2. What is an “Idea”? Idea is a set of hypotheses Product or service hypothesis Customer problem hypothesis Sales process hypothesis Demand market hypothesis Competitive hypothesis Business model
3. What is an “opportunity”? An idea transformed into a solution with well defined: Problem alignment- value proposition Customers/market Business model Pricing Sales process
5. Indentify the Nature of the Idea Four categories of startups New product into known market New product at “low cost” into re-segmented market New product into a niche of a re-segmented market New Product into a new market
6. Basic paradigms SLP: Solution Looking for a problem – category 2, 3 and 4 PLS: Problem Looking for a Solution – category 1
7. Problem Looking for Solution Classic Product Development Model Product Concept Idea Seed Product Development Alpha/ Beta Test Product Launch First Customer shipment
8. Product Development Model Known customers Known Product Known Business model Known Pricing/competition Known sales process
9. Solution Looking for a Problem Need to Validate the Idea in a cost effective manner Where are the customers Clarify product/service aka value proposition Establish Business model How do you make a profit to build the business
10. SLP: Customer Discovery Model Iteratively learn and tweak product definition and define customer segment Company Building Customer Discovery Customer Creation Customer Validation
12. SLP: Customer Discovery Friendly customer Test your product and problem hypotheses Preliminary business model Multiple customers Objective listening Iterate and improve Low cost learning team
13. SLP: Customer Validation Sell to early evangelists Refine Sales message Iterate business model Competitive positioning Sales channel and pricing
15. SLP: Company Building Mainstream customers Transform company culture Organize for Product Development Model Build a quick response organization
16. SLP: Organizational implications Small flat teams Egoless Title less Learning attitude Ready to take on any role needed Cost effective Jazz not Orchestra
17. Conclusion Idea is often a fantasy. We introduced a discipline of “customer discovery” model Objective: Turn a fantasy into a dream that can be the engine for empowering a successful startup