11. Build a Customer Development Process Customer Development ? ? ? ? Concept/ Seed Round Product Dev. Alpha/Beta Test Launch/ 1 st Ship Product Development
12. Customer Development is as important as Product Development Company Building Customer Development Customer Discovery Product Development Customer Validation Customer Creation Concept/ Bus. Plan Product Dev. Alpha/Beta Test Launch/ 1 st Ship
28. Problem: known Solution: known Waterfall Unit of progress: Advance to Next Stage
29.
30. Problem: known Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features
31. Problem: known Solution: unknown Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features
32. Problem: known Solution: unknown Agile (XP) “ Product Owner” or in-house customer Unit of progress: Working Software, Features
33. Problem: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights
34. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights
35. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights
36. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights Data, feedback, insights
37. Problem: unknown Solution: unknown Customer Development Engineering Unit of progress: Learning about Customers Hypotheses, experiments, insights Data, feedback, insights Incremental, quick, minimum features, revenue/customer validation
Steve Blank has an additional screen for opportunity – the “Type of Market” Three types of markets Each with a radically different set of needs Palm in 1995 created a “New Market” Handspring in 2000 with the exact same product, entered an “Existing Market Microsoft with the Pocket PC, is attempting to “Resegment” the Market Why does this matter in weighing and assessing opportunity?
Steve Blank has an additional screen for opportunity – the “Type of Market” Three types of markets Each with a radically different set of needs Palm in 1995 created a “New Market” Handspring in 2000 with the exact same product, entered an “Existing Market Microsoft with the Pocket PC, is attempting to “Resegment” the Market Why does this matter in weighing and assessing opportunity?
Each “type of market” is radically different Different ways to size the market opportunity Different sales costs Different demand creation costs Different time to liquidity Very different capital requirements And as we’ll see market type choices radically effect the Customer Development process.
In looking at how companies succeed and fail, their success tends to be organized around groupings of customers and markets. More importantly it is how these groupings of customers view their needs and how your new product satisfies those needs
- Entering an existing market means you are targeting demanding high-end customers with better performance than what was previously available.
- When threatened at the low-end existing companies are wired to go “up market.” Existing companies are almost never motivated to defend a low-end market. They tend to ignore them. For this strategy to work the low-end innovation needs to be disruptive to all the incumbent existing companies. The startup must continue to innovate up market. This is the reason Dell is profitable and Gateway is an also-ran. Think of low-end as a market entry not an end goal.
For this strategy to work the low-end innovation needs to be disruptive to all the incumbent existing companies.
A New Market is competing against non consumption. For this strategy to work the low-end innovation needs to be disruptive to all the incumbent existing companies.
Why Do You Work Here? Why Did We Hire You? How Are You Managed? Star System Work Potential Professional Engineering Work Skills Peers/Culture Commitment Love Fit Peers/Culture Bureaucracy Work Skills Formal Autocracy Money Skills Direct James N. Baron Stanford Graduate School of Business