Startup Thinking 101 for Libraries: Workshop

6gMONTEREY
!
IL 2014
!
CALIFORNIA
!
zzzzzzzzzzzzzzzzzzzzzzzz startup
thinking 101
M.J. D’ELIA & HELEN KULA
UNIVERSITY OF GUELPH
UNIVERSITY OF TORONTO MISSISSAUGA

SECTION No.
welcome
MCS*4100 ENTREPRENEURSHIP
1
2

MCS*4100: ENTREPRENEURSHIP
agenda
welcome
explore the challenge
biz model canvas
!
customer development
discovery & validation
wrap
3

objectives
★ apply principles of startup thinking
★ map out a model for a new idea
★ develop a plan to validate your idea
★ focus on creating value
4

about us
O
APRIL 8, 2014
Helen Kula
Head, Learning &
Curriculum Support
Team
University of Guelph
mdelia@uoguelph.ca
@mjdelia
Librarian, Institute for
Management and
Innovation
U of Toronto Mississauga
helen.kula@utoronto.ca
@helenkula
M.J. D’Elia
5

plans vs. models
6

poor biz plan process
7
built on
assumptions
(secondary data)
assumptions
considered
> > >
“facts”
“facts” are not
challenged or
altered

poor biz plan process
8
plan becomes
static (it is not
rewritten)
company-centric
approach
productivity is
measured against
plan > >

first contact
!
“no plan survives first contact with its
customers.”
~ Steve Blank
9

biz model approach
1 0
built on
assumptions
(secondary data)
assumptions
considered
> > >
“facts”
“facts” are not
challenged or
altered
built on
observation
(primary data)
assumptions
are
acknowledged
assumptions
altered based on
new learning
> > >

biz model approach
1 1
plan becomes
static (it is not
rewritten)
company-centric
> >
approach
productivity is
measured against
plan
model continues
to be rewritten
(dynamic)
customer-centric
approach
productivity is
measured by
performance
> >

the scenario
practice startup thinking

recommendations
★ choose a:
★ user/patron focused product or service
★ new idea or approach
★ challenge that targets a subset of your
user population
1 3

scenario
★ public library partnership with local
hotels to offer library collections to
hotel guests
★ hotels can sign guests up for a free
library card during their stay
1 4

SECTION No.
explore the
challenge
2
1 5

customers / users
★ who do you expect will use your
product or service?
★ what problem(s) are you solving for
your potential users?
1 6

problem / solution
★ what do your potential users do right
now to solve those same problems?
★ why would they choose your solution
over their current solutions?
1 7

analogs
★ successful predecessor examples
★ who do you want to emulate/copy?
★ what elements of their approach can you
borrow?
1 8

antilogs
★ predecessor examples that did not work
★ what do you want to do differently?
1 9

SECTION No.
biz model
canvas
3
2 0

APRIL 8, 2014
customer segments
2 1

customer segments
“...defines the different groups of people
or organizations an enterprise aims to
reach and serve.”
~BMG, p. 20
2 2

customer segments > questions
★ for whom does the company/project
create value?
★ who are their most important
customers/users?
2 3

APRIL 8, 2014
value proposition
2 4

value proposition
“...describes the bundle of products and
services that create value for a specific
customer segment.”
~BMG, p. 22
2 5

value proposition > questions
★ what value does the idea deliver?
★ which problem is getting solved?
★ which needs will be satisfied?
★ what bundles of products/services do
they offer each customer segment?
2 6

channels
“...describes how a company
communicates with and reaches its
customer segments to deliver a value
proposition.”
~BMG, p. 26
2 8

channels > questions
★ how do the segments want to be
reached?
★ how are they reached now?
★ how is the company integrating with
customer routines?
2 9

APRIL 8, 2014
customer relationships
3 0

customer relationships
“...describes the types of relationships a
company establishes with specific
customer segments.”
~BMG, p. 28
3 1

customer relationships > questions
★ what type of relationship does each
segment expect?
★ which relationships have been
established?
★ how are they integrated with the rest
of the model?
3 2

APRIL 8, 2014
revenue streams /
return
3 3

revenue streams / return
“...represents the cash a company
generates from each customer segment
(costs must be subtracted from revenues
to create earnings).”
~BMG, p. 30
3 4

revenue streams > questions
★ for what value are customers really
willing to pay?
★ for what do they currently pay?
★ how are they currently paying?
★ how much does each revenue stream
contribute to overall revenue?
3 5

APRIL 8, 2014
key resources
3 6

key resources
“...the most important assets required to
make the business model work.”
~BMG, p. 34
3 7

key resources > questions
★ what key resources do your value
propositions require?
★ distribution channels?
★ customer relationships?
★ revenue streams?
3 8

