Startup camp chalmers innovation 19 september 2014
1.
Henrik
Berglund
Chalmers
University
of
Technology
Center
for
Business
Innova8on
henber@chalmers.se
www.henrikberglund.com
@khberglund
Business
Models/Customer
Development
2013-‐09-‐19
1
2. Agenda
1. Startups
vs
Companies
2. Business
Models
3. Customer
Development
33. We
Built
Startups
by
Managing
Processes
Product
Management
+
Waterfall
Engineering
34. Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
Tradi8onal
Development
Process
35. Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
Tradi8onal
Development
Process
Has
Two
Implicit
Assump8ons
36. Tradi8onal
Development
Process
Has
Two
Implicit
Assump8ons
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
Customer
Problem:
known
Product
Features:
known
Works
well
for
incremental
development
projects
targe5ng
exis5ng
customers.
37. Tradi8on
–
Hire
Marke8ng
-‐
Create
Marcom
Materials
-‐
Create
Posi5oning
-‐
Hire
PR
Agency
-‐
Early
Buzz
-‐
Create
Demand
-‐
Launch
Event
-‐
“Branding”
Marke5ng
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
38. Tradi8on
–
Hire
Sales
-‐
Create
Marcom
Materials
-‐
Create
Posi5oning
-‐
Hire
PR
Agency
-‐
Early
Buzz
-‐
Create
Demand
-‐
Launch
Event
-‐
“Branding”
-‐
Build
Sales
Organiza5on
Marke5ng
Sales
-‐
Hire
Sales
VP
-‐
Hire
1st
Sales
Staff
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
39. Tradi8on
–
Hire
Business
Development
-‐
Create
Marcom
Materials
-‐
Create
Posi5oning
-‐
Hire
PR
Agency
-‐
Early
Buzz
-‐
Create
Demand
-‐
Launch
Event
-‐
“Branding”
-‐
Build
Sales
Organiza5on
Marke5ng
Sales
-‐
Hire
Sales
VP
-‐
Hire
1st
Sales
Staff
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
-‐
Hire
First
Bus
Dev
-‐
Do
deals
for
FCS
Business
Development
40. Example
-‐
Recognize
these?
Online
clothes
retailer
specialized
in
fashion
and
sports
(e.g.
Adidas,
Fila,
Vans,
Converse,
DKNY
and
Fred
Perry).
Raised
$160
million
(JP
Morgan,
Goldman
Sachs,
Bernard
Arnault,
BenePon
+
six).
Developed
an
innova8ve
site
with
3D,
zoom,
360⁰
rota8on
and
virtual
mannequins,
powered
by
lots
of
JavaScript
and
Flash
Anima8ons.
Rapidly
grew
to
420
people
and
spent
heavily
on
PR
pre
launch.
Delayed
launch
repeatedly
due
to
technological
problems.
Finally
launched
in
18
countries
simultaneously
8:59
November
3
1999
EST.
41.
42. What
happened?
40
%
of
visitors
could
not
access
the
site.
Mac
users
could
not
operate
the
site
at
all.
The
site
was
very
difficult
to
use
and
full
of
errors,
oten
causing
computers
to
freeze.
Extremely
slow
to
load
without
broadband.
Only
one
in
four
aPempts
to
make
a
purchase
worked.
Low
conversion
rates
(0.25%).
Conversion
rates
did
double
by
Christmas.
30%
returns,
not
10%
as
projected.
A
“low-‐bandwidth
version”
was
relaunched
within
months.
But
low
sales
+
high
costs
“Eighty-‐one
minutes
to
pay
too
much
money
for
a
pair
of
shoes
that
I
am
s8ll
going
to
have
to
wait
a
week
to
get?”
=>
Bankruptcy.
43. "Our
strong
investor
base
offers
a
solid
founda5on
for
boo.com.
The
fact
that
such
interna5onal
investors
have
invested
in
boo.com
reflects
the
power
of
our
business
model
and
the
boo.com
brand."
Patrik
Hedelin,
Execu2ve
Chairman.
(Press
Release,
Nov
3
1999)
Validated
Business
Model?
44. The
problem
–
untested
assump8ons!
Visualiza5on
of
the
business
model
framwork
Key
ac5vi5es
Partnering,
E-‐commerce,
Global
taxes
&
payments,
Marke5ng
Value
proposi5on
Fashion
and
sports
online,
Realis5c
shopping
experience,
“Life-‐s5le
choice”
.
