Successfully reported this slideshow.

More Related Content

Related Books

Free with a 14 day trial from Scribd

See all

Related Audiobooks

Free with a 14 day trial from Scribd

See all

Workshop 2 new business opportunities and customer's discovery

  1. 1. New Business Opportunities and Customer’s Discovery May 2013
  2. 2. Objectives •  Understand the origin of new business opportunities: the problems and needs they address. •  Understand the importance of exploring the needs and context of the customer. Acquire methodologies that allow you to do exploratory work.
  3. 3. Subjects to be Covered •  Social contract. •  Foundations of the Lean Startup method. •  What is a relevant problem? •  Intensity of the Problem. •  Customer’s pain and the limits of market research. •  Ethnography. •  Types of customers. •  Who experiences the problem. •  Customer’s Context. •  Empathy Map. •  Importance of the context. •  Storytelling. •  What to do with fieldwork results. •  Next steps.
  4. 4. Social Contract •  Listen, be opened to criticism and feedback from clients, facilitators and consultants. •  Cooperate with your peers (ask for advice and provide it, support the access to social networks, etc.). Give without expecting anything in return in the short run. •  Do the required work. •  Dont hide information, be open, transparent and trustworthy. •  Mistakes are possible, be willing to change your route if there is enough evidence to support that move. Participar en las comunidades de aprendizaje. •  Dare to ask for help (use the learning community). •  Dare to fail.
  5. 5. FOUNDATIONS OF THE WORK PROGRAM
  6. 6. 1 There are no facts inside the building, so get out..
  7. 7. 2 Use customer development paired with Lean development.
  8. 8. 3 Failure is a necessary part of the journey.
  9. 9. 4 Do iterations and pivot repetidely.
  10. 10. 5 No business plan survives the first contact with the customer.
  11. 11. 6 Design experiments and tests to validate your hipothesis.
  12. 12. 7 Define the market type: it changes everything.
  13. 13. 8 Startup metrics differ from those of existing companies.
  14. 14. 9 Decission making should be quick, speed matters
  15. 15. 10 First of all, it comes passion.
  16. 16. 11 The roles in a startup differ from a big company.
  17. 17. 12 Save all the capital until you really need it. Only then you can spend.
  18. 18. 13 Communicate and share the learnings.
  19. 19. The success of customer development starts with build-in support. 14
  20. 20. Startup Definition “A startup is an organization formed to search for a repeatable and scalable business model.” (Steve Blank) “A human institution designed to create something new products and services under conditions of extreme uncertainty”. (Eric Ries)
  21. 21. Validated Learning Is the proccess in which you learn by testing an initial idea and measure if it achieves the expected results (sales, customer satisfaction, positive evaluation of the concept, etc.).
  22. 22. Innovation Accountability Fuente: “Lean Analytics” (Croll & Yoskovitz)
  23. 23. Minimum Viable Product “Is that version of a new product which allows a team to collect the maximum amount of validated learning about the customers with the least effort”. (Eric Ries)
  24. 24. Be aware of the traps in which the entrepreneur could fell… The double trap of the interaction with the customer: not interacting with the customers early enough, and not approaching their needs. On the other side, is not in the role of the customer to innovate for you.
  25. 25. Be aware of the traps in which the entrepreneur could fell… Confirmation bias: see what you believe to be true, and just looking for evidence that supports your initial beliefs, disregarding opposite evidence.
  26. 26. Be aware of the traps in which the entrepreneur could fell… The trap of motivation (falling in love of your product): not being impartial, just supporting the fans.
  27. 27. Be aware of the traps in which the entrepreneur could fell… The trap of overconfidence: Chernobyl case.
  28. 28. Be aware of the traps in which the entrepreneur could fell… The trap of familiarity: doing things the same way over and over again.
  29. 29. How startups are born “The Lean Startup”, Eric Ries
  30. 30. Business Opportunities have Multiple Origins: Problem
  31. 31. Business Opportunities have Multiple Origins: Customer Segment
  32. 32. Business Opportunities have Multiple Origins: Product
