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STARTUP GLOSSARY

BEGRIFFE UND METHODEN AUS DER STARTUP-WELT

Daniel Bartel
Benjamin Bestmann

Exec I/O | Düsseldorf | 02.12.2013
About!
Ein Zusammenschluss aus Unternehmern und Innovatoren

DANIEL	
  BARTEL	
  
Business Innovation
Evangelist

BENJAMIN	
  BESTMANN	
   DR.	
  WINFRIED	
  RICHTER	
   ADRIAN	
  THOMA	
  
Business Innovator & Entrepreneur, davor
Serial Entrepreneur
Founder
Corporate-Executive

PROF.	
  DR.	
  NILS	
  HÖGSDAL	
  
Wissenschaftlicher
Begleiter

+ UNSER NETZWERK
•  STEVE BLANK (4 Steps to Epiphany)

•  BOB DORF (The Startup Owners Manual)

•  ALEXANDER OSTERWALDER (Business Model Generation)

•  ASH MAURYA (Running Lean Series, Spark 59)

•  YVES PIGNEUR & ALAN SMITH (Business Model Generation)

•  ROB FITZPATRICK (The Mom Test)

•  PROF. DR. GUNTER DUECK (ehem. CTO IBM)

•  SAL VIRANI (Leancamp)
•  uvm

Exec I/O | Düsseldorf | 02.12.2013

2
What is a Startup?
Some Definitions
„A human institution designed to create a new product
or service under conditions of extreme uncertainty.”
- Eric Ries

„A startup is a temporary organization in search for a
scalable, repeatable, profitable business model.“
- 

Exec I/O | Düsseldorf | 02.12.2013

Steve Blank

3
Startups = Experiments
Problem (Market) = unknown
Solution (Product) = unknown

http://wallpaperscraft.com/image/pier_lake_descent_uncertainty_fog_60618_1920x1285.jpg

Exec I/O | Düsseldorf | 02.12.2013

4
Innovation Spectrum
Sustaining vs. Disruptive Innovation

The Lean Entrepreneur, http://www.slideshare.net/slideshow/embed_code/
16699289

Exec I/O | Düsseldorf | 02.12.2013

5
Search vs. Execute
„Startups are not just smaller versions of big companies“

Source:	
  h*p://steveblank.files.wordpress.com/2010/01/business-model1.jpg

Exec I/O | Düsseldorf | 02.12.2013

6
One method to rule them all?
No! Startups need their own management tools

MBA = ADMINISTRATION
(perfect for running a company, but not for “designing”)

Exec I/O | Düsseldorf | 02.12.2013

7
Efficiency vs. Effectivity
Are you advancing a plan or are you making progress?

http://impossibleobjects.com/catalogue/cleaning-sneakers.html

Exec I/O | Düsseldorf | 02.12.2013

8
90% OF ALL STARTUPS FAIL

http://www.wnd.com/2012/02/bolton-u-s-running-up-the-white-flag-to-taliban/
According to Ash Maurya …
66% drastically change their original plans

Exec I/O | Düsseldorf | 02.12.2013

10
Don‘t build products nobody wants
Why startups fail

“ Startups don’t fail because
they lack a product; they fail
because they lack customers
and a profitable business
model ”

Exec I/O | Düsseldorf | 02.12.2013

11
Innovation Value Chain
Proof of
Concept

Theory

BASIC
RESEARCH

APPLIED
RESEARCH

Prototype

PRE
DEVELOPMENT

DEVELOPMENT

1st Model

PRE
PRODUCTION

1st Batch

PRODUCTION

DESIGN THINKING
Empathize & Define

Ideate

Prototype & Test

LEAN STARTUP
Customer Discovery

Customer Validation & Creation

Company Building

BUSINESS MODEL GENERATION
Value Proposition Design

Exec I/O | Düsseldorf | 02.12.2013

Business Model Canvas

12
The four stages of a Startup
Product/Market-­‐Fit	
  

Problem/Solu1on-­‐Fit	
  

Search
Exec I/O | Düsseldorf | 02.12.2013

Execution
13
The four stages of a Startup

Exec I/O | Düsseldorf | 02.12.2013

14
The Problem of existing companies:

Our	
  Learning	
  Curve	
  

Speed	
  of	
  Change	
  
Past	
  

Future	
  
Eddies Obeng's the world after midnight rate of lerning pace of change around us

Exec I/O | Düsseldorf | 02.12.2013

15
Alexander Osterwalder says:
“Every Business Model has an Expiry-Date!”

Exec I/O | Düsseldorf | 02.12.2013

16
Lean Startup

Exec I/O | Düsseldorf | 02.12.2013

17
Lean?
Maximize Customer Value while minimizing waste.

In context of startups/innovation:
“Every activity that helps to learn about what
creates value for potential customers.”

