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Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Are there customers for what you are building? How many are there? Can it scale?”
CustomerDevelopment is a technique startups use to quickly iterate and test each part of their business model. How you execute CustomerDevelopment varies, depending on your type of business. Ash Maurya , the CEO of WiredReach, has extended my work by building a model of CustomerDevelopment for Web Startups.
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. Three to six months after first customer ship, if Sales starts missing its numbers, the board gets concerned.
Each sale requires us to handhold the customer and takes way too long to close. He took a deep breath, looked around the boardroom table and then proceeded to outline a radical reconfiguration of the product line (repackaging the products rather than reengineering them) and a change in sales strategy, focusing on a different customer segment.
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. It reminded me of the differences in Customer Discovery between a scalable startup and a big company.
AgileFall is an ironic term for program management where you try to be agile and lean, but you keep using waterfall development techniques. All are Horizon 1 or 2 projects – creating new features for existing products targeting existing customers or repurposing existing products, tools, or techniques to new customers.
Filed under: CustomerDevelopment , ESL , Technology | Tagged: Steve Blank , Entrepreneurs , ESL « Convergent Technologies: War Story 1 – Selling with Sports Scores A Wilderness of Mirrors » 17 Responses Michael F. Agile Opportunism – Entrepreneurial DNA « Steve Blank (tags: startup) [.] Reply Create.
I was driving home from the BIO conference in San Diego last month and had lots of time for a phone call with Dave, an ex student and now a founder who wanted to update me on his Customer Discovery progress. Customer Discovery. He worked hard to deeply understand the customer problems of these two customer segments.
It was not only my secret weapon in thinking about new startup strategies, it also gave me a view of the management issues my customers were dealing with. To fill this gap I wrote The Four Steps to the Epiphany , a book about the CustomerDevelopment process and how it changes the way startups are built.
The class teaches founders how to dramatically reduce their failure rate through the combination of business model design, customerdevelopment and agiledevelopment using the Startup Owners Manual. And you’ll learn about how to build a minimal viable product to get feedback early and often from customers.
I was having breakfast with Radhika, an ex-grad student of mine who wanted to share her Customer Discovery progress for her consumer hardware startup. Activities define the unique expertise your company needs to deliver the value proposition, customers, channels, customer relationships and/or revenue. (If CustomerDevelopment'
We think teaching teams a formal methodology around the Lean Framework (Business Model design, CustomerDevelopment and Agile Engineering) is a natural evolution of how successful incubators/accelerators will build startups. Given something tangible, customers were able to start gauging their willingness to use and pay.
As organizations we have become more open and I believe this is great for businesses and their customers. We spent time out in the marketplace talking with customers, looking at their solutions, comparing ourselves with our competition and then squirreling ourselves away in our offices designing our next set of features.
Over the last decade we assumed that once we found repeatable methodologies (Agile and CustomerDevelopment , Business Model Design) to build early stage ventures, entrepreneurship would become a “science,” and anyone could do it. Some men see things as they are and ask why. Others dream things that never were and ask why not.
The benefits of customer and agiledevelopment and minimum features set are continuous customer feedback, rapid iteration and little wasted code. But over time if developers aren’t careful, code written to find early customers can become unwieldy, difficult to maintain and incapable of scaling.
This startup search process is the business model / customerdevelopment / agiledevelopment solution stack. The traditional business plan is an essential organizing and planning document to launch new products in existing companies with known customers and markets.
Here’s the course announcement from Professor Vergara (in English): CustomerDevelopment Course in Chile – Lean Launchpad. The objective of this course is that groups of students finish with a completed software product that has real customers and an identified market.
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.
Since every situation is unique, there is no perfect solution to any engineering, customer or competitor problem, and you shouldn’t agonize over trying to find one. An example of a reversible decision could be adding a product feature, a new algorithm in the code, targeting a specific set of customers, etc.
63 scientists and engineers in 21 teams made 2,000 customer calls in 8 weeks , turning laboratory ideas into formidable startups. We taught them the business model / customerdevelopment / agiledevelopment solution stack. And since the rest of the slides were about CustomerDevelopment, I taught those.
A business plan is the execution document that large companies write when planning product-line extensions where customer, market and product features are known. Most startups are facing unknown customer needs, an unknown product feature set and is an organization formed to search for a repeatable and scalable business model.
The company loses customers, then revenues and profits decline and it eventually gets acquired or goes out of business. valued by their existing customers – fairly well. Yet most research has shown that disruptive innovation, that is innovations that go after new markets, new customers, new technologies, etc.
