Startup Thinking 101 for Libraries: Workshop
description
Transcript of Startup Thinking 101 for Libraries: Workshop
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MONTEREY
!!!
CALIFORNIAIL 2014startup
thinking 101M.J. D’ELIA & HELEN KULA UNIVERSITY OF GUELPH UNIVERSITY OF TORONTO MISSISSAUGA
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welcome1
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agenda
welcome explore the challenge
biz model canvas !
customer development discovery & validation
wrap
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objectives
★ apply principles of startup thinking ★ map out a model for a new idea ★ develop a plan to validate your idea ★ focus on creating value
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APRIL 8, 2014
Helen Kula
Head, Learning & Curriculum Support Team University of Guelph [email protected]
@mjdelia
Librarian, Institute for Management and Innovation U of Toronto Mississauga [email protected]
@helenkula
M.J. D’Elia
about us
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plans vs. models
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poor biz plan process
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built on assumptions
(secondary data)
assumptions considered
“facts”
“facts” are not challenged or
altered> > >
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MCS*4100 ENTREPRENEURSHIP
poor biz plan process
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plan becomes static (it is not
rewritten)
company-centric
approach
productivity is measured against
plan> >
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first contact
!
“no plan survives first contact with its customers.”
~ Steve Blank
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MCS*4100 ENTREPRENEURSHIP
biz model approach
1 0
built on assumptions
(secondary data)
assumptions considered
“facts”
“facts” are not challenged or
altered
built on observation
(primary data)
assumptions are
acknowledged
assumptions altered based on
new learning
> > >
> > >
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MCS*4100 ENTREPRENEURSHIP
biz model approach
1 1
plan becomes static (it is not
rewritten)
company-centric
approach
productivity is measured against
plan
model continues to be rewritten
(dynamic)
customer-centric
approach
productivity is measured by performance
> >
> >
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the scenariopractice startup thinking
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recommendations
★ choose a: ★ user/patron focused product or service ★ new idea or approach ★ challenge that targets a subset of your
user population
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scenario
★ public library partnership with local hotels to offer library collections to hotel guests
★ hotels can sign guests up for a free library card during their stay
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explore the challenge
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customers / users
★ who do you expect will use your product or service?
★ what problem(s) are you solving for your potential users?
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problem / solution
★ what do your potential users do right now to solve those same problems?
★ why would they choose your solution over their current solutions?
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analogs
★ successful predecessor examples ★ who do you want to emulate/copy? ★ what elements of their approach can you
borrow?
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antilogs
★ predecessor examples that did not work ★ what do you want to do differently?
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biz model canvas
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APRIL 8, 2014
customer segments
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customer segments
“...defines the different groups of people or organizations an enterprise aims to reach and serve.”
~BMG, p. 20
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customer segments > questions
★ for whom does the company/project create value?
★ who are their most important customers/users?
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APRIL 8, 2014
value proposition
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value proposition
“...describes the bundle of products and services that create value for a specific customer segment.”
~BMG, p. 22
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value proposition > questions
★ what value does the idea deliver? ★ which problem is getting solved? ★ which needs will be satisfied? ★ what bundles of products/services do
they offer each customer segment?
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channels
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channels
“...describes how a company communicates with and reaches its customer segments to deliver a value proposition.”
~BMG, p. 26
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channels > questions
★ how do the segments want to be reached?
★ how are they reached now? ★ how is the company integrating with
customer routines?
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APRIL 8, 2014
customer relationships
3 0
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customer relationships
“...describes the types of relationships a company establishes with specific customer segments.”
~BMG, p. 28
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customer relationships > questions
★ what type of relationship does each segment expect?
★ which relationships have been established?
★ how are they integrated with the rest of the model?
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APRIL 8, 2014
revenue streams / return
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revenue streams / return
“...represents the cash a company generates from each customer segment (costs must be subtracted from revenues to create earnings).”
~BMG, p. 30
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revenue streams > questions
★ for what value are customers really willing to pay?
★ for what do they currently pay? ★ how are they currently paying? ★ how much does each revenue stream
contribute to overall revenue?
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key resources
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key resources
“...the most important assets required to make the business model work.”
~BMG, p. 34
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MCS*4100 ENTREPRENEURSHIP
key resources > questions
★ what key resources do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams?
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key activities
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key activities
“...describes the most important things a company must do to make its business model work.”