APRIL 8, 2014
key activities
3 9

key activities
“...describes the most important things a
company must do to make its business
model work.”
~BMG, p. 36
4 0

key activities > questions
★ what key activities do your value
propositions require?
★ distribution channels?
★ customer relationships?
★ revenue streams?
4 1

APRIL 8, 2014
key partnerships
4 2

key partnerships
“...describes the network of suppliers
and partners that make the business
model work.”
~BMG, p. 38
4 3

key pARTNERSHIPS > questions
★ who are the key partners?
★ who are the key suppliers?
★ which key resources do you need from
someone else?
★ which key activities do partners
perform?
4 4

APRIL 8, 2014
cost structure
4 5

cost structure
“...describes all costs incurred to operate
the business model.”
~BMG, p. 40
4 6

cost structure > questions
★ what are the most important costs
inherent in our business model?
★ which key resources are most
expensive?
★ which key activities are most
expensive?
4 7

SECTION No.
customer
development
4
4 8

KP KA VP
KR
CR
CH
CS
C$ R$
BMG, p. 74-75
biz model

KP KA VP
KR
CR
CH
CS
C$ R$
BMG, p. 74-75
biz model
ASSUMPTIONS
(LEAPS OF FAITH)

★ four-step framework
★ discover and validate your market
★ built the right product features
★ solve customers’ needs
★ tested methods for acquiring customers
★ deployed resources to scale business
5 1

★ process by which you question and test
the core assumptions of your idea
5 2

cust dev > 1. customer discovery
5 3
customer
discovery
problem-solution
fit
proposed
mvp
★ a product solves a problem
for an identified group of
users

cust dev > 2. customer validation
5 4
customer
validation
product-market
fit
biz model
sales map
★ the market is
large enough to
build a viable
business

cust dev > 3. company creation
5 5
company
creation
scale
execution
★ the business is
scalable through
repeatable sales

cust dev > 4. company building
5 6
company
building
scale
organization
scale
operations
★ company grows and
operational processes are
created to support growth

cust dev > framework
5 7
customer
discovery
customer
validation
company
creation
company
building
problem-solution
fit
proposed
mvp
product-market
fit
biz model
sales map
scale
execution
scale
organization
scale
operations

cust dev > pivot
5 8
customer
discovery
pivot
company
creation
company
building
problem-solution
fit
proposed
mvp
product-market
fit
biz model
sales map
scale
execution
scale
organization
scale
operations
customer
validation

pivot
“...a structured course correction
designed to test a new fundamental
hypothesis about the product, strategy,
and engine of growth.”
~ Eric Ries, The Lean Startup
5 9

pivot > based on learning
“A pivot requires that we keep one foot
rooted in what we’ve learned so far,
while making a fundamental change in
strategy in order to seek even greater
validated learning.”
6 0

SECTION No.
discovery +
validation
5
6 1

cust dev > first stage
6 2
customer
discovery
pivot
company
creation
company
building
problem-solution
fit
proposed
mvp
product-market
fit
biz model
sales map
scale
execution
scale
organization
scale
operations
customer
validation

empathy map > bonus worksheet
★ understanding the mindset of the user
★ influences
★ pressures
★ pains, gains
★ anticipating their needs
6 3
BMG, p. 131

SECTION No.
wrap
6
6 4

instinct
“There is no way to remove the human
element--vision, intuition, judgment--
from the practice of entrepreneurship,
nor would that be desirable.”
!
6 5

reminders for application
There are no facts
inside your
building, so get
outside.
6 6
The best startup
ideas ideas come
from noticing.

Determine what
you want to learn
before you build.
6 7
Build a minimum
viable product
with the smallest
possible feature
set.

No business plan
survives first
contact with
customers.
6 8
Failure is an
integral part of
the search.

evaluation
what did you think?

contact info
O
APRIL 8, 2014
Helen Kula
Head, Learning &
Curriculum Support
Team
University of Guelph
mdelia@uoguelph.ca
@mjdelia
Librarian, Institute for
Management and
Innovation
U of Toronto Mississauga
helen.kula@utoronto.ca
@helenkula
M.J. D’Elia
7 0

references
7 1
Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch.
Cooper, B. & Vlaskovits, P. (2010). The Entrepreneur’s Guide to Customer Development. Newport Beach,
CA: Cooper-Vlaskovits
Greenberg, D., McKone-Sweet, K. & Wilson, H. J. (2011). The New entrepreneurial leader. San Francisco:
Berrett-Koehler Publishers.
Kiefer, C. F., Schlesinger, L. A. & Brown, P. B. (2010). Action trumps everything. Duxbury, MA: Black Ink
Press
Komisar, J. & Mullins, R. (2009). Getting to Plan B. Cambridge, MA: Harvard Business.
Martin, R. (2009). The design of business. Boston: Harvard Business Press.
Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: Wiley.
Ries, E. (2011). The Lean Startup. New York: Crown Business.

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