This is a nation over the last.

Two more days in jail or you can pick up.

Here.

Just for the result people.

The people who knew good about.

It was the office of the art
everyone who knew to.

Everyone not the people
that are going to hear.

About your car.

Companies or

not just the opposite.

He more right than you.

Hospitalised not just.

In this regard just why
would a news reader.

Of a.

Us consider.

Having.

Your.

Wessels go through three or maybe you
are suffering from this what you guys

are telling me that it was leadership.

Here I.

Couldn't just go.

Back and shout out if you know
you're on the losing cause for the.

Parents Are you also the US for this.

Very thing.

People resort to get everyone.

Off and drug.

Use.

This uses or.

Lose the cost of a good.

Light.

You could be certain right that's good.

But also the.

Africa which are right I don't

believe it people do that or the.

Are all this it was.

Absolutely or just.

These folks that do the rest of their.

Recent years back to.

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There is no research one on
this year's resigned for.

Love life or uses that this is one of

those.

Either one of this little this is
the really I really believe maybe.

It was what.

Was happening.

Well enough to just.

Watch it Pete is in charge but.

It is the art of his life.

That it might not work for most.

Patients here if you're like me
the most important person here and

there while it most important.

Is that it.

Should hold your.

Head what.

You thought you were a writer of or
you might even personally.

Multi-sided has.

Been your you.

Most are.

You got most of us.

Maybe this is.

First off you've got to understand the
distinction between people that pay you

for your product and people that use
the product and maybe other definitions

around that the single most important
thing is you have to develop and a live or

a compelling value proposition
to each one of your customers.

A common fun I Cor is someone will come
in and they'll recognize they have

a multi-sided business model and they'll
focus on the value proposition for one and

they think that's sufficient It's got to
be equally compelling for all sides OK if

Google search engine sucked you wouldn't
use it if the advertisers couldn't

make money from it they wouldn't advertise
Google wouldn't make money it has to be

compelling for both sides of the market.

Your business model canvas needs
to detail all the sides of your

multi-sided business model and
a common practice that we encourage and

we're going to want to see is that you
color code or somehow indicate when you

present it back to us so that we can see
the link between the value proposition for

each of your customer segments.

OK I'm going to ask Julie to speak for
a moment about how this applies

in the medical industry because it
gets a particularly interesting

there.

Have to be on this I can't
talk really loudly and

hold this because we're on camera so
this is really complicated and

what Paul is trying to articulate is that
if you don't understand the value that you

deliver to each one of these players your
model can crumble at any moment in time.

And in medical It's
especially complicated and

we're going to do at very short
scale it to just illustrate this so.

Would you guys mind coming up here a front
really quickly can I really give a big

round of applause for
my team that's being my guinea pigs.

OK So up here we have a company that has

developed an innovative
medical device right here and

in his got they have got their business
model all wrapped up they understand their

reimbursement their regulatory their
insurance they understand their Q.A. and

we've got a patient over here who is
desperately in need of this device and so

she is trying to convince this physician
that this physician needs this device and

the voice of God might reign in.

Him and not really into patients
I really don't need that.

No.

And the voice of insurance reigns in and
says you will not be reimbursed for

that amount the insurance will
only pay twenty nine ninety

nine.

There and
why can I offer you one second offer for

you discounts that will
lower the price to you from.

Now you talk in.

Now your talk and.

It also when is it going to be on
the market is it on the market.

Is this what classification is this.

It's a come.

Down this is not a class of two device
this is going to be a class three

device.

Thank you thank you guys are.

All we're trying to articulate here
is that there are a lot of peace.

Of this pot and these were the basic ones
we were trying to we missed one we missed

the reimbursement Avenue and whether or
not you're going to be a bundled code

whether or not you're going to be
an individual code what type of practice

you're in and so determines of whether or
not you can code are going to be louder so

this is a very complicated process you've
got quality assurance you've got hospital

committees that have to determine whether
or not you're there going to buy your

piece of capital equipment you have got
to provide value for each one of these

pieces and so if the hospital purchasing
Committee says no thanks you don't provide

value to us bone you're hosed you're
out of business that's why this is so

important for you guys to understand
exactly who you're talking to and

understand that hospital purchasing
committees and quality assurance are not

the same per hospital per industry sorry
you're talking to private practice are you

talking to public hospitals how
does all of this work which is

what Paul is trying to articulate with
understanding what size of your model and

providing value to each one of those

customers.

