Transcript Document 7109115

Lean Startup and Entrepreneurship
Minder Chen, Ph.D.
Visiting Professor
Department of Information Management
National Taiwan University
台灣大灣資訊管理系客座教授
&
Professor of Management Information Systems
Martin V. Smith School of Business and Economics
California State University Channel Islands
Camarillo, CA 93012
[email protected]
[email protected]
2014台灣生物科技產學論壇研討會
生物科技產業發展與創新創業精神
© Minder Chen, 1996-2014
Nov. 14, 2014
Entrepreneurship - 1
Creativity, Innovation, and Entrepreneurship
 創意的空間
 創新的文化
 創業的精神
創業
Entrepreneurship
創意
創新
Creativity
Innovation
© Minder Chen, 1996-2014
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Definition of Innovation
• An innovation is the creation and
application of a new or significantly
improved technology, product/service,
process, or business model that is
accepted by markets and society.
– Adapted from OECD 2005 and Wikipedia.
http://www.youtube.com/watch?v=2NK0WR2GtFs&feature=watch-vrec
http://www.designcouncil.org.uk/Documents/Documents/OurWork/Insight/DesignForInnovation/DesignForInnovation_Dec2011.pdf
© Minder Chen, 1996-2014
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Not Seeing the Opportunities
1. Cannot see at its nascent stage
2. Don’t take it seriously once seen
3. Don’t understand when it has
become successful
4. Wait until it is too late
視而不見 看不起 看不懂來不及
先見之明人棄我取察通透先一著
© Minder Chen, 1996-2014
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Disciplined Entrepreneurship
6 Themes
Bill Aulet, Disciplined Entrepreneurship: 24 Steps to a Successful Startup, Wiley, 2013.
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4. TAM: Total Addressable Market
12. DMU: Decision Making Unit
(for purchase our products)
17. LTC: Life Time Value
19. COCA: Costs of Customer
Acquisition
22. MVBP: Minimum Viable
Business Product
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Marketing Sizing: TAM, SAM, and TM
• Total Addressable/Available Market
http://en.wikipedia.org/wiki/Total_addressable_market
© Minder Chen, 1996-2014
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Design Thinking
Source: http://dthsg.com/what-is-design-thinking/
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Design Thinking Process by Stanford d.school / IDEO
“To create meaningful innovations,
you need to know your users.
Empathize and care about their lives.”
“It’s not about coming up with the ‘right’
idea, it’s about generating the broadest
range of possibilities.”
“Build to think and test to
learn.”
“Framing the right problem is the only way to
create the right solution.”
IDEO’s 3i: Inspiration發想  Ideation構思  Implementation執行
• http://dschool.stanford.edu/dgift/
“Testing is an opportunity to learn
about your solution and your
user.”
•© Minder
https://dschool.stanford.edu/groups/designresources/wiki/36873/attachments/8a846/ModeGuideBOOTCAMP2010.pdf
Chen, 1996-2014
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Customer Value Canvas
•
•
http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
http://www.franciscopalao.com/english/value-proposition-canvas-get-to-know-yourcustomers-and-improve-your-value-proposition/
© Minder Chen, 1996-2014
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Frictions & Pains
• 3M Post-it
• “I keep losing my place in my music!”
http://invention.smithsonian.org/centerpieces/iap/inventors_fry2.html
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Design for Extreme Affordability
• Problem: 15 M premature and underweight babies
and many died.
• Reasons:
– Babies are so tiny they don’t have enough fat to
regulate their own body temperature.
– Traditional incubators can also cost as much as
$20,000—each.
• Goal: Design low-cost infant incubator for
developing world
• Field research:
–
–
Saw unused infant incubators in hospital in Nepal.  Changing
design for hospitals and clinics to Rural mothers in their villages
Heard mother is going to reduce temperature from 38oc to 30oc 
Changing the indicator to just OK
http://www.creativeconfidence.com/chapters/chapter-3
© Minder Chen, 1996-2014
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The Embrace Infant Warmer Is A Product With A Mission
$200
ABC News 20/20 Video
Video from Embrace
Paraffin (石蠟)
http://embraceglobal.org/
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Redesign MRI for Kids
• GE 18 billion Healthcare Division
• Multimillion-dollar magnetic resonance imaging
(MRI) machines
• Problem: Children are frighten by the MRI
machine and 80% has to be sedated before
scanning.
