102. What Is a Business Model? Diagram of flows between company and customers Scorecard of hypotheses testing Rapid change with each iteration and pivot Product Management-driven * Alex Osterwalder
103. Business Model = Keeping Score in a Startup CUSTOMER RELATIONSHIP PARTNER NETWORK INFRASTRUCTURE CUSTOMER OFFER TARGET CUSTOMER CORE CAPABILITIES portrays the network of cooperative agreements with other companies explains the relationships a company establishes with its customers VALUE PROPOSITION describes the customers a company wants to offer value to outlines the capabilities required to run a company's business model gives an overall view of a company's bundle of products and services DISTRIBUTION CHANNEL VALUE CONFIGURATION describes the channels to communicate and get in touch with customers describes the arrangement of activities and resources sums up the monetary consequences to run a business model describes the revenue streams through which money is earned COST STRUCTURE REVENUE STREAMS FINANCE
129. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Continuous Discovery Done by founders
131. Customer Discovery Hypotheses Customer& ProblemHypothesis Distribution & PricingHypothesis Demand CreationHypothesis Market Type Hypothesis Product Hypothesis Competitive Hypothesis Test “Problem” Hypothesis “Problem”Presentation CustomerUnderstanding MarketKnowledge FriendlyFirst Contacts Test “Product” Hypothesis “Product”Presentation Yet MoreCustomerVisits SecondReality Check First RealityCheck Verify Verify theBusiness Model Iterate orExit Verify theProblem Verify the Product
132. Customer Development in the High-Tech Enterprise Fall 2009 Customer Discovery Customer& ProblemHypothesis Distribution & PricingHypothesis Demand CreationHypothesis Market Type Hypothesis Product Hypothesis Competitive Hypothesis “Problem”Presentation CustomerUnderstanding MarketKnowledge FriendlyFirst Contacts “Product”Presentation Yet MoreCustomerVisits SecondReality Check First RealityCheck Verify theProblem Verify theBusiness Model Iterate orExit Verify the Product Inside the Building Hypotheses Test “Problem” Hypothesis Outside the Building Test “Product” Hypothesis Verify
133. Hypothesis Product Customer/Problem Distribution/Pricing Demand Creation Market Type Competition Customer& ProblemHypothesis Distribution & PricingHypothesis Demand CreationHypothesis Market Type Hypothesis Product Hypothesis Competitive Hypothesis
137. Customer Validation Get Ready to Sell Prelim Sales & Collateral Materials Prelim Distribution Channel Plan Articulate a Value Proposition Prelim SalesRoadmap Hire a “Sales Closer” Align YourExecutives Sell to “EarlyVangelists” Formalize Advisory Board Refine Channel Roadmap Contact VisionaryCustomers Sell to Channel Partners Sell to EarlyCustomers Refine SalesRoadmap Develop Positioning Present toAnalysts &Influencers CompanyPositioning ProductPositioning Verify Verify theSales Roadmap Verify the Channel Roadmap Iterate or Exit Verify theBusiness Model Verify the Product
143. New Product Conundrum Product introductions aren’t predictable Why? Is it the people that are different? Is it the product that are different? Are there different “types” of startups?
144. Three Markets Types Market Type changes everything Sales, marketing and business development differ radically by market type
145. Three Types of Markets Existing Market Faster/Better = High end Resegmented Market Niche = marketing/branding driven Cheaper = low end New Market Cheaper/good enough = creates a new class of product/customer Innovative/never existed before
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149. Waterfall / Product ManagementExecution on Two “Knowns” Requirements Product Features: known Design Implementation Verification Customer Problem: known Maintenance Source: Eric Rieshttp://startuplessonslearned.blogspot.com
150. Agile - Customer Problem is KnownExisting Company/Market “Product Owner” or in-house customer Unit of progress: a line of working code Problem: Known Solution: Unknown Source: Eric Rieshttp://startuplessonslearned.blogspot.com
151. Lean StartupCustomer Problem + Product Features are Unknown Problem: Unknown Solution: Unknown Source: Eric Rieshttp://startuplessonslearned.blogspot.com
