UMSI Entrepreneurship Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor  School of Information 650-539-8376 nabgilby@umich.edu UMSI 663 Fall 2015 10/16/2015

Team Project Overview Project Week: Form your team, establish ground rules, Interviews round 1 Review Customer Development Round 1 and Potentially Pivot, Competition, Market size Review Customer Development Round 2, Pivot? Review Customer Development Round 3, Pivot? KJ Affinity Diagram, final wireframe test with users, Design Thinking for initial brainstorming Draft pitch, Dataset, backend, build app scaffolding, All teams pitch and review, MVP prototype Pitch and demo to VCs, Executives, Entrepreneurs

Today is a crazy day (Homecoming Week) Second Standup - Coordinate Share Out Start Share Outs – Should you pivot? 2:15-3 Case Study from an Agile Project Exam preparation 3-4

Are you refining your target user MAKING IT SMALLER Are you refining your target user MAKING IT SMALLER? Are you hearing similar feedback? Team gelling? How did it go this week? Correct on target users? Problems? Did you succeed in NOT sharing your value hypothesis?

The Sequoia 10 Competition Product Business model Team Financials List competitors List competitive advantages Product Product line-up (form factor, functionality, features, architecture, intellectual property). Development roadmap. Business model Revenue model Pricing Average account size and/or lifetime value Sales & distribution model Customer/pipeline list Team Founders & Management Board of Directors/Board of Advisors Financials P&L Balance sheet Cash flow Cap table The deal http://www.sequoiacap.com/grove/posts/6bzx/writing-a-business-plan We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed. Company purpose Define the company/business in a single declarative sentence. Problem Describe the pain of the customer (or the customer’s customer). Outline how the customer addresses the issue today. Solution Demonstrate your company’s value proposition to make the customer’s life better. Show where your product physically sits. Provide use cases. Why now Set-up the historical evolution of your category. Define recent trends that make your solution possible. Market size Identify/profile the customer you cater to. Calculate the TAM (top down), SAM (bottoms up) and SOM.

Your Presentation Format: 7 Minutes Competition List competitors List competitive advantages Product Detail & Demo Product line-up (form factor, functionality, features, architecture, intellectual property). Development roadmap. Team Founders & Management Board of Directors/Board of Advisors http://www.sequoiacap.com/grove/posts/6bzx/writing-a-business-plan We like business plans that present a lot of information in as few words as possible. The following business plan format, within 15–20 slides, is all that’s needed. Company purpose Define the company/business in a single declarative sentence. Problem Describe the pain of the customer (or the customer’s customer). Outline how the customer addresses the issue today. Solution Demonstrate your company’s value proposition to make the customer’s life better. Show where your product physically sits. Provide use cases. Why now Set-up the historical evolution of your category. Define recent trends that make your solution possible. Market size Identify/profile the customer you cater to. Calculate the TAM (top down), SAM (bottoms up) and SOM.

Design Thinking

Competition Landscape: Gartner Magic Quadrant

Competition Matrix: Rack and Stack

Market Size TAM = How big is the universe SAM = How many can I reach with my sales channel Target Market = who will be the most likely users/customers Target Market

Who is the FIRST target, specifically

KJ Method (Jiro Kawakita) and Questioning Obtain a 360 degree perspective of the actual environment in which the product or service would be used. You explore through: Open-ended inquiry Process observation Participant observation Build a team united around what’s meaningful to the users from a variety of perspectives….. REMEMBER DIVERSITY IN TEAMS……THIS IS WHY IT IS VITAL FOR INNOVATION

Record and Write Top Quotes 2-3 for each interview Black text, all caps, large, easily readable from 6 feet away Traceability code: allows trace back to the source for the team but respects confidentiality

Prepare Share Out: Customer Development Round 1 Each team will huddle for 15 minutes to identify quotes from interviews to share with the group. Each person should have 2-3 yellow sticky notes with direct quotes, written in the KJ format. SAVE THOSE!!! Each person should try to share quotes with their team that reinforced or negated the target user or problem If possible, each team should plan to play ONE recorded quote from their interviews in the Share Out for the class. Decide as a team if you need to pivot target user, urgent problem, value hypothesis some or all of the above!! Teams should identify questions about the process so far they might want to ask Nancy, other teams, or lab assistants. FIRST STANDUP: Tell me What you did last week to get the interviews done What you will do this week to get 3 each, 6-9 more done What obstacles you have

This week assignment #10: Final Round 1.Target User 2.Urgent problem 3. Value Hypothesis (may be revised after 3 rounds of interviews, but not shared yet!! ) Each person interviews 3 target users, records, writes 2-3 Post-IT notes on each interview Record – while recording ask permission, record on your phone, camtasia Follow the KJ Method, takes about 10-15 mins per interview: Target User Bullets Urgent Problem Revised Value Hypothesis One QUOTE recording clip (not the whole recording) from each person that so far best affirms (or not) your urgent problem Write in the comments whether you have had at least 7 interviews with similar target users that are saying similar things about their urgent problems/areas of most meaning

Share Out Team name Target user description What is their urgent problem? What is your value hypothesis? Each team (plays) ONE quote that either strongly support or negates their value hypothesis Group discussion change target user, change problems, both, value hypothesis

Agile Case Study goals for using agile on your project what tools you evaluated what tools you used and examples of what was recorded for each sprint did you do daily standups? Did you use points and calculate burn down charts? Did you determine your team velocity? If so, what was it? Did you use planning poker? Did you follow diligently, for how long? And if not, what was the cause of not using it as strictly (too much overhead, not even value....)

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