Upload
kristian-luoma
View
722
Download
4
Embed Size (px)
DESCRIPTION
Stuff I've learned about Creating Markets. Talk on 22th of November, 2012.
Citation preview
NEWMARKET CREATIONKristian Luoma22.11.2012
DISRUPTIVE INNOVATION = MARKET CREATION
INCREMENTAL INNOVATION = INCUMBENTS RULE HERE
MARKET CREATION = BEST CHANCE FOR A STARTUP
Act of making something that is more useful, affordable or better
for someone - than existing alternatives
1 IDEOLOGY2 TOOLS3 WORKSHOP
3 PARTS:
1 IDEOLOGY
STARTUP DEFINITION
“STARTUP IS AN EXPERIMENT FOR CREATING A SUSTAINABLE BUSINESS”
STARTUP REDEFINED
“STARTUP IS A SERIES OF EXPERIMENTS FOR CREATING A SUSTAINABLE BUSINESS”
STARTUP SCORECARD - RECORD OF PROGRESSO
PERA
TIVE
CA
PAB
ILIT
Y
MARKET EVOLUTION
STARTUP SCORECARD - RECORD OF PROGRESSO
PERA
TIVE
CA
PAB
ILIT
Y
MARKET EVOLUTION
WHY?Grand Vision
HOW?Resources, culture and
skills
WHAT?Scalable
business model & Product-market fit
PRODUCT WITH A MARKET - DEFINITION
PRODUCT THAT SOLVES A PROBLEM FOR CUSTOMERS THAT ARE WILLING TO PAY FOR IT
PRODUCT WITH A MARKET - DEFINITION
PRODUCT THAT SOLVES A PROBLEM FOR CUSTOMERS THAT ARE WILLING TO PAY FOR IT
Complete,����������� ������������������ right����������� ������������������ features
Targeted
Relevant
Unique
Makes����������� ������������������ money
IS RELEVANT
IS UNIQUE
right����������� ������������������ features,packaging,����������� ������������������ easy����������� ������������������ to����������� ������������������ hire����������� ������������������ for����������� ������������������ a����������� ������������������ job
price����������� ������������������ point,����������� ������������������ channel,����������� ������������������ value����������� ������������������ proposition
Stuff����������� ������������������ I����������� ������������������ buy
Scarce resources needs to be managed.
PROBLEMS WE TRY TO SOLVE 1/3
Products are created too soon.
PROBLEMS WE TRY TO SOLVE 2/3
Products are created too late.
PROBLEMS WE TRY TO SOLVE 3/3
Want-button for Wantlet vs. Pinterest Pin-it-button
MOTIVATION EXAMPLE #1
Ubi Oulu
MOTIVATION EXAMPLE #2
Make every experiment count, when it counts.
GOAL
2 TOOLS
Find a Systematic Approach for Market Creation
MISSION
LEAN MOVEMENT by ERIC RIES
“SCIENTIFIC METHOD”
OBSERVE
QUESTION
HYPOTHESIZE
EXPERIMENT
CONCLUDE
STARTUP EVOLUTION: MARKET CREATION PERSPECTIVE
PROBLEM / SOLUTION
FIT
PRODUCT / MARKET FIT
SCALE
STARTUP EVOLUTION: MARKET CREATION PERSPECTIVE
PROBLEM / SOLUTION
FIT
PRODUCT / MARKET FIT
SCALE
VALIDATED LEARNING
via PIVOTSGROWTH via OPTIMIZE
Experiment-driven����������� ������������������ decisions
Fast, Recoverable and Explicit
PERFECT EXPERIMENT
STARTUP SCORECARD: RECORD OF PROOFO
PERA
TIVE
CA
PAB
ILIT
Y
MARKET EVOLUTION
PROBLEM / SOLUTION
FIT
PRODUCT / MARKET FIT
SCALE
GROWTH via OPTIMIZEVALIDATED LEARNING
via PIVOTS
#1 Lean Canvas #2 Progressive Learning BoardProduct Hacker Extras: “Jobs to be done”
TOOLS
#1: LEAN CANVAS by ASH MAURYA“FROM BUSINESS PLAN TO BUSINESS MODEL”
#3: LEAN CANVASPROBLEMS:
CURRENT SOLUTIONS:
SOLUTION: UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
UNFAIR ADVANTAGE: CUSTOMER SEGMENTS:
EARLY ADOPTERS
PROBLEMS:
CURRENT SOLUTIONS:
METRICS:
UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
CHANNELS:
CUSTOMER SEGMENTS:
EARLY ADOPTERS
COSTS:COSTS:COSTS: REVENUE:REVENUE:REVENUE:
#3: LEAN CANVASPROBLEMS:
Top 3 Problems
CURRENT SOLUTIONS:
Competitive solutions for solving the problem
SOLUTION:
Top 3 Solutions
UNIQUE VALUE PROPOSITION:
Single, clear, compelling message that states way you are different and worth buying
UNIQUE VALUE PROPOSITION:
Single, clear, compelling message that states way you are different and worth buying
UNFAIR ADVANTAGE:
Can’t be easily bought or copied
CUSTOMER SEGMENTS:
Target customers
EARLY ADOPTERS:
Who’s the first to adapt to your solution?