• Action: Chief designer took “Human-Centered
Design and Innovation” at Stanford d.school
• Solution: Designing MRI machine  Redesign
and humanize the experience for kids (getting
young patients safely and willingly through an
MRI scan)
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GE’s “Adventure Series” MRI for Kids
Link
GE's Adventure Series redesigns imaging
equipment including MRIs, X-ray machines and CT
(Link) scanners like the pirate-themed machine pictured
here
to make
the procedures less scary for kids. Entrepreneurship - 15
© Minder
Chen,
1996-2014
Observation: Learning From Nature
• Burs of Burdock
• Velcro is a company that produces the first
commercially marketed fabric hook-and-loop
fastener, invented in 1948 by the Swiss
electrical engineer George de Mestral.
仰觀於天，俯窮於地  生物仿生
© Minder Chen, 1996-2014
http://tech.qq.com/a/20100519/000136_1.htm
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Do Observations in the Field
• Use observations in the field to spot
contradictions of what you see and what you
expect.  Dig deeper
• Genchi Genbutsu (現地現物): “Going to the
source to see for yourself.” (The Toyota Way, p. 40)
• Empathy means challenging preconceived
ideas and setting aside your sense of what you
think is true in order to learn what is true.
• “It’s not what you don’t know that get you into
trouble. It is you know for sure that ain’t so.”
-- Mark Twain.
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Swiffer – P&G and Contiuum
• “There has got to be a better way to clean a floor.
Current mops are the cleaning equivalent of the horse
drawn carriage – where’s the car?”
Procter & Gamble’s 2nd most
popular consumer product.
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Field Research Findings of Mopping the Floor
A team of ethnographic researchers set out to watch
how people cleaned their kitchen floors, and they
discovered:
• Most people swept their floors before they mopped.
• People assemble a system of largely unbranded
products to get the job done. [ user-generated
innovation, wisdom of the crowd ]
• Mops worked mostly by the adhesion of dirt to the
mop and people seemed to spend almost as much
time rinsing their mop as they did cleaning the floor.
• People wore old clothes when they were cleaning
because it was a dirty job.
Source: http://continuuminnovation.com/work/swiffer/
© Minder Chen, 1996-2014
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Meet Jeff
• Jeff also brought to Pfizer Consumer Products a set of
beliefs drawn from his design background: first, that
innovation should begin with a deep understanding
of customers’ everyday lives and an ambition to make
them better, and secondly, that innovation could ‘‘be
learned as a discipline – just another important
dimension of what it takes to lead healthy growing
companies.’’
• Assembled a cross-functional team to ‘‘follow customers
home’’ – to eat with them, work with them, and basically
be involved in all aspects of their lives. The team made
thousands of observations, as they searched for
emergent patterns. Throughout their research the team
focused on one question: ‘‘What could we be doing for
the consumer that would really make their lives
materially better?’’
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In Your Pocket
• They observed that almost every consumer health
product in use had been designed with the idea of the
home medicine cabinet in mind. This focus forced
consumers to use various stopgap solutions for
carrying their health care products with them on the
go.  Portable health care products
• Quickly explored ‘‘In Your Pocket’’ formats for each
of their existing brands
• Portable products generated five to ten percent
incremental revenue for the participating brands right
from the start and was soon projected to become a
$500 million category for Pfizer (contributing to the
one of the highest consumer product company
valuations on record when the division was sold to
Johnson & Johnson in 2006).
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Listerine PocketPaks
• Addressing the consumer need for an easy-to-use,
portable product that delivers a cleaner, healthier
mouth -- a real solution, not a mask for bad breath.
• $150 Millions first year sales
• Original idea was based on a confection
technology developed in Japan. (i.e., Open
innovation
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The Startup Owner’s Manual
• A startup is a temporary
organization designed to
search for a repeatable and
scalable business model
(under extreme uncertainty).
- Steve Blank, The Startup Owner’s Manual
Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM
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The Lean Startup Method
•
•
•
•
•
Entrepreneurs are everywhere.
Entrepreneurship is management.
Validated learning.
Build-Measure-Learn.
Innovation accounting.
– Eric Ries, The Lean Startup: How Today's
Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses, 2011.
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•
•
•
•
•
•
Source: http://businessmodelgeneration.com/canvas
© Minder Chen, 1996-2014
Describe
Design
Invent
Validate
Pivot
Discuss
Video
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Lean Canvas
© Minder**https://leanstack.com/LeanCanvas.pdf
Chen, 1996-2014
Source:
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Quick (Low-Fidelity) Prototyping
Think with your hands.
Building to think.
Fail often to
succeed sooner.
