Page 418 - Value Proposition Design: How to Create Products and Services Customers Want - PDFDrive.com

place under high uncertainty. Therefore, systematically testing ideas to learn
what works and what doesn’t is a far better approach than writing a plan.
One might even argue that plans maximize risk. Their refined and polished
nature gives the illusion that with great execution little can go wrong. Yet
ideas dramatically change from inception to market readiness and often die
along the way. You need to experiment, learn, and adapt to manage this
change and progressively reduce risk and uncertainty. This process of
experimentation, which we will explore on the following pages, is known as
customer development and lean start-up.

Applied to New Ventures

We know Attitude Our customers and partners know

Business plan Tools Business Model and Value Proposition
Canvas

Planning Process Customer development and lean start-up

Inside the building Where Outside the building

Execution of a plan Focus Experimentation and learning

Historical facts from past success Decision- Facts and insights from experiments
basis

Not addressed adequately Risk Minimized via learnings

Avoided Failure Embraced as means to learn and improve

Masked via detailed plan Uncertainty Acknowledged and reduced via experiments

Granular documents and Detail Dependent on level of evidence from
spreadsheets experiments

Assumptions Numbers Evidence-based