7. Find the Gap
How to find
opportunities that others
don’t see.
- Amy Wilkinson
7
8. Lean Startup Dublin Meetup launched Jan 2012 – now over 1,000
members
Workshops run by Ash Maurya, John Mullins, Brant Cooper, Mary
Cronin & Raomal Perera
Talks on Lean Startup, Social Media, Agile, Fund Raising, How to Build
a Startup, Lego Serious Play, Lean in Corporates, Crowd Funding,
Cartier Women’s Initiative Award (CWIA)
LeanCamp
Lean Startup Dublin Meetup
http://www.meetup.com/Lean-Startup-Dublin/
8
17. How breakthrough ideas emerge from
small discoveries
Creative thinkers practice a set of simple but
ingenious experimental methods
• failing quickly to learn fast
• tapping into the genius of play
• engaging in highly immersed
observation
Free their minds, opening them up to making
unexpected connections and perceiving
invaluable insights.
17
23. 23
Finding the Problem is the Hard Part
– Kevin Systrom & Mike Krieger (Instagram
Co_Founders)
Instagram Co-Founder Kevin Systrom believes building
solutions for most problems is the easy part; the hard part is
finding the right problem to solve. Here he opens up about
how he and fellow Co-Founder Mike Krieger identified the
problems they wanted to solve around sharing photos through
mobile devices. He also reminds entrepreneurs to embrace
simple solutions, as they can often delight users and
customers.
27. Key Question: Do I have a problem worth solving?
Who has the problem?
What is the top problem?
How is it solved today?
Where do they have the problem or in what context do
they have a problem? (milkshake example)
When do they have the problem?
Why is it a problem? (root cause analysis. Why is the
single best word for creating value in a start-up and an
established business) - It is not possible to know what the
top problem is without knowing where, when and why
they have a problem. Also the questions may not be
answered in sequence e.g. will we find the problem and
the person with the problem at the same time?
Identify the Problem
27
28. Take a stab at defining the solution
Build a demo (MVP)
Test it with assumed customers
Will the solution work? (can the proposed
solution create customer value that exceeds the
cost to produce and deliver the solution to the
customer)
Who it the early adopter?
Does the pricing model work?
Define the Solution
28
29. Build an MVP
Soft launch to early adopters
Do they realise the unique value proposition
How will you find enough early adopters to support
learning?
Are you getting paid?
Analysis: There needs to be a bit of intuitive thinking
around the MVP. We need to ask and then guess how we
can create the most unique customer value in the shortest
amount of time with the least resources. With a bit of
thinking and an equal amount of action we have a chance
of appropriating real value in the short term
VALIDATE THE QUALITATIVELY
Validate Qualitatively
29
30. Launch your refined product to a larger audience
Have you built something people want?
How will you reach customers at scale
Do you have a viable business?
Analysis: A refined product needs to test both
qualitatively and quantitatively in order to find out
why the refined product creates customers’ value
and how large is the market potential?
Can this business produce (organically or through
investment) enough cash in the short term in order
that customers value - cost to produce = profit
Validate Quantitavely
30
35. Traction is a measure of your product’s engagement
with its market. Investors care about traction over
everything else.- Nivi and Nival, Venture hacks
Problem/Solution
Fit
Product/Market
Fit
Scale
Ideal
time to
raise
money
35
40. Our subjective judgements are
biased: we are far too willing to
believe research findings based
on inadequate evidence and
prone to collect too few
observations in our own
research
40
42. “Studies comparing successful and
unsuccessful innovation have found that the
primary discriminator was the degree to
which the user needs were fully
understood.”
– David Garvin, Harvard Business School
42
43. 43
Knowledge is having the right answer.
Intelligence is asking the right questions
The Art of Customer Interviewing
45. What is a business model?
A business model describes the rationale
of how an organisation Creates, Delivers
and Captures value
45
46. Why we need a shared language for
business models?
46
https://strategyzer.com/academy/cours
e/business-models-that-work-and-
value-propositions-that-sell/1/1
Note: You may need to license the online learning tool on Strategyzer to
view this clip from Osterwalder
47. Use of BMC in Established Companies
IMPROVE ----------------------------------INVENT
Know Problem/Know Solution -Unknown Problem/Unknown
Solution
------EXECUTE -------------------------SEARCH------------
47
54. Customer Development Process
Post it to the Wall
Create the canvas
Make it visible
Use Yellow Post-It
notes with your
guesses
Get out of the building and test your hypotheses.
There are NO FACTS here. Talk to customers, partners,
vendors. Design experiments, run tests,
get data
54
55. Hypotheses or Guesses
The canvas is a set of hypotheses, i.e. guesses
It helps us to organize our thinking! It is not
about functional organisation, but about the
business
The real question is HOW do we change those
guesses into FACTS?
