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CustomerDevelopment is all about gathering a list of what features customers want by talking to them, surveying them, or running “focus groups.” Gathering feature requests from customers is not what marketing should be doing in a startup. And it’s certainly not CustomerDevelopment.
Customer/Market Risk Versus Invention Risk One day I was having lunch with a VC sharing what I learned from my students. Customer/Market Risk Versus Invention Risk One day I was having lunch with a VC sharing what I learned from my students. Steve,&# he said, “you’re missing the most interesting part of vertical markets.
Other advisors provided marketing with industry-specific advice in our initial vertical markets (computational fluid dynamics, computational chemistry, finite element analysis, and petroleum engineering). Some of these advisors from the academic community would work with our of VP of Engineering and help us solve specific technical problems.
Verticals Are Different I began to realize that entrepreneurs (and their professors) act like every vertical market and industry has the same set of rules. So the first heuristic is: do not assume the startup rules are the same for all vertical markets. Just for discussion, the markets I chose were: Web 2.0,
For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of CustomerDevelopment , Agile Development and if available, open platforms and open source. The CustomerDevelopment process (and the Lean Startup) is one way to do that.
CustomerDevelopment ) to help you quickly recognize and reverse any incorrect decisions. CustomerDevelopment) to help you quickly recognize and reverse any incorrect decisions.&# My advice was to start a policy of making reversible decisions before anyone left his office or before a meeting ended.
CustomerDevelopment We were starting Epiphany, my last company. I was out and about in Silicon Valley doing what I would now call Customer Discovery trying to understand how marketing departments in large corporations worked. See part one for the first time it happened. This time it was serious. Good stuff too.
Filed under: CustomerDevelopment , Venture Capital | Tagged: Entrepreneurs « CustomerDevelopment Manifesto: Market Type (part 4) CustomerDevelopment Manifesto: The Path of Warriors and Winners (part 5) » 16 Responses Jon Ziskind , on September 14, 2009 at 9:19 am Said: Steve – Great post and really great advice.
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. This means you still need to have a resilient personality, and be agile. You’re not joining a big company.
Crammed into Silicon Valley along with millions of people around the San Francisco Bay it’s hard to fathom that 15 air miles away was a stretch of California coast that was still rural. At the end of two days I realized, This was the first full weekend I had taken off since I had moved to California 3 years ago. How did I miss that?
CustomerDevelopment/Lean Startups In hindsight startups and the venture capital community left out the most important first step any startup ought to be doing – hypothesis testing in front of customers- from day one. It’s what my textbook on CustomerDevelopment describes. I was an idiot. Berkeley and at Stanford.
Filed under: CustomerDevelopment , Marketing , SuperMac , Technology | Tagged: Steve Blank , SuperMac « Love/Hate Business Plan Competitions Gravity Will be Turned Off » 17 Responses EricS , on May 11, 2009 at 11:05 am Said: I loved my Spigot. It was fun watching it happen.
Home Books for Startups Secret History-Bibliography Steve Blank Startup Resources Steve Blank Entries RSS | Comments RSS Categories Air Force (9) Ardent (9) Big Companies versus Startups: Durant versus Sloan (29) California Coastal Commission (3) Conservation (2) Convergent Technologies (1) CustomerDevelopment (98) CustomerDevelopment Manifesto (..)
This year, with the kids grown, their choice was to fly up from Southern California and spend the holidays at our ranch. So no post today on entrepreneurship, Secret History of Silicon Valley, CustomerDevelopment, Lean Startups, etc. California, where even the rabbits are bigger than life!
Forget the Hypertext idea and come on back to California. He and his wife Gwen would found the Computer Museum, first in the lobby of DEC headquarters, then in Boston (and now as the Computer History Museum in Mountain View, California.) The response from across the country? We’re building a supercomputer.”
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.
I was between my 7th and 8th and final startup; licking my wounds from Rocket Science, the company I had cratered as my first and last attempt as a startup CEO. Yet when I talked to my venture capital friends, they said, “Well, that’s just how startups work. We’ve managed startups like this forever; there is no other way to manage them.”
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.
Reply steveblank , on March 28, 2009 at 7:27 am Said: Denis, Over time the blogs tagged under the “customerdevelopment&# category will build up a narrative of illustrative stories of how customerdevelopment evolved in practice. What part of this blog should I read if I am also reading the book?
Unfortunately most startups learn this by going through the “Fire the first Sales VP&# drill: You start your company with a list of potential customers reading like a “who’s who&# of whatever vertical market you’re in (or the Fortune 1000 list.) Your board nods sagely at your target customer list.
