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How to Build a 100M Business

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Customer development and disruption

How to Build a 100M Business

  1. 1. Customer Development NPD, Design, CX, Commercialisation Product, Service Customer User’ Problem
  2. 2. Customer Development NPD, Design, CX, Commercialisation Product, Service Customer User’ Problem
  3. 3. How to make money MONEY What its product is PRODUCT Who its customers are CUSTOMER A startup is a company that is confused about: Dave McClure, 500 Startups
  4. 4. 9/10 startups fail products
  5. 5. PROBLEM IS NOT WORTH SOLVING SOLUTION IS NOT SOLVING THE PROBLEM NO VALUE CREATION FOR A CUSTOMER Failure reasons Source: Omar Mohout, 2015
  6. 6. Most firms are not and that undermines their innovation efforts… Indeed, when developing new products, processes, or even businesses, most companies aren’t sufficiently rigorous in defining the problems they’re attempting to solve. Without that rigor, organizations miss opportunities, waste resources, and end up pursuing innovation initiatives that aren’t aligned with their strategies. “IF I WERE GIVEN ONE HOUR TO SAVE THE PLANET, I WOULD SPEND 59 MINUTES DEFINING THE PROBLEM AND ONE MINUTE RESOLVING IT”
  7. 7. IS IT A PROBLEM/ PASSION THAT MANY OTHERS HAVE? IS THIS PROBLEM SERIOUS ENOUGH AND WORTH SOLVING? HOW OFTEN THE PROBLEM OCCURS? B2B – a problem or pain B2C – a need
  8. 8. FREQUENCY Low PAIN High High 1 2 3 1 = not enough business 2 = strong pain, demand, business 3 = no money from customers
  9. 9. Source: Omar Mohout, 2015
  10. 10. Source: Omar Mohout, 2015
  11. 11. DEMOGRAPHICS BEHAVIORS APPEARANCE NEEDS INFLUENCERS BAYER PERSONA CONTENT BUYING PROCESS B2C B2B
  12. 12. UNIQUENESS OF YOUR SOLUTION? EASY OR COMPLEX SOLUTION? SOLUTION IS SUSTAINABLE? SOLUTION IS EASY TO PROTECT?
  13. 13. 1
  14. 14. 1 2
  15. 15. 1 2 3
  16. 16. Source: Omar Mohout, 2015
  17. 17. Source: Omar Mohout, 2015
  18. 18. 2015 2018 2021 Ericsson 2015. monthly ExaBytes
  19. 19. Source: Goldman Sachs, 2016
  20. 20. MARKET10X Risk / Innovation Tesla- fication TECHNOLOGY10X Risk/Innovation “ZERO”Risk -Customer lock-in -Cashcow AVERAGE Market Risk - Sci-Fi tech already built - Market mistrust - Long evangelization Uber- ization LOW TECH RISK - Market is ready - Generic tech platform - CX & Design Disruption - 10X technology - 10X market (transformation)
  21. 21. 1
  22. 22. 1 2
  23. 23. 1 2 3
  24. 24. 1,000 ENTERPRISE CUSTOMERS PAYING YOU $100K+ PER YEAR EACH; OR 10,000 MEDIUM-SIZED COMPANIES PAYING YOU $10K+ PER YEAR EACH; OR 100,000 SMALL BUSINESSES PAYING YOU $1K+ PER YEAR EACH; OR 1 MILLION CONSUMERS PAYING YOU $100+ PER YEAR EACH 10 MILLION ACTIVE CONSUMERS WHO YOU MONETIZE AT $10+ PER YEAR
  25. 25. CONCLUSION Innovation is a product commercialization in a market place. Instead of product development organize customer development first (experiments). Discover a unique customer problem, pain or a need. Use data to drive insights. Search for a evidence of a problem. Aim to create a 10X solution.

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