Sosialisasi - Innovation Guidelines Presentation 26042013

8/13/2019 Sosialisasi - Innovation Guidelines Presentation 26042013

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INNOVATION GUIDELINES

for TELKOMbased on Lean Startup approach.


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WHY DO WE NEED

NEW APPROACHON INNOVATION?


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Launching a new enterprisewhether itsa tech start-up,a small business, oran initiative within a large

corporation

has always been

a hit-or-miss proposition.


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According to the decades-old formula.

WriteBUSINESS

PLAN.

Pitch toINVESTOR /

MANAGEMENT.

AssembleA TEAM.

Build thePRODUCT.

Launch + StartSELLING

AS HARDAS YOU CAN.

> > > >


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Idea

Idea

Prototype

Prototype

Launch

Launch

Cost of Change at Each Stage


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%startups are fail.

Shikhar Ghosh.Harvard Business School.


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1 Fatal Mistake:making something nobody wants


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The Death of Business Plan.


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Customer

Product

No Business Plan survives

first contact with customers


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(5 years) Business Plan isa FICTION.


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Good Marketing(expensive)

can NOT fixWeak Product.


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What is a STARTUP?

Startup is a humaninstitution designed todeliver a new product

under conditions ofextreme uncertainty.

Nothing to do with size of company,sector of the economy, or industry.


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is

STARTUP.

TELKOM


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STARTUP requires new RULES.


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KEBANYAKAN

ASUMSI.


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STOPWasting PeoplesTime & Money.


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LESS RISKYPROCESS TO STARTA COMPANY.

GREATER CHANCESOF SUCCESS.


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The lean method has three key principles:

1. State Your Assumptions

2. Listen to Customers

3. Quick, Responsive Development


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(Always)TEST,

MEASURE,LEARN

Consumer.

Problem.Solution.

assumptions about


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MORE experimentation over elaborate planning.

MORE customer feedback over intuition.

MORE iterative design over traditional big design up front development.

LEAN STARTUP vs TRADITIONAL APPROACH


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Case Studies:Lean Startup in

Large Organizations


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Case Study 1


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How to

expand themarket forDurathon?


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ANSWER:

Get Out Of theBuildingand talk to

HUNDREDSof potential customers

IN 5CONTINENTS


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A major shift in customer focus.

From Data Center to Utilities (Telecom)


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Learnings

Internal projects are startups!

Ti p s f r om B e t h Co mst o ck ( CMO) :

Support from the top ( in GE: CMO,CTO & CLO for cultural integration) Keep them away from mainstream Access to people, technology &

funding ( i.e. complete but limited

authority) Self-selection (not for everyone)


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Jeff ImmeltCEO General Electric

I make allmanagers readLEAN

STARTUP


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Case Study 2


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27,000comments on website,

processed withalgorithm

GOOB in 10 cities4 pivots


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Jeff ImmeltCEO General Electric

I make allmanagers readLEAN

STARTUP


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Adopter.


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Adopter.


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Influence.


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LEAN STARTUP:

A process to develop a product thatconsumers want with faster timeand less resources by VALIDATED

LEARNING.


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LEAN STARTUP:

Its involving customersthroughout the product

development(not only in the beginning).


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LEAN STARTUP:

Its when buildingRIGHT PRODUCT (Product Fit)

is more important thanperfect product.


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LEAN STARTUP:

Its starting with (Specific)Consumers Problem first.

NOT Ideas.


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LEAN STARTUP:

Its when we TEST ALL of ourASSUMPTIONS about

Customer,Problem,and Solution.


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How do we test?

MINIMUM VIABLE PRODUCT.

version of a new product which allows a

team to collect the maximum amount ofvalidated learning about customerswith the least effort.


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STORY.


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VISUAL.


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PROTOTYPE.


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STORY. VISUAL. PROTOTYPE.


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STARTUP LIFE STAGES.

BEFOREPRODUCT

VALIDATION

AFTERPRODUCT

VALIDATION

Focus on Building

Right Product+

Search Business Model

Focus on Growth /

Scale / Optimization.

>


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ACHIEVING FAILURES.

If were building somethingnobody wants, it does not matterif we accomplish it:

On time?On budget?With high quality?

ACHIEVING FAILURES = successfully executing a bad plan.


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Lean Startup Case Studies.


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Some context

100,000 many millions of users in 18months since launch

No advertising spend

Hostile environment: lots of competitors,software download

Mostly done by engineers w/ someguidance but no prior marketing experience


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How we applied lean startupprinciples at Dropbox

(sometimes on purpose, sometimes by accident)


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Part 1.