Customer
rela5onships
Paid
&
Earned
Media
Visitor
numbers,
Conversion
rates
Customer
segments
“young,
well-‐off,
fashion-‐
conscious
18
to
24
year
olds”
Cost
structure
Call
centres,
Return
rates,
Inventory
Key
resources
Developers,
Risk
capital
Revenue
Streams
Online
sales/
full
retail
price,
CAC
&
Life5me
Value
Channels
Buying
online,
Channel
conflicts,
Zone
pricing
Key
partners
Brands,
Warehouses,
Logis5cs
45. What’s
wrong
with
this
picture?
• Both
Customer
Problems
and
Product
Features
are
hypotheses
• Emphasis
on
execu8on
rather
than
learning
and
discovery
• No
relevant
milestones
for
marke8ng
and
sales
• Oten
leads
to
premature
scaling
and
a
heavy
spending
hit
if
product
launch
fails
You
do
not
know
if
you
are
wrong
un5l
you
are
out
of
money/business
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
46. -‐
Create
Marcom
Materials
-‐
Create
Posi5oning
-‐
Hire
PR
Agency
-‐
Early
Buzz
-‐
Create
Demand
-‐
Launch
Event
-‐
“Branding”
-‐
Build
Sales
Organiza5on
Marke5ng
Sales
-‐
Hire
Sales
VP
-‐
Hire
1st
Sales
Staff
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
-‐
Hire
First
Bus
Dev
-‐
Do
deals
for
FCS
Business
Development
51. Focus
on
understanding
Customers
and
Markets
from
Day
One!
Visualiza5on
of
the
business
model
framwork
Key activities
Value proposition
Customer
relationships
Customer
segments
Cost
structure
Key
resources
Revenue
streams
Channels
Key partners
52. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Problem
53. Business
Model
Hypotheses
Strategy
Process
“Customer”
&
Agile
Development
Opera8ng
Plan
+
Financial
Model
Product
Management
&
Waterfall
Development
Search
Execu5on
59. Founders run an agile
“Customer Development” Team
No sales, marketing and business
development
60. Business
Model
Hypotheses
Organiza5on
Customer
Development
Team,
Founder-‐driven
Customer
Development,
Agile
Development
Opera8ng
Plan
+
Financial
Model
Product
Management
Agile
or
Waterfall
Development
Func5onal
Organiza5on
by
Department
Search
Execu5on
Strategy
Process
61. Business
Model
Hypotheses
Organiza5on
Customer
Development
Team,
Founder-‐driven
Customer
Development,
Agile
Development
Opera8ng
Plan
+
Financial
Model
Product
Management
Agile
or
Waterfall
Development
Func8onal
Organiza8on
by
Department
Search
Execu5on
Strategy
Process
65. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
66.
•
A
diagram
of
components
and
rela8onships
•
A
scorecard
for
hypothesis
tes8ng
67. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
68. Customers
and
problems
Who
is
the
customer?
Mul8-‐sided
market?
Different
from
user?
hPp://www.businessmodelalchemist.com/2012/08/achieve-‐product-‐market-‐fit-‐with-‐our-‐brand-‐
new-‐value-‐proposi8on-‐designer.html
69. Customers
and
problems
-‐
jobs
to
be
done
What
func8onal
jobs
is
your
customer
trying
get
done?
(e.g.
perform
or
complete
a
specific
task,
solve
a
specific
problem…)
What
social
jobs
is
your
customer
trying
to
get
done?
(e.g.
trying
to
look
good,
gain
power
or
status…)
What
emo8onal
jobs
is
your
customer
trying
get
done?
(e.g.
esthe8cs,
feel
good,
security…)
“What
jobs
are
the
customers
you
are
targe2ng
trying
to
get
done”
70. Customers
and
problems
-‐
customer
pains
What
does
your
customer
find
too
costly?
(e.g.
takes
a
lot
of
8me,
costs,
effort)
What
makes
your
customer
feel
bad?
(e.g.
frustra8ons,
annoyances)
How
are
current
solu8ons
under-‐
performing
for
your
customer?
(e.g.
lack
of
features,
performance,
malfunc8on)
What
nega8ve
social
consequences
does
your
customer
encounter
or
fear?
(e.g.
loss
of
face,
power,
trust,
or
status)
“What
are
the
costs,
nega2ve
emo2ons,
bad
situa2ons
etc.
that
your
customer
risks
experiencing
before,
during,
and
a>er
ge?ng
the
job
done.”
71. Customers
and
problems
-‐
customer
gains
Which
savings
would
make
your
customer
happy?
(e.g.
in
terms
of
8me,
money
and
effort)
What
would
make
your
customer’s
job
or
life
easier?
(e.g.
flaPer
learning
curve,
more
services,
lower
cost
of
ownership)
What
posi8ve
social
consequences
does
your
customer
desire?
