This is not your mom’s economic recovery.

• Traditional economy not working
• WSJ writing about startups daily
• Computers in pockets
• Buying books from software companies
• Open source hardware
• 3D printing of photobooth strips, shoes

Volatility, uncertainty, opportunity

• Structural changes
• Prosthetic limb personalization in 3D printing

Innovation Spectrum

• Sustaining innovation
• Disruptive innovation
• Must use different strategies for each

Two questions that kill disruptive innovation

• What’s the ROI
• When will we see it
• (These are for sustaining innovation)

Myth of the visionary

Big companies can’t afford risks from startups.

How to keep internal innovators in house instead of having them leave and reacquiring them?

Core business protected from startup.

• Lab brand used for experiments
• Legal sets up ground rules so startups can experiment quickly.
• Sales and marketing not given startup products
• Rules established for interaction w/ existing customers

Validated learning vs. wasting

Lean startup

• Don’t know value
• Don’t know customer
• Objective: elimination of waste in discovering value and customer
• Measure: validated learning of your value stream

Whole product vs. MVP

First find the passionate users. Then can go and market to others.

• Marketing does not create buzz. Market heightens the buzz already created by your product by itself.
• Passion stuff goes way deeper than pure functionality.

Difference b/w satisfaction and passion

• Might be outside the product
• Might have innovated on the marketing (HubSpot)

High hurdle experiment

• How to surface who your early adopters are
• Prequalified people with very detailed survey with lots of open ended questions with text fields of minimum 100 words, etc.
• Winnowed group down by 50% to most passionate
• Make your early adopters pay for the product with some currency like time
• Quickly surface the most important parts for the product

Market segmentation

• Not about demographics, verticals, or firmographics
• About people who share the same pain/problem
• People who reference each other when considering solutions
• Make a matrix comparing various segments across a few axes and run experiments to fill in matrix
• 70% resources into top segment, 20% in second, 10% in rest opportunistic
• Jobs to be done model for segmentation