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Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition.
And how thinking of a solution to this commonly used model’s failures led to a new model – the CustomerDevelopment Model – that offers a new way to approach startup activities outside the building. Product Development Diagram 1. —– Part 2 of the CustomerDevelopment Manifesto to follow.
Finally, I’ll write about how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agiledevelopment. Part 4 of the CustomerDevelopment Manifesto to follow.
I packed up my life in Michigan and spent five days driving to California to start work. Agile Opportunism – Entrepreneurial DNA « Steve Blank (tags: startup) [.] Agile Opportunism – Entrepreneurial DNA. You’re Hired, You’re Fired. Driving across the U.S. is an adventure everyone ought to do. Reply Create.
At times I’ll do what I consider an extension of teaching; a two-day Customer Discovery/Validation intensive session with a large corporation serious about CustomerDevelopment at my ranch on the California Coast. CustomerDevelopment Without Agile Engineering Is A Plan For Failure.
Berkeley Haas Business School was courageous enough to give me a forum teach the CustomerDevelopment Methodology. Another piece of trivial: the road that is the side-entrance (during business hours) to Agilent Corporation HQ in Santa Clara is named “Terman Lane&# after Terman. I’ll stop channeling James Burke now.
CustomerDevelopment ) to help you quickly recognize and reverse any incorrect decisions. That’s why startups are agile. Startups that are agile have mastered one other trick – and that’s Tempo – the ability to make quick decisions consistently over extended periods of time.
For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of CustomerDevelopment , AgileDevelopment and if available, open platforms and open source. The CustomerDevelopment process (and the Lean Startup) is one way to do that.
After these slides, these VC’s recognized that this company had dramatically reduced risk and built a startup that was agile, resilient and customer-centric. The presentation didn’t have a single word about Lean Startups or CustomerDevelopment. Your “CustomerDevelopment Process&# has really resonated for me.
Agile – you may find the real opportunities for your company was somewhere else. However, you will be dealing with almost daily change, (new customer feedback/insights from a CustomerDevelopment process and technical roadblocks ,) as the company searches for a repeatable and scalable business model.
But what I wanted was an agile marketing team capable of operating independently without day-to-day direction. The first reaction from my CEO was, “that’s why you’re running the department.” And yes, we could have built a top-down, command-and-control hierarchy. on April 10, 2009 at 6:58 am Said: Amazing blog.
We agreed that all her founding CEOs seemed to have the same set of personality traits – tenacious, passionate, relentless, resilient, agile, and comfortable operating in chaos. I coach agile teams for a living, and I do most of my work with start-ups. I said, “well for me you’d have to add coming from a dysfunctional family.”
This was followed by an 8-minute slide presentation describing their customer discovery journey over the 10 weeks. While all the teams used the Mission Model Canvas , (videos here ), CustomerDevelopment and Agile Engineering to build Minimal Viable Products, each of their journeys was unique.
I know that this all seems obvious now with the movements started by Steven Blank ( Four Steps of Epiphany ) with the whole CustomerDevelopment processes / Lean Startup movements also popularized by people like Eric Ries. I see many CEO’s, product managers and marketing types out in the field talking with customers and users.
A partner allows me the flexibility to miss a session or two (my job as a California Coastal Commissioner meets three days every month up and down the coast of California.) For example, when we taught the value of getting out of the building and agiledevelopment, we had Eric Ries talk about the Lean Startup.
The answer depends on your answer to two questions: which step in the CustomerDevelopment process are you on? CustomerDevelopment and Selling Strategy If you’ve just started your company you are in customer discovery. Hiring a VP of Sales in customer discovery typically sets a startup back.
And in hindsight, we seemed a bit more agile and innovative in WWII.) Yet decades later the military lacked the agility to write a spec in two years, let alone get 10′s of thousands of new systems deployed on aircraft as Terman had done. My first business trip to the valley was to visit California Microwave.
If you are a practitioner of CustomerDevelopment, ESL was doing it before most us were born. When Terman said no, Sylvania, a tube company which built proximity fuse tubes in WWII, won the contract and set up its Electronic Defense Lab (EDL) in Mountain View California in the middle of an orchard.
This post describes a solution – the CustomerDevelopment Model. In future posts I’ll describe how Eric Ries and the Lean Startup concept provide the equivalent model for product development activities inside the building and neatly integrates customer and agiledevelopment.
When I retired after 21 years working in 8 startups, I was invited to be a guest lecturer at the business school at the University of California Berkeley. The Lean LaunchPad class is now taught around the world – and VC’s expect entrepreneurs to talk about not just their technology but their customerdevelopment findings.
Andrew read the Four Steps to the Epiphany , tracked me down at California Coastal Commission hearing in Santa Barbara, and had me meeting with him in a stairwell during a break in my day-long meeting. Here’s his story of when CustomerDevelopment failed. So how did CustomerDevelopment fail us?
Everyone should be articulate and agile in describing and demoing the products.) For bigger booths a good rule of thumb is to have two to four staffers for every 100 square feet of exhibit space. Even for the smallest trade show, no one shows up without booth training. Messages, themes, demo’s. What didn’t?
This post describes how the traditional product development model distorts startup sales, marketing and business development. Finally, I’ll write about how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agiledevelopment.