PROBLEMS:
Top 3 Problems
CURRENT SOLUTIONS:
Competitive solutions for solving the problem METRICS:
Key activities you measure
UNIQUE VALUE PROPOSITION:
Single, clear, compelling message that states way you are different and worth buying
UNIQUE VALUE PROPOSITION:
Single, clear, compelling message that states way you are different and worth buying
CHANNELS:
Path to customers
CUSTOMER SEGMENTS:
Target customers
EARLY ADOPTERS:
Who’s the first to adapt to your solution?
COSTS:
Customer acquisition costsDistribution costsHostingPeople, etc.
COSTS:
Customer acquisition costsDistribution costsHostingPeople, etc.
COSTS:
Customer acquisition costsDistribution costsHostingPeople, etc.
REVENUE:
Revenue modelLife time valueRevenue Gross margin
REVENUE:
Revenue modelLife time valueRevenue Gross margin
REVENUE:
Revenue modelLife time valueRevenue Gross margin
#3: LEAN CANVAS (EXAMPLE: FACEBOOK)PROBLEMS:
Hard to reach specific people with specific demographics1. Hard to stay in touch with all friends at once2. How do I share my baby pictures?
CURRENT SOLUTIONS:Online ads e.g. GooglePostcards, Calls, ..
SOLUTION:
Targeted ads
Share, Like, Newsfeed, friends and profiles
UNIQUE VALUE PROPOSITION:
Targeted advertising
Connect to friends and family
UNIQUE VALUE PROPOSITION:
Targeted advertising
Connect to friends and family
UNFAIR ADVANTAGE:
1 Billion usersKnows everything
CUSTOMER SEGMENTS:
Marketers
Consumers at large
EARLY ADOPTERS
High schools
PROBLEMS:
Hard to reach specific people with specific demographics1. Hard to stay in touch with all friends at once2. How do I share my baby pictures?
CURRENT SOLUTIONS:Online ads e.g. GooglePostcards, Calls, ..
METRICS:
CPC/CPM avg. bid pricing# Served ads # of conversions
DAU
UNIQUE VALUE PROPOSITION:
Targeted advertising
Connect to friends and family
UNIQUE VALUE PROPOSITION:
Targeted advertising
Connect to friends and family
CHANNELS:
Media agencies Facebook merchant advertising program
Friend invitations (c2c, virality)Facebook like-partners
CUSTOMER SEGMENTS:
Marketers
Consumers at large
EARLY ADOPTERS
High schools
COSTS:
DevelopmentHostingLobbying
COSTS:
DevelopmentHostingLobbying
COSTS:
DevelopmentHostingLobbying
REVENUE:
Highly targeted - CPC/CPM advertising (“e.g. pay to display an ad to 25 yo old men, that like World of Warcraft in Oulu”)
Free for consumers
REVENUE:
Highly targeted - CPC/CPM advertising (“e.g. pay to display an ad to 25 yo old men, that like World of Warcraft in Oulu”)
Free for consumers
REVENUE:
Highly targeted - CPC/CPM advertising (“e.g. pay to display an ad to 25 yo old men, that like World of Warcraft in Oulu”)
Free for consumers
#3: LEAN CANVAS (FILL ORDER)PROBLEMS:
CURRENT SOLUTIONS:
SOLUTION: UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
UNFAIR ADVANTAGE: CUSTOMER SEGMENTS:
EARLY ADOPTERS:
PROBLEMS:
CURRENT SOLUTIONS:
METRICS:
UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
CHANNELS:
CUSTOMER SEGMENTS:
EARLY ADOPTERS:
COSTS:COSTS:COSTS: REVENUE:REVENUE:REVENUE:
12 34
5
67
8
9
#2: PROGRESSIVE LEARNING BOARD“DE-RISKING PRODUCT CREATION”
4 KINDS OF RISK IN MARKET EVOLUTION(NOT SOLVED LINEARLY, BUT KIND OF APPEAR CHRONOLOGICALLY)
PRODUCT RISK
GROWTH / SCALE RISK
MARKET RISK
COMPETITIVENESS AND PROFIT RISK
PRODUCT RISK
GROWTH / SCALE RISK
MARKET RISK
COMPETITIVENESS AND PROFIT RISK
Valu
atio
n
Time
(applied from Mark Suster)
PRODUCT RISK
How important is the problem for the customer?
Will your solution solve the problem? Can you build it?Does your solution deliver a unique value proposition?
MARKET RISK
How do they solve problems today?
Will they pay for the problem? If not, who will?
Who has the pain?
GROWTH AND SCALE RISK
How will you find customers?
How will customers find you (at scale)?
How will your growth engine operate (viral, paid, sticky, ..?)How will you scale to demand?
