Steve Blank

APRIL 20, 2009

Berkeley Haas Business School was courageous enough to give me a forum teach the Customer Development Methodology. This wave of 1950′s/’60′s startups (Watkins-Johnson, Varian, Huggins Labs, MEC, Stewart Engineering, etc.) And these microwave engineers were working at startups – not large companies.

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Steve Blank

FEBRUARY 23, 2009

I was consulting for the two venture capital firms who between them put $12 million into my last failed startup. I began to gain an appreciation of how world-class venture capitalists develop pattern recognition for these common types of problems. Do you have thoughts on specifically how to restructure startups?

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Steve Blank

SEPTEMBER 3, 2009

This post describes how the traditional product development model distorts startup sales, marketing and business development. This post describes how the traditional product development model distorts startup sales, marketing and business development. I hope this thinking already sounds inane to you. What plan says that?

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Steve Blank

AUGUST 13, 2009

Since I wasn’t an engineer, my contribution was around the team-building and fund raising. Customer Development/Lean Startups In hindsight startups and the venture capital community left out the most important first step any startup ought to be doing – hypothesis testing in front of customers- from day one.

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Steve Blank

APRIL 10, 2009

One of the things he mentioned was that when it came to decision-making he still tended to think and act like an engineer. Since every situation is unique, there is no perfect solution to any engineering, customer or competitor problem, and you shouldn’t agonize over trying to find one. The same is true in your company.

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Steve Blank

JULY 2, 2009

To an entrepreneur, being asked to join a venture firm with an Entrepreneur-in-Residence title means you have been tapped on the shoulder by the VC gods. I remember thinking, “What a disappointment one of the smartest engineers I know and he is going to waste his time making games.” How could it go wrong? Little did I know.

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Steve Blank

OCTOBER 8, 2009

We were sitting in our conference room in our first “system-planning meeting” trying to define the specifications of our new supercomputer and make the trade-offs between what was possible to build, and what customers in this new market would actually want and need. The conversation that day would become one of my professional watermarks.

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Steve Blank

SEPTEMBER 17, 2009

This post describes a solution – the Customer Development Model. In future posts I’ll describe how Eric Ries and the Lean Startup concept provide the equivalent model for product development activities inside the building and neatly integrates customer and agile development.

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Steve Blank

OCTOBER 5, 2009

My ex-boss was going to be the VP of Engineering and I would report to the CEO whose marketing acumen and sales instincts seemed at the time to be telepathic and sense of theater was legend. Our vision was that just as the PC was revolutionizing the business market, we were going to do the same for scientists and engineers.

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Steve Blank

JUNE 25, 2009

Computer hardware companies were faced with their customers asking for low-cost (relatively) desktop computers they had no experience in building. Their engineering teams didn’t have the expertise using off-the-shelf microprocessors (back then “real” computer companies designed their own instruction sets and operating systems.)

Technology 138

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Steve Blank

OCTOBER 12, 2009

I concluded that my first job was to understand what Cray’s markets, customers and applications. When I learned that Cray users would be giving papers at the Society of Petroleum Engineering conference in Denver the next day, I got on a plane to listen and learn.

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Steve Blank

JUNE 3, 2009

Reducing Risk – Simulation versus Customer Development If you remember the first part of this discussion, startups face two types of risk; invention risk and/or customer/market risk. The Customer Development Process I teach and write about is designed to do just that.

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Steve Blank

JUNE 8, 2009

In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customer development would be useful. In contrast to simply executing your business plan, the Customer Development process is built on low-cost and continuous learning and iterating.

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Steve Blank

MAY 11, 2009

A month or two before the QuickTime public announcement in May, the SuperMac hardware engineers (who had a great relationship with the QuickTime team at Apple) started a “ skunk works ” project. So SuperMac engineering also developed video compression software, called Cinepak. The software was idiot proof.

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Steve Blank

JULY 20, 2009

Luckily while I was teaching classes at headquarters, Zilog’s field application engineers (the technical engineers working alongside our salesmen) would work side-by-side with our large customers as they designed their systems with our chips. The VP of Sales gave me a funny look and just moved on with the agenda. VP of Sales?

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Steve Blank

APRIL 9, 2009

Five Easy Pieces – The Marketing Mission After a few months of talking to customers , talking to our channel and working with sales we defined the marketing Mission (our job) was to: Help Sales deliver $25 million in sales with a 45% gross margin. Two paragraphs, Five bullets. It didn’t take more.

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Steve Blank

JUNE 29, 2009

Since there was very little documentation my time was split between the design engineers who built the system and the test and deployment team getting the system ready to go overseas. After I was done teaching each the day, I continued to write the operations manuals and work with the test engineers. (I Are You Single? Sign me up.

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Steve Blank

JULY 30, 2009

Unfortunately most startups learn this by going through the “Fire the first Sales VP&# drill: You start your company with a list of potential customers reading like a “who’s who&# of whatever vertical market you’re in (or the Fortune 1000 list.) Your board nods sagely at your target customer list.

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Steve Blank

APRIL 2, 2009

Objects in Our Mirror are Larger than they Appear Our first goal was to set up benchmarks to measure the performance of our own graphics boards on the real applications our customers used (Photoshop, Quark, Illustrator and PageMaker.) Then we were going to buy our competitors’ boards (think “secret shopper”) and compare them to ours.

