startup glossary - must have startup vocabulary

STARTUP GLOSSARY BEGRIFFE UND METHODEN AUS DER STARTUP-WELT

Exec I/O | Düsseldorf | 02.12.2013

Daniel Bartel Benjamin Bestmann

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About !

+ UNSER NETZWERK

Ein Zusammenschluss aus Unternehmern und Innovatoren

DANIEL  BARTEL  Business Innovation Evangelist

BENJAMIN  BESTMANN  Business Innovator & Founder

DR.  WINFRIED  RICHTER  Entrepreneur, davor Corporate-Executive

ADRIAN  THOMA  Serial Entrepreneur

•  BOB DORF (The Startup Owners Manual) •  ASH MAURYA (Running Lean Series, Spark 59) •  ROB FITZPATRICK (The Mom Test)

•  SAL VIRANI (Leancamp) •  uvm

•  STEVE BLANK (4 Steps to Epiphany) •  ALEXANDER OSTERWALDER (Business Model Generation) •  YVES PIGNEUR & ALAN SMITH (Business Model Generation)

•  PROF. DR. GUNTER DUECK (ehem. CTO IBM)

PROF.  DR.  NILS  HÖGSDAL  Wissenschaftlicher Begleiter

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What is a Startup?

„A human institution designed to create a new product

or service under conditions of extreme uncertainty.”

- Eric Ries

„A startup is a temporary organization in search for a

scalable, repeatable, profitable business model.“

-  Steve Blank

Some Definitions

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Startups = Experiments

Problem (Market) = unknown

Solution (Product) = unknown

http://wallpaperscraft.com/image/pier_lake_descent_uncertainty_fog_60618_1920x1285.jpg

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Innovation Spectrum Sustaining vs. Disruptive Innovation

The Lean Entrepreneur, http://www.slideshare.net/slideshow/embed_code/16699289

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Search vs. Execute „Startups are not just smaller versions of big companies“

Source:  h*p://steveblank.files.wordpress.com/2010/01/business-model1.jpg

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One method to rule them all?

MBA = ADMINISTRATION (perfect for running a company, but not for “designing”)

No! Startups need their own management tools

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Efficiency vs. Effectivity Are you advancing a plan or are you making progress?

http://impossibleobjects.com/catalogue/cleaning-sneakers.html

90% OF ALL STARTUPS FAIL

http://www.wnd.com/2012/02/bolton-u-s-running-up-the-white-flag-to-taliban/

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According to Ash Maurya …

66% drastically change their original plans

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Don‘t build products nobody wants

“ Startups don’t fail because

they lack a product; they fail

because they lack customers

and a profitable business

model ”

Why startups fail

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Innovation Value Chain

BASIC RESEARCH

APPLIED RESEARCH

PRE DEVELOPMENT DEVELOPMENT PRE

PRODUCTION PRODUCTION

Theory Proof of Concept

Prototype 1st Model 1st Batch

DESIGN THINKING

LEAN STARTUP

BUSINESS MODEL GENERATION

Empathize & Define Ideate Prototype & Test

Customer Discovery Customer Validation & Creation Company Building

Value Proposition Design Business Model Canvas

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The four stages of a Startup

Problem/Solu1on-­‐Fit  

Product/Market-­‐Fit  

Search Execution

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The four stages of a Startup

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The Problem of existing companies:

Past  

Eddies Obeng's the world after midnight rate of lerning pace of change around us

Future  

Our  Learning  Curve  

Speed  of  Change  

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Alexander Osterwalder says:

“Every Business Model has an Expiry-Date!”

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Lean Startup

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Lean?

In context of startups/innovation:

“Every activity that helps to learn about what

creates value for potential customers.”

Maximize Customer Value while minimizing waste.

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Lean Startup

Define Hypotheses

Make assumptions about your business.

Build & Run Experiments Test your assumptions empirically.

Learn from the Results Pivot (change strategy) or Persevere.

A scientific approach to manage Disruptive Innovation

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Build-Measure-Learn Scientific Feedback Loop

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Define Hypotheses

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Finding a Business Model The Business Model Canvas (Alexander Osterwalder)

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“Business Model Stack”

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Test Assumptions

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Get out of the Building „There are no facts inside“ (Steve Blank)

http://www.giantbomb.com/emergency-exit/3055-4475/

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Systematically Test your Model

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Minimum Viable Product (MVP)

Examples:

•  Landing Pages •  Videos / Sketches •  Screenshots •  Paper Prototypes •  Mockups & Wireframes •  KickStarter

The minimum feature set that enables learning

http://leanheroes.com/what-is-a-minimum-viable-product-mvp/

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Pretotyping (Concierge Service)

h*p://www.openideo.com/open/web-­‐start-­‐up/inspira1on/pretotype-­‐building-­‐the-­‐right-­‐it-­‐vs.-­‐building-­‐it-­‐right/  

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Pretotyping (Concierge Service)

h*p://www.openideo.com/open/web-­‐start-­‐up/inspira1on/pretotype-­‐building-­‐the-­‐right-­‐it-­‐vs.-­‐building-­‐it-­‐right/  

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Make it count

Example: AARRR Framework by Dave McClure

Innovation Accounting & Metrics

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Design Thinking

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POV  

h*p://humani1eslab.stanford.edu/Bootcamp/Home  

Non-linear Process

Problem Solution

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“64% of features and functions are rarely or never used.”

*Source: Standish Group.

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empathize   define  

ideate   prototype  

 test  

© HPI / D-School und andere

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Huge OutCOME!

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Digg for needs, wishes & insights

Fragen? Fragen.

DANIEL  BARTEL  mail: db@ifbi.eu twitter: @danbar87 web: ifbi.eu

BENJAMIN  BESTMANN  mail: bb@ifbi.eu mobil: @BenBestmann web: ifbi.eu

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3 Mayor Risks

1. Product Risk: Getting the product right  

2. Customer Risk: Building a path to customers  

3. Market Risk: Building a viable business

è TEST THEM ALL!!!  

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prototype: fail early and often

h*p://www.pdfpedia.com/download/12464/lecture-­‐9-­‐prototyping-­‐pdf.html  

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Traditional Development