Customer-Centered Innovation

RAOMAL PERERA
raomal@LeanDisruptor.com | @raomal @LeanDisruptor | www.facebook.com/LeanDisruptor
In Hindsight

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“To paraphrase Oedipus, Hamlet, Lear,
and all those guys, "I wish I had known
this some time ago.”
― Roger Zelazny, Sign of the Unicorn
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www.Facebook.com/LeanDisruptor
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Fund Raising for Entrepreneurs
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Building Emotional Capital for Leadership
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Synopsis
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Look for that Gap
Don’t stop Networking
Look for Insights – Join the Dots
Identify the Problem first before
defining the Solution.
Tools to get you started on the Lean
Startup journey

• Find the Gap; How to find opportunities
that others don’t see – Amy Wilkinson
• Network (Effectual Entrepreneurship) –
Saras Sarasvathy
• Join the Dots – Steve Jobs
Tips
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 Lean Startup Dublin Meetup launched Jan 2012 – now over 1,000
members
 Workshops run by Ash Maurya, John Mullins, Brant Cooper, Mary
Cronin & Raomal Perera
 Talks on Lean Startup, Social Media, Agile, Fund Raising, How to Build
a Startup, Lego Serious Play, Lean in Corporates, Crowd Funding,
Cartier Women’s Initiative Award (CWIA)
 LeanCamp
Lean Startup Dublin Meetup
http://www.meetup.com/Lean-Startup-Dublin/
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Lean Launchpad Programme
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Entrepreneurs Create Jobs – Can We Help
Them Increase Their Chance Of Success?

Lean Launchpad programme – (elements)
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Playing Lean – The Board Game
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Often (first-time) entrepreneurs feel that
step 1 involves writing a business
plan/building a slide deck and getting
funded!
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Knowledge is having the right answer.
Intelligence is asking the right questions
The Art of Customer Interviewing

Customer Development Process
Post it to the Wall
 Create the canvas
 Make it visible
 Use Yellow Post-It
notes with your
guesses
Get out of the building and test your hypotheses.
There are NO FACTS here. Talk to customers, partners,
vendors. Design experiments, run tests,
get data
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Hypotheses or Guesses
The canvas is a set of hypotheses, i.e. guesses
It helps us to organize our thinking! It is not
about functional organisation, but about the
business
The real question is HOW do we change those
guesses into FACTS?
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Identify the Problem
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Key Question: Do I have a problem worth solving?
Who has the problem?
What is the top problem?
How is it solved today?
Where do they have the problem or in what context do they have a
problem? (milkshake example)
When do they have the problem?
Why is it a problem? (Root Cause Analysis. Why is the single best
word for creating value in a start-up and an established business)
It is not possible to know what the top problem is without knowing
where, when and why they have a problem. Also the questions may
not be answered in sequence e.g. will we find the problem and the
person with the problem at the same time?

Clayton Christensen
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Jobs to be Done
“If you understand the job,
how to improve the product
becomes just obvious”

Define the Solution
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Take a stab at defining the solution
Build a demo (MVP)
Test it with assumed customers
Will the solution work? (Can the proposed solution
create customer value that exceeds the cost to
produce and deliver the solution to the customer?)
Who is the early adopter?
Does the pricing model work?

Build an MVP
Soft launch to early adopters
Do they realise the unique value proposition
How will you find enough early adopters to support
learning?
Are you getting paid?
Analysis: There needs to be a bit of intuitive thinking around
the MVP. We need to ask and then guess how we can create
the most unique customer value in the shortest amount of
time with the least resources. With a bit of thinking and an
equal amount of action we have a chance of appropriating
real value in the short term
VALIDATE THE QUALITATIVELYValidate Qualitatively
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 Launch your refined product to a larger audience
 Have you built something people want?
 How will you reach customers at scale
 Do you have a viable business?
 Analysis: A refined product needs to test both qualitatively
and quantitatively in order to find out why the refined
product creates customers’ value and how large is the
market potential?
 Can this business produce (organically or through
investment) enough cash in the short term in order that
customers value - cost to produce = profit
Validate Quantitatively
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Traction is a measure of your product’s engagement
with its market. Investors care about traction over
everything else
- Nivi and Nival, Venture Hacks
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Ideal time to raise money

