Business Agility on the Back of a Napkin …...Business Agility on the Back of a Napkin...

BOOTSTRAPYOUR BUSINESS MODEL

Business Agility on the Back of a Napkin

1@berniemaloney

https://creativecommons.org/licenses/by-nc-sa/4.0/


2

Let’s start here…

SO, WHAT IS ABUSINESS MODEL?

@berniemaloney

SO, WHAT IS ABUSINESS MODEL?

Better yet…

3@berniemaloney

EXPLAIN YOUR BUSINESS(MODEL) TO A NEIGHBOR

Exercise

2 min each in pairs

4@berniemaloney

HOW MANY COULD ACCURATELYDESCRIBE THEIR NEIGHBOR’S BUSINESS?

5@berniemaloney

OR, WAS YOUR EXPERIENCE LIKE THIS?

6@berniemaloney

NO BUSINESS PLAN SURVIVES FIRST CONTACT WITH A CUSTOMER

Steve Blank

7@berniemaloney

PLANS ARE WORTHLESS,BUT PLANNING IS EVERYTHING

Dwight D. Eisenhower

8@berniemaloney

HOW COULD WEDRINK OUR OWN CHAMPAGNE?

Build

Measure

Learn

9@berniemaloney

ANY PROBLEM CAN BE MADE CLEARER WITH A PICTURE

Dan Roam

10@berniemaloney

Dan also wrote an earlier, worthwhile book: The Back of the Napkin

11@berniemaloney

HOW CAN A BUSINESS BE PICTURED?

http://youtu.be/QoAOzMTLP5s

12@berniemaloney

BUSINESS MODEL CANVAS

13

Partners Offer Key Customers

What you ‘get’What it ‘costs’

Relationship

ChannelResources

Activities

Source:http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf

@berniemaloney

WHY IS A MODEL SIGNIFICANT?

14@berniemaloney

WHY IS A MODEL SIGNIFICANT?DESIGN THINKING

15@berniemaloney

DESIGN THINKING

• Freezing an idea early risks falling in love with it

• Refining an idea quicklyrisks become attached (sunk cost)

• Objective:Defer judgment & emphasize crude prototypes to help avoid these pitfalls

• Example:IDEO - an illustration of Design AND Agilehttp://youtu.be/M66ZU2PCIcM

16@berniemaloney

WHY IS A MODEL SIGNIFICANT?

17@berniemaloney

Build

Measure

Learn

18@berniemaloney

Lean Startup / Eric Ries: Build-Measure-Learn

A MODEL MIGHT LOOK GREAT ON PAPER…

19@berniemaloney

… REMEMBER IT’S A SET OF HYPOTHESES

guess

20@berniemaloney

Build

Measure

Learn

21@berniemaloney

COST PER TEST / LESSONS = ?

22

http://www.automobilesreview.com/uploads/2012/09/Mercedes-Benz-SLS-AMG-Coupe-Electric-Drive-651.jpg

@berniemaloney

COST PER TEST / LESSONS = ?

23

http://image.internetautoguide.com/f/auto-news/2010-mercedes-amg-sls-crash-test-videos/31178790/mercedes-sls-amg-crash-test-video-germany-tuv.jpg

@berniemaloney

HOW ABOUT AN EXAMPLE?

24@berniemaloney

HOW ABOUT AN EXAMPLE?

25

Better yet…

@berniemaloney

BUS 15 @ STANFORD

26

Experiencein ProductManagement& Agile

Silicon Valley

Prepare outline; develop materials; coordinate efforts; time to teach…

Stanford


What we ‘get’What it ‘costs’Feedback; fresh perspective; resume enhancer; honorarium; contacts…

GuestSpeakers

Curious aboutProd Mgt &/orAgile

Very Early Entrepreneurs

Live Class

Relationship

Channel Experienced &want increased results

Live Class

direct

Personal(vs automated)

Resources

Activities

BrandRoomsEquipment

Marketing

Experience

@berniemaloney

BUS 15 @ STANFORD

27


Silicon Valley


Stanford



GuestSpeakers



Live Class

Relationship

Channel Experienced &want > resultsLive Class

direct


Resources

Activities

BrandRoomsEquipment

Marketing

How could inspect/adapt be applied?

Experience

@berniemaloney

HOW ABOUT…?

