Innovation & Entrepreneurship

Prototyping to Product Development

ABRAHAM LINCOLN

KARL MARX

CHARLES DARWINWALL STREET

FLORENCE NIGHTINGALE

How to identify a Successful Technology Innovator ?

One who possesses:Great Technology SkillsGreat Track Record Great Product IdeaGreat Backers

RIGHT ?WRONG

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SEGWAY : Learning From Failure

Dean Kamen: Great Innovator Personified

Segway : Jan 2001, the buzz around the world

Anticipated to sell 10000 units per week (to date have managed to sell 30,000 units around the world)

Still hanging in there but definitely not the innovation that changed the world

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So what went wrong?

Focused on Invention rather than Innovation

Invention focuses on Technical Superiority while Innovation is an Iterative process

Paul Graham feelsIt was too easy for themthey were too successful in raising moneyThey should have gradually grown the product by listening to their customers

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What Else was wrong?Expectations were too high

Being a product not a solution

Inventors tend to think of a product and then go about finding a market for it

Some simple questions were not askedWhere should I park it?How do I charge the battery ?Sidewalks are designed for pedestrians and roads for cars

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And Some more reasons

No Clear need of target marketAssumed FEDEX , US POST , Police Dept will BuyAt 5000$, no compelling need for anyone

Regulatory issues with countries banning it on sidewalks as well as roads

User training needed ,how do you do it for product sold on web?

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but most importantly...

Dean Kamen had experience of building products but not building companies….

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So how do you innovate for profit and growth ?

Start by asking a Simple Question: “What are my customers really buying ?”

Pleasure giving

Problem solving

Want satisfying

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Minimum Viable Product (MVP)" The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort." 

ERIC RIESA popular Lean Start-up TechniqueIt is all about customers and listening to them before developing a full fledged product and going to marketThis requires a lot of energy invested in talking to customers, metrics and analytics but helps to avoid bigger mistakes like Dean Kamens’

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Minimum Viable Product (MVP)

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Traditional

Minimum Viable Product – An Iterative Process

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Week 1 - Day 1: Fill your Lean Worksheet with Guesses Week 1 - Day 2: Contact your Users Week 1 - Day 3: Sketch your Experiment / prototype Week 1: Interview/Experiment your Users Week 2 - Day 6: Update your Lean Worksheet with Facts Week 2 - Day 7: Repeat everything until find 5 Early Adopters Week 3 - Day 1: Sketch your MVP Week 3: Build your MVP Week 4: Experiment your MVP with Users Week 4 - Day 5: Measure MVP Satisfaction Week 4 - Day 6: Analyze MVP Metrics and Results

Week 4 - Day 7: Update your Lean Worksheet with Facts

Lean Worksheet and Steps

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1.Define your Value Proposition.2. Contact 3 to 5 persons and schedule an in-person conversation with each of them.3.Ask them what they think about your solution.

MVP Exercise–Step 1

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MVP – References:

Lean startup in 4 stepshttp://leansteps.co/11-2/minimum-viable-product/516-2/

http://econsultancy.com/in/blog/10441-the-what-and-how-of-minimum-viable-products

http://theleanstartup.com/#principles

http://www.startuplessonslearned.com/2009/08/minimum-viable-product-guide.html