fast prototypes and customer development for start ups
DESCRIPTION
Fast prototypes and customer development for start ups presentationTRANSCRIPT
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Back ground • B.S Electronics and Communication
Engineering
• Master in ICT entrepreneurship ,
• SSES Alumni
• PhD Candidate at Indek KTH
• Previously Java Developer
• Now business developer for Virtway.com and
icyou.se
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This presentation
• Not about a specific business idea
• About business processes
• About prototypes
• It is pretty long
• Feel free to fall asleep, interrupt or leave
• I hope you know all this already.
• If not, I really think it can give you a lot
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Startup process
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Development process
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Waterfall is drying
• Agile Agile Agile Agile Agile
• Scrum
• XP extreme programming
• Kanban
• Continous Integration/Deployment
• Developers hate Waterfall like mad!
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What is Agile?
• It works when
requirements change
• And requirements
change
Why Agile?
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Add agile to process
What is wrong with
this picture?
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Everything except
agile • Old style startup model must DIE!
• I will dance on it’s grave!
• Because it sucks!
• Because where is the customer?
• Because things change!
• Market risk! Need to adapt!
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Lets get serious • A lot of startups fails
• It affects your relationships
• It absorbs your life
• It can make old friends be enemies
• It is your life. Don’t let business coaches
or experts run your life.
• It is not fun to fail. It is also your
coworkers and familys problem. Lets
avoid that, then running a startup can be
fun and meaningful.
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Why should I listen to you?
• Do not listen me!
IT IS YOUR RESPONSIBILITY TO
QUESTION ALL ASSUMPTIONS. MINE,
YOURS, EXPERTS.
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Are you a God?
• I can predict what my customers
want
• I can predict a 5-year financial plan
• I can predict what customers will like
• I can manage this process
• I know the risks, the opportunities
• I will never give up
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Are you a mortal • I have a hunch about what customers want
• I think it can make money
• I will measure and discuss with customers
• Lets use the scientific method. Measure!
• Test assumptions, test on users, be
scientific.
• If I find problems, I can change things. Why not use the scientific process to develop business
ideas? A business idea is a set of testable hypotheses.
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Some are actually
Gods?
• mystery company
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Twttr has married Short Code Messaging, SMS
with a way to create social groups. By sending a
text message to a short code (for TWTTR) you
can send your location information, your mood
information or whatever and share it with people
who are on your social-mob! Best part – no
installation necessary! NOTE: They have done a PIVOT. Changed
idea, but not completely. Rhetoric question: What use was the prediction about
the SMS market they probably had in the business
plan?
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"Wave has not seen the user adoption we
would have liked," Senior Vice President Urs
Holzle said in the blog post. "We don't plan to
continue developing Wave as a standalone
product, but we will maintain the site, at least
through the end of the year, and extend the
technology for use in other Google projects.
NOTE: They are doing a PIVOT,
reusing the technology in a new way.
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Mystery company When we think of design, we think of this company
Rhetoric question:
Was their core value
firmly set in their
original business
plan?
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Don’t burn your business plan
• Just don’t make a new one
• Thinking through the business is good
• But I think you can think through your business
in faster and better ways.
• Do a powerpoint instead (Guy Kawasaki).
• Business Model Canvas – another
presentation
• KEY POINT: CHANGE is the norm.
• KEY POINT: You have a vague idea what
CUSTOMERS will want.
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Customer
Development • One line summary: Test your
assumptions
• Get out of the building
• Formulate hypotheses and test them
• Do Minimum Viable Products (MVP:s)
• Pivot. Change aspects of business as
you go The Four Steps to the Epiphany: Successful
Strategies for Products that Win
Steven Gary Blank
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• Disclaimer: I did not actually read the
Four Steps to the Epiphany when I
prepared presentation.
• However, I have read the “cheat sheet”
• And I have read blogs and so on...
• I simply started with the “prototype”
book. Then, I bought the “Full” book.
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Lean Startup
• Eric Ries. He has failed, he has succeeded.
• Lean Startup = Customer Development +
Agile
http://www.startuplessonslearned.com/
Search for Eric Ries on YouTube! Great 1h talk!
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Cust Dev +
Prototypes • Consumer Development = business prototypes
• Lean startup = Cust dev + Agile
• Lean startup is great. But requires that you have
IT-guys in team
• Our? idea = Cust Dev + Prototypes
• Might work better when you don’t have an IT-
team or do not want to waste your resources!
• Complements agile
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Some kinds of prototypes
• Mockups/line drawings. Show ideas.
• Paper prototypes. Test interaction on
users.
• Landingpages. Great way to test business
idea!
• Working prototype. Testable IT that works
as a specification.
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Mockup • Line drawing to show how system looks
• Computer aided, such as Balsamiq
Mockups
• Or use pen and paper
• Get your ideas down!
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Paper-prototypes
• Users try system, talk out loud
• Test interaction
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Test: Landingpage
• You find discover a new electric-engine that
can be installed in old cars. By concentrating
on a few Swedish bestsellers such as Volvo
V70 and Saab9-5, you think you can make a
business out of this.
• Make a single webpage explaining the idea.
• It has two buttons “Pre-order for V70”, and
“Pre-order Saab9-5”.
• Buy Ad-words for “electric car“ showing ads
“Adapt Saab9-5 to electric power”
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Landingpage • Measure how many visit the landing-
page
• Measure how many click the “Pre-order”
buttons (and get their contact details)
• Just explain to viewers politely you have not
started yet but will get back to them.
• Before committing to anything, you can verify if
people are interested and if they are on the
way to actually buy for the price you show.
• Do A/B tests of messages, see what works.
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Results: Landingpage
• Sorry, thousands view the page but no one
buys.
• You have just saved a lot of trouble.
• But, you discover a lot of visitors from a blog
from old Rolls-Royce enthusiasts.
• PIVOT: A lot of people wants to cruise with old
classics and want to be eco-friendly and these
cars really suck gas. And they can afford the
conversion. Your market is now high-margin and
European, maybe global.
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Working prototypes
• Looks / behaves like a real program
• But the aim is to make it fast to explain
• A prototype explains better than a
specification
• A prototype can be used to test on users
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Prototype vs Agile
• Agile = building gradually. Quality.
• Prototype = max shortcuts
• No database needed, no security/scalability
• Free to use a completely other
language/tools.
• Optimize shortcuts, quality is secondary
• The anti-thesis of what programmers usually
do. Few take pride in doing shit.
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Why prototypes?
• Demo, try, get feedback, think through
• Show to customers
• Show to investors
• A much better specification. Same cost?
• Can be combined with Agile
• Makes outsourcing possible
• Make mistakes early
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Mock Up: Twitter
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Example- Stix.to
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Prototype Example- Stix.to
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Prototype Example- Stix.to
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Prototype Example- Stix.to
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Prototype Example- Stix.to
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Now, may we ask
some questions?
• Was it too ugly? drawings, videos etc.
• Too long?
• Easy or difficult to follow?
• Anything to remove/add?
• Other comments?
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This presentation is
also a prototype • Try message/slides. Get feedback !!!
• MVP (Minimum Viable Product)
• The slides can be given to graphic
designers
• Even outsourced
• Would you give a specification to
designers? 1. Picture of trad biz process
2. Picture of waterfall
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Second slide.
Waterfall.
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• Thank to CEO of Stix.to -
• Try out? : http://stix.to/
• Tool for bloggers and people that like to
share opinions in a layer over the
internet. Do you know anyone that
wants to try?
• Twitter: @hankhero