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

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