Lean Startup Approach
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1 Lean Startup Approach to Design Impact-Driven Education Projects ASEE North Midwest Section Conference 2017 September 29, :25 4:45 pm Karl A. Smith Purdue University and University of Minnesota Two Parts to Innovation* (including Educational) 1. Advancing the science/technology [research] 2. Finding a repeatable business model Current efforts focus on #1 Successful efforts require both *Innovation - the adoption of a new practice in a community. Denning and Dunhams (2010) The Innovators Way. MIT Press 2 1
2 Lean Startup Three Steps to Taking an Idea to a Business Steve Blank, Lean LaunchPad Developer 1. Frame Hypotheses Frame Hypotheses Business Model Canvas Partners Activities Product / Service Get/Keep/ Grow Customers Resources Channel Costs Revenue 2
3 2. Test Hypotheses Frame Hypotheses Test Hypotheses Business Model Customer Development 3. Build Incrementally & Iteratively Frame Hypotheses Test Hypotheses Build the product Iteratively & Incrementally Business Model Customer Development Agile Engineering 3
4 I-Corps for Learning History June 2013 June 2014 June 2015 June 2016 Pilot: Jan-Feb 2014 Cohort 1: Jan-Feb Cohorts + Pilot 73 Teams 234 Participants 18 Instructors 3 Evaluation Partners Cohort 2: Jul-Aug 2015 Cohort 3: Jul-Aug week Program Educational Innovation Customer Discovery Kick-off Workshop 5 Online Sessions Lessons Learned Workshop 100 Interviews Readiness for Sustaining & Scaling? 4
5 Key Features of I-Corps for Learning Curriculum Business Model Canvas Customer Discovery Agile Engineering Course Specific Outcomes Assessment Instruments Syllabus Iterations Balanced Teaching Team Diverse Participant Segments Teams Composition Current Initiatives Awareness Sessions Introduction to I-Corps L (SMART START) National Cohort 1-3 hours 2 weeks 7 weeks Face-to-Face Online Introduction to core features of the Lean Startup Process Focus on the importance of sustainable scalability at the early stages of concept development Online Hybrid Opportunity to develop proof-of-concept evidence towards sustaining and scaling Focus on Value Proposition + Customer Segment fit Hybrid Opportunity to determine innovation readiness for sustainable scalability Immersion in the Lean Startup Process Frontiers in Education (FIE) October 2017, Indianapolis, IN *ASEE Annual Conference June 25-28, Columbus, OH? (traditionally Jul-Aug) 5
6 TM# 9/26/2017 Mistake #1 Building Something Nobody Wants! TOP 10 1 Building something nobody wants # # 2 Score: 153 Score: % of Tot. # 10 # 9 STARTUP MISTAKES # 8 # 7 # 6 Hiring Poorly 18% of Tot. Score: 98 # 5 # 3 Lack of Focus Score: % of Tot. 13% of Tot. 4 # Fail to execute Sales & Marke ng 100# First#Hits# 8. Spending Too Much Money 9. Failing To Ask For Help 10. Ignoring Social Media 18 (2,1%) 12 (1,4%) 6 (0,7%) 5. Not Having The Right Co-Founders 6. Chasing Investors, Not Customers 7. Not Making Sure You Have Enough Money 66 (7,9%) 45 (5,4%) 28 (3,3%) 6
7 That s why we start with these Customer Segments (Does Anyone Care?) Who are your most important customers? What job do they want to get done? 7
8 Value Propositions (Why Do They Care?) What customer problems are you helping to solve? What customer needs are you satisfying? The Value Proposition A value proposition is a promise of value to be delivered. It is a clear statement that: explains how your innovation solves customers problems or improves their situation (relevant), delivers specific benefits (descriptive, measurable), tells the user or buyer why they should use it or buy from you and not from the competition (unique)
9 Features vs. Value Propositions Features Weak Value Propositions Strong Value Propositions Fun & Engaging Faster, Cheaper, Better Relevant, Significant & Testable Product Benefits Field-specific skill building Getting students involved in a Service Learning project Increase number of females and minorities in Manufacturing Tech program 9
10 Customer Segments Not Customer Segments Vague Customer Segments Clear Customer Segments Buildings, Organizations Broad Groups of People Very Specific Job Titles, Very Specific Archetypes/Personas Colleges Faculty Newly Hired, STEM Faculty Customer Segments (CS) and Value Propositions (VP) Alignment What makes for a compelling value proposition? o What problem are you solving/need are you serving? o How? o For whom? 10
11 Value Proposition Customer Segment Ad Lib CS Customer Segment: Which people? Be specific! would pay to Value Proposition: Solve this problem VP in a way that Verb (reduces, increases, etc.) a specific Customer Pain or Gain (unlike ) Extra Credit: How is it different than the competition? 61: JUR Press 11
12 Acknowledgments We acknowledge the National Science Foundation (NSF) for funding (NSF DUE , DUE , NSF DUE , and DUE ). Thank you! An e-copy of this presentation will be posted to: ASEE North Midwest Section Conference 2017 September 29, :25 4:45 pm Karl A. Smith Purdue University and University of Minnesota 12
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