better by measure: becoming better by measure (class 1, sva products of design 2014)

BETTER BY MEASURE | WEEK 1: SEPTEMBER 4, 2014 BETTER BY MEASURE | WEEK 1: SEPTEMBER 4, 2014

BETTER BY MEASURE

BECOMING BETTER BY MEASURE

Class 1 | September 4, 2014

BETTER BY MEASURE | WEEK 1: SEPTEMBER 4, 2014

BETTER BY MEASURE

MANIFESTO PART ONE



MANIFESTO FOR BETTER BY MEASURE

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WE ARE TRANSITIONING BETWEEN TWO WAYS OF SEEING THE WORLD.



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FROM:• Organization as machine• “The purpose of a business is to increase shareholder value.”• Hierarchy in control• Scarce resources

TO:

• Society as ecosystem• The purpose of a business is to create value for stakeholders• Collaboration and co-creation• Zero marginal costs, abundant resources


“THE PURPOSE OF A BUSINESS IS TO INCREASE SHAREHOLDER VALUE.”



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We’re optimistic.

We were born before you (probably), but we are millenials.

Purposeful.

Mission-driven.

Entitled to create.

Optimistic.



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BUT WE HAVE BEEN LIVING MOSTLY IN THE WORLD OF “FROM.”

ARAL SEA: 1989

ONE OF LARGEST FOUR LAKES IN THE WORLD.

ARAL SEA: 1989

10% OF ORIGINAL SIZE.


WHERE WE’RE FROM


REBECCA SILVER

JENNIFER VAN DER MEER


REBECCA SILVER: I AM A MICHIGANDER

LANSING WAS THE HOME OF OLDSMOBILE FROM 1897 - 1998.

1970 to 2010 POPULATION: 131,500 to 114,000 = 13% decrease

1970 to 2010 MANUFACTURING JOBS: 32,100 to 18,400 = 43% decrease

THIS PROBLEM IS SYSTEMIC. MICHIGAN IS THE ONLY STATE WITH A

DECREASING POPULATION.

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WHAT HAPPENED?

THE CLEAN AIR ACT PASSED IN 1970 AND IN THE 1973 ARAB OIL EMBARGO

SHOOK THE AUTO INDUSTRY.

LARGE, GAS-GUZZLING CARS GAVE WAY TO SMALL, FUEL-EFFICIENT

JAPANESE IMPORTS.

TODAY WE OUTSOURCE OUR ENVIRONMENTAL IMPACTS.

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MAKING BETTER THINGS NOT MAKING THINGS BETTER

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I WORK WITH COMPANIES TO REFRAME SUSTAINABILITY AS A

BUSINESS OPPORTUNITY, TO CREATE VALUE RATHER THAN TO

REDUCE IMPACT.

I HAVE WORKED FOR ADIDAS, THE NRDC, THE CFDA, WALMART, EDF

AND OTHERS. I TEACH AT SVA & PARSONS.

BFA IN INDUSTRIAL DESIGN (RISD).

MBA & MS IN BUSINESS & ENVIRONMENTAL SCIENCE (UofM).

I THINK VISUALLY & SCIENTIFICALLY.

SHOW ME THE EVIDENCE THEN COMMUNICATE IT BEAUTIFULLY.


JEN VAN DER MEER

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About Jen

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TECH ANALYST

MBA – HEC

MOM

ITP PITCHFEST

OPEN DATA

LUMINARY

LABS

DRILLTEAM

DACHIS

WEST VILLAGE

DESIGNERS ACCORD

SYSTEMS THINKING

SUBURBAN CHILDHOOD

FROG DESIGN

ORGANIC INC.

SUSTAINABILITY BA COMP RELIGION

REASON STREET

ECONOMIST


BETTER BY MEASURE

MANIFESTO PART TWO



PROVOCATION

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YOU HAVE THE ENTHUSIASM, SKILLS AND WORLDVIEW TO MAKE THE CHANGE YOU WANT TO SEE IN THE WORLD.


WHAT WILL STOP YOU

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Incumbent thinking.

Unquestioned heuristics about how the business world works.

Mindless observance of guidelines and measures.

Low expectations.

Pessimism.

Despair.


WHAT WE WILL GIVE YOU

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Leadership skills.

Persuasion, influence.

Hope.

Measurement.

Argument building: evidence that your path is the true way forward.


THERE WILL BE MATH

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EVIDENCE BUILDING IS A SKILLSET

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You will use valid sources. Wikipedia is not a valid source.

