Commercial business prototypingGreger Viken TeigreFeedback/thoughts to:Twitter: @gregertEmail: greger@teigre.com

OBSERVATION IEstablished companies have a tendency to ”innovate” on the current trajectory and leave break-throughs to start-ups

OBSERVATION IIThe processes and organization established to scale and optimize current business directly inhibit business outside current trajectory

Current trajectory: Product and technology focusBECAUSE:MarketFocus”...there is a market”PRODUCTFocus”...that’s what we do”TechnologyFocus”...that’s what we are best at”ExperimentalFocus”...we don’t know it all”

Main risksMarketFocusedCreate the right solutionPRODUCTFocusedPortfolio managementTechnologyFocusedFind a problem worth $$$ExperimentalFocusedNot killing it early enough

Both problem and solution must be right!PROBLEMProject status:HealthyNeeds actionCriticalUnknownKnownKnownProject AProject BProject CProject EProject FSOLUTIONUNCERTAINTYUnknownProject HProject G?UNCERTAINTY

FUNDAMENTAL PROBLEM”Only product innovation will likely be successful using existing business model, organization, and processes”

SOLUTION”Experiment systematically across the value chain using clear business metrics”

Commercial Business Prototyping: What?A small team that works tightly with engineering, sales, partners, and potential customersA catalyst and overlay team, not an indenpendent teamA method to test out new high uncertainty concepts/business cases at lowest possible costFocus on developing prototypes and quickly validating assumptions/ideas in the market”The agility of a start-up, the power of an incumbent”A product transferred to the mainstream organization gets a flying start

How?Develop customers and product in parallelSolve a market problem, not an organizational problem”Start fast, kill fast”To quickly scale globally, transfer to the mainstream organization must be a part of the planningIterate quickly, but use stage-gated decisions with pre-defined criteria to force go/no-go decisionsIdentify relevant business metrics and measure

Commercial, stage-gated business prototyping Problem definition Business model Key success criteria Product definition Full business model Market validation Testing of success criteria Initial prototype Minimum feature set Validation: Customer Engineering Go2market Product management Engineering Sales Support (pre/post) ChannelsTransferValidationConceptIdeaGo/no-go: Market potential ”Fit” FeasibilityGo/no-go: Market reception Feasibility Cost/revenueGo/no-go: Total business case Resource requirementsBPG resources”Ad-hoc” resourcesResource commitment for validationResource commitmentfor transfer

Problem definition

Business model

Key success criteria

Product definition

Full business model

Market validation

Testing of success criteria

Initial prototype

Minimum feature set

Validation:

Customer

Engineering

Go2market

Product management

Engineering

Sales

Support (pre/post)

Channels

Market potential

”Fit”

Feasibility

Market reception

Feasibility

Cost/revenue

Total business case

Resource requirements