1. Idea to Opportunity Satish K Gupta August 17, 2010

2. What is an “Idea”? Idea is a set of hypotheses Product or service hypothesis Customer problem hypothesis Sales process hypothesis Demand market hypothesis Competitive hypothesis Business model

3. What is an “opportunity”? An idea transformed into a solution with well defined: Problem alignment- value proposition Customers/market Business model Pricing Sales process

4. Credit for key points

5. Indentify the Nature of the Idea Four categories of startups New product into known market New product at “low cost” into re-segmented market New product into a niche of a re-segmented market New Product into a new market

6. Basic paradigms SLP: Solution Looking for a problem – category 2, 3 and 4 PLS: Problem Looking for a Solution – category 1

7. Problem Looking for Solution Classic Product Development Model Product Concept Idea Seed Product Development Alpha/ Beta Test Product Launch First Customer shipment

8. Product Development Model Known customers Known Product Known Business model Known Pricing/competition Known sales process

9. Solution Looking for a Problem Need to Validate the Idea in a cost effective manner Where are the customers Clarify product/service aka value proposition Establish Business model How do you make a profit to build the business

10. SLP: Customer Discovery Model Iteratively learn and tweak product definition and define customer segment Company Building Customer Discovery Customer Creation Customer Validation

11. SLP: Crossing the chasm Product Development Customer Development

12. SLP: Customer Discovery Friendly customer Test your product and problem hypotheses Preliminary business model Multiple customers Objective listening Iterate and improve Low cost learning team

13. SLP: Customer Validation Sell to early evangelists Refine Sales message Iterate business model Competitive positioning Sales channel and pricing

14. SLP: Customer Creation Market positioning PR Launch Demand Creation

15. SLP: Company Building Mainstream customers Transform company culture Organize for Product Development Model Build a quick response organization

16. SLP: Organizational implications Small flat teams Egoless Title less Learning attitude Ready to take on any role needed Cost effective Jazz not Orchestra

17. Conclusion Idea is often a fantasy. We introduced a discipline of “customer discovery” model Objective: Turn a fantasy into a dream that can be the engine for empowering a successful startup