9. HOW COULD WE
DRINK OUR OWN CHAMPAGNE?
Build
Measure
Learn
9@berniemaloney
10. ANY PROBLEM CAN BE MADE
CLEARER WITH A PICTURE
Dan Roam
10@berniemaloney
11. Dan also wrote an earlier, worthwhile book:
The Back of the Napkin
11@berniemaloney
12. HOW CAN A BUSINESS BE
PICTURED?
http://youtu.be/QoAOzMTLP5s
12@berniemaloney
13. BUSINESS MODEL CANVAS
13
Partners Offer Key Customers
What you ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
Source:
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
@berniemaloney
15. WHY IS A MODEL SIGNIFICANT?
DESIGN THINKING
15@berniemaloney
16. DESIGN THINKING
• Freezing an idea early
risks falling in love with it
• Refining an idea quickly
risks become attached (sunk cost)
• Objective:
Defer judgment & emphasize crude prototypes to
help avoid these pitfalls
• Example:
IDEO - an illustration of Design AND Agile
http://youtu.be/M66ZU2PCIcM
16@berniemaloney
25. HOW ABOUT AN EXAMPLE?
25
Better yet…
@berniemaloney
26. BUS 15 @ STANFORD
26
Experience
in Product
Management
& Agile
Silicon Valley
Prepare outline; develop materials;
coordinate efforts; time to teach…
Stanford
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Feedback; fresh perspective; resume
enhancer; honorarium; contacts…
Guest
Speakers
Curious about
Prod Mgt &/or
Agile
Very Early
Entrepreneurs
Live Class
Relationship
Channel Experienced &
want increased
results
Live Class
direct
Personal
(vs automated)
Resources
Activities
Brand
Rooms
Equipment
Marketing
Experience
@berniemaloney
27. BUS 15 @ STANFORD
27
Experience
in Product
Management
& Agile
Silicon Valley
Prepare outline; develop materials;
coordinate efforts; time to teach…
Stanford
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Feedback; fresh perspective; resume
enhancer; honorarium; contacts…
Guest
Speakers
Curious about
Prod Mgt &/or
Agile
Very Early
Entrepreneurs
Live Class
Relationship
Channel Experienced &
want > resultsLive Class
direct
Personal
(vs automated)
Resources
Activities
Brand
Rooms
Equipment
Marketing
How could inspect/adapt be applied?
Experience
@berniemaloney
28. HOW ABOUT…?
28
Experience
in Product
Management
& Agile
East Bay Area
Prepare outline; develop materials;
coordinate efforts; time to teach…
Berkeley
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Feedback; fresh perspective; resume
enhancer; honorarium; contacts…
Guest
Speakers
Curious about
Prod Mgt &/or
Agile
Very Early
Entrepreneurs
Live Class
Relationship
Channel Experienced &
want > resultsLive Class
direct
Personal
(vs automated)
Resources
Activities
Brand
Rooms
Equipment
Marketing
Experience
Experience
at Stanford
@berniemaloney
29. OTHER VALUES OF THE BM CANVAS
• Ecosystems Win
– Microsoft Office
– iTunes
– Search + Ads
• Canvas Maps an Ecosystem
Fits a single visual field = shifts brain processes
• Looks at Market & Opportunity
over chasing a competitor’s ‘tail lights’
29@berniemaloney
30. Ready for a Group Exercise?
30
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
@berniemaloney
31. EXERCISE: BUSINESS MODEL CREATION
• Form Teams
• Product:
Biodegradable Bag
(ok for fertilizer)
• 5 minutes:
Create (at least 1)
business model
31
http://www.naparecycling.com/uploads/plastic%20bag.png
@berniemaloney
32. BUSINESS MODEL CANVAS
32
Partners Offer Key Customers
What you ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
Source:
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
@berniemaloney
33. INSIGHTS: CREATING A BUSINESS MODEL
@berniemaloney 33
http://www.garabatosydibujos.com/wp-content/uploads/2015/01/conocer.jpg
34. This is a crude prototype
34
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
@berniemaloney
35. EXERCISE: BUSINESS MODEL CREATION
• Form Teams
• Product:
Biodegradable Bag
(ok for fertilizer)
• 5 minutes:
Create (at least 1)
business model
35
How could you “unit test” the product?
