Archive for Lean Startup

Need a collection of tools to help generate business model ideas! The Business Model Canvas is an analytical tool outlined in the book Business Model Generation. It is a visual template preformatted with the nine blocks of a business model, which allows you to develop and sketch out new or existing business models. This book has sold over 220,000 copies the past two years and has established itself as one of the leading sources of modeling for both startups and established businesses.

If you’re ready to change the rules, you belong to “the business model generation!” Listen to Alex discuss this concept and he latest extensions to the BMGen platform such as the Customer Value Canvas plugin.


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Download Podcast: Click and choose options: BMGen or go to the Business901 iTunes Store.

About: Dr. Alexander Osterwalder is a sought-after author, speaker, workshop facilitator and adviser on the topic of business model design and innovation. He has established himself as a global thought leader in this area, based on a systematic and practical methodology to achieve business model innovation. Executives and entrepreneurs all over the world apply Dr. Osterwalder?s approach to strengthen their business model and achieve a competitive advantage through business model innovation. Organizations that use his approach include 3M, Ericsson, IBM, Telenor, Capgemini, Deloitte, Logica, Public Works and Government Services Canada, and many more.

  • Competitive Advantage Through Business Model Innovation
  • Aligning Business Model Innovation and Information Technology
  • From Business Model to Business Plan
  • Private Banking Business Models – discover, understand, define
  • Business Models in the Media Industry
  • Business Models at the Bottom of the Pyramid
  • Social Entrepreneurship Business models
  • Design Thinking in Business

Alex’s Websites:
http://www.businessmodelalchemist.com
http://businessmodelhub.com/
http://www.businessmodelgeneration.com/

Related Information:
Do You Know the Right Job For Your Products?
Lean Canvas for Lean EDCA-PDCA-SDCA
Will Product Managers embrace Open Innovation?
Steve Blank on the Lean Startup at Ann Arbor

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Jan
15

Lean Engagement Team Book Released

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Sales and marketing can no longer operate in a vacuum. It has become a process output that intertwines across many of the departments within the organization. As companies have become flat, their decision making is increasingly being done by committee. As a supplier, you must mimic your customer decision-making path and as a result your sales and marketing will also be done by committee. Our highest priority is to deliver to the customer content that he deems valuable to his decision-making process.

Lean is the future of marketing and one of the main reasons is the development of Agile under the Lean umbrella. Using the Agile Manifesto as a basis for Agile marketing or Lean marketing is a good start. In summary they are based on these principles:

  • Individuals and interactions over processes and tools
  • Content-rich material over elaborate promotion
  • Customer collaboration over contract negotiation
  • Response to changing customer needs over following a plan

The further we are from our customers’ knowledge base the more effort has to be made to create a larger and larger supply of prospects. The ability to share and create knowledge with your customer is the strongest marketing tool possible. Successful Sales and Marketing Teams are no longer trying to get their message out but developing strategies to get the message in.

Table of Contents

  • The Path
  • Positioning your organization from your customer’s viewpoint
  • Only the Customer Determine Value
  • PDCA from the Outside-In
  • The iCustomer and iTeam
  • New Lean Thinking
  • Lean Engagement Tools
  • Lean Engagement Team
  • Marketing Gateway of EDCA, PDCA, SDCA

The book is available as a PDF download on the Business901.com website or on Amazon:

Lean Engagement Team (Marketing with Lean, Volume 2) [Ring-bound]

Lean Engagement Team (Marketing with Lean, Volume 2) [CD-ROM]

Related Information:
SALES PDCA Framework for Lean Sales and Marketing
Profound knowledge for Lean Marketing
If all of us need to be marketers, what’s the framework?
The 7 step Lean Process of Marketing to Toyota

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Jan
05

Prototyping into a Working Form

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An original idea may be your starting point and Your First Prototype is with Pen and Paper. If or when your idea receives support from others, you will be at a point to take more serious design steps. Most successful product launches start with a clear vision of what they want to accomplish. This is not saying that you will not change or even “Pivot” later on but without that clear vision initially it is very difficult to generate a lot of steam that is required to drive to a successful conclusion.

In the book Innovation Acceleration: Transforming Organizational Thinking, the authors use the term “project pillars” as a way of clarifying your vision. Their example was the “project pillars” for the Palm Pilot.

    • Fits in pocket.
    • Synchronizes seamlessly with PC
    • Fast and easy to use
    • Costs no more than $299

The authors go on to say:

The company was able to build the world’s first successful personal digital assistant. Meeting those constraints required a lot of trial and error, but it provided targets to focus the team’s creative energies. Once you have nailed the general design concept, this approach leads to more innovative outcomes rather than meandering aimlessly from one idea to another. This is a tricky position because you have to balance direct with an open mind.

They outline a design thinking process in the book that I believe can be utilized in designing your prototype. I paraphrase their material and combined with my own into a format for prototypes:

Keep good records – Archive everything. I use to use a box in my room for different design projects. I would tear out magazine articles, copies of book pages, pictures, sketches. I have since narrowed that down and store most of my files electronically that also includes audio and video recordings, links to other material and so forth.

Constantly generate and refine ideas based on customer’s perspective – This is not problem solving. It is one of the reasons that I discuss the Marketing Gateway of EDCA > PDCA>SDCA. It is also why getting a prototype out in front of customer early – even in the pen and paper stage is so important. What we think are great ideas, may not be so great. If you are going to be radical as Clayton Christensen says, “Consider your customers’ deepest values and interest rather than their purchasing behavior”.

