leaner startup modeling: a value innovation storydeck of standardized tools for eric ries’s lean...

VALUE INNOVATION STORYDECK FOR LEANER STARTUP INNOVATION A Simpler Way to Generate, Organize, Manage, Implement, and Share Ideas

VALUE INNOVATION STORYDECK

Value Innova:on Storyboard

Value Innova:on Storypanel Value Innova:on Storycard

#4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing

Value Innova:on Storydeck

Refers to

A Suite of Value Innova:on Storyboards for

Visually Organizing and Sharing Ideas

Especially in Leaner Startup Projects

“Value Innova:on Storyboard”

Refers to

a Specific Tool for Visual Ideas Management:

3 Connected Storypanels

for Hierarchically Organizing and Sharing Ideas

Especially in Leaner Startup Projects Note Each Storypanel has 3 Storycards so that a Value Innova@on Storyboard has 3 Storypanel and a Total of 9 Storycards

OBJECT:

Bird’s Eye View of Value Innova:on Storyboard (Blank) Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


OBJECT:

Worm’s Eye View of Value Innova:on Storyboard (Blank) Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


TOPIC 1 TOPIC 2 TOPIC 3

Topic 2.1 Topic 2.2 Topic 2.3



OBJECT:

Worm’s Eye View of Value Innova:on Storyboard (Topics) Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


Generic Leaner Startup Standardiza:on

Simply Organize and Share Ideas Especially in

Leaner Startup Projects

GENERIC LEANER STARTUP STANDARDIZATION: 21 Generic Value InnovaNon Storyboards

q  Timeline Storyboard q  System Hierarchy Storyboard q  Spa:al Hierarchy Storyboard q  Space-‐Time Storyboard q  Story Structure Storyboard q  Joke Structure Storyboard q  Why-‐What-‐How Storyboard q  Mission-‐Vision-‐Values Storyboard q  Enterprise Value Storyboard q  Product Value Storyboard q  Change Management Storyboard q  Blue Ocean Strategy Storyboard q  Problem-‐Causes-‐Solu:ons Storyboard q  Problem-‐Solu:on-‐Benefit Storyboard q  Job-‐To-‐Get-‐Done Storyboard q  Industry Segmenta:on Storyboard q  Market Segmenta:on Storyboard q  “CD-‐MAGICS” Process Storyboard q  Six Sigma Storyboard q  Con:nuous Disrup:on Storyboard q  Red Ocean Disrup:on (ROD) Storyboard

OBJECT (Time):

Timeline Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Past Present Future


OBJECT (System):

System Hierarchy Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Subsystem System Environment


OBJECT (Space):

Spa:al Hierarchy Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Level 1 Level 2 Level 3


OBJECT (Space-‐Time):

Space-‐Time Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Beginning Middle End


OBJECT (Story):

Story Structure Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Act 1 Act 2 Act 3


INTRODUCTION SET UP PUNCHLINE

OBJECT (Joke):

Joke Structure Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


OBJECT (3 QuesNons):

Why-‐What-‐How Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

How? What? Why?


OBJECT (MVV):

Mission-‐Vision-‐Values Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Values Vision Mission


OBJECT (Value):

Present Value Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

System (OrganizaNon)

+: Posi:ve Effect (Advantage/Strength)

-‐: Nega:ve Effect (Disadvantage/Weakness)


OBJECT (Value):

Enterprise Value Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Enterprise (OrganizaNon/System)

+: Posi:ve Effect (Delight) (Advantage/Strength)

-‐: Nega:ve Effect (Pain) (Disadvantage/Weakness)


OBJECT (Value):

Product Value Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Product (Object/System)

+: Desirable Effect (Delight) (Advantage/Strength)

-‐: Undesirable Effect (Pain) (Disadvantage/Weakness)


OBJECT (Change):

Change Management Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

What to Change? How to Change? To What to Change?


