Entrepreneurship as a Science – The Business Model/Customer Development Stack

Steve Blank

Over the last 50 years engineers have moved from building computers out of individual transistors to building with prepackaged logic gates. It’s the combination of Business Model Design and Customer Development. Business Model Design Meets Customer Development.

Driving Corporate Innovation: Design Thinking vs. Customer Development

Steve Blank

Two methods, Design Thinking and Customer Development (the core of the Lean Startup) provide the tactical day-to-day process of how to turn ideas into products. . Customer Development versus Design Thinking.

Customer Development is Not a Focus Group

Steve Blank

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. 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.

Customer Development Manifesto: The Path of Warriors and Winners.

Steve Blank

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 Biases

Market by Numbers

I haven’t weighed in on Customer Development thoughts for several hours, so it’s about time. Interesting series of tweets in the last several days got me thinking about the biases we bring to Lean Startup Customer Development practices.

The Customer Development Manifesto: Reasons for the Revolution.

Steve Blank

This post describes how the traditional product development model distorts startup sales, marketing and business development. In the next few posts that follow, I’ll describe how thinking of a solution to this model’s failures led to the Customer Development Model – that offers a new way to approach startup sales and marketing activities. The meaning of alpha test , beta test, and first customer ship are pretty obvious to most engineers.

The Innovation Stack: How to make innovation programs deliver more than coffee cups

Steve Blank

From the point of view of someone managing an engineering, manufacturing or operations organization, new, unplanned and unscheduled innovations are a distraction and a drag on existing resources. Customer Development

Solving the Innovator’s Dilemma – Customer Development in a Big Company

Steve Blank

At times I’ll do what I consider an extension of teaching; a two-day Customer Discovery/Validation intensive session with a large corporation serious about Customer Development at my ranch on the California Coast. We spent two days of analyzing and exploring their customer discovery visits just completed across South America, Africa and Asia. We used what they learned to plan their next steps for additional Discovery, and ultimately Customer Validation.

Lessons Learned: Customer Development Engineering

Startup Lessons Learned

Lessons Learned by Eric Ries Sunday, September 7, 2008 Customer Development Engineering Yesterday, I had the opportunity to guest lecture again in Steve Blank s entrepreneurship class at the Berkeley-Columbia executive MBA program. In addition to presenting the IMVU case, we tried for the first time to do an overview of a software engineering methodology that integrates practices from agile software development with Steves method of Customer Development.

The Entrepreneur's Guide to Customer Development

Startup Lessons Learned

I believe it is the best introduction to Customer Development you can buy. As all of you know, Steve Blank is the progenitor of Customer Development and author of The Four Steps to the Epiphany. Here’s hoping they soon tackle Customer Validation.

Engineering a Regional Tech Cluster-part 3 of 3 of Bigger in Bend

Steve Blank

Dino Vendetti a VC at Bay Partners, moved up to Bend, Oregon on a mission to engineer Bend into a regional technology cluster. Over the years Dino and I brainstormed about how Lean entrepreneurship would affect regional development. Part 3: Engineering a Regional Tech Cluster.

The Customer Development Manifesto: Reasons for the Revolution.

Steve Blank

After 20 years of working in startups, I decided to take a step back and look at the product development model I had been following and see why it usually failed to provide useful guidance in activities outside the building – sales, marketing and business development. Every startup has some methodology for product development, launch and life-cycle management. So what’s wrong the product development model? Product Development Diagram 1.

Lessons Learned: What is customer development?

Startup Lessons Learned

Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customer development? But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." They almost always fail for lack of customers.

Don’t let process distract you from finding the strategy

Steve Blank

The goal of the class is to expose students to the basics of the Lean Methodology – Business Model Design , Customer Development and Agile Engineering. The teams come back into the class and present what they found, and then they get out and talk to more customers.

Customer Development Gut Checks

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? Services Marketing Help Downloads Contact Log In Customer Development Gut Checks By brantcooper , April 28, 2009 10:35 am Through the evolution of their start-ups, entrepreneurs will face many inflection points, at which decisions made or not made will determine their future.

Customer Development Gut Checks

Market by Numbers

Market By Numbers on Twitter | Entries RSS | Comments RSS Market By Numbers High-Tech Marketing and Customer Development Home What is Customer Development? Services Marketing Help Downloads Contact Log In Customer Development Gut Checks By brantcooper , April 28, 2009 10:35 am Through the evolution of their start-ups, entrepreneurs will face many inflection points, at which decisions made or not made will determine their future.