Exec I/O | Düsseldorf | 02.12.2013

18
Lean Startup
A scientific approach to manage Disruptive Innovation
Define Hypotheses
Make assumptions about your business.

Build & Run Experiments
Test your assumptions empirically.

Learn from the Results
Pivot (change strategy) or Persevere.

Exec I/O | Düsseldorf | 02.12.2013

19
Build-Measure-Learn
Scientific Feedback Loop

Exec I/O | Düsseldorf | 02.12.2013

20
Define Hypotheses

Exec I/O | Düsseldorf | 02.12.2013

21
Finding a Business Model
The Business Model Canvas (Alexander Osterwalder)

Exec I/O | Düsseldorf | 02.12.2013

22
“Business Model Stack”

Exec I/O | Düsseldorf | 02.12.2013

23
Test Assumptions

Exec I/O | Düsseldorf | 02.12.2013

24
Get out of the Building
„There are no facts inside“ (Steve Blank)

http://www.giantbomb.com/emergency-exit/3055-4475/

Exec I/O | Düsseldorf | 02.12.2013

25
Systematically Test your Model

Exec I/O | Düsseldorf | 02.12.2013

26
Minimum Viable Product (MVP)
The minimum feature set that enables learning
Examples:
• 
• 
• 
• 
• 
• 

Landing Pages
Videos / Sketches
Screenshots
Paper Prototypes
Mockups & Wireframes
KickStarter

http://leanheroes.com/what-is-a-minimum-viable-product-mvp/

Exec I/O | Düsseldorf | 02.12.2013

27
Pretotyping (Concierge Service)

h*p://www.openideo.com/open/web-­‐start-­‐up/inspira1on/pretotype-­‐building-­‐the-­‐right-­‐it-­‐vs.-­‐building-­‐it-­‐right/	
  

Exec I/O | Düsseldorf | 02.12.2013

28
Pretotyping (Concierge Service)

h*p://www.openideo.com/open/web-­‐start-­‐up/inspira1on/pretotype-­‐building-­‐the-­‐right-­‐it-­‐vs.-­‐building-­‐it-­‐right/	
  

Exec I/O | Düsseldorf | 02.12.2013

29
Make it count
Innovation Accounting & Metrics

Example: AARRR Framework by Dave McClure

Exec I/O | Düsseldorf | 02.12.2013

30
Design Thinking

Exec I/O | Düsseldorf | 02.12.2013

31
Non-linear Process
Problem

Solution

POV	
  

Exec I/O | Düsseldorf | 02.12.2013
h*p://humani1eslab.stanford.edu/Bootcamp/Home	
  

32
“64% of features and functions are
rarely or never used.”

*Source: Standish Group.

Exec I/O | Düsseldorf | 02.12.2013

33
© HPI / D-School und andere

empathize	
   define	
  

	
  test	
  
ideate	
  

prototype	
  

Exec I/O | Düsseldorf | 02.12.2013

34
Huge OutCOME!

Exec I/O | Düsseldorf | 02.12.2013

35
Digg for needs, wishes & insights

Exec I/O | Düsseldorf | 02.12.2013

36
Fragen? Fragen.
BENJAMIN	
  BESTMANN	
  
mail: bb@ifbi.eu
mobil: @BenBestmann
web: ifbi.eu

DANIEL	
  BARTEL	
  
mail: db@ifbi.eu
twitter: @danbar87
web: ifbi.eu
3 Mayor Risks
1. Product Risk: Getting the product right
	
  

2. Customer Risk: Building a path to customers
	
  

