Steve Blank

AUGUST 31, 2009

Yet startup companies have traditionally used this model to manage and pace not only engineering but also non-engineering activities. The flaw in this thinking is that “first customer ship&# is simply the date when engineering thinks they “finished” the 1.0 release of the product.

Customer Development 241

Customer Development Developer Customer Silicon Valley 241

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.

Video 168

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Steve Blank

APRIL 9, 2009

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. And our Director of Technical Marketing was superb at understanding customer needs and communicating them to engineering.

Silicon Valley 263

Silicon Valley Technical Review RSS PR 263

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. would look in each of the verticals. For example, How does sales differ from one market to another? Others you need to know when you execute the plan.

Vertical 123

Vertical Silicon Valley RSS Marketing 123

Steve Blank

JUNE 3, 2009

Simulation to Reduce Invention Risk If you’re in a vertical where “invention risk” is dominant, then you want to do everything you can to manage and reduce those risks. When I wrote the Four Steps to the Epiphany , the Customer Development text, I hadn’t yet thought about what vertical markets it might be appropriate for.)

Vertical 130

Vertical Silicon Valley Marketing RSS 130

Steve Blank

APRIL 2, 2009

Since no benchmarks existed, we enlisted our engineering department in a serious software development effort and wrote our own. We listed the editors, writers, what they had previously had written, deadlines, what the competitive products were, how our benchmarks stacked up, what “upgrades” our boards needed from engineering to win, etc.

Silicon Valley 124

Silicon Valley Technical Review RSS Software Review 124

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. Now In Print!

Silicon Valley 133

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Steve Blank

APRIL 6, 2009

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. The “customers’” contracts funded the company. Seven years later in 1971 ESL went public.

Silicon Valley 176

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Steve Blank

JULY 27, 2009

And I understood engineering since I interacted with them almost daily. And finally, I had a great working relationship with our engineers who designed the chips. I even had time to find a girlfriend who was a contractor to the company. In reality it would be another 20 years.) I also knew our customers.

Silicon Valley 120

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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.

Silicon Valley 185

Silicon Valley Technical Review Europe Germany 185

Steve Blank

AUGUST 17, 2009

Some students who were getting their engineering graduate degrees wrote masters and PhD thesis that were classified. Four years later Ayer and another Granger engineer would leave Granger and found one of the preeminent electronic warfare and ELINT companies: Applied Technologies. The future of the valley was clear – microwaves.

Silicon Valley 144

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Steve Blank

NOVEMBER 12, 2009

Brendan McManus said: “Lessons Learned” – A New Type of Venture Capital Pitch [link] #startup #advice [.] Lessons Learned” – A New Type of Venture Capital Pitch « Steve Blank (tags: presentations presuation vc startup) [.] Lessons Learned” – A New Type of Venture Capital Pitch [.]

Venture Capital 216

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Steve Blank

SEPTEMBER 3, 2009

The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers. The plan calls for selling in volume the day Engineering is finished building the product. While the product is being engineered, Marketing begins to create web sites, corporate presentations and sales materials.

Customer Development 220

Customer Development Developer Customer Silicon Valley 220

Steve Blank

APRIL 29, 2009

I am also a pilot, and computer engineer, and love to read stories about sigint and black aircraft programs. Besides it being harder to get funding, it seems like this would be a good time to get cheap labor, rent, and product. Also, it would be nice to do something that helps this country (but not solely for that reason). Now In Print!

Silicon Valley 173

Silicon Valley Iraq RSS Vietnam 173

Steve Blank

AUGUST 27, 2009

The startup develops its first positioning statement and uses this to explain the company and its benefits to venture capitalists. Combined with product costs, an engineering budget, and schedules, this results in a spreadsheet that faintly resembles the first financial plan in the company’s business plan.

Silicon Valley 263

Silicon Valley Product Startup Product Development 263

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Marketing demand creation programs (Search Engine Marketing, Public Relations, Advertising, Lead Generation, Trade Shows, etc.)

Lean 250

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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.

