Startup Thinking 101 for Libraries: Workshop

transcript

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MONTEREY

CALIFORNIAIL 2014startup

thinking 101M.J. D’ELIA & HELEN KULA UNIVERSITY OF GUELPH UNIVERSITY OF TORONTO MISSISSAUGA

MCS*4100 ENTREPRENEURSHIP

welcome1

MCS*4100: ENTREPRENEURSHIP

agenda

welcome explore the challenge

biz model canvas !

customer development discovery & validation

objectives

★ apply principles of startup thinking ★ map out a model for a new idea ★ develop a plan to validate your idea ★ focus on creating value

APRIL 8, 2014

Helen Kula

Head, Learning & Curriculum Support Team University of Guelph mdelia@uoguelph.ca

@mjdelia

Librarian, Institute for Management and Innovation U of Toronto Mississauga helen.kula@utoronto.ca

@helenkula

M.J. D’Elia

about us

plans vs. models

poor biz plan process

built on assumptions

(secondary data)

assumptions considered

“facts”

“facts” are not challenged or

altered> > >

poor biz plan process

plan becomes static (it is not

rewritten)

company-centric

approach

productivity is measured against

plan> >

first contact

“no plan survives first contact with its customers.”

~ Steve Blank

biz model approach

built on assumptions

(secondary data)

assumptions considered

“facts”

“facts” are not challenged or

altered

built on observation

(primary data)

assumptions are

acknowledged

assumptions altered based on

new learning

biz model approach

plan becomes static (it is not

rewritten)

company-centric

approach

productivity is measured against

model continues to be rewritten

(dynamic)

customer-centric

approach

productivity is measured by performance

the scenariopractice startup thinking

recommendations

★ choose a: ★ user/patron focused product or service ★ new idea or approach ★ challenge that targets a subset of your

user population

scenario

★ public library partnership with local hotels to offer library collections to hotel guests

★ hotels can sign guests up for a free library card during their stay

explore the challenge

customers / users

★ who do you expect will use your product or service?

★ what problem(s) are you solving for your potential users?

problem / solution

★ what do your potential users do right now to solve those same problems?

★ why would they choose your solution over their current solutions?

analogs

★ successful predecessor examples ★ who do you want to emulate/copy? ★ what elements of their approach can you

borrow?

antilogs

★ predecessor examples that did not work ★ what do you want to do differently?

biz model canvas

APRIL 8, 2014

customer segments

“...defines the different groups of people or organizations an enterprise aims to reach and serve.”

~BMG, p. 20

customer segments > questions

★ for whom does the company/project create value?

★ who are their most important customers/users?

APRIL 8, 2014

value proposition

“...describes the bundle of products and services that create value for a specific customer segment.”

~BMG, p. 22

value proposition > questions

★ what value does the idea deliver? ★ which problem is getting solved? ★ which needs will be satisfied? ★ what bundles of products/services do

they offer each customer segment?

APRIL 8, 2014

channels

“...describes how a company communicates with and reaches its customer segments to deliver a value proposition.”

~BMG, p. 26

channels > questions

★ how do the segments want to be reached?

★ how are they reached now? ★ how is the company integrating with

customer routines?

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customer relationships

“...describes the types of relationships a company establishes with specific customer segments.”

~BMG, p. 28

customer relationships > questions

★ what type of relationship does each segment expect?

★ which relationships have been established?

★ how are they integrated with the rest of the model?

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revenue streams / return

“...represents the cash a company generates from each customer segment (costs must be subtracted from revenues to create earnings).”

~BMG, p. 30

revenue streams > questions

★ for what value are customers really willing to pay?

★ for what do they currently pay? ★ how are they currently paying? ★ how much does each revenue stream

contribute to overall revenue?

APRIL 8, 2014

key resources

“...the most important assets required to make the business model work.”

~BMG, p. 34

key resources > questions

★ what key resources do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams?

APRIL 8, 2014

key activities

“...describes the most important things a company must do to make its business model work.”

