STARTIFY7 Mini Novi Sad, Serbia: 24th-25th October

Kate Penney

University of Sheffield

Workshop aims over 2 days

• To raise entrepreneurial awareness, knowledge and skills

By the end of the mini academy you will;

• Have identified a business opportunity in digital health using the business model canvas

• Use lean methodology to find an entrepreneurial solution to a problem

• Have made an “elevator pitch” to present the key points of your idea

But first, introductions & icebreaker

Why lean, why collaborative, why themed?

Lean Business Thinking

An introduction

Outline

• Why planning? Why lean?

• Components of lean planning

• How to implement a process of lean planning

• Lean planning for startups

The Business Plan Fallacy

• According to conventional wisdom, the first thing every founder must do is create a business plan

• A business plan describes the size of an opportunity, the problem to be solved, and the solution that the new venture will provide

• A business plan is essentially a research exercise written in isolation at a desk before an entrepreneur has even begun to build a product.

• The assumption is that it’s possible to figure out most of the unknowns of a business in advance before doing business

Constraints to Growth

1. The high cost of getting the first customer and the even higher cost of getting the product wrong.

2. Long technology development cycles.

3. The limited number of people with an appetite for the risks inherent in founding or working at a start-up.

4. The structure of the venture capital industry, in which a small number of firms each needed to invest big sums in a handful of start-ups to have a chance at significant returns.

5. The concentration of real expertise in how to build start-ups

Traditional to Lean

Dimension Traditional Lean

Strategy • Business Plan • Implementation driven

• Business Model • Hypothesis driven

New Product/Process • Product management • Step-by-step plan

• Customer development • Test hypothesis

Engineering • Build product • Build MVP

Organisation • Structured & static • Agile & dynamic

Financial Reporting • Accounting • Metric based

Failure • Exception • Expected

Sped • Moderate • Rapid

https://hbr.org/2013/05/why-the-lean-start-up-changes-everything

What we know

1. Business plans rarely survive first contact with customers. Boxer Mike Tyson once said about prefight strategies that “Everybody has a plan until they get punched in the mouth.”

2. No one besides venture capitalists and the late Soviet Union requires five-year plans to forecast complete unknowns - these plans are generally fiction, and dreaming them up is almost always a waste of time.

3. Start-ups are not smaller versions of large companies and do not follow master plans. The ones that ultimately succeed go quickly from failure to failure while adapting, iterating, and improving their initial ideas as they continually learn.

Being Lean

• Eric Ries developed the ‘lean model’ in 2011

• Lean Startup provides a scientific approach to creating and managing startups

• Makes the process of starting a company less risky - favours experimentation over elaborate planning

• Premised on getting a desired product to the customer faster

• Lean Startup methods teach you how to drive a startup and grow a business with maximum acceleration.

• It is an approach to new product development

Principles of Lean

Three Principles:

1. Rather than engaging in months of planning and research accept that all you have on day one is a series of untested hypotheses and complete the canvas

2. Lean start-ups use a “get out of the building” approach - revising assumptions before redesigning with minor adaptations (iterations) or more substantive ones (pivots) before testing again

3. Lean start-ups practice something called agile development working hand-in-hand with customer to develop a minimum viable products

Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without

ever showing the product

Learn

• Learning is not an excuse for doing

• Validated learning is about demonstrating progress

• Establish current and future business prospects

• An alternative to business planning or forecasting

• Understand the underlying principles – think of the start-up as an experiment

• Each step/iteration validates the idea to gauge whether the business can work

Take the Leap

• The creation of a Minimum Viable Product can represent a leap of faith

• The MVP is about external validation not internal review

• Measuring is critical to whether developments are resulting in business progress

• Avoid analysis paralysis or just doing it – get a balance

Test

• A MVP astest way to get through the Build-Measure-Learn loop

• First products/services are not meant to be perfect - any work beyond what is required to learn is a waste

• If it is impossible to prototype then video launch like Dropbox

Measure

• Getting beyond a model on paper – work out where the start-up is and what to experiment with to develop further.

• Three steps of innovation accounting 1. Get real data from the MVP

2. Tune the product/service from baseline to ideal

3. Pivot or persevere – but don’t fall foul to the myth of perseverance

• Make sure that you are learning rather than optimizing

Your challenge…

You will be given a health issue (1-8)

As a group you will need to

• Identify the need

• Design a solution and prototype

• Identify your customer (not user)

• Produce a draft lean business plan and value proposition

• Pitch your idea

http://www.get-ehealth.eu/repository/#Fillthegap

http://www.get-ehealth.eu/fill-the-gap/full-list-of-needs/

Some key ideas

Thinking like an entrepreneur, a lean approach

Ideation webinar

Personalised digital health

• Advancements in technology enable and engage people to take more control of their own health. An increase in demand and limits on supply present the opportunity through technology to play role in enabling individuals to have more control of their own health.

Logistics; transportation, waiting times,

Medical records

Loneliness and isolation

Diet and exercise

Responsible alcohol

consumption

Ageing population

Mental health and well being

In teams you will need

• Flip chart paper and pens

• Need/Problem sheet

• 15 minutes to brain storm a business opportunity for digital health.

1 Provide feedback on how treatment care and lifestyle changes

impact on health and wellbeing

2 Help to manage a personal mental health crisis

3 Provide feedback on how treatment care and lifestyle changes impact on health and wellbeing

4 Mobile technology to support responsible alcohol consumption in youngsters

5 Holistic and adaptive innovations to support older citizens

6 Speed up the access to specialized treatment for patients with allergies

7 Intelligent video or other surveillance technology to help patients with intellectual disability or mental diseases

8 User identification to improve the remote tele monitoring of patients

Entrepreneurial Ideas-Refine

• Does it solve a problem?

• Do people value it?

• Would it save money?

• Is it improved quality?

• Does make things better?

• Would improve convenience?

• Will it provide entertainment?

• Is it enough of a change?

Forming teams

Business Model canvas

• Business model canvas

Pitching your idea

• STARTIFY7 Pitching

• Owlet example of pitch

Pitching

• Owlet pitch

Preparing your pitch

• Over to you

• Apply the key points

• Produce a 30 second elevator pitch

• Prepare a 4 minute business idea pitch

startify7@sheffield.ac.uk