nyu itp lean launchpad class 4
TRANSCRIPT
Class 4 / 12
February 24, 2013
Jen van der Meer | jd1159 at nyu dot edu
Josh Knowles | chasing at spaceship dot com
LEAN LAUNCHPAD AT NYU ITP
Rockets Sketches borrowed from Harry Allen Design
6:00 – 7:00: Working through Revenue and Distribution Channels
7:00 – 7:15 Break
7:15- 8:30 Teams Present
TODAY:
.
WE ARE HERE
1/27Business ModelsCustomer DevelopmentUX Tools Intro
2/3Value PropositionUX Tools, Frameworks
2/10Customer SegmentsResearch Tools
2/17President’s Day
2/24Revenue StreamsDistributionProduct Definition
3/3Customer RelationshipsPartners,Product Development
3/10 Resources, Activities, Costs,Product Development
3/17Spring Break
3/24Customer DevelopmentProduct Development
3/31Customer DevelopmentProduct Development
4/7Customer DevelopmentProduct Development
4/14Customer DevelopmentProduct Development
4/21Product MVP
4/28Lessons Learned
Is revenue = pricing?
REVENUE SEEMS SIMPLE
CUSTOMER DEVELOPMENT
Customer Discovery
Customer Creation
Customer Validation
CompanyBuilding
Revenue: The strategy the company uses to generate cash from each customer segment
What value are customers willing to pay for?
Iteration Execution
Leapfrog
Foursquare
Fitbit
Scholastic
Cherrios
Amazon
Lego
Salesforce.com
Kickstarter
REVENUE GAME – WHAT ARE THE MODELS?
Dropbox
OpenTable
Hootsuite
Flickr
Whole Foods
Walmart
Postmates
Netflix
Organic broccoli farmer
Users
Buyers
Influencers
Approvers
Blockers
How the target customer currently purchases goods and services and how much they currently pay for equivalent products
Their willingness to pay for value versus lowest cost?
How much budget they have for your type of product?
REVENUE PATH: WHO IS YOUR CUSTOMER?
Selling physical goods
Selling digital products
Service per unit
Service for fixed prices
Sales of service for future use
Daily deals/flash sales
Subscriptions
Usage fees
Rental
Licensing
Certifications
Auctions
Interest/Mgmt fees
TYPES OF REVENUE: WHAT STRATEGIES WILL YOU TEST?
Dynamic pricing
Advertising
Promoted content
Sponsorships
Analytics
Databases
Brokerage
Transaction enablement
Affiliate programs
Marketplace
Freemium –paid w/out advertising
Freemium –paid w/out restrcitions
Freemium – paid with additional features
REVENUE > PRICING
Customer Discovery
Customer Creation
Customer Validation
CompanyBuilding
Pricing is a tactic – how much are each of your segments willing to pay?
Iteration Execution
Users
Buyers
Influencers
Approvers
Blockers
How the target customer currently purchases goods and services and how much they currently pay for equivalent products
Their willingness to pay for value versus lowest cost?
How much budget they have for your type of product?
REVENUE > PRICING
CUSTOMER VALIDATION
Customer Discovery
Customer Creation
Customer Validation
CompanyBuilding
Verify core features Verify market’s existence Locate customers Tests the product’s perceived value
and demand Idenfity the economic buyer Establish pricing and channel
strategies Check out proposed sales cycle
and process
ESCAPE VELOCITY
Iteration Execution
13
How does your product get from your company to your customer?
CHANNELS AND DISTRIBUTION
What were the channels before there was the internet?
CHANNELS PRE INTERNET
What are the many channels now?
CHANNELS POST DIGITAL
CHANNEL / PRODUCT
Channel
Pro
duct
Bits
/Virt
ual
Physical
Phy
sica
l
Bits/Virtual
Product:
Virtual or Physical
Channel:
Direct or Indirect
HOW DO YOU WANT TO GET YOUR PRODUCT TO YOUR CUSTOMER?
