Steve Blank

NOVEMBER 23, 2009

The Times Square Strategy discussion I had with Eric Ries , was still top of mind, so instead of my standard Customer Development lecture , I offered my thoughts on: the origin of Customer Development, where we are today, and where does Customer Development go, and how you can help get it there.

Customer Development 227

Customer Development Developer Silicon Valley Customer 227

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.

Customer Development 228

Customer Development Developer Silicon Valley Customer 228

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.

Customer Development 253

Customer Development Developer Customer Silicon Valley 253

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.

Silicon Valley 165

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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?

Customer Development 220

Customer Development Developer Customer Silicon Valley 220

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.

Vertical 137

Vertical Silicon Valley Marketing RSS 137

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.

Silicon Valley 307

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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.

Vertical 125

Vertical Silicon Valley RSS Marketing 125

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.

Customer Development 267

Customer Development Developer Customer Silicon Valley 267

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.

Customer 216

Customer Silicon Valley RSS California 216

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.

Technology 143

Technology Silicon Valley Fractional VPE Part-Time VPE 143

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.

Cofounder 229

Cofounder Founder Silicon Valley Technical Cofounder 229

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). Fundraising isn’t the product.

Silicon Valley 204

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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.” Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.

Silicon Valley 131

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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. making use of non disclosure agreement is both expensive and counter productive.

Silicon Valley 253

Silicon Valley Non-disclosure Agreement NDA Startup 253

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. Your board nods sagely at your target customer list. Market Type But most startups aren’t in existing markets.

Silicon Valley 143

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Steve Blank

OCTOBER 31, 2014

Creating a vertically oriented regional ecosystem is a pretty amazing accomplishment for any country or industry. Further refinement of Product/Market fit could be done locally by using Value Proposition Design. while building their products in China. Test product/market fit in the U.S. This meant they would need U.S.

Global 335

Global Australia Silicon Valley China 335

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.

North Carolina 131

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Steve Blank

MARCH 25, 2009

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? Was the company attempting to introduce faster and better products to an existing market? No, not really.

Silicon Valley 157

Silicon Valley Marketing RSS California 157

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.

Silicon Valley 269

Silicon Valley Technical Review RSS PR 269

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 127

Silicon Valley Technical Review RSS Software Review 127

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 269

Silicon Valley Product Startup Product Development 269

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. Reply Best books for the lean product managers — Justin Gibbs , on April 28, 2009 at 2:44 pm Said: [.]

Product Development 159

Product Development Developer Silicon Valley Product 159

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.

Customer Development 284

Customer Development Developer Customer Silicon Valley 284

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.)

Silicon Valley 136

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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. Blog at WordPress.com.

Silicon Valley 147

Silicon Valley Customer RSS Philippines 147

Steve Blank

JULY 27, 2009

One day I heard there was an opening in the marketing department for a product marketing manager for the Z-8000 peripheral chips. I looked at the job spec and under “candidate requirements&# it listed everything I didn’t have: MBA, 5-10 years product marketing experience, blah, blah. I also knew our customers.

Silicon Valley 120

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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.

Sales 120

Sales Silicon Valley RSS Las Vegas 120

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.

Silicon Valley 155

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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.

Silicon Valley 234

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Startup Lessons Learned

AUGUST 24, 2009

Customers will get to consume the content they want, and support the producers of that content directly, rather than having to rely exclusively on intermediaries. The key tools of this new marketing are: targeting, filtering, and customer insight. There are too many products clamoring for attention. Is that a lot? Is that good?

San Francisco 113

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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?

Silicon Valley 206

Silicon Valley Startup RSS Customer Development 206

Steve Blank

JULY 9, 2009

Unfortunately, while I had gone through phases of video game addiction in my life, in no way could I be described as even a “moderate hard-core gamer,” which ruled me out as a domain expert. So I got out out of the building to meet and understand our customers and distribution partners. I was in a very, very different business.

Silicon Valley 155

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Steve Blank

APRIL 22, 2009

He had just filmed the second of a series of videos called, Speaking to the Big Dogs: How mid-level managers can communicate effectively with C-level executives (CEO, VP’s, General Managers, etc.) And that he might want to think about aligning all his video and Internet products under that name. Customer Development.)

Silicon Valley 201

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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? Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.

North Carolina 160

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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.

Redemption 132

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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? Blog at WordPress.com.

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