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 Preparing presentation and Demo
1:15 – 2:30 Lab/Standup/Organize for Shareout – Work on your presentation for the video, slides for the demo, demo code and QUIZ (BEFORE AND AFTER USER SCENARIO)
2:30 – 3:00 Good Pitching skills - Examples, Chasm 2,
3:00 – 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
Elevator Pitch, Business Model Canvas 3, backend, build app scaffolding,
Pitch video, Revise MVP
All teams pitch and review, MVP prototype
Pitch and demo to VCs, Executives, Entrepreneurs

4. 1:10 – 1:15 Preparing presentation and Demo (BEFORE AND AFTER USER SCENARIO)

5. Your VIDEO Presentation Format: 5 Minutes
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.
Problem
Describe the pain of the customer (or the customer’s customer), with an actual “user” tell a story
Start a user scenario (STORY), use quotes
Outline how the customer addresses the issue today.
Solution
Show your company’s value proposition to make the customer’s life SIGNIFICANTLY better
Continue the scenario, have use cases.
Why now
Set-up the historical evolution of your category.
Define recent trends that make your solution possible.
Market size (SHORT)
Identify/profile the customer you cater to.
Calculate the TAM (top down), SAM (bottoms up) and SOM.
Competition Matrix, Describe Landscape
Show competition matrix
List all your 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

6. Your LIVE DEMO Presentation Format: 4 Minutes
Company Name, ELEVATOR PITCH
Introduce the company with your elevator pitch KJ
We did X # of interviews, processed and prioritized what we heard and shared this diagram back with our target users for feedback”
SLIDE with LARGE picture of your KJ
Walk through KJ, emphasizing top 3 problems
DEMO
REMEMBER: user scenario with problem from video
Now we will show you how we addressed “KJ SUMMARY STATEMENT”
Run through user scenario, POINT OUT WHERE YOU ADDRESS TOP 3 PROBLEMS
Summary:
You saw how we addressed “KJ SUMMARY STATEMENT”
Sum up your product with a BANG the judges will remember (Why the time is now, why this is UNIQUE, why you are the only team who could possibly do this…)
Presentation must be saved & uploaded as a PDF ONLY!!

7. 1:15 – 2:30 Lab/Standup/Organize for Shareout – Work on your presentation for the video, slides for the demo, demo code and QUIZ (BEFORE AND AFTER USER SCENARIO)

8. 2:30 – 3:00 Good Pitching skills - Examples, Chasm 2,

9. Pitching Mistakes

10. EXTRA CREDIT: Selfies Attend Design Clinic Finals – Innovation Award FRIDAY April 8 4-6pm!!

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

12. Minimal Viable Product

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

14. Minimal Viable Product

15. Who is the FIRST target, specifically

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

17. Marketing?

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

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

20. 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.

21. 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

22. Adoption of New Technologies

23. 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

24. 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

25. 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.

26. 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)

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

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

29. 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

30. 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

31. 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

32. 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

33. 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

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

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

36. 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?

37. 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

38. Where does the MVP fit in?

39. 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.

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

41. Assignment Summary
Assignments: #22: 5 Year Top Line Revenue Model & Timeline #23: Slide Deck Pitch and 5 minute video of team giving pitch #24: Draft Slide Deck for Final Presentation (PDF) and Demo

42. 3:00 – 4 Share out (closed computer, phone)

43. Assignment Summary
Assignments: #22: 5 Year Top Line Revenue Model & Timeline #23: Slide Deck Pitch and 5 minute video of team giving pitch #24: Draft Slide Deck for Final Presentation(PDF) and Demo

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