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The first hint lies in its name; this is a product development model, not a marketing model, not a sales hiring model, not a customer acquisition model, not even a financing model (and we’ll also find that in most cases it’s even a poor model to use to develop a product.) release of the product.
Two methods, Design Thinking and CustomerDevelopment (the core of the Lean Startup) provide the tactical day-to-day process of how to turn ideas into products. . While they both emphasize getting out of the building and taking to customers, they’re not the same.
CustomerDevelopment is all about gathering a list of what features customers want by talking to them, surveying them, or running “focus groups.” As the engineers were busy rearchitecting the original Stanford MIPS chip into a commercial product, one of my jobs was to find out what features customers wanted.
Lessons Learned by Eric Ries Sunday, September 7, 2008 CustomerDevelopmentEngineering Yesterday, I had the opportunity to guest lecture again in Steve Blank s entrepreneurship class at the Berkeley-Columbia executive MBA program. Its a nice complement on the product engineering side to his customerdevelopment methodology.
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.
Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customerdevelopment? But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." Many of us are not accustomed to thinking about markets or customers in a disciplined way.
Today open source software has slashed the cost of software development from millions of dollars to thousands. For consumer hardware, no startup has to build their own factory as the costs are absorbed by offshore manufacturers. the wave of internet commerce applications in the first decade of the 21 st century.
Berkeley Haas Business School was courageous enough to give me a forum teach the CustomerDevelopment Methodology. This wave of 1950′s/’60′s startups (Watkins-Johnson, Varian, Huggins Labs, MEC, Stewart Engineering, etc.) And these microwave engineers were working at startups – not large companies.
For example, if you’re building a mobile app, then the key activities are: app software development, user interface design and demand creation skills. Or if you’re building consumer electronics the key activities might be: low cost hardware design, high volume manufacturing, user interface design, consumer branding and retail distribution.
While our teams have mentors, socialize a lot and give great demos, the goal of our class final presentations is “ Lessons Learned ” – about product/market fit, pricing, acquisition/activation costs, pricing, partners, etc. Filed under: CustomerDevelopment , Lean LaunchPad , Teaching.
Lessons Learned by Eric Ries Monday, October 20, 2008 The engineering managers lament I was inspired to write The product managers lament while meeting with a startup struggling to figure out what had gone wrong with their product development process. This engineering manager is a smart guy, and very experienced.
In all of these new product and cost-focused new trends, a big problem has emerged that all of these movements have not addressed. Do you really want to spent $100k building a product to discover through CustomerDevelopment that the market is too small? I care about the thought that you’ve given to the customer problem.
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.
This post is about the how the Chinese government engineered technology clusters. There are close to 100 specialized incubators for companies founded by returned overseas Chinese scientists and engineers. The Torch Program is the worlds largest “lets engineer entrepreneurial clusters” experiment. – The Torch Program.
It was designed to bring together many of the new approaches to building a successful startup – customerdevelopment, agile development, business model generation and pivots. The first class was an introduction to the concepts of business model design and customerdevelopment.
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.
This year, at one of the universities where I teach in the engineering school, our quarter was going to start right after the New Year. Others complained that they had paid for plane tickets and it would cost them money to change, etc. Filed under: CustomerDevelopment , Lean LaunchPad , Teaching.
One of the things he mentioned was that when it came to decision-making he still tended to think and act like an engineer. 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. The same is true in your company.
The application of agile development methodologies which dramatically reduce waste and unlock creativity in product development. See CustomerDevelopmentEngineering for my first stab at articulating the theory involved) Ferocious customer-centric rapid iteration, as exemplified by the CustomerDevelopment process.
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.
— I just watched a very smart company try to manage innovation by hiring a global consulting firm to offload engineering from “distractions.” They accomplished their goal, but at a huge, unanticipated cost: the processes and committees they designed ended up strangling innovation. Engineering continually felt overwhelmed.
It’s often said that you shouldn’t talk about price during customerdevelopment interviews. ” How many times have you heard someone agree that “it would be great if someone did X,” but when show them someone did do X, but it costs $39.99, they don’t buy? 10,000/mo means larger companies only.
A month or two before the QuickTime public announcement in May, the SuperMac hardware engineers (who had a great relationship with the QuickTime team at Apple) started a “ skunk works ” project. In less than a month they designed a low-cost video-capture board that plugged into the Mac and allowed you to connect a video camera and VCR.
Often they’ll agree if it means a steep hourly discount or cheaper maintenance costs.) You build the product, then you have your banner customer and go get others. Don’t tell me “they need to see a working product before they’ll have a chat” or any other typical, lame excuse engineers (including me!)
This post is about the how the Chinese government engineered technology clusters. There are close to 100 specialized incubators for companies founded by returned overseas Chinese scientists and engineers. The Torch Program is the worlds largest “lets engineer entrepreneurial clusters” experiment. – The Torch Program.
