Bora Özkent

NEW VENTURE DEVELOPMENT/DAY-6

New Venture Development, Bora Özkent 2014

2

WHAT HAVE YOU LEARNED FROM THE READING ASSIGNMENTS?

Revenue Models

Commerce and Retail• Selling physical goods• Selling digital products• A service sold per unit• A service with fixed price• Sale of services for

future use• Daily deals / flash salesAdvertising• Advertisements• Promoted content• Sponsorships

New Venture Development, Bora Özkent 2014 3

Subscription and Usage• Subscriptions• Usage fees• RentalLicencing• License of usage• CertificationsAuctions • Auctions• Dynamic Pricing

Revenue Models

Data and Software• Databases• IoT Data• SaaSTransactions / Intermediation• Brokerage• Transaction enablers• Affiliate Programs• Creating a platform /

marketplace

New Venture Development, Bora Özkent 2014 4

Fremium• Free hardware for other

products• Paid version without

advertisements• Paid version without

restrictions• Paid version with

additional features

Further Reading for Revenue Models

http://www.boardofinnovation.com/business-revenue-model-examples

/

http://businessmodelgallery.com/

New Venture Development, Bora Özkent 2014 9

Jibo Case Study

• Jibo tested demand in Indiegogo through crowdfunding. What are the potential advantages and disadvantages of this approach? Would you pursue the same path for your venture? Why, why not?

• Should Jibo pursue a platform strategy at launch, or should the company build the initial applications themselves and evolve into a platform strategy in time?

• When it comes time to develop a platform strategy, should Jibo take top-down approach (with strategic partners), a bottom-up (developler driven) approach, or a combination of the two?

• If you were hired as head of strategy and in the room with Breazeal, Chambers, and Smith, what execution plan would you recommend to attract developer investment in a platform that will not be shipping for over a year?

13

14

Estimate the Market Size

Total Addressable Market: Total market demand for a product or service. (e.g. All Smartphone users)

Served Available Market: Segment of the TAM targeted by your products and services which is within your geographical reach. (e..: Turkish speaking users)

Target Market: Portion of SAM that you can capture. (e.g. Fenerbahçe fans)

15

16

Homework For Next Session

• Read Running Lean– Chapter 10: Get Ready to Measure– Chapter 11: The MVP interview

• Estimate market size for your project (TAM, SAM and TM) – Additional Reading: (https://www.thebusinessplanshop.com/blog/en/entry/tam_sam_som)

• Design and launch your first MVP’s, determine what you are going to measure, what you want to learn.

• Start getting customer feedback with MVP’s through interviews or measurements. Perform 15-20 solution/MVP interviews.

• Prepare Version 3 of Business model Canvas. Prepare and deliver a presentation including:– Lean Canvas versions 1-2-3 and changes among them.– Your MVP and what you have learned from it.– KPI’s and traction (if any).– TAM, SAM, TM

What Dou You Learn From Wikispeed

• Prepare for Case Study as a Group (Due Saturday)– Team Wikispeed: Developing hardware the software way (Questions are at the

following page, written report of 1 page, 12 font must be delivered in the class)– Please add a cover with all team member photos and names

• Case Study Questions:– “Quick & Dirty” or “Proper Engineering”? When? Why?– Why do you think people join Wikispeed? How did Joe manage to get

followers, and what strategies did he use to make this happen?– What are the key organizational principles by which team Wikispeed is

organized and which have driven its speedy development? – How does the Wikispeed approach to product development differ from the

more traditional waterfall process?– Do you think large organizations should adapt their product development

processes to Wikispeed methods? Why, why not?– What Dou You Learn From Wikispeed That You Can Implement;

• As an “to be” entrepreneur?• As a “to be” professional in corporate world 17

18

• According to research, %95 of all radical innovations since WW2 have been done by startups rather than big companies.

• Based on what we have learned about the Lean Startup Methodology so far;

1. If you were a business consultant, what kind of recommendations would you give to a big company CEO for improving his/her organization’s’ radical innovation performance. (Max 100 Words)

2. If you decide to pursue a professional career instead of founding a startup, how will you use the lean startup methodology and what benefits do expect from using it? (Max 100 Words)