@berniemaloney
36. THERE ARE NO FACTS IN THE BUILDING
…SO GET OUT AND TALK TO
CUSTOMERS
Steve Blank
36@berniemaloney
44. THE WAY TO SUCCEED IS TO
DOUBLE YOUR FAILURE RATE
Thomas Watson
Founder of IBM
44@berniemaloney
45. HP MEDIASMART (RETAIL) TVS
45
American
Brand
CircuitCity
Cost-plus Mat’l; Design; Supply Chain;
Placements
Asian TV Brand
You know
Partners Offer Key Customers
RevenuesCosts
Just enough to break even at intro,
Not enough to sustain price drops
CinemaNow
Best Buy
Relationship
Channel
Direct
Direct B2C
Indirect B2B2C
Resources
Activities
Glass
TV KnowHow
Microsoft
Internet
Content
Asian TV Brand
New to USA
Netflix
Retail
Electronics
Leading Edge
Internet TV
Known
Brand
IPTV Visionary
Adopters
Manufacturing
Set Devel’mnt
Licensing
Volume Retail
future
proofing
@berniemaloney
46. HP COMMERCIAL TVS
46
American
Brand
HP Sales
Cost-plus Mat’l; Design; Supply Chain;
Asian TV Brand
You know
Partners Offer Key Customers
RevenuesCosts
Sustainable Margin
CDW
Relationship
Channel
Direct B2B
Indirect B2B2B
Resources
Activities
Glass
TV KnowHow
Asian TV Brand
New to USA
Commercial
Suppiers
Known
Brand
Manufacturing
Set Devel’mnt Competive
Price
Direct HP
Accounts
@berniemaloney
47. VIZIO TVS (2006)
47
American
Brand
Costco
Competitive Mat’l; Design; Supply Chain;
Asian TV Brand
You know
Partners Offer Key Customers
RevenuesCosts
Sustainable Margin
Sustainable Volume
Relationship
Channel
Direct
Direct B2C
Indirect B2B2C
Resources
Activities
Glass
TV KnowHow
Asian TV Brand
New to USA
Warehouse
Clubs
Value
PricingManufacturing
Set Devel’mnt
Value
Buyers
@berniemaloney
48. LAYERING IN MARKET RESEARCH
48
Partners Offer Key Customers
RevenuesCosts
Relationship
ChannelResources
Activities
Retail
Electronics
Leading Edge
Internet TV
IPTV Visionary
Adopters
Value
BuyersCommercial
Suppiers
Value
Pricing
1Ks
100s
@1Ks
10s
@1Ks
1M+
@berniemaloney
49. PIVOTS ARE BUSINESS MODEL
CHANGES WITHOUT CRISIS
Steve Blank
49@berniemaloney
51. HOW TO PROVE IT WORKS?
• MVP
– Minimum Viable Product
– Sale of a Product (it’s viable!)
• PMF
– Product Market Fit
– Is it the right customer segment?
– Is the segment sustainable?
– Is the product / model sustainable?
51@berniemaloney
54. EXERCISE: BUSINESS MODEL CREATION
• Form Teams
• Product:
Biodegradable Bag
(ok for fertilizer)
• 5 minutes:
Create (at least 1)
business model
54
Want a model comparison?
@berniemaloney
56. ACCESS TO SANTIATION
• 4 out of 10 people lack even simple latrines
(2.6 billion people)
• A solution?
56@berniemaloney
http://greenupgrader.com/files/2009/04/peepoo6.jpg
57. PEEPOO BAG
• Single use toilet bag
• Self sanitizing
• Low production cost
• Biodegradable – turns into fertilizer
• (initially) targeted at poor people
• People already pay for sanitation
57@berniemaloney
58. WHO / WHERE ELSE COULD USE THIS?
58
Partners Offer Key Customers
What you ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
@berniemaloney
60. This is a crude prototype of a business
60
Partners Offer Key Customers
What we ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
@berniemaloney
62. EXERCISE: BUSINESS MODEL CREATION
• Form Teams
• Product:
Coffee
• 7 minutes:
Create a business model
AND 3 “systems” Tests
of PMF
62
http://www.thecoffeebeanshop.com/images/CoffeeBeanCloseup6beansR.jpg
@berniemaloney
63. BUSINESS MODEL CANVAS
63
Partners Offer Key Customers
What you ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
Source:
http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf
@berniemaloney
64. INSIGHTS: CREATE + TEST A BUSINESS MODEL
@berniemaloney 64
http://www.garabatosydibujos.com/wp-content/uploads/2015/01/conocer.jpg
65. EXERCISE: BUSINESS MODEL CREATION
• Form Teams
• Product:
Coffee
• 5 minutes:
Create (at least 1)
business model
65
http://www.thecoffeebeanshop.com/images/CoffeeBeanCloseup6beansR.jpg
@berniemaloney
Want a model comparison?
70. BUSINESS VALUE CANVAS
70
Partners Offer Key Customers
What you ‘get’What it ‘costs’
Relationship
ChannelResources
Activities
@berniemaloney
gains
pains
customer
jobs
gain
creators
pain
relievers
products
& services
79. IF YOU DON’T WORK UNDER TIME
CONSTRAINTS, YOU COULD NEVER GET
ANYTHING DONE. IT’S A MESSY
PROCESS, IT COULD GO ON FOREVER.
Dave Kelley
79@berniemaloney