  33. 33. Business Opportunities have Multiple Origins: Technology
  34. 34. "People don't want to buy a quarter-inch drill. They want a quarter-inch hole!”(Theodore Levitt). Its not about the product, its about the jobs they are trying to get done…
  35. 35. Outstanding companies build upon great problems •  The biggest problems are those the humanity should face and that affect millions of people: food provision, access to water, infectious diseases, climate change, clean energy, scarcity of natural resources, education, etc.
  36. 36. Ramez Naam “The Infiine Resourse: The power of ideas on a finite planet” Optimist approach on how to expand the limits and solve the problems that affect the world: food, water and energy.
  37. 37. John Doerr: The problem with sustainability A venture capital with a broad trajectory, who looks to address the problem of sustainability.
  38. 38. Shark Bite vs. Mosquito Bite Its better to solve a life or death problem to just one person, than to solve a very small problem that affects millions.
  39. 39. Vinod Khosla and thinking big The venture capitalist Vinod Khosla, founder of Khosla Ventures, states that “any big problem is a big opportunity. No p r o b l e m i s n o opportunity.”
  40. 40. Examples of companies that solve important problems •  Tesla Motors: oil dependancy. •  Zip Car: Savings and transport. •  Kickstarter: funding of creative projects. Kiva: access to microfinance. •  Angel List: Access to angel investment. •  Khan Academy: Learning from distant places. •  Airbnb: Lodging.
  41. 41. DESCRIPTION OF THE PROBLEM •  Activity 1 (15 min) 1.  Individually, identify and describe the problem you address or that you are trying to solve with your company or business idea. 2.  Then, comment in groups of 4 people. Provide feedback and listen to the advice given to you.
  42. 42. INTENSITY OF THE PROBLEM •  Activity Nº2 (15 min) 1.  Individually, answer the following questions: In which other ways are people solving this p r o b l e m ? W h a t alternative solutions are available? Are this a l te r n a t i v e s g o o d enough? What is the i n t e n s i t y o f t h i s problem? (Shark or mosquito bite) 2.  Then, each group should comment.
  43. 43. Not every need can make for a business •  A need can be like a tourniquet, a matter of life or death. Or it can be something irrelevant. •  It can affect many or few people.
  44. 44. Not all customers are the same – Cycle of the Adoption of New Technologies
  45. 45. WHO IS YOUR CUSTOMER Activity 3 (15 min) Individually, list who your main customers are and identify which ones are “early adopters”, those who experience their need or problem with a h i g h e r d e g r e e o f intensity. Comment.
  46. 46. Empathy Map
  47. 47. How to build it 1.  Define your customer –  Name –  Age –  Personality –  Other 2.  Build the Map
  48. 48. Cosmetofood Drinks for skin health and beauty based on molecules extracted from berries and grapes..
  49. 49. 1. Profile definition •  Name: Margarita M. •  Age: 35 •  Additional information: Mother of one child. Married. Works during the day. Worried about the well being of her family. Definición de Perfil Mujer 30 a 60 años Profesional Nivel socio-económico medio / medio alto Con familia Jornada laboral demandante
  50. 50. 2. Construction of the map A polluted planet Have little time for myself I have little time for me My family comes first I feel overwhelmed My husband doesnt support me Recommenda tions from my friends Advertiseme nts that get my attention You are getting older No time for exercising ón de mico medio / medio mandante Have time for herself My family well beign Feeling young Looking for bauty products at the supermarket. Growing old Not finding natural beauty products. Not having enough time for herself. Not any natural products available.
  51. 51. 5 2
  52. 52. EMPATHY MAP •  Activity 4 (20 min) 1.  Individually, complete the empathy map of your main customer segment. 2.  Visualize him or her as an individual person: what would her name be, how old she is, what is her activity and main features. 3.  If your customer is a company, think about the decision maker, the buyer or the user of the solution inside the company. 4.  Then present the canvas to the rest of the group. Comment and receive feedback.
  53. 53. Empathy Map
  54. 54. There are no customers without a pain to address The main cause for failure in new companies is the lack of a real problem faced by customers willing to pay.