Who here believes that they're actually
part of the multisided business model

based on the thesis they have now the body
has got a multi Saudi business model I

think anybody that's in the medical
field almost certainly has a multi-sided

models Julie described back that's
probably like a walk to Cuba gone or

something really really complicated.

It would be working through that as we
go through all right we're going to.

Be much quicker.

To.

Our let's let's ask question again
we're going to go through and

show you a few more examples and I want
you all in the room to try to tell me who

you think the customer for these products
might be will start with this one.

Who's the customer.

When I hear the government is a custom
that the doctor I'm sorry I think

a government patient to be more specific.

Patient the emergency room OK
who else might be the customer.

The paramedics anybody else your insurance
companies my gosh he's getting really

fast OK.

The team is actually trying to sell
this to you I want to add anything to

that.

You're going to need a larger canvas is
it appears OK what about this one who's

the who's the customer for this.

So the patient for
sure the person using it anybody else.

Yeah my God is the the person that
used to sleep next term right.

What do you

think.

OK.

We're the team I've lost it back in
the back you want anything to that.

I'm of course That's right.

OK Again you're going to eat a bigger
canvas to OK what about this one.

Who's the customer for this.

Train cures.

OK.

I want everybody to be thinking this
through now I hope that that's what's

going through I want to Mike who
my other customers might be.

So here's the next question OK We talked
about the business thesis right Who's

your customer what's your product and
why are they going to buy it from you so

right now we want to link the value
propositions that we talked about

yesterday to the customer we're going
to try to make this linkage we here and

I Cor go across three.

Acces we think of value propositions as
being in one of three buckets they either

address panes they deliver gains or
they do jobs and all value propositions

like they're going to fit into one of
those three buckets and let's talk about

that a little bit because it relates into
customers the first was about jobs and.

The question to ask is What
is the customer trying to do

healthy remember from a couple days
ago when I first talked about this or

that a job is a process it's something
that someone's trying to accomplish

whether it's me getting out of
the house in the morning or

me getting my kids bed at night those
are examples of jobs for some more so

your value proposition could be what
jobs do you do for your customer.

I'm trying to find a cheap
flight to the Bahamas.

That's a job I'm trying to accomplish
OK my search engine may deliver that.

The next you can be
looking at would be gains.

These are improvements that people have
to have that your customers must have

maybe it's performance
maybe it's lowering cost.

I love this one reducing
the learning curve making it simpler

These are things that your customers
have to not think they'd like to have or

might be fun but must have.

So providing the required
needed gains to customers

is another example value props or
combine these together.

In the last one fact the biggest
one the one that drives

more adoption of new
products to solving pains.

Your startup if you are successful
at this program you're a startup.

And you're asking people to change their
behavior to do something different

even if it's nothing more than buying
your product to sell your competitors and

asking people to change their behaviors
on the most difficult things to do.

And so you had better deliver anough
of an advantage to that person.

That they're going to
change their behavior.

And I always tell people avoid falling
into the better faster cheaper trap

My product a better than the competitors
it's faster the better it is

cheaper the competitors that rarely
works because it doesn't deliver

enough of an advantage to get
people to change their behavior.

In fact I might even tell you
that you're better off OK.

You're better off being worse slower and
watch cheaper.

For those of you that know the innovator's
dilemma which is a wonderful book

that I think everyone should read
this detail case study after case

study after case study where that occurred
so void the better faster cheaper trap

you don't have to be all three but
be really dominate in one of those areas

look at some of the problems
that people might have.

And how do we find out problems we talked
with the other day how do you discover

people's problems is remember always you
talk to many you ask them about their

problems do you ask them if you guys
do you ask them if controlling.

Robotics with their minds is a problem.

When you ask them how do you find
out where the problems with using.

Copters in race cars and
that sort of that OK I got that.

But maybe you go past that instead of just
name as a problems what is frustrating for

them what keeps them up and I What
are they fearful of what pisses them off.

That I've used that question
before in customer discovery.

Get them on the subject say you know
what do you hate the most about this.

What makes you just so
mad you might come to work in the morning

those are the things are going
to motivate people if it's just

you know it's an annoyance you know you're
not going to be successful at that go

after the things that just really
talk people off that make sense.

And this is another type of
problem that people have.

You know we know that this is this
is the early days are remote.

