At BSG, we believe in being a proactive force for positive change,

making a difference in everything we do.

Unlocking potential. Accelerating performance

STOP GUESSING!

16th October

Jurie Schoeman

What we know: the world is getting smaller, again…

Convergence…

Everybody wants to own the platform

If you own the platform, you own the customer,

otherwise you’re just a value-added service provider….

Product Service

Value

Best match wins

But what do our customers need?

Nobody knows for sure, not even our

customers….

How have we (mostly) always done things?

HOPE and

The Big

launch Grand plan Blueprint

Dedicate

resources Build

Do we know

enough?

What do we

need to

move to

looking like?

Who?

How much?

What am I

committing to

show as a

return?

Overruns?

Why is it

taking so

long?

Will it

work?

Typically, it takes a long time to get from initial commitments to actual results…

1 2 3

Is this the right thing to do?

Are we managing expectations effectively?

Are we confident that this will work?

We’re smart people after all… so we have good ideas!

Is there another way?

Real customers, in real situations, are often not part of this at all!

Vanity metrics!

So where does this leave us?

Making big bets and

hoping for the best

HOPE

Build confidence iteratively, in line

with investment

Alan Smithee –

78 movie credits

on IMDB.com

Does it work?

There have always only been two good outcomes for any idea

Knowing

NOT Knowing

Thinking it’s still a good idea but not knowing

Knowing

A better way to innovate

If we know that we don’t have all the

answers, why are we surprised that

we get things wrong?

Origin of the Lean Start-up

Recognition that existing businesses execute a business

model, while start-ups look for one!

Start-ups were originally based on valuing

business plans

No customer

feedback built in

No confidence in

5 year view BUSINESS

CASE

Innovation + ongoing validation = invest with confidence

Create Context

What should the

business look like?

Problem /

Solution Fit

Is there a problem

worth solving?

Product /

Market Fit Do we have a solution

that people are

prepared to

pay for?

Scale

Proven market

product - invest in

growth!

Business model canvas Research insights, analytics

UVP Canvas Get out of the building

MVP Develop the smallest

set of functions that you

can use to get feedback

from real people – early

adopters

Proceed with

confidence Get Production, Sales &

Marketing involved

ROI justifiable

1

2

3

4

MEASURE

Pivot

Persevere

The Business Model Canvas

No customer

feedback built in

The Unique Value Proposition Model

No customer

feedback built in 1 – 2: What is the problem

we’re solving, and is it a

problem worth solving?

3 – 4: Will the

market be willing

to pay for our

solution?

everything!

“Get out of the building!”

Test

HYPOTHESIS

How does this

align to our

business model Focus

Is this worth

solving? Let’s test

MVP

REFINE

EXECUTE

Will the market buy it? Let’s build and test with

early adopters

Product

Market fit

Sales and Marketing roadmap

Build the business!

Scale execution

Operations

Find partners

What’s our

next great

idea?

How does the business

fit together?

1. Problem? 2. Solution?

3. Pay?

GREAT

IDEA

BAD

IDEA

STOP GUESSING!

UVP

New concepts to appreciate

MVP

Build /

Measure /

Learn

Pivot or

persevere

Customer

needs

Vanity

metrics

UVP

Failing is

good – as

long as we do

it quickly and

cheaply

Checklist to create confidence

When you’ve validated Problem / Solution fit, and Product / Market fit, then Scale with confidence!

Be prepared to fail and expect to do so!

Include customers in ALL steps

Arm yourself with enough research data to make a start

Then build the smallest thing you need to get real feedback

Use this to validate your ideas, and set direction in terms of pivoting or persevering

Who is doing this already?

In a world of rapidly reducing barriers to entry, 1,000s of start-ups that you haven’t heard of (yet) but who will probably be your next competitors, very, very soon!

References

The Business Model Generation by

Alex Osterwalder

‘Why the Lean Start-up changes

everything’

HBR article by Steve Blank

The Lean Startup by Eric Ries

Running Lean by Ash Maurya

Contact Us

Jurie Schoeman:

jurie.schoeman@bsg.co.za

C: +27 83 302 7169

T: + 27 11 215 6666

Johannesburg office:

33 Fricker Road

Illovo Boulevard

2196

Talk to us about how we can unlock your potential

www.bsg.co.za

www.bsgdelivers.com