OBJECT (Strategy):

Blue Ocean Strategy (BOS) Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Red Ocean (“Suck”)

Blue Ocean Strategy (Value InnovaNon TacNcs/AcNons)

Blue Ocean (“Insanely Great”)


PROBLEM (Hypotheses)

CAUSES (Hypotheses)

SOLUTIONS (Hypotheses)

OBJECT (Customer Archetype/Decision-‐Criteria Hypotheses):

Problem-‐Causes-‐Solu:ons Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


PROBLEM SOLUTION BENEFIT

OBJECT (Value ProposiNon):

Problem-‐Solu:on-‐Benefit Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


CORE JOB-‐TO-‐GET-‐DONE

PERIPHERAL

JOB-‐TO-‐GET-‐DONE

REMOTE

JOB-‐TO-‐GET-‐DONE

OBJECT (Job-‐To-‐Get-‐Done):

Job-‐To-‐Get-‐Done Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


ARENA (LINE OF BUSINESS)

SECTOR

INDUSTRY

OBJECT (Industry SegmentaNon):

Industry Segmenta:on Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


TARGETED MARKET (Niche/Unique Reach)

“SERVABLE” MARKET (Own Channel Reach)

TOTAL MARKET (Industry Reach)

OBJECT (Market SegmentaNon):

Market Segmenta:on Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


C: Collect

D: Define

M: Measure

OBJECT (Process):

“CD-‐MAGICS” Process-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Sheet 1 of 3


A: Analyze

G: Generate

I: Implement

OBJECT (Process):


Sheet 2 of 3


C: Control

S: Share

OBJECT (Process):


Sheet 3 of 3


D: Define

M: Measure A: Analyze I: Improve

C: Control

M: Measure

A: Analyze

I: Improve

D: Define

C: Control

OBJECT (“DMAIC” Process):

Six Sigma Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


BUSINESS STORY

B: Build SoluNon

M: Measure Problem A: Analyze Problem

I: Improve SoluNon

D: Define Problem

L: Learn What’s Valued

Con:nuous Disrup:on (CD) Storyboard -‐ Annotated Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


CUSTOMER STORY

LEARNING STORY

VISION (“LEAP OF FAITH”) (Customer Segment/“Tribe”):

PRESENT PERFORMANCE (“RED OCEAN”)

STRATEGY, BUSINESS MODEL, AND

EXECUTION CYCLE

FUTURE PERFORMANCE (“BLUE OCEAN”)

Red Ocean Disrup:on (ROD) Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management



STRATEGY, BUSINESS MODEL, AND

EXECUTION CYCLE STRATEGY

BUSINESS MODEL/RESOURCES

EXECUTION CYCLE

PRODUCT/SERVICE/TOOL PAIN (-‐)

DELIGHT (+)

PRODUCT/SERVICE/TOOL

PAIN (-‐)

DELIGHT (+)

Red Ocean Disrup:on (ROD) Storyboard -‐ Annotated Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


PRESENT PERFORMANCE (“RED OCEAN”)

FUTURE PERFORMANCE (“BLUE OCEAN”)


Classic Leaner Startup Standardiza:on



CLASSIC LEANER STARTUP STANDARDIZATION: 11 Classic Value InnovaNon Storyboards

q  Lean Startup Principles-‐Storyboard q  Analog-‐An:log Storyboard q  Leaner Startup Outcomes-‐Storyboard q  Vision-‐Strategy-‐Product Storyboard q  Build-‐Measure-‐Learn Storyboard q  Validated Learning Storyboard q  Cohort Analysis-‐Storyboard q  Kanban Storyboard q  Lean Startup Way-‐Storyboard q  9 Whys-‐Storyboard q  9 Hows-‐Storyboard

1. “Entrepreneurs are everywhere”

2. “Entrepreneurship is management”

3. “Validated learning”

OBJECT (Principles):

Lean Startup Principles-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Sheet 1 of 2

L E A N S T A R T U P M E T H O D (Based on Eric Ries’s Book, “The Lean Startup”)


4. “Build-‐Measure-‐ Learn”

5. “Innova:on accoun:ng”

OBJECT (Principles):

Lean Startup Principles-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Sheet 2 of 2

L E A N S T A R T U P M E T H O D (Based on Eric Ries’s Book, “The Lean Startup”)


“There is nothing intrinsically wrong with basing strategy on comparisons to other companies and industries.