Controls as a result remember before they
had the the fancy ones that's how we

substantially channels at least one
of those and you get your smile yet

when those right.

At the Rube Goldberg contraption so
any time that a business or

a person or a company is doing
something that's overly complex.

It's overly difficult there's usually
an opportunity to reduce the complexity of

this sort of mass.

So these are the axes in which value
propositions deliver value to people.

They deliver needed gains.

They overcome pains or problems.

Or they do critical jobs for people.

Like we're going to move
on to a few other things

that you have to know to
be successful business.

Some of these are going to come up in the
homework it's going to go through we're

going to find all these things for
you today so we can describe them to

understand what they are the first
one is archetypes archetypes.

Some of you have heard of that before so
you might think you know what that is

an archetype is a this isn't
got to the animation about that

it's a representation of your customer
an archetype is a fictional representation

of who your customer is it's someone
that you make up you do this.

So that you can think about
your customers as people.

You lot of you describe your customers
will going to pick on the blood alcohol

guys for a second OK You've described your
your customer segment as young drinkers.

It's easy to say that but
until you actually define an archetype for

them those are just words you're not
thinking of them yet as people so

one of the extraordinary values of
creating an archetype by actually writing

down things such as a fictional name and
where they live and what they do and

what's important of them and the hobbies
they have in these sorts of things

once you start to write that down and
make something up then they become.

Real.

Real as you think about their life about
them as real people here's an example

of one you are providing something that
dentists use this might be an example

of an architect could write up clearly
this is not intended to fully encompass

your entire customer segment it's not
meant to do that but we're going to ask

you to create one or more archetypes
likely one per side of your market and

career and a fictional person that
you're going to put up on the wall and

say that's who we're that's who we're
going after we need to understand them.

That makes sense and
maybe questions about that yeah.

OK.

Maybe it's the same thing he asked
was into in this in a persona

it may just be in the words
that we use Ok but

an archetype needs to be really
specific I want you to name the person

OK I want you to think that they're
real when you go through this and

that might be the distinction OK OK
this go on any other questions.

OK.

Let me get the archetype not to do that
if I go find a picture of the person

by the fictitious person give
a funny name if that helps.

Right all right keys favorite
topic the petal diagram.

That I was a new concept that came out
a few years ago from Steve Blank and

it was an attempt to solve
this particular problem and

that's the problem of US thinking of
our competition to market as one big.

One hundred people my gosh we're dead but
of course you know we're better faster and

cheaper so we get to go up there in
the upper right hand corner and yet

when Ok that's not really how it works so
we're going to ask you by the way this

is due Monday so you better pay attention
OK by Monday we want you to drive pedal

diagram of your competitive landscape
who are the other businesses that exist

out there today this is how you do it you
put yourself in the middle and you draw.

And you call these orbits is my space
guy here we call those kind of orbits.

Elliptical orbits OK it's petals OK.

And each one of those petals is
going to be a different distinct

customer segment OK different.

People use and then we want to do is
put yourself in the middle of this is

an example of because on of this one the
Steve Blank used to I think there in the.

College textbook space and then you
you fill in around all the way around

who the different other companies that are
that participate in the different customer

segments that you're looking at.

Make Sense logos are great because
then you then you can look and

say OK that's a real company rather than
just a name this isn't terribly hard but

part of it is trying to figure out
which box to put some of these

companies in a maybe
there are more than one.

And nothing you can do this
really powerful they go back and

put a number next to each of those market
segments we're not going to ask you to do

that we're going to do this this is like
for extra credit I suppose Keith anything

you want to add to the the parallelogram.

Yeah.

So much for Monday but I don't want
to do is spend hours and hours and

hours on this OK this is meant to give
you sort of a feeling about where we're

going to budget our compares that we know
about and maybe do a little research even

find people who didn't know about that's
always a lot of fun and kind of scary to

OK.

We're going to see more diagrams
diagrams OK diagrams or

how we use that we explain things we each
other how we understand things a bit more.

Kept about our game is
called a value chain.

In any business is in
fact in most businesses

you don't make the entire product and

sell that to the customer so it's kind
of a description of all the other steps

along the way as we go from the the raw
materials we might be working with

all the way the end customers in each
step where another value is added is a.

Another slot in that
chain it's different for

every industry I'm just putting this
one up there is a representation.

