Customer Development 3: Introduction
Upcoming SlideShare
Loading in...5
×
 

Customer Development 3: Introduction

on

  • 5,985 views

 

Statistics

Views

Total Views
5,985
Views on SlideShare
5,075
Embed Views
910

Actions

Likes
6
Downloads
231
Comments
0

13 Embeds 910

http://venturehacks.com 837
http://dennydov.blogspot.com 40
http://lj-toys.com 15
http://dennydov.blogspot.ru 4
https://www.linkedin.com 3
http://www.slideshare.net 3
http://www.linkedin.com 2
http://dennydov.blogspot.com.es 1
http://whiteshark.ap01.aws.af.cm 1
http://static.slideshare.net 1
http://feeds.venturehacks.com 1
http://dennydov.blogspot.com.tr 1
https://translate.googleusercontent.com 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Customer Development 3: Introduction Customer Development 3: Introduction Presentation Transcript

  • Customer Development in the High Tech Enterprise MBA 295-F/EMBA 295-F Customer Development Steve Blank sblank@kandsranch.com 1
  • Class 3: Agenda Logistics/Questions  CASE: E-Ink  Product Development  Boyd & the OODA Loop  Customer Development  MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 2
  • If Startups Fail from a Lack of customers not Product Development Failure Then Why Do we have: process to manage product development  no process to manage customer development  MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 3 View slide
  • Product Development Model Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 4 View slide
  • What’s Wrong With This? Product Development Alpha/Beta Concept/ Product Launch/ Test Seed Round Dev. 1st Ship - Create Demand - Hire PR Agency - Create Marcom Marketing - Launch Event - Early Buzz Materials - “Branding” - Create Positioning MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 5
  • What’s Wrong With This? Product Development Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Demand - Hire PR Agency - Create Marcom Marketing - Launch Event - Early Buzz Materials - “Branding” - Create Positioning • Build Sales • Hire Sales VP Sales Organization • Hire 1st Sales Staff MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 6
  • What’s Wrong With This? Product Development Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship - Create Demand - Hire PR Agency - Create Marcom Marketing - Launch Event - Early Buzz Materials - “Branding” - Create Positioning • Build Sales • Hire Sales VP Sales Organization • Hire 1st Sales Staff Business • Do deals for FCS • Hire First Development Bus Dev MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 7
  • 10 Things I Hate About Product Development Where are the Customers? 1. The Focus on First Customer Ship 2. Emphasis on Execution vs. Learning & Discovery 3. No Customer-centric milestones 4. Product dev. to measure Sales 5. Product dev. to measure Marketing 6. Premature Scaling 7. Death Spiral 8. Three Types of Startups 9. Unrealistic Expectations 10. MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 8
  • Chasing The FCS Date Sales & Marketing costs are front loaded  focused on execution vs. learning & discovery  First Customer Ship becomes the goal  Execution & hiring predicated on business plan hypothesis  Heavy spending hit if product launch is wrong  Financial projections, assumes all startups are the same  = You don’t know if you’re wrong until you’re out of business/money MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 9
  • An Inexpensive Fix Focus on Customers and Markets from Day One How? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 10
  • Boyd’s OODA “Loop” Observe Orient Decide Act Implicit Implicit Guidance Guidance Unfolding & Control & Control Cultural Circumstances Traditions Genetic Analyses & Feed Heritage Action Decision Feed Feed Observations Forward Synthesis Forward Forward (Hypothesis) (Test) New Previous Information Outside Experience Unfolding Information Interaction With Unfolding Environment Interaction Feedback With Environment Feedback Orientation shapes observation, shapes decision, shapes action, and in turn is shaped by the feedback and other phenomena coming into our observing window. Competitive advantage comes from quickness over the entire “loop,” not just from the O-to-O-to-D-to-A sequence. MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 11
  • Build a Customer Development Process Product Development Concept/ Product Alpha/Beta Launch/ Seed Round Dev. Test 1st Ship Customer Development ? ? ? ? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 12
  • Customer Development is as important as Product Development Product Development Concept/ Product Alpha/Beta Launch/ Bus. Plan Dev. Test 1st Ship Customer Development Customer Company Customer Customer Discovery Building Validation Creation MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 13
  • Customer Development is as important as Product Development Product Development Concept/ Product Alpha/Beta Launch/ Bus. Plan Dev. Test 1st Ship Customer Development Customer Company Customer Customer Discovery Building Validation Creation MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 14
  • Customer Development Heuristics There are no facts inside your building, so get  outside Founders in front of customers  Find a Market for the Product as spec’d  I.e Develop for the Few, not the Many  Learning and Discovery versus linear execution  Earlyvangelists make your company  Market Types Matter  MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 15
  • Customer & Product Development Synchronization Product Development Concept/ Product Alpha/Beta Launch/ Bus. Plan Dev. Test 1st Ship Customer Development Customer Scale Customer Customer Discovery Company Validation Creation MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 16
  • Product Development Product Development Concept/ Product Alpha/Beta Launch/ Bus. Plan Dev. Test 1st Ship But really, how does this work? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 17
  • Customer Development: Big Ideas Parallel process to Product Development  Measurable Checkpoints for the entire company  Not tied to FCS, but to customer milestones  Iterative to represent reality  Executed by a small team including CEO  MBA295-F Customer Development in the High-Tech Enterprise Spring 2009 18