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Business 101.1
A class in business. And entrepreneurship.
Fall 2016
NYU ITP
October 3, 2016
Josh Knowles
Jen van der Meer
Extra love from Tom Igoe
And the Leslie E-Lab
Syllabus Map
START +
Form
Teams
Business
Models
Customer
Development
How to
Interview
Value
+ The Purpose
of Business
Values
Motivation
Team
Customer
Relationships
+ Channels
Analytics
Key Resources
Activities
Partners
Biggest Vision
Analyze Test
The Money
Plan MVP
Turning
Insights Into
Features
More MVP
How small,
How big?
Launch MVP
Lessons
Learned
Go/No Go?
Sketch
Paper
Prototype
Oz Test
Smallest MVP
Tech
Architecture
The center of a business model: value
proposition
Versions of the truth:
Value Prop in Practice
Crossing the Chasm
The Value prop Canvas (osterwalder)
Value
+ The Purpose
of Business
Smallest MVP
TEAMS
Fragrances
Yu Shi
Joy (Eun Jee Kim)
Igor Carrasco
Fashion Socent
Soy (Soyeon Chung)
Peter Winne
Asad Lilani
Lin Yang
Prisons
Social Community for
Designers
Dhruv
Daniel Silber Baker
Molly O’Shea
Isobel Donjon
Predictive Social
Listening
Tattoo Artist Matching
Fernanda
Eric Ramirez
Javiera Valle Toro
Fashion 3 D
Angie Aguilar
Olivia
Ergonomic Design
Ashley Williams
Yan
Max Theony
Malcolm Pittman
VALUE
PROPOSITION
CREATED BY: CREATED FOR: VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
HOW WILL YOUR BUSINESS WORK?
Whom do
you help?
What pains
do you
solve?
What do
you
uniquely
offer?
Distinct
segmentsWhere do
we reach
them?
How do we
get keep
and grow?
How will
you
charge?
What will
it cost?
What do
you need
to have?
How do
you do it?
Who will
help you?
Business 101.1 class 4
CREATED BY: CREATED FOR:
VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
GET TO VALUE PROPOSITION FIT
CREATED BY: CREATED FOR:
VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
AND THE REST OF THE BUSINESS MODEL WILL FOLLOW
Business 101.1 class 4
Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
WHAT IS A
BUSINESS
MODEL FOR?
DEFINE
WHAT IS A VALUE PROPOSITION
VALUE PROPOSITION VS.
VALUE PROPOSITION
BRANDING VS. INNOVATION
THE VALUE PROP SCHOOLS
THE VALUE PROP CONFUSION
VALUE PROPOSITION VALUE PROPOSITION
PAIN POINTSBRAND PILLARS
JOBS TO BE DONEREASONS TO BELIEVE
PAIN RELIEVERS
DIFFERENTIATION
ORIGIN: CHRISTENSENORIGIN:
VALUE PROP CANVAS
STRATEGY, MAD AVE INNOVATION THEORY
UNIQUE SELLING PROPS
THE PROBLEM
FACTORY VIEW OF VALUE CREATION
R&D
This is where
design and brand
types got to play
This was typically
very engineering /
science heavy
NPD
“The social responsibility of
corporations is to increase
profits.”
Milton Friedman, 1970
SHAREHOLDER VIEW OF COMPANIES
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
Disruption Theory - Christensen Innovator’s Solution
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
“Excuse me, but could you please tell
me what job you were needing to get
done for yourself when you came here
to hire that milkshake?”
THE SOLUTION SOLUTION
INNOVATORS VIEW OF VALUE CREATION
Job-defined markets are generally much larger than
product category–defined markets.
Marketers who are stuck in the mental trap that equates
market size with product categories don’t understand who
they are competing against from the customer’s point of
view.
Clayton Christensen, Innovator’s Solution
MILKSHAKE INSIGHTS
The .. mistake was to adopt a narrow view of the type of food people
have always eaten in the morning, as if all habits were deeply rooted
traditions instead of accumulated accidents.
