stop guessing bsg market segmentation and product analysis conference (september 2014)

PowerPoint Presentation

STOP GUESSING!adding science to magic in managing the implementation of innovative ideas BSG. All rights reserved.22 September 2014

What we know: the world is getting smaller, again

BSG. All rights reserved.

Convergence

Everybody wants to own the platform

22 September 2014 BSG. All rights reserved.If you own the platform, you own the customer, otherwise youre just a value-added service provider.


ProductServiceValueBest match winsBut what do our customers need?

Nobody knows for sure, not even our customers.

BSG. All rights reserved.How have we (mostly) always done things?

HOPEand

The Big launch

Grand plan

Blueprint

Dedicate resources

Build

Do we know enough?What do we need to move to looking like?Who?How much?What am I committing to show as a return?Overruns?Why is it taking so long?Will it work?Typically, it takes a long time to get from initial commitments to actual results

123Is this the right thing to do?Are we managing expectations effectively?Are we confident that this will work?Were smart people after all so we have good ideas!Is there another way?

Real customers, in real situations, are often not part of this at all!

Vanity metrics!

Does it work?


Alan Smithee 78 movie credits on IMDB.com

So where does this leave us?


Making big bets and hoping for the best

HOPE

Build confidence iteratively, in line with investment


There have always only been two good outcomes for any ideaKnowingNOT Knowing

Thinking its still a good idea but not knowingKnowing

A better way to innovate22 September 2014 BSG. All rights reserved.

If we know that we dont have all the answers, why are we surprised that we get things wrong?

Origin of the Lean Start-up BSG. All rights reserved.

Recognition that existing businesses execute a business model, while start-ups look for one!Start-ups were originally based on valuing business plansNo customer feedback built in

No confidence in 5 year view

BUSINESS CASE

22 September 2014 BSG. All rights reserved.

Innovation + ongoing validation = invest with confidence

Create Context

What should the business look like?Problem / Solution Fit

Is there a problem worth solving?Product / Market FitDo we have a solution that people are prepared to pay for?Scale

Proven market product - invest in growth!Business model canvasResearch insights, analyticsUVP CanvasGet out of the buildingMVPDevelop the smallest set of functions that you can use to get feedback from real people early adoptersProceed with confidenceGet Production, Sales & Marketing involvedROI justifiable

1

2

3

4

LEARNBUILDMEASURE

PivotPersevere

BSG. All rights reserved.No customer feedback built in

UVP CanvasUVP CanvasUVP Canvas

Create context: The Business Model Canvas

The Unique Value Proposition Model22 September 2014 BSG. All rights reserved.

No customer feedback built in

1 2: What is the problem were solving, and is it a problem worth solving?

3 4: Will the market be willing to pay for our solution?

everything! Get out of the building!Test


HYPOTHESISHow does this align to our business modelFocusIs this worth solving?Lets testMVPREFINEEXECUTEWill the market buy it?Lets build and test with early adoptersProductMarket fitSales and Marketing roadmap

Build the business!Scale executionOperationsFind partners

Whats our next great idea?

How does the business fit together?1. Problem?2. Solution?3. Pay?

GREAT IDEA

BAD IDEAUVP

STOP GUESSING!


New concepts to appreciate

MVPBuild / Measure / LearnPivot or persevereCustomer needsVanity metricsUVPConfidence is better than hopeFailing is good as long as we do it quickly and cheaply

Checklist to create confidence22 September 2014 BSG. All rights reserved.When youve validated Problem / Solution fit, and Product / Market fit, then Scale with confidence!

Be prepared to fail and expect to do so!

Include customers in ALL steps

Arm yourself with enough research data to make a startThen build the smallest thing you need to get real feedbackUse this to validate your ideas, and set direction in terms of pivoting or persevering

Who is doing this already? BSG. All rights reserved.

In a world of rapidly reducing barriers to entry, 1,000s of start-ups that you havent heard of (yet) but who will probably be your next competitors, very, very soon!

References22 September 2014 BSG. All rights reserved.

The Business Model Generation by Alex Osterwalder

Why the Lean Start-up changes everything HBR article by Steve Blank

The Lean Startup by Eric Ries

Running Lean by Ash Maurya

Johannesburg London Cape TownLaura Greaves Business Development

+27 11 215 [email protected]

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www.bsg.co.za // @bsgafricaLaura Greaves Business Development


Triangle House22 Riebeek StreetCape Town8001

www.bsg.co.za // @bsgafrica

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