28


East Bay Area


Berkeley



GuestSpeakers



Live Class

Relationship

Channel Experienced &want > resultsLive Class

direct


Resources

Activities

BrandRoomsEquipment

Marketing

Experience

Experienceat Stanford

@berniemaloney

OTHER VALUES OF THE BM CANVAS

• Ecosystems Win

– Microsoft Office

– iTunes

– Search + Ads

• Canvas Maps an EcosystemFits a single visual field = shifts brain processes

• Looks at Market & Opportunityover chasing a competitor’s ‘tail lights’

29@berniemaloney

Ready for a Group Exercise?

30


What we ‘get’What it ‘costs’

Relationship

ChannelResources

Activities

@berniemaloney

EXERCISE: BUSINESS MODEL CREATION

• Form Teams

• Product: Biodegradable Bag(ok for fertilizer)

• 5 minutes:Create (at least 1) business model

31

http://www.naparecycling.com/uploads/plastic%20bag.png

@berniemaloney


32



Relationship

ChannelResources

Activities


@berniemaloney

INSIGHTS: CREATING A BUSINESS MODEL

@berniemaloney 33

http://www.garabatosydibujos.com/wp-content/uploads/2015/01/conocer.jpg

This is a crude prototype

34



Relationship

ChannelResources

Activities

@berniemaloney


• Form Teams



35

How could you “unit test” the product?

@berniemaloney

THERE ARE NO FACTS IN THE BUILDING…SO GET OUT AND TALK TO CUSTOMERS

Steve Blank

36@berniemaloney

CUSTOMER DEVELOPMENT

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

pivot

37

Source: Steve BlankThe Four Steps to the Epiphany

@berniemaloney

TWO PHASES

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

pivot

Search Execution

38@berniemaloney

ENLIGHTENED TRIAL & ERROR SUCCEEDS OVER THE PLANNING OF LONE GENIUS

Peter Skillman

39@berniemaloney

APPLY THE SCIENTIFIC METHOD: RUN EXPERIMENTS

test

40@berniemaloney

WITH VALIDATION, ITERATE (PIVOT) MODEL AND RUN FURTHER EXPERIMENTS

valid

41@berniemaloney

PIVOTING:LEARNING CHEAPLY FROM FAILURE

42@berniemaloney

Build

Measure

Learn

43@berniemaloney

THE WAY TO SUCCEED IS TO DOUBLE YOUR FAILURE RATE

Thomas Watson

Founder of IBM

44@berniemaloney

HP MEDIASMART (RETAIL) TVS

45

AmericanBrand

CircuitCity

Cost-plus Mat’l; Design; Supply Chain; Placements

Asian TV BrandYou know


RevenuesCostsJust enough to break even at intro,Not enough to sustain price drops

CinemaNow

Best Buy

Relationship

Channel

Direct

Direct B2C

Indirect B2B2C

Resources

Activities

GlassTV KnowHow

MicrosoftInternetContent

Asian TV BrandNew to USA

Netflix

RetailElectronics

Leading EdgeInternet TV

KnownBrand

IPTV VisionaryAdopters

Manufacturing

Set Devel’mnt

Licensing

Volume Retail

futureproofing

@berniemaloney

HP COMMERCIAL TVS

46

AmericanBrand

HP Sales

Cost-plus Mat’l; Design; Supply Chain;



RevenuesCostsSustainable Margin

CDW

Relationship

Channel

Direct B2B

Indirect B2B2B

Resources

Activities

GlassTV KnowHow


CommercialSuppiers

KnownBrand

Manufacturing

Set Devel’mnt CompetivePrice

Direct HPAccounts

@berniemaloney

VIZIO TVS (2006)

47

AmericanBrand

Costco

Competitive Mat’l; Design; Supply Chain;



RevenuesCostsSustainable MarginSustainable Volume

Relationship

Channel

Direct

Direct B2C

Indirect B2B2C

Resources

Activities

GlassTV KnowHow


WarehouseClubs

ValuePricingManufacturing

Set Devel’mnt

ValueBuyers

@berniemaloney

LAYERING IN MARKET RESEARCH

48


RevenuesCosts

Relationship

ChannelResources

Activities

RetailElectronics

Leading EdgeInternet TV

IPTV VisionaryAdopters

ValueBuyersCommercial

Suppiers

ValuePricing

1Ks

100s@1Ks

10s@1Ks

1M+

@berniemaloney

PIVOTS ARE BUSINESS MODEL CHANGES WITHOUT CRISIS

Steve Blank

49@berniemaloney

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

pivot

50

Test & Adapt the model until you can prove it works

@berniemaloney

HOW TO PROVE IT WORKS?