  55. 55. Customer’s pains are the business hipothesis •  Each problem or need is a business hypothesis. The value proposition, to be consistent, should address this problems or needs. •  The only way to know if our assumptions are real, is to get out to the street and meet them.
  56. 56. How to explore and understand the customer’s needs?
  57. 57. "It's really hard to design products by focus groups. A lot of times, people don't know what they want until you show it to them.”. (Steve Jobs)
  58. 58. Traditional Market Research A big number of products and services that are launched every yeart fail, even if they invest heavily in market research, because they dont consider the customer`s perspective. The evidence indicates that entrepreneurs that understand customers needs have higher chances of success than those that start just with a technology or product.
  59. 59. People are not going to ask for something they don’t know it is tecnically feasible. Flaws in traditional market resarch 1 ...However, there might be problems without a current solution
  60. 60. “If  I  had  asked  people  what  they  wanted,  they  would   have  said  faster  horses.” Henry Ford
  61. 61. People usually fail at explaining their own behaviour. Flaws in traditional market research 2
  62. 62. At the supermarket
  63. 63. 3.  People tend to give answers that they think are expected or that would please the interviewer. 4.  People when interviewed dont remember emotions or feelings they experience while using products or services. 5.  The imagination and desires of people respond to their experience, so they accept the imperfections of the world as normal. 6.  Questions are usually skewed and reflect the assumptions of the researcher. Other flaws... *Fuente: "Taking and Expanded View of Costumers Needs" (María Flores, Charles Spinosa y Bobby Calder; Marketing Research, Winter 2000)
  64. 64. Some key issues… •  Avoid doing focus groups or surveys: –  The surveys assume you already know the questions to ask: one interview allows to explore subjects that go beyond your initial understanding. –  Even worse, the surveys assume that you already know the right answers. –  You cannot see a customer during an interview (non verbal language is important). –  The focus groups lead to wrong answers: group thinking.
  65. 65. “Carefully watch how people live, get an intuitive sense as to what they might want and then go with it. Don’t do market research.” Akio Morita
  66. 66. Ethnography
  67. 67. Movie: “What Women Want” (2145,  3845)    
  68. 68. Importance of the Context
  69. 69. Video BBC
  70. 70. African Mongoose and the rats in Hawaii: •  Importance of the context. •  In Hawaii there was a problem with a plague of rats. •  A predator was brought to the island, the African Mongoose. •  As a result: there were two plagues in Hawaii. Why this happened?
  71. 71. They never met!
  72. 72. Seaweed skin cream
  73. 73. Fast dry floor cleaning wax
  74. 74. Detergent with higher cleaning power
  75. 75. STORYTELLING Activity 5 (25 min) Individually, explain the problem that the customer faces: what happens before, during and after the problem arises. Present the problem as the script of a movie. U s e t h e fo r m a t o f a storyboard (look at the next slide). Then, choose two cases in each group and present the story in no more than 5 minutes to the rest of the group. Provide and receive feedback.
  76. 76. Example of a Storyboard
  77. 77. Guide for Observation Field Work •  Field work consists of looking for graphic evidence of the existence of situations of the need or problem to be addressed by the solution. •  Register the situation with videos or pictures. •  Answer the following questions: –  What are people doing? Who participates? Where this situation happens? –  How they do what they do? –  Why? What are their motivations? What objectives they try to achieve?
  78. 78. Why interviewing? •  To understand the motivations, thoughts and emotions of the costumer or user. When we understand their decisions, atittudes and the reasones they give for what they do, we can design based on their needs.
  79. 79. How to prepare an interview with customers – Steps to Follow 1.  Identify customer segments to interview. 2.  Create at least 3 hypothesis of problems that each segment faces. 3.  Define “how many” and “where”. This is, the number of the sample and the setting of the interview (we recommend at last 10 interviews). 4.  Define how you are going to get them. 5.  Make an interview guideline. 6.  Develop the intervies. 7.  Analyze the results.