How to make a RIGHT product?


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2006: Dozens and dozens ofcloud storage companies

2006: Dozens and dozens ofcloud storage companies


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VC: There are a million

cloud storage startups!

Drew: Do you use any of them?

VC: No

Drew:


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Building a bulletproof, scalable,cross-platform cloud storage

architecture is hard


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"[product] ended up turning all my Word docs

and half my Excel Spreadsheets into 0 byte

files. Needless to say, I am not happy."

From competitors support forum:


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Learn early, learn often


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Dropboxs minimum viable product:

3 min screencast on Hacker News (Apr 07):Lots of immediate, high-quality feedback

Dropboxs minimum viable product:

3 min screencast on Hacker News (Apr 07):Lots of immediate, high-quality feedback


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Simple landing page: captureinterest/ email address

Simple landing page: captureinterest/ email address


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Private beta launch video 12,000 diggs;beta waiting list jumps from 5,000 to 75,000

in one day (Mar 2008)

Private beta launch video 12,000 diggs;beta waiting list jumps from 5,000 to 75,000

in one day (Mar 2008)


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What we learned

Biggest risk: making something no onewants

Not launching painful, but not learning

fatal Put something in users hands (doesnt have

to be code) and get real feedback ASAP

Know where your target audience hangs out& speak to them in an authentic way


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Part 2.

How to GROW (HACK)

CUSTOMERS?


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When best practices arent best


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Public launch (Sep 2008): Time to get realPublic launch (Sep 2008): Time to get real


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Public launch (Sep 2008): Time to get realPublic launch (Sep 2008): Time to get real

Our Web 2.0 Marketing Plan

Big launch at TechCrunch50 Buy some AdWords Hire, um, a PR firm, or a VP of Marketing, or

something

Our Web 2.0 Marketing Plan

Big launch at TechCrunch50 Buy some AdWords Hire, um, a PR firm, or a VP of Marketing, or

something


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Experiment: Paid search

Hired experienced SEM & affiliatemarketing guy ($$)

Picked out keywords, made landing pages

Hid the free account option for peoplearriving via paid search, replace with freetime-limited trial

Went live in early 2009


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Cost per acquisition: $233-$388Cost per acquisition: $233-$388


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Cost per acquisition: $233-$388For a $99 product. Fail.

Cost per acquisition: $233-$388For a $99 product. Fail.


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Experiments failing left and right

Problem: Most obvious keywords biddedway up

Probably by other venture-backed startups

Problem: Long tail had little volume Problem: Hiding free option was shady,

confusing, buggy

Affiliate program, display ads, etc sucked too

Economics totally broken


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But we were still doing well?

Reached 1mm users 7 months after launch

Beloved by our community


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What we learned

Lots of pressure (or guilt) to do things thetraditional way. But think first principles

Fortunately, we spent almost all our effort

on making an elegant, simple product thatjust works and making users happy

And we worked our asses off

And hired the smartest people we knew

Keep the main thing the main thing


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What we learned

Mostly ignored (or woefully mishandled): hiring non-engineers

mainstream PR

traditional messaging/ positioning

deadlines, process, best practices

having a real website

partnerships/ bizdev

having lots of features Product-market fit cures many sins of

management


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Fourteen Months to the Epiphany


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Why were conventional

techniques failing,yet we were still succeeding?


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AdWords wasnt the problem

Nobody wakes up in the morning wishingthey didnt have to carry a USB drive, emailthemselves, etc.

Similar things existed, but people werentactively looking for what we were making

Display ads, landing pages ineffective

Search is a way to harvestdemand,

not createit


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Typical Dropbox User

Hears about Dropbox from a friend,blog, etc. and tries it

I didnt realize I needed this

It actually works

Unexpectedly happytell friends


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Steve Blank & Market Type

Existing Market

Resegmented

Market

New Market

Marketing tactics for one markettype fail horribly in others


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New strategy: encourage WOM, viral

Give users better tools to spread the love

Referral program w/ 2-sided incentivepermanently increased signups by 60% (!!)

