Watch full webinar here: https://youtu.be/DifyiIN9E4M

1. //
Learning from Habitual Entrepreneurs
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2. PAGE 2
The cost to a customer of switching to
another provider is relatively low
The cost to a customer of switching to another
provider once they have signed up with us is
relatively high
The model is based on individual
transactions which must be re-purchased
each time
The model is based on a series of transactions
(such as subscriptions or long term contracts)
which are subject to renewal
The user interface for the model is pretty
much the same for all providers (for
instance, an ATM interface)
The user interface for the model is different for
different providers meaning it is easier for users
to learn one system and stick with it
The benefits provided by the model are
optional or discretionary
The benefits provided by the model are
required, specified in or mandatory
There are few network effects in this
business or we are a late mover
We have the potential to create positive
network externalities in this model
This model solves the customers’
problem once and for all
The customers’ problem is ongoing
The model is arms-length or
transactional
The model establishes some kind of relationship
The model has little impact on the
customers’ experience or the impact is
negative
The model involves changing the customer
experience significantly and the impact is
positive
The model operates on a standalone
basis
The model creates a platform others can use to
accomplish their goals
We create the offer The offer is to some extent co-created

3. //
Discovery Driven Growth and the Flops File
CargoLifter
Webvan
Revlon
Vital
Radiance
PAX tire
Microsoft
Kin Phone
Google
Radio
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4. //4
A very robust research finding
• Different disciplines are required for exploring
uncertain areas than you would use in a predictable
situation
• Assumption to Knowledge ratio
• Cost, not rate

5. //
Planning to learn at lowest
possible cost
• Define success before you start
• Impose market and competitive discipline
• Lay out clear operations specifications
• Articulate and document assumptions
• Plan to checkpoints
• Used for startups, corporate ventures, services businesses,
governments & NGO’s, IT projects, B2B businesses…anything with a
high assumption: knowledge ratio
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6. //
Uncertainty / Cost Profile over time
Range of
Uncertainties
(Risk)
Checkpoints
Investment
Profile
(Costs)
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Toolkit now available!
PAGE 7© 2017 Rita Gunther McGrath

8. If we don’t make
small amounts of
resources available
for
experimentation,
our ventures get
big before they get
smart.
@rgmcgrath