And there's companies along the way and
somewhere in this value chain exist you.

Stick yourself in there so we want to
understand how you fit into that so

all of you that have
a complex value chain.

We're probably going to ask you for
this we're going to want to understand it.

But see what a value chain is confusing.

OK Next you might ask you do is a market
ecosystem is not a linear thing but

there's just lots of players that make
up a more complex type of business.

This might be an example of some
complexity around an agricultural

product or an agriculture industry so now
we've got sort of from box is an area we

just want to kind of grass and
you can explain to yourselves and

possibly the teaching team where you
fit in a complex market ecosystem.

Which as we differ preach team.

Forgot what that is.

Maybe drilling in maybe a specific
customer ecosystem what happens

inside the company in this case

if you work inside of a hospital
it might look something like this.

Right we're different people
what are the different steps and

process involved inside of that
organization we have the outside companies

doing things in our time of insight.

There where these decks are all
going to be up in the dropbox So

when you need to you know pull these
examples out and take a look at it.

Another one is payment flows how does
money move around in an ecosystem

how does that happen is also something
that might be important to understand.

And this is a really good one because
not only does it show who does what for

who but
it shows how the money moves around

that's really brilliant We'd love to see
this sort of thing so when you do create

an ecosystem you start drawing arrows
you need to tell us what goes.

And in those arrows what's important
about those arrows you put in there.

All right next topic market types.

We're going to talk about this from time
to time in fact one of the questions

we will likely ask you is what
market type are you entering

what are you projecting that you're going
to do with your business so it's good to

understand the definitions of market
Here's the four that we talk about and

I Cor existing we segmented clone and
new Let me just define this for

you really quick an existing market that
was pretty straightforward the best thing

to know about that is that your customers
can name it there is existing companies

usually there are successful companies
have been doing it for a while and

they're going to try to kick your
ass if you go compete with them OK.

Here's an example of one that
with these morons did write.

Five years into the cell phone
revolution they decide to go and

build their own I don't think you
can buy this anymore can you Keith

it's kind of off the market at this point
right so that's an example somebody

went into an existing market had
billions of dollars and so got crushed.

So I was How's your little startup
going to be successful going up against

directly against entrenched competition
existing markets are really bad place to

be I don't know if you offer that idea.

About new markets.

Your customers even know exists or I'm
sure what value it adds and we're not sure

how they're going to find Africa which I
when they're not looking for you if you're

in some a completely new you think I'd be
doing Google searches for your widget.

I was going to find you.

How do you know how big the market's going
to be No one ever made it before there is

no market for
market sizes zero billion dollars.

These are really
challenging every once and

also make us really lucky build a unicorn
startup goes into a new market and

does well with it here's
an example of one.

You may know that is.

This guy who owns one of these.

OK that's a really bad sign for Oculus.

Of the clone market.

I believe you know about this market
markets where someone actually

takes something that successful
usually in a in one geography and

recreates it in another geography.

Has happened all around the world where
people have looked at successful Internet

startups in the U.S. where the companies
haven't really gone international yet

say hey I'm going to set that up in my own
home country or my own home territory but

I'm going to be really smart about
I'm actually going to dabbed it so

if it's my culture my language so
it really speaks to my customers but

does exactly the same thing as it did.

Its original market where it was launched
and here's an example of that thing you've

ever used by do I go there been there you
know with every know what this is sorry

let me not know what this event is about
a question OK so why do is Google in China

is Google search engine in
China exact copy of it.

Gary segmented market
we talk about this for

a second I want to define a really simple
every segment of market is a new niche

it's a you are breaking the norms
of the existing market.

You are redefining a market

you're changing the dynamics of it you're
not going directly up to the entrenched

computer you're doing something
different with those same customers.

It's not new You're redefining it.

Put an example this makes sense and
B. and B.

is a wonderful example of
a reset mentation of a market.

Hotel industry or whatever you want to
call that when you go someplace else and

you place to stay.

Been around for
several thousand years right.

And they came in decide we're going to
change how this works we're going to

create a well you know what they do right
but when they started they really weren't

a threat at all I think Marriott was
really worried about eight or B. and B.

on day one.

That is ridiculous or
they're you kidding me here because and

folks as couches come on
we have we have bars and

we have restaurants and
hotels with valet parking right.

Plenty of hot water what also tells
have fitness centers and pools and

they can't touch that we give bonus points
and we can give shuttles the airports and

their Nothing their toys
that we we can ignore them.

