UMSI 363 Nancy A. Benovich Gilby Busting Myths and Pursuing Information Innovations with Mobile Apps in SWIFT Week 12 Nancy A. Benovich Gilby Ehrenberg Director of Entrepreneurship Clinical Associate Professor  University of Michigan School of Information 650-539-8376 nabgilby@umich.edu

Today Design Thinking with the Business Model Canvas Continuing your project Your Project has gone through 8 weeks: You should have 18 interviews, KJ affinity diagram, Competition matrix, Wireframe, a start on your project app code, feedback on the above from your target users MVP 1 as either high fidelity prototype or swift/interface builder Feedback on Pitch Deck, Prototype, with 3 users, revise, score Share out: Chasm 2 with Elevator Pitch, Learnings from revenue model, average score from reviews, any 10 out of 10 urgency quotes? Business Model Canvas

Team Project Overview Form your team, establish ground rules, Interviews round 1, build app scaffolding, interview 6 target users Review Customer Development Round 1 and Potentially Pivot, Competition, sketch/wireframe, interview 6 target users complete a full SWIFT/PARSE scaffolding to use in developing your apps MVP1 Review Customer Development Round 2, Pivot, Competition 2, sketch/wireframe,, interview final 6 target users (18 total) Review Customer Development Round 3, Build and test KJ Affinity Diagram, wireframe, competition matrix test with users, for feedback Draft pitch, MVP prototype 1 (high fidelity prototype or Interface builder/Swfit) All teams pitch and review, Top Line Revenue Model MVP prototype 2, Business Model Canvas, Pitch and demo to VCs, Executives, Entrepreneurs

Feedback to Prepare for Final Pitch Demo Most of you need to work on incorporating an opening scenario, which sets an urgent narrative, then follow that scenario through in your demo Remember, the most convincing presentations and demos (convincing that your team and your proposition is most likely to be used and to make an impact on those users) will be scored the highest. Make your presentations as indisputable as possible......QUOTE YOUR USERS!!!....use them in building your case!!!

Prepare Your Pitch Deck for Questions Appendix KJ Additional customer quotes, testimonials Scores (Importance/Satisfaction from Demo scoring) Anything else that strengthens your proposition Market data Market landscape News/Blog articles in your area

Prepare for Share Out: KJ and Code Remind everyone” State your target user, top 3 problems, Elevator pitch Average Scores Each team will huddle for 15 minutes to review their score sheets and prepare to present their Elevator Pitch and Summary Scores STANDUP: Tell me, show your scrum board How are you splitting the work on your Demo MVP and code MVP What you did the week before to get the interviews, competition, wireframe done (if you weren’t in class last Friday) What you will do this week, What obstacles you have

Share Out target user description what are their urgent top 3 problems (from the KJ)? What is your elevator pitch Present your average scores Elevator pitch – Did they understand what you do, do they want to hear more? Pitch deck – Would they buy/use/try based on your pitch? Demo – Overall Product Importance, Satisfaction Group discussion

Try the Elevator Pitch (Positioning: Create and Occupy a Space in the Target Customer’s Head) Format Example Intuit Bill Pay For (target customers— beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application). For For the bill-paying member of the family who also uses a home PC Who are dissatisfied with Who is tired of filling out the same old checks month after month Our product is a Quicken is a PC home finance program That automatically creates and tracks all your check-writing Unlike Unlike Managing Your Money, a financial analysis package We have assembled Our system is optimized specifically for home bill-paying.

Top Line Revenue Exercise

Hockey Stick The VC Revenue Curve Expectation: What is Success?? Big Enough Idea That It’s not Just Another Mouse Trap Users/ Revenue Go public, everyone makes millions $100M In the Tornado, can barely keep up with customer growth Everything is going according to plan First batch of users 1 3 5 Time (years)

Point of Peril Users/ Revenue Time Oh no, What’s wrong, I’m scared First batch of users Time

How do I get North of $60M in 5 years? Did you use: Platform with multiple apps Multiple products Multiple geographies All of the above Ridiculous assumptions or adoption ramp?

MYTH #11 MYTH: I need a business student to figure out the business model, revenue model

Smart Money Your own “capital” is the best, at least to get an MVP and traction Andy Marcuvitz? Angels? Venture Capitalists? What you should look for: Operational experience in your area Signs that they get out of their own “building”, have the desire to dig in and understand where a market is going FEEDBACK FROM FOUNDERS OF PORTFOLIO COMPANIES Who will sit on your board, attend board meetings

Incorporation LLC? C Corp, S Corp B Corp? When to incorporate?

Patents? When should I look to patent? What can I patent? Utility Patent Design Patent Get it from the horses mouth “Patent Officer, Patent Attorney” next week!

Lean Startup Circle “A core component of Lean Startup methodology is the build-measure-learn feedback loop.”

Value for Who?

Business Model Canvas The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model.

Lean Model Canvas

Where to Download Original - http://www.businessmodelgeneration.com/downloads/business_model_canvas_poster.pdf Lean Model Canvas https://drive.google.com/previewtemplate?id=16uOd158UzJM9oqGWgJOtbppzGNPmZ4fWMSV6_xBz3Z8&ddrp=1# (Lean Business Model Canvas Google Draw template By Lucas Rodriguez Cervera) How to on Lean Model Canvas https://leanstack.com/LeanCanvas.pdf

Assignments Reading High Stakes, No Prisoners: A Winner’s Tale of Greed and Glory in the Internet Wars pgs 69-83 Ice Cream Social: The Struggle for the Soul of Ben and Jerry’s Chpts 3, Epilogue #29 Elevator pitch, project name, logo #30 Develop a revenue model and a timeline slide that shows you will reach $100M with your idea in 5 years (start with template) #31 Team: Test Elevator Pitch, Pitch Deck, Prototype, with 3 users, revise, score #32 Update your trello board