1. UMSI Entrepreneurship
Nancy A. Benovich Gilby
Ehrenberg Director of Entrepreneurship
Clinical Associate Professor 
School of Information
2016 Winter UMSI 363 Class #9

2. Today 1:10 – 1:15 Midterm Discussion Moving Forward
1:15 - 1:30 – Backend as a service: Parse
1:30 – 2:30 Lab/Standup/Organize for Shareout – Add Data model, information architecture for back end data for your app, additional functionality, get help if struggling with your assignment last week. QUIZ, Fill out MakeHealth Bootcamp survey
2:30 – 2:45 Chasm 1 & Elevator Pitch
2:45 – 4 Share out (closed computer, phone)

3. 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? Skeleton of Swift App
KJ Affinity Diagram, Design Thinking for initial brainstorming, wireframe, xcode storyboard layout to wireframes, test with users
Draft pitch, Dataset, backend, build app scaffolding,
All teams pitch and review, MVP prototype
Pitch and demo to VCs, Executives, Entrepreneurs

4. Midterm Discussion Moving Forward 1:10 – 1:15

5. Midterm Dissatisfaction
Complete the midterm, including extra credit, re-submit
Complete additional exercise, similar difficulties, submit

6. Parse: Back End As a Service/Data Model 1:15 - 1:30

7. Full Stack – Parse! mBaaS

9. Parse Backend – More on Parse

10. We’ll be using User Class and Custom Classes for this week’s assignment

11. Available Data Types to Store

12. You will see these extra fields in your parse app data store but you can not edit them, they are used for a variety of things including analytics

14. Share Out Team name Target user description
What is their urgent problem?
What is your value hypothesis?
Walk through your KJ
Show User Scoring
Group discussion

15. Record and Write Top Quotes 2-3 for each interview, 25-30 QUOTES TOTAL
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

16. Sample Wildfire KJ Diagram

17. Sample Wildfire KJ Diagram: top 1 sectionscc

18. Sample Wildfire KJ Diagram: top 3rd

19. How to Present a KJ Diagram (for customer feedback)
Put the KJ diagram on the wall. Explain to the customer that this is an affinity diagram made from the most urgent, direct quotes your team heard from conversations with a group of target users.
Point to and read the Black “What” statement in the upper left of the KJ Diagram
What we heard from target users was …. Point to and read summary statement in Red on the upper right
The details backing this are…. Walk through and point to the flow, starting with the left-top most Blue level statement, point to the next blue level use language:
<blue 1 statement> “leads to” -> <blue 2 statement>
<blue 1 statement> and <blue 2 statement> “mutually affect each other” <->
<blue 1 statement> |-| “is in contrast to” <blue 2 statement>
The top priorities are:
Point to and read the top priority Red XX, Red level statement, repeat with Blue \\\ 2nd priority Red level statement then Green … 3rd priority Red level statement
These priorities support, point to and read the upper left Red summary statement.
Point out direct quotes from the customer you are presenting to.
Ask them “did we hear you correctly? Is there anything we are missing?”
Thank the customer

20. Your VIDEO Presentation Format: 4 Minutes
Competition Matrix, Describe Landscape
List competitors
List competitive advantages
Why you as a team believe (or not)
KJ, quotes,
What you’ve learned
What’s Next and Team.
Company timeline with development roadmap
Founders, why great team LIVE:
Name, Elevator pitch:
KJ Wakthrough
Solution And demo
Demonstrate your company’s value proposition to make the customer’s life better.
(Video, walk through user scenario, addressing top items from Problem)
Provide use cases.
Questions
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
User scenario, use quotes
Describe the pain of the customer (or the customer’s customer).
Outline how the customer addresses the issue today.
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.

21. Lab/Standup/Organize for Shareout – Add Data model, information architecture for back end data for your app, additional functionality, get help if struggling with your assignment last week. QUIZ, Fill out MakeHealth Bootcamp survey 1:30 – 2:30

22. Chasm 1 & Elevator Pitch 2:30 – 2:45

23. ”Build Something for SOMEBODY Instead of Everything FOR NOBODY" - Geoffrey Moore in “Crossing the Chasm”

24. Minimal Viable Product

25. IDEATION: Customer Development
Customer Search
Customer Validation
Week
Problems
Solutions

26. Minimal Viable Product

27. Who is the FIRST target, specifically

28. Chasm Model: The People
The market waiting and watching…FUD!!

29. Marketing?

30. Aggregate sales, both past and present for products or services
Market?
Aggregate sales, both past and present for products or services

31. “taking actions to create, grow, maintain, or defend markets”
Marketing
“taking actions to create, grow, maintain, or defend markets”

32. MARKET!!! A set of actual or potential customers
For a given set of products or services
Who have a common set of needs or wants, and
Who reference each other when making a buying decision.