Finding the Problem is the Hard Part
Kevin Systrom & Mike Krieger (Instagram Co-
founders)
Instagram Co-founder Kevin Systrom believes building
solutions for most problems is the easy part; the hard part
is finding the right problem to solve. Here he opens up
about how he and fellow Co-founder Mike Krieger
identified the problems they wanted to solve around
sharing photos through mobile devices. He also reminds
entrepreneurs to embrace simple solutions, as they can
often delight users and customers.
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Review
First identify the problem and then define the
solution- not the other way around
Find a Gap
If you understand the job, how to improve the
product becomes obvious
The BMC is a shared language for business
modelling. Use the template to change your
guesses to FACTS
Never underestimate the power of
networking
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“There are no shortcuts to
any place worth going”
Beverly Sills
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Strategy and Business Models – DIT PM Module 1
raomal@LeanDisruptor.com | @raomal @LeanDisruptor | www.facebook.com/LeanDisruptor
RAOMAL PERERA
THANK YOU!

Additional Resources
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Books:
What Customers Want – Using Outcome-
Driven Innovation to Create Breakthrough
Products and Services – Ulwick
Lean Analytics – Croll & Yoskowitz

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BMC Online Tools:
Strategyzer
https://canvanizer.com/ (free tool)
BMC Tool for Educators:
Launchpad Central offers end-to-end
solutions to validate business
hypotheses, testing for value and
accelerating time to market

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 Stattys Notes
(http://www.stattys.com/)
A new generation of adhesive
notes with a unique "Write
and Slide" function
 Mapping the business model
design space

MVP
A Minimum Viable Product (MVP) is “that
product which has just those features and no
more that allows you to ship a product that
early adopters see and, at least some of whom
resonate with, pay you money for, and start to
give you feedback on”
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MVP #1 Explainer video
An explainer video is a short video that explains what
your product does and why people should buy it.
A simple, 90 seconds animation is sufficient.
e.g. Dropbox
How to make an explainer video
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MVP #2 A Landing Place
A landing page is a web page where visitors
“land” after clicking a link from an ad, e-mail
or another type of a campaign.
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MVP #2 A Landing Page
• Craft your Landing Page
• Set up a Google AdWord campaign to drive traffic to your
new landing page. You can let the AdWord engine rotate
different messages and test what works best on your
prospects
• Set up Google Analytics. The most important thing to
measure is conversions – percent of visitors that sign up
(or perform another desired action)
• Set up a chat so that visitors can easily raise questions
• Set up a service like Qualaroo to survey your visitors
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MVP #3 Wizard of Oz
A “Wizard of Oz” MVP is when you put up a front that
looks like a real working product, but you manually carry
out product functions. It’s also known as “Flinstoning”
Zappos shoes is the biggest online shoe retailer, with
annual sales exceeding $1 billion. In his Lean Startup book,
Eric Ries describes how the founder started with a Wizard
of Oz product.
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MVP #4 The Concierge MVP
Instead of providing a product, you start with a manual
service. But not just any service! The service should consist
of exactly the same steps people would go through with
your product.
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MVP #5 Piecemeal MVP
This strategy is a blend between the “Wizard of
Oz” and “Concierge” approaches. Again, you
emulate the steps people would go through using
your product – as you envision it.
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MVP #6 Crowd Funding
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Sell it before you build it
The basic idea is simple: launch a crowd
funding campaign on platforms such as
Kickstarter or IndieGoGo. Not only will
you validate if customers want to buy
your product, but you will also raise
money

