energize 2013 slides
DESCRIPTION
The 2013 Energize conference hosted by the Energy Commercialization Center, a DOE-supported center at the U of Utah. I get to do another primer on lean!TRANSCRIPT
LEAN Startups: a primer
Learn
Entrepreneurial
Agility
Now!
a little about me? Norris Krueger, PhD
recovering tech entrepreneur
PhD researcher in entrepreneurship
(entrep ecosystems & entrep learning)
global speaker (next up: Denmark, Cairo)
Total lean startup fanboy!
@entrep_thinking, LinkedIn, Facebook, G+
http://bit.ly/NKblog ; http://bit.ly/NKshortbio
the “Lean” movement
• … just a few key names:
• Eric Ries
• Steve Blank
• Dave McClure and other cool cats
• …BUT… Is this really that new?
• Isn’t this what smart entrepreneurs ALREADY do? How smart entrepreneurs ALREADY think?
• And how the best educators already work?
What is a “Startup”..really?
• A startup is simply the vehicle for figuring out a sustainable, repeatable, scalable business model
• This is no time for a business plan… takes very different planning (and thinking)
• Finding your Scalable Business Model:
– Test each critical assumption in your model
– Measure (qual & quant) ruthlessly
– “Pivot” quickly
– Iterate
A few quick thoughts… • “Lean” doesn’t mean cheap.. It means FAST • “Lean” could just as easily be called “Learn”!
WHEN to be Lean? • Extreme uncertainty • Significant ambiguity (Type III errors) • Startups – scalable startups • Social / Sustainable / BOTP • New Product Development
The Process
• from Steve Blank: The search (SBM) we can call “Customer Development”
• Implementing SBM = “Agile Development”
Minimize TOTAL time through the loop
Source: Eric Ries,
The Lean Startup
Build Measure Learn
• BUILD: Identify & Test
• Minimum Feature Set
• Minimum Viable Product (MVP)
• MEASURE:
• Find out what customers love… and especially hate (Kathy Sierra vs Dave McClure)
• LISTEN! (to your metrics & your customers)
• LEARN:
• Pivot quickly & decisively
• “Failing fast” is also a misnomer – “fail FORWARD” which means…
• Better your assumptions fail… than your biz
• Disrupts the “Inventor Mentality” -
forces attention on Value (benefits>>features)
• Build Test/Measure Learn (L,R,R)
Get Out of the *%^$#@ Building!
Venture formation starts with the search for a business model
What is a business model?
describes how an organization rationalizes the way it captures, creates, and delivers value
Why it is important?
Clarifies the makeup and interlacing of fundamental elements needed by any organization: customers, offer, infrastructure, and financial viability
How is it developed?
11 Source: Osterwalder & Pigneur, 2010
What’s a Business Model?
• Three key questions to answer – identify all key assumptions for each:
–1) Value Proposition
–2) Value Delivery
–3) Value Capture
(but how do we get started??)
www.businessmodelgeneration.com
Lean Startup Machine
23
Key Partners Key Activities Value Propositions
Customer Relationsihps
Key Resources Channels
Cost Structure Revenue Streams
Customer Segments
Online retail shopping
Fulfillment by Amazon
Amazon web services
Customized online profiles &
recommendations
Global consumers (NA, EU, Asia)
Developers & companies
Individuals and companies that need fulfillment
Logistics Partners
IT & S/W Dev. & Maintenance
IT infrastructure
Global fulfillment
infrastructure
Amazon.com
Affiliates
Affiliates
Marketing
Technology and content
Fulfillment
Source: Osterwald & Pigneur, 2010
Sales margins
Fulfillment handling fees
Web services
for more info…
The 'Lean' Gurus & Key Links:
• Eric Ries (@ericries,www.startuplessonslearned.com)
• Steve Blank (@sgblank, www.steveblank.com)
• Alex Osterwalder (@business_design)
•Trevor Owens (Lean Startup Machine)
GET STARTED HERE: www.slideshare.net/sblank/successful-entrepreneurship-1
www.StartupWeekend.org
• www.TechStars.org
• www.gewusa.org; www.unleashingideas.org
• www.ideatoproduct.org (Idea to Product)
• Utah Foundry
One exercise: Get Out of the *%^$#@ Building!
• Form pairs; • Group into sets of four pairs, numbered 1-4. • #1 is the Brilliant Entrepreneur • #2-#4 are Demanding Customers/Clients
• #1 specifies product/service then makes plausible
assumption in each canvas category then... • In turn, asks #2, #3, #4 separately for feedback –>
who give plausible but DISconfirming feedback
• #1 pivots • (can integrate with “SRI” model)
Making opportunities happen: Causation & Effectuation
27
M1
M2
M3
M4
M5
M1
M2 M3
M4
M5
Given Goal
Given Means
Given Means
Imagined Ends
Source: Sarasvaty et al. 2005; Read et. Al 2010;
Causation Logic Effectual Logic
- Selecting between a given set of means to achieve a pre-determined goal
- Presumes a market’s existence and ample resource and process availability
- Begin with the end in mind & generate alternatives
- Imagining new possible ends using an existing set of means
- No assumptions about a market’s existence
- Starts with entrepreneur’s own knowledge, resources, networks, affordable loss, and goes from there