2016 MBA Koç University

1. Bora Özkent
NEW VENTURE
DEVELOPMENT/DAY-6

2. WHAT HAVE YOU LEARNED
FROM THE READING
ASSIGNMENTS?
2
New Venture Development, Bora Özkent
2014

3. Revenue Models
Commerce and Retail
• Selling physical goods
• Selling digital products
• A service sold per unit
• A service with fixed price
• Sale of services for
future use
• Daily deals / flash sales
Advertising
• Advertisements
• Promoted content
• Sponsorships
New Venture Development, Bora Özkent
2014
3
Subscription and Usage
• Subscriptions
• Usage fees
• Rental
Licencing
• License of usage
• Certifications
Auctions
• Auctions
• Dynamic Pricing

4. Revenue Models
Data and Software
• Databases
• IoT Data
• SaaS
Transactions /
Intermediation
• Brokerage
• Transaction enablers
• Affiliate Programs
• Creating a platform /
marketplace
New Venture Development, Bora Özkent
2014
4
Fremium
• Free hardware for other
products
• Paid version without
advertisements
• Paid version without
restrictions
• Paid version with
additional features

9. Further Reading for Revenue Models
http://www.boardofinnovation.co
m/business-revenue-model-
examples/
http://businessmodelgallery.com/
New Venture Development, Bora Özkent
2014
9

13. Jibo Case Study
• Jibo tested demand in Indiegogo through crowdfunding. What
are the potential advantages and disadvantages of this
approach? Would you pursue the same path for your venture?
Why, why not?
• Should Jibo pursue a platform strategy at launch, or should the
company build the initial applications themselves and evolve
into a platform strategy in time?
• When it comes time to develop a platform strategy, should Jibo
take top-down approach (with strategic partners), a bottom-up
(developler driven) approach, or a combination of the two?
• If you were hired as head of strategy and in the room with
Breazeal, Chambers, and Smith, what execution plan would
you recommend to attract developer investment in a platform
that will not be shipping for over a year? 13

14. 14

15. Estimate the Market Size
Total Addressable Market: Total market demand for a
product or service. (e.g. All Smartphone users)
Served Available Market: Segment of the TAM targeted
by your products and services which is within your
geographical reach. (e..: Turkish speaking users)
Target Market: Portion of SAM that you can capture. (e.g.
Fenerbahçe fans)
15

16. Homework For Next Session
• Read Running Lean
– Chapter 10: Get Ready to Measure
– Chapter 11: The MVP interview
• Estimate market size for your project (TAM, SAM and TM) – Additional
Reading:
(https://www.thebusinessplanshop.com/blog/en/entry/tam_sam_som)
• Design and launch your first MVP’s, determine what you are going to
measure, what you want to learn.
• Start getting customer feedback with MVP’s through interviews or
measurements. Perform 15-20 solution/MVP interviews.
• Prepare Version 3 of Business model Canvas. Prepare and deliver a
presentation including:
– Lean Canvas versions 1-2-3 and changes among them.
– Your MVP and what you have learned from it.
– KPI’s and traction (if any).
– TAM, SAM, TM
16

17. What Dou You Learn From Wikispeed
• Prepare for Case Study as a Group (Due Saturday)
– Team Wikispeed: Developing hardware the software way (Questions are at
the following page, written report of 1 page, 12 font must be delivered in the
class)
– Please add a cover with all team member photos and names
• Case Study Questions:
– “Quick & Dirty” or “Proper Engineering”? When? Why?
– Why do you think people join Wikispeed? How did Joe manage to get
followers, and what strategies did he use to make this happen?
– What are the key organizational principles by which team Wikispeed is
organized and which have driven its speedy development?
– How does the Wikispeed approach to product development differ from the
more traditional waterfall process?
– Do you think large organizations should adapt their product development
processes to Wikispeed methods? Why, why not?
– What Dou You Learn From Wikispeed That You Can Implement;
• As an “to be” entrepreneur?
• As a “to be” professional in corporate world 17

18. 18
• According to research, %95 of all radical innovations
since WW2 have been done by startups rather than
big companies.
• Based on what we have learned about the Lean
Startup Methodology so far;
1. If you were a business consultant, what kind of
recommendations would you give to a big company CEO
for improving his/her organization’s’ radical innovation
performance. (Max 100 Words)
2. If you decide to pursue a professional career instead of
founding a startup, how will you use the lean startup
methodology and what benefits do expect from using it?
(Max 100 Words)