55
56. Customer Archetypes
Meet Paul, Sheetal and Barbara
Paul-RegularExerciser
• 20 – 45
• Aim to maintain and
track active lifestyle
• Looking for
inspiration on diet &
exercise regimes
• Gets a buzz from
exercising
Sheetal-SpiritualHealth
•
• 30 – 55
• Already follows a
healthy lifestyle
• Interested in
alternative
medicines/
treatments
• Believes eating well
is as important as
exercise
Barbara-On-OffDieter
•
• 30 +
• Yo-yo dieter, has
tried many of the fad
diets but never stuck
to one
• Needs tips and
motivation to keep
up a healthy lifestyle
• Irregular or
infrequent exerciser
56
62. Bringing It All Together At the
Business Model Competition
62
https://strategyzer.com/platform/traini
ng/courses/business-models-that-work-
and-value-propositions-that-sell/6/3/3
Note: You may need to license the online learning tool on Strategyzer to
view this clip from Osterwalder
63. Review
–First Identify the problem and then define the
solution. Not the other way around.
–Find the Gap
–If you understand the job, how to improve the
product becomes obvious
–The BMC is a shared language for business
modelling. Use the template to change your
guesses to FACTS.
–Never underestimate the power of
networking
63
70. Additional Resources
70
BMC Online Tools:
Strategyzer
https://canvanizer.com/ (free tool)
BMC tool for educators:
Launchpad Central offers end-to-end solutions to
validate business hypotheses, testing for value and
accelerating time to market.
71. Additional Resources
71
Stattys Notes; http://www.stattys.com/
- A new generation of adhesive notes with a unique "Write
and Slide" function.
Mapping the business model design space
77. “People buy products and services to get jobs
done. As people complete these jobs, they
have certain measurable outcomes that they
are attempting to achieve. It links a company's
value creation activities to customer-defined
metrics.” - Ulwick
OUTCOME-DRIVEN
INNOVATION
77
78. Key Value Proposition Questions
• Problem Statement: What is the problem?
• Ecosystem: For whom is this relevant?
• Competition: What do customers do
today?
• Technology / Market Insight: Why is the
problem so hard to solve?
• Market Size: How big is this problem?
• Product: How do you do it? 78
79. • Problem Statement: Net security without a CTO
• Ecosystem: Small banks under FDIC pressure
• Competition: Expensive, Custom or DIY
• Technology / Market Insight: Small Companies
without Big Resources…Fines getting bigger
• Market Size: 9000 little banks, 5000 + more
• Product: perimeterusa.net
Example
79
81. Through what
mechanism
will your service
(product) be
delivered to your
client?
How will we GET,
KEEP and GROW
Customers? How will I
get the Value
to my
Customers?
How best to
communicat
e to each
customer
segment
Channels & Customer Relationships
81
82. Two Critical Channel Questions
How do you want to sell your product?1
is subtle, but more important than the first:
How does your customer want to buy your
product?
2
82
92. MVP
A Minimum Viable Product (MVP) is
“that product which has just those
features and no more that allows you
to ship a product that early adopters
see and, at least some of whom
resonate with, pay you money for, and
start to give you feedback on”
92
93. MVP #1 Explainer video
Explainer video is a short video that explains
what your product does and why people should
buy it.
A simple, 90 seconds animation is sufficient.
e.g. Dropbox
How to make an explainer video
93
94. MVP #2 A Landing Place
A landing page is a web page where
visitors “land” after clicking a link from
an ad, e-mail or another type of a
campaign.
94
95. MVP #2 A Landing Page
• Craft your Landing Page
• Set up a Google AdWord campaign and drive traffic
to your new landing page. Even here you can let the
AdWord engine rotate different messages and test
what works best on your prospects
• Set up Google Analytics. The most important thing to
measure is conversions – percent of visitors that sign
up (or perform another desired action)
• Set up a chat to make it easy for the visitors to raise
questions
• Set up a service like Qualaroo to survey your visitors
95
96. MVP #3 Wizard of Oz
A “Wizard of Oz” MVP is when you put up a
front that looks like a real working product, but
you manually carry out product functions. It’s
also known as “Flinstoning”.
Zappos shoes is the biggest online shoe
retailer, with annual sales exceeding $1 billion.
In his Lean Startup book, Eric Ries describes
how the founder started with a Wizard of Oz
product.
96
97. MVP #4 The Concierge MVP
Instead of providing a product, you start
with a manual service. But not just any
service! The service should consist of
exactly the same steps people would go
through with your product.
97
98. MVP #5 Piecemeal MVP
This strategy is a blend between the “Wizard
of Oz” and “Concierge” approaches. Again,
you emulate the steps people would go
through using your product – as you envision
it.
98
99. MVP #5 Crowd Funding
Sell it before you build it.
The basic idea is simple: launch a crowd
funding campaign on platforms such as
Kickstarter or IndieGoGo. Not only will you
validate if customers want to buy your product,
but you will also raise money.
99