This document summarizes key models and concepts discussed in a presentation on product development and customer discovery for startups. It introduces the product development model, which focuses on execution over customer learning, and identifies pitfalls like lack of customer feedback. An alternative technology adoption life cycle is presented. The customer development model advocates discovering and validating customers through iterative stages of customer discovery, creation, and validation. Finally, different types of startup markets are defined based on factors like existing versus new markets and user base size.

1. Introduction to the
Company
Live Q&A Session with
Prof. Jayanta Chatterjee
Design Thinking, IIT Kanpur & ISB

2. Page -2-
Agenda for Session
Product Development Model
Technology Life Cycle Adoption Curve
Customer Development Model
1
2
3
Types of Startup Markets4
Open Q&A5

3. Page -3-
Product Development Model
A conventional approach that is meant for launching new products in the existing market
• Draft Clear Vision
• Develop
Product/Service
Concept
• Structure the
Distribution
Channel
• Engineer Product
• Figure the
Marketing
Requirements
• Onboard the First
Beta Customers
• Seek Additional
Capital
• Launch Marketing
Programs
• Keep Raising Funds
till IPO/Merger
Concept/Seed LaunchAlpha/Beta Test
Product
Development

4. Page -4-
Pitfalls of Product Development Model
There are certain aspects which are wrong with this model
1
2
3
4
5
Where Are the Customers?
Emphasis on Execution Instead of Learning and
Discovery
Lack of Meaningful Milestones
Focus on First Customer Shipment
Use of Product Development Methodology to
Measure Sales

5. Page -5-
Pitfalls of Product Development Model
There are certain aspects which are wrong with this model
6
Use of Product Development Methodology to
Measure Marketing
7 Premature Scaling
8
Death Spiral: Cost of Getting Product Launch
Wrong
9 All Startups Not Being Alike
10 Unrealistic Expectations

6. Page -6-
Agenda for Session
Technology Life Cycle Adoption Curve
Product Development Model
Customer Development Model
2
1
3
Types of Startup Markets4
Open Q&A5

7. Page -7-
Technology Life Cycle Adoption Curve
An alternative approach for success with customers and markets
Source: http://www.henrik.no/presentations/thesis/scandinavian_airlines_1999/literature.html

8. Page -8-
Agenda for Session
Technology Life Cycle Adoption Curve
Product Development Model
Customer Development Model
2
1
3
Types of Startup Markets4
Open Q&A5

9. Page -9-
Customer Development Model
A model based on learning from and discovering your company’s customer base
Customer
Discovery
Customer
Creation
Customer
Validation
Company
Building
STOP STOP STOP
• Find Customers
• Clear your Product
Differentiation
• Emphasize on
Customer Feedback
• Create a Sales Road
Map
• Verify Market
• Check Product’s
Perceived Value
• Decide on Price
• Create End-User
Demand
• Spend Heavily on
Marketing
• Control Cash Burn
Rate
• Build Mission
Oriented
Departments
• Keep Low Cash Burn
Rate
• Scale Up Gradually

10. Page -10-
Agenda for Session
Technology Life Cycle Adoption Curve
Product Development Model
Customer Development Model
2
1
3
Types of Startup Markets4
Open Q&A5

11. Page -11-
Types of Startup Markets
Each of these have different set of requirements to succeed
New Product in
Existing Market
New Product in New
Market
New Product
Attempting to
Resegment Existing
Market: Low Cost
New Product
Attempting to
Resegment Existing
Market: Niche
• Known User Base
• Known Competitors
• Better Product/Service to
be Tested
• Company: Tesla
• Product: Electric Cars
• Unknown User Base
• No Competitor Base at the
Onset
• High Cash Burn Rate
• Company: Apple
• Product: iPod
• Low Cost User Base
• Known Competitors
• Limited Product Features
• Company: Indigo
Product: Airline
• User Base with Specific
Needs
• Known Competitors
• Product Performance Focus
• Company: Amy’s Kitchen
• Product: Organic Food

12. Page -12-
Agenda for Session
Technology Life Cycle Adoption Curve
Product Development Model
Customer Development Model
2
1
3
Types of Startup Markets4
Open Q&A5

13. Page -13-
Ask your queries
Open Q & A
Now you can put up your queries on the chat box