Steve Blank

SEPTEMBER 3, 2009

This post describes how the traditional product development model distorts startup sales, marketing and business development. The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers. Here’s what the product development diagram looks like from a sales perspective.

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Steve Blank

APRIL 10, 2009

An example of a reversible decision could be adding a product feature, a new algorithm in the code, targeting a specific set of customers, etc. An irreversible decision is firing an employee, launching your product, a five-year lease for an expensive new building, etc. These are usually difficult or impossible to reverse.

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Steve Blank

MARCH 19, 2009

While I was consulting for them, I got a call from a recruiter for a company called SuperMac, which made add-on products for the Macintosh. They sold their product through the computer retail channel, something I knew nothing about. They sold to a set of customers I knew nothing about.

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Steve Blank

JUNE 25, 2009

Twenty eight years ago I was the bright, young, eager product marketing manager called out to the field to support sales by explaining the technical details of Convergent Technologies products to potential customers. So their management teams were insisting that they OEM (buy from someone else) these products.

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Steve Blank

DECEMBER 7, 2009

Customer Development We were starting Epiphany, my last company. I was out and about in Silicon Valley doing what I would now call Customer Discovery trying to understand how marketing departments in large corporations worked. Posted on December 7, 2009 by steveblank In my 21 years of startups, I had my ideas “stolen” twice.

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Steve Blank

SEPTEMBER 24, 2009

And while technically correct, and eventually the company ought to fire unprofitable customers, the result when done by impatient founders is most often less than optimal. While it is “just business,” many customers form emotional bonds sometimes with products, other times with the company itself. And they rarely come back.

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Steve Blank

SEPTEMBER 10, 2009

In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agile development. They never understood Market Type. Why does Market Type matter? End result?

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Steve Blank

AUGUST 13, 2009

The first few months of my startups were centered around building the founding team, prototyping the product and raising money. I’m convinced that starting a company without talking to customers is like throwing your time and money in the street (unless you’re already a domain expert). I was an idiot. Berkeley and at Stanford.

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Steve Blank

NOVEMBER 5, 2009

Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition.

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Steve Blank

FEBRUARY 23, 2009

I was between my 7th and 8th and final startup; licking my wounds from Rocket Science, the company I had cratered as my first and last attempt as a startup CEO. We’ve managed startups like this forever; there is no other way to manage them.” To Order Outside of the U.S. Now In Print! Steve Blanks 30 years of Silicon Valley startup advice.

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Steve Blank

JUNE 11, 2009

Passionate – is the company/product/customers the most important thing in your life? However, you will be dealing with almost daily change, (new customer feedback/insights from a Customer Development process and technical roadblocks ,) as the company searches for a repeatable and scalable business model.

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Steve Blank

OCTOBER 5, 2009

A Phone Call After I left MIPS Computers I was in New York tagging along with a friend (a computer architect whose products at Apple a decade later would change the shape of personal computing) who was consulting for a voice recognition startup. It would be the company where I actually earned the title.

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Steve Blank

APRIL 9, 2009

The other departments in marketing gave the same answers; the product-marketing department said their job was to write data sheets. To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires.

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Steve Blank

MAY 11, 2009

But here was a $499 product that could let everyone use video.) Even though we won’t make a ton of money, it will be an ambassador for the rest of our product family. People who aren’t current customers of our graphics boards will get to know our company and brand. If we’re smart we’ll cross-sell them one of our other products.

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Steve Blank

MAY 28, 2009

Markets with Customer/Market Risk are those where the unknown is whether customers will adopt the product. is whether there is a customer and market for the product as spec’d. In these markets it’s all about customer/market risk. Based on this insight, I updated my earlier diagram to look like this. (The

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Steve Blank

APRIL 2, 2009

Metrics – Mine is Bigger Than Yours The first thing SuperMac needed to do was to change how our potential color desktop publishing customers viewed our products versus our competitors’ products. Over the years marketers have found that using numbers to compare yourself to other products works well.

Silicon Valley 125

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Steve Blank

MARCH 25, 2009

Was SuperMac attempting to introduce radically new products and create a new market ? Was SuperMac attempting to introduce radically new products and create a new market ? Was the company attempting to be a low cost provider by introducing cheaper products to an existing market? No, not really.

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Steve Blank

JULY 30, 2009

As the (very junior) product marketing manager I got a call from our local salesman that someone at Apple wanted more technical information than just the spec sheets about our new (not yet shipping) chip. Market Type But most startups aren’t in existing markets. I cover this in the Four Steps to the Epiphany.)

