Entrepreneurial Management
Entrepreneurship 101
October 24 2012
Jon E Worren
About you
Idea?
Product?
Business?
Established practices not working
Share of
Voice
Share of
Mind
Share of
Market
The Emergence of New Practices
1911
Scientific
Mgmt
1948
Toyota
Production
System
2001
Agile
Develo
pment
2003
Lean
Thinki...
A set of principles and frameworks that helps
startups identify a sustainable business model
with the least amount of wast...
Application
Startup Phase
Entrepreneurial
Management
Traditional
Management
Growth Phase
Search
Business
Model?
Execution
PRINCIPLES
Entrepreneurial Management
Scientific Management
• Time & Work Studies
(measurement)
Toyota Production System
• Muda – Elimination
of waste
• Hansei - learning
• Kaizen – continuous
improvement
• Jidoka – se...
Agile Development
• Customer Collaboration
• Iteration (short time
frames)
Lean Thinking
• Generalization of TPS
• Increased focus on
“Value”
Customer Development
• New 1: De-risking a new venture by breaking up the
commercialization process and prioritize busines...
Lean Startup
• Lean Startup =
Customer Development
+ Agile development
• Strong build+ measure
focus
• Popularized approac...
PROCESS
Entrepreneurial Management
Process
Assumptions
Test problem
Assumptions
Measure
Evaluate
Step 0- Describe Idea
 What kind of problem do you solve for the
customer? Is this an important problem for these
custome...
Step 1 – Review Assumptions
• Is the customer problem you are solving validated
by a measurable fact?
• Are you able to id...
Step 2 –Test
• What key piece of information would validate
or invalidate the assumption?
• Where does that information re...
Step 4 & 5 – Measure & Evaluate
• Is the customer problem urgent?
• Is the problem pervasive?
• Will customers pay to have...
3 outcomes
Evaluate
Validate: Confirmed
value of MVP
Iterate: Change your
product features
Exit: Don’t spend
any more mone...
The Pivot
Easier when….
• You have invested little
to this point
• You are getting
absolutely no traction
Harder when…….
•...
THE 3 STAGES OF THE PROCESS
The quest for a Business Model
The 3 stages of the search process
Customer Problem
Product Solution
Business Model
Business Model Canvas
Value Proposition
• What you offer and how you offer it to
customers
• What type of value or benefit is associated with
yo...
Examples
Winners
Winners is a
department store that
offers fashion conscious
consumers the latest
brand names for up to
60...
CONCLUSION & SUMMARY
Final two slides
Summary
• Startups are different
• Search is about learning
• Lean is about
minimizing waste
• CDM: De-risk your
venture b...
Conclusion
• Entrepreneurial Management offers a set of
tools and processes that makes the process of
starting up more man...
Thank You!
www.marsdd.com/entrepreneurs-toolkit
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E101 october 24 2012 entrepreneurial management

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This presentation illustrates the emergence and impact of a new management practice based on Steve Blank's Customer Development Model and Eric Ries' lean StartUp approach.

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E101 october 24 2012 entrepreneurial management

  1. 1. Entrepreneurial Management Entrepreneurship 101 October 24 2012 Jon E Worren
  2. 2. About you Idea? Product? Business?
  3. 3. Established practices not working Share of Voice Share of Mind Share of Market
  4. 4. The Emergence of New Practices 1911 Scientific Mgmt 1948 Toyota Production System 2001 Agile Develo pment 2003 Lean Thinking 2005 Customer Development 2009 Lean Startup Mvmt
  5. 5. A set of principles and frameworks that helps startups identify a sustainable business model with the least amount of waste possible Entrepreneurial Management
  6. 6. Application Startup Phase Entrepreneurial Management Traditional Management Growth Phase Search Business Model? Execution
  7. 7. PRINCIPLES Entrepreneurial Management
  8. 8. Scientific Management • Time & Work Studies (measurement)
  9. 9. Toyota Production System • Muda – Elimination of waste • Hansei - learning • Kaizen – continuous improvement • Jidoka – self-learning
  10. 10. Agile Development • Customer Collaboration • Iteration (short time frames)
  11. 11. Lean Thinking • Generalization of TPS • Increased focus on “Value”
  12. 12. Customer Development • New 1: De-risking a new venture by breaking up the commercialization process and prioritize business problems to solve • New 2: Focus on Customer Acquisition Customer Discovery Customer Validation Customer Creation Company Building
  13. 13. Lean Startup • Lean Startup = Customer Development + Agile development • Strong build+ measure focus • Popularized approach – created Lean Movement Build Test Measure Learn
  14. 14. PROCESS Entrepreneurial Management
  15. 15. Process Assumptions Test problem Assumptions Measure Evaluate
  16. 16. Step 0- Describe Idea  What kind of problem do you solve for the customer? Is this an important problem for these customers?  Is there a big potential market for your idea?  What is your competition and how do they solve this problem for their customers today?  What is unique about your way of solving the problem?
  17. 17. Step 1 – Review Assumptions • Is the customer problem you are solving validated by a measurable fact? • Are you able to identify which customers are suffering the most from this problem? • Do you understand how the problem impacts the customer and their business? • Do you have evidence that links the customer problem to the target customer?
  18. 18. Step 2 –Test • What key piece of information would validate or invalidate the assumption? • Where does that information reside? • What is the best way to gather that information?
  19. 19. Step 4 & 5 – Measure & Evaluate • Is the customer problem urgent? • Is the problem pervasive? • Will customers pay to have the problem solved? How do these answers measure against your initial assumptions?
  20. 20. 3 outcomes Evaluate Validate: Confirmed value of MVP Iterate: Change your product features Exit: Don’t spend any more money!
  21. 21. The Pivot Easier when…. • You have invested little to this point • You are getting absolutely no traction Harder when……. • High noise to signal ratio ( no clear feedback) • Next step is unclear Entrepreneurs are eternal optimists – choose to persist: - Tweak a little: Our next version will take off! - Easy: Our next campaign/trade show will land key customers!
  22. 22. THE 3 STAGES OF THE PROCESS The quest for a Business Model
  23. 23. The 3 stages of the search process Customer Problem Product Solution Business Model
  24. 24. Business Model Canvas
  25. 25. Value Proposition • What you offer and how you offer it to customers • What type of value or benefit is associated with your offering (e.g., cost savings, time savings, revenue increase, customer/employee satisfaction) and how much of it the customer can expect • How the value is generated • Why it differs from anything else on the market
  26. 26. Examples Winners Winners is a department store that offers fashion conscious consumers the latest brand names for up to 60 per cent off. Google Google is the world’s largest search engine that allows internet users to find relevant information quickly and easily
  27. 27. CONCLUSION & SUMMARY Final two slides
  28. 28. Summary • Startups are different • Search is about learning • Lean is about minimizing waste • CDM: De-risk your venture by breaking up the process • Test for customer problem first • Test solution/MVP • Test customer acquisition • Human element: Give someone the task to keep you accountable!
  29. 29. Conclusion • Entrepreneurial Management offers a set of tools and processes that makes the process of starting up more manageable: • The philosophy brings clarity to the skillset required to succeed: – Less persistence – more perception – Stack the odds in your favour – rather than trying to win against all odds – Commit to the process – not the idea
  30. 30. Thank You! www.marsdd.com/entrepreneurs-toolkit

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