Lean Startup

1. Lean Startup Minder Chen, Ph.D. Professor of MIS Martin V. Smith School of Business and Economics California State University Channel Islands Minder.chen@csuci.edu

2. The Startup Owner’s Manual Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM • A startup is a temporary organization designed to search for a repeatable and scalable business model (under extreme uncertainty). - Steve Blank, The Startup Owner’s Manual

3. Resources • http://theleanstartup.com/ • http://wiki.mbalib.com/zh-tw/精益创业 • http://en.wikipedia.org/wiki/Lean_startup • http://steveblank.com/ • http://steveblank.com/2012/11/27/open-source-entrepreneurship/ • http://www.slideshare.net/sblank/lean-launchpad-educators-handbook-sept-2013 • Video: Steve Blank on entrepreneurship 1, 2, 3, 4 and 5 • Video: Steve Blank, the start-up owners manual • Slides: Steve Blank, the nine deadly sins of start-ups • Paper: Steve Blank, the nine deadly sins of start-ups • http://theleanstartup.com/ • Video: Lean Start-up (Eric Ries) • Slides: Principles of the Lean Start-up (Eric Ries) • Paper: Lean Start-up Methodology (Eric Ries)

4. 10 Top Ten Mistakes of Entrepreneurs Guy Kawasaki, The Top 10 Mistakes of Entrepreneurs https://www.youtube.com/watch?v=HHjgK6p4nrw • Multiplying big numbers by 1percent • Scaling too soon • Partnering • Pitching instead of prototyping • Using too many slides and too small a font • Doing things serially • Believing 51% = control • Believing patents =defensibility • Hiring in your own image • Befriending your VCs & Thinking VCs can add value

5. Business Plan 一、基本資料（摘要） 二、經營團隊 三、公司定位及願景公司定位指的是在市場現狀下，公司產品（服務）的競爭優勢、利基點及目標顧客在哪裡？公司經營團隊之特色為何？至於公司願景，則包括了創業團隊對公司核心價值之認同、對公司未來中長期發展之設定等等。 四、經營模式：這部分的主要意義是介紹公司產品（服務），並且分析該產品在市場上的競爭現況。一般來說，經營模式可分三部分撰寫，首先是核心技術與競爭優勢，其次是產品的市場價值與目標客戶需求，第三是營運模式的特色與競爭優勢。 http://sme.moeasmea.gov.tw/SME/main/1start/start02_3.php

6. Business Plan 五、市場與行銷：除了公司本身的產品特色外，公司的產業環境及競爭現況也是必須清楚瞭解的。由於市場環境涵蓋範圍相當大，當中也潛伏不少直接或間接的競爭對手。而在企管理論中，「SWOT」分析、市場週期分析、行銷「4P」理論就是市場行銷分析時最常使用，也最有效的工具之一。所謂的「SWOT」指的是公司的「優勢（S, Strength）劣勢（W, Weakness）機會（O, Opportunity）及威脅（T, Treat）」；而市場週期則是觀察該產品或服務是屬於「成長期」、「成熟期」還是「衰退期」；至於行銷常用的「4P」，則是討論包括「產品（Product）」、「價格（Price）」、「促銷方式（Promotion）」及「通路（Place）」。 六、財務管理： 七、其他（附件）：

7. One-Page Business Plan Customer Problem Your Solution Business Model (how you make money) Target Market (who is your customer and how many of them are there) Competitive Advantage Management Team Financial Summary Funding RequiredRead more: http://articles.bplans.com/how-to-write-a-one-page-business-plan/#ixzz3LOCGYYxj

8. Disciplined Entrepreneurship Bill Aulet, Disciplined Entrepreneurship: 24 Steps to a Successful Startup, Wiley, 2013. 6 Themes

9. Source: http://businessmodelgeneration.com/canvas Video

10. Osterwalder’s Business Model - Insight value proposition key activities customer relationships key partners customer segments cost structure revenue streams key resources (c)2010 K+S Ranch Consulting Inc. www.steveblank.com channels images by JAM

11. What How Who Cash Flow Source: Alexander Osterwalder & Yves Pigneur, Business Model Generation (Preview version), 2009.

12. The Use of the Business Model Canvas Your Business Model • Describe • Discuss • Design • Challenge • Improve • Innovate • Invent • Pivot • Choose

13. Reverse Engineering Facebook’s Business Model with Ballpark Figures http://www.businessmodelalchemist.com/

14. Questioning Business Model Components

15. A Starting Point of Innovation A customer friction is a (re)discovered of relevant and often unmet needs in a recognizable situation from a target group. • Adapted form http://www.innovationexcellence.com/blog/2011/07/08/solve-customer-frictions/

16. Customer Value Canvas http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf http://www.franciscopalao.com/english/value-proposition-canvas-get-to-know-your-customers-and-improve-your-value-proposition/

17. Lean Canvas

18. Validate Your Business Model No startup business plan survived first contact with customers. “Get out of the building approach” – It is not a business plan. Most startups lack a structured process for testing their business model hypotheses.

