Essentials of Innovation & Entrepreneurship (EIE) - Module (M1) | PES University PDF

Essentials of Innovation & Entrepreneurship (EIE) - II Module (M1): Why Startups Fail and What You Can Do About It?  EIE - II Prof. Sathya Prasad Prof. Lakshmeesha Mr. Madhukar Narasimha Mr. Tarun Ram...

Essentials of Innovation & Entrepreneurship (EIE) - II Module (M1): Why Startups Fail and What You Can Do About It?  EIE - II Prof. Sathya Prasad Prof. Lakshmeesha Mr. Madhukar Narasimha Mr. Tarun Rama Lead Instructor, CIE@RR Lead Instructor, CIE@EC CIE Program Manager CIE Ignite Manager ([email protected]) ([email protected]) ([email protected]) ([email protected]) E-Cell Department Coordinators Student body (Respective Departments) (EC & RR campus)  EIE - II EIE Teaching Assistants (TA) Arpan Chirag C Shekar Chinmay D Dhruv Tandon Ajay Rao Mascarenhas EIE-1 in a Nutshell EIE - I  How Can EIE Help You in Your Education/Career? We envision this to be more than a ’course’: Discover your ‘True North’ / Interests / Passion Identify ideas/opportunities that you consider worth pursuing (tech / biz / startup / research / etc) Find potential collaborators / teammates / startup founders / innovators Get funding / prototyping / mentoring / etc support to build out your idea/team Sample/Illustrative Example: One possible path (*not* the only path) Semester 3 4 Summer 5 6 Summer 7 8 CIE / CoE Pick idea Build idea CIE / CoE Incubate* Accelerate* EIE-I EIE-II Internship (Capstone?) (Capstone?) Internship Idea/Product Idea/Product Apply to CIE PESU-IITx Co-Innovation-Center (grant, mentorship) Build Tech, Business and Soft skills; Discover their ‘True North’/passion, Teammates Corporate/Govt Incubator/Accelerator, Research Labs, etc. and more (build prototype/minimum-viable-product, validate, etc.) * Faculty & Students  EIE - II Course Objectives Prepare you to kickstart your I&E Journey now! Provide a platform to apply your I&E skills (CIE Ignite) Exposure to transformative technology-driven innovations Interactions with Founders/VCs/Startup Ecosystem experts Deeper awareness and understanding of business acumen Fun way to prepare for an exciting/impactful 3rd/4th yr PESU journey!  EIE - II Learning Outcomes Applying what you learned in EIE-1 (BMC, Design Thinking, etc) Opportunity for you to (safely) create a startup by picking a real-world problem (opportunity) & solving it using proven principles Use Lean Startup & Customer Development principles for your idea “Evidence-based” vs. “faith-based” entrepreneurship Discover great teammates – potential/future Co-Founders! How will you apply EIE learnings with your other Courses/Projects/Gig(s)?  EIE - II Course Outline* # Theme/Topic CIE-Ignite Milestone* M1 Introduction to Startup Challenges/Failure and What you can do? M2 Customer Discovery (CD) – Why/What/How M3 CD Deep-dive: Interviewing Skills M4 CD Deep-dive: Build your Testable/Measurable Hypotheses Stage0 (S0) M5 CD Deep-dive: Best practices M6 Startup Finance Fundamentals II M7 Startup Marketing Fundamentals II Stage1 (S1) M8 Digital Business Models M9 Digital Marketing and use of GenAI for Innovation Stage2 (S2) M10 Startup Pitching II M11 Startup Legal Fundamentals Stage3 (S3) M12 Developing your Entrepreneurial Action Plan * Proposed, subject to modification  EIE - II Course Mechanics Credits: 2 Credits (Weekly 2hr) Engagement: Mostly Online (some sessions will be F2F with advance notice) Will include talks by Startup Founders, Industry Experts, PESU Faculty, etc Grading*: S: 90 –100 A: 80 –89 B: 70.