Custom development approach for Start Up

1. Customer Development Approach
Manik Choudhary, PMI-ACP, CSPO, PSM-1
manikchoudhary@yahoo.com

2. Disclaimer
 These are my personal opinions on the subject and in no way represent
that of my employer.

3. 64 % of
Software is
unused !

4. Start-Up Facts
 9/10 Products Fail
 75 % of all Startups fail
 “In a Startup , the chance on anything good is always
under 50 %” - Mike Cassidy (Ruba)

5. Customer Requirements
 It's not the customer's job to know
what they want.
 If I had asked my customers
what they wanted they would
have said a faster horse.

6. Product Development to Customer Development
2003
 Associate Professor at Stanford University
 Has participated in 8 high tech Startup as
either a cofounder or an early employee
HBR Review – Why the Lean Start-up changes Everything – May 2013

7. Business Model Generation
2010
Business Model Canvas - Alex Osterwalder
 Standard Framework for
Business Model Canvas in
BGM
http://www.businessmodelgeneration.com/canvas

8. Business Model Canvas Explained (Video)
Business Model Canvas - Alex Osterwalder
http://www.businessmodelgeneration.com/canvas

9. Lean Startup
2011
Customer Development
Agile Software
Lean (Toyota Production System)
Five principles of Lean Startup

10. StartUp
StartUp
=
Experiment
Searching for a Profitable, Scalable and Reliable Business Model
 A startup is a human institution designed to deliver a new product or service under
conditions of extreme uncertainty“.
by Eric Ries from the book ”The Lean Startup”
 Nothing to do with size of company, sector of the economy, or industry

11. Lean Startup
Lean Startup principle
Entrepreneurs are everywhere
Entrepreneurship is management
Validate Learning
Build-Measure-Lean
Innovation Accounting

12. Customer-Problem-Solution(C-P-S) Hypothesis
 Do consumers recognize that they have the problem you are
trying to solve?
 If there was a solution, would they buy it?
 Would they buy it from you?
 Can we build a solution for that problem?”
* C– P– S Hypothesis : The Entrepreneurs Guide to Customer Development by Brant Cooper & Patrick Vlaskovits
Picture Source - http://practicetrumpstheory.com/2010/08/businessmodelcanvas/

13. Running Lean
2012
 Document your Plan A
 Identify the riskiest part for your plan
 Systematically test your plan
Lean Canvas – Ash Maurya
http://leancanvas.com/

14. The Startup Owner's Manual
2012
“There Are No Facts Inside Your Building, So Get Outside.” – Steve Blank
http://en.wikipedia.org/wiki/Steve_Blank

15. The Customer Development
http://steveblank.com/2012/03/29/nail-the-customer-development-manifesto/

16. References
 HBR Review – Why the Lean Start-up changes Everything – May 2013
 http://practicetrumpstheory.com/2012/02/why-lean-canvas/
 http://practicetrumpstheory.com/2010/08/businessmodelcanvas/
 http://www.slideshare.net/startuplessonslearned/aardvark-case-study-
from-sllconf-by-max-ventilla-and-damon-horowitz
 http://www.bizjournals.com/sanjose/blog/2012/09/most-startups-fail-
says-harvard.html?page=all
 http://www.slideshare.net/ashmaurya/10-steps-to-productmarket-fit
 http://theleanstartup.com/
 http://www.startuplessonslearned.com/
 http://www.businessmodelgeneration.com/canvas
 http://practicetrumpstheory.com/2010/08/businessmodelcanvas
 http://leancanvas.com/LeanCanvas.pdf
 http://www.amazon.com/The-Startup-Owners-Manual-Step-By-
Step/dp/0984999302
 http://en.wikipedia.org/wiki/Steve_Blank
 http://steveblank.com/category/customer-development-manifesto/

17. Thank you !!
 Manik Choudhary
 manikchoudhary@yahoo.com
 Linked In - http://www.linkedin.com/pub/manik-choudhary-pmi-acp-cspo-
psm/1/54/529