In fact, that approach can help you discover assump:ons that are really leaps of faith.”

Eric Ries in his book, “The Lean Startup”

ANTILOG LEAP OF FAITH ANALOG

An:log-‐Analog Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

ANTILOG ANALOG LEAP OF FAITH

(VISION: Value Curve)

delivers

requires

drives

Product/Service/Business

+: Delight

-‐: Pain

Product/Service/Business +: Delight -‐: Pain

Product/Service/Bus. (Minimum Viable Prototype)

+: Delight

-‐: Pain

Job-‐To-‐ Get-‐Done

An:log-‐Analog Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

requires


“A startup can evaluate whether it is gecng closer to product/market fit as it tunes its engine [of growth] by evaluaNng each trip through the Build-‐Measure-‐Learn feedback loop using

innova:on accoun:ng. What really maders is

not the raw numbers or vanity metrics but the direc:on and degree of progress.”


Problem-‐Solu:on Fit

Radically Successful and Sustainable Business

Product-‐ Market Fit

Leaner Startup Outcomes-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

PROBLEM/SOLUTION FIT

PRODUCT/MARKET FIT

RADICALLY SUCCESSFUL AND SUSTAINABLE

BUSINESS

delivers

requires

drives


requires

Leaner Startup Outcomes-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


“Startups also have a true north, a desNnaNon in mind: crea@ng a thriving and world-‐changing business.

I call that a startup’s vision. To achieve that vision,

startups employ a strategy, which includes a business model, a product map, a point of view about partners and compe:tors, and ideas about who the customer will be.”

The product is the end result of this strategy.”


PRODUCT VISION STRATEGY

Vision-‐Strategy-‐Product (Planning) Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

PRODUCT

STRATEGY

VISION

PRODUCT STRATEGY VISION

(Leap of Faith/Criteria)

delivers

requires

drives



requires


PRODUCT STRATEGY VISION

(Leap of Faith/Criteria)

delivers

requires

drives

Business Model Product Map Partners/Compe:tors/ Customer Segment



requires


“Although we write the feedback loop as Build-‐Measure-‐Learn

because the [execu:on] acNviNes happen in that order, our planning really works in the reverse order:

we figure out what we need to learn, use innova@on accoun@ng to figure out what we need to measure to know if

we are gaining validated learning, and then figure out what product we need to build to

run that experiment and get that measurement.”


Build-‐Measure-‐Learn (Execu:on) Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

BUILD LEARN MEASURE

BUILD

Product (Prototype)

MEASURE

Data

LEARN

Ideas

delivers

requires

drives


Build-‐Measure-‐Learn (Execu:on) Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

requires


WHAT WE LEARNED

WHAT WE THOUGHT

WHAT WE DID

Validated Learning Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

“Startups exist not just to make stuff, make money, or even serve customers. They exist to learn how to build a sustainable business.

This learning can be validated scienNfically by running experiments that allow entrepreneurs to test each element of their vision.”


WHAT WE LEARNED (Insights; Lessons)

WHAT WE DID (Test; Facts)

WHAT WE THOUGHT (Hypotheses; Theory)

Validated Learning Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management



“This [cohort analysis] is

one of the most important tools of startup analy:cs. Although it sounds complex, it is based on a simple premise.

Instead of looking at cumula@ve totals or gross numbers such as total revenue and total number of customers,

One looks at the performance of each group of customers that come into contact with the product independently.

Each group is called a cohort.”


