Contenuti del workshop Innovits dedicato agli startupper e agli itutor della 5 call4ideas. Lean startup , customer development, business model canvas, value proposition canvas, value curve.

1. Innovits workshop Framework, processes, methods
22ottobre 2014
Stefano Mizio

2. •How you will be involved
•Planning
•Method, Process, Tools
Stefano Mizio
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This talk...

3. Call for Ideas: we help startups to emerge
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Startup Creation
Early Stage
Expansion
•Innovation Assesment
•Business Modeling
•Coaching & Mentoring
•Training
•Business Model elaboration
•Pitch day
•Access to finance
•Hosting
•Training
•Commercialization
•Internation. Support
•Business Dev.
Innovits Call For Ideas Journey
“Don’t join an accelerator unless you can win it. That requires being at a stage where you can actually benefit from meetings with investors and the press”

4. Stefano Mizio
Steve Blank
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Search...

5. Stefano Mizio
Steve Blank
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Startup and Established Company

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METHOD: LEAN STARTUP
PROCESS: CUSTOMER DEVELOPMENT
TOOLS: BMC, MVP, CUSTOMER INTERVIEW,..
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Framework

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Stefano Mizio
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Core Principles: scientific method

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Just an example: Zappos

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Andreas klinger
Missing your opportunity…by focusing on the wrong thing or by looking at the wrong customer
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By S. Blank
The Journey

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“Startups evolve through discrete stages of development. Each stage can be measured with specific milestones and thresholds”.
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12. Cracking the code of innovation
Stefano Mizio
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It takes time

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Problem - Solution FIT
“The hard part is finding the problem to solve” – K. Sistrom

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Steve Blank
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Get out of the building

15. By S. Blank
Stefano Mizio
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Stop! Let’s start from your idea of business model

16. •“A business model is simply the ‘way of doing business’ that a firm has chosen: its entire system for creating and providing consistent value to customers and earning a profit from that activity, as well as benefit for its broader stakeholders. It refers to the core architecture or configuration of the firm, specifically how it deploys all relevant resources (not just those within the company boundaries), to create differentiated value for customers at a profit…” (Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation Economy. Publicis Wiley.)
•The business model is a company’s answer to the question of how to make money in its chosen business. It describes, “…as a system, how the pieces of a business fit together” (Magretta, J. (2002). "Why Business Models Matter." Harvard Business Review 80(5) May: 86-92.)
Stefano Mizio
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What does a business model mean?

17. •The essence and main components
WHO
WHAT
HOW
is your customer?
do you offer
your customers?
do you do this?
Markets
Customer Segments
Individual Customers
Products & Services
Solutions
Experiences
Create Value
Deliver Value
Capture Value
Delivering the Who, What and How in a concise message. Unique Value Proposition: a single, clear compelling message that states why you are different and worth buying
Stefano Mizio
By Mark Sniukas
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What is a business model?

18. Who
•People who want a quick bite to eat
•Get in, order, get served quickly, get out quickly again
What
•Pre-made food prepared constantly according to demand
•Standard menus
•Some variations allowed
How
•Standardized processes
•Central locations with high frequencies
•The key is to serve a maximum number of people during a given time
By Mark Sniukas
Stefano Mizio
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McDonald’s Business Model

19. OFFER
CHANNELS
RELATIONSHIPS
CLIENTS
REVENUE STREAMS
COST CENTRES
KEY PARTNER
KEY RESOURCES
KEY ACTIVITIES
Who‘s your
customer?
Which customer segments do you serve?
What‘s your offer? Which „jobs to be done“ do you satisfy?
What‘s your relationship to the customer? What‘s your image?
How do you reach your customers?
How do you make money?
What is driving cost?
What are your core activities and processes?
What are your main suppliers, partners and alliances?
What are your main assets and competencies?
The business model is a company’s answer to the question of how to make money in its chosen business. It describes, “…as a system, how the pieces of a business fit together”
By A. Osterlwalder
Stefano Mizio
A way to depict your Business Model

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A BMC example - TELCO

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BCG Model
A different model...

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Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
Guess
9 Guesses
By A. Osterlwalder

23. fundamental problem in a given situation that needs a solution
Stefano Mizio
When customers find that they need to get a job done, they “hire” products or services to do the job.
MIT Sloan Management Review 2007 - Finding the Right Job For Your Product
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Problem means : JBTD

24. The Innovator’s toolkit
Key components of a job statement are an action verb, the object of the action, and clarification of the context in which the job is performed
fundamental problem in a given situation that needs a solution
Stefano Mizio
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JBTD

25. 1
• Jobs to be done
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•Value proposition
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• Your Business Model
Stefano Mizio
Process to follow

