A short set of slides that describe the lean start -up approach. Some graphics used with courtesy

1. Lean start-up
methodology primer
and MSc development
workshop
Andy Hirst

3. This session…
• Discover some new approaches to business
start-up
• Create some basic course concepts
• Apply some techniques
• And of course ……
Have fun!
Help yourself to tea, coffee and biscuits

4. The Innovator’s Dilemma
“Jobs to be done” – Clayton
Christensen
• Functional jobs - Task
• Emotional jobs - Feelings
• Social jobs - Relationships
• Supporting jobs - Context

5. Warm-up Task: In
groups of 2/3
Identify the top 3 “jobs to be done” for the
new MSc in Entrepreneurship

6. What do we know about the
start-up process?

7. Failure rates have been
stubbornly high - 75%!
• A business fails because it runs out of customers
Geoffrey Moore – Crossing the Chasm

8. Focus on product development not
customer development

9. Big design doesn’t work
Iridium Motorola (1999)
$5 Billion flop
66 satellites – global coverage / 500k users

10. Business plans contain NO FACTS
“..plans rarely survive first
contact with the enemy”
(Helmuth von Moltke)
“Everybody has a
plan until they get
punched in the
mouth” (Mike Tyson)
Just a set of assumption and predictions

11. Start-ups are not able to make
realistic forecasts of future
growth

12. SO…..
Could hypothesis driven business development
be the solution?

13. Steve Blank – “The path to
the epiphany”
A mixture of customer development and iterative
development techniques

14. Reduce Complexity and Risk!

15. Lean start up is all about
iteration

16. Espresso coffee

18. What changed?
TASK: Discuss in
groups of 2

20. The business model – definition
• The business model encourages the entrepreneur to
• conceptualize the venture as an interrelated set of strategic
goals
• seek complementary relationships among elements,
through unique combinations;
• develop activity sets around a logical framework
• ensure consistency between elements of strategy,
architecture, economics, growth, and exit intentions.
Need a common language

21. 100
80
60
40
20
On the Rise
A Google Trend analysis shows that the Business
Model Canvas is trending upwards together with
the Lean Startup.
2008 2009 2010 2011 2013 2014
Blue Ocean Strategy
Lean Startup
Disruptive Innovation
Business Model Canvas
The number 100 represents peak search interest
2524

22. The Business Model Canvas
designed by: Strategyzer AG
The makers of Business Model Generation and Strategyzer
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
strategyzer.com
Revenue Streams
Customer SegmentsValue PropositionsKey ActivitiesKey Partners
Cost Structure
Customer Relationships
Designed by: Date: Version:Designed for:
ChannelsKey Resources

23. TASK: Rapid Prototype
• Who are our potential customers?

24. Customer/Users Architypes
• Aspects to consider
• Demographics
• Motivations
• Role models /Influencers
• Ambitions
• Family wealth
• ….
• Day in a life
• User stories

25. Emergent strategy
Lean start-up

26. Similar methods that overlap
with lean start-up philosophy
• Design thinking
• Rapid prototyping
• Agile project management
• Emergent strategy
• Iteration!

27. Can we change
the way we
business model/
design courses?

28. Visual Tools

29. Product-Market Fit
Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com

30. Customer
Segment
The Value Proposition Canvas
Customer (Segment)
Profile:
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer strategyzer.com
Pains
Gains
Customer
Job(s)
10:00

31. Value
Proposition
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer strategyzer.com
The Value Proposition Canvas
Gain Creators
Pain Relievers
Products
& Services
Value (Proposition)
Map:
10:00

32. Swap canvas
Add, Develop, Organise

33. The Start in Start-up
MVPA sellable product or service that has enough
features to satisfy one customer segment

34. 10:00
TASK: In groups of 3,
create an MSc in a box

35. Pitch your idea
In 30 seconds explain your MSc
think about your customer segment, product features, pains,
gains and jobs to be done.

36. 2nd Iteration

37. Lean start up is all about
iteration
Make a change based on
your feedback

38. 3rd Iteration

39. Lean start up is all about
iteration
Make a change based on
your feedback

40. Look at the existing market

41. Blue Ocean Strategy – Kim and Mauborgne (2005)
Create products in uncontested markets at low cost

43. What’s different about Nintendo’s business model?