• MVP

– Minimum Viable Product

– Sale of a Product (it’s viable!)

• PMF

– Product Market Fit

– Is it the right customer segment?

– Is the segment sustainable?

– Is the product / model sustainable?

51@berniemaloney

Build

MeasureLearn

Release

Measure

Earn $

Noted by Jeff Patton (Aug ‘12 DFWScrum)52@berniemaloney

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

pivot

Search Execution

53

MVP PMF

@berniemaloney


• Form Teams



54

Want a model comparison?

@berniemaloney

BASIC SANITATION

55

Image Source: http://www.whale.to/a/bangladesh.html

@berniemaloney

ACCESS TO SANTIATION

• 4 out of 10 people lack even simple latrines(2.6 billion people)

• A solution?

56@berniemaloneyhttp://greenupgrader.com/files/2009/04/peepoo6.jpg

PEEPOO BAG

• Single use toilet bag

• Self sanitizing

• Low production cost

• Biodegradable – turns into fertilizer

• (initially) targeted at poor people

• People already pay for sanitation

57@berniemaloney

WHO / WHERE ELSE COULD USE THIS?

58



Relationship

ChannelResources

Activities

@berniemaloney

MULTIPLE MODELS FOR 1 PRODUCT

59@berniemaloney

This is a crude prototype of a business

60



Relationship

ChannelResources

Activities

@berniemaloney

MULTIPLE MODELS FOR 1 PRODUCT

61@berniemaloney

Want another Group Exercise?


• Form Teams

• Product: Coffee

• 7 minutes:Create a business modelAND 3 “systems” Testsof PMF

62

http://www.thecoffeebeanshop.com/images/CoffeeBeanCloseup6beansR.jpg

@berniemaloney


63



Relationship

ChannelResources

Activities


@berniemaloney

INSIGHTS: CREATE + TEST A BUSINESS MODEL

@berniemaloney 64

http://www.garabatosydibujos.com/wp-content/uploads/2015/01/conocer.jpg


• Form Teams

• Product: Coffee


65

http://www.thecoffeebeanshop.com/images/CoffeeBeanCloseup6beansR.jpg

@berniemaloney

Want a model comparison?

66

http://upload.wikimedia.org/wikipedia/commons/4/4f/Pike_Place_Market_-_Starbucks_circa_1977A.jpg

@berniemaloney

67

http://www.alfredhoesliag.ch/typo3temp/pics/20bc77213a.jpg

@berniemaloney

ALTERNATIVE: LEAN CANVAS

68

http://practicetrumpstheory.com/the-10x-product-launch/

69

http://practicetrumpstheory.com/the-10x-product-launch/

BUSINESS VALUE CANVAS

70



Relationship

ChannelResources

Activities

@berniemaloney

gains

pains

customerjobs

gaincreators

painrelievers

products & services

EXTENDING THE BUSINESS MODEL CANVAS

71@berniemaloney

BUSINESS TO CONSUMERB2C

72@berniemaloney

BUSINESS TO BUSINESS TO CONSUMERB2B2C

73@berniemaloney

OR AN ENTIRE VALUE CHAIN

74@berniemaloney

OR MULTIPLE MODELS FOR 1 PRODUCT

75@berniemaloney

ARE PRODUCTS THIS EASY TO ITERATE?

76@berniemaloney

WHICH ONE(S) BEST FIT MARKET?

77@berniemaloney

CustomerDiscovery

CustomerValidation

CustomerCreation

CompanyBuilding

pivot

78

Each Experiment amounts toan (Agile) Iteration of

the Businessthe Ecosystem

@berniemaloney

IF YOU DON’T WORK UNDER TIME CONSTRAINTS, YOU COULD NEVER GET ANYTHING DONE. IT’S A MESSY PROCESS, IT COULD GO ON FOREVER.

Dave Kelley

79@berniemaloney

FAIL OFTEN,IN ORDER TO SUCCEED SOONER

IDEO

80@berniemaloney

FINUt Prosim. Namaste.

@berniemaloney 81



@berniemaloney 82

Bernie Maloney, CSPPE, CSM, CSPO

bit.ly/speedmygenius

Agile CoachAccelerating Genius

Turning Strategies into ResultsFrom Startup to Beyond $100M

Business Agility on the Back of a Napkin …...Business Agility on the Back of a Napkin...

Documents

Transcript of Business Agility on the Back of a Napkin …...Business Agility on the Back of a Napkin...