COHORT A CONCLUSION COHORT B

Cohort Analysis-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

COHORT A COHORT B CONCLUSION

(Insights/Lessons)

q  Engagement

q  AcquisiNon

q  AcNvaNon

q  RetenNon

q  Referral

q  Revenue

q  Engagement

q  AcquisiNon

q  AcNvaNon

q  RetenNon

q  Referral

q  Revenue


Cohort Analysis-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


“The kanban rule permit[s] only so many stories in each of four states.

As stories flow from one state to the other, the buckets fill up.

Once a bucket becomes full, it cannot accept more stories.

Only when a story has been validated can it be removed from the kanban board. If the valida:on fails and it turns out the story is a bad idea,

the relevant feature is removed from the product.”


Kanban Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

DONE TO DO DOING

DONE

(Built/Validated)

DOING

(In Progress)

TO DO

(Backlog)

Validated


Kanban Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


“The Lean Startup works only if we are able to build

an organiza:on [a business model] as adaptable and fast as the challenges it faces.”


Lean Startup Way-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

PRODUCT INNOVATION

INNOVATION ACCOUNTING

CUSTOMER DEVELOPMENT

PEOPLE

CULTURE

PROCESS

ACCOUNTABILITY

PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires

People Culture

Process

Accountability


Lean Startup Way-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


“At the root of every seemingly technical problem Is

a human problem. Five [Nine] Whys provides an opportunity to Discover what that human problem might be.”


9 Whys-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

WHY? WHY? WHY?

PROBLEM (Failure):

WHY? WHY? WHY?

9 Whys-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

PROBLEM (Failure):


HOW? HOW? HOW?

9 Hows-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

SOLUTION (Goal):

HOW? HOW? HOW?

SOLUTION (Goal):

9 Hows-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


Integrated Leaner Startup Standardiza:on



Business Model Learning (BML) Cycle Quickly Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Customer Development

Model

Innova:on Accoun:ng Model

Product Innova:on Model

Build (Value Crea@on)

Learn (Value Sharing)

Measure (Value Delivery)

Business Model


The Integrated Value Innova:on Storyboard Is

a Category of Value Innova:on Storyboards For Simply IllustraNng & ValidaNng the Logic of Leaner Startup (Lifecycle Value) Innova:on

as well as Strategic Planning and Project Management



Value Crea1on Value Delivery Value Sharing (Profit)

INTEGRATED Value Innova:on Storyboard The One Storyboard for Simply Transla@ng Eric Ries’s Lean Startup Ideas, Principles, and Method into Reality



Value Crea1on: BUILD

Value Delivery: MEASURE

Value Sharing (Profit): LEARN

INTEGRATED Value Innova:on Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management






PRODUCT INNOVATION

MODEL


MODEL


MODEL



PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires







PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires




VISION (Problems/Plan/Ideas) STRATEGY (Emergent; Pivot)



PRODUCT (Analog; An@log) #4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing

PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires

Product/Value Proposi:on

Channels & Rela:onships

Customer/Job-‐To-‐Get-‐Done

Inputs/Partners

Internal Resources

Processes/Ac:vi:es

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)








PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/Ac:vi:es

require(s) affect(s)

require(s) deliver(s)

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)








PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires

Product/Value Proposi:on q  Output – tool, product, service,

or informa@on – that is offered to or exchanged with a customer usually for compensa@on (fee)

Channels & Rela:onships q  Place and/or way of delivering

output to customers as well as for customers to request/acquire the output (product/service)

Customer/Job-‐To-‐Get-‐Done q  Someone who experiences great

pain in using exis@ng tools to get a job done and for whom a new tool solves a cri@cal problem

require(s)

require(s)

Inputs/Partners q  Key informa@on, materials, labor,

capital, and partners that are required to create a given output (product/service) for customers

Internal Resources q  Physical, intellectual, emo@onal,

and spiritual assets for trans-‐forming inputs into a valuable or desirable output for customers

Processes/Ac:vi:es q  How the organiza@on transforms

inputs into a desirable output (tool/product/service) as well as creates compe@@ve advantage