  80. 80. How to prepare an interview with customers– Identifying segments and building hypothesis •  Look for “eary adopters” or “extreme users”, those customers that confront the problem or need with bigger intensity. •  Point out the three main problems that the customer faces (the hypothesis).
  81. 81. Not all customers are the same– Hierarchy of customers(S. Blank) They have a problem. They are aware of the problem. They are actively looking for a solution. They improvised a solution. They have budget to adquire a solution. “Early Adopters”!
  82. 82. How to prepare an interview with customers - How many do we interview? •  At least 10 interviews. •  Your not looking for statistical significance, instead you apply a saturation criteria: you interview until the results repeat each other.
  83. 83. How to prepare an interview with customers – Stablish contact •  Try to find people you don’t know or that are not your direct relatives or friends. •  Once you make the first interview, ask the person interviewed if he can introduce you to other persons that belong to the customer segment. •  You can also make calls or write emails to people you don´t know, introducing yourself, explaining the purpose of the interview and asking for time.
  84. 84. How to prepare an interview with customers – The guideline •  Brainstorm ideas of possible questions. •  Identify and order the questions in subjects. The order of the questions should help with the flow of the interview. •  Make sure you provide enough space for “Why?” and follow up questions. Also, have many questions like “Tell me about the last time that you _____”, and questions about their feelings regarding the problem.
  85. 85. How to interview •  One person at a time. •  Questions and objectives have to be prepared beforehand. •  Separate behavior from feedback on the product in the discussion (research actions, not just opinions, and get deep in the problem. •  Prepare to listen things that you may not like (it is not a sale). •  Ask for total honesty. •  Make open ended questions (avoid yes/ no questions). •  Listen, don’t talk too much (follow up on the subjects that may interest the customer; short and unskewed questions, don’t fill up silence). •  Get deeper (ask “why?” many times). •  Repeat to confirm (in any important subject, repeat what the person just said to confirm or allowing him to clarify the idea). Agradecer. •  Ask him to introduce you to more people for the next interviews. •  Take notes as soon as possible.
  86. 86. Development of the Interview Fuente:  Stanford  D.  School  h<p://dschool.stanford.edu/wp-­‐content/themes/dschool/method-­‐cards/interview-­‐for-­‐ empathy.pdf  
  87. 87. For an interview guideline •  Have an hipothesis about: –  The problem. –  How the costumer addresses the problem. –  The context. •  Make questions: –  Do you have this problem? –  How do you take care of this problem? Have you find any solution? Are you satisfied with them? –  When this problem happens? How does it develop?
  88. 88. ROLE PLAYING •  Activity 6 (20 min) 1.  Individually, elaborate the guideline for an interview, with questions that follow the hipothesis to explore f o r e a c h c u s t o m e r segment (remember the previous advice). 2.  Work in groups of 3 people, where each one is A, B or C. 3.  A should interview B (the customer). C observes the interview from outside. 4.  Then, C gives feedback and they change roles.
  89. 89. Next Steps •  Do activities of observation of the context were the customer faces the problem. •  Expected results: pictures or videos that show the existence of a problem or need. •  Do at least 10 interviews with customers. –  List problem hypothesis for each customer segment. –  Elaborate a guideline for the interview. –  Keep record of the interviews and presente results (the hypothesis were present, not present, or new problems emerge). •  For the next video pitch you should present: –  Problem hypothesis for each segment. –  Results with evidence of the observations and interviews (pictures, videos and quotes).
  90. 90. What could happen •  The problem is real and has a huge importance. •  The problem is not so important to the customer or it doesnt exist. •  The problem is seen in other customer segments. •  Other problems emerge that are bigger to the customer. You have to verify, not guess, if the customer problem is real.

×