Session 1: Class Overview, Mission Model, Customer Development
Tom Byers, Pete Newell, Joe Felter, Steve Blank
Agenda
• Teaching Team Introduction• Course Objectives• Class Logistics• Teaching Style• Lecture: Mission Models/Customer Development• Team Presentations
Teaching Team
Steve Blank
8 startups in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence
Teach: Stanford, Berkeley, Columbia, NYU, UCSF, ImperialDetails at www.steveblank.com
INSTRUCTORS
Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry
8 startups - 32 years in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence
Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com
• Professor, MS&E and Endowed Chair in Entrepreneurship, School of Engineering
• Faculty Director and Founder, STVP• Executive VP and General Manager of Symantec
during its formation• Lead Author of McGraw-Hill Textbook:
Technology Ventures: From Idea to Enterprise
Details: http://www.stanford.edu/~tbyers
INSTRUCTORS
Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry
8 startups - 32 years in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence
Teach: Stanford, Berkeley, Columbia Details at www.steveblank.com
• To be completed • Colonel, US Army Special Forces (Retired)
• Appointments with CISAC, Hoover and MS&E at Stanford
• Commanded the Counterinsurgency Advisory and Assistance Team (CAAT) in Afghanistan
• Helped establish and directed the Combating Terrorism Center (CTC) at West Point
INSTRUCTORS
Steve Blank, Tom Byers, Joe Felter, Pete Newell, Bill Perry
8 startups - 32 years in Silicon Valley• Semiconductors• Supercomputers• Consumer electronics• Video games• Enterprise software• Military intelligence
Teach: Stanford, Berkeley, ColumbiaDetails at www.steveblank.com
• 6 startups in Silicon Valley• Online Travel (2)• Online Health• Big Data Analytics (2)• Entrepreneurship Analytics• Active Angel Investor (>40 Investments)• VC – CMEA Capital
• …• 30+ years in SV• Founding Exec Director
of the Lester Center• VC – Monitor Ventures• Founder and Angel
Investor• Software and devices• Internet services• Life Sciences
• Teaching at Haas for 22 years
• On boards of 5 companies
INSTRUCTORS
• Army Colonel (retired)
• Visiting Research Scholar, National Defense University
• Former Infantry Brigade Commander & former Director, U.S. Army Rapid Equipping Force
TAs: Kim Chang, John Deniston, Ben Kohlmann
• F/A-18 pilot• Speechwriter for Cmdr, US
Fleet Forces• Member Naval Warfare
Development Command's Rapid Innovation Cell
• Co-Founder of the Defense Entrepreneurs Forum
• seven years Air Force officer leading analysis in national intel agencies, special ops, and drone missions
• deployed multiple times in Afghanistan embedded with an Army Special Operations team
• Design Engineer at Boeing (777 Fuselage)
• Engineering Project Mgmt & Global Supply Mgmt at Apple & Nest
• DFJ Entrepreneurial Leadership Fellow, 2015-16
TAs: Chris DiOrio, Konstantine Buhler
• Prospective submarine officer in the U.S. Navy
• Interned with NASA, MIT Lincoln Laboratory, and NSA
• National Security Scholar at CISAC
• Founded a disaster preparedness organization for seven years, working closely with gov’t agencies
• Partnered with Dept of Homeland Security
• Worked on software tools for US gov’t and security initiatives at Stanford
Bill Perry - Course Advisor
• Michael and Barbara Berberian Professor (emeritus)
• Senior fellow at the Freeman Spogli Institute and the Hoover Institution, and Director of the Preventive Defense Project
• Former Secretary of Defense
H4D Military Liaison Officers
Colonel John Cogbill US Army
Commander Todd CimicataUS Navy
LTC Ryan BlakeUS Air Force
LTC Scott MaytanUS Air Force
LTC Ed SumangilUS Air Force
LTC Steve BehmerUS Air Force
Captain Chris ConleyUS Coast Guard
LTC Mark MickeUS Marine Corps
Colonel John ChuUS Army
Sponsors, Mentors, Advisors and Liaisons
Each team has a:• DOD/IC problem sponsor• Industry technical mentor• Additional advisors• Stanford military liaison• Support from DIUx
Sponsors, Mentors, Advisors and Liaisons
Each team has a:• DOD/IC problem sponsor• Industry technical mentor• Additional advisors• Stanford military liaison• Support from DIUx
Sponsor
• Your primary contact in the DOD/IC• They own the problem definition• They are the gateway for customer discovery • You connect with them as needed (at least weekly)
– Refine MVPs– Expand Beneficiary contacts
Mentor
• They are part of your team– They have committed to spend at least an hour/week
• Your local industry support person• You connect with them at least weekly• If it is not working out let us know ASAP
Advisors
• Industry support person– Booz Allen, Leidos, etc.