So Air B.N. B. is OK We're going
to come to this new market

we're going to go out to people that don't
stay in hotels we're going to find new

customers in that industry people where we
can offer something a pally different so

that's an example or some a when into a
market and said we're going to just change

the dynamics of an event it's great for
a start up to do this.

Because the competitors will laugh at you
they will ignore you they might not even

know about you because you're actually not
taking customers away from them and that's

why it's such an awesome way to enter
into a market it buys you time if nothing

else but then eventually allows you create
something that didn't exist before which

is really cool so we thinking about how
can we change the dynamics of the market

how can we actually do something that
didn't even exist before I'm going through

out a challenge blind because I can't
think without my head does anybody here

think that they can actually create a new
niche market or a re segmented market.

Anybody.

Think about for a second.

So I'm a bit of all term going to pick on
a day of the guys from U.C. Charlotte OK.

You guys going into a new market resetting
the market clone market would you think

your day.

Existing market.

There be in the team agree with that.

So one way to test that is anybody going
there and searching for what you do.

They can even describe what you
do let's pick somebody else OK.

Here's was go for friends from
Puerto Rico what you got Thanks a.

Lot a lot of can here be on the.

OK So he says free segment
how are you re segmenting

the market with your always on video

conferencing.

OK this is existing products that
deliver value to to those customers.

Right.

OK fair enough anybody
else if they wanted.

Well it must be tired before lunch OK over
here we'll take one more OK Illinois What

about you guys.

We segmented market OK How
are you re segmented

market.

OK simply creating a new way to do it does
not create a new market a resettlement

a market so what you need to do is create
something that just literally didn't exist

before inside of a larger market so
it would be thinking about that do you

open it up to people who
couldn't even do it before.

In that market OK So on the the machine
controller your hobby a stuff is it

does a lot of people that weren't even
participating before to now come in

a participant right so that would be a.

I don't I came away say is this so
I believe you are so I agree with you one

more.

OK So this is a technology does exist
in the market you're going into but

you're going to actually enable
something very different than that

it doesn't exist on the market
today will you bring in.

New customers a don't
currently play in that market

that would be one of the roles
I think you'd want to see.

Got it.

OK and actually have the patients
themselves be able to do

what they couldn't do before
without the right OK X.

on one tip when you come back
in the weather date April no.

March March fourteenth OK don't bring any
red colored clothes OK right now red and

black here at Georgia Tech OK OK I
know you from Houston and

we forgave you today but no redlight
OK fair enough OK you may remember

that we at least have of the teaching five
of the six are alum of Georgia Tech so.

All right so here's a kind of a chart
I'm not to read all of this but

you can think about how this
compares how the different market

segments compare in a couple of axes and

one of the things I think that this kind
of really neat is looking at the risk.

How risky is going into that market.

The cool thing about re segmented is you
get you get to make it up yourselves

to find those customers that
weren't being served before.

Any questions about market segments we
will ask you would some point to tell us.

Whether or not you are creating a new
market you're building a resegregated

market you're cloning or
your new Ok there's one.

Question.

OK so I recycle creating a new market
means no but it doesn't exist at all.

Re segmented means we're going to
recreate the dynamics of an existing

market.

OK So but it's still the same vertical
people still stay in hotels they still

have long term stays OK whereas the idea
of putting a headset on your head and

looking at video that didn't exist
at all before it had no market OK.

Here's something I added to this because
I seen a lot of teams that struggle

with picking a customer segment.

Their campuses look like this when they
come in and then they just kind of threw

up her arms in her exasperate because
they can't possibly pick one of those

customer segments and it's usually because
they're all awesome and they don't leave

anything out or maybe because it is
none of them are very interesting or

they just don't know anything about
the market OK could be a lot of reasons

I see this all the time so I just want to
point out something we're not asking you

to go find these single best
market we don't have enough time.

So if in a town of money yes we'll
find the optimal market OK but

by then we'll all be dead OK if you don't
do that don't think that's required

what you do want to find.

Is a business model and

a customer segment that lets you
launch your business successfully.

And then you can always pivot and change
into other markets once you were launched

so it's OK to do that OK but
what is it that you want to do.