Visualization, Mock-ups, Models – This is the most effective way of advancing an idea into reality. This is the heart of your prototype. Remember that verbal communication is often misunderstood. A better way to communicate your idea is to express it in some type of visual form. It can be done through sketches, mechanical drawings, or 3-D computer programs. As the old saying goes, a picture is worth a thousand words. If a picture is worth a thousand words, an actual physical representation is worth a million words. If you want to get great feedback on your idea, build a prototype. Nothing gets your idea across better than something people can view from different angles and provide questions and feedback. One of the reasons managers struggle with this guideline is that they fear a lot of craftsmanship and expertise is required to build a prototype, but this is not necessarily true. Prototypes can be inexpensive and basic.

When you see a prototype being used, or played with you’ll know you’re on the right path. One of my favorite stories and coincidentally again about the Palm Pilot was that the inventor went into a “Shark Tank” (not the TV show or a literal definition) and was completely ill-prepared. Looking around for something to engage his audience, he tossed a wallet in the middle of the table and said it would look something like this. Moments later, he saw them starting to look at the wallet and knew the deal was done when they started passing the wallet around the table.

Consciously Select Solution Paths – You will face issues as you proceed. This is the point where discipline is important. People may give up because the problems seem too overwhelming to solve. In Mark Graban‘s Book Review: One Small Step Can Change Your Life: The Kaizen Way on his blog, he states:

Maurer also has tips and lessons about rewiring one’s brain for kaizen and changes, including leading yourself and others by asking small questions, such as “What’s the smallest step I can take to be more efficient?”, learning to practice this habit in a kaizen style by starting small…

Mauer also makes a great case for how we start, with kaizen, by learning how to see and address little problems. Then, we are able to see and fix larger problems.

This is why prototyping early is so important. It allows for minor changes in the process and the ability to undo changes that later may prove to be ineffective. If you can overcome these challenges, it will give you a competitive advantage over other companies, because you will have gained particular knowledge and a distinct product for the market.

Your solution path is very much like an airplane ride. You are continuously off course, constantly adjusting and finally arriving at your destination.

Get Feedback and Involvement from a variety of People – Search for feedback from a diverse group of potential customers, suppliers, fellow managers, employees, and content experts. You may get a lot of suggestions, but only a few might be useful (that’s okay; it is a journey). You never know when someone will give you an unexpected insight that would have been overlooked had you not searched out a lot of the opinion of others. The key point is to build something you can receive feedback on and return to rebuild as soon as possible. Moreover, with available technologies today, it’s getting easier to make prototypes. But don’t stop there. What about an interactive play? What would a sales presentation look like as a prototype? You could invite customers and maybe even local actors and directors of local theaters. This is play time, use it and get the most out of it from as many people as possible.

Prototyping is meant to be an iterative process. But this is a new practice for most people and organizations. Most people within organizations are implementing orders and maintaining the way a company operates. So how do create this type of thinking and bring it into reality in everyday work? More importantly, how do you learn to experiment?

P.S. Want to get an idea across, or a problem solved in an internal setting. Remember the old game of telephone. – give them a prototype and see what develops.

Related Information:
Prototypes provide a Pathway for Connecting with Customers
Your First Prototype is with Pen and Paper
Why Prototype? Customer Interactivity is the Most Meaningful Part of Design

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Nov
09

Lean Canvas for Lean EDCA-PDCA-SDCA

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SALES PDCA is the framework I use for the process that takes place in the customer sales and marketing cycle. It is a standard PDCA cycle except the SALES part of the framework is where the sales team gets its directions and coaching from the team coordinator and value stream manager. Within the actual PDCA stage the sales team is empowered to make their own choices and determine their own direction to accomplish the goals of that cycle. This framework is introduced in the Marketing with PDCA book.

Continuing with my Lean journey and the development of the Lean sales and Marketing platform, many of the PDCA cycles became standardized and SDCA was introduced. Graham Hill had mentioned the concept of EDCA (Explore-Do-Check-Act). Graham was the head of CRM at Toyota Financial Services. He stated that:

Marketing in highly competitive markets is about exploring new propositions on the innovation fitness landscape. The environment determines where to start and complex marketing environments need EDCA. EDCA = Explore, PDCA = Plan, SDCA = Standardize, marketing operations are all about moving along the EDCA>PDCA>SDCA pathway.

As a result it was refine into three separate distinctive cycles of SALES EDCA, SALES PDCA, SALES SDCA. Viewing your value stream/marketing cycle in this manner creates endless opportunities for improvement. It is also easier to handle the team concept of sales and marketing with this outline.

The Lean sales and marketing team is a cross-functional group whose number and expertise are derived from the decision-making path of the customer. You must first have established directives for a particular marketing cycle and a structure to match it. Are you looking for creativity (EDCA), problem resolution (PDCA), or tactical execution (SDCA)? Once you have established the objectives, you choose a team structure to match it. Without this process you may have creative teams working on tactical execution or on the other hand a problem-solving team working on a creative solution.

The question remained how do we make this knowledge explicit? Several years ago, I would have just framed this as an A3 report and placed the SALES on the left side and the ECA/PDCA/SDCA on the right side. However I have decided to use the terminology of a canvas versus an A3 following the concept developed in the Business Model Generation by Alexander Osterwalder. The BMG Canvas has its roots in Design Thinking which I believe is a better conduit for focusing outside the organization.

In the upcoming week, I will blog about the individual Lean Canvases and Standard Work templates. This slide show is meant to be the introduction to the concept.

Related Information:
Successful Lean teams are iTeams
Lean needs Marketing, more than Marketing needs Lean!
Continuous Improvement Sales and Marketing Toolset
The Common Thread of Design Thinking, Service Design and Lean Marketing

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