~BMG, p. 36
4 0
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key activities > questions
★ what key activities do your value propositions require? ★ distribution channels? ★ customer relationships? ★ revenue streams?
4 1
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key partnerships
4 2
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MCS*4100 ENTREPRENEURSHIP
key partnerships
“...describes the network of suppliers and partners that make the business model work.”
~BMG, p. 38
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MCS*4100 ENTREPRENEURSHIP
key pARTNERSHIPS > questions
★ who are the key partners? ★ who are the key suppliers? ★ which key resources do you need from
someone else? ★ which key activities do partners
perform?
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APRIL 8, 2014
cost structure
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MCS*4100 ENTREPRENEURSHIP
cost structure
“...describes all costs incurred to operate the business model.”
~BMG, p. 40
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cost structure > questions
★ what are the most important costs inherent in our business model?
★ which key resources are most expensive?
★ which key activities are most expensive?
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customer development
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KP KA VP
KR
CR
CH
CS
C$ R$
BMG
, p. 7
4-75
biz model
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KP KA VP
KR
CR
CH
CS
C$ R$
BMG
, p. 7
4-75
biz model
ASSUMPTIONS
(LEAPS OF FAITH)
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MCS*4100 ENTREPRENEURSHIP
customer development
★ four-step framework ★ discover and validate your market ★ built the right product features ★ solve customers’ needs ★ tested methods for acquiring customers ★ deployed resources to scale business
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MCS*4100 ENTREPRENEURSHIP
customer development
★ process by which you question and test the core assumptions of your idea
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cust dev > 1. customer discovery
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customer discovery
problem-solution fit
proposedmvp
★ a product solves a problem for an identified group of users
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cust dev > 2. customer validation
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customer validation
product-market fit
biz model
sales map
★ the market is large enough to build a viable business
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cust dev > 3. company creation
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company creation
scale execution
★ the business is scalable through repeatable sales
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cust dev > 4. company building
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company building
scaleorganization
scaleoperations
★ company grows and operational processes are created to support growth
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cust dev > framework
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customer discovery
customer validation
company creation
company building
problem-solution fit
proposedmvp
product-market fit
biz model
sales map
scale execution
scaleorganization
scaleoperations
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MCS*4100 ENTREPRENEURSHIP
cust dev > pivot
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customer discovery
pivot
company creation
company building
problem-solution fit
proposedmvp
product-market fit
biz model
sales map
scale execution
scaleorganization
scaleoperations
customer validation
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MCS*4100 ENTREPRENEURSHIP
pivot
“...a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.”
~ Eric Ries, The Lean Startup
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MCS*4100 ENTREPRENEURSHIP
pivot > based on learning
“A pivot requires that we keep one foot rooted in what we’ve learned so far, while making a fundamental change in strategy in order to seek even greater validated learning.”
~ Eric Ries, The Lean Startup
6 0
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discovery + validation
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cust dev > first stage
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customer discovery
pivot
company creation
company building
problem-solution fit
proposedmvp
product-market fit
biz model
sales map
scale execution
scaleorganization
scaleoperations
customer validation
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MCS*4100 ENTREPRENEURSHIP
empathy map > bonus worksheet
★ understanding the mindset of the user ★ influences ★ pressures ★ pains, gains
★ anticipating their needs
6 3
BMG, p. 131
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wrap6
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MCS*4100 ENTREPRENEURSHIP
instinct
“There is no way to remove the human element--vision, intuition, judgment--from the practice of entrepreneurship, nor would that be desirable.”
!
~ Eric Ries, The Lean Startup
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MCS*4100 ENTREPRENEURSHIP
reminders for application
There are no facts inside your
building, so get outside.
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The best startup ideas ideas come
from noticing.
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MCS*4100 ENTREPRENEURSHIP
reminders for application
Determine what you want to learn before you build.
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Build a minimum viable product
with the smallest possible feature
set.
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reminders for application
No business plan survives first contact with customers.
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Failure is an integral part of
the search.
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evaluationwhat did you think?
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O
APRIL 8, 2014
Helen Kula
Head, Learning & Curriculum Support Team University of Guelph [email protected]
@mjdelia
Librarian, Institute for Management and Innovation U of Toronto Mississauga [email protected]
@helenkula
M.J. D’Elia
contact info
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MCS*4100 ENTREPRENEURSHIP
references
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