Hopefully you and your co-founders are experts in one or two parts (agiledevelopment, SEO/SEM, etc.) But the rest; sales, marketing, bus dev is actually customerdevelopment that the founder needs to understand. Initially your job is to understand each of the parts of your business model before you hire someone to do it.
In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agiledevelopment. While that’s not true, it is a fact that entrepreneurs only have one word for “startup.” .
The Ultimate Combination of Startup Business Development Methods - ArcticStartup , November 16, 2010 I've been a huge fan of Steven Blank's CustomerDevelopment methodology for a long time. Meet the New Enterprise Customer, He’s a Lot Like the Old Enterprise Customer - Ben's Blog , November 15, 2010 Meet the new boss.
You don’t get grades for having resiliency, curiosity, agility, resourcefulness, pattern recognition and tenacity. From the king of customerdevelopment, Steve Blank: [.] There’s a big difference between being an employee at a great technology company and having the guts to start one. You just get successful.
The class is intensely and deliberately experiential to develop the mindset, reflexes, agility and resilience an entrepreneur needs to search for certainty in a chaotic world. The premise of the class is that startups, are not about executing a plan where the product, customers, channel are known. Only in California!
The Lean LaunchPad class teaches students how to build a Lean Startup using business model design, customerdevelopment and agile engineering. Teams have to get out of the building and talk to 10-15 customers a week.) However, going through the customerdevelopment process showed me the danger in that kind of thinking.
I started my last company with 100% off-shore resources because I could never have completed CustomerDevelopment at a reasonable cost of money or regulatory burden had I employed US Citizens. Truth be told, we've got defense contractors here just like California does too. September 9, 2009 12:36 AM Richard Tibbetts said.
It ended with a large layoff and a transfer of jobs from NY to California and Bangalore. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? In the end, the team that he put together was severely dysfunctional and worked much worse than the one he inherited. The moral of the story?
The original Hewlett Packard which made test and measurement products was spun-out and renamed Agilent. Agilent is a $5.8 Technology changes, culture changes, customer needs change, more agile competitors emerge, etc. The remaining company kept the Hewlett Packard name and focussed on computers.
Filed under: Secret History of Silicon Valley « Agile Opportunism – Entrepreneurial DNA Rocket Science 2: Drinking the Kool-Aid » 2 Responses Ben , on July 1, 2009 at 2:31 pm Said: Great post Steve. I can’t get this one out of my head. during World War II.
Air Force also needed improvements in frequency agility to protect its cold war bombers. Frequency agility can be best described by what happened over Germany in WWII. B-47 - primary Strategic Air Command Bomber in the 1950's As a result, to protect its bombers flying over the Soviet Union the U.S.
Reply Agile Opportunism – Entrepreneurial DNA « Steve Blank , on June 29, 2009 at 7:02 am Said: [.] Reply Gravity Will Be Turned Off « Avid Editor’s Insights , on May 17, 2009 at 1:31 am Said: [.] entire story can be found at Steve Blank. It’s worth a few minutes time off from reaming [.]
Rapid Scan/High Probability of Intercept – Stanford’s contribution In the last post we described Stanford’s high power, electronically tuned microwave tubes (the Backward Wave Oscillator ) which made high power, frequency agile airborne jammers possible.
Sure the rest of the stories diverge though… can’t really imagine a Soviet counterpart to the CustomerDevelopment method. Reply Agile Opportunism – Entrepreneurial DNA « Steve Blank , on June 29, 2009 at 7:02 am Said: [.] Reply Ben C. , The invention of electronic warfare, part I and II. [.]
In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customerdevelopment would be useful. In contrast to simply executing your business plan, the CustomerDevelopment process is built on low-cost and continuous learning and iterating.
Each of their slide presentation follow their customer discovery journey. All the teams used the Mission Model Canvas , CustomerDevelopment and Agile Engineering to build Minimal Viable Products, but all of their journeys were unique. Filed under: CustomerDevelopment , Hacking For Defense , Lean LaunchPad.
In an early stage startup, instead of sales being up front, the point departments are likely to be product development and customerdevelopment. Later on in this same company’s life, sales will become the pointy end and product development moves to a supporting role. No one was confused after that.
An Agile Alternative: Embedded Design A Depressing Example of Non-Agile Design Why Your Customer Feedback is Useless Seven More Ways People Suck at Customer Developmen. ► February (1) 6 Ways You May Be Failing at CustomerDevelopment ► 2009 (9) ► December (1) Which Metrics Equal Happy Users?
I teach teams various Agile techniques, and occasionally get told some particular trick is cheating. E.g., we take a big spec, cut the 80% that, for some core group of customers, is nice rather than necessary, and ship the 20% ASAP. Just remember ethics and values are about what you practice when the going gets tough.
Each of their slide presentations follow their customer discovery journey. All the teams used the Mission Model Canvas , CustomerDevelopment and Agile Engineering to build Minimal Viable Products, but all of their journeys were unique. The teams presented in front of several hundred people in person and online.
military can work together – for access to advanced technology and to learn how to move with agility, speed and urgency. Prior to that, he worked for an integrated trading company in which he built several new businesses by collaborating with high-tech startups in California.
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