Neither the shake itself nor the history of breakfast mattered as much
as customers needing food to do a nontraditional job – serve as
sustenance and amusement for their morning commute – for which
they hired the milkshake.
Clay Shirky, Cognitive Surplus
MORE MILKSHAKE MUSINGS
https://www.youtube.com/watch?v=suRDUFpsHus
KODAK CAROUSEL ON MAD MEN
VALIDATION + GENERATION
Be playful with your
value proposition, human-centered,
focused on whom you are here to serve
Jen van der Meer
VALIDATION + GENERATION
LET’S PLAY
Pick a company:
Uber
Airbnb
Warby
Other???
VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developing
company name defined offering
to help
Why we’re better:
to solve
target customer segment defined problem or pain
our differentiation
Why we’re believable:
our proof point, secret sauce
Business 101.1 class 4
Business 101.1 class 4
NOW YOU
VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developing
company name defined offering
to help
Why we’re better:
to solve
target customer segment defined problem or pain
our differentiation
Why we’re believable:
our proof point, secret sauce
PAIN TIME
WHY DOES PAIN MATTER IN STARTUPS?
WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
At the start focus here
WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
The most difficult step is making the
transition between visionaries (early
adopters) and pragmatists (early majority).
You do this by reducing the risks that the
pragmatists are unwilling to take on
WHY DOES PAIN MATTER IN STARTUPS?
QUIZ: WHERE SHOULD YOU FOCUS AND WHY?
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?
WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP + GUARD RAILS
Agile Development
Customer
Discovery
Have we identified a customer
segment with a clearly defined,
known pain point?
Does out offer and
experience deliver a
solution to our
customer’s problem?
Solution
Problem
Business 101.1 class 4
Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
FINAL Q
TODAY
DOES THE CURRENT WAY WE
MAKE NEW COMPANIES
CHALLENGE THE
SHAREHOLDER-ENTERIC VIEW
OF THE PURPOSE OF A
COMPANY?
LE FIN
Business 101.1 class 4
CONTACT:
Jen or Josh for Office Hours

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Business 101.1 class 4

  • 1. Business 101.1 A class in business. And entrepreneurship. Fall 2016 NYU ITP October 3, 2016 Josh Knowles Jen van der Meer Extra love from Tom Igoe And the Leslie E-Lab
  • 2. Syllabus Map START + Form Teams Business Models Customer Development How to Interview Value + The Purpose of Business Values Motivation Team Customer Relationships + Channels Analytics Key Resources Activities Partners Biggest Vision Analyze Test The Money Plan MVP Turning Insights Into Features More MVP How small, How big? Launch MVP Lessons Learned Go/No Go? Sketch Paper Prototype Oz Test Smallest MVP Tech Architecture
  • 3. The center of a business model: value proposition Versions of the truth: Value Prop in Practice Crossing the Chasm The Value prop Canvas (osterwalder) Value + The Purpose of Business Smallest MVP
  • 4. TEAMS Fragrances Yu Shi Joy (Eun Jee Kim) Igor Carrasco Fashion Socent Soy (Soyeon Chung) Peter Winne Asad Lilani Lin Yang Prisons Social Community for Designers Dhruv Daniel Silber Baker Molly O’Shea Isobel Donjon Predictive Social Listening Tattoo Artist Matching Fernanda Eric Ramirez Javiera Valle Toro Fashion 3 D Angie Aguilar Olivia Ergonomic Design Ashley Williams Yan Max Theony Malcolm Pittman
  • 6. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur HOW WILL YOUR BUSINESS WORK? Whom do you help? What pains do you solve? What do you uniquely offer? Distinct segmentsWhere do we reach them? How do we get keep and grow? How will you charge? What will it cost? What do you need to have? How do you do it? Who will help you?