The presentation didn’t have a single word about Lean Startups or CustomerDevelopment. Reply Dan Hodgins , on November 13, 2009 at 1:12 am Said: Hi Steve, Just listened to your “Retooling Early Stage Development&# for about the 10th time tonight as I was cleaning my room. Your results may vary.
Veritas , was the team building a low cost, residential wind turbine that average homeowners could afford. From a slow start of customer interaction they made major progress in getting out for the building. This week they refined their target market by building a map of potential customers in the U.S.
Continuous innovation requires the imagination and courage to challenge the initial hypotheses of your current business model (channel, cost, customers, products, supply chain, etc.) A company developing software would have to buy computers and license software from other companies and hire the staff to run and maintain it.
So I initially gravitated to the CTO title, and not VP of Engineering. But since I spent a long time in a hybrid CTO/VP Engineering role, I still have this nagging question. In my mind, theyre racking up costs (one month for that part, two months for that other part, uh oh). I mean, have you seen other people? Heres my take.
Computer hardware companies were faced with their customers asking for low-cost (relatively) desktop computers they had no experience in building. Their engineering teams didn’t have the expertise using off-the-shelf microprocessors (back then “real” computer companies designed their own instruction sets and operating systems.)
Five Easy Pieces – The Marketing Mission After a few months of talking to customers , talking to our channel and working with sales we defined the marketing Mission (our job) was to: Help Sales deliver $25 million in sales with a 45% gross margin. It will cost you your job.” Two paragraphs, Five bullets. It didn’t take more.
Signs of Success One of the things you do right in a startup, is you move from one cheap and cramped building to another as you grow, with desks, cubicles and engineers piled cheek to jowl. Engineers were packed in cubicles or desks right on top of each other? Now every engineer can have their own office. Stay hungry, stay lean.
Such direct experiences allows one to test critical “leap-of-faith” assumptions about what customers like and dislike. Customerdevelopment (the understanding of customer needs) must be married to agile development (a process which drives waste out of product development).
We had endless arguments internally about what features it should include, how the avatars should look, and how much it should cost. Finally the day came, we unleashed the landing page, emailed our existing customers, and started advertising online. Just load them all in and choose a low cost-per-click. I used to use $.05,
I was an engineer on the engineering team. For one, the engineers consider the artists stupid; the artists consider the engineers arrogant. The engineering team would then build that feature, mimicking the UI as close as they could using the current primitives supported by the system. The meeting was tense.
This approach is a the heart of breaking down the "time/quality/cost pick two" paradox , because these small investments cause the team to go faster over time. Its why, at my previous job, we were able to get a new engineer completely productive on their first day. Most engineers would ship code to production on their first day.
If you are a practitioner of CustomerDevelopment, ESL was doing it before most us were born. The Army offered Fred Terman, the Dean of Engineering at Stanford, a $5M contract to build an electronics countermeasures lab. HP had an ethical culture, entrepreneurial spirit, and deep Stanford engineering department connections.
Although it costs to pay down the principal, we gain by reduced interest payments in the future. The human tendency to moralize about debt affects engineers, too. We can choose to continue paying the interest, or we can pay down the principal by refactoring the quick and dirty design into the better design.
—————- The next piece of the Secret History of Silicon Valley puzzle came together when Tom Byers , Tina Selig and Mark Leslie invited me to teach entrepreneurship in the Stanford Technology Ventures Program ( STVP ) in Stanford’s School of Engineering. My office is in the Terman Engineering Building.
If we showed the Toyota Production System to an Internet protocol engineer, it is likely that he would remark, "That is a tail-dropping FIFO queue. For example, heres him discussing our collective blindness to queues: To understand the economic cost of queues, product developers must be able to answer two questions.
Which comes to the second major principle: halt work that leads to more waste, even if it means abandoning sunk costs. Just because something looks pretty, or feels like a good idea, or has a lot of sunk cost in it, does not mean it should be pursued. This is a version of the andon cord technique from lean manufacturing.
Invention Risk - Click to Enlarge For companies building web-based products, product development may be difficult, but with enough time and iteration engineering will eventually converge on a solution and ship a functional product - i t’s engineering, not invention. In these markets it’s all about customer/market risk.
If you believed the opinions in the marketing department, the customers were in science, engineering, color desktop publishing, and a variety of applications with no single industry or application dominating the list. Within these applications how did our customers spend their day? The obvious one’s were who were they?
Lessons Learned by Eric Ries Saturday, September 13, 2008 SEM on five dollars a day How do you build a new product with constant customer feedback while simultaneously staying under the radar? Trying to answer that question at IMVU led me to discover Google AdWords and the world of search engine marketing. SEM is a simple idea.
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