~BMG, p. 36

key activities > questions

★ what key activities do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams?

APRIL 8, 2014

key partnerships

“...describes the network of suppliers and partners that make the business model work.”

~BMG, p. 38

key pARTNERSHIPS > questions

★ who are the key partners? ★ who are the key suppliers? ★ which key resources do you need from

someone else? ★ which key activities do partners

perform?

APRIL 8, 2014

cost structure

“...describes all costs incurred to operate the business model.”

~BMG, p. 40

cost structure > questions

★ what are the most important costs inherent in our business model?

★ which key resources are most expensive?

★ which key activities are most expensive?

customer development

KP KA VP

, p. 7

biz model

KP KA VP

, p. 7

biz model

ASSUMPTIONS

(LEAPS OF FAITH)

★ four-step framework ★ discover and validate your market ★ built the right product features ★ solve customers’ needs ★ tested methods for acquiring customers ★ deployed resources to scale business

★ process by which you question and test the core assumptions of your idea

cust dev > 1. customer discovery

customer discovery

problem-solution fit

proposedmvp

★ a product solves a problem for an identified group of users

cust dev > 2. customer validation

customer validation

product-market fit

biz model

sales map

★ the market is large enough to build a viable business

cust dev > 3. company creation

company creation

scale execution

★ the business is scalable through repeatable sales

cust dev > 4. company building

company building

scaleorganization

scaleoperations

★ company grows and operational processes are created to support growth

cust dev > framework

customer discovery

customer validation

company creation

company building

proposedmvp

product-market fit

biz model

sales map

scale execution

scaleorganization

scaleoperations

cust dev > pivot

customer discovery

company creation

company building

proposedmvp

product-market fit

biz model

sales map

scale execution

scaleorganization

scaleoperations

customer validation

“...a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.”

~ Eric Ries, The Lean Startup

pivot > based on learning

“A pivot requires that we keep one foot rooted in what we’ve learned so far, while making a fundamental change in strategy in order to seek even greater validated learning.”

discovery + validation

cust dev > first stage

customer discovery

company creation

company building

proposedmvp

product-market fit

biz model

sales map

scale execution

scaleorganization

scaleoperations

customer validation

empathy map > bonus worksheet

★ understanding the mindset of the user ★ influences ★ pressures ★ pains, gains

★ anticipating their needs

BMG, p. 131

instinct

“There is no way to remove the human element--vision, intuition, judgment--from the practice of entrepreneurship, nor would that be desirable.”

reminders for application

There are no facts inside your

building, so get outside.

The best startup ideas ideas come

from noticing.

Determine what you want to learn before you build.

Build a minimum viable product

with the smallest possible feature

No business plan survives first contact with customers.

Failure is an integral part of

the search.

evaluationwhat did you think?

APRIL 8, 2014

Helen Kula

Head, Learning & Curriculum Support Team University of Guelph mdelia@uoguelph.ca

@mjdelia

Librarian, Institute for Management and Innovation U of Toronto Mississauga helen.kula@utoronto.ca

@helenkula

M.J. D’Elia

contact info

references

Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch.Cooper, B. & Vlaskovits, P. (2010). The Entrepreneur’s Guide to Customer Development. Newport Beach, CA: Cooper-VlaskovitsGreenberg, D., McKone-Sweet, K. & Wilson, H. J. (2011). The New entrepreneurial leader. San Francisco: Berrett-Koehler Publishers.Kiefer, C. F., Schlesinger, L. A. & Brown, P. B. (2010). Action trumps everything. Duxbury, MA: Black Ink PressKomisar, J. & Mullins, R. (2009). Getting to Plan B. Cambridge, MA: Harvard Business.Martin, R. (2009). The design of business. Boston: Harvard Business Press. Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: Wiley.Ries, E. (2011). The Lean Startup. New York: Crown Business.

Startup Thinking 101 for Libraries: Workshop

Education