• Read the IDEO Difference (link)
© Minder Chen, 1996-2014
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Ptototypes
• Eric Ries, author of The Lean Startup, calls such a
prototype a minimum viable product, or MVP—
representing the least amount of effort needed to run
an experiment and get feedback.
• Creativity requires cycling lots of ideas. The more you
invest in your prototype and the closer to “final” it is,
the harder it is to let go of a concept that’s not working.
• Prototyping quickly and cheaply also allows you to
keep multiple concepts alive longer.
• Boyle’s Law (named after one of IDEO’s master
prototypers, Dennis Boyle): never go to a meeting
without a prototype.
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What Is Pivot?
• Pivot: A change to business model component
based on customer feedbacks. A pivot is not a
failure.
• Pivot is a structured course correction designed to
test a new fundamental hypothesis about the
product, strategy, engine of growth, etc.
– Eric Ries, The Lean Startup, 2013.
• Pivots are vision driven.
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BioIQ.Com Case Study
Video: https://bioiq.com/meet-dave
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What
How
Who
Cash Flow
Watch this video
Source: Alexander Osterwalder & Yves Pigneur, Business Model Generation (Preview version), 2009.
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太肯的機能運動襪
•年賣1800萬 運動襪 跑出商機
• https://www.titan-tech.com.tw/static/aboutus
•擁有亞洲頂尖研發團隊之人員共同開發
許景泰
– 臺灣師範大學 運動科學研究所
– 國際生物力學學會
– 台灣運動科技發展協會
(link)
Source:
© Minderhttp://www.appledaily.com.tw/appledaily/article/finance/20140324/35720083/
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Biomechanics生物力
「就是一種希望“活用生物力學，創新運動科技”的
執著，襪子是腳與鞋的唯一介面，全世界那麼多的製
鞋大廠不惜耗費鉅資研發鞋類，但卻很少有人重視襪
子！」
-相子元教授
https://www.titan-tech.com.tw/truestory/research3
Video:
https://www.youtube.com/watch?v=ndEnngIOxCI
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Pressure
https://www.youtube.com/watch?v=dldpSlkPLew
https://www.titan-tech.com.tw/sport_socks/low_arch_pro_basketball_socks
© Minder Chen, 1996-2014
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Source:
Link
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電子商務和服務
•這幾年台灣電子商務領域的成功創業案例，如果
仔細推算，全部都經營自有品牌、而且有自己的
官網。
•從作部落格口碑行銷廣告的達摩媒體，到作電子
商務價格數據平台的紅門互動，再到專業運動襪
品牌太肯科技，許景泰七年期間創辦三家公司，
單從產品看彼此相關性不高，不過熟悉網路產業
的明眼人一看就知道，這樣的創業路徑，全都圍
繞著電子商務的核心，一層一層往上作。
•在網路上，你基底要做厚，這也就是服務成本。
一開始就將服務做到精細，把一千個會員做好，
他就會跟別人講，幫你宣傳。
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EatWell
EATWELL won first place at the 2014
Stanford Design Challenge
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EatWellSet.Com
http://www.eatwellset.com/#!features/cf1a
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Steve Blank, “Why the Lean Start-Up Changes Everything,” HBR.
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Learning and Assumptions Testing
Large Company: Execute
© Minder Chen, 1996-2014
Start-Up: Search
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Lessons Learning
• The search for the business model is the front
end of the startup process
• The goal is to find a repeatable/scalable model,
and then execute
• Customer and Agile Development are the
processes to search and build the model
• Execution requires operating plans and
financial forecasts
• Product management/development is the
process for executing the model
• This is true in the smallest startup or largest
company
http://steveblank.com/2012/03/05/search-versus-execute/
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研發成果萌芽計畫
目標
 起點：發現或發明
 補助精神：
 縮小研發發現到商業化之間的鴻溝
 同步發展技術與事業
 理想終點：準備好推出具投資吸引力的新創事業
(Fundable Startup)
http://germination.stpi.narl.org.tw/
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© Minder Chen, 1996-2014
http://slideplayer.us/slide/258868/
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Stagegate Model:
Innovation
Pipeline (Funnel)
Innovation
Pipeline
POC: Proof of Concept
USP: Unique Selling Proposition
Source: http://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_innovation_management_jul07.pdf.pdf
© Minder Chen, 1996-2014
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Innovation Arithmetic
• Build up the pipeline
• Quantity matters
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林福坤 at Amgen
“ Researchers should never
be scared away from
challenging and interesting
projects just because others
think them impossible. ”
– Dr. Fu-Kuen Lin
© Minder Chen, 1996-2014
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