(e.g.
makes
them
look
good,
increase
in
power,
status)
What
are
customers
looking
for?
(e.g.
good
design,
guarantees,
features)
What
do
customers
dream
about?
(e.g.
big
achievements,
big
reliefs)
“What
are
the
benefits
your
customer
expects,
desires
or
would
be
surprised
by.”
72. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
74. Can
your
product/service:
• Produce
savings?
• Make
your
customers
feel
bePer?
• Put
an
end
to
difficul8es?
• Wipe
out
nega8ve
social
consequences?
Unique
Value
Proposi5ons/Solu5on
75. Can
your
product/service:
• Outperform
current
solu8ons?
• Produce
outcomes
that
go
beyond
their
expecta8ons?
• Make
your
customer’s
job
or
life
easier?
• Create
posi8ve
social
consequences?
Unique
Value
Proposi5ons/Solu5on
78. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
79. How
Do
You
Want
Your
Product
to
Get
to
Your
Customer?
79
Yourself
Through someone else
Retail
Wholesale
Bundled with other goods or services
"
"
"
"
"
82. How
Does
Your
Customer
Want
to
Buy
Your
Product
from
your
Channel?
82
• Same day
• Delivered and installed
• Downloaded
• Bundled with other
products
• As a service
• …
"
"
"
"
"
"
83. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
86. Solu8on
Unfair
Advantage
Customer
Segments
Key
Metrics
Channels
Cost
Structure
Revenue
Streams
Unique
Value
Proposi8on
Who
are
your
customers?
Who
are
earlyvangelists?
Problem
Single,
clear,
compelling
message
that
states
why
you
are
different
and
worth
buying
from
That
can’t
be
easily
bought,
or
imitated?
How
do
you
reach
customers?
Key
features
MVP
What
are
you
customers’
key
jobs/pains/gains?
What
metrics
are
most
cri8cal
to
track?
Customer
Acquisi8on
Costs
Distribu8on
Costs
Hos8ng
People
etc.
Fixed/variable
Revenue
Model
Life
Time
Value
Revenue/pricing
etc.
95. …they
focus
on
execu8ng
the
plan…
• Both
Customer
Problems
and
Product
Features
are
hypotheses
• Emphasis
on
execu8on
rather
than
learning
and
discovery
• No
relevant
milestones
for
marke8ng
and
sales
• Oten
leads
to
premature
scaling
and
a
heavy
spending
hit
if
product
launch
fails
You
do
not
know
if
you
are
wrong
un5l
you
are
out
of
money/business
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
97. …
and
end
up
going
bust.
“We
have
been
too
visionary.
We
wanted
everything
to
be
perfect,
and
we
have
not
had
control
of
costs"
Ernst
Malmsten
(BBC
News,
May
18
2000)
100. Focus
on
Customers
and
Markets
from
Day
One!
Visualiza5on
of
the
business
model
framwork
Key activities
Value proposition
Customer
relationships
Customer
segments
Cost
structure
Key
resources
Revenue
streams
Channels
Key partners
101. Product
and
Customer
Development
Product Development
Customer Development
Company
Building
Customer
Discovery
Customer
Validation
Customer
Creation
+
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
102. Problem:
unknown
Solu8on:
unknown
Product
and
Customer
Development
103. Customer
Development:
Key
Ideas
• Parallel
process
to
Product
Development
(agile)
• Measurable
checkpoints
not
5ed
to
FCS
but
to
customer
insights
• Emphasis
on
itera5ve
learning
and
discovery
before
execu5on
• Must
be
done
by
small
team
including
CEO/project
leader
104. Customer
Development
Heuris8cs
• There
are
no
facts
inside,
so
get
out
of
the
building!
• Develop
for
the
few,
not
for
the
many
• Earlyvangelists
make
your
company,
and
are
smarter
than
you!
• Develop
a
minimum
viable
product
to
maximize
fast
learning.
• Nail
it
before
you
scale
it
–
low
burn
by
design!
105. • Customer
Discovery
Ar8culate
and
Test
your
Business
Model
Hypotheses
• Customer
Valida5on
Sell
your
MVP
and
Validate
your
MB
&
Sales
Roadmap
• Customer
Crea5on
Scale
via
relentless
execu8on
and
fill
the
sales
pipeline
• Company
Building
(Re)build
company’s
organiza8on
&
management
Customer
Development:
Four
Stages
search
execu8on
106. Customer Discovery
• Articulate and test
your BM hypotheses
• No selling, just listening
• Must be done by CEO/
project manager
112. ”Do
you
have
this
problem?”
1.
2.
3.