When Customers Make You Smarter

Steve Blank

We talk a lot about Customer Development, but there’s nothing like seeing it in action to understand its power. But the big payoff came when their discussions with medical device customers revealed an entirely new way to think about pricing —potentially tripling their revenue.

When Hell Froze Over – in the Harvard Business Review

Steve Blank

It was not only my secret weapon in thinking about new startup strategies, it also gave me a view of the management issues my customers were dealing with. “I refuse to join any club that would have me as a member.” ” Groucho Marx.

Everything You Ever Wanted to Know about Marketing Communications

Steve Blank

I was having coffee with the CEO of a new startup, listening to her puzzle through how to communicate to potential customers. I reminded her that all the Lean tools she learned in class–Customer Discovery, business model and value proposition canvases– contained her answer.

It’s Time to Play Moneyball: The Investment Readiness Level

Steve Blank

Teams use the Lean Startup toolkit: the Business Model Canvas + Customer Development process + Agile Engineering. LaunchPad Central software is used to track the business model canvas and customer discovery progress of each team.

We Have A Moral Obligation

Steve Blank

6:22 What’s Customer Development. 7:11 Agile Engineering – Eric Ries. 41:39 Moral Obligations Filed under: Corporate Innovation , Customer Development , Hacking For Defense , Hacking for Diplomacy , Lean LaunchPad , NSF (National Science Foundation) , Teaching. Corporate Innovation Customer Development Hacking For Defense Hacking for Diplomacy Lean LaunchPad NSF (National Science Foundation) Teaching

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

For the first 75 years of the 20 th century, when capital for new ventures was scarce, the smartest engineering talent went to corporate R&D labs. They’re better than large companies at identifying customer needs/problems and finding product/market fit by pivoting rapidly.

When Hell Froze Over – in the Harvard Business Review

Steve Blank

It was not only my secret weapon in thinking about new startup strategies, it also gave me a view of the management issues my customers were dealing with. For decades this revered business magazine described management techniques that were developed in and were for large corporations – offering more efficient and creative ways to execute existing business models. “I refuse to join any club that would have me as a member.” ” Groucho Marx.

The Business Model Canvas Gets Even Better – Value Proposition Design

Steve Blank

It has three parts: a business model canvas to frame hypotheses, customer development to get out of the building to test those hypotheses and agile engineering to build minimum viable products. Teaches you how to use Customer Development to test it.

Hacking for Defense @ Stanford 2017 – Lessons Learned Presentations

Steve Blank

It combines the same Lean Startup Methodology used by the National Science Foundation to commercialize science, with the rapid problem sourcing and curation methodology developed on the battlefields in Afghanistan and Iraq by Colonel Pete Newell and the US Army’s Rapid Equipping Force.

Video 153

The Mission Model Canvas – An Adapted Business Model Canvas for Mission-Driven Organizations

Steve Blank

As a formal method, the Lean Startup consists of three parts: The Business Model Canvas – to frame hypotheses, Customer Development – to test those hypotheses in front of customers, and Agile Engineering – to build Minimum Viable Products to maximize learning.

Entrepreneurs are Everywhere Show No. 43: Dakin Sloss and Ajeet Singh

Steve Blank

For example, customers usually have a good intuitive understanding of the problem they have. At Aster Data Systems, Ajeet and his team ran into challenges trying to transition their product to mainstream customers: We had a lot of success working with large web companies. Companies like MySpace and LinkedIn became some of our biggest customers. We were mostly selling our product to engineers. Filed under: Customer Development. Customer Development

Entrepreneurs are Everywhere Show No. 43: Dakin Sloss and Ajeet Singh

Steve Blank

For example, customers usually have a good intuitive understanding of the problem they have. At Aster Data Systems, Ajeet and his team ran into challenges trying to transition their product to mainstream customers: We had a lot of success working with large web companies. Companies like MySpace and LinkedIn became some of our biggest customers. We were mostly selling our product to engineers. Filed under: Customer Development. Customer Development

Entrepreneurs are Everywhere Show No. 41: Chris Schroeder and Andy Cunningham

Steve Blank

First of all, most of your customers don’t know or care who any of these venture firms are. For customers t he venture firm brands don’t matter. Andy continued to work with Steve for several years and has developed marketing, branding and communication strategies for game-changing technologies and companies ever since. First, there are product-oriented companies, like Microsoft or Oracle; Second, there are customer-oriented companies like Zappos or Airbnb; and.

