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H4D Lecture 1 stanford 2016

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agile, business model, defense innovation, customer development, h4d, hacking for defense, lean, lean launchpad, lean startup, stanford, steve blank

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H4D Lecture 1 stanford 2016

  1. Session 1: Class Overview, Mission Model, Customer Development Tom Byers, Pete Newell, Joe Felter, Steve Blank
  2. Agenda • Teaching Team Introduction • Course Objectives • Class Logistics • Teaching Style • Lecture: Mission Models/Customer Development • Team Presentations
  3. Teaching Team
  4. Steve Blank 8 startups in Silicon Valley • Semiconductors • Supercomputers • Consumer electronics • Video games • Enterprise software • Military intelligence Teach: Stanford, Berkeley, Columbia, NYU, UCSF, Imperial Details at www.steveblank.com INSTRUCTORS
  5. Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry 8 startups - 32 years in Silicon Valley • Semiconductors • Supercomputers • Consumer electronics • Video games • Enterprise software • Military intelligence Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com • Professor, MS&E and Endowed Chair in Entrepreneurship, School of Engineering • Faculty Director and Founder, STVP • Executive VP and General Manager of Symantec during its formation • Lead Author of McGraw-Hill Textbook: Technology Ventures: From Idea to Enterprise Details: http://www.stanford.edu/~tbyers INSTRUCTORS
  6. Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry 8 startups - 32 years in Silicon Valley • Semiconductors • Supercomputers • Consumer electronics • Video games • Enterprise software • Military intelligence Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com • To be completed • Colonel, US Army Special Forces (Retired) • Appointments with CISAC, Hoover and MS&E at Stanford • Commanded the Counterinsurgency Advisory and Assistance Team (CAAT) in Afghanistan • Helped establish and directed the Combating Terrorism Center (CTC) at West Point INSTRUCTORS
  7. Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry 8 startups - 32 years in Silicon Valley • Semiconductors • Supercomputers • Consumer electronics • Video games • Enterprise software • Military intelligence Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com • 6 startups in Silicon Valley • Online Travel (2) • Online Health • Big Data Analytics (2) • Entrepreneurship Analytics • Active Angel Investor (>40 Investments) • VC – CMEA Capital • …• 30+ years in SV • Founding Exec Director of the Lester Center • VC – Monitor Ventures • Founder and Angel Investor • Software and devices • Internet services • Life Sciences • Teaching at Haas for 22 years • On boards of 5 companies INSTRUCTORS • Army Colonel (retired) • Visiting Research Scholar, National Defense University • Former Infantry Brigade Commander & former Director, U.S. Army Rapid Equipping Force
  8. TAs: Kim Chang, John Deniston, Ben Kohlmann • F/A-18 pilot • Speechwriter for Cmdr, US Fleet Forces • Member Naval Warfare Development Command's Rapid Innovation Cell • Co-Founder of the Defense Entrepreneurs Forum • seven years Air Force officer leading analysis in national intel agencies, special ops, and drone missions • deployed multiple times in Afghanistan embedded with an Army Special Operations team • Design Engineer at Boeing (777 Fuselage) • Engineering Project Mgmt & Global Supply Mgmt at Apple & Nest • DFJ Entrepreneurial Leadership Fellow, 2015-16
  9. TAs: Chris DiOrio, Konstantine Buhler • Prospective submarine officer in the U.S. Navy • Interned with NASA, MIT Lincoln Laboratory, and NSA • National Security Scholar at CISAC • Founded a disaster preparedness organization for seven years, working closely with gov’t agencies • Partnered with Dept of Homeland Security • Worked on software tools for US gov’t and security initiatives at Stanford
  10. Bill Perry - Course Advisor • Michael and Barbara Berberian Professor (emeritus) • Senior fellow at the Freeman Spogli Institute and the Hoover Institution, and Director of the Preventive Defense Project • Former Secretary of Defense
  11. H4D Military Liaison Officers Colonel John Cogbill US Army Commander Todd Cimicata US Navy LTC Ryan Blake US Air Force LTC Scott Maytan US Air Force LTC Ed Sumangil US Air Force LTC Steve Behmer US Air Force Captain Chris Conley US Coast Guard LTC Mark Micke US Marine Corps Colonel John Chu US Army
