Don’t TASE Me, BRO! :)

NYU Satter Conference 2012

Franziska Günzel, AarhusNorris Krueger, Entrepreneurship

Northwest

Don’t TASE Me, BRO! :)

• Or… Why we all need to take business models and business model evolution seriously.

• And the research implications of the tidal wave of “lean startup”

• And how social and sustainable entrepreneurship is a brilliant domain to study this!

A quick primer

• What’s a “business model”?• Definitions/operationalizations all over the

map• Basically, the recipe… usually centers on:– 1) Value identification/creation– 2) Value delivery– 3) Value capture

Obligatory research background

• Definitional, um, “diversity”?– The “New Heffalumps”?

• Static• Top-down (org theory/strategy?)• Ignores continuous learning?• Tide is turning, though (AoM workshops)• Anyone here from SEJ? (Special issue

upcoming… hint, hint)

OK, show of hands?

• How many of you know a successful venture that NEVER changed any of its business model from Day One?

• How many know a venture that likely failed because its business model failed to evolve?

• How many know a social venture that likely failed because its business model failed to evolve?

“Lean Startup”• Not THAT new• Beautifully codified by Blank, Ries, Osterwalder• Even more beautifully marketed by ….

• Startup = Vehicle for validating all critical assumptions behind your business model

• Entrepreneurship becomes Experimentation• Critical for high complexity/uncertainty environs (TBL?)• Dexter-izes “Inventors Syndrome”?• (lean approach forces people entrepreneurial mindset)

• So what about Social/sustainable Ventures?

Key Elements

• Pivot

• MVP• [Minimum Viable Product]

• GOOT[F]B?

• Business Model Canvas

What’s Different for Social Ventures?

• And how can studying social ventures pay off?

• MVP – different when stakes are high?• “Inventors Syndrome”?• Canvas – different terminology, diff boxes or ?• Impact of Impact Investors?• Design Thinking – key to pivots under high

complexity?

A modest agenda…

• Do social ventures pivot more than entrenched bureaucracies?

• Is this something we can teach? (AAAS/NSF)• Lean Startup for social ventures – impact on

developing entrepreneurial mindset?• Does expertise at D-Thinking matter? (D2M)• Contests – emergent phenomena• How does this change our metrics? The metrics of

impact investors?• What tools can use to assess changes – diaries?

But what do YOU think???

• Other ideas??

So……

• Want to join the fun? – Franziska Günzel, f.guenzel[at]googlemail.com– Norris Krueger norris.krueger[at]gmail.com or

@entrep_thinking – Growing numbers at AoM & elsewhere

• And… – Dell Social Innovation Challenge [www.dellchallenge.org]

• Rob Hanna @socialwealth, rawhanna[at]gmail.com

– Wm James Foundation [www. williamjamesfoundation.org]• Ian Fisk @iantfisk, @WJF_Competition• ian.fisk[at]williamjamesfoundation.org

oh, yeah…. We lied…

• Do TASE Me, BRO!

• TASE = – Test Assumptions Specifically & Experimentally

• BRO = – Blank - Ries – Osterwalder