-79 C: 60 –69D: 50 –59 E: 40 –49 F: 39 & below Assessment*: CIE Ignite/ideathon (10%), CBT - 2 ISAs (20% each) & 1 ESA (50%) Attendance: Same as university requirements (75%+) Dept Support: Contact the respective Depts Coordinator (DC) for assistance (see next slide) References: Technology Ventures: From Idea to Enterprise, McGraw Hill PES University ‘CIE Level 1’ Course - Getting Started With Entrepreneurship VentureLab (Entrepreneurial Skillset and Mindset) European Union (EU) Entrepreneurship Competencies * Proposed, subject to modification EIE Course Dept Coordinators 14  EIE - II How to Get the Best Out of this Course? Discipline, Perseverance & Commitment (key ingredients of a successful entrepreneur!) Practice the framework/tools: Leverage CIE-Ignite (develop skills to use the ‘tools’ ; not formulaic, find out what works best for you) Lots of ‘doing’ in a Team setting (if Team succeeds, you succeed ) Leverage mentorship from CIE Industry Mentors for Team Project Use CIE Makerspace to build your prototype Based on your efforts/results, apply for CIE Summer Internship  EIE - II Student Engagement / Facilitation Online Q/A on MS Teams (Moderated by CIE TAs) Polls Session Quiz on PESU Academy: Important! (this is how you get attendance) For course related assistance, reach out to [email protected] (Madhukar Sir) Offline Department Coordinator (DC) in your respective Department Essentials of Innovation & Entrepreneurship: M1 Why Startups Fail and What Can You Do Differently?  EIE - II What is a Startup? A startup is a temporary organization designed to search for a repeatable and scalable business model 11 Source: Steve Blank  EIE - II Why startups fail? Most Startups want to build this 12  EIE - II Why startups fail? First build this…. 13  EIE - II Why startups fail? And Eventually Build this … 14  EIE - II Conventional Approach: Product Development Model Concept/ Seed Product Alpha/Beta Launch Round Development Test (1ˢᵗ Ship) 15  EIE - II Conventional Approach: Product Development Model Create Demand Create Mkt Collateral Hire PR Agency Marketing Launch Event Create Positioning Early Buzz “Branding” Hire Sales VP Build Sales Sales Hire 1ˢᵗ Sales Staff Organization Business Do deals for Hire First Bus Dev Development for/past launch Does this Model work? When ? Why? Why Not? 16  EIE - II Conventional Approach: Product Development Model Challenges with this model: Business Plan First (BIG assumption: Customers + Market available/ready) Startups ≠ Smaller version of large companies Linear Process (Idea -> Team -> Product -> Mkt/Sell -> etc) Product Development First (Tech above all else) Followed by Test (alpha/beta) 17  EIE - II More Startups Fail from a Lack of Customers than from a Failure of Product Development 18  EIE - II How Do You Fix This? Focus on Customers and Markets from ‘Day 0’ by adopting Lean Startup Method 19  Required Reading/Viewing The Lean Approach – Introduction (https://youtu.be/vyR1JjS1Duc) (Steve Blank, 1:05 mins) Legend: The Lean Method Required (https://youtu.be/GPQExuB-lWw) (Steve Blank, 5:20 mins) Recommended Customer vs Product Development - How to Build a Startup, Steve Blank (https://www.youtube.com/watch?v=f_LNNnNfpp4&feature=youtu.be) Why the Lean Startup Changes Everything (Harvard Business Review Article) https://hbr.org/video/5712986167001/why-the-Lean-startup-changes-everything (9 mins) Cracking the Code: Link (Kauffman Sketchbook) Visionaries: Link (Kauffman Sketchbook) 32  EIE - II Lean Startup Components Business Customer Model Canvas + Development + Agile (BMC) 20  EIE - II Lean Startup Principles Lean Startups Address this by: 1ˢᵗ Step: Customer Development Startup = Temporary Search Organization Business Plan First Startups = Small Companies Linear Process Iterative Process Product Development First Followed by Beta Test Minimum Viable Product (MVP) Is there a viable Business Model? Scalable? 