  • 8. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur GET TO VALUE PROPOSITION FIT
  • 9. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur AND THE REST OF THE BUSINESS MODEL WILL FOLLOW
  • 11. Gain Creators Pain Relievers Pains Gains Products & Services Customer Job(s) Value Proposition Customer Segment copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer The Value Proposition Canvas strategyzer.com
  • 13. DEFINE WHAT IS A VALUE PROPOSITION
  • 14. VALUE PROPOSITION VS. VALUE PROPOSITION BRANDING VS. INNOVATION THE VALUE PROP SCHOOLS THE VALUE PROP CONFUSION
  • 15. VALUE PROPOSITION VALUE PROPOSITION PAIN POINTSBRAND PILLARS JOBS TO BE DONEREASONS TO BELIEVE PAIN RELIEVERS DIFFERENTIATION ORIGIN: CHRISTENSENORIGIN: VALUE PROP CANVAS STRATEGY, MAD AVE INNOVATION THEORY UNIQUE SELLING PROPS
  • 16. THE PROBLEM FACTORY VIEW OF VALUE CREATION R&D This is where design and brand types got to play This was typically very engineering / science heavy NPD
  • 17. “The social responsibility of corporations is to increase profits.” Milton Friedman, 1970 SHAREHOLDER VIEW OF COMPANIES
  • 18. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION
  • 19. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION Disruption Theory - Christensen Innovator’s Solution
  • 20. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION “Excuse me, but could you please tell me what job you were needing to get done for yourself when you came here to hire that milkshake?”
  • 21. THE SOLUTION SOLUTION INNOVATORS VIEW OF VALUE CREATION
  • 22. Job-defined markets are generally much larger than product category–defined markets. Marketers who are stuck in the mental trap that equates market size with product categories don’t understand who they are competing against from the customer’s point of view. Clayton Christensen, Innovator’s Solution MILKSHAKE INSIGHTS
  • 23. The .. mistake was to adopt a narrow view of the type of food people have always eaten in the morning, as if all habits were deeply rooted traditions instead of accumulated accidents. Neither the shake itself nor the history of breakfast mattered as much as customers needing food to do a nontraditional job – serve as sustenance and amusement for their morning commute – for which they hired the milkshake. Clay Shirky, Cognitive Surplus MORE MILKSHAKE MUSINGS
  • 25. VALIDATION + GENERATION Be playful with your value proposition, human-centered, focused on whom you are here to serve Jen van der Meer
  • 28. VALUE PROP MADLIBS VALUE PROPOSITION My organization is developing company name defined offering to help Why we’re better: to solve target customer segment defined problem or pain our differentiation Why we’re believable: our proof point, secret sauce
  • 32. VALUE PROP MADLIBS VALUE PROPOSITION My organization is developing company name defined offering to help Why we’re better: to solve target customer segment defined problem or pain our differentiation Why we’re believable: our proof point, secret sauce
  • 34. WHY DOES PAIN MATTER IN STARTUPS?
  • 35. WHY DOES PAIN MATTER IN STARTUPS? CROSSING THE CHASM Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm. At the start focus here
  • 36. WHY DOES PAIN MATTER IN STARTUPS? CROSSING THE CHASM Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm. The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority). You do this by reducing the risks that the pragmatists are unwilling to take on
  • 37. WHY DOES PAIN MATTER IN STARTUPS? QUIZ: WHERE SHOULD YOU FOCUS AND WHY? Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?
  • 38. WHY DOES PAIN MATTER IN STARTUPS? FIND THE GROWTH SKI JUMP Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm.
  • 39. WHY DOES PAIN MATTER IN STARTUPS? FIND THE GROWTH SKI JUMP + GUARD RAILS Agile Development Customer Discovery Have we identified a customer segment with a clearly defined, known pain point? Does out offer and experience deliver a solution to our customer’s problem? Solution Problem
  • 41. Gain Creators Pain Relievers Pains Gains Products & Services Customer Job(s) Value Proposition Customer Segment copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer The Value Proposition Canvas strategyzer.com
  • 43. DOES THE CURRENT WAY WE MAKE NEW COMPANIES CHALLENGE THE SHAREHOLDER-ENTERIC VIEW OF THE PURPOSE OF A COMPANY?
  • 46. CONTACT: Jen or Josh for Office Hours