business 101.1 class 4
TRANSCRIPT
Business 101.1A class in business. And entrepreneurship.
Fall 2016NYU ITP
October 3, 2016
Josh KnowlesJen van der Meer
Extra love from Tom IgoeAnd the Leslie E-Lab
Syllabus Map
START + Form
Teams
Business Models
Customer Development
How to Interview Value
+ The Purpose of Business
ValuesMotivation
TeamCustomer
Relationships+ Channels
AnalyticsKey Resources
Activities Partners Biggest Vision
Analyze Test
The Money
Plan MVP
Turning Insights Into
Features
More MVP
How small, How big?
Launch MVP
Lessons Learned
Go/No Go?
Sketch Paper Prototype
Oz Test
Smallest MVP
Tech Architecture
The center of a business model: value proposition
Versions of the truth:
Value Prop in Practice
Crossing the Chasm
The Value prop Canvas (osterwalder)
Value+ The Purpose
of Business
Smallest MVP
TEAMS
FragrancesYu Shi
Joy (Eun Jee Kim) Igor Carrasco
Fashion SocentSoy (Soyeon Chung)
Peter Winne Asad Lilani Lin Yang
Prisons Social Community for
DesignersDhruv
Daniel Silber Baker Molly O’Shea Isobel Donjon
Predictive Social Listening
Tattoo Artist MatchingFernanda
Eric Ramirez Javiera Valle Toro
Fashion 3 DAngie Aguilar
Olivia
Ergonomic Design Ashley Williams
Yan Max Theony
Malcolm Pittman
VALUE PROPOSITION
CREATED BY: CREATED FOR: VERSION:
Customer Segments
Customer Relationships
Value PropositionKey ActivitiesPartners
Key Resources
Customer Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
HOW WILL YOUR BUSINESS WORK?
Whom do you help?
What pains do you solve?
What do you
uniquely offer?
Distinct segmentsWhere do
we reach them?
How do we get keep
and grow?
How will you
charge?
What will it cost?
What do you need to have?
How do you do it?
Who will help you?
CREATED BY: CREATED FOR: VERSION:
Customer Segments
Customer Relationships
Value PropositionKey ActivitiesPartners
Key Resources
Customer Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
GET TO VALUE PROPOSITION FIT
CREATED BY: CREATED FOR: VERSION:
Customer Segments
Customer Relationships
Value PropositionKey ActivitiesPartners
Key Resources
Customer Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
AND THE REST OF THE BUSINESS MODEL WILL FOLLOW
Gain Creators
Pain Relievers Pains
Gains
Products& Services
CustomerJob(s)
Value Proposition Customer Segment
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
WHAT IS A BUSINESS MODEL FOR?
DEFINE
WHAT IS A VALUE PROPOSITION
VALUE PROPOSITION VS. VALUE PROPOSITION
BRANDING VS. INNOVATION
THE VALUE PROP SCHOOLS
THE VALUE PROP CONFUSION
VALUE PROPOSITION VALUE PROPOSITION
PAIN POINTSBRAND PILLARS
JOBS TO BE DONEREASONS TO BELIEVE
PAIN RELIEVERS
DIFFERENTIATION
ORIGIN: CHRISTENSENORIGIN:
VALUE PROP CANVAS
STRATEGY, MAD AVE INNOVATION THEORY
UNIQUE SELLING PROPS
THE PROBLEM
FACTORY VIEW OF VALUE CREATION
R&DThis is where design and brand types got to play
This was typically very engineering /science heavy
NPD
“The social responsibility of corporations is to increase profits.”
Milton Friedman, 1970
SHAREHOLDER VIEW OF COMPANIES
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
Disruption Theory - Christensen Innovator’s Solution
THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
“Excuse me, but could you please tell me what job you were needing to get done for yourself when you came here to hire that milkshake?”
THE SOLUTION SOLUTION
INNOVATORS VIEW OF VALUE CREATION
Job-defined markets are generally much larger than product category–defined markets.
Marketers who are stuck in the mental trap that equates market size with product categories don’t understand who they are competing against from the customer’s point of view.
Clayton Christensen, Innovator’s Solution
MILKSHAKE INSIGHTS
The .. mistake was to adopt a narrow view of the type of food people have always eaten in the morning, as if all habits were deeply rooted traditions instead of accumulated accidents.
Neither the shake itself nor the history of breakfast mattered as much as customers needing food to do a nontraditional job – serve as sustenance and amusement for their morning commute – for which they hired the milkshake.
Clay Shirky, Cognitive Surplus
MORE MILKSHAKE MUSINGS
https://www.youtube.com/watch?v=suRDUFpsHus
KODAK CAROUSEL ON MAD MEN
VALIDATION + GENERATION
Be playful with your value proposition, human-centered,
focused on whom you are here to serve
Jen van der Meer
VALIDATION + GENERATION
LET’S PLAY
Pick a company:
Uber Airbnb Warby Other???
VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developingcompany name defined offering
to help
Why we’re better:
to solvetarget customer segment defined problem or pain
our differentiation
Why we’re believable:our proof point, secret sauce
NOW YOU
VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developingcompany name defined offering
to help
Why we’re better:
to solvetarget customer segment defined problem or pain
our differentiation
Why we’re believable:our proof point, secret sauce
PAIN TIME
WHY DOES PAIN MATTER IN STARTUPS?
WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators2.5%
Early Adopters13.5%
Early Majority34%
Late Majority34%
Laggards16%
Geoffrey Moore: Crossing the Chasm.
At the start focus here
WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators2.5%
Early Adopters13.5%
Early Majority34%
Late Majority34%
Laggards16%
Geoffrey Moore: Crossing the Chasm.
The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority).
You do this by reducing the risks that the pragmatists are unwilling to take on
WHY DOES PAIN MATTER IN STARTUPS?
QUIZ: WHERE SHOULD YOU FOCUS AND WHY?
Innovators2.5%
Early Adopters13.5%
Early Majority34%
Late Majority34%
Laggards16%
QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?
WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP
Innovators2.5%
Early Adopters13.5%
Early Majority34%
Late Majority34%
Laggards16%
Geoffrey Moore: Crossing the Chasm.
WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP + GUARD RAILS
Agile Development
Customer Discovery
Have we identified a customer segment with a clearly defined, known pain point?
Does out offer and experience deliver a solution to our customer’s problem?
Solution
Problem
Gain Creators
Pain Relievers Pains
Gains
Products& Services
CustomerJob(s)
Value Proposition Customer Segment
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
FINAL Q TODAY
DOES THE CURRENT WAY WE MAKE NEW COMPANIES CHALLENGE THE SHAREHOLDER-ENTERIC VIEW OF THE PURPOSE OF A COMPANY?
LE FIN
CONTACT:
Jen or Josh for Office Hours