Silicon Valley 157

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Steve Blank

APRIL 2, 2009

We decided to work with our engineering department to create the Potreo benchmarks because we really wanted to see how our boards performed with the four applications customers told us that they used; Photoshop, Quark, Illustrator and PageMaker. These were applications we had never seen or ran before when the boards were designed.

Silicon Valley 124

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Steve Blank

SEPTEMBER 17, 2009

Market Type Integral to the Customer Development model is the notion that Market Type choices affect the way the company will deploy its sales, marketing and financial resources. To Order Outside of the U.S. Now In Print! Steve Blanks 30 years of Silicon Valley startup advice.

Customer Development 246

Customer Development Developer Customer Silicon Valley 246

www.informationarbitrage.com

FEBRUARY 24, 2010

And if this business partnership doesn't work out, the CTO / Founder, the engine of value for the company, is stuck in a bad, bad place. And if this business partnership doesn't work out, the CTO / Founder, the engine of value for the company, is stuck in a bad, bad place. Click to email him.

CTO Hire 40

CTO Hire Founder Cap Table Vesting 40

Steve Blank

MAY 21, 2009

If you think you are going to offend your customers or embarrass your engineering organization, get out of the marketing department. Then shout the messages out (virtually) at the top of your lungs. Visually, demo’s, wild colors, etc. IBM doesn’t have to shout to get noticed, but you do. To Order Outside of the U.S. Now In Print!

Silicon Valley 185

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Steve Blank

APRIL 20, 2009

By the late 1930′s when HP started, a small group (measured in hundreds) of engineers who made radio tubes were building the valleys’ ecosystem for electronics manufacturing, product engineering and technology management. And these microwave engineers were working at startups – not large companies.

Silicon Valley 279

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Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. I remember thinking, “What a disappointment one of the smartest engineers I know and he is going to waste his time making games.”

Silicon Valley 120

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Steve Blank

MARCH 28, 2009

Now we have ditched the cold war triad in the 21st century since the Soviet Union became Russia again and discovered its own style of capitalism.) Think of a plane the length of a 767 airliner (but with 30 foot longer wings and 8 engines rather than 2) whose only mission was to FedEx 70,000 pounds of nuclear weapons to the Soviet Union.

Silicon Valley 202

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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?

Silicon Valley 181

Silicon Valley Chad RSS San Francisco 181

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.

Silicon Valley 212

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Steve Blank

NOVEMBER 30, 2009

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. On the other hand, the Motorola 68000 microprocessor (used in the Sun and Apollo engineering workstations) and the IBM 360/370 mainframes were big-endian. What a great idea.

Customer Development 280

Customer Development Developer Customer Silicon Valley 280

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. The obvious one’s were who were they? What did they do that they needed an expensive color graphics card? Now In Print!

Silicon Valley 192

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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.

Agile 251

Agile Silicon Valley RSS California 251

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. To Order Outside of the U.S. Now In Print!

Silicon Valley 191

Silicon Valley PR Technical Review RSS 191

Steve Blank

AUGUST 10, 2009

Stanford’s Dean of Engineering, Fred Terman, encouraged scientists and engineers to set up companies to build these microwave tubes for the military. This next product, the Traveling Wave Tube, would have a major impact on electronic intelligence. He sold the company to Teledyne in 1965.

Silicon Valley 158

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Steve Blank

APRIL 7, 2009

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. I’m printing and framing this one. GPA or better. HR would rarely even circulate less than a 3.2 and the cutoff was 3.0. Google requires transcripts for new grads. Now In Print!

Silicon Valley 329

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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

Silicon Valley 273

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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.

Silicon Valley 163

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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?

Silicon Valley 136

Silicon Valley Product RSS Engineer 136

Steve Blank

OCTOBER 15, 2009

Simulation applications After six months, we hypothesized that our most likely customers were scientists and engineers who used one of five applications: computational fluid dynamics, finite element analysis, computational chemistry and seismic data processing and reservoir simulation. Their interest was easy to understand.

Silicon Valley 138

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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.

Silicon Valley 178

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