21  EIE - II Why is this called ‘Lean’? Cost vs Risk: ‘Cost of being wrong’ keeps growing over time Cost of being wrong Risk of being wrong ‘Lean’ (opposite of wasteful’) attempts to minimize avoidable ‘waste’ by identifying risks upfront 22  EIE - II Lean Startup Components - BMC Business Model Canvas (BMC) – Prototyping (& NOT Planning) Tool Key Aspects of BMC ⚬ Desirability: ￭ Customer Value Proposition, Customer Segments, Customer Relationship, Channel ⚬ Feasibility: ￭ Key Activities, Key Resources, Key Partnerships ⚬ Viability: ￭ Cost, Revenue Model 23  EIE - II Lean Startup Components - Customer Development Process Search Execute Customer Customer Customer Company Discovery Validation Creation Building Iterate or Pivot Video (2:41): The Customer Development Process: 2 Minutes to See Why 24  EIE - II Customer Development Process – Key Points Emphasis is on learning & discovery before execution Customer Dev: Parallel process to Product Development Measurable Checkpoints Not tied to product schedule, but to Customer Milestones Market Type dictates Customer Development process “There are no facts inside your building, so get outside” 25  EIE - II Agile Development “Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” http://agilemanifesto.org 26  EIE - II Lean Startup Components – Agile Development Prefer flexibility to perfection ⚬ Ship early and often ⚬ Test-driven to find and prevent bugs ⚬ Continuous improvement vs. ship-and-maintain Embrace Change ⚬ Build what you need ‘today’ (customer-centric) ⚬ Process-oriented development, so change is relatively painless 27 See: McKinsey - A Business Leader’s Guide to Agile  EIE - II Successful Lean Startups A popular team communication and collaboration platform, started as a side project within a game development company called Tiny Speck. The founders, Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov, initially built an internal tool for their game development team. However, they soon realized the potential of the tool as a standalone product and pivoted to focus on building Slack. They continuously iterated based on user feedback and market demand, leading to its eventual success. 28  EIE - II Successful Lean Startups The visual discovery and bookmarking platform, employed lean startup principles in its early stages. The founder, Ben Silbermann, started by creating a basic prototype and shared it with a small group of friends to gather feedback. He iterated on the product based on user insights, focusing on building a simple and intuitive experience. The lean approach helped Pinterest gain traction and refine its features to meet user needs. 29  EIE - II Summary Customer-Centric Approach: Prioritise customer needs over product development. Begin with Customer Development to understand and validate your market. Iterative Progress: Embrace an iterative process: Idea → Team → Product → Market; continuously improve and adapt based on feedback. Minimum Viable Product (MVP): Build the simplest version of your product that validates your business model. Test assumptions efficiently. Fail Fast, Learn Faster: Don't fear failure; it's a stepping stone. Focus on learning from failures and pivoting if necessary. Continuous Improvement: Embrace change and agility. Develop a process-oriented mindset that fosters painless adaptation. Take Action Today: Embrace Lean Startup principles to validate your idea, satisfy customer needs, and build a scalable business model. Iterate, adapt, and transform your startup journey. 30  Module 1: Post Session Brief Centre for Innovation and Entrepreneurship (CIE)  CIE LEVEL 2 - Building a Lean Startup Required Task - 1 Activity Reflect on what kind of teammates you are looking for? Scout for potential teammates (each team will have 5-6 members) Be ready to discuss what role fits you best (Mkt, Tech, Biz, Prototyping, etc) ⚬ Opportunity theme(s): ⚬ What do you/team like/excited about? ⚬ Is “Desirable – Feasible – Viable”? ⚬ Can be completed (course requirement) in ~10 wks? 31  Recommended Audio/Video Podcast - 'How to Succeed by Failing ‘Ferrari Fast’: eCorner, STVP (Stanford) Video - Improving observation and developing a keen eye: The Monkey Business Illusion Video - “Separating Ideas from viable Business Opportunity” (start:0:45 till– 4:37) Video - “The Best Way to Find an Idea is to Stop looking for it! (Gary Vaynerchuk interview) 33