Cost (Pain) q  Generated nega@ve

impact, effect, or result that is usually measured in monetary unit

Revenue (Delight) q  Generated posi@ve

impact, effect, or result that is usually measured in monetary unit

PROFIT (VALUE) q  Net posi@ve impact, effect

or result that is usually measured in monetary unit or efficiency terms

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)





LEANER STARTUP MODEL: Defini:on of Terms on 9 Storycards of Value Innova:on Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management



delivers

requires

drives

requires




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/Ac:vi:es



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)



PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED Value Innova:on Storyboard FOR A “RADICALLY SUCCESSFUL BUSINESS (RSB)” Dropbox, Inc. Before Problem-‐Solu1on Fit & Product-‐Market Fit


PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires

Product/Value Proposi:on q  Cloud File-‐Sharing and Storage

Service q  Simply backup and share files

across computers and access files from anywhere

Channels & Rela:onships q  Dropbox.com q Mobile Device with Dropbox App q Word-‐of-‐mouth (Referral) q  Automated Service q  Community (Facebook; etc.)

Customer/Job-‐To-‐Get-‐Done q  “Low Storage” Customer q  “High Storage” Customer q  Job-‐To-‐Get-‐Done: Transport/

Synchronize files across mul@ple computers or devices

require(s)

require(s)

Inputs/Partners q  Amazon Simple Storage Service q Mobile Service Providers q  Social Network (Facebook)

Internal Resources q  Staff q  IT Infrastructure q  FaciliNes

Processes/Ac:vi:es q  Human Resource Management q  Product Development q MarkeNng & Sales



Cost (Pain) Cost Items q  Staff q  IT Infrastructure q  FaciliNes

Revenue (Delight) Revenue Items q  Free (“Low Storagers”) q  Paid (“High Storagers”): US$240 Million (2011)

PROFIT (VALUE) q  Profit q  Freemium Business

Model q  Blue Ocean Vision

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)





INTEGRATED Value Innova:on Storyboard FOR A “RADICALLY SUCCESSFUL BUSINESS (RSB)” Dropbox, Inc. AKer Product-‐Market Fit



①  Formulate Your Business Vision or Customer Story Especially Regarding a “Radically Successful Business (RSB)”, Profit (Margin), Big Urgent Market Problem (BUMP), and/or Trade-‐off In Your Arena

②  Select and Field-‐test a Generic Business Strategy for Achieving the Vision While Using the Mantra of “Get Out Of the Building” and/or Landing (Minimal) Webpage

③  Talk to and Gain Insights From Customer Archetypes Especially Regarding Jobs-‐To-‐Get-‐Done, Tools, and Trade-‐offs

④  Decide What Business/Industry/Sector You Are In and Select Best Available Product (Analog/An:log) as “Red Ocean” Minimum Viable Product (MVP)

⑤  Explore ExisNng Problem-‐Solu:on Fit for Unserved/Underserved Customer Archetypes or “DissaNsfiers”

⑥  Make a Pivot or Structural Change to Your Lean Startup Model for “Red Ocean” Minimum Viable Product (MVP), if There Exists a Strong Problem-‐SoluNon Fit with ExisNng (“Red Ocean”) Tools or Analogs

⑦  Formulate and Field-‐test a DifferenNated Value Proposi:on (Benefits/SpecificaNons/Features of Prototypes) for Targeted Customer Archetypes Especially By Prototyping a Pivoted or “Blue Ocean” Minimum Viable Product (MVP)

⑧  Formulate and Field-‐test Growth (Channel) Hypothesis, Engines of Growth, and Value Hypothesis (Product-‐Market Fit) for Pivoted or “Blue Ocean” MVP

⑨  Manage Ac:onable Metrics or Key Performance Indicators to Validate the Logic of Norma@ve Lean Startup Model -‐ Innova@on Accoun@ng, Customer Development, and Product Innova@on Models -‐ for Radically Successful Business (RSB)

