1 Lean LaunchPad e@UBC Q3 2013 Paul Cubbon Blair Simonite.

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Lean LaunchPade@UBC

Q3 2013

Paul Cubbon

Blair Simonite

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The e@ubc team

Paul [email protected]

Blair [email protected]

Andy TalbotSean Lumb

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Course Introduction• Customer discovery and b-model

design• Course objectives• How the class works

– Blogs, backchannel• The Contract

– Instructors– Mentors– teams

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Steve Blank’s “Customer Development” 2006

• Problem: Startups fail from lack of customers, not lack of product

• Solution: Develop Customers and Products together

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Company

Building

Customer Development

CustomerDiscovery

Customer Development is as important as Product Development

Concept/Bus. Plan

Product Dev.

Alpha/Beta Test

Launch/1st Ship

Product Development

CustomerValidation

Customer

Creation

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Steve Blank 2012

A startup is not a small version of a large company.

A startup is a temporary organization in search of a

scalable, repeatable, profitable business model.

Startup Owners Manual

Search vs. Execution

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This course is all aboutthe Search

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Objectives• Learn how to organize & execute sales,

marketing and business development in your search for a viable business model for your product

• Learn relevant “people skills”– Listening, inquiry, presenting, mindset– Entrepreneurship is about people as much as

product• Have fun along the way

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Principles• Hypothesize & test your value proposition,

customer segments, revenue model...• Get out of the building and talk to

customers. • Fail early, pivot fast!

Our focus is on customers and the market, not the technology or product.

Process

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Technology Ventures: From Idea to OpportunityChapter 7: Figure 7.3

Resources Financial Physical Intellectual

Deal Reward, Risks Incentives Ownership Harvest

People The Team Capabilities Attitude Reputation

Opportunity Customers Strategy Business Model

The Business

Plan

The Biz Plan

The Business Model Canvas

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Keep Track of Iterations

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Week nWeek n

Week 1Week 1

Week 2Week 2

test

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Hypotheses

Guess GuessGuess Guess Guess

GuessGuess

Guess Guess

Markets & Customers

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Technology adoption curve

Techies:Just try it!

Pragmatists:Stick with the herd!

Conservatives:Stick with what’s proven!

Skeptics:Just say No!

Visionaries:Get ahead of the herd!

Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”

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New Market “Chasm”

Ch

asm

EarlyAdopters

Pragmatists Conservatives

Laggards

Copyright © Geoffrey A. Moore, 2005, from the book “DEALING WITH DARWIN”

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? Instant Success ?

In 4th year after launch.

( ie 6 years )

This is as fast as it gets.

NB. Apple's fiscal year ends in September. This means that Q1 includes the holiday season, which accounts for jumps in the data. Fiscal Q1 is Oct - Dec of previous year. So Q1 of 2008 is Oct - Dec of 2007, Q2 of 2008 is Jan - Mar of 2008 and so on.

http://en.wikipedia.org/wiki/File:Ipod_sales_per_quarter.svg

The Process

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It’s The Scientific Process

• Hypothesis• Develop Test• Observe• Analyze Results

• Revise Hypothesis• Do it again

( many times … Quickly )

• Apply to Customers

• Product / Market Fit is what you are looking for.• Is not obvious

Search vs. Execution

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Execution Looks Like This

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Bill Buxton, “Sketching User Experience”

Search Looks Like This

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Expect multiple iterations

http://blog.startupcompass.co/what-the-fortune-1000-can-learn-from-the-star

Model – Knowledge Funnel“What Do You Know”

Roger Martin’s Knowledge Funnel Mystery Heuristic Algorithm

! Very Useful for our class !

You start in the Mystery Zone

( the guesses )

Success is getting it to “Heuristic zone”

(what are the “rules-of-thumb”)

Grand Slam is getting it to the “Algorithm” zone

(repeatable, scalable, profitable)

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Source: Design of Business, Roger Martin

YOU ARE HERE

Summary

The 8 weeks

• In Class– Paul/Blair Presentations

• Process, Theory, Personal Skills– Every class: teams do project update

presentations• TAM/SAM, Canvas, Experiments, #Calls

• In Between Classes– “You” Get Out of the Building– “You” Blog Your Progress– “We” monitor & comment on blogs

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How the Class Works

Break

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