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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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MINIMUM VIABLE PRODUCT.
STORY.
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MINIMUM VIABLE PRODUCT.
VISUAL.
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MINIMUM VIABLE PRODUCT.
PROTOTYPE.
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MINIMUM VIABLE PRODUCT.
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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LEAN STARTUP in TELKOM.
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.
Run Test & One on One
Interview to Validate
Product Features/Solution.
Build Prototype, Measure,
Learn, Pivot to achieve
40% Active Users out of
100 1000 users.
Run Test & One on One
Interview to Validate
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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LEAN STARTUP in TELKOM.
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.
Run Test & One on OneInterview to Validate
Product Features/Solution.
Build Prototype, Measure,
Learn, Pivot to achieve
40% Active Users out of
100 1000 users.
Run Test & One on OneInterview to Validate
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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LEAN STARTUP in TELKOM.
Capability Development.
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WHAT TOOK YOU
6 MONTHS
TOOK ME
3 DAYS
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LEAN STARTUP in TELKOM.
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)