⑩  Summarize Validated Learning (Insights; Lessons Learned) & Decide Whether to Persevere or Pivot (Strategy/Vision)

10 STEPS FOR USING THE INTEGRATED VALUE INNOVATION STORYBOARD Value Innova@on Storyboard or Lifecycle Value Innova@on to Create Radically Successful Businesses


PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/Ac:vi:es



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)






10 STEPS FOR USING THE INTEGRATED VALUE INNOVAITON STORYBOARD Value Innova@on Storyboard for Lifecycle Value Innova@on to Create Radically Successful Businesses

10

8.1

8.4

8.2

9.2

9.1

7

5

6

3

1 2 4

8.3

PRODUCT (Analog; An@log)

0

Appendix

INTEGRATED LEANER STARTUP STANDARDIZATION: 4 Integrated Value InnovaNon Storyboards

q  Integrated Leaner Startup Model-‐Storyboard

q  Unknown Business Model-‐Storyboard

q  10 Pivot-‐Storyboard

q  Leaner Startup Examples-‐Storyboard

PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires




Inputs/Partners

Internal Resources

Processes/Ac:vi:es

Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)








delivers

requires

drives

requires

Unknown Business Model Storyboard 9 Types of Unknowns, Indeterminacies, or Risks for VALIDATED LEARNING in an Embryonic Leaner Startup




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/Ac:vi:es



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)



PRODUCT INNOVATION

MODEL


MODEL


MODEL





delivers

requires

drives

requires

Leaner Startup Concepts-‐Storyboard One-‐Page Checklist of ASSUMPTIONS for Lifecycle Value Innova@on That Creates Radically Successful Businesses

(Based on Eric Ries’s Book, “The Lean Startup”)




require(s)

require(s)

Inputs/Partners

Internal Resources

Processes/Ac:vi:es



Cost (Pain)

Revenue (Delight)

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)


VISION (Problems/Plan/Ideas)

q  Engagement q  AcquisiNon; AcNvaNon q  RetenNon; Referral; Revenue

STRATEGY (Emergent; Pivot)

PRODUCT INNOVATION

MODEL


MODEL


MODEL





delivers

requires

drives

requires

10 Pivot-‐Storyboard 10 Pivots: Based on Eric Ries’s Catalog of Pivots in his book, “The Lean Startup”

Product/Value Proposi:on q Zoom-‐in Pivot q Zoom-‐out Pivot q Plarorm (Total SoluNon) Pivot

Channels & Rela:onships q Channel Pivot q Engine of Growth Pivot

Customer/Job-‐To-‐Get-‐Done q  Customer Segment Pivot q  Customer Need Pivot

require(s)

require(s)

Inputs/Partners

Internal Resources q Business Architecture Pivot q Technology Pivot

Processes/Ac:vi:es



Cost (Pain)

Revenue (Delight) q Value Capture Pivot

PROFIT (VALUE)

requires

drive(s)

delights

delight(s)

delight(s)

(Problem

-‐SoluN

on Fit; Produ

ct-‐M

arket F

it)



PRODUCT INNOVATION

MODEL


MODEL


MODEL





PRODUCT INNOVATION

MODEL


MODEL


MODEL

delivers

requires

drives

requires

Product/Value Proposi:on q Minimum Viable Product (MVP):

SnapTax; Zappos; Dropbox; Aardvark; USA Government (CFPB); Kodak Gallery; Village Laundry Service; Craigslist

Channels & Rela:onships q  Viral Engine of Growth (EOG):

Tupperware; Hotmail; Facebook q  S:cky EOG: Tel. Service Provider q  Paid EOG: IMVU

Customer/Job-‐To-‐Get-‐Done q  Customer Archetype: UX Design q  Cohorts (Split-‐Test): IMVU q  Talking to Customers: IMVU q  Genchi Gembutsu/“Get Out of

Building”: Toyota (Sienna); Intuit

Inputs/Partners q  Analog: Walkman (iPod) q  An:log: Napster (iPod)