19. 4. TAM: Total Addressable Market 12. DMU: Decision Making Unit (for purchase our products) 17. LTC: Life Time Value 19. COCA: Costs of Customer Acquisition 22. MVBP: Minimum Viable Business Product

20. TAM http://aiti.mit.edu/media/programs/india-bms-summer-2013/materials/step_4_calculate_the_tam_---trepreneurship_101.pdf

21. Marketing Sizing: TAM, SAM, and TM http://en.wikipedia.org/wiki/Total_addressable_market Total Addressable/Available Market

23. Three Attributes of User Experiences Experience, Expectancy, Envy Excitement, Enjoyment, Enforcement Entertainment, Esthetic, Escape, Education

24. Product Experience

25. 太肯運動科技 【店家資料】太肯運動科技 官網 https://www.titan-tech.com.tw/創業資金 初期投入150萬元(為開發產品，2012年投入300萬元、2013年再投入600萬元)去年營收 1800萬元(獲利再投入研發、行銷，年度盈餘剩50萬元)

26. 太肯的機能運動襪 許景泰 1800 (link) • 年賣1800二千萬 運動襪 跑出商機 • https://www.titan-tech.com.tw/static/aboutus • 擁有亞洲頂尖研發團隊之人員共同開發 • 臺灣師範大學 運動科學研究所 • 國際生物力學學會 • 台灣運動科技發展協會 Source: http://www.appledaily.com.tw/appledaily/article/finance/20140324/35720083/

27. Biomechanics生物力 https://www.titan-tech.com.tw/truestory/research3 Video: https://www.youtube.com/watch?v=ndEnngIOxCI 「就是一種希望“活用生物力學，創新運動科技”的執著，襪子是腳與鞋的唯一介面，全世界那麼多的製鞋大廠不惜耗費鉅資研發鞋類，但卻很少有人重視襪子！」-相子元教授

28. 他山之石可以攻錯 Source: https://www.titan-tech.com.tw/truestory/research3 Video: https://www.youtube.com/watch?v=ndEnngIOxCI 為了研發出最適合國人走路、運動穿的專業襪子，他不惜在短短不到三年的時間，飛往世界各國，砸下台幣20多萬，買了將近300雙的襪子，還不包括旅費在內！ 「所有能買的"機能性"襪子，我幾乎都買了…..最貴的，一雙就要2000多塊台幣…」相子元教授收藏的300雙襪子，遍佈五大洲，除了日本、韓國、美國、加拿大、紐西蘭、澳洲和歐洲各國，包括德國、擁有最好的織襪機台的義大利等，甚至遠到南非，他也去了一趟。

29. 設計 Source:Link

30. Pressure https://www.youtube.com/watch?v=dldpSlkPLew https://www.titan-tech.com.tw/sport_socks/low_arch_pro_basketball_socks

31. 電子商務和服務 這幾年台灣電子商務領域的成功創業案例，如果仔細推算，全部都經營自有品牌、而且有自己的官網。 從作部落格口碑行銷廣告的達摩媒體，到作電子商務價格數據平台的紅門互動，再到專業運動襪品牌太肯科技，許景泰七年期間創辦三家公司，單從產品看彼此相關性不高，不過熟悉網路產業的明眼人一看就知道，這樣的創業路徑，全都圍繞著電子商務的核心，一層一層往上作。 在網路上，你基底要做厚，這也就是服務成本。一開始就將服務做到精細，把一千個會員做好，他就會跟別人講，幫你宣傳。

32. Not Seeing the Opportunities • Cannot see at its nascent stage • Don’t take it seriously once seen • Don’t understand when it has become successful • Wait until it is too late 視而不見見而不屑察而不懂行已不及 先見之明人棄我取摸透產業先人一著

33. Learning and Assumptions Testing Big Company Start-up

34. Hypotheses Testing and Insight Business Model Hypotheses Facts

35. Waterfall / Product ManagementExecution on Two “Knowns” More startups fail from a lack of customers than from a failure of product development Requirements Product Features: known Design Implementation Verification Customer Problem: known Maintenance Source: Eric Rieshttp://startuplessonslearned.blogspot.com

36. The Customer Development Process More startups fail from a lack of customers than from a failure of product development Try many times before you get it right. It is OK to fail so plan to learn from it. Only move to the next stage when you learn enough and reach the “escape velocity” http://www.ctinnovations.com/images/resources/Startup%20Owners%20Manual%20-%20BlankDorf.pdf

37. BioIQ.Com Case Study

38. What Is Pivot? • Pivot: A change to business model component based on customer feedbacks. A pivot is not a failure. • Pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, engine of growth, etc. • Eric Ries, The Lean Startup, 2013. • Pivots are vision driven.

40. Steve Blank, “Why the Lean Start-Up Changes Everything,” HBR.

41. Learning and Assumptions Testing Start-Up: Search Large Company: Execute

42. MVP In product development, the Minimum Viable Product (MVP) is a strategy used for fast and quantitative market testing of a product or product features. It is an iterative process of idea generation, prototyping, presentation, data collection, analysis and learning.

43. An MVP Example Source: http://michaelrwolfe.com/2013/10/19/why-is-dropbox-more-popular-than-other-programs-with-similar-functionality/ Why is Dropbox more popular than other programs with similar functionality? • Well, let’s take a step back and think about the sync problem and what the ideal solution for it would do: • There would be a folder. • You’d put your stuff in it. • It would sync.

46. Lessons Learning http://steveblank.com/2012/03/05/search-versus-execute/ The search for the business model is the front end of the startup process The goal is to find a repeatable/scalable model, and then execute Customer and Agile Development are the processes to search and build the model Execution requires operating plans and financial forecasts Product management/development is the process for executing the model This is true in the smallest startup or largest company

47. From Startup to Large Company Sustaining Sustaining Innovation Innovate or Evaporate Goal is to solve for: unknown customer and unknown features Build Search Execute Scalable Startup Transition /Buyout Large Company • Existing Market / Known customer • Known product feature needs Disruptive Innovation • New Market • New tech, customers, channels • Exit Criteria • Business model found • Total Available Market > $500m • Can grow to >$100m/year • Can be Venture capital funded

48. http://upscalability.com/

49. Source: http://startitup.co/guides/294/becoming-a-lean-startup-guru

50. The Lean Startup Method • Entrepreneurs are everywhere. • Entrepreneurship is management. • Validated learning. • Build-Measure-Learn. • Innovation accounting. • Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, 2011.