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