Internal Resources q  Kanban Board: Grockit

Processes/Ac:vi:es q  Build-‐Measure-‐Learn: IMVU q  Pivot: Groupon; Path; Wealth-‐

front (KaChing); VoNzen; IMVU q  Small Batch: Zappos; School of 1 q  5 Whys: IGN Ent.; IMVU

Cost (Pain) q Waste: q  Customer Life:me Value: q  Switching Cost

( “S:ckiness”):

Revenue (Delight) q  Ac:onable Metrics:

IMVU; Grockit

PROFIT (VALUE) q  Innova:on Accoun:ng:

IMVU; VoNzen q  Validated Learning: IMVU q  Learning Milestones:

IMVU





Leaner Startup Examples-‐Storyboard Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management



INTEGRATED LEANER STARTUP STANDARDIZATION: 7 Global Value InnovaNon Storyboards

q  Leaner Startup Plan

q  Trade-‐off Map

q  Leaner Startup Model & Environment

q  Leaner Startup Model & Global Environment

q  Leaner Startup Model & Industry Environment

q  Leaner Startup Model & Innova:on Tac:cs

q  Leaner Startup Model & SWOT Analysis

Past Reality

Present Reality

Future Reality

Strategy

Short/Medium/Long-‐term

WHAT to pivot? TO WHAT to pivot?

WHY pivot?

LEANER STARTUP PLAN

4 Pivot Ques@ons & Unique Kanban Board

HOW to pivot?

Date: ………………………………..

Vision

Product


Disrup1on Spot

Luxury Spot

Strategic Choice

Sweet Spot Profit Model/ Strategy/

Value Proposi@on

Blue Ocean Profit Model/ Strategy/

Value Proposi@on

Luxury Spot (“Differen@a@on”) Profit Model/ Strategy/

Value Proposi@on

Disrup:on Spot/Lean (“Low Cost”) Profit Model/ Strategy/

Value Proposi@on

TRADE-‐OFF MAP

4 Generic Profit Models, Winning Strategies, and Value Proposi@ons

(-‐): PAIN: Cost

(+): DELIGHT: Revenue

Key Profitable Model Unprofitable Model

Market Segment (Job-‐To-‐Get-‐Done/Goal; Product/Tool): ………………..…..……..…….………… ……………………………………………………………………….…………….………….……………….

“Insane” Happiness (Value) Ideal Final Result (IFR) Infinite Shared Happiness “Invisible Hand”


ENVIRONMENT

PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED LEANER STARTUP MODEL: Showing the Environment Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management


PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED LEANER STARTUP MODEL: Showing Forces of the Global Environment Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Indu

stry Ecosystem

(IE): Sup

ply

Market E

cosystem

(ME): D

eman

d

Key Trends & Complementors (KTC): PESTLIED (-‐/+)

Macro-‐Economic Influencers (MEI): Global Economy #4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing

PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED LEANER STARTUP MODEL: Showing Porter’s Forces of the Industry Environment Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

Bargaining Pow

er of Sup

pliers

Bargaining Pow

er of C

ustomers

Threat of New Entrants

Threat of Subs:tute Products or Services #4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing

PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED LEANER STARTUP MODEL: Showing “E.R.I.C.” Value InnovaNon TacNcs Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

E: Elim

inate

I: In

crease

C: Create

R: Reduce #4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing

PRODUCT INNOVATION

MODEL


MODEL


MODEL




INTEGRATED LEANER STARTUP MODEL: Showing Elements of SWOT Analysis Simply Share Ideas for Strategic Planning, Leaner Startup Innova@on, and Project Management

W: W

EAKN

ESSES (-‐)

S: STR

ENGTH

S (+)

O: OPPORTUNITIES (+)

T: THREATS (-‐) #4ROD. Dr. Rod King. [email protected] & hLp://businessmodels.ning.com & hLp://twiLer.com/RodKuhnKing