1. Business 101.1
A class in business. And entrepreneurship.
Fall 2016
NYU ITP
October 3, 2016
Josh Knowles
Jen van der Meer
Extra love from Tom Igoe
And the Leslie E-Lab
2. Syllabus Map
START +
Form
Teams
Business
Models
Customer
Development
How to
Interview
Value
+ The Purpose
of Business
Values
Motivation
Team
Customer
Relationships
+ Channels
Analytics
Key Resources
Activities
Partners
Biggest Vision
Analyze Test
The Money
Plan MVP
Turning
Insights Into
Features
More MVP
How small,
How big?
Launch MVP
Lessons
Learned
Go/No Go?
Sketch
Paper
Prototype
Oz Test
Smallest MVP
Tech
Architecture
3. The center of a business model: value
proposition
Versions of the truth:
Value Prop in Practice
Crossing the Chasm
The Value prop Canvas (osterwalder)
Value
+ The Purpose
of Business
Smallest MVP
4. TEAMS
Fragrances
Yu Shi
Joy (Eun Jee Kim)
Igor Carrasco
Fashion Socent
Soy (Soyeon Chung)
Peter Winne
Asad Lilani
Lin Yang
Prisons
Social Community for
Designers
Dhruv
Daniel Silber Baker
Molly O’Shea
Isobel Donjon
Predictive Social
Listening
Tattoo Artist Matching
Fernanda
Eric Ramirez
Javiera Valle Toro
Fashion 3 D
Angie Aguilar
Olivia
Ergonomic Design
Ashley Williams
Yan
Max Theony
Malcolm Pittman
6. CREATED BY: CREATED FOR: VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
HOW WILL YOUR BUSINESS WORK?
Whom do
you help?
What pains
do you
solve?
What do
you
uniquely
offer?
Distinct
segmentsWhere do
we reach
them?
How do we
get keep
and grow?
How will
you
charge?
What will
it cost?
What do
you need
to have?
How do
you do it?
Who will
help you?
7.
8. CREATED BY: CREATED FOR:
VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
GET TO VALUE PROPOSITION FIT
9. CREATED BY: CREATED FOR:
VERSION:
Customer
Segments
Customer
Relationships
Value
Proposition
Key ActivitiesPartners
Key
Resources
Customer
Channels
RevenuesCosts
Source: Strategyzer Osterwalder, Pigneur
AND THE REST OF THE BUSINESS MODEL WILL FOLLOW
10.
11. Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com
14. VALUE PROPOSITION VS.
VALUE PROPOSITION
BRANDING VS. INNOVATION
THE VALUE PROP SCHOOLS
THE VALUE PROP CONFUSION
15. VALUE PROPOSITION VALUE PROPOSITION
PAIN POINTSBRAND PILLARS
JOBS TO BE DONEREASONS TO BELIEVE
PAIN RELIEVERS
DIFFERENTIATION
ORIGIN: CHRISTENSENORIGIN:
VALUE PROP CANVAS
STRATEGY, MAD AVE INNOVATION THEORY
UNIQUE SELLING PROPS
16. THE PROBLEM
FACTORY VIEW OF VALUE CREATION
R&D
This is where
design and brand
types got to play
This was typically
very engineering /
science heavy
NPD
17. “The social responsibility of
corporations is to increase
profits.”
Milton Friedman, 1970
SHAREHOLDER VIEW OF COMPANIES
20. THE SOLUTIONEEr’S SOLUTION
INNOVATORS VIEW OF VALUE CREATION
“Excuse me, but could you please tell
me what job you were needing to get
done for yourself when you came here
to hire that milkshake?”
22. Job-defined markets are generally much larger than
product category–defined markets.
Marketers who are stuck in the mental trap that equates
market size with product categories don’t understand who
they are competing against from the customer’s point of
view.
Clayton Christensen, Innovator’s Solution
MILKSHAKE INSIGHTS
23. The .. mistake was to adopt a narrow view of the type of food people
have always eaten in the morning, as if all habits were deeply rooted
traditions instead of accumulated accidents.
Neither the shake itself nor the history of breakfast mattered as much
as customers needing food to do a nontraditional job – serve as
sustenance and amusement for their morning commute – for which
they hired the milkshake.
Clay Shirky, Cognitive Surplus
MORE MILKSHAKE MUSINGS
28. VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developing
company name defined offering
to help
Why we’re better:
to solve
target customer segment defined problem or pain
our differentiation
Why we’re believable:
our proof point, secret sauce
32. VALUE PROP MADLIBS
VALUE PROPOSITION
My organization is developing
company name defined offering
to help
Why we’re better:
to solve
target customer segment defined problem or pain
our differentiation
Why we’re believable:
our proof point, secret sauce
35. WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
At the start focus here
36. WHY DOES PAIN MATTER IN STARTUPS?
CROSSING THE CHASM
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
The most difficult step is making the
transition between visionaries (early
adopters) and pragmatists (early majority).
You do this by reducing the risks that the
pragmatists are unwilling to take on
37. WHY DOES PAIN MATTER IN STARTUPS?
QUIZ: WHERE SHOULD YOU FOCUS AND WHY?
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?
38. WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP
Innovators
2.5%
Early Adopters
13.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Geoffrey Moore: Crossing the Chasm.
39. WHY DOES PAIN MATTER IN STARTUPS?
FIND THE GROWTH SKI JUMP + GUARD RAILS
Agile Development
Customer
Discovery
Have we identified a customer
segment with a clearly defined,
known pain point?
Does out offer and
experience deliver a
solution to our
customer’s problem?
Solution
Problem
40.
41. Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
Value Proposition Customer Segment
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer
The Value Proposition Canvas
strategyzer.com