COMPETITIVENESS AND PROFIT RISK
Are you getting paid?
Do you have a viable business (LTV!)?
Do you have a way to build unfair advantage?
LEARNING/DE-RISKING ON LEAN CANVAS PROBLEMS:
CURRENT SOLUTIONS:
SOLUTION: UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
UNFAIR ADVANTAGE: CUSTOMER SEGMENTS:
EARLY ADOPTERS:
PROBLEMS:
CURRENT SOLUTIONS:
METRICS:
UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
CHANNELS:
CUSTOMER SEGMENTS:
EARLY ADOPTERS:
COSTS:COSTS:COSTS: REVENUE:REVENUE:REVENUE:
12 34
5
67
8
9PRODUCT
RISK:1
PRODUCT RISK:
2
PRODUCT RISK:
3 GROWTH RISK:
1
GROWTH RISK:
2MARKET RISK:
2
MARKET RISK: 3
COMPETITIVE &
PROFIT RISK: 1
MARKET RISK: 1
GROWTH RISK:
3
COMPETITIVE &
PROFIT RISK: 2
COMPETITIVE &
PROFIT RISK: 3
EXAMPLE: LEARNING IN LEAN IN PRACTICE
PROGRESSIVE LEARNING BOARD
Lean Canvas Module
Experiment 1: e.g. “Problem Interviews”
Experiment 2: e.g. Interviews
Experiment 3: e.g. Prototype Experiment 4: e.g. MVP
Experiment 5: e.g. v1.0
Problem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskThere is a customer segment with the problem CUSTOMERProblem is important to the customer segment
PROBLEMProduct delivers UVP (is unique and relevant to customer)
UVP
Product/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskThere is a way to build the product to solve the problem
SOLUTIONThere is a way to connect with early-adopters CUSTOMERCustomers are willing to pay for the solution to the problem
REVENUE
Growth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale Risk
We are able find customers CHANNEL
Customers are able to find us CHANNELEngine of growth is operative (viral, sticky or paid)
CHANNEL / REVENUE
We are able to scale on demand SOLUTION / COST / METRIC
Market / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization Risk
We are getting paid REVENUEWe are able to generate revenue from each customer
REVENUE / COST
We have an unfair advantage UNFAIR ADVANTAGE
Before each experiment: Define your hypothesis and ways you
validate learning
Choose the fastest way to test as an
experiment
PRODUCT HACKER EXTRAS: JOBS-TO-BE-DONEby CLAYTON CHRISTENSEN
STORY ABOUT A MILKSHAKE:WHAT JOB DO YOU HIRE A MILKSHAKE FOR?
JOBS TO BE DONEEXPERIENCES COMPLEMENTINGINTEGRATED SERVICES OFFERING
RECOMMENDATIONS:READ-WORTHY LITERATURE
3 WORKSHOP
#3: LEAN CANVAS (FILL ORDER)PROBLEMS:
CURRENT SOLUTIONS:
SOLUTION: UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
UNFAIR ADVANTAGE: CUSTOMER SEGMENTS:
EARLY ADOPTERS:
PROBLEMS:
CURRENT SOLUTIONS:
METRICS:
UNIQUE VALUE PROPOSITION:UNIQUE VALUE PROPOSITION:
CHANNELS:
CUSTOMER SEGMENTS:
EARLY ADOPTERS:
COSTS:COSTS:COSTS: REVENUE:REVENUE:REVENUE:
12 34
5
67
8
9
CURRENT HYPOTHESIS & PLAN TO EXPERIMENTBUSINESS MODEL AREA PRIORITY CURRENT HYPOTHESIS PLANNED EXPERIMENT
PROGRESSIVE LEARNING BOARD
Lean Canvas Module
Experiment 1: e.g. “Problem Interviews”
Experiment 2: e.g. Interviews
Experiment 3: e.g. Prototype Experiment 4: e.g. MVP
Experiment 5: e.g. v1.0
Problem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskProblem/Solution Fit - Product RiskThere is a customer segment with the problem CUSTOMERProblem is important to the customer segment
PROBLEMProduct delivers UVP (is unique and relevant to customer)
UVP
Product/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskProduct/Market Fit - Market RiskThere is a way to build the product to solve the problem
SOLUTIONThere is a way to connect with early-adopters CUSTOMERCustomers are willing to pay for the solution to the problem
REVENUE
Growth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale RiskGrowth / Scale Risk
We are able find customers CHANNEL
Customers are able to find us CHANNELEngine of growth is operative (viral, sticky or paid)
CHANNEL / REVENUE
We are able to scale on demand SOLUTION / COST / METRIC
Market / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization RiskMarket / Monetization Risk
We are getting paid REVENUEWe are able to generate revenue from each customer
REVENUE / COST
We have an unfair advantage UNFAIR ADVANTAGE
Before each experiment: Define your hypothesis and ways you
validate learning
Choose the fastest way to test as an
experiment
[email protected]@kluoma
MISTAKES ARE PROOF THAT YOU’RE TRYING.