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Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. ProductDevelopment – Getting Funded as The Goal In a traditional productdevelopment model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition.
I asked Tsutsumi-san to write a guest post for my blog to describe his experience with CustomerDevelopment in Japan. faster than Ethernet and ran data but plus voice and video. But customers didn’t agree. in a startup no facts exist inside the building, get out of the building to talk to customers”.
Finally, I’ll write about how Eric Ries and the Lean Startup concept provided the equivalent model for productdevelopment activities inside the building and neatly integrates customer and agile development. Part 4 of the CustomerDevelopment Manifesto to follow.
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.
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.
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. They recorded many of their sessions on video. They taped people using existing products.
New strategic direction in companies with loyal customers have different consequences then when you had no customers Acquiring new customers are a lot more expensive that converting existing ones. Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.
Next, you have to deal with the daily crisis of productdevelopment and acquiring early customers. And here’s where life gets really interesting, as the reality of productdevelopment and customer input collide, the facts change so rapidly that the original well-thought-out business plan becomes irrelevant.
They couldn’t keep up with the fast productdevelopment times that were enabled by using standard microprocessors. So their management teams were insisting that they OEM (buy from someone else) these products. The answer depends on your answer to two questions: which step in the CustomerDevelopment process are you on?
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 productdevelopment activities inside the building and neatly integrates customer and agile development.
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. We’ve managed startups like this forever; there is no other way to manage them.” Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.
This post describes how the traditional productdevelopment model distorts startup sales, marketing and business development. The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers. Here’s what the productdevelopment diagram looks like from a sales perspective.
Market Risk vs. Invention Risk - Click to Enlarge For companies building web-based products, productdevelopment 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. Blog at WordPress.com.
In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for productdevelopment activities inside the building and neatly integrates customer and agile development. As a result, the standard productdevelopment model is not only useless, it is dangerous.
Filed under: Marketing , Technology , Venture Capital | Tagged: Steve Blank , Venture Capital , Entrepreneurs , Early Stage Startup , Tips for Startups « Customer Analytics – From Those Who Should Know SuperMac War Story 10: The Video Spigot » 14 Responses Michael F. Blog at WordPress.com.
And other startups are in a New Market — creating a market from scratch (like Apple with the iPhone, or iPod/iTunes.) (“Market Type&# radically changes how you sell and market at each step in CustomerDevelopment. It’s one of the subtle distinctions that at times gets lost in the process. Blog at WordPress.com.
This productdevelopment diagram had become part of the DNA of Silicon Valley. That’s in stark contrast to the traditional ProductDevelopment 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.
I’d been around the web long enough to remember the dozens of companies before YouTube that tried to create crowdsourced video sites and failed. 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.
The disadvantage is that its methodology was based on the old waterfall model of productdevelopment and not the agile and lean methods that startups use today. It taught lean theory ( business model design , customerdevelopment and agile engineering) and practice. VentureWell Lean LaunchPad Master Video Library.
It must cross boundaries, working cooperatively with other divisions in your business such as sales, marketing, social media, PR, productdevelopment, and the like. These may include references, referrals, testimonials, serving on advisory boards, and participating in your customer communities, he explains.
After 20 years of working in startups, I decided to take a step back and look at the productdevelopment model I had been following and see why it usually failed to provide useful guidance in activities outside the building – sales, marketing and business development. So what’s wrong the productdevelopment model?
This series of posts is a brief explanation of how we’ve evolved from ProductDevelopment to CustomerDevelopment to the Lean Startup. The ProductDevelopment Diagram Emerging early in the twentieth century, this product-centric model described a process that evolved in manufacturing industries.
For some, this process will be a productdevelopment exercise, finding the best way to differentiate a new product or feature release. Conversely, if you’re early in your business journey, this could define your entire product and marketing strategy. A unique selling proposition shouldn’t be used as a bandaid.
Lessons Learned by Eric Ries Monday, July 13, 2009 The Principles of ProductDevelopment Flow If youve ever wondered why agile or lean development techniques work, The Principles of ProductDevelopment Flow: Second Generation Lean ProductDevelopment by Donald G. Reinertsen is the book for you.
