Business 101.1A class in business. And entrepreneurship.

Fall 2016NYU ITP

October 3, 2016

Josh KnowlesJen van der Meer

Extra love from Tom IgoeAnd the Leslie E-Lab

Syllabus Map

START + Form

Teams

Business Models

Customer Development

How to Interview Value

+ The Purpose of Business

ValuesMotivation

TeamCustomer

Relationships+ Channels

AnalyticsKey Resources

Activities Partners Biggest Vision

Analyze Test

The Money

Plan MVP

Turning Insights Into

Features

More MVP

How small, How big?

Launch MVP

Lessons Learned

Go/No Go?

Sketch Paper Prototype

Oz Test

Smallest MVP

Tech Architecture

The center of a business model: value proposition

Versions of the truth:

Value Prop in Practice

Crossing the Chasm

The Value prop Canvas (osterwalder)

Value+ The Purpose

of Business

Smallest MVP

TEAMS

FragrancesYu Shi

Joy (Eun Jee Kim) Igor Carrasco

Fashion SocentSoy (Soyeon Chung)

Peter Winne Asad Lilani Lin Yang

Prisons Social Community for

DesignersDhruv

Daniel Silber Baker Molly O’Shea Isobel Donjon

Predictive Social Listening

Tattoo Artist MatchingFernanda

Eric Ramirez Javiera Valle Toro

Fashion 3 DAngie Aguilar

Olivia

Ergonomic Design Ashley Williams

Yan Max Theony

Malcolm Pittman

VALUE PROPOSITION

CREATED BY: CREATED FOR: VERSION:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

HOW WILL YOUR BUSINESS WORK?

Whom do you help?

What pains do you solve?

What do you

uniquely offer?

Distinct segmentsWhere do

we reach them?

How do we get keep

and grow?

How will you

charge?

What will it cost?

What do you need to have?

How do you do it?

Who will help you?

CREATED BY: CREATED FOR: VERSION:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

GET TO VALUE PROPOSITION FIT

CREATED BY: CREATED FOR: VERSION:

Customer Segments

Customer Relationships

Value PropositionKey ActivitiesPartners

Key Resources

Customer Channels

RevenuesCosts

Source: Strategyzer Osterwalder, Pigneur

AND THE REST OF THE BUSINESS MODEL WILL FOLLOW

Gain Creators

Pain Relievers Pains

Gains

Products& Services

CustomerJob(s)

Value Proposition Customer Segment

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer

The Value Proposition Canvas

strategyzer.com

WHAT IS A BUSINESS MODEL FOR?

DEFINE

WHAT IS A VALUE PROPOSITION

VALUE PROPOSITION VS. VALUE PROPOSITION

BRANDING VS. INNOVATION

THE VALUE PROP SCHOOLS

THE VALUE PROP CONFUSION

VALUE PROPOSITION VALUE PROPOSITION

PAIN POINTSBRAND PILLARS

JOBS TO BE DONEREASONS TO BELIEVE

PAIN RELIEVERS

DIFFERENTIATION

ORIGIN: CHRISTENSENORIGIN:

VALUE PROP CANVAS

STRATEGY, MAD AVE INNOVATION THEORY

UNIQUE SELLING PROPS

THE PROBLEM

FACTORY VIEW OF VALUE CREATION

R&DThis is where design and brand types got to play

This was typically very engineering /science heavy

NPD

“The social responsibility of corporations is to increase profits.”

Milton Friedman, 1970

SHAREHOLDER VIEW OF COMPANIES

THE SOLUTIONEEr’S SOLUTION

INNOVATORS VIEW OF VALUE CREATION

THE SOLUTIONEEr’S SOLUTION

INNOVATORS VIEW OF VALUE CREATION

Disruption Theory - Christensen Innovator’s Solution

THE SOLUTIONEEr’S SOLUTION

INNOVATORS VIEW OF VALUE CREATION

“Excuse me, but could you please tell me what job you were needing to get done for yourself when you came here to hire that milkshake?”

THE SOLUTION SOLUTION

INNOVATORS VIEW OF VALUE CREATION

Job-defined markets are generally much larger than product category–defined markets.

Marketers who are stuck in the mental trap that equates market size with product categories don’t understand who they are competing against from the customer’s point of view.

Clayton Christensen, Innovator’s Solution

MILKSHAKE INSIGHTS

The .. mistake was to adopt a narrow view of the type of food people have always eaten in the morning, as if all habits were deeply rooted traditions instead of accumulated accidents.

Neither the shake itself nor the history of breakfast mattered as much as customers needing food to do a nontraditional job – serve as sustenance and amusement for their morning commute – for which they hired the milkshake.

Clay Shirky, Cognitive Surplus

MORE MILKSHAKE MUSINGS

https://www.youtube.com/watch?v=suRDUFpsHus

KODAK CAROUSEL ON MAD MEN

VALIDATION + GENERATION

Be playful with your value proposition, human-centered,

focused on whom you are here to serve

Jen van der Meer

VALIDATION + GENERATION

LET’S PLAY

Pick a company:

Uber Airbnb Warby Other???

VALUE PROP MADLIBS

VALUE PROPOSITION

My organization is developingcompany name defined offering

to help

Why we’re better:

to solvetarget customer segment defined problem or pain

our differentiation

Why we’re believable:our proof point, secret sauce

NOW YOU

VALUE PROP MADLIBS

VALUE PROPOSITION

My organization is developingcompany name defined offering

to help

Why we’re better:

to solvetarget customer segment defined problem or pain

our differentiation

Why we’re believable:our proof point, secret sauce

PAIN TIME

WHY DOES PAIN MATTER IN STARTUPS?

WHY DOES PAIN MATTER IN STARTUPS?

CROSSING THE CHASM

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

Geoffrey Moore: Crossing the Chasm.

At the start focus here

WHY DOES PAIN MATTER IN STARTUPS?

CROSSING THE CHASM

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

Geoffrey Moore: Crossing the Chasm.

The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority).

You do this by reducing the risks that the pragmatists are unwilling to take on

WHY DOES PAIN MATTER IN STARTUPS?

QUIZ: WHERE SHOULD YOU FOCUS AND WHY?

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?

WHY DOES PAIN MATTER IN STARTUPS?

FIND THE GROWTH SKI JUMP

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

Geoffrey Moore: Crossing the Chasm.

WHY DOES PAIN MATTER IN STARTUPS?

FIND THE GROWTH SKI JUMP + GUARD RAILS

Agile Development

Customer Discovery

Have we identified a customer segment with a clearly defined, known pain point?

Does out offer and experience deliver a solution to our customer’s problem?

Solution

Problem

Gain Creators

Pain Relievers Pains

Gains

Products& Services

CustomerJob(s)

Value Proposition Customer Segment

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer

The Value Proposition Canvas

strategyzer.com

FINAL Q TODAY

DOES THE CURRENT WAY WE MAKE NEW COMPANIES CHALLENGE THE SHAREHOLDER-ENTERIC VIEW OF THE PURPOSE OF A COMPANY?

LE FIN

CONTACT:

Jen or Josh for Office Hours