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Steve Blank

JULY 27, 2009

I even had time to find a girlfriend who was a contractor to the company. .&# And since I saw our ads (but didn’t quite understand them,) I knew marketing was the group that designed them, somehow to get customers to think our products were better than Intel and Motorola’s. I also knew our customers.

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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.

Silicon Valley 267

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Steve Blank

MARCH 20, 2009

Our first question was, did the total number of customers that had already bought products from our competitors and us represent a saturated market or the tip of the iceberg? First I need to make sure what we really learned was information we could base a company strategy on. To Order Outside of the U.S. Now In Print!

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Steve Blank

APRIL 30, 2009

Customers went into the store either looking for the SuperMac product by name (if our demand creation activities had been effective) or went in unsure of which brand of board to buy. And the product that “talked to me&# , the loudest and most seductively, was the one that went home with me.

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Steve Blank

AUGUST 17, 2009

With the memories of WWII only five years old, and the Cold War now a shooting war in Korea, there was very little discussion (or dissension) about turning a university into a center for the production of military intelligence and electronic warfare systems. Stanford had a Customer Development loop going on inside their own lab.

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Steve Blank

NOVEMBER 30, 2009

Customer Development is all about gathering a list of what features customers want by talking to them, surveying them, or running “focus groups.” As the engineers were busy rearchitecting the original Stanford MIPS chip into a commercial product, one of my jobs was to find out what features customers wanted.

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Steve Blank

MAY 22, 2009

Send PDF versions of brochures and product sheets as soon as you get back to the office. Have enough dead-tree brochures and product sheets on hand before the show so you can snail-mail out the information after you emailed it. Everyone should be articulate and agile in describing and demoing the products.) What didn’t?

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Steve Blank

FEBRUARY 23, 2009

This product development diagram had become part of the DNA of Silicon Valley. Were startups failing because of product failures or was there some other failure mode? a customer before you try and build a business. Is there any way to predict success or failure?

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andrewchenblog.com

MARCH 10, 2010

Coupled with A/B testing, customer development, and thinking through business problems in a scientific, hypothesis-driven way, you end up with a powerful cocktail of techniques to build a modern startup in the most iterative way possible. The interesting part is when you get a couple months into your product cycle.

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Startup Lessons Learned

SEPTEMBER 30, 2008

If the CEO wants to completely change the product in order to serve a new customer segment, you need someone in the room who can digest the needs of the new (proposed) business, and lay out the costs of each possible approach. Labels: product development 15comments: mukund said. Have you worked with or for a great CTO?

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Steve Blank

JUNE 5, 2009

What’s the best way to tell them about our product?… These customer and market risks need to be translated into facts as soon as possible. Customer Development This strategy of starting on faith, and quickly turning them into facts is the core of the Customer Development process. … Ad infinitum.

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Steve Blank

AUGUST 20, 2009

Resegmentation means these startups are trying to lure some of the current or potential customers away from incumbents by either offering a lower cost product, or by offering features that appealed to a specific niche or subset of the existing users. Me – “Have you used Company x’s product? Do you know how they create demand?

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conversionxl.com

SEPTEMBER 10, 2013

It’s Not a Conversion Problem, It’s a Customer Development Problem. Not because they have a conversion problem but because they never really nail the product or how to market it. Not because they have a conversion problem but because they never really nail the product or how to market it. Conversion Research.

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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. However, for the Web 2.0

Vertical 133

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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

SEPTEMBER 28, 2009

Unintended Lessons « Steve Blank steveblank.com/2009/09/28/unintended-lessons – view page – cached + Customer Development Manifesto: The Path of Warriors and Winners (part 5) + Can You Trust Any VC’s Under 40? To Order Outside of the U.S. Now In Print! Steve Blanks 30 years of Silicon Valley startup advice.

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Steve Blank

APRIL 29, 2009

Besides it being harder to get funding, it seems like this would be a good time to get cheap labor, rent, and product. Every potential startup founder should think about their level of comfort operating in chaos and uncertainty. It may not be for you. What are your thoughts about doing a startup in a down economy? Now In Print!

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Steve Blank

FEBRUARY 23, 2009

Eighty some pages later I realized that a) I had some great war stories as a good marketeer and failed CEO, b) I’d have to pay my wife and kids to read them, c) the three of them were probably the entire total available market, and d) when I looked at what I had done and what other entrepreneurs had done at their startups, that there was a pattern.

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Steve Blank

MAY 21, 2009

Have a loud product demo; give away pieces of candy; hire a masseuse and offer free back rubs. But it has to come with one of your people to talk about the product. If you tell me we can’t find any established exhibitor whose products or services complement ours to let us in, I question why you are going to this show.

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