Entrepreneurs are Everywhere Show No. 41: Chris Schroeder and Andy Cunningham

Steve Blank

First of all, most of your customers don’t know or care who any of these venture firms are. For customers t he venture firm brands don’t matter. Andy continued to work with Steve for several years and has developed marketing, branding and communication strategies for game-changing technologies and companies ever since. First, there are product-oriented companies, like Microsoft or Oracle; Second, there are customer-oriented companies like Zappos or Airbnb; and.

Entrepreneurs are Everywhere Show No. 42: Tina Fitch and Alice Brooks

Steve Blank

The more that people pay you, the more influence customers feel they should have, but they don’t necessarily know what they want. Customers will try to be polite and tell you want you want to hear. Doing customer discovery isn’t the same as running a focus group. And customers don’t always know the best way to solve a problem or fill a need they have. Alice Brooks , co-founder of Roominate , toys meant to promote girls’ interest in science, tech and engineering.

Entrepreneurs are Everywhere Show No. 42: Tina Fitch and Alice Brooks

Steve Blank

The more that people pay you, the more influence customers feel they should have, but they don’t necessarily know what they want. Customers will try to be polite and tell you want you want to hear. Doing customer discovery isn’t the same as running a focus group. And customers don’t always know the best way to solve a problem or fill a need they have. Alice Brooks , co-founder of Roominate , toys meant to promote girls’ interest in science, tech and engineering.

Smart Start for your Startup

VC Cafe

Andreas Klinger Customer Development Earlyvangelists Lean Analytics Mom Test Product-market-fit Wantapreneurs 4 steps to the epiphany contagious customer development earlyvangelists landing pages Mom test Product market fit Rob Fitzpatrick SEM seo spent the power of habbit The Referral Engine

SEM 72

Entrepreneurs are Everywhere Show No. 44: Jacqueline Ros and Christina Stembel

Steve Blank

You have to be 1000% dedicated to the mission and the problem you’re trying to solve and always be customer focused, because it is a long ride. Then she went to work on the technology: I hired some contract engineers who used to work on the Life Alert product to build us a really dinky prototype that you could plug into the wall. Filed under: Customer Development. Customer Development

Entrepreneurs are Everywhere Show No. 44: Jacqueline Ros and Christina Stembel

Steve Blank

You have to be 1000% dedicated to the mission and the problem you’re trying to solve and always be customer focused, because it is a long ride. Then she went to work on the technology: I hired some contract engineers who used to work on the Life Alert product to build us a really dinky prototype that you could plug into the wall. Filed under: Customer Development. Customer Development

Lean Innovation Management – Making Corporate Innovation Work

Steve Blank

Gore , I’ve found two corporate strategy tools developed by other smart people helpful in bridging Lean Startups with Corporate Innovation. Here the company executes a known business model (known customers, product features, competitors, pricing, distribution channel, supply chain, etc.)

Lean 201

Why Startups are Agile and Opportunistic – Pivoting the Business Model

Steve Blank

Each sale requires us to handhold the customer and takes way too long to close. Whether they’re using a formal process to search for a business model like Customer Development or just trial and error, startup founders are intuitively goal-seeking to optimize their business model.

Agile 200

Why Build, Measure, Learn – isn’t just throwing things against the wall to see if they work

Steve Blank

Build a product, get it into the real world, measure customers’ reactions and behaviors, learn from this, and use what you’ve learned to build something better. Repeat, learning whether to iterate, pivot or restart until you have something that customers love.

How To Find the Right Co-Founders?

Steve Blank

I was having breakfast with Radhika, an ex-grad student of mine who wanted to share her Customer Discovery progress for her consumer hardware startup. And over time every venture capitalist develops their own gut feel for what makes up a great team in their industry.

Hacking for Defense @ Stanford – Making the World a Safer Place

Steve Blank

Hacking for Defense is a new course at Stanford’s Engineering School in the Spring of 2016. As they learn, they’ll iterate and pivot on these hypotheses through customer discovery and build minimal viable prototypes (MVPs). Customer Development Science and Industrial Policy Teaching