Take
Ownership
President Barack Obama on Thursday took the
blame for shortcomings that led to a failed
Christmas Day bombing plot, saying, “The buck
stops with me.”
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I am like a surf rider, carried forward on a crest
of a wave. The wave bearing me has scarcely
started its run; those who thought it was
already slackening spoke too soon. I am poised
now, in the precarious, but exhilarating
balance, that is the essence of real living, the
antithesis of mere existence. Behind me roars
the reef I have already passed; beneath me the
great wave, as yet barely flecked with foam,
lumps its back still higher from the sea.
And ahead …?
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And ahead …?
We cannot tell; we are too far out to see the
unknown land. It is enough to ride the wave
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Solicit Superb
Support
Get Visual
Take
Ownership
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Solicit Superb
Support
Get Visual
Take
Ownership
Toss
Toxicity
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Pump up the
Positives
Solicit Superb
Support
Get Visual
Take
Ownership
Toss
Toxicity
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Life is not about waiting
for the storm to pass. It
is about learning to
dance in the rain
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Log on the
Law of
Attraction
Pump up the
Positives
Solicit Superb
Support
Get Visual
Take
Ownership
Toss
Toxicity

Everything is energy and that’s
all there is to it. Match the
frequency of the reality you
want and you cannot help but
get that reality. It can be no
other way. This is not
philosophy. This is physics.
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Persevere Log on the
Law of
Attraction
Pump up
the
Positives
Solicit Superb
Support
Get Visual
Take
Ownership
Toss
Toxicity
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“There are no
shortcuts to any
place worth going”
– Beverly Sills
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Celebrate
Success
Pay Attention
Persevere Log on the
Law of
Attraction
Pump up the
Positives
Solicit Superb
Support
Get Visual
Take
Ownership
Continuously
Course
Correct
Toss
Toxicity
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What lies behind us and
what lies before us are
TINY matters compared to
what lies within us.
And when we bring this out
into the open MIRACLES
happen
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Looking for Investment
• What is the most important thing
that an investor looks at?
• What is he investing in?
YOU!
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Investors look for:
• Integrity
• Passion
• Experience
• Knowledge
• Skill
• Leadership
• Commitment
• Vision
• Realism
• Coach-ability
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Crowdfunding
Entrepreneurs using :
Today’s technology (internet and website) to
 Reach many and
 Find capital to their idea, project or company
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Funding – Crowd Funding
• There are different types of crowd funding
• You pay a fee to the crowd funding platform
– Between 2% to 10%+
• Choose the site that most suits your cash
needs as well as considering other factors
• Pick a site that has the right level of
functionality for you
– Do you want a ‘all or nothing’ site?
• Understand the size of the crowd
– Registered vs. active
• Keep researching this space. Lots of new
sites coming on-stream
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Donation Funding
• UK; www.justgiving.com, www.virginmoneygiving.com
• US; www.gofundme.com, www.sponsume.com,
www.causes.com www.crowdrise.com, www.fundageek.com
Pledge Funding
• UK; www.crowdfunder.co.uk, www.wefund.com
• US; www.kickstarter.com, www.indiegogo.com,
www.gofundme.com, www.rockethub.com,
www.peerbackers.com, www.sellaband.com,
www.quirky.com, www.crowtilt.com
• Ireland; www.ifund.ie, www.fundit.ie
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Straight debt funding
• UK; www.fundingcircle.com, www.zopa.com, www.thincats.com,
www.ratesetter.com
• US; www.somolend.com, www.lendingclub.com, www.prosper.com
• Ireland; www.linkedfinance.com
Specialist Debt Funding
• UK; www.crowdahouse.com, www.marketinvoice.com,
www.platformblack.com
• US; www.receivablesexchange.com
Equity Funding
• UK; www.crowdfunder.co.uk, www.wefund.com , www.CrowdCube.com
• US; www.growvc.com, www.angellist.co, www.seedups.com,
www.secondmarket.com,www.earlyshares.com, www.fundable.com,
www.startupvalley.com
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Social Enterprise Funding
• UK; www.rebuildingsociety.com, www.buzzbnk.org,
www.crowdmission.com
• US; www.kiva.org, www.razoo.com,
www.startsomegood.com, www.waholy.com,
www.40billion.com
Multiple Funding Platforms
• UK; www.banktothefuture.com
– A site where investors can invest for shares (equity)
and/or for debt and also do charity fundraising all on the
same platform.
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