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Fast prototypes and customer development for start ups

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Fast prototypes and customer development for start ups

  1. 1. Prototypes and Customer- Development temiz@kth.se
  2. 2. Back ground • B.S Electronics and Communication Engineering • Master in ICT entrepreneurship , • SSES Alumni • PhD Candidate at Indek KTH • Previously Java Developer • Now business developer for Virtway.com and icyou.se
  3. 3. This presentation • Not about a specific business idea • About business processes • About prototypes • It is pretty long • Feel free to fall asleep, interrupt or leave • I hope you know all this already. • If not, I really think it can give you a lot
  4. 4. Startup process
  5. 5. Development process
  6. 6. Waterfall is drying • Agile Agile Agile Agile Agile • Scrum • XP extreme programming • Kanban • Continous Integration/Deployment • Developers hate Waterfall like mad!
  7. 7. What is Agile? • It works when requirements change • And requirements change Why Agile?
  8. 8. Add agile to process What is wrong with this picture?
  9. 9. Everything except agile • Old style startup model must DIE! • I will dance on it’s grave! • Because it sucks! • Because where is the customer? • Because things change! • Market risk! Need to adapt!
  10. 10. Lets get serious • A lot of startups fails • It affects your relationships • It absorbs your life • It can make old friends be enemies • It is your life. Don’t let business coaches or experts run your life. • It is not fun to fail. It is also your coworkers and familys problem. Lets avoid that, then running a startup can be fun and meaningful.
  11. 11. Why should I listen to you? • Do not listen me! IT IS YOUR RESPONSIBILITY TO QUESTION ALL ASSUMPTIONS. MINE, YOURS, EXPERTS.
  12. 12. Are you a God? • I can predict what my customers want • I can predict a 5-year financial plan • I can predict what customers will like • I can manage this process • I know the risks, the opportunities • I will never give up
  13. 13. Are you a mortal • I have a hunch about what customers want • I think it can make money • I will measure and discuss with customers • Lets use the scientific method. Measure! • Test assumptions, test on users, be scientific. • If I find problems, I can change things. Why not use the scientific process to develop business ideas? A business idea is a set of testable hypotheses.
  14. 14. Some are actually Gods? • Twitter • Google • mystery company
  15. 15. Twttr has married Short Code Messaging, SMS with a way to create social groups. By sending a text message to a short code (for TWTTR) you can send your location information, your mood information or whatever and share it with people who are on your social-mob! Best part – no installation necessary! NOTE: They have done a PIVOT. Changed idea, but not completely. Rhetoric question: What use was the prediction about the SMS market they probably had in the business
  16. 16. "Wave has not seen the user adoption we would have liked," Senior Vice President Urs Holzle said in the blog post. "We don't plan to continue developing Wave as a standalone product, but we will maintain the site, at least through the end of the year, and extend the technology for use in other Google projects. NOTE: They are doing a PIVOT, reusing the technology in a new way.
  17. 17. Mystery company When we think of design, we think of this company Rhetoric question: Was their core value firmly set in their original business plan?
  18. 18. Don’t burn your business plan • Just don’t make a new one • Thinking through the business is good • But I think you can think through your business in faster and better ways. • Do a powerpoint instead (Guy Kawasaki). • Business Model Canvas – another presentation • KEY POINT: CHANGE is the norm. • KEY POINT: You have a vague idea what CUSTOMERS will want.
  19. 19. Customer Development • One line summary: Test your assumptions • Get out of the building • Formulate hypotheses and test them • Do Minimum Viable Products (MVP:s) • Pivot. Change aspects of business as you go The Four Steps to the Epiphany: Successful Strategies for Products that Win Steven Gary Blank
  20. 20. • Disclaimer: I did not actually read the Four Steps to the Epiphany when I prepared presentation. • However, I have read the “cheat sheet” • And I have read blogs and so on... • I simply started with the “prototype” book. Then, I bought the “Full” book.
  21. 21. Lean Startup • Eric Ries. He has failed, he has succeeded. • Lean Startup = Customer Development + Agile http://www.startuplessonslearned.com/ Search for Eric Ries on YouTube! Great 1h talk!
  22. 22. Cust Dev + Prototypes • Consumer Development = business prototypes • Lean startup = Cust dev + Agile • Lean startup is great. But requires that you have IT-guys in team • Our? idea = Cust Dev + Prototypes • Might work better when you don’t have an IT- team or do not want to waste your resources! • Complements agile
  23. 23. Some kinds of prototypes • Mockups/line drawings. Show ideas. • Paper prototypes. Test interaction on users. • Landingpages. Great way to test business idea! • Working prototype. Testable IT that works as a specification.
  24. 24. Mockup • Line drawing to show how system looks • Computer aided, such as Balsamiq Mockups • Or use pen and paper • Get your ideas down!
  25. 25. Paper-prototypes • Users try system, talk out loud • Test interaction
  26. 26. Test: Landingpage • You find discover a new electric-engine that can be installed in old cars. By concentrating on a few Swedish bestsellers such as Volvo V70 and Saab9-5, you think you can make a business out of this. • Make a single webpage explaining the idea. • It has two buttons “Pre-order for V70”, and “Pre-order Saab9-5”. • Buy Ad-words for “electric car“ showing ads “Adapt Saab9-5 to electric power”
  27. 27. Landingpage • Measure how many visit the landing- page • Measure how many click the “Pre-order” buttons (and get their contact details) • Just explain to viewers politely you have not started yet but will get back to them. • Before committing to anything, you can verify if people are interested and if they are on the way to actually buy for the price you show. • Do A/B tests of messages, see what works.
  28. 28. Results: Landingpage • Sorry, thousands view the page but no one buys. • You have just saved a lot of trouble. • But, you discover a lot of visitors from a blog from old Rolls-Royce enthusiasts. • PIVOT: A lot of people wants to cruise with old classics and want to be eco-friendly and these cars really suck gas. And they can afford the conversion. Your market is now high-margin and European, maybe global.
  29. 29. Working prototypes • Looks / behaves like a real program • But the aim is to make it fast to explain • A prototype explains better than a specification • A prototype can be used to test on users
  30. 30. Prototype vs Agile • Agile = building gradually. Quality. • Prototype = max shortcuts • No database needed, no security/scalability • Free to use a completely other language/tools. • Optimize shortcuts, quality is secondary • The anti-thesis of what programmers usually do. Few take pride in doing shit.
  31. 31. Why prototypes? • Demo, try, get feedback, think through • Show to customers • Show to investors • A much better specification. Same cost? • Can be combined with Agile • Makes outsourcing possible • Make mistakes early
  32. 32. Mock Up: Twitter
  33. 33. Example- Stix.to
  34. 34. Prototype Example- Stix.to
  35. 35. Prototype Example- Stix.to
  36. 36. Prototype Example- Stix.to
  37. 37. Prototype Example- Stix.to
  38. 38. Now, may we ask some questions? • Was it too ugly? drawings, videos etc. • Too long? • Easy or difficult to follow? • Anything to remove/add? • Other comments?
  39. 39. This presentation is also a prototype • Try message/slides. Get feedback !!! • MVP (Minimum Viable Product) • The slides can be given to graphic designers • Even outsourced • Would you give a specification to designers?1. Picture of trad biz process 2. Picture of waterfall
  40. 40. Second slide. Waterfall.
  41. 41. • Thank to CEO of Stix.to - henrik.hjelte@stix.to • Try out? : http://stix.to/ • Tool for bloggers and people that like to share opinions in a layer over the internet. Do you know anyone that wants to try? • Twitter: @hankhero
  42. 42. Thank you! • Serdar Temiz • temiz@kth.se