Jobs to be done, lean startup , how to manage experiments, strategy and business models

1. Innovits workshop
Back to basics
27 novembre 2013
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2. Steve Blank
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3. Startup and established company
Steve Blank
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4. The Big Picture
Business Model & Context
The Market
The Company
Customer
•Jobs to be done
•Needs
•Satisfaction
Market Segments
•Volume/Growth rate
•Revenue potential
Current Business Model
The Big Picture
Future Trends
Technology
Regulatory
Macro-economic
Society
Culture
The Industry
Gaining insights
Blue Ocean Framework
•Unexploited Potential
•Option Value
•Value Curve
•Buyer experience
Future Business Model
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5. What does business model mean?
• “A business model is simply the ‘way of doing
business’ that a firm has chosen: its entire system for
creating and providing consistent value to customers and
earning a profit from that activity, as well as benefit for its
broader stakeholders. It refers to the core architecture or
configuration of the firm, specifically how it deploys all
relevant resources (not just those within the company
boundaries), to create differentiated value for customers
at a profit…” (Davenport, T. H., M. Leibold and S. Voelpel (2006). Strategic Management in the Innovation
Economy. Publicis Wiley.)
• The business model is a company’s answer to the
question of how to make money in its chosen business. It
describes, “…as a system, how the pieces of a
business fit together” (Magretta, J. (2002). "Why Business Models Matter." Harvard Business
Review 80(5) May: 86-92.)
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6. What is a business model?
• The essence and main components
WHO
WHAT
HOW
is your
customer?
do you offer
your customers?
do you
do this?
Markets
Products & Services
Create Value
Customer Segments
Solutions
Deliver Value
Individual Customers
Experiences
Capture Value
Delivering the Who, What and How in a concise message.
Unique Value Proposition: a single, clear compelling
message that states why you are different and worth buying
By Mark Sniukas
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7. Business Model
McDonald’s
Who
• People who want a quick bite to eat
• Get in, order, get served quickly, get
out quickly again
What • Pre-made food prepared constantly
according to demand
• Standard menus
• Some variations allowed
How
• Standardized processes
• Central locations with high
frequencies
• The key is to serve a maximum
number of people during a given
time
By Mark Sniukas
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8. Your current business model
Build a common language and understanding
The business model is a company’s answer to the question of how to make money in its
chosen business. It describes, “…as a system, how the pieces of a business fit together”
KEY
PARTNER
KEY
ACTIVITIES
What are
your main
suppliers,
partners
and
alliances?
What are
your core
activities and
processes?
KEY
RESOURCES
What are your
main assets
and
competencies?
COST CENTRES
OFFER
RELATIONSHIPS
What‘s your
offer?
What‘s your
relationship
to the
customer?
What‘s your
image?
Which „jobs
to be done“
do you
satisfy?
CHANNELS
How do you
reach your
customers?
CLIENTS
Who‘s your
customer?
Which
customer
segments do
you serve?
REVENUE STREAMS
How do you
make money?
What is
driving cost?
By A. Osterlwalder
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9. BMC Example: Telco
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10. JTBD
fundamental problem in a given situation
that needs a solution
When customers find that they need to get a job done, they
“hire” products or services to do the job.
MIT Sloan Management Review 2007 - Finding the Right Job For Your Product
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11. JTBD
fundamental problem in a given situation
that needs a solution
Main jobs to be done, which describe
the task that customers want to
achieve.
Related jobs to be done, which
customers want to accomplish in
conjunction with the main jobs to be
done.
Key components of a job statement
are an action verb, the object of the
action, and clarification of the context
in which the job is performed
The Innovator’s toolkit
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12. The Process
1
2
3
• Jobs to be done
• Value proposition
• Your Business Model
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13. You are standing on a Mumbai road on a rainy day and notice the
large number of motor scooters snaking precariously in and out
around the cars
JTBD: providing a
safer alternative for
scooter families.
Value Proposition:
offering an affordable,
safer, all-weather
alternative for scooter
families.
Business Model:
that goal required radical
changes in the cost
structure of making a Car.
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14. Value Proposition Canvas
Goal: product-market fit
Design Value Propositions that match your Customer's needs and
jobs-to-be-done and helps them solve their problems
By A. Osterlwalder
.
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15. Product-Market fit
Gains:
Jobs to be done:
•Which savings would make your customer happy?
•What outcomes does your customer expect and
what would go beyond his/her expectations?
•How do current solutions delight your customer?
•What would make your customer’s job or life
easier?
•What positive social consequences does your
customer desire?
•What are customers looking for?
•What do customers dream about?
•How does your customer measure success and
failure?
•What would increase the likelihood of adopting a
solution?
Pains (before, during and
•What functional jobs is your customer trying get
done? (solve a specific problem, complete a specific
ask)
•What basic needs is your customer trying to satisfy?
(communication,…)
•What emotional jobs is your customer trying to get
done? (feel good, security,…)
after getting the JTBD):
•What does your customer find too costly?
•What makes your customer feel bad?
•How are current solutions underperforming for your customer?
•What are the main difficulties and challenges your customer encounters?
•What negative social consequences does your customer encounter or fear?
•What risks does your customer fear?
•What common mistakes does your customer make?
•What barriers are keeping your customer from adopting solutions?
By A. Osterlwalder
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16. Value Proposition Canvas
(vitamins): How we provide benefits for our customers
(for example: helping them to save some money thanks to some
discount coupons).
(analgesics): How we are helping our customers with
their pains (for example: saving them some time thanks to the
automatic generation of a shopping list or thanks to a home
delivery service)
Which core beliefs you need to test with customers
By A. Osterlwalder
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17. The Journey
Andreas Klinger
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18. Static and Dynamic merge
WHAT are we
building and
WHY are we
buiding it
By A. Osterlwalder
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19. There are no facts inside the
building
Lean Startup 101
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20. Leaps of faith assumptions
The Value Hypothesis
The Growth Hypothesis
The Minimum Viable Product
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21. DURATHON
Data
Center
Telecom /Cell
phones provider
Unreliable
electric grid
+1
backup
metod
Sell
Risk theft
of fuel
Fuel
costs
countries
have grid
problerms
Data center fuel
availability
Developing
countries / no
reliable grid
Exploration
7/10
www.leanstartupmachine.com
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22. The easiest version…
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23. Lean Launch Lab
www.leanlaunchlab.com
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24. BMC
KEY
PARTNERS
KEY
ACTIVITIES
KEY
RESOURCES
COST CENTRES
VALUE
PROPOSITION
RELATIONSHIPS
CUSTOMERS
CHANNELS
REVENUE STREAMS
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25. Strategy and Business Models
(Business Models)… But they don’t factor in one critical
dimension of performance: competition.
Sooner or later—and it is usually sooner—every enterprise
runs into competitors
P.B. Seddon – G.P. Lewis Strategy and Business Models: what’s the difference?
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26. Value Curve theory (1)
W.C. Kim R. Mauborgne Blue Ocean Strategy
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27. Value Curve theory (2)
W.C. Kim R. Mauborgne Blue Ocean Strategy
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28. Nintendo Wii example
Industry Strategy Canvas
10
Scoring
8
6
4
2
0
Nintendo
Factors of Competition
W.C. Kim R. Mauborgne Blue Ocean Strategy
Game Industry
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29. Holistic Focus on three things
Agile Coaching Blog – David Bland
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