Inspired by PayPal $5 signup bonus Help from Sean Ellis: Surveys, split tests,

landing page/ signup flowoptimizations, encourage

sharing big wins Big investment in analytics


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Trailing 30 days (Apr 2010) : users sent2.8 million direct referral invites

Trailing 30 days (Apr 2010) : users sent2.8 million direct referral invites


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Results

September 2008: 100,000 registered users

January 2010 (15 mos later): 4,000,000

Mostly from word-of-mouth and viral:

35% of daily signups from referral program 20% from shared folders, other viral features

Sustained 15-20%+ month-over-monthgrowth since launch


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Wrapping up

Learn early, learn often

Best practices arent always best

Know your market type & how

your product fits into your userslife


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Learning on a $0 budget: Talk to people!


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What if after we launch MVP,the customer do not want it?

PIVOT!!!


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PIVOT!!!

Change Direction but stay

grounded in what weve learned.

PIVOT


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STARTUPS PIVOT

ALL THE TIME.


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SPEED WINS.If we can reduce the time betweenpivots..

We can increase our odds ofsuccess..Before we run out of money.


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LEAN STARTUP:

Fail Faster.

Learn Faster.Succeed Faster.


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The lean method has three key principles:

1. Sketch Out Your Hypotheses

2. Listen to Customers

3. Quick, Responsive Development


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INNOVATION ACCOUNTING.The METRICS* we use.*taken from DaveMcclure AARRR model.

Mediatrac. 2013.


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LEAN STARTUP in TELKOM.

Innovation Guidelines.

S


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Innovation Stage 1.Customer & Problem Validation

Do we have problemWORTH to SOLVE?

Mediatrac. 2013.


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Innovation Stage 2.Product Validation

Do our productADDICTIVE enough?

KPI: Percentage of active users.Mediatrac. 2013.


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Innovation Stage 3.Business Validation

Do people pay for ourproducts?

KPI: Percentage of early adopters who payMediatrac. 2013.


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Innovation Stage 4.Market Validation

Do MANY people use & payfor our products?

KPI: Weekly growth (revenue + users).Mediatrac. 2013.


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Innovation Guidelines.

TELKOM INNOVATION GUIDELINES.


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Customer/Problem

Validation.Product

Validation.

Business Model

Validation.

It works,

someone LOVES it.

We have problem

worth to solve!

They pay for it.

SuccessMetrics.

Timebox. 3 months.

InnovationStages.

40%Act ive Users .

5 1000users.

10 20%Paid Users

5 - 1000users.

Growth of revenue (6% / week)

Market

Validation.

Many people LOVE it,

And they pay.

Growth of u sers (6% / week)

2 3 4 5

3 months. 6 12 months.3 weeks.

Validated Customer.

Validated Problem.

Key Roles.

Ideas

Submission

According to Telkom

Product Ecosystem

1

1-2 weeks

Ideas su bmitted in

LEAN Canvas Format

InnovatorsTeam.

IncubationTeam.

Run Test & One on One

Interview to Validate

Customer & Problem.



Product Features/Solution.

Build Prototype, Measure,

Learn, Pivot to achieve

40% Active Users out of

100 1000 users.



Business Model.

Test Biz Model, Measure,

Learn, Pivot to achieve 10-

20% Paid Users out of 100

1000 users.

Test Marketing

Channel+Cost& Expand

Customers

Improve Product to maintain

or grow % Active Users.

Build Customer Service

Scale Back End Technology

Find profitable segments

3 4 people that consist of Designer, Engineer, Business people. 10 15 peopleSize

Provide tools, mentorship, connections, funds and support to Innovators Team so they can be successful in every stages.

Evaluate and Select which Innovators Team that pass to next stages.

Submit Ideas in LEANCanvas Form +

Information about

Team Members.


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Clarity on Roles.


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STARTUP LIFE STAGES.

BEFOREPRODUCT

VALIDATION

AFTERPRODUCT

VALIDATIONFocus on Building

Right Product+

Searching Business

Model

Focus on Growth /

Scale / Optimization.

>

TELKOM INNOVATION GUIDELINES.

10


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Customer/Problem

Validation.Product

Validation.

Business Model

Validation.

It works,

someone LOVES it.

We have problem

worth to solve!

They pay for it.

SuccessMetrics.

Timebox. 3 months.

InnovationStages.

40%Act ive Users .

5 1000users.

10 20%Paid Users

5 - 1000users.

Growth of revenue (6% / week)

Market

Validation.

Many people LOVE it,

And they pay.

Growth of u sers (6% / week)

1 2 3 4

3 months. 6 12 months.3 weeks.

Validated Customer.

Validated Problem.

Key Roles.