Unintended Lessons « Steve Blank steveblank.com/2009/09/28/unintended-lessons – view page – cached + CustomerDevelopment Manifesto: The Path of Warriors and Winners (part 5) + Can You Trust Any VC’s Under 40? Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.
Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customerdevelopment? When we build products, we use a methodology. But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." a roadmap for how to get to Product/Market Fit."
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.
Department of Defense, delivers geospatial intelligence (satellite imagery video, and other sensor data) to policymakers, warfighters, intelligence professionals and first responders. Filed under: CustomerDevelopment , Hacking For Defense , Science and Industrial Policy. The NGA, an organization within the U.S.
Department of Defense, delivers geospatial intelligence (satellite imagery video, and other sensor data) to policymakers, warfighters, intelligence professionals and first responders. Filed under: CustomerDevelopment , Hacking For Defense , Science and Industrial Policy. The NGA, an organization within the U.S.
Eighty some pages later I realized that a) I had some great war stories as a good marketeer and failed CEO, b) I’d have to pay my wife and kids to read them, c) the three of them were probably the entire total available market, and d) when I looked at what I had done and what other entrepreneurs had done at their startups, that there was a pattern.
Durant Versus Sloan – Part 1 « Steve Blank steveblank.com/2009/10/01/durant-versus-sloan-part-1 – view page – cached + CustomerDevelopment Manifesto: The Path of Warriors and Winners (part 5) + Can You Trust Any VC’s Under 40? Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.
Through trial and error, hiring and firing, successful startups all invented a parallel process to productdevelopment. In particular, the winners invent and live by a process of customer learning and discovery. It’s a process that doesn’t exist in large companies with existing customers and markets.
They have many, many man-years of development and customerdevelopment in them. You have your general management meeting and in your general management meeting you talk about productdevelopment, about marketing and about finance. Edwin: There are a million others. It’s bundled in different groups.
Another great way to test your idea is to create a minimum viable product, or MVP. This is the simplest version of your product minus the frills and frosting. It’s a particularly popular strategy in the world of productdevelopment and is used to quickly and quantitatively test a product or a product feature.
This doesn't mean pointing to the product and describing the product's value, but rather the marketing provides value itself. Struggling to explain the successes and failures of those companies, I discussed principles like continuous deployment, customerdevelopment, and a hyper-accelerated form of agile. It's a big tent.
Lessons Learned by Eric Ries Sunday, September 7, 2008 CustomerDevelopment Engineering 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.
In an early stage startup, instead of sales being up front, the point departments are likely to be productdevelopment and customerdevelopment. Later on in this same company’s life, sales will become the pointy end and productdevelopment moves to a supporting role. Who’s on the Sharp End?
I believe it is the best introduction to CustomerDevelopment you can buy. As all of you know, Steve Blank is the progenitor of CustomerDevelopment and author of The Four Steps to the Epiphany. You can imagine how well that worked. On the minus side, that has made it a wee bit hard to understand.
Lessons Learned by Eric Ries Monday, March 16, 2009 Combining agile development with customerdevelopment Today I read an excellent blog post that I just had to share. In most agile development systems, there is a notion of the "product backlog" a prioritized list of what software is most valuable to be developed next.
I worked for a online video tech company and thought that would be the ticket to meeting a tech co-founder but there were 2 problems. I pick my cofounder's brain almost daily about the inner workings of our product, so that I can be better informed about the tech side of things.
Startups especially can benefit by using technical debt to experiment, invest in process, and increase their productdevelopment leverage. The biggest source of waste in new productdevelopment is building something that nobody wants. Leverage productdevelopment with open source and third parties.
Lessons Learned by Eric Ries Sunday, April 26, 2009 Productdevelopment leverage Leverage has once again become a dirty word in the world of finance, and rightly so. But I want to talk about a different kind of leverage, the kind that you can get in productdevelopment. Its a key lean startup concept. Great post!
Also SJ's obsession with better taste (positively) contributes to the overall productdevelopment process. There are some good anecdotes about Chief Engineers in the Toyota ProductDevelopment Book. Some of these reaffirm that they do indeed validate assumptions through interaction with customers.
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