When you come in here it's OK on day
one to not know it's OK on day one

to go out there and survey multiple market
multiple customer segments it's OK I

know we talked a lot teams about that but
I would tell you pretty quickly you better

you better coalesce that into one do
a really deep dive into that market and

only if you find out a dead end at
that point you flip to another and

that's generally what works in I Corps.

Is how do you do that what are the what
are the things you might think

about when you're trying to figure
out which of those markets which

of those customer segments to pick.

And these are all kind
of valid in one way.

Which is the biggest Which one is in the
most has the most problems the most pains

OK What is your mentor know really well
they can stop a lot of meetings for

you because actually getting out there and

doing interviews is pretty critical of
this and if you can't do interviews.

And you really going to discover anything
so here's ways you can actually go about

it OK I certainly consider risk there are
some industries some markets that are very

risky very difficult take a long time a
lot of money to go into or there's others

that maybe are a lot cheaper more
successful for a start up some

of things you can think about and I would
push everybody here by a week from my.

Day You haven't really wilted down to one
customer segment you've got a tough time

getting through sufficient interviews
to be success with this and

a mother teach if you want to add to that

Julie.

What if you could build a device that just
directly sold to the patient on day one

and then go chase
reimbursement does that happen

Julie.

How many of you are still in the position
where you're not certain about who you're

your first customer segment you want
to explore is anybody in that boat.

One or two OK if you.

All right last topic before
launch pivots a bit spivs gives

you first mentioned this before I'm going
to find pivots I'm sure a different types

of pivot someone show you some examples of
some pivots and the reason I'm doing that

is I want to reinforce to you that
pivoting is part of the process.

The goal here is not to see who is
the smartest person abroad in the best

original business thesis everybody's
business thesis is a little bit wrong we

know that because they're all wrong you're
not that lucky OK we want it to be OK to

pivot we want you to know that's part of
the process we're even going to ask you to

tell us how many times you've
pivoted during the program.

Was a definition.

As you're going out and
testing hypotheses.

And they fail and you must change your
business the says that is a pivot is when

you make a significant change to your
original thesis What's the thesis contain

I remember who's my customer.

Was my product why they can buy OK
should build rather that off by now.

Or enough major change your business
they said we've kind of pulled out to

Eric Reese actually came up with these but
these are our six types of pivots that we

see fairly regularly or define the mix
I want to build to describe them to us.

I did a zoom out pivot that's empowering
it should be allowed to say OK Not only do

I know what I did I know that that's OK
but I can even tell you about it that's

why we wanted to find these things for
you but the cost per second a pivot.

Keeping are the same but changing who the
customer segment of your proxy is the same

value proposition changes the same but

you can change your customer segment
is how that even looks like a pivot.

Is an example one you heard of this
company what Pay Pal was there first.

It was their first customer for
Pay Pal I mean now.

You know they were doing this sort
of thing these were people actually

sending money overseas it wasn't
even saying My each other paying for

things it was people who
want to send money overseas.

People struggle with that for
a very long time and

it wasn't until they decide to
change who their customer was and

focus on e-bay power sellers that their
business actually exploded OK and

now works loading rockets and we're
exploding Tesla's right because of that.

That was a bad analogy sorry you.

Know I how about this kind of hit value
proposition same customer same people but

you found out they really didn't value
what you thought they valued about your

product so you going to just your value
proposition a different problem or

you're dressing a different job that
they do with your same product.

So.
Example want to be heard of these guys

the point.

OK they build a product so that they
can aggregate groups of people together

to go do charitable things
that was the point.

Of the point.

We never heard of them because they
quickly discovered that this was a better

value proposition for people is that
instead of doing charitable things those

people would like to save money and
they rebranded it is group on Juno that.

This is one of the myths in startup world
the myth and startup world is that these

companies emerge fully formed the first
time you saw them that the that the other

one who are they created group on had
this brilliant idea for Groupon right.

And they actually implemented wrote the
code launched it exactly the way you see

it today and that's not what happens.

This is a convoluted process that we're
going through of customer discovery and

changing customers and

value proposition updating our product
all successful companies do that.

The companies that fail to do that
are just once you've never heard of.

It's called Success bias or
knowing the successes.

And the difference and here is we're going
to in six weeks instead of three years and

with three million dollars
someone else's money.

All about a product pivot.

Turns out that my customers did not
believe that the product I envisioned

would actually deliver the value to them.