  12. Sponsors, Mentors, Advisors and Liaisons Each team has a: • DOD/IC problem sponsor • Industry technical mentor • Additional advisors • Stanford military liaison • Support from DIUx
  13. Sponsors, Mentors, Advisors and Liaisons Each team has a: • DOD/IC problem sponsor • Industry technical mentor • Additional advisors • Stanford military liaison • Support from DIUx
  14. Sponsor • Your primary contact in the DOD/IC • They own the problem definition • They are the gateway for customer discovery • You connect with them as needed (at least weekly) – Refine MVPs – Expand Beneficiary contacts
  15. Mentor • They are part of your team – They have committed to spend at least an hour/week • Your local industry support person • You connect with them at least weekly • If it is not working out let us know ASAP
  16. Advisors • Industry support person – Booz Allen, Leidos, etc. • They are part of the class – But they are not your mentor – They have committed to respond to emails/calls • You may connect with them as needed
  17. Military Liasons • Miltary personnel at school at Stanford • Local resource for understanding – Customers – Stakeholders – Problems • Another source for Customer Discovery • Back door interface with military
  18. Primary Mentors Team Mentor Narrative Mind Brian Fishman (Facebook) Guardian Peter Blake (SkyCatch) Fishreel Dr Dan Boneh (Stanford Security Lab) Capella Dan Berkenstock (Google) Aqualink TBD Sentinel TBD (Palantir) Skynet TBD Live Tactical Threat Toolkit TBD (Oculus)
  19. Course Logistics MS&E 297 Hacking For Defense
  20. Week Team Presentation Lecture Topic March 29th Mission Model Canvas Lecture 1 Mission Model, Cust Development, Beneficiaries April 4th Workshop Working with the DOD/IC, Discovery in DOD/IC What’s a Minimal Viable Product April 5th Beneficiaries Lecture 2 Value Proposition April 12th Value Proposition Lecture 3 Product/Market Fit April 19th Product/Market Fit Lecture 4 Deployment April 26th Deployment Lecture 5 Buy-in & Support May 3rd Buy-in & Support Lecture 6 Mission Achievement May 10th Mission Achievement Lecture 7 Activities and Resources May 17th Activities & Resources Lecture 8 Partners and Mission Costs May 24th Partners and Mission Costs, Draft of Final LLP Lecture 9 Reflections May 31st Lessons Learned Schedule
  21. Course Readings - Weekly MS&E 297 2016 Syllabus Course: MS&E 297 Hacking For Defense (H4D): Solving National Security issues with the Lean Launchpad Instructors: Tom Byers, Joe Felter, Pete Newell, Steve Blank CA’s: Kim Chang, Ben Etringer, Ben Kohlman, John Deniston, Chris DiOrio, Location: Thornton 110 Days: Tuesdays March 29th – May 31st Times: 4:30 - 7:20 pm Office Hours: Tuesdays 3:15 - 4:15 pm or by prior arrangement Webpage: http://hacking4defense.stanford.edu Texts: Business Model Generation: Osterwalder, et al Value Proposition Design: Osterwalder, et al Startup Owner’s Manual: Blank & Dorf Talking to Humans: Constable & Rimalovski Lectures: http://www.udacity.com/view#Course/ep245/CourseRev/1 Prerequisite: Passion in discovering how to innovate at speed Goal: Hands-on experience in understanding, and working with the Defense (DOD) and Intelligence Community (IC) on actual current problems Note: 1. All team members need to be present in class on March 29th for the team to be enrolled in the class (unless previously excused) 2. Teams need to interview 10 customers before the first class 3. Teams need to present their first MVP in the first class 4. Read the Intellectual Property section of the FAQ Check the Syllabus Every Week
  22. Course Readings – Lectures Online Lectures online •All students must watch lectures weekly •Class will be lecture discussion with cold calling
  23. Weekly Team Deliverables • Lessons Learned presentation 8 minutes – Summary of your “outside the building” progress – MVP update, demo of major changes – Results of hypothesis testing – Update mission model canvas – Update your blog
  24. Course Objectives MS&E 297 Hacking For Defense
  25. What’s The Class About? • Teaches Lean Startup Theory + hands-on practice • You will learn: – How the DOD/Intelligence community works – Urgency, Evidence-based entrepreneurship, Customer Development, “good-enough” decision making • You will do so by talking to10 ”beneficiaries” e.g. DoD/IC end users/stake holders a week and present your results in class weekly
  26. Course Objective: Simulate A Startup • Create startup pressures, uncertainty, and challenges – Our expectations are unreasonable, they require extraordinary effort – We expect failures, iterations and Pivots – Class is a “lab” - books/lectures are tools, not answers – Fail fast, learn quick, push you outside your comfort zone – We are relentlessly direct
