the beall business innovation workshop - session 1

produced by

TeamShervin Talieh - Drumbi, Version Zero Labs, OC Tech Startup

Format

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produced by

Melinda Kim - Aspirely, OC Tech Startup

Charlie Baecker - UCI, The Don Beall Center for Innovation & Entrepreneurship

4-part series, hands-on, no bullshit, discussion based

Connecting#innovateuci@calitalieh @melindapkim

Forward

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“As disruption occurs, it commoditizes a layer in the stack, so what used to be a high value-added activity that was very profitable and others couldn’t replicate, now becomes cheap and easy and anyone can do it. It used to be that news and information was one of those layers in the stack — no one could play that game like the New York Times… but now everyone has access to more information than they could possibly use.”

- Clay Christensen

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Workshop Thesis

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We are entering an economic cycle of growth and expansion. The ability to innovate is what will separate the winners from the losers, the “good idea” from the killer product.

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Which One Are You?

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Startups are not smaller versions of big companies. They innovate, or die.

Startups Enterprise

Two Categories - Which One Are You Focused On?

• Product• New Offering• Partnership• Rebranding

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• Process• Business Model• Incentives• Training

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Two “Faces” External Internal

“how” “what”

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Success is the silent killer of

innovation. Automation, “group think”, conventions and conformity are the instruments of

death. High revenues and margins kills

hunger, and attracts the hungry.

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75

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Idea Launch Success Scale

Revenue Velocity

What Kills Innovation?

Achilles Zone

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The most successful

companies keep the pace of innovation

constant, while commodotizing their own cash-

cows. This results in a shorter, smaller

window for external forces to impact the

business.

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75

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Idea Launch Success Scale Reinvent Relaunch

Revenue Velocity

Controlling the Disruption

Controlled Disruption

• My idea is priceless

• I don’t know where to begin

• I can’t show it anyone...it’s not ready

• I just need $$$$

• I just need a meeting with Sequoia

• I need a technical cofounder/developer/designer/business

person

Startup Founder’s Perspective

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Enterprise CXO’s Perspective

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• This would never work at our company

• You don’t understand our industry/customers/people

• We can’t stop our business to make these changes...it’s not

a good time

• That’s now how we do it here

This Stuff Doesn’t Matter (much)...in the Short-Term

✓ BUSINESS PLAN & DETAILS ✓ COMPETITION

✓ PRODUCT OR COMPANY NAME

✓ URL

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✓ COMPANY STRUCTURE

✓ $$$$$$

✓ PATENTS/IP

✓ TEAM & RESOURCES

✓ ADVANCED/PERFECT PLANNING

Validating a key assumption which could otherwise prove fatal, by pulling “risk forward”

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So...What Does Matter?

The Old Way - Waterfall, “Idea’s Are King”

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!I"have"an"idea…" I"have"a"

sustainable"solu1on"

RESEARCH

MARKETING

SALES

$$$$$

$$$$$

$$$

The New Way - Kill Fast, “Velocity is King”

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the$goal$ is$ to$get$ to$ this$point$as$quickly$and$efficiently$as$possible$

!I"have"an"idea…" I"have"a"

sustainable"solu1on"

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5"1"

Start"(“I"have"an"idea!”)

2" 3" 4"

What"type"of"idea"is"it?"

■  brand"spanking"new!"

■  a"beBer"mousetrap"

■  new"product/service"

■  internal"innovaHon"

What"are"the"risks?"

!  building"it"(technology,"complexity)"

!  selling"it"(business"model,"distribuHon)"

!  geKng"people"to"use"it"(users,"customers)"

Create"a"test/hack!"

!  focus"on"high"impact"risks"first/only"

!  create"1"or"more"tests"

!  run"the"test"

!  collect"data"

!  go"back"to"step"3"

Finish"I"have"a"sustainable…"

!  business,"or"

!  new"product/service,"or"

!  process"improvement"

The Process

Examples of Key Assumptions

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Startups Enterprise

‣ People will want it

‣ We can build it

‣ It’s sustainable

‣ Our customers will buy it

‣ It wont kill our brand

‣ We can adapt

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Idea Key Assumption/Risk

JetBlue Employee Retention Program

employee adoption

AirBnB trust

Uber ???

Netflix Streaming Service ???

Tests & Hacks

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➡ Restauranteurs will use food-trucks to test concepts

➡ Google conducts over 1,000 live tests on Google.com

➡ Off-brand testing is common in most industries

➡ 404 error pages are not always as a result of an error

➡ Most websites and apps are doing A/B testing, live

➡ Kickstarter is primarily used to validate demand (and not simply for funding)

Fast, cheap, creative methods for testing a hypothesis

Intuition & Data

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Intuition: Good Intuition: Bad

Data: Good 1. Confirmed intuition 2. Intuition false negative

Data: Bad 3. Intuition false positive 4. Confirmed intuition

From Quora, Joel Lewenstein

Drumbi New Product Hack

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Key Assumption/Risk Test

Companies Want Drumbi for Support Calls

Google Form, with 3 questions, sent to a few friends, posted to Hacker News,

Facebook, LinkedIn, Twitter

We Knew Exactly What To Build

Google Form, with 3 questions, sent to a few friends, posted to Hacker News,

Facebook, LinkedIn, Twitter

We Could Sell It

Google Form, with 3 questions, sent to a few friends, posted to Hacker News,

Facebook, LinkedIn, Twitter

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This took 3 minutes to build, and 3 clicks to share with my friends.

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56 Responses23 LeadsClear Product DirectionFirst Integration PartnerCost $0

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More data, using Google Surveys, to help sell our product.

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Idea Key Assumption/Risk

Test

JetBlue Employee Retention Program

employee adoption sign-up email, landing page

AirBnB trustCraigslist email hack, paid

traffic to sign-up page

Uber ??? ####

Netflix Streaming Service

??? ####

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Idea Assumptions/Risks

Key Assumption/

RiskTest

“glassware for men”

“new angel on home rental industry”

changing platform + improving SEO = more

online $$$

“white label photo-sharing for

professionals”

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Tool UsageGoogle Forms survey design and data collection

Google Survey, Survey Monkey create, distribute surveys to targets

Unbounce, Mixpanel, Qualaroo A/B testing, funnel, conversion

Wordpress rapid website building

Craigslist/eBay price, demand testing

Kickstarter demand and early adopter targeting

LinkedIn/Groups/InMail demand testing

Hootsuite, Buffer, Bitly demand testing, referral traffic testing

3D Printing prototyping

YouTube, Facebook, Twitter Virality, content testing

UsabilityHub product usage and experience testing

Step 1: identify the risk/assumption

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Step 2: create a hack/test

Step 3: collect data

➡ Get out of the building.

➡ Wrap data around your intuition.

➡ Fail fast. Fail cheap.

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Pro-Tips

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THANK YOU!