It was designed to bring together many of the new approaches to building a successful startup – customerdevelopment, agiledevelopment, business model generation and pivots. Even if they did, what if the assumption – that we had developed a better approach to teaching entrepreneurship – was simply mistaken?
It was not only my secret weapon in thinking about new startup strategies, it also gave me a view of the management issues my customers were dealing with. To fill this gap I wrote The Four Steps to the Epiphany , a book about the CustomerDevelopment process and how it changes the way startups are built.
We’re changing the order in which we teach the business model canvas and customerdevelopment to better-fit therapeutics, diagnostics and medical devices. “CustomerDevelopment” to test the hypotheses outside the building and. Teams talk to 10-15 customers a week and make a minimum of 100 customer visits.
Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital. ” Fire, Ready, Aim.
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. And most startup code and features end up on the floor as customers never really wanted them.
Working with him, I’ve been impressed to watch his small team embrace CustomerDevelopment (and Business Model Generation ) and search the world for the right product/market fit. They’ve tested their hypotheses with literally hundreds of customer interviews on every continent in the world. Corporate elephants can dance.
With hindsight we should have had “proof of concepts” tested in a corporate center (think ‘pop-up incubator’) where they would do extensive Customer Discovery. Doing so meant they would have to take risks for IP acquisition and customer/market risks outside their experience or comfort zone. Lessons Learned.
When Bob Dorf and I wrote the Startup Owners Manual we listed a series of CustomerDevelopment principles. Pair CustomerDevelopment with AgileDevelopment. No Business Plan Survives First Contact with Customers. So by popular demand, here’s a poster of the CustomerDevelopment Manifesto.
Agile – you may find the real opportunities for your company was somewhere else. Passionate – is the company/product/customers the most important thing in your life? This means you still need to have a resilient personality, and be agile. Get customers first. How quickly will you recover? But it won’t be happening daily.
Rather than a traditional VC pitch I suggested that they do something unconventional and tell the story of their journey in Customer Discovery and Validation. The heart of the Cafepress presentation is the “ Lessons Learned from our Customers ” section. Your “CustomerDevelopment Process&# has really resonated for me.
Once upon a time every great organization was a scrappy startup willing to take risks – new ideas, new methods, new customers, targets, and mission. What had previously been a strength – their great management processes – now holds back their ability to respond to new challenges. Companies Run on Process. Process Versus Product.
One good example is the way in which we''ve adjusted the length of different phases of our agile sprints. We don''t follow a set agile methodology, but rather follow a more home-grown, minimal version of various approaches. Create a steady stream of customer input that anyone can dip into. It wasn’t always this way.
This class is built on conducting in-person of interviews with customers/ beneficiaries and stakeholders, but due to the pandemic, teams now had to do all their customer discovery via a computer screen. How would customer interviews work via video? See here for an extended discussion of remote customer discovery.).
Build a product, get it into the real world, measure customers’ reactions and behaviors, learn from this, and use what you’ve learned to build something better. Repeat, learning whether to iterate, pivot or restart until you have something that customers love. Waterfall Development.
In previous posts I’ve talked about what the combination of Business Model Design, CustomerDevelopment and Agile Methodologies mean to startups and intrapreneurs in large companies; it’s the beginning of entrepreneurship as a science with its own rules and methodologies. She posted her notes from the talk here.)
Ditch the business plan and when assumptions are proven wrong, pivot CustomerDevelopment: Build a product your customers want (vs. what you think they might need) by talking to customers and testing every aspect of the product features, pricing, etc. AgileDevelopment: launch an MVP early and iterate quickly.
But what I wanted was an agile marketing team capable of operating independently without day-to-day direction. To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires.
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. Founding a company is a sheer act of will and tenacity in the face of immense skepticism from everyone – investors, customers, friends, etc.
Twenty eight years ago I was the bright, young, eager product marketing manager called out to the field to support sales by explaining the technical details of Convergent Technologies products to potential customers. These companies would take our computers and put their name on them and resell them to their customers.
I’ve been teaching CustomerDevelopment at U.C. Berkeley was brave enough to let me write and teach a class on a subject that no one had ever heard of – CustomerDevelopment. CustomerDevelopment was a process to quickly search for a profitable business model when customer needs (features, pricing, channel, etc.)
> Uber's " Reality Therapy 4 Startups": What U Need 2 Know NOW > Steve Blank on why NOT to be an Entrepreneur > Airbnb's Globetrotting Lessons: Building 4 a Global Market > Vinod Khosla - The VC Legend: Interview w/ Dave McClure > Eric Ries on Entrepreneurship: What He's Learned Along the Way > GitHub's Secret 2 Success: Rethinking (..)
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.
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