Innovits workshopFramework, processes,

methods

22 ottobre 2014 Stefano Mizio

• How you will be involved

• Planning

• Method, Process, Tools

Stefano Mizio

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This talk...

Call for Ideas: we help startups to emerge

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•Innovation Assesment

•Business Modeling

•Coaching & Mentoring

•Training•Business Model elaboration

•Pitch day

•Access to finance

•Hosting•Training•Commercialization

•Internation. Support

•Business Dev.

Inn

ovits C

all Fo

r Ideas

Jou

rney“Don’t join an accelerator unless you can win it. That requires being at a stage where you can

actually benefit from meetings with investors and the press”

Innovits fo

cus areas

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TBD gennaio WS Entrepr. in residence

5 novembre Check point 1

19 novembre

Check point 2

27 novembre

Gate Alpha

10 dicembre Check point 3

14 gennaio Gate Beta

4 febbraio Check point 4

18 febbraio Check point 5

5 marzo Gate Gamma

Check point 5Pressure Pitching

Check point 519 marzo 2015Final Event

4 marzo WS Pitching

22 ottobre WS Customer Disc

6 startups

20 novembre Startup/prototyping

4/11 dicembre Startup Sales

26 febbraio Startup& Investitori

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Planning

Stefano Mizio

Steve Blank5

Search...

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Steve Blank6

Startup and Established Company

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Framework

By S. Blank Stefano Mizio

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Core Principles: scientific method

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Just an example: Zappos

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Andreas klinger

Missing your opportunity…by focusing on the wrong thing or by looking at the wrong customer

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By S. Blank

The Journey

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“Startups evolve through discrete stages of development. Each stage can be measured with specific milestones and thresholds”.

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Cracking the code of innovation

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It takes time

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Problem - Solution FIT

“The hard part is finding the problem to solve” – K. Sistrom

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Steve Blank15

Get out of the building

By S. Blank Stefano Mizio

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Stop! Let’s start from your idea of business model

• “A business model is simply the ‘way of doing business’ that a firm has chosen: its entire system for creating and providing consistent value to customers and earning a profit from that activity, as well as benefit for its broader stakeholders. It refers to the core architecture or configuration of the firm, specifically how it deploys all relevant resources (not just those within the company boundaries), to create differentiated value for customers at a profit…” (Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation

Economy. Publicis Wiley.)

• The business model is a company’s answer to the question of how to make money in its chosen business. It describes, “…as a system, how the pieces of a business fit together” (Magretta, J. (2002). "Why Business Models Matter." Harvard Business

Review 80(5) May: 86-92.)

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What does a business model mean?

• The essence and main components

WHO WHAT HOWis your

customer?do you offer

your customers?do youdo this?

Markets

Customer Segments

Individual Customers

Products & Services

Solutions

Experiences

Create Value

Deliver Value

Capture Value

Delivering the Who, What and How in a concise message. Unique Value Proposition: a single, clear compelling message that states why you are different and worth buying

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By Mark Sniukas18

What is a business model?

Who • People who want a quick bite to eat• Get in, order, get served quickly, get

out quickly again

What • Pre-made food prepared constantly according to demand

• Standard menus• Some variations allowed

How • Standardized processes• Central locations with high

frequencies• The key is to serve a maximum

number of people during a given time

By Mark Sniukas

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McDonald’s Business Model

OFFER

CHANNELS

RELATIONSHIPS CLIENTS

REVENUE STREAMS

COST CENTRES

KEYPARTNER

KEYRESOURCES

KEYACTIVITIES

Who‘s yourcustomer?

Which customer

segments do you serve?

What‘s your offer?

Which „jobs to be done“ do you

satisfy?

What‘s your relationship to the customer?What‘s your

image?

How do you reach your customers?

How do you make money?

What is driving cost?

What are your core activities

and processes?

What are your main suppliers,

partners and alliances?

What are your main assets and competencies?

The business model is a company’s answer to the question of how to make money in its chosen business. It describes, “…as a system, how the pieces of a business fit together”

By A. Osterlwalder Stefano Mizio

A way to depict your Business Model

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A BMC example - TELCO

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BCG Model

A different model...

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Guess Guess

Guess

Guess

GuessGuess

Guess

GuessGuessUntested hypotheses

9 Guesses

By A. Osterlwalder

fundamental problem in a given situationthat needs a solution

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When customers find that they need to get a job done, they “hire” products or services to do the job.

MIT Sloan Management Review 2007 - Finding the Right Job For Your Product24

Problem means : JBTD

The Innovator’s toolkit

Key components of a job statement are an action verb, the object of the action, and clarification of the context in which the job is performed

fundamental problem in a given situationthat needs a solution

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JBTD

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Process to follow

JTBD: providing a safer alternative for scooter families.

