The document discusses an innovative approach to managing new ideas called the Lean Startup method. This method advocates for building minimum viable products, getting early customer feedback, and iterating quickly based on validating problem-solution and product-market fits, rather than relying on grand plans and hoping for the best. It emphasizes including customers at every step and being prepared to fail fast and cheaply through continuous learning. Adopting this approach can help businesses innovate with more confidence.

1. STOP GUESSING!
adding science to magic in
managing the implementation
of innovative ideas
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22 September 2014

2. What we know: the world is getting smaller, again…
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Convergence…

3. Everybody wants to own the platform
If you own the platform, you own the customer,
otherwise you’re just a value-added service provider….
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22 September 2014

4. © BSG. All rights reserved.
Product Service
Value
But what do our customers need?
Nobody knows for sure, not even our
customers….
Best match wins

5. We’re smart people after all…
so we have good ideas!
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How have we (mostly) always done
things?
Typically, it takes a long time to get from initial commitments to actual results…
and HOPE
The Big
launch
Grand plan Blueprint
Dedicate
resources
Build
Do we know
enough?
What do we
need to
move to
looking like?
Who?
How much?
What am I
committing to
show as a
return?
Overruns?
Why is it
taking so
long?
Will it
work?
1
2
3
Is this the right
thing to do?
Are we managing
expectations
effectively?
Are we confident that this
will work?
Is there another way?
Real customers, in real situations, are often not part of this at all!
Vanity metrics!

6. Does it work?
Alan Smithee –
78 movie credits
on IMDB.com
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7. So where does this leave us?
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HOPE
Making big bets and
hoping for the best
Build confidence iteratively, in line
with investment

8. There have always only been two good outcomes for
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any idea
Knowing
NOT Knowing
Thinking it’s still a good idea but not knowing
Knowing

9. A better way to innovate
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If we know that we don’t have all the
answers, why are we surprised that we
22 September 2014
get things wrong?

10. Origin of the Lean Start-up
Recognition that existing businesses execute a business
model, while start-ups look for one!
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Start-ups were originally based on valuing
business plans
No customer
feedback built in
No confidence in
5 year view
BUSINESS
CASE

11. Innovation + ongoing validation = invest with confidence
Proceed with
confidence
Get Production, Sales &
Marketing involved
ROI justifiable
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22 September 2014
Pivot
Create Context
What should the
business look like?
Problem /
Solution Fit
Is there a problem
worth solving?
Product /
Market Fit
Do we have a solution
that people are
prepared to
pay for?
Scale
Proven market
product - invest in
growth!
Business model canvas
Research insights, analytics
UVP Canvas
Get out of the building
MVP
Develop the smallest
set of functions that you
can use to get feedback
from real people – early
adopters
1
2
3
4
MEASURE
Persevere

12. Create context: The Business Model Canvas
No customer
feedback built in
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UVP Canvas
UVP Canvas
UVP Canvas

13. The Unique Value Proposition Model
1 – 2: What is the problem
we’re solving, and is it a
problem worth solving?
No customer
feedback built in
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22 September 2014
3 – 4: Will the
market be willing
to pay for our
solution?
everything!
“Get out of
the building!”
Test

14. © BSG. All rights reserved.
HYPOTHESIS
How does this
align to our
business model
Focus
Is this worth
solving?
Let’s test
MVP
REFINE
EXECUTE
Will the market buy it?
Let’s build and test with
early adopters
Build the business!
Scale execution
Operations
Find partners
Product
Market fit
Sales and Marketing roadmap
What’s our
next great
idea?
How does the business
fit together?
1. Problem?
2. Solution?
3. Pay?
GREAT
IDEA
BAD
IDEA
UVP
STOP GUESSING!

15. MVP
Pivot or
persevere
Build /
Measure /
Learn
Customer
needs
Vanity
metrics
UVP
Failing is
good – as
long as we do
it quickly and
cheaply
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16. Checklist to create confidence
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Be prepared to fail and expect to do so!
Include customers in ALL steps
Arm yourself with enough research data to make a start
Then build the smallest thing you need to get real feedback
Use this to validate your ideas, and set direction in terms of
pivoting or persevering
22 September 2014
When you’ve validated Problem / Solution fit, and Product /
Market fit, then Scale with confidence!

17. Who is doing this already?
In a world of rapidly reducing barriers to entry, 1,000s of
start-ups that you haven’t heard of (yet) but who will
probably be your next competitors, very, very soon!
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18. References
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22 September 2014
The Business Model Generation by
Alex Osterwalder
‘Why the Lean Start-up changes
everything’
HBR article by Steve Blank
The Lean Startup by Eric Ries
Running Lean by Ash Maurya

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Laura Greaves
Business Development
+27 11 215 6666
laura.greaves@bsg.co.za
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2198
www.bsg.co.za // @bsgafrica
Laura Greaves
Business Development
+27 11 215 6666
laura.greaves@bsg.co.za
Triangle House
22 Riebeek Street
Cape Town
8001
www.bsg.co.za // @bsgafrica
David Reinhardt
Regional Delivery Manager
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david.reinhardt@bsguk.co.uk
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