Customer Development Fast Protyping
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- The document discusses various business development processes including subtraction, multiplication, division, task unification, and attribute dependency change as ways to modify a product. It then discusses prototyping and getting customer feedback as important parts of the development process. Specifically, it recommends creating minimum viable products and landing pages to test assumptions with customers before fully developing ideas. The key messages are that business plans should evolve based on customer feedback, prototyping allows early testing of ideas, and pivoting a business model based on learning is normal.
Customer Development Fast Protyping
- 1. RECAP
- 2. -Subtraction: Remove a key element -Multiplication: Copy a key element -Division: Dividing a products into components -Task unification: assign new task to existing element -Attribute dependency change: create new dependencies or break old ones up Variation of product attributes (especially functions)
- 3. Thermos Idea
- 4. The BEST way to communicate?
- 8. Back ground • B.S Electronics and Communication Engineering • Master in ICT entrepreneurship , • Master of Arts, MBA etc. • SSES Alumni • Previously Java,.Net Developer • PhD Candidate at Indek KTH • Now business developer, entrepreneur,
- 9. This presentation • Not about a specific business idea • About business processes • About prototypes • It is pretty long • Feel free to fall asleep, interrupt or leave • I hope you know all this already. • If not, I really think it can give you a lot
- 10. Startup process
- 12. Waterfall is drying • Agile Agile Agile Agile Agile • Scrum • XP extreme programming • Kanban • Continous Integration/Deployment • Developers hate Waterfall like mad!
- 13. What is Agile? • It works when requirements change • And requirements change Why Agile?
- 14. Add agile to process What is wrong with this picture?
- 15. Everything except agile • Old style startup model must DIE! • I will dance on it’s grave! • Because it sucks! • Because where is the customer? • Because things change! • Market risk! Need to adapt!
- 16. Lets get serious • A lot of startups fails • It affects your relationships • It absorbs your life • It can make old friends be enemies • It is your life. Don’t let business coaches or experts run your life. • It is not fun to fail. It is also your coworkers and familys problem. Lets avoid that, then running a startup can be fun and meaningful.
- 17. Why should I listen to you? • Do not listen me! IT IS YOUR RESPONSIBILITY TO QUESTION ALL ASSUMPTIONS. MINE, YOURS, EXPERTS.
- 18. Are you a God? • I can predict what my customers want • I can predict a 5-year financial plan • I can predict what customers will like • I can manage this process • I know the risks, the opportunities • I will never give up
- 19. Are you a mortal • I have a hunch about what customers want • I think it can make money • I will measure and discuss with customers • Lets use the scientific method. Measure! • Test assumptions, test on users, be scientific. • If I find problems, I can change things. Why not use the scientific process to develop business ideas? A business idea is a set of testable hypotheses.
- 20. Some are actually Gods? • Twitter • Google • mystery company
- 21. Twttr has married Short Code Messaging, SMS with a way to create social groups. By sending a text message to a short code (for TWTTR) you can send your location information, your mood information or whatever and share it with people who are on your social-mob! Best part – no installation necessary! NOTE: They have done a PIVOT. Changed idea, but not completely. Rhetoric question: What use was the prediction about the SMS market they probably had in the business
- 22. "Wave has not seen the user adoption we would have liked," Senior Vice President Urs Holzle said in the blog post. "We don't plan to continue developing Wave as a standalone product, but we will maintain the site, at least through the end of the year, and extend the technology for use in other Google projects. NOTE: They are doing a PIVOT, reusing the technology in a new way.
- 23. Mystery company When we think of design, we think of this company Rhetoric question: Was their core value firmly set in their original business plan?
- 24. Don’t burn your business plan • Just don’t make a new one • Thinking through the business is good • But I think you can think through your business in faster and better ways. • Do a powerpoint instead (Guy Kawasaki). • Business Model Canvas – another presentation • KEY POINT: CHANGE is the norm. • KEY POINT: You have a vague idea what CUSTOMERS will want.