Value Proposition:offering an affordable,safer, all-weather alternative for scooter families.

Business Model:that goal required radical changes in the cost structure of making a Car.

You are standing on a Mumbai road on a rainy day and notice the large number of motor scooters snaking precariously in and out

around the cars

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Design Value Propositions that match your Customer's needs and

jobs-to-be-done and helps them solve their problems.By A. Osterlwalder Stefano Mizio

Value Proposition Canvas

Jobs to be done:•What functional jobs is your customer trying get done? (solve a specific problem, complete a specific ask)•What basic needs is your customer trying to satisfy? (communication,…)•What emotional jobs is your customer trying to get done? (feel good, security,…)

Pains (before, during and after getting the JTBD):•What does your customer find too costly? •What makes your customer feel bad?•How are current solutions underperforming for your customer? •What are the main difficulties and challenges your customer encounters? •What negative social consequences does your customer encounter or fear? •What risks does your customer fear? •What common mistakes does your customer make? •What barriers are keeping your customer from adopting solutions?

Gains:•Which savings would make your customer happy? •What outcomes does your customer expect and what would go beyond his/her expectations? •How do current solutions delight your customer? •What would make your customer’s job or life easier? •What positive social consequences does your customer desire? •What are customers looking for? •What do customers dream about? •How does your customer measure success and failure? •What would increase the likelihood of adopting a solution?

By A. Osterlwalder Stefano Mizio

Don’t forget to rank jobs, pains, gains

Important +

Insignificant -

Step into your customers’ shoesOne step toward customer interview

Which core beliefs you need to test with customers

(analgesics): How we are helping our customers with their pains (for example: saving them some time thanks to the automatic generation of a shopping list or thanks to a home

delivery service)

(vitamins): How we provide benefits for our customers (for example: helping them to save some money thanks to some

discount coupons).

By A. Osterlwalder Stefano Mizio

Value Map + Customer Profile

By A. Osterlwalder

WHAT are we building and WHY are we buiding it

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Static + Dinamic merge

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Ask about experience not opinions32

Customer Interview: Good and Bad question

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Customer Interview Process:No leading question – know what you need to learn

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• How you currently deal with this problem?• Talk me through the last time you had this problem.• How much money does this problem cost you?• Who else should I talk with?

• Would you buy a product which solved this problem?

• How much would you pay for this? • Do you think it’s a good idea?• Do you have a problem with this?... well, now I’am!

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Customer Interview: Good and Bad question

…Awesome feedback: “ we are spending XX euro per month on this! Proofs it is a problem

Lean Startup 101

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There are no facts inside the building

The Value Hypothesis The Growth Hypothesis

The Minimum Viable Product

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Leaps of faith assumptions

Eric Ries

By Stephan Roock

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Minimum Viable ProductMVP

A dummy banner:

404 / "Not Found" message.

If enough users click on the banner, the product will go into development

Test and LearnSmoke test

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“Test" your model and your assumptions with customers until you find the right business model to scale.

By A. Osterwalder Stefano Mizio

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Stefano Mizio

Pivot or PersevereCompanies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead.

By Eric Ries

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Land of the living dead

The state where a company is neither growing enough nor dying, consuming resources and commitment from employees and other stakeholders but not moving ahead. It is a terrible drain of human energy

By S. Blank Stefano Mizio

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Our map

Stefano Mizio

www.leanlaunchlab.com www.leanlaunchlab.com

Data: Lean Launch Lab

Data Center

+ 1 backup metod

Telecom /Cell phones provider

Unreliable electric grid

Sell

Data center fuel availability

countries have grid problerms

Fuel costs

Risk theft of fuel

7/10

Developing countries / no reliable grid

DURATHON

Exploration

Stefano Miziowww.leanstartupmachine.com

Stefano Mizio

The easiest version

(Business Models)… But they don’t factor in one critical dimension of performance: competition. Sooner or later—and it is usually sooner—every enterprise runs into competitors

P.B. Seddon – G.P. Lewis Strategy and Business Models: what’s the difference? Stefano Mizio

Strategy and Business Models

Stefano MizioW.C. Kim R. Mauborgne Blue Ocean Strategy

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The Value Curve (1)

Stefano MizioW.C. Kim R. Mauborgne Blue Ocean Strategy

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The Value Curve (2)

Stefano MizioW.C. Kim R. Mauborgne Blue Ocean Strategy

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Nintendo Wii example

VALUE

PROPOSITION

CHANNELS

RELATIONSHIPS CUSTOMERS

REVENUE STREAMS

COST CENTRES

KEY

PARTNERS

KEYRESOURCES

KEYACTIVITIES

Fill…

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Let’s move on – HomeworkBMC

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Our social presence

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Keep in touch