lean venture series - stage 1 lesson 2

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Stage 1, Lesson 2: Creating an Idea (Problem + Opportunity Identification)

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by the end of the lesson you should be able to:

01 define and differentiate between solving a problem and fulfilling a need

02 define problems and unsatisfied, new, or hidden customer needs.

03 apply steps to frame problems and challenges as opportunities

04 evaluate which problems are good opportunities for new venture creation

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workshop agenda

01 review 02 distinguish between solving a problem and fulfilling a

need03 identify problems and needs04 create problem statements05 evaluate problem statements06 summary and next steps

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01review

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consider and reflect on the following:

• if you already have an idea, what problem does it solve?

• if you don’t have an idea, what types of problems are you interested in solving?

• what is the difference between solving a problem and fulfilling a need?

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02distinguish between solving a problem and fulfilling a need

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Steve Blank explores the difference between solving problems and fulfilling needs

http://hwcdn.libsyn.com/p/8/d/1/8d172cc939327eeb/steveblank_clearshore_120419.mp3?c_id=4468793&expiration=1438725317&hwt=2125b70aae181c9e5e4a70e28ccc6f8f)

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Value Proposition

The product or service offered by your business either solves a problem or fulfills a human social need.

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brainstorm activity

Step 2- Identify Problems & Needs

take 2 minutes to brainstorm a list of as many companies as you can

write each on a separate Post-it®

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brainstorm activity

topic questions:

01 which companies solve a problem?

02 which companies fulfill a need?

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3 categories of Needs • Unsatisfied (Uber)• New (Charging stations)• Hidden (Internet communication)

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03identify problems and needsStep 2

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nine strategies for identifying problems and needs

01 start with stuff that bothers you.02 dive into a new field.03 find a way to do it cheaper.04 seek out the strange.05 take time for yourself.06 think visually.07 pose “what if?” questions.08 mouth closed, eyes open.09 be in the know.10 ______________________________ (add your idea here).

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inspiration for your business idea

20 strange inventions: https://www.youtube.com/watch?v=b8K_J9kPmp4

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04create problem statementsStep 3

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problem statement activity

example problem statements:

01 the United States needs better ways of recruiting and retaining women in STEM fields because women

represent just 20% of STEM professionals, which hurts the United States’ innovative capacity and global competitiveness.

02 PetSmart needs an efficient way of managing pet hair grooming waste because this expense costs the company hundreds of thousands of dollars annually.

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problem statement activity

create your own problem statements using the following sentence frame:

_________ need(s) a way to _________ because ________.

Format: Who need(s) a way to what because why.

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05evaluate problem statements

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evaluating potential for venture creation

• the problem• the people• existing solutions

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venture potential

Venture Potential Lower Potential Higher PotentialThe Problem Level of importance of

solving problem is low Problem is not widespread

Level of importance of solving problem is high

Problem is widespreadThe People Few people have this

problem Little evidence that people

need or want a solution to the problem

Many people have this problem

Substantial evidence that people need or want a solution to the problem

Existing Solutions Many solutions to the problem already exist

Few solutions to the problem already exist in the market

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06summary and next steps

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today’s lesson objective summary

01 define and differentiate between solving a problem and fulfilling a need

02 define problems and unsatisfied, new, or hidden customer needs.

03 apply steps to frame problems and challenges as opportunities

04 evaluate which problems are good opportunities for new venture creation

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consider and reflect on the following:

• what is the difference between solving a problem and fulfilling a need?

• what are unsatisfied, new, and hidden needs?• how do you know which problems are good opportunities

for new venture creation?

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