- 25. Customer Development • One line summary: Test your assumptions • Get out of the building • Formulate hypotheses and test them • Do Minimum Viable Products (MVP:s) • Pivot. Change aspects of business as you go The Four Steps to the Epiphany: Successful Strategies for Products that Win Steven Gary Blank
- 26. MVP • Minimum set of features that is enough to satisfy some set of customers (usually early adopters) Slice- which part of it/ how to rotate it?
- 27. Pivoting • Changing important part of business model • - can be simple: chancing pricing • -can be complex: target customer, user needs change, feature set changes, new distribution channel
- 28. • Disclaimer: I did not actually read the Four Steps to the Epiphany when I prepared presentation. • However, I have read the “cheat sheet” • And I have read blogs and so on... • I simply started with the “prototype” book. Then, I bought the “Full” book.
- 29. Lean Startup • Eric Ries. He has failed, he has succeeded. • Lean Startup = Customer Development + Agile http://www.startuplessonslearned.com/ Search for Eric Ries on YouTube! Great 1h talk!
- 30. Cust Dev + Prototypes • Consumer Development = business prototypes • Lean startup = Cust dev + Agile • Lean startup is great. But requires that you have IT-guys in team • My idea = Cust Dev + Prototypes • Might work better when you don’t have an IT- team or do not want to waste your resources! • Complements agile
- 31. Some kinds of prototypes • Mockups/line drawings. Show ideas. • Paper prototypes. Test interaction on users. • Landingpages. Great way to test business idea! • Working prototype. Testable IT that works as a specification.
- 32. Mockup • Line drawing to show how system looks • Computer aided, such as Balsamiq Mockups • Or use pen and paper • Get your ideas down!
- 33. Paper-prototypes • Users try system, talk out loud • Test interaction
- 35. Test: Landingpage • You find discover a new electric-engine that can be installed in old cars. By concentrating on a few Swedish bestsellers such as Volvo V70 and Saab9-5, you think you can make a business out of this. • Make a single webpage explaining the idea. • It has two buttons “Pre-order for V70”, and “Pre-order Saab9-5”. • Buy Ad-words for “electric car“ showing ads “Adapt Saab9-5 to electric power”
- 36. Landingpage • Measure how many visit the landing- page • Measure how many click the “Pre-order” buttons (and get their contact details) • Just explain to viewers politely you have not started yet but will get back to them. • Before committing to anything, you can verify if people are interested and if they are on the way to actually buy for the price you show. • Do A/B tests of messages, see what works.
- 37. Results: Landingpage • Sorry, thousands view the page but no one buys. • You have just saved a lot of trouble. • But, you discover a lot of visitors from a blog from old Rolls-Royce enthusiasts. • PIVOT: A lot of people wants to cruise with old classics and want to be eco-friendly and these cars really suck gas. And they can afford the conversion. Your market is now high-margin and European, maybe global.
- 38. Working prototypes • Looks / behaves like a real program • But the aim is to make it fast to explain • A prototype explains better than a specification • A prototype can be used to test on users
- 40. Prototype vs Agile • Agile = building gradually. Quality. • Prototype = max shortcuts • No database needed, no security/scalability • Free to use a completely other language/tools. • Optimize shortcuts, quality is secondary • The anti-thesis of what programmers usually do. Few take pride in doing shit.
- 41. Why prototypes? • Demo, try, get feedback, think through • Show to customers • Show to investors • A much better specification. Same cost? • Can be combined with Agile • Makes outsourcing possible • Make mistakes early
- 42. Mock Up: Twitter
- 43. Mock Up: Guess
- 44. Mock Up: Guess
- 47. Project Glass Staff Hardware Engineer Jean Wang, 2013
- 49. Now, may I ask some questions? • Was it too ugly? drawings, videos etc. • Too long? • Easy or difficult to follow? • Anything to remove/add? • Other comments?
- 50. This presentation is also a prototype • Try message/slides. Get feedback !!! • MVP (Minimum Viable Product) • The slides can be given to graphic designers • Even outsourced • Would you give a specification to designers?1. Picture of trad biz process 2. Picture of waterfall
- 52. • Thank to CEO ColoredCoins Henrik Hjelte • Twitter: @hankhero
- 53. Thank you! • Serdar Temiz • temiz@kth.se