough systems Type of Market. into a Company and procedures
Lets find a way to describehow a Business works● What is a Business about?● How does it do it?
Q. What is a Business about? A. Reach Customers and Deliver Value to them
CUSTOMERS / CUSTOMER SEGMENTSfrom “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl which customers and users are you serving? which jobs do they really want to get done?
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl do for them? do they care? what are you offering them? what does it VALUE PROPOSITION
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl CHANNELS through which interaction points? how does each customer segment want to be reached?
DEMAND CREATION / CUSTOMER RELATIONSHIPSfrom “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
REVENUE STREAMSfrom “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl what are customers really willing to pay for? how? are you generating transactional or recurring revenues?
Q. How does it do it? A. Using Key Resources to perform Key Activities(or have someone else do it)
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl which assets are essential? KEY RESOURCES which resources underpin your business model?
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl KEY ACTIVITIES business model? what is crucial? which activities do you need to perform well in your
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl KEY PARTNERS who do you need to rely on? which partners and suppliers leverage your model?
from “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl what is the resulting cost structure? COST STRUCTURE which key elements drive your costs?
key value demand creation / activities proposition customer relationships key customers / partners segmentsfrom “Business Model Generation” by Alex Osterwalderimages by JAM Visual Thinking - www.jam-site.nl cost revenue structure key streams resources channels
The Business Model describes the rationaleof how an organisation... Creates Value Delivers Value Captures Value
What is a Company then? Company KP KA VP DC CU KR CH An on-going CS RS organisation executing a + Business Model (through plans, EXECUTION systems, procedures)
What does a strtup do to transform a Business Idea into a Company?
Sketch out your Business Model building building block block building block building building block block building block building blockbuilding building block block
But realise its just a set of Hypotheses Hyp Hyp building building block block Hyp building Hyp Hyp block building building block block Hyp building block Hy p building block Hyp Hypbuilding building block block
STARTUP Company● Test and refine the hypotheses until the entire Business Model is TESTED ● Make sure the Business Model is PROFITABLE ● Make sure the Business Model is REPEATABLE ● Make sure the Business Model is SCALABLE (not applicable to craftsmen and one-off projects)
STARTUP Company A temporary organisation searching for atested, repeatable, and scalable Business Model
STARTUP Transition Company A temporary Building An on-going organisation the Systems organisation searching for a which implement executing atested, repeatable, the Business Model Business Model and scalable (so far we were (through plans, Business Model in design mode) systems, procedures) SEARCH BUILD GROW
KP KA VP DC CU STARTUP Transition Company Business = = = Idea KR CH SEARCH BUILD GROW CS RS Business Modeling Product Alpha/Beta Launch / Concept Devel. Test 1st Shipm. Product Development Customer Customer Customer Company Discovery Validation Creation Building Customer Development Systems Development
More Startups fail from a Lack of Customers than from a failure of Product Development Steve Blank Retired Entrepreneur Venture Capital advisorStanford Professor of Entrepreneurship