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Steve Blank

MAY 15, 2009

Signs of Success One of the things you do right in a startup, is you move from one cheap and cramped building to another as you grow, with desks, cubicles and engineers piled cheek to jowl. Engineers were packed in cubicles or desks right on top of each other? Now every engineer can have their own office. A VERY nice office.

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Steve Blank

APRIL 6, 2009

If you are a practitioner of Customer Development, ESL was doing it before most us were born. The Army offered Fred Terman, the Dean of Engineering at Stanford, a $5M contract to build an electronics countermeasures lab. HP had an ethical culture, entrepreneurial spirit, and deep Stanford engineering department connections.

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Steve Blank

JULY 27, 2009

And I understood engineering since I interacted with them almost daily. I also knew our customers. And finally, I had a great working relationship with our engineers who designed the chips. I’ve built my company using the Customer Development Model from Day One. In reality it would be another 20 years.)

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Steve Blank

APRIL 27, 2009

—————- The next piece of the Secret History of Silicon Valley puzzle came together when Tom Byers , Tina Selig and Mark Leslie invited me to teach entrepreneurship in the Stanford Technology Ventures Program ( STVP ) in Stanford’s School of Engineering. No kidding.

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Steve Blank

AUGUST 17, 2009

Stanford had a Customer Development loop going on inside their own lab. The discoveries in tube and circuit research suggested new electronic intelligence and countermeasure techniques and systems; in turn the needs of the Applied Lab pushed tube and circuit development. The future of the valley was clear – microwaves.

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steveblank.com

JULY 8, 2011

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Steve Blank

MARCH 19, 2009

If you believed the opinions in the marketing department, the customers were in science, engineering, color desktop publishing, and a variety of applications with no single industry or application dominating the list. Within these applications how did our customers spend their day? The obvious one’s were who were they?

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Steve Blank

AUGUST 24, 2009

The quintessential California couple, they stood out in our crowd as the engineer (in his late 20′s, respected by his peers and the customer) had hair down to his shoulders, sharply contrasting with the military crewcuts of the customers and most of the other contractors.

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Steve Blank

OCTOBER 26, 2009

Communication between scientists, engineers and corporations were relatively open, and ideas flowed freely. At Stanford, Dean of Engineering Fred Terman wanted companies outside of the university to take Stanford’s prototype microwave tubes and electronic intelligence systems and build production volumes for the military.

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Steve Blank

OCTOBER 22, 2009

Getting Out of the Building Wasn’t Entertainment – Discovery and Validation Now that I was the master of the “facts” about customer needs in these specialized vertical markets , and with my team of vertical marketers , I thought I had achieved absolution and redemption. Context here.) The company failed.

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Steve Blank

OCTOBER 15, 2009

To understand our potential markets, we started by analyzing the marketing literature from Cray Research then crisscrossed the country talking to prospective customers – scientists and researchers in advanced corporate R&D centers and universities – to understand their needs. Their interest was easy to understand.

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Steve Blank

AUGUST 10, 2009

———————– In the 1950′s Stanford University’s Electronics Research Laboratory (ERL) continued to develop innovative microwave tubes for the U.S. This next product, the Traveling Wave Tube, would have a major impact on electronic intelligence. He sold the company to Teledyne in 1965.

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Steve Blank

AUGUST 27, 2009

This series of posts is a brief explanation of how we’ve evolved from Product Development to Customer Development to the Lean Startup. The Product Development Diagram Emerging early in the twentieth century, this product-centric model described a process that evolved in manufacturing industries.

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Steve Blank

APRIL 29, 2009

I am also a pilot, and computer engineer, and love to read stories about sigint and black aircraft programs. Every potential startup founder should think about their level of comfort operating in chaos and uncertainty. It may not be for you. Also, it would be nice to do something that helps this country (but not solely for that reason).

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Steve Blank

APRIL 7, 2009

From the king of customer development, Steve Blank: [.] Reply Harvey , on April 11, 2009 at 7:05 pm Said: Some of the best engineers I hired out of school were not 3.5+ And even not-so-new engineers. You just get successful. Sometimes they just drop out and do their own thing. No one has to tell them to do that.

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Steve Blank

AUGUST 3, 2009

Frederick Terman, Stanford’s Dean of Engineering, enlisted Stanford University as a major arms suppliers in this war. Stanford as a Center of Microwave and Electronics In 1946 after running the military’s secret 800 person Electronic Warfare Lab at Harvard, Fred Terman returned to Stanford as the dean of the engineering schoo l.

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Steve Blank

APRIL 16, 2009

Now we were faced with the fact that even though we were gaining market share daily, there was nothing coming out of Engineering. Instead of eight boards, Engineering was going to be able to deliver one new graphics board. One of the reasons I had joined the company was seeing these boards as hope for the future. What could we do?

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Steve Blank

APRIL 13, 2009

Before leaving California, the engineers gave me a course in this specialized receiver design. We were combining Stanford Engineering theory with ESL design engineers and implementing it with chips so new we were debugging the silicon as we were debugging the entire system. Taking concepts that had been only abstract Ph.D

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