26. JTBD: providing a safer alternative for scooter families.
Value Proposition: offering an affordable, safer, all-weather alternative for scooter families.
Business Model:
that goal required radical changes in the cost structure of making a Car.
You are standing on a Mumbai road on a rainy day and notice the large number of motor scooters snaking precariously in and out around the cars
Stefano Mizio
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27. Design Value Propositions that match your Customer's needs and jobs-to-be-done and helps them solve their problems.
By A. Osterlwalder
Stefano Mizio
Value Proposition Canvas

28. Jobs to be done:
•What functional jobs is your customer trying get done? (solve a specific problem, complete a specific ask)
•What basic needs is your customer trying to satisfy? (communication,…)
•What emotional jobs is your customer trying to get done? (feel good, security,…)
Pains (before, during and after getting the JTBD):
•What does your customer find too costly?
•What makes your customer feel bad?
•How are current solutions underperforming for your customer?
•What are the main difficulties and challenges your customer encounters?
•What negative social consequences does your customer encounter or fear?
•What risks does your customer fear?
•What common mistakes does your customer make?
•What barriers are keeping your customer from adopting solutions?
Gains:
•Which savings would make your customer happy?
•What outcomes does your customer expect and what would go beyond his/her expectations?
•How do current solutions delight your customer?
•What would make your customer’s job or life easier?
•What positive social consequences does your customer desire?
•What are customers looking for?
•What do customers dream about?
•How does your customer measure success and failure?
•What would increase the likelihood of adopting a solution?
By A. Osterlwalder
Stefano Mizio
Don’t forget to rank jobs, pains, gains
Important +
Insignificant -
Step into your customers’ shoes
One step toward customer interview

29. Which core beliefs you need to test with customers
(analgesics): How we are helping our customers with their pains (for example: saving them some time thanks to the automatic generation of a shopping list or thanks to a home delivery service)
(vitamins): How we provide benefits for our customers (for example: helping them to save some money thanks to some discount coupons).
By A. Osterlwalder
Stefano Mizio
Value Map + Customer Profile

30. By A. Osterlwalder
WHAT are we building and WHY are we buiding it
Stefano Mizio
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Static + Dinamic merge

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Ask about experience not opinions
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Customer Interview: Good and Bad question

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Find Customer
Validate Problem
Validate Solution
Learn&Iterate
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Customer Interview Process: No leading question – know what you need to learn

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•How you currently deal with this problem?
•Talk me through the last time you had this problem.
•How much money does this problem cost you?
•Who else should I talk with?
•Would you buy a product which solved this problem?
•How much would you pay for this?
•Do you think it’s a good idea?
•Do you have a problem with this?... well, now I’am!
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Customer Interview: Good and Bad question
…Awesome feedback: “ we are spending XX euro per month on this! Proofs it is a problem

34. Lean Startup 101
Stefano Mizio
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There are no facts inside the building

35. The Value Hypothesis
The Growth Hypothesis
The Minimum Viable Product
Stefano Mizio
Leaps of faith assumptions
Eric Ries

36. By Stephan Roock
Stefano Mizio
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Minimum Viable Product
MVP

37. A dummy banner:
404 / "Not Found" message.
If enough users click on the banner, the product will go into development
Test and Learn
Smoke test
Stefano Mizio

38. “Test" your model and your assumptions with customers until you find the right business model to scale.
By A. Osterwalder
Stefano Mizio
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39. Stefano Mizio
Pivot or Persevere Companies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead.
By Eric Ries
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Land of the living dead
The state where a company is neither growing enough nor
dying, consuming resources and commitment from employees and other stakeholders but not moving ahead. It is a terrible drain of human energy

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Stefano Mizio
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Our map

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www.leanlaunchlab.com
Data: Lean Launch Lab

42. Data Center
+ 1 backup metod
Telecom /Cell phones provider
Unreliable electric grid
Sell
Data center fuel availability
countries have grid problerms
Fuel costs
Risk theft of fuel
7/10
Developing countries / no reliable grid
DURATHON
Exploration
Stefano Mizio
www.leanstartupmachine.com

43. Stefano Mizio
The easiest version

44. (Business Models)… But they don’t factor in one critical dimension of performance: competition. Sooner or later—and it is usually sooner—every enterprise runs into competitors
P.B. Seddon – G.P. Lewis Strategy and Business Models: what’s the difference?
Stefano Mizio
Strategy and Business Models

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W.C. Kim R. Mauborgne Blue Ocean Strategy
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The Value Curve (1)

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W.C. Kim R. Mauborgne Blue Ocean Strategy
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The Value Curve (2)

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2
4
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Scoring
Factors of Competition
Industry Strategy Canvas
Nintendo
Game Industry
Stefano Mizio
W.C. Kim R. Mauborgne Blue Ocean Strategy
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Nintendo Wii example

48. VALUE PROPOSITION
CHANNELS
RELATIONSHIPS
CUSTOMERS
REVENUE STREAMS
COST CENTRES
KEY
PARTNERS
KEY RESOURCES
KEY ACTIVITIES
Stefano Mizio
Let’s move on – Homework BMC

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Our social presence

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Keep in touch