Exam II- ENT3003
How much did Eden Books raise with Kickstart?
$12,805
How much did Steiner use to start Steiner Associates?
$8,000 from his savings
Role-Playing
(experiential prototyping) help capture the customer's emotiona lexperience during testing
Laggards
(last 16%) have negative attitude towards technology and a strong aversion to change
Early Adopters
(next 13.5% after innovators) motivated to adopt the new technology in order to achieve a competitive advantage
Early Majority
(next 34% after Early Adopters) become interested with mass market appeal, tend to be practical and risk averse
Late Majority
(next 34%) pessimistic, risk-averse, skeptical, and less affluent than those in the previous groups
Influencers
(opinion leaders) customers who have a large following and can use it influence purchase decisions, even if they don't use the product themselves
Task Completion
(usability testing) watching someone use the product so that you can see what does and does not work
Business Model Canvas Components
1. CVP 2. customer segment 3. channels 4. customer realtions 5. key activities 6. key resources 7. key partners 8. revenue streams 9. cost structures
What are the six steps in the scientific method?
1. ask a lot of questions 2. carry out background research 3. form a hypothesis 4. test the hypothesis 5. analyze the results
Four Problems that Customers Experience
1. lack of time 2. lack of money 3. lack of skills 4. lack of access
What are the four problems that customers experience?
1. lack of time 2. lack of money 3. lack of skills 4. lack of access
What are the three qualities of an effective CVP?
1. provide better value than competition 2. be able to measure the value in monetary terms 3. must be sustainable over a considerable length of time
Mock-Up Prototypes
2D or 3D model that looks like the finished product but is not functional
Who wrote 'The back of the Napkin'?
Dan Roam
Entrepreneurs should __________ like scientists, but not _____ like them
THINK like scientists, but not ACT like them
Who created storyboards?
Walt Disney animators in the 1930's
Where does information about your customers for your customer journey map can come from?
Website analytics, social media, direct contact with customers
Problem-Solution Benefit Framework for Storyboarding
What problem is the customer experiencing? What solution are you offering to this problem? What benefit will your offering bring to the customer?
Customer
a person or firm that pays for the product or service
Customer Value Proposition
a statement describing why customers should buy the product or service and use it (value describes how much the product or service is worth to customers)
Minimum Viable Product (MVP)
a version of a new product that allows a team to collect the maximum amount of validated learning about the customers with the least effort
Customer Journey Map
a visual representation of the customer experience across multiple touchpoints
Demand
all of the prospective customers who want to buy your goods or services
Infrastructure
all of the resources that the entrepreneur requires to deliver the CVP (people, partners, suppliers, products, technologies, and facilities)
Supply
all the sellers who provide a good or service
Prototype
an early, often crude version of the product that customers can interact
Market
any place where suppliers and demanders can transact business
Hypothesis
assumption that can be tested through research and experimentation
Where is the 'chasm'?
between early adopters and early majorities
How do you cross the chasm?
by creating the entire product first, position the product properly, and use the right channels for distribution
Landing page
call to action, 'click for more info'
Day in the Lifee
can really get to know the end user by walking in their shoes for the day
Innovation
creation of an entirely new market where customers are offered a product or service
Rapid Prototyping
crudest version of a prototype (model made out of wood, foam, etc)
Wizard of Oz
customers thinks they're interacting with technology when its actually humans
Economic Buyers
customers who have the power to approve large-scale purchases
Decision Makers
customers with even more authority than the economic buyers to make purchasing decisions, due to their high position in the organizational hierarchy
What are the type of end user profiles?
demographics, psychographics, proxy products, watering holes, day in the life, biggest fear and motivators
Segmented Market
divided into groups based on customers' different needs and problems
Storyboards
drawing, sketches, and illustration to provide a high-level view of thoughts and ideas arranged in a sequence
Innovators
enthusiastic, willing to take risk (first 2.5%)
Bottom-Up Analysis
estimating potential sales using calculations to arrive at a total sales figure
Market Sizing
estimating the number of potential customers, the amount of possible revenue, or the level of potential profitability of a product or service
Top-Down Analysis
estimating the total market size using demographic data and then estimating your share of the market
Imitation Business Model
existing products and services to existing market
Minimum Viable Product (MVP)
focuses on delivering the features that customers want without wasting the resources 'overbuilding' the product with features that are unimportant
Points of Difference Approach CVP
focusing on how the product or service compares to the competition and how it differs from existing solutions on the market
Differnation
fulfilling unmet customer needs using a differentiated version of an existing product or service
Wizard of Oz Prototyping
have functionality delivered by people rather than technology
All-Benefits Approach
identifying and promoting the product and services' benefits, paying no attention to the competition or the customers true wants or needs. Product-focused rather than customer focused (least impactful)
Mass Market
large segment with similar needs
Buton to Nowhere
leads to an 'under construction' or 'feature on the way' notification, the more clicks on the button, the higher the likelihood that the potential offering will be of interest to potential customers
What is the major difference between Business Model Canvas and the lean model canvas?