33. Market Segment?
Natural market boundaries within an aggregate of current and potential sales (boundaries around customers or users who reference each other) A group of people you can wrap your arms around and count

34. Adoption of New Technologies

35. Classical Diffusion Theory
When faced with discontinuous innovations, customers fall into five broad categories along an axis of risk-aversion.
Everett Rogers (1962)
Innovators Early Adopters Early Majority Late Majority Laggards

36. Technology Adoption Life cycle
In high-tech, the categories have been given more specific names (Geoffrey Moore).
Geofferey Moore 1991
Innovators Early Adopters Early Majority Late Majority Laggards
= Technology Enthusiasts
= Visionaries
= Pragmatists
= Conservatives
= Skeptics

37. Pragmatists create the dynamics of market development.
Technology Adoption Life Cycle – Types of Consumers Discontinuous Innovation
Innovators
Early
Adopters
Early Majority
Late Majority
Laggards
Techies:
Try it!
Pragmatists:
Stick with the herd!
Conservatives:
Hold on!
Skeptics:
No way!
Visionaries:
Get ahead of the herd!
Pragmatists create the dynamics of market development.

38. 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)

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

40. Point of Peril – the Chasm
Innovators
Early Adopters
Early Majority
Late Majority
Laggards

41. Techie Innovators Key Role: Gatekeeper to the Early Adopter
Primary Motivation:
Learn about new technologies for their own sake
Key Characteristics:
Strong technical aptitude
Like to test new products
Can ignore any missing elements
Like to help
Want no-profit pricing (preferably free)
Key Role: Gatekeeper to the Early Adopter

42. Early Adopters - Visionaries
Primary Motivation:
Visionaries
Highly motivated, driven by a revolutionary breakthrough
Key Characteristics:
Visionary executives going ahead of the herd
Driven by competitive advantage
Will help pay for new paradigm
Demand “what ever it takes” commitment
Rely on their own judgment
Strategic thinkers, not from technology itself
Think project not product
Key Role: Fund the development of the early market

43. Early Majority Primary Motivation: Key Characteristics: Pragmatists
Gain sustainable productivity improvements via evolutionary change
Key Characteristics:
Astute managers of mission-critical applications
Understand real-world issues and tradeoffs
Focus on proven applications
Like to go with the market leader
Must have complete whole products
Insist on good references from trusted colleagues
Key Role: Bulwark of the mainstream market

44. Four Value Propositions
Go ahead of the herd for competitive advantage.
Go ahead of the herd to fix a broken business process.
Go with the herd to create new infrastructure.
Go after the herd to get better values.
Early Majority

45. Why: Pragmatists Don’t Trust Visionaries as References!!!
New & revolutionary
Unique functionality
Horizontal references
Willing to take risk
Want rich tech-support
Revolutionary processes
Tolerate bugs
Standard
Third party supporters
Vertical references
Little risk
Great quality of support
Enhance established processes
Bug free

46. How do you Cross the Chasm?
????

47. How Do You Cross the Chasm?
Early Market
Chasm
Bowling Alley
Tornado
Main Street
Total
Assimilation
Go Bowling!!

48. Facebook Bowling Alley Example
Adoption happens by groups who reference each other
Company
Aunts and Uncles
Grand
Mas and Pas
Middle
School Students
Middle Age
Workers
Mom’s and Dads
High
School
Students
First Time Workers
Twenty Some
things
College Students
How hard did Facebook need to work to get the Early Majority?
Where does the Early Majority begin here?

49. To WIN the Niche Market Pick on someone your own size, pick carefully
What “features” do we need to build?
Product Development’s role is to help determine and execute the whole product
For a TARGET CUSTOMER
MUST HAVE, COMPELLING
Reason to Buy

50. Where does the MVP fit in?

51. GET 3 Referenceable Customers
If I could leave you with the most important things I’ve learned over 20+ years:
GET 3 Referenceable Customers
Strategy & plan must be based on the REALITIES of where you are in the adoption cycle of your product in the market
Development’s role is to help determine and execute the whole product (Development = Product Management + Engineering)
Engineering is responsible to find a solution, within a given time window, determine how much the solution costs
Once a plan is agreed, engineering must ship on time, every time.

52. 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.

53. ”Build Something for SOMEBODY Instead of Everything FOR NOBODY" - Geoffrey Moore in “Crossing the Chasm”

54. Assignment Summary
Assignments: #19: 3 Business Model Canvases #20: Project Name, Elevator Pitch, Logo #21: Back/End to Parse, Data model/Information Architecture

55. Lean Model Canvas

56. Share out (closed computer, phone) 2:45 – 4

57. Share Out Team name Target user description
What is their urgent problem?
What is your value hypothesis?
Walk through your KJ
Show User Scoring
Group discussion

58. Assignment Summary
Assignments: #19: 3 Business Model Canvases #20: Project Name, Elevator Pitch, Logo #21: Back/End to Parse, Data model/Information Architecture