lean for sharing ventures: four times harder, four times more rewarding, ted ladd, hult...
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Ted Ladd PhDProfessor of Entrepreneurship San Francisco | Boston | New York | Ashridge | London | Dubai | Shanghai
Leveraging Leanin the Sharing
Economy
Sharing venture:1. an online platform 2. between two sides of a
transaction 3. that reduces coordination
costs 4. to provide access without
ownership.
ChallengeSharing ventures are 4x harder to design1. Business Model for Suppliers2. Business Model for Demanders3. Same Place4. Same Time• Why?
Network Effect• Value for each user ≈ # of users• Bigger = Better• Economies of scale of demand
Problem: Theory is incomplete• # of users ≠ value for each user• Value = volume x diversity• Example: Smartwatch apps• Where to look?
Sales Cycle
Diversity
Volume
1: Diversify acquisition channels• Keep old Canvases• Evaluate sub-optimal channels– For non-overlapping appeal
• Rotate channels for diversity of value
• Example: Hooves.dk• When?
First Mover Advantage• Typically, a myth – Second Mover Advantage, Fast Followers
• Network Effect Winner Takes All– Explosive growth after tipping point– First Mover is real!
• Renewed attention on Early Adopters– To drive indirect network effect
Adoption Cycle
Area under curve = installed baseMoore, G. (2002) Crossing the chasm: Marketing and selling disruptive products to mainstream customers
Venture maturity
# of
cus
tom
ers
(Poor) Options for Early Adopters
• Spend on marketing– Increases early costs
• Lower prices– Reduces early revenue
• Arrive with deep pockets– Expensive capital
• Build Measure Learn (Experiment)– Shows biz model to competitors– Jeopardizes early reputation
2: Formalize Customer Discovery• Data for Hypothesis Testing• Conversations as Warm Sales
Leads• Track, revisit, encourage,
persuade• Explore and exploit for
ambidexterity
Leverage Lean for Sharing• Network effect promotes Early
Adopters1. Rotate channels for diversity of
demand2. Dual use for Customer
Related Research from Ted Ladd• Limits of Lean
– Harvard Business Review (2016)• Customer Interaction and Experimentation
– Academy of Management conference (2015)• Social Venture Canvas
– Stanford Social Innovation Review (Spring 2015)– International Journal of Entrepreneurship & Innovation
(Feb 2017)• Customer Development and Effectuation
– Management Teaching Review (March 2016)• Impact of Lean on Risk Aversion
– Drafting