play the customer development game

Play the Customer Development Game

Agile 2013, Aug 6 2013

Adrian Howard (@adrianh) quietstars.com

Hello!

Ask Questions

Disclaimer: Eh?

Who are you?

Business plans

en.wikipedia.org/wiki/File:Steve_Blank.jpg

“A startup is a temporary organization designed to search for a repeatable and scalable business model.”

- Steve Blank

“A startup is a temporary organization designed to search for a repeatable and scalable business model.”

- Steve Blank

From “The Startup Owner's Manual” by Steve Blank

Marriage vs Date

Plan vs Map

Exercise:Your founding a

startup!

How do we describe our map?

Switzerlandflickr.com/photos/eurapart/6357870755/

The Business Model Canvas

• by Alexander Osterwalder & Yves Pigneur

• The Business Model Canvas

•A tool for developing and documenting business models

Exercise

• Using stickies, fill out the BMC for your business model

• Remember - ask questions

The Lean Startup“A true experiment follows the scientific method. It begins with a clear hypothesis that makes predictions about what is supposed to happen. It then tests those predictions empirically”

The Lean Startup

• Come up with hypothesis

• Design experiment

• Run experiment

• Validate/Invalidate hypothesis

• Repeat

The Lean Startup

Pull not Push

Example

• Zappos

• Annual sales > US$1 billion

•Hypothesis: Is there a demand for superior online shoe shopping

• Experiment: Took photos from shoe shops, came back and bought them full price if customer bought them online

Example from The Lean Startup, p57-58

Exercise

• Pick a key item on the canvas

• Rephrase as a hypothesis

• Think of as many different experiments to verify hypothesis as you can

Magic Bag-O-Validation

Pivots• Zoom-in

• Zoom-out

• Customer Need

• Customer Segment

• Platform

From The Lean Startup, chapter 8

• Business Architecture

• Value Capture

• Engine of Growth

• Channel

• Technology

Round 2

The Good, the Bad & the Ugly

Alignment on value

Helps build an experiment culture

It’s hypotheses before, during and after development

Metric-First Development

Encourages value-oriented infrastructure

Hypotheses talk about business value directly

Where are the running, tested

features?

Where’s the user?

Where’s the delight?

Trail of undead experiments

What happens when I can’t

validate cheaply?

What about non-startup contexts?

Some folk find reality hurts

Further Reading

• Lean Startup by Eric Ries

• Running Lean by Ash Maurya

• The Four Steps to the Epiphany by Steve Blank

• The Startup Owner's Manual by Steve Blank

Questions?

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@adrianhquietstars.com

slideshare.net/adrianhadrianh@quietstars.com

Thank You