3. Market Risk: Building a viable business
è TEST THEM ALL!!!	
  

Exec I/O | Düsseldorf | 02.12.2013

38
prototype: fail early and often

h*p://www.pdfpedia.com/download/12464/lecture-­‐9-­‐prototyping-­‐
pdf.html	
  

Exec I/O | Düsseldorf | 02.12.2013

39
Traditional Development

Exec I/O | Düsseldorf | 02.12.2013

40

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Startup Glossary - Must have Startup Vocabulary

  • 1. STARTUP GLOSSARY BEGRIFFE UND METHODEN AUS DER STARTUP-WELT Daniel Bartel Benjamin Bestmann Exec I/O | Düsseldorf | 02.12.2013
  • 2. About! Ein Zusammenschluss aus Unternehmern und Innovatoren DANIEL  BARTEL   Business Innovation Evangelist BENJAMIN  BESTMANN   DR.  WINFRIED  RICHTER   ADRIAN  THOMA   Business Innovator & Entrepreneur, davor Serial Entrepreneur Founder Corporate-Executive PROF.  DR.  NILS  HÖGSDAL   Wissenschaftlicher Begleiter + UNSER NETZWERK •  STEVE BLANK (4 Steps to Epiphany) •  BOB DORF (The Startup Owners Manual) •  ALEXANDER OSTERWALDER (Business Model Generation) •  ASH MAURYA (Running Lean Series, Spark 59) •  YVES PIGNEUR & ALAN SMITH (Business Model Generation) •  ROB FITZPATRICK (The Mom Test) •  PROF. DR. GUNTER DUECK (ehem. CTO IBM) •  SAL VIRANI (Leancamp) •  uvm Exec I/O | Düsseldorf | 02.12.2013 2
  • 3. What is a Startup? Some Definitions „A human institution designed to create a new product or service under conditions of extreme uncertainty.” - Eric Ries „A startup is a temporary organization in search for a scalable, repeatable, profitable business model.“ -  Exec I/O | Düsseldorf | 02.12.2013 Steve Blank 3
  • 4. Startups = Experiments Problem (Market) = unknown Solution (Product) = unknown http://wallpaperscraft.com/image/pier_lake_descent_uncertainty_fog_60618_1920x1285.jpg Exec I/O | Düsseldorf | 02.12.2013 4
  • 5. Innovation Spectrum Sustaining vs. Disruptive Innovation The Lean Entrepreneur, http://www.slideshare.net/slideshow/embed_code/ 16699289 Exec I/O | Düsseldorf | 02.12.2013 5
  • 6. Search vs. Execute „Startups are not just smaller versions of big companies“ Source:  h*p://steveblank.files.wordpress.com/2010/01/business-model1.jpg Exec I/O | Düsseldorf | 02.12.2013 6
  • 7. One method to rule them all? No! Startups need their own management tools MBA = ADMINISTRATION (perfect for running a company, but not for “designing”) Exec I/O | Düsseldorf | 02.12.2013 7
  • 8. Efficiency vs. Effectivity Are you advancing a plan or are you making progress? http://impossibleobjects.com/catalogue/cleaning-sneakers.html Exec I/O | Düsseldorf | 02.12.2013 8
  • 9. 90% OF ALL STARTUPS FAIL http://www.wnd.com/2012/02/bolton-u-s-running-up-the-white-flag-to-taliban/
  • 10. According to Ash Maurya … 66% drastically change their original plans Exec I/O | Düsseldorf | 02.12.2013 10
  • 11. Don‘t build products nobody wants Why startups fail “ Startups don’t fail because they lack a product; they fail because they lack customers and a profitable business model ” Exec I/O | Düsseldorf | 02.12.2013 11
  • 12. Innovation Value Chain Proof of Concept Theory BASIC RESEARCH APPLIED RESEARCH Prototype PRE DEVELOPMENT DEVELOPMENT 1st Model PRE PRODUCTION 1st Batch PRODUCTION DESIGN THINKING Empathize & Define Ideate Prototype & Test LEAN STARTUP Customer Discovery Customer Validation & Creation Company Building BUSINESS MODEL GENERATION Value Proposition Design Exec I/O | Düsseldorf | 02.12.2013 Business Model Canvas 12