lean canvas places more emphasis on first adopters and less on the customer segments, the lean canvas begins with a problem, not a value proposition, the Lean Canvas focuses on a single key metric to track the business' rate of success, Lean Canvas address unfair advantage
Bleachhead Market
limited segment of customers that will generate enough cash flow to equip the venture in winning over the other markets
High Fidelity Prototypes
mockup with enough functionality that he customer can interact with it
Live Product and Business
most effort, actual launch. Should be done after a previous test
Business Model Canvas
one page plan that provides a more thorough overview of the business model by dividing it into nine components
Multisided Market
one with two or more segments that are mutually interdependent
Paper testing
outline your vision using a wire frame, story board, or drawing
What does Dan Roam suggest in his book?
people can visually solve problems by drawing pictures
Recommenders
people who evaluate the product and tell others about it
Watering Holes
places where people meet and swap information
Product Application
products and services that meet this demand and thereby solve a customer problem
Buyer Personas
profiles of your ideal customers, which you develop from market research
What does buyer personas do?
profiles your ideal customers, which you develop from market research
What is Customer Journey Mapping?
provides a holistic view of the customer experience, allowing you to identify pain points
Disruption
providing existing customers with a new product or service
Concierge
replacing as much technology as possible with manual work at provide customers with an ideal experience
Niche Market
small segment with specific needs
Pilots and Prototypes
small-scale study used to assess a product or service's feasibility
Proxy Products
something an end user owns that provides insight into his or her future buying decisions, as well as certain psychographic or demographic characteristics
Who is Brandon Steiner?
started a successful sports bar and consulted with professional athletes and hired many sports stars to appear at his sports bar
Lean Canvas works best for....
startups in early stages of business, when the problem has not yet been chosen, no product has been developed, and few actions have been taken
Psychographics
target end users' psychological attributes- attitudes, values, and fears.
Market Opportunity
the degree of customer demand for a particular product or service
What are the four parts of the business model?
the offering, the customers, the infrastructure, financial viability
Consumer
the person who actually uses the product or service
Share of Market
the portion for the serviceable area market that the company is likely to be able to reach
Serviceable Available Market
the portion of the total available market your product or service intends to target
Evidence Based Entrepreneurship
the practice of creating a business model by hypothesizing, testing, and validating an idea
Rapid Prototypes
the quickest, crudest models that can be used to visualize the product or service
Financial Viability
the revenue and cost structures required to meeting operating expenses and financial obligation
Total Available Market
the total market demand for the product
User-Driven Prototypes
the user in the creation of the prototype
Business Model
the way in which a new venture will create, deliver, and capture value
What are the five desirable characteristics of an experiment?
they follow a structured template, they focus on one core hypothesis and don't test too many things at once, they produce believable results that allow from learning, they are flexible and can be changed if necessary, allow quick learning because they are compact
Pre-Selling
trying to get orders before the product has been developed, combined with ads and a discount for early ordering
Diversified Market
two or more segments that are completely unrelated to one another and have different needs and problems
Advertising
use brochures or social media to the target market and assess level of response
LEGO Prototypes
used by Tim Brown, CEO of IDEO, used LEGOs to build prototype of insulin injector device
Experiment
used to prove or disprove the validity of a hypothesis
What is a gallery sketch?
uses a single piece of white paper to illustrate the major components of the idea
Right side of business model canvas focuses on __________.
value creation and desirability
What are the University of Utah's Barclay Burns; five types of value?
value in use, value in exchange, value in distribution, value in finance, value in fitness, assess the communicate the results
Resonating-Focus Approach
what customers truly need and value; focuses on product-market fit (an offering that fits customer needs, so it is sometimes referred to as 'just what the customer wants')
Viability
whether or not we can make money doing it
Feasibility
whether we can do it
End Users
who actually uses the product