Fail Fast, Fail Cheap and Learn A Lot Be the Entrepreneur Bootcamp Proof of Concepts Fail Fast, Fail Cheap and Learn A Lot Be the Entrepreneur Bootcamp

Focus of today’s discussion Overview of Innovation Process Focus of today’s discussion

Are you ready for success? By Demetri Martin http://www.intellectualstimulations.com/what-success-really-looks-like/

A way to frame a large complex problem in manageable chunks The minimum amount of resources that can be expended to test a specific aspect of feasibility A POC is A minimum viable product A full scale implementation A full concept test Appropriate for transformational investments A POC is not

Before you begin POC planning Know your purpose Set your boundaries Identify your barriers Prioritize

An example Know your purpose: To reduce damaged melons from falling off shelf Set your boundaries: Genetic modification will not be tolerated by consumers Identify your barriers: Retailers won’t want to change display fixtures or supply chain practices

What are the biggest challenges to making this idea a reality POC Planning Cost of Capital Customer Demand Technology Maturity Strategic Alignment Barrier to Entry/Exit Partnerships "People think focus means saying yes to the thing you've got to focus on. But that's not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I'm actually as proud of the things we haven't done as the things I have done. Innovation is saying no to 1,000 things." Steve Jobs (Apple Worldwide Developers' Conference, 1997)

Identifying the barriers Does this solve a meaningful problem How large is the potential market Customer Demand What is the magnitude of investment required What are the opportunity cost of pursuing this opportunity versus others? Cost of Capital Is a group assigned to oversee this type of activity already Who is paying for this effort and what do they expect to see out of it Internal Structures

Identifying the barriers How expensive is it to get this effort started What are the regulatory hurdles involved Barriers to Entry/Exit Are we addressing an open space in the value chain Are existing players likely to work with us Partnerships Is anyone using this technology successfully already Have consumers expressed interest Technology Maturity

Building the Plan Step 1 Step 2 Step 3 Step 4 Identify the barrier that is most likely to cause the idea to fail Why does that barrier pose the biggest challenge Step 2 To overcome the barrier what would be required How will we know that we’ve overcome it Step 3 What is the simplest way to test the barrier What information would help us overcome the barrier in the future even if we can’t do it this time Step 4 Identify the questions that you need to answer Run your test and collect the data Answer your questions and celebrate success

Embracing “failure” POC success comes from answering the questions that you set out to answer The focus is on answering the questions quickly Rapid iteration can lead to competitive advantage I have not failed. I've just found 10,000 ways that won't work. Thomas A. Edison 

Summary What you end up with is almost never what you expected Trial and error work– if you learn from your mistakes Success is making incremental progress towards your goal Know your purpose and then take advantage of opportunities as they come

Questions? Private Proposal Content All Rights Reserved

Brainstorming Template 3. Opportunities w/o limitation Limitation #1 2. limitations Limitation #2 Limitation #3 1. Focus/Goal/Objective/Problem: What problem are we trying to solve? 2. limitations 3. Opportunities w/o limitation Question Generation-Recipe: How might we use Opportunity #3 to overcome Limitation #2 and achieve/remove #1? OR How might we achieve/remove #1 by using #3 without #2?