  • 13. The four stages of a Startup Product/Market-­‐Fit   Problem/Solu1on-­‐Fit   Search Exec I/O | Düsseldorf | 02.12.2013 Execution 13
  • 14. The four stages of a Startup Exec I/O | Düsseldorf | 02.12.2013 14
  • 15. The Problem of existing companies: Our  Learning  Curve   Speed  of  Change   Past   Future   Eddies Obeng's the world after midnight rate of lerning pace of change around us Exec I/O | Düsseldorf | 02.12.2013 15
  • 16. Alexander Osterwalder says: “Every Business Model has an Expiry-Date!” Exec I/O | Düsseldorf | 02.12.2013 16
  • 17. Lean Startup Exec I/O | Düsseldorf | 02.12.2013 17
  • 18. Lean? Maximize Customer Value while minimizing waste. In context of startups/innovation: “Every activity that helps to learn about what creates value for potential customers.” Exec I/O | Düsseldorf | 02.12.2013 18
  • 19. Lean Startup A scientific approach to manage Disruptive Innovation Define Hypotheses Make assumptions about your business. Build & Run Experiments Test your assumptions empirically. Learn from the Results Pivot (change strategy) or Persevere. Exec I/O | Düsseldorf | 02.12.2013 19
  • 20. Build-Measure-Learn Scientific Feedback Loop Exec I/O | Düsseldorf | 02.12.2013 20
  • 21. Define Hypotheses Exec I/O | Düsseldorf | 02.12.2013 21
  • 22. Finding a Business Model The Business Model Canvas (Alexander Osterwalder) Exec I/O | Düsseldorf | 02.12.2013 22
  • 23. “Business Model Stack” Exec I/O | Düsseldorf | 02.12.2013 23
  • 24. Test Assumptions Exec I/O | Düsseldorf | 02.12.2013 24
  • 25. Get out of the Building „There are no facts inside“ (Steve Blank) http://www.giantbomb.com/emergency-exit/3055-4475/ Exec I/O | Düsseldorf | 02.12.2013 25
  • 26. Systematically Test your Model Exec I/O | Düsseldorf | 02.12.2013 26
  • 27. Minimum Viable Product (MVP) The minimum feature set that enables learning Examples: •  •  •  •  •  •  Landing Pages Videos / Sketches Screenshots Paper Prototypes Mockups & Wireframes KickStarter http://leanheroes.com/what-is-a-minimum-viable-product-mvp/ Exec I/O | Düsseldorf | 02.12.2013 27
  • 30. Make it count Innovation Accounting & Metrics Example: AARRR Framework by Dave McClure Exec I/O | Düsseldorf | 02.12.2013 30
  • 31. Design Thinking Exec I/O | Düsseldorf | 02.12.2013 31
  • 32. Non-linear Process Problem Solution POV   Exec I/O | Düsseldorf | 02.12.2013 h*p://humani1eslab.stanford.edu/Bootcamp/Home   32
  • 33. “64% of features and functions are rarely or never used.” *Source: Standish Group. Exec I/O | Düsseldorf | 02.12.2013 33
  • 34. © HPI / D-School und andere empathize   define    test   ideate   prototype   Exec I/O | Düsseldorf | 02.12.2013 34
  • 35. Huge OutCOME! Exec I/O | Düsseldorf | 02.12.2013 35
  • 36. Digg for needs, wishes & insights Exec I/O | Düsseldorf | 02.12.2013 36
  • 37. Fragen? Fragen. BENJAMIN  BESTMANN   mail: bb@ifbi.eu mobil: @BenBestmann web: ifbi.eu DANIEL  BARTEL   mail: db@ifbi.eu twitter: @danbar87 web: ifbi.eu
  • 38. 3 Mayor Risks 1. Product Risk: Getting the product right   2. Customer Risk: Building a path to customers   3. Market Risk: Building a viable business è TEST THEM ALL!!!   Exec I/O | Düsseldorf | 02.12.2013 38
  • 39. prototype: fail early and often h*p://www.pdfpedia.com/download/12464/lecture-­‐9-­‐prototyping-­‐ pdf.html   Exec I/O | Düsseldorf | 02.12.2013 39
  • 40. Traditional Development Exec I/O | Düsseldorf | 02.12.2013 40