Now they they didn't want the value and
they are the same customer but

you find out that your product doesn't do
it so now we're going to pivot the product

website our collective
ass this is bourbon.

You're already saw the next slide so
I gave it away but so

bourbon started off as well there was
another who was the other company

that did this something
similar to checking out.

Foursquare thank you so they're doing
something similar to Foursquare where

they're trying to get but they act.

He wanted people to share with each other.

And they eventually
pivoted to Instagram so

they did not start his Instagram
they started as bourbon.

Another one of those that you just
assumed on day one was in ceramic.

But about a zoom out this is where it gets
a little complicated OK as Zoom out OK

says that we're actually going to expand
we're going to go out we're to grow.

But we're doing OK We're going to look at
a larger customer segment we're going to

expand the product to have a much larger
footprint OK it's not going to be our

little technology inside of a box with a
bow on it we've got a bunch more things to

it to expand it out so customers don't
want to buy our little technology piece

they want to buy an entire product that
would be an example of a zoom out pivot.

OK Nvidia I think a lot of
people have heard of them.

They they were a manufacturer
of chips OK for

graphics Yeah.

Sure right now we don't want
you to launch in multiple

customer segments with multiple products
hey we want you to find one by the end

of of I Cor we want you to say this is our
customer this is our value proposition

this is our product here's our canvas
we're go because we have evidence to prove

that this can be successful.

I don't know it only your
customers can tell you that.

If your customers don't value the chip.

But they do value the box stop
trying to sell them the chip.

That makes sense OK Go learn what
it is about your technology and

in what form is it.

That they want to use it OK what
about these folks this is one that.

I use all the time for people the disk
misunderstand is Facebook did a zoom.

Out on their customer segment we all
know that we just conveniently forget it

OK Facebook started.

In Ivy League colleges primarily selling
to for tourney boys so they can do what.

Fine girls OK worlds world's
greatest value proposition OK

they are the all of the only one that
even comes close is making money OK.

Facebook started out doing that OK but
we know what is this.

Because over time they did as Zoom out of
their customer segment so that more and

more and more more people could use it so

that be an example of how
it was him out like work.

Is the opposite of that zoom in
that you're providing too much

is this is the problem that most people
this room have your customers aim is to

have big your value proposition is
too broad We need to zoom that in and

be more specific with it.

This is an example of a company called
thirty seven Signals big fan of them

and they they eventually end up with
these four products on the market.

And actually successful with it and

one day made a decision OK that we're
just going to zoom in on one product and

we're going to change your name to base
camp so even large couple like that that

the zoomed in they said
we're going to focus in.

I love this example.

They've ever bought a Sony phone.

OK.

You did OK You know why you never you know
why you've never bought a Sony phone.

That.

Old my gosh in two thousand and
twelve this was Sony's product line

this is how many phones they had on the
market OK we're not successful with this

strategy this side is them in focus
completely on being the high resolution

phone manufacturer they said that our
value proposition and the people that we

want to deal with are those that want to
have the most high value was high def.

Mission from them is available they
zoom in both on their product as well as

on who their customer was.

Revenue model is another type of pivot.

They want all says we're going
to change how we make money.

And I will use example here ya'll heard of
MIPs like you should know Mitt's right so.

Start off.

Making chips they sold chips OK
there were some I conductor company.

They made money from hardware sales.

But they have changed their But

their business model they
pivoted their business model.

And other every stream comes from
licensing their technology to companies

like Qualcomm let them build ships
extraordinarily successful company but

they change how they make money.

So these are all different examples of the
types of pivots that you may be making and

I want to repeat this we encourage you to
pivot I don't pivot just on a whim but

as you collect evidence and

as you talk to him as it becomes clear
OK that nobody cares about what you're

doing in that customer segment where they
don't value your product the way they

thought that you thought they would
value it then you must pivot.

To be allowed to do that.

So any questions about pivots.

Right.

What's the pivot again.

Let's finish up with this.

If nothing else in this program.

We want you to figure out who your
customers what they value and

turn that into product market fit and if
you have product market fit then you have

hope there's a chance that maybe there's
a successful business model behind that.

It's a lot of our focus a lot
of our conversations from for

the next several weeks can be very much
focused on who is your customer and

why are people going to buy from you.

Right that wraps up the conversation about
customers any question about any that it

was anybody confused uncertain about
the definitions and that sort of thing.

All right Randi turning back to you.

I was after.