• They are part of the class– But they are not your mentor– They have committed to respond to emails/calls
• You may connect with them as needed
Military Liasons
• Miltary personnel at school at Stanford• Local resource for understanding
– Customers– Stakeholders– Problems
• Another source for Customer Discovery• Back door interface with military
Primary MentorsTeam Mentor
Narrative Mind Brian Fishman (Facebook)
Guardian Peter Blake (SkyCatch)
Fishreel Dr Dan Boneh (Stanford Security Lab)
Capella Dan Berkenstock (Google)
Aqualink TBD
Sentinel TBD (Palantir)
Skynet TBD
Live Tactical Threat Toolkit TBD (Oculus)
Course Logistics
MS&E 297Hacking For Defense
Week Team Presentation Lecture TopicMarch 29th Mission Model Canvas Lecture 1 Mission Model, Cust Development,
BeneficiariesApril 4th Workshop Working with the DOD/IC, Discovery in DOD/IC
What’s a Minimal Viable ProductApril 5th Beneficiaries Lecture 2 Value PropositionApril 12th Value Proposition Lecture 3 Product/Market FitApril 19th Product/Market Fit Lecture 4 DeploymentApril 26th Deployment Lecture 5 Buy-in & SupportMay 3rd Buy-in & Support Lecture 6 Mission AchievementMay 10th Mission Achievement Lecture 7 Activities and ResourcesMay 17th Activities & Resources Lecture 8 Partners and Mission CostsMay 24th Partners and Mission
Costs, Draft of Final LLPLecture 9 Reflections
May 31st Lessons Learned
Schedule
Course Readings - Weekly
Check the SyllabusEvery Week
Course Readings – Lectures Online
Lectures online
• All students must watch lectures weekly • Class will be lecture discussion with cold calling
Weekly Team Deliverables• Lessons Learned presentation 8 minutes
– Summary of your “outside the building” progress– MVP update, demo of major changes – Results of hypothesis testing– Update mission model canvas– Update your blog
Course Objectives
MS&E 297Hacking For Defense
What’s The Class About?• Teaches Lean Startup Theory + hands-on practice• You will learn:
– How the DOD/Intelligence community works – Urgency, Evidence-based entrepreneurship, Customer
Development, “good-enough” decision making• You will do so by talking to10 ”beneficiaries” e.g. DoD/IC
end users/stake holders a week and present your results in class weekly
Course Objective: Simulate A Startup
• Create startup pressures, uncertainty, and challenges– Our expectations are unreasonable, they require extraordinary effort– We expect failures, iterations and Pivots– Class is a “lab” - books/lectures are tools, not answers– Fail fast, learn quick, push you outside your comfort zone– We are relentlessly direct
The Lean Methodology
Part 1
Agile Engineering
+Part 2
Part 3
Elements of Lean Startup
1. Frame Hypotheses
• Frame Hypotheses
1. Frame Hypotheses
• Frame Hypotheses Mission Model Canvas
Mission Model Canvas = hypotheses of how you create and deliver value for the
DOD/IC and the warfighter
Part 1
Source: Alexander Osterwalder- Business Model Generation
Beneficiaries
Deployment
Buy-in/Support
Mission Achievement
Value Proposition
Activities
Resources
Partners
Costs
Mission Model Canvas
Source: Alexander Osterwalder- Business Model Generation
Beneficiaries
Deployment
Buy-in/Support
Mission Achievement
Value Proposition
Activities
Resources
Partners
Costs
how does the team get “Buy-In” from all the beneficiaries?
How will we deploy the product to widespread use? What constitutes a successful deployment?
Who are our most important customers? Stakeholders?
What are their pains/gains?
What job do they want us to get done for them>
How are we solving each customers pains/gains?
How?
What product/service features match their needs?
What key activities do we need to be expert in?
What key resources do we need to own or acquire? Financial? Human?
Who are our key partners? Suppliers?
What are we getting from them?Giving them?
What is the Mission Budget/Cost? How will we measure Mission Achievement?
2. Test Hypotheses
• Frame Hypotheses• Test Hypotheses
Business Model Customer Development
Customer Development is how you search for the model
9 Guesses
Guess Guess
GuessGuess
GuessGuess
Guess
GuessGuess
Customers
Channel
Customer Relationships
Revenue Model
Source: Alexander Osterwalder- Business Model Generation
Customer Development is Hypothesis Testing
3. Build Incrementally & Iteratively
• Frame Hypotheses• Test Hypotheses• Build the product
incrementally & Iteratively
Business Model Customer DevelopmentAgile Engineering
The Minimum Viable Product (MVP)
• Smallest feature set that gets you the most … - learning, feedback, failure, orders, … - incremental and iterative
• It is not a prototype • It is not a deployable version with the fewest features• It is what enables a test of a hypothesis • It may be a drawing, a slide, a wireframe, clickable
workflow, etc…
The Pivot
• Definition: A substantive change to one or more of the business model canvas components
• Iteration without crisis
• Fast, agile and opportunistic
Getting Out of The Building• You can’t pass by attending the lectures• This class is not about our lectures• You can’t cram this work• The class is about the work you do outside the building
talking to beneficiaries
Issues You’ll Encounter
• Product/Market Fit – If assumptions are failing - pivot by week 4
• Team Issues– Someone not working hard enough
• address it head on – Team members are not your friends, they are your partners - look
for ways to work it through • If you need help, ask
– CA’s, instructors, mentors, advisors are here to help
The Goal is Not to build a Cool Demo
We are Not an Incubator
We are Not an Incubator
Mentors/Advisors are Not Allowed to Talk to You about Jobs, Funding,
Until Class is Over
If You’re Not Getting Thrown Out You’re Not Trying Hard Enough
Catfishing team now holds the record
Care Personally
ChallengeDirectly
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Overly Polite
Don’t Care
“Relentlessly Direct” Teaching
Manipulative Insincerity
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Overly Polite
Don’t Care
Manipulative Insincerity
Ruinous Empathy
Care Personally
ChallengeDirectly
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Overly Polite
Don’t Care
Manipulative Insincerity
Ruinous Empathy
Care Personally
ChallengeDirectly
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Overly Polite
Don’t Care
Obnoxious Aggression
Manipulative Insincerity
Ruinous Empathy
Care Personally
ChallengeDirectly
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Overly Polite
Don’t Care
Obnoxious Aggression
Relentlessly Direct
Manipulative Insincerity
Ruinous Empathy
Care Personally
ChallengeDirectly
Derived from Radical Candor — The Surprising Secret to Being a Good Boss
Obnoxious Aggression
Relentlessly Direct