  27. The Lean Methodology
  28. Part 1 Agile Engineering + Part 2 Part 3 Elements of Lean Startup
  29. 1. Frame Hypotheses • Frame Hypotheses 
  30. 1. Frame Hypotheses • Frame Hypotheses Mission Model Canvas
  31. Mission Model Canvas = hypotheses of how you create and deliver value for the DOD/IC and the warfighter Part 1 Source: Alexander Osterwalder- Business Model Generation Beneficiaries Deployment Buy- in/Support Mission Achievement Value Proposition Activities Resources Partners Costs
  32. Mission Model Canvas Source: Alexander Osterwalder- Business Model Generation Beneficiaries Deployment Buy- in/Support Mission Achievement Value Proposition Activities Resources Partners Costs how does the team get “Buy- In” from all the beneficiaries? How will we deploy the product to widespread use? What constitutes a successful deployment? Who are our most important customers? Stakeholders? What are their pains/gains? What job do they want us to get done for them> How are we solving each customers pains/gains? How? What product/servic e features match their needs? What key activities do we need to be expert in? What key resources do we need to own or acquire? Financial? Human? Who are our key partners? Suppliers? What are we getting from them? Giving them? What is the Mission Budget/Cost? How will we measure Mission Achievement?
  33. 2. Test Hypotheses • Frame Hypotheses • Test Hypotheses Business Model Customer Development   Customer Development is how you search for the model
  34. 9 Guesses Guess Guess Guess Guess Guess Guess Guess GuessGuess Customers Channel Customer Relationships Revenue Model Source: Alexander Osterwalder- Business Model Generation
  35. Customer Development is Hypothesis Testing
  36. 3. Build Incrementally & Iteratively • Frame Hypotheses • Test Hypotheses • Build the product incrementally & Iteratively Business Model Customer Development Agile Engineering   
  37. The Minimum Viable Product (MVP) • Smallest feature set that gets you the most … - learning, feedback, failure, orders, … - incremental and iterative • It is not a prototype • It is not a deployable version with the fewest features • It is what enables a test of a hypothesis • It may be a drawing, a slide, a wireframe, clickable workflow, etc…
  38. The Pivot • Definition: A substantive change to one or more of the business model canvas components • Iteration without crisis • Fast, agile and opportunistic
  39. Getting Out of The Building • You can’t pass by attending the lectures • This class is not about our lectures • You can’t cram this work • The class is about the work you do outside the building talking to beneficiaries
  40. Issues You’ll Encounter • Product/Market Fit – If assumptions are failing - pivot by week 4 • Team Issues – Someone not working hard enough • address it head on – Team members are not your friends, they are your partners - look for ways to work it through • If you need help, ask – CA’s, instructors, mentors, advisors are here to help
  41. The Goal is Not to build a Cool Demo
  42. We are Not an Incubator
  43. We are Not an Incubator Mentors/Advisors are Not Allowed to Talk to You about Jobs, Funding, Until Class is Over
  44. If You’re Not Getting Thrown Out You’re Not Trying Hard Enough Catfishing team now holds the record
  45. Care Personally Challenge Directly Derived from Radical Candor — The Surprising Secret to Being a Good Boss Overly Polite Don’t Care “Relentlessly Direct” Teaching
  46. Manipulative Insincerity Derived from Radical Candor — The Surprising Secret to Being a Good Boss Overly Polite Don’t Care
  47. Manipulative Insincerity Ruinous Empathy Care Personally Challenge Directly Derived from Radical Candor — The Surprising Secret to Being a Good Boss Overly Polite Don’t Care
  48. Manipulative Insincerity Ruinous Empathy Care Personally Challenge Directly Derived from Radical Candor — The Surprising Secret to Being a Good Boss Overly Polite Don’t Care Obnoxious Aggression
  49. Manipulative Insincerity Ruinous Empathy Care Personally Challenge Directly Derived from Radical Candor — The Surprising Secret to Being a Good Boss Overly Polite Don’t Care Obnoxious Aggression Relentlessly Direct
  50. Care Personally Challenge Directly Derived from Radical Candor — The Surprising Secret to Being a Good Boss Relentlessly Direct

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