You will document all sources and embed the sources in your presentations.

You will document your assumptions carefully.

You will document data gaps.

You will document all calculations and you will show your math.

You will edit and spellcheck your work or we will make you do it again.

And we will help you build and practice these skills.


WHAT WE EXPECT OF YOU

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Academic integrity.

Hard work (ask the graduates).

Learning through doing, and hope will come later if you do not have it yet.


THE CLASS WILL RUN AS A START-UP ACCELLERATOR

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CONGRATULATIONS, YOU HAVE BEEN ACCEPTED INTO BETTER BY MEASURE’S FALL ‘14 CLASS.

BETTER BYMEASURE


BETTER BY MEASURE: OVERVIEW

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PART 1 – CONCEPT: Breaking down business models + concept development• September 4: Introductions• September 11: Value Creation• September 18: Measured Risk• September 25: Intro to Lean

PART 2 – VALIDATE: Building business models back up + validation• October 2: Lean Customer Discover 1• October 9: Lean Customer Discovery 2• October 16: Measured Impact• October 23: Midterm

PART 3 – CHARETTE: Iterative redesign through stakeholder charettes• October 30: Design for Trees and Bees (Environment)• November 6: Design for Jane Jacobs (Civic Engagement)• November 13: Design for the Body (Health)• November 20: Physical Prototype Critique

PART 4 – PROTOTYPE: Prototype, test, demo day• November 27: Thanksgiving (No Class), One-on-ones• December 4: Prototype Test Critique (Prep for Final)• December 11: Marketing Test Critique (Final)


NOW ENOUGH ABOUT US.

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INTERVIEW TIME.

We will be matching teams for our accellerator class based on skills, interests, and

motivations. We will now be interviewing each one of you to compose startup teams.

Are you a Maker, Marketer, or Mover Shaker?


CLASS RULES

JUST A FEW



CLASS RULES

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• Questions are always welcome so ask them at any time.

• Be ready on time for class, including having presentation materials up on the board or

loaded on the class computer prior to the start of class.

• No laptops, lids down.

• No phones during class.

• Food is just fine, except when there are guests/speakers present.

• EMAIL IN ADVANCE OF CLASS if you will be late or miss a class.


HOMEWORK

FIRST ASSIGNMENT



BREAKING DOWN A BUSINESS MODEL

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RESEARCH & PRESENT THE ANSWERS TO:

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HOW DOES THE COMPANY MAKE MONEY?

WHAT DO THEY DO FOR THE WORLD THAT IS GOOD?

THEN CREATE A BUSINESS MODEL CANVAS FOR THE COMPANY.

SUBMIT TO THE DROPBOX BY 4PM ON THE DAY OF CLASS.


THE BUSINESS MODEL CANVAS

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KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS

KEY RESOURCES

COST STRUCTURE REVENUE STREAMS

CHANNELS

CUSTOMER SEGMENTS

Who are our key partners?

Who are our key suppliers?

Which key resources are we acquiring from our partners?

Which key activities do our partners perform?

What value do we deliver to the customer?

Which one of our customers’ problems are we helping to solve?

What bundles of products and services are we offering to each segment?

Which customer needs are we satisfying?

What is the minimum viable product?

For whom are we creating value?

Who are our most important customers?

What are the customer archetypes?

What key activities do our value propositions require?

Our distribution channels?

Customer relationships?

Revenue Streams?

What key resources do our value propositions require?

Our distribution channels?

Customer relationships?

Revenue Streams?

How do we get, keep, and grow customers?

Which customer relationships have we established?

How are they integrated with the rest of our business model?

How costly are they?

Through which channels do our customer segments want to be reached?

How do other companies reach them now?

Which ones work best?

Which ones are most cost-effective

How are we integrating them with customer routines?

What are the most important costs inherent to our business model?

Which key resources are most expensive?

Which key activities are most expensive?

For what value are our customers really willing to pay?

For what do they currently play?

What is the revenue model?

What are the pricing tactics?

SOURCE: www.businessmodelgeneration.com//canvas | Canvas concepts developed by Alexander Osterwalder and Yves Pigneur.

http://www.businessmodelgeneration.com//canvas

better by measure: becoming better by measure (class 1, sva products of design 2014)

Design

measure week

better things

increaseshareholder

aral sea

environmental impacts

largestfour lakes inthe

jen van

adecreasing population