Direct sales through salesforce
Direct sales through web
Direct sales through mobile
Direct sales through mobile app store
OEM
Systems integrator
What is the complexity of your product/service?
WHAT CHANNELS WILL YOU TEST?
Dealer
Distribute to retailer
Value added resellers
Sell to distributor
Aggregator
Other
20
WHAT CAME BEFORE STEVE AND ERIC
FOR NEXT WEEK3/3/14
.
NEXT WEEK PREP:
Watch Lecture Customer Relationships—take the quiz
Watch Lecture Partners
Read: Business Model Generation 180-225
Talk to 5 or more customers face-to-face, Survey Monkey if relevant. Post discovery narratives
Presentation:
· Cover slide
· Latest version Business Model Canvas with changes marked
· Updates to Market size (TAM, SAM, Target Market)
· Results of last week’s experiments. What passed, what failed, what did you learn?
· Proposals for next week’s experiments. What constitutes a pass/fail signal for each
.
EVENT ! NYU ENTREPRENEURS SPEAKERS SERIES
Brett Martin
Co-founder & CEO, Sonar
Postmortem to a Venture-backed Startup
Thurs, Feb 27
5pm-7pm
Sonar was a mobile app created to usher in a new wave of “Ambient Social Networking”. It was downloaded by millions of people, promoted by Apple and Google, won numerous awards such as runner-up at TechCrunch Disrupt and Ad:Tech Best Mobile Startup, raised nearly $2,000,000 from prominent angels and VCs, and was featured on more than 300 publications including the New York Times, CNN, CNBC, TechCrunch, and TIME. And, yet it failed. Join Brett for a candid conversation on his lessons learned. RSVP.
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EVENT ! NYU ENTREPRENEURS FESTIVAL
Celebrating Entrepreneurship @ NYU!New York University hosts the third annual NYU Entrepreneurs Festival on the weekend of February 28 and March 1 to celebrate the vibrant and growing startup culture at the University. The event enables startup founders, investors, and prospective entrepreneurs from the NYU and NYC entrepreneurial community to share their experiences, exchange valuable insights, and provide advice on creating new ventures with our students, faculty, and alumni. Get your tickets here!
NEXT: CANVAS REVIEW AND FEEDBACK
APPENDIX
Jen van der Meer, Adjunct Professor at ITP since 2008 ITP courses + workshops: Bodies and Buildings, Products Tell Their Stories, ITP VC Pitchfest, . Currently: Luminary Labs, Angel Investor, Health Data Challenges, Judge for startup competitions, + SVA PoD
Josh Knowles, ITP ’0715+ years as an independent developer/consultant, working with numerous brands and start-up clients (currently under the aegis of Frescher-Southern, Ltd.)
ITP TEACHING TEAM
STUDENT TEAMSTeam Name School
Cognitive Toy Box Lindsey Jones Stern
Tammy Kwan Stern
Hsiang Huang Stern
Alternative Monuments Rodrigo Derteano ITP
Maximo Sica ITP
Ajejandro Puentes ITP
Alon Chitayat ITP
NYBL Sam Slover ITP
Shilpan Bhagat ITP
Max Ma ITP
DiscoverEd Sergio Majluf ITP
Su Hyun Kim ITP
Christina Yugai Stern
Yuliya Parshina Kottas ITP
Advanced Expression Rose Meacham ITP
MENTORS + TEAMS
Tom Igoe @tigoeITP, Arduino, Making Things Talk, NYU ITP Pitchfest
Alternative Monuments
Julie Berkun Fajgenbaum @julieFStern Adjunct Professor, Former VP Amex Open, now startup co-founder
NYBL
Michael Levitz @michael_levitzITP grad, R/GA, Lean
DiscoverED
Sarah Krasley @sarahkrasleyAutodesk, Sustainability, Berkeley
Advanced Expression
Chris Milne @greedo1000IDEO, Toy Lab, Stanford, LEGO
Cognitive Toy Box