Ideas

Submission

According to Telkom

Product Ecosystem

0

1-2 weeks

Ideas su bmitted in

LEAN Canvas Format

InnovatorsTeam.

IncubationTeam.

Run Test & One on OneInterview to Validate

Customer & Problem.


Product Features/Solution.

Build Prototype, Measure,

Learn, Pivot to achieve

40% Active Users out of

100 1000 users.


Business Model.

Test Biz Model, Measure,

Learn, Pivot to achieve 10-

20% Paid Users out of 100

1000 users.

Test MarketingChannel+Cost& Expand

Customers

Improve Product to maintain

or grow % Active Users.

Build Customer Service

Scale Back End Technology

Find profitable segments

3 4 people that consist of Designer, Engineer, Business people. 10 15 peopleSize

Provide tools, mentorship, connections, funds and support to Innovators Team so they can be successful in every stages.

Evaluate and Select which Innovators Team that pass to next stages.

Submit Ideas in LEANCanvas Form +

Information about

Team Members.

C t /P blP d t B i M d l R

I i M k t

APPROVED INNOVATION GUIDELINES.


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Customer/ProblemValidation.

ProductValidation.

Business ModelValidation.

RevenueValidation.

It works,someone uses it.

We have problemworth to solve!

They pay for it. We can makea LOT of money.

SuccessMetrics.

Time.

Div/Dept

7 months. 6 12 months. 12 -24 months.

RDC (IDEC) DSC Telkom Subs /EWS

InnovationStages.

Melanjutkan pengembanganproduk yang sudah mencapaiProduct & Business ModelValidation untuk mencapaiMarket Validation.

40% Active Users.Users. 100 1000 users.

10 20% Paid Users100 1000 users.

Growth of revenue (weekly)

MarketValidation.

Many people use it,And they pay.

Growth of users (weekly)

Mengembangkan inovasi produk baru sesuai denganEcosystem IME Telkom dimulai dari tahap CustomerValidation sampai dengan Business Model Validation.

Peran.

Inkubasi. Memberikan support menyeluruh kepada startup /internal team Telkom untuk mencapai Product danBusiness Model Validation.

Memberikan supportmenyeluruh kepada startup /internal team Telkom untukmencapai Growth per week.

MOST UPDATED (IDEC +DSC) PROCESS

GROWTH. Expand Customer.Improve Product. GrowRevenue.

Building RIGHT Product + Exploring Business ModelFocus.

C t /P blP d t B i M d l R

I ti Market

APPROVED INNOVATION GUIDELINES.


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Customer/ProblemValidation.

ProductValidation.

Business ModelValidation.

RevenueValidation.

It works,someone uses it.

We have problemworth to solve!

They pay for it. We can makea LOT of money.

SuccessMetrics.

Time.

Div/Dept

7 months. 6 12 months. 12 -24 months.

RDC (IDEC) DSC Telkom Subs /EWS

InnovationStages.

Melanjutkan pengembanganproduk yang sudah mencapaiProduct & Business ModelValidation untuk mencapaiMarket Validation.

40% Active Users.Users. 100 1000 users.

10 20% Paid Users100 1000 users.

Growth of revenue (weekly)

MarketValidation.

Many people use it,And they pay.

Growth of users (weekly)

Mengembangkan inovasi produk baru sesuai denganEcosystem IME Telkom dimulai dari tahap CustomerValidation sampai dengan Business Model Validation.

Peran.

Inkubasi. Memberikan support menyeluruh kepada startup /

internal team Telkom untuk mencapai Product danBusiness Model Validation.

Memberikan support

menyeluruh kepada startup /internal team Telkom untukmencapai Growth per week.

MOST UPDATED (IDEC +DSC) PROCESS

GROWTH. Expand Customer.Improve Product. GrowRevenue.

Building RIGHT Product + Exploring Business ModelFocus.

Funds. Up tp USD 25k Up tp 500 K


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Capability Development.


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WHAT TOOK YOU

6 MONTHS

TOOK ME

3 DAYS


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Investing Strategy.

The Lean VC:


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The Lean VC:

Method:

Lots of Lit tle Bets, Incremental Investment

Start with many small experiments, filter out failures, and expandinvestment in successes (Rinse & Repeat).

Incubator: $0-24K (Build & Validate Product)

Accelerator: $50K-$500K (Test & Grow MarketingChannels)

Venture: $500K-$10M (Maximize Growth & Revenue)

Documents

Sosialisasi - Innovation Guidelines Presentation 26042013