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Energize 2013 slides

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Norris Krueger
Norris Krueger

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!

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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!  Norris.krueger@gmail.com @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 *%^$#@ Building!
Venture formation starts with the search for a business model What is a business model? describes how an organization rationalizes the way it captures, creates, and delivers value Why it is important? Clarifies the makeup and interlacing of fundamental elements needed by any organization: customers, offer, infrastructure, and financial viability How is it developed? 11 Source: Osterwalder & Pigneur, 2010
What’s a Business Model? • Three key questions to answer – identify all key assumptions for each: – 1) Value Proposition – 2) Value Delivery – 3) Value Capture (but how do we get started??)
www.businessmodelgeneration.com
Lean Startup Machine
23
Key Partners Key Activities Value Customer Customer Propositions Relationsihps Segments Logistics Online retail Customized online Global consumers Partners shopping profiles & (NA, EU, Asia) IT & S/W Dev. & recommendations Maintenance Fulfillment by Affiliates Amazon Developers & Key Resources companies Channels IT infrastructure Amazon web Amazon.com services Individuals and companies that Affiliates need fulfillment Global fulfillment infrastructure Cost Structure Revenue Streams Sales margins Marketing Fulfillment Technology and handling fees content Web services Fulfillment Source: Osterwald & Pigneur, 2010
for more info… The 'Lean' Gurus & Key Links: • Eric Ries (@ericries,www.startuplessonslearned.com) • Steve Blank (@sgblank, www.steveblank.com) • Alex Osterwalder (@business_design) •Trevor Owens (Lean Startup Machine) GET STARTED HERE: www.slideshare.net/sblank/successful- entrepreneurship-1 www.StartupWeekend.org • www.TechStars.org • www.gewusa.org; www.unleashingideas.org • www.ideatoproduct.org (Idea to Product) • Utah Foundry
One exercise: Get Out of the *%^$#@ 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 Causation Logic Effectual Logic - Selecting between a given set of means to achieve a - Imagining new possible ends using an existing set of pre-determined goal means - Presumes a market’s existence and ample resource - No assumptions about a market’s existence and process availability - Starts with entrepreneur’s own knowledge, resources, - Begin with the end in mind & generate alternatives networks, affordable loss, and goes from there Given Means M1 M1 M2 M4 Imagined Given Goal M2 M3 M3 Ends M5 M4 M5 Given Means 27 Source: Sarasvaty et al. 2005; Read et. Al 2010;

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Energize 2013 slides

  • 1. LEAN Startups: a primer Learn Entrepreneurial Agility Now!
  • 2. 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!  Norris.krueger@gmail.com @entrep_thinking, LinkedIn, Facebook, G+ http://bit.ly/NKblog ; http://bit.ly/NKshortbio
  • 3. 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?
  • 4. 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
  • 5. 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
  • 6. The Process • from Steve Blank: The search (SBM) we can call “Customer Development” • Implementing SBM = “Agile Development”
  • 7. Minimize TOTAL time through the loop Source: Eric Ries, The Lean Startup
  • 8. 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
  • 9. • “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 *%^$#@ Building!
  • 10.
  • 11. Venture formation starts with the search for a business model What is a business model? describes how an organization rationalizes the way it captures, creates, and delivers value Why it is important? Clarifies the makeup and interlacing of fundamental elements needed by any organization: customers, offer, infrastructure, and financial viability How is it developed? 11 Source: Osterwalder & Pigneur, 2010
  • 12. What’s a Business Model? • Three key questions to answer – identify all key assumptions for each: – 1) Value Proposition – 2) Value Delivery – 3) Value Capture (but how do we get started??)
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  • 24. Key Partners Key Activities Value Customer Customer Propositions Relationsihps Segments Logistics Online retail Customized online Global consumers Partners shopping profiles & (NA, EU, Asia) IT & S/W Dev. & recommendations Maintenance Fulfillment by Affiliates Amazon Developers & Key Resources companies Channels IT infrastructure Amazon web Amazon.com services Individuals and companies that Affiliates need fulfillment Global fulfillment infrastructure Cost Structure Revenue Streams Sales margins Marketing Fulfillment Technology and handling fees content Web services Fulfillment Source: Osterwald & Pigneur, 2010
  • 25. for more info… The 'Lean' Gurus & Key Links: • Eric Ries (@ericries,www.startuplessonslearned.com) • Steve Blank (@sgblank, www.steveblank.com) • Alex Osterwalder (@business_design) •Trevor Owens (Lean Startup Machine) GET STARTED HERE: www.slideshare.net/sblank/successful- entrepreneurship-1 www.StartupWeekend.org • www.TechStars.org • www.gewusa.org; www.unleashingideas.org • www.ideatoproduct.org (Idea to Product) • Utah Foundry
  • 26. One exercise: Get Out of the *%^$#@ 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)
  • 27. Making opportunities happen: Causation & Effectuation Causation Logic Effectual Logic - Selecting between a given set of means to achieve a - Imagining new possible ends using an existing set of pre-determined goal means - Presumes a market’s existence and ample resource - No assumptions about a market’s existence and process availability - Starts with entrepreneur’s own knowledge, resources, - Begin with the end in mind & generate alternatives networks, affordable loss, and goes from there Given Means M1 M1 M2 M4 Imagined Given Goal M2 M3 M3 Ends M5 M4 M5 Given Means 27 Source: Sarasvaty et al. 2005; Read et. Al 2010;