Test Customer Problem Hypotheses
113. ”Do
you
have
this
”Tell
me
about
it,
how
problem?”
do
you
solve
it
today?”
1.
1.
2.
2.
3.
3.
Test Customer Problem Hypotheses
114. ”Do
you
have
this
”Tell
me
about
it,
how
”Does
something
like
this
problem?”
do
you
solve
it
today?”
solve
your
problem?”
1.
1.
1.
2.
2.
2.
3.
3.
3.
Listen
carefully
to
what
they
say
at
each
step!
Focus
on
learning
-‐
Don’t
try
to
sell
them
on
your
idea!
In
the
process
you
find
out
about
other
BM
parts
as
well:
workflow,
benefits
(to
users
&
others),
preferred
channels,
cri5cal
influencers,
respected
peers
etc…
You
want
to
become
a
domain
expert!
Test Customer Problem Hypotheses
116. Be
prepared
to
go
off
script
If
users
get
worked
up
–
don’t
stay
on
script,
but
follow
their
lead
and
drill
down!
117. Don’t
talk
You
should
be
talking
as
8Ple
as
possible!
Don’t
fear
”uncomfortable
silence”
(let
them
break
it).
80/20
is
a
good
ra8o
to
aim
for.
118. Ask
brief
follow-‐ups
That
sounds
expensive/inefficient/painful…
Tell
me
more!
When
was
the
last
2me
that
happened?
Can
you
give
an
example?
What
do
you
mean
by
that?
Can
you
explain
that
a
liMle
more?
What
else
do
you
do?
How
do
you
feel
about
that?
What
are
you
thinking?
120. Don’t
assume
things
Bad:
You
love
walking
your
dog!
Good:
How
do
you
feel
about
walking
your
dog?
Even
Bener:
What
was
it
like
the
last
8me
you
walked
your
dog?
121. If you could wave a magic wand and be
able to do anything that you can’t do today,
what would it be?
(Don’t worry about if it’s possible)
122. Write
up
results
a.s.a.p.
Take
notes.
Write
upp
results
insights
immediately
ater
the
interview!
123. More
interview
8ps
hPp://www.cindyalvarez.com/communica8on/customer-‐
development-‐interviews-‐how-‐to-‐what-‐you-‐should-‐be-‐learning
hPp://giffconstable.com/2012/12/12-‐8ps-‐for-‐early-‐customer-‐
development-‐interviews-‐revision-‐3/
hPp://jasonevanish.com/2012/01/18/how-‐to-‐structure-‐and-‐
get-‐the-‐most-‐out-‐of-‐customer-‐development-‐interviews/
124.
“nice
to
have”
Jackpot!
1.
Has
a
problem
2.
Understands
he
or
she
has
a
problem
3.
Ac8vely
searching
for
a
solu8on
4.
Cobbled
together
an
interim
solu8on
5.
CommiPed
funds
for
a
solu8on
Useful
people
to
talk
to
125. Much
faster
to
build
=>
get
quan8ta8ve
feedback
sooner.
Use
a
low-‐fi
landing
page
as
subs8tute
for
(and
introduc8on
to)
conversa8ons.
Key
to
drive
traffic
through
AdWords/
Facebook
Ads/Promoted
Tweets
etc.
Build
(design
test),
measure
(run
test)
and
analyze
(evaluate
test)!
Web
128. Test
Solu8on
Hypothesis
1)
”We
believe
you
have
this
important
problem”
–
listen
(check).
2)
Demo
how
your
product
solves
the
problem.
Focusing
on
a
few
key
features.
Include
workflow
story:
”life
before
our
product”
and
”life
ater
our
product”
–
listen!
3)
”What
would
this
solu8on
need
to
have
for
you
to
purchase
it?”
Listen,
ask
follow
up
ques8ons.
129.
130. Dropbox
• 1st
solu8on
test:
a
three
minute
video
made
in
the
founder’s
apartment
before
a
complete
code
was
wriPen.
– Generated
valuable
feedback
from
visionary
customers.
• 2nd
solu8on
test:
another
video
of
the
product
that
was
posted
on
a
social
network.
– Wai8ng
list
jumped
from
5
000
to
75
000.
• Dropbox’s
original
intent
was
to
build
and
ship
their
product
in
eight
weeks.
• Instead,
they
gathered
feedback
and
launched
a
public
version
18
months
later.
131.
132. Test Product Hypotheses
Ater
demoing,
ask
about
other
things:
Posi8oning
–
how
do
they
describe
the
product?
Product
category
(new,
exis8ng,
resegmented)
Compe8tors
Features
needed
for
first
version
Preferred
revenue
model
Pricing
Addi8onal
service
needs
Marke8ng
–
how
do
they
find
this
type
of
product?