My first business trip to the valley was to visit California Microwave. My first job out of RPI was as an engineer on the EF-111, an electronic counter measures laden derivative of the original F-111 swing-wing fighter / bomber. Had not yet heard of Silicon Valley at the time, but the siren call was already sounding.
The Times Square Strategy discussion I had with Eric Ries , was still top of mind, so instead of my standard CustomerDevelopment lecture , I offered my thoughts on: the origin of CustomerDevelopment, where we are today, and where does CustomerDevelopment go, and how you can help get it there.
Home Books for Startups Secret History-Bibliography Steve Blank Startup Resources Steve Blank Entries RSS | Comments RSS Categories Air Force (9) Ardent (9) Big Companies versus Startups: Durant versus Sloan (29) California Coastal Commission (3) Conservation (2) Convergent Technologies (1) CustomerDevelopment (98) CustomerDevelopment Manifesto (..)
I’ve built my company using the CustomerDevelopment Model from Day One. I recently completed the Validation step (less the industry analyst presentations) and am ready to move on to Customer Creation. Can I buy you lunch to share it with you? &# Yes, I’m serious. So the ask is made — shall it be given?
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 agile development.
Not being able to hear negative customer input is an extremely bad idea. Out of the Ashes A few of the key tenets of CustomerDevelopment , came from the ashes. era&# , but really interested in your take on these “free&# models through the prism of CustomerDevelopment. We all know how that ends up.
The CustomerDevelopment talk can be seen here. That said I will be giving a CustomerDevelopment talk at TIECON , Saturday May 16th, 1:30 thanks for asking. steve CustomerDevelopment is Hard. Thanks to Dave McClure and Leonard Speiser for the opportunity to speak. It starts at ~40:30 in the video.
Reducing Risk – Simulation versus CustomerDevelopment If you remember the first part of this discussion, startups face two types of risk; invention risk and/or customer/market risk. The CustomerDevelopment Process I teach and write about is designed to do just that.
Second, to share how my how my thinking about entrepreneurship as a distinct practice and how CustomerDevelopment as one of its central components has evolved over the last decade. Fourth, as a public official in the State of California , to offer a window on how public policy on California Coastal protection gets made.
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.
CustomerDevelopment This strategy of starting on faith, and quickly turning them into facts is the core of the CustomerDevelopment process. Employ customerdevelopment. Because at times facts may create cognitive dissonance with the beliefs that got you started and funded.
From the king of customerdevelopment, Steve Blank: [.] You don’t get grades for having resiliency, curiosity, agility, resourcefulness, pattern recognition and tenacity. You just get successful. Sometimes they just drop out and do their own thing. No one has to tell them to do that.
Before leaving California, the engineers gave me a course in this specialized receiver design. As a going away gift my roommates got me a joke disguise kit with a fake nose, glasses and mustache.
And you’d like me to do my talk on CustomerDevelopment and startups?” “No, we’re the other CIA.” On first glance it appears as if they are spending to much energy in the vertical portion of the jump, relative to the horizontal portion. Do you mean the Culinary Institute of America?
Resegmentation means these startups are trying to lure some of the current or potential customers away from incumbents by either offering a lower cost product, or by offering features that appealed to a specific niche or subset of the existing users. Do you know the archetype of their customers? Me – “Have you used Company x’s product?
CustomerDevelopment.) Unlike large corporations, startup meetings are not about achieving consensus for every objection raised. They are about forward motion, momentum and feedback loops (i.e. For a startup “No Corner Cases&# needs to be an integral part of your corporate DNA.
Filed under: CustomerDevelopment « Requiem For A Roommate 2 Responses steve , on October 21, 2010 at 7:05 am Said: what did Carl say at 1:12 ? BTW, the definition of entrepreneurship I describe at 2:50 into the video is described in detail in the post “ You’re Not a Real Entrepreneur.&#
That’s in stark contrast to the traditional Product Development Model where it’s expected a customer is already there and waiting and it’s simply a matter of [.] familiar with CustomerDevelopment you should be. It’s very different than the traditional product development model.
I can’t get this one out of my head. ———— The VENONA Project One of the most interesting (declassified) stories of cryptography is the deciphering of Soviet communications to their diplomatic missions in the U.S during World War II.
I was in New York last week with my class at Columbia University and several events made me realize that the CustomerDevelopment model needs to better describe its fit with web-based businesses. And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” It’s an impressive portfolio.
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