entrepreneurship: lean startup and customer development

Click here to load reader

Post on 15-Jan-2016

53 views

Category:

Documents

0 download

Embed Size (px)

DESCRIPTION

Entrepreneurship: Lean Startup and Customer Development. Lana Bachman BUS 527 Special Topics in Entrepreneurial Management (Creativity and Innovation in Business and IT) May 22, 2014. - PowerPoint PPT Presentation

TRANSCRIPT

Lean

Entrepreneurship: Lean Startup and Customer Development Lana BachmanBUS 527Special Topics in Entrepreneurial Management (Creativity and Innovation in Business and IT)May 22, 2014IMVU Case Study: Eric Ries Lean Startup approachSnaptaxt story: Lean Startup from a big corporation Intuit

Founder of the Lean startup approach2

New- product get out of the office directly interact with customers for feedback vs. sticking w/ step by step plan inhouse

Engineering building incrementally vs, waterfall creation designing the product completely before starting to build

Organization hire for learning vs, execute

Financial reporting acquisition cost of customers vs. traditional accounting

Failure- expected pivot on ideas fire ideas vs. firing employee

Concern about taking on venture capitalists

Speed- get it out there right away vs, releasing when product is finished3

h

IMVU: Lean Startup

1 million VCTeam centeredBetaCulture- Transparency There: Traditional 40 million VCHierarchicalBakedCulture- information-hiding

Eric Ries & Will HarveyEric Ries- 16 wrote computer science and game programming books. Will Harvey- created a best selling video game at 15

Online socializing 3d avatar- based instant messaging platformHow the world works- revenue from supplementary products for there avatars, credits/currency $25 bundles, or earn credits by chatting or inviting friends. ex; clothing high switching cost deter from moving to a new provider.

Beta: bug riddenbootstrapping usually refers to the starting of a self-sustaining process that is supposed to proceed without external inputBaked postponed multiple timesWondered whey they didnt just ship it kept adding new features

What could they tell us besides that we were right did have team focus groups but were geared to tell then what they wanted to hearWould be subscribers simply did not enjoy the service enough to pay for it

Both Harvey & Ries left there to start IMVU4What Is Pivot?Pivot: A change to business model component based on customer feedbacks. A pivot is not a failure.

Pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, engine of growth, etc.Eric Ries, The Lean Startup, 2013.Pivots are vision driven.

Design Thinking: Creativity & Innovation- # Minder Chen, 2012-2014Teens vs. adults

Customer feedback

Teen-find an easy way to charge teens & im language ex: asl

Adults wanted office attire, office scenes & handshaking

5

The Customer Development ProcessTry many times before you get it right. It is OK to fail so plan to learn from it.Only move to the next stage when you learn enough and reach the escape velocityhttp://www.ctinnovations.com/images/resources/Startup%20Owners%20Manual%20-%20BlankDorf.pdf

More startups fail from a lack of customers than from a failure of product developmentBoard of Directors: Steve BlankCustomer feedback

Contain a cash burn rate- financing a bridge to profitability-not the main focus takes vcs off center stage. Start ups often get a windfall of cash, risky spending & lose equity. Focused on breaking even as quickly as possible. Very careful with spending Team of six customer liaison $5 a day google ad words 100 clicks a day to stay afloat. Test critical assumptions early- beta vs baked buggy & chutzpah to charge in the beginning Take high-touch approach- Customer feedback emails, blogs, surveys, chat forums, tracking website moves. Find out what's working & what's not

6The Lean Start-Up

Steve Blank, "Why The Lean Start-up Change Everything," HBR, May 2013. (link)Split tested- split up users to see if a change made a positive effect on ims or purchases Earlyvangelists- core group offering suggestions so can tailor their products according to customer feedback7

Design Thinking: Creativity & Innovation- # Minder Chen, 2012-2014The pivot that worked! Added feature enabled users to charge credits to there mobile phones providing teens a convenient way to pay. Skeptics: Copycat problems, bugs damages brand reputationPutting the product out there as quickly & cheaply as possible based on consumer feedback was the best way to ensure success

8IMVU Today

Continues with lean start up model by testing European markets and gaming consoles before venturing in the mobile gaming market. Currently 3 million users & the largest product offering of 6 million. 9Snaptaxt Story: Lean Startup from a big corporation Intuit- by Charin Stormhttp://prezi.com/7hpok6sousw4/?utm_campaign=share&utm_medium=copy&rc=ex0share

10Sources:Minder Chen, Ph.D. Professor of MIS, Martin V. Smith School of Business and Economics California State University Channel Islands. [email protected], Jan. 15, 2014IMVU Case Study (Eric Ries was the CTO and it was where he learned the Lean Startup approachhttp://prezi.com/7hpok6sousw4/?utm_campaign=share&utm_medium=copy&rc=ex0share

http://venturebeat.com/2013/05/13/lockwood-publishing-will-debut-3d-avatars-in-its-avakin-poker-mobile-game-exclusive/

http://prezi.com/7hpok6sousw4/?utm_campaign=share&utm_medium=copy&rc=ex0share

11