Session 2 fall 2014
-
Upload
sahlinas -
Category
Small Business & Entrepreneurship
-
view
46 -
download
0
description
Transcript of Session 2 fall 2014
Problem/solution fitLean Canvas &
Value Prop Canvas
2
Your startup is not your product!
A customer buys a solution to a problem
3
Why Lean Canvas
• Business Plan waste of time until later
• The need of a communication tool
• Improves learning in a structured way
• Helps focus on the ”right” stuff
4
Lean Canvas Project Name01-Jan-2014
Iteration #x
Cost Structure
Customer Acquisition costs
Distribution costs
Hosting
People, etc.
Revenue Streams
Revenue Model
Life Time Value
Revenue
Gross Margin
Problem
Top 3 problems
Existing
alternatives
Solution
Top 3 features
MVP
Key MetricsKey activities you
measure
Unique Value
PropositionSingle, clear,
compelling
message that states
why you are
different and worth
paying attention
High-level concept
Unfair
AdvantageCan’t be easily
copied or bought
ChannelsPath to customers
Customer
SegmentsTarget customers
Early adopters
PRODUCT MARKET
6
Lean Canvas Project Name01-Jan-2014
Iteration #x
Cost Structure
Customer Acquisition costs
Distribution costs
Hosting
People, etc.
Revenue Streams
Revenue Model
Life Time Value
Revenue
Gross Margin
Problem
Top 3 problems
Existing
alternatives
Solution
Top 3 features
Key MetricsKey activities you
measure
Unique Value
PropositionSingle, clear,
compelling
message that states
why you are
different and worth
paying attention
High-level concept
Unfair
AdvantageCan’t be easily
copied or bought
ChannelsPath to customers
Customer
SegmentsTarget customers
Early adopters
PRODUCT MARKET
1 12
3
4
5 5
7
6
PROBLEM, SOLUTION, VALUE PROP
8
You really need to understand your customer (and user)
9
Customers and problems
Who is the customer?Multi-sided market?Different from user?
hPp://www.businessmodelalchemist.com/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposi8on-designer.html
Customers and problems- jobs to be done
What functional jobs is your customertrying get done? (e.g. perform orcomplete a specific task, solve a specificproblem…)
What social jobs is your customer tryingto get done? (e.g. trying to look good,gain power or status…)
What emotional jobs is your customertrying get done? (e.g. esthetics, feel good,security…)
“What jobs are the customers you aretargeting trying to get done”
Customers and problems- customer pains
What does your customer find too costly?(e.g. takes a lot of time, costs, effort)
What makes your customer feel bad?(e.g. frustrations, annoyances)
How are current solutions under-performing for your customer?(e.g. lack of features, performance,malfunction)
What negative social consequences doesyour customer encounter or fear?(e.g. loss of face, power, trust, or status)
“What are the costs, nega2ve emo2ons, badsituations etc. that your customer risksexperiencing before, during, and after gettingthe job done.”
Customers and problems- customer gains
Which savings would make your customerhappy? (e.g. in terms of time, money andeffort)
What would make your customer’s job orlife easier? (e.g. flatter learning curve,more services, lower cost of ownership)
What positive social consequences doesyour customer desire? (e.g. makes them
look good, increase in power, status)
What are customers looking for? (e.g.good design, guarantees, features)
What do customers dream about? (e.g.big achievements, big reliefs)
“What are the benefits your customerexpects, desires or would be surprised by.”
Problem
What are you customers’key jobs/pains/gains?
Solution Unique ValueProposition
Key features Single, clear, compellingmessage that states why
MVP you are different andworth buying from
Key Metrics
What metrics aremost criticalto track?
Unfair CustomerAdvantage Segments
That can’t be easily Who are your customers?bought, or imitated?
Who are earlyvangelists?
Channels
How do you reachcustomers?
Cost StructureCustomer Acquisition CostsDistribution CostsHostingPeopleetc.
Fixed/variable
Revenue StreamsRevenue ModelLife Time ValueRevenue/pricingetc.
Unique Value Propositions/Solution
What are your products andservices?
How do they create value forthe customer segments?
Unique Value Propositions/SolutionCan your product/service:
• Produce savings?
• Make your customers feelbetter?
• Put an end to difficulties?
• Wipe out negative socialconsequences?
Unique Value Propositions/SolutionCan your product/service:
• Outperform currentsolutions?
• Produce outcomes that gobeyond their expectations?
• Make your customer’s jobor life easier?
• Create positive socialconsequences?
Examples
• Skype’s value proposition
– Free internet based chat, audio and video calls.
– Cheap calls to mobile and landline phones.
– Additional premium features like group video for personal or business calls,
Examples
• Netflix's value proposition
– A low fixed price and unlimited viewing from itslarge content collection.
– Netflix can be viewed from most devices with an Internet connection.
– Netflix doesn't have any commercial interruptions
Examples
– ”Free”
– Real-time, mobile photo friend-following
– Egocasting
• Shopify
– simple, well-designed shops and setup
– scalable server farms (flexible volume pricing)
– freakish control over external look & feel.
The process - tactics
• Focus on the right stuff at the right time – it’s not necessary to make complete canvases
• Be open – develop many hypothesis (avoid localmaxima)
• No business plan – but you still need the customer and market insight
• Validate or discard – gain knowledge• Document and adjust along the way• Then start building….
21
WORKSHOP
22
Workshop
• Define 3-5 segment -> problem -> solution -> unique value prop’s (if not already)
• Define how you are going to validate that(quantitative and/or qualitative)
• Present for the group (2-3 min) -> get feedback
To think about
• When defined a segment, make it 50% smaller– The biggest issue for all startups is prioritization
• Be extremely specific (you WILL be able to expand)– Adding a lot of ”nice to have” stuff doesn’t make it a ”must
have solution” -> impact on MVP
• Think through the red line: user/customer -> problem -> solution -> unique value prop– Visualize your user/customer and avoid thinking of
”distance segments”
VALIDATION
25
How are you planning to validate?
26
Sources/channels
Landing Page
Buy keywords
Pitch to everyone
Mockup/
demo
Surveys
Sketch
Interviews
28
Lean Canvas
Cost Structure Revenue Streams
Problem
Existing alternatives
Solution
MVP
Key Metrics
Unique Value
Proposition
High-level concept
Unfair Advantage
Channels
Customer
Segments
Early adopters