Purchasing
process
Who
has
a
budget?
etc.
133. Build
out
a
high-‐fidelity
web
page
with
“func8oning”
back-‐end,
based
on
lessons
learned.
“Mechanical
Turk”-‐solu8on.
Ask
for
money:
first
“pre-‐order”
then
charging.
Con8nue
to
test,
measure
and
analyze!
Web
134.
135.
136.
137.
138. Consistent
answers
from
“enough”
people?
What
are
your
customers
top
problems?
How
much
will
they
pay
to
solve
them?
Does
your
product
concept
solve
them?
Do
customers
agree?
How
much
will
they
pay
for
it?
When?
Can
you
draw
a
day-‐in-‐the-‐life
of
a
customer?
Before
&
ater
your
product
Can
you
draw
the
org
charts
of
users,
buyers
and
channels?
Customer
Discovery:
Exit
Criteria
139. Customer Validation
• Develop
and
sell
MVP
to
passionate
earlyvangelists
• Validate
a
repeatable
sales
roadmap
• Verify
the
business
model
140. Based
on
your
insights
from
Customer
Discovery,
sell
the
smallest
feature
set
customers
are
willing
to
pay
for!
• Purpose
1:
Reduce
wasted
engineering
hours
(and
wasted
code)
• Purpose
2:
Get
something
into
the
hands
of
earlyvangelists
as
soon
as
possible
=>
maximize
learning!
(cf.
landing
page)
Minimal
Viable
Product
141. The
Apple
I,
Apple’s
first
product,
was
sold
as
an
assembled
circuit
board
and
lacked
basic
features
such
as
a
keyboard,
monitor,
and
case.
142. The
owner
of
this
unit
added
a
keyboard
and
a
wooden
case.
hPp://en.wikipedia.org/wiki/Apple_Inc.
145. The
MVP
is
not
the
goal
=
Requires
commitment
to
itera8on!
• “A
complex
system
that
works
is
invariably
found
to
have
evolved
from
a
simple
system
that
worked.”
• “A
complex
system
designed
from
scratch
never
works
and
cannot
be
made
to
work.
You
have
to
start
over,
beginning
with
a
working
simple
system.”
Minimal
Viable
Product
John
Gall
System-‐an8cs:
How
Systems
Really
Work
and
Especially
How
They
Fail
146. Do
you
have
a
proven
sales
roadmap?
Organiza8on
chart?
Influence
map?
No
staffing
un8l
roadmap
is
proven!
Do
you
have
a
set
of
orders
($’s)
of
the
product
valida8ng
the
roadmap?
Is
the
business
model
scalable?
LTV
>
CAC
Customer
Valida8on:
Exit
Criteria
148. If
no
–
Pivot!
•
The
heart
of
Customer
Development
•
Change
without
crisis
(and
without
firing
execu8ves)
“The
idea
that
successful
startups
change
direc2ons
but
stay
grounded
in
what
they've
learned”
155. • Grow
customers
from
few
to
many
• Comes
ater
proof
of
sales
• Inject
$’s
for
scale
• This
is
where
you
“cross
the
chasm”
Customer
Crea8on
156. • (Re)build
company’s
organiza8on
&
management
• Dev.-‐centric
⇒
Mission-‐centric
⇒
Process-‐centric
Company Building
157. • Customer
Discovery
Ar8culate
and
Test
your
Business
Model
Hypotheses
• Customer
Valida5on
Sell
your
MVP
and
Validate
your
BM
&
Sales
Roadmap
• Customer
Crea5on
Scale
via
relentless
execu8on
and
fill
the
sales
pipeline
• Company
Building
(Re)build
company’s
organiza8on
&
management
Summary
–
Customer
Development
158. Don’t
do
a
Boo!
Concept
Product
Dev.
Alpha/Beta
Test
Launch/
1st
Ship
“We
have
been
too
visionary.
We
wanted
everything
to
be
perfect,
and
we
have
not
had
control
of
costs"
Ernst
Malmsten
(BBC
News,
May
18
2000)
159.
by
Steve
Blank
and
Bob
Dorf
More
info:
www.steveblank.com
Buy
the
book:
hPp://www.amazon.com/gp/product/0984999302/
Presenta8on
based
on
160.
developed
by
Steve
Blank
and
Bob
Dorf
hPp://www.slideshare.net/sblank/
Using
slides
from
161.
Chalmers
University
of
Technology
Center
for
Business
Innova8on
www.henrikberglund.com
Follow
me
on
twiner:
@khberglund
Henrik
Berglund
2013-‐09-‐19
161