Comments on: The Leading Cause of Startup Death – Part 1: The Product Development Diagram http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/ Entrepreneurship and Conservation Tue, 16 Mar 2010 12:45:50 +0000 http://wordpress.com/ hourly 1 By: My take on Customer Development and the Lean Startup | Recess Mobile Blog http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-2364 My take on Customer Development and the Lean Startup | Recess Mobile Blog Sat, 09 Jan 2010 13:37:55 +0000 http://steveblank.com/?p=3505#comment-2364 [...] Steve Blank explains this in The Leading Cause of Startup Death – Part 1: The Product Development Diagram. [...] [...] Steve Blank explains this in The Leading Cause of Startup Death – Part 1: The Product Development Diagram. [...]

]]> By: Robi Ganguly’s Big Ideas » Some stuff worth reading 10-26-09 http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1784 Robi Ganguly’s Big Ideas » Some stuff worth reading 10-26-09 Mon, 26 Oct 2009 08:13:03 +0000 http://steveblank.com/?p=3505#comment-1784 [...] Process” has really resonated with me. He writes about it a lot, but here’s a great post elaborating on his view that most companies try to apply Product Development processes to Customer [...] [...] Process” has really resonated with me. He writes about it a lot, but here’s a great post elaborating on his view that most companies try to apply Product Development processes to Customer [...]

]]> By: Why Startups Die | Kikabink News - Internet Marketing News http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1633 Why Startups Die | Kikabink News - Internet Marketing News Sun, 04 Oct 2009 04:20:09 +0000 http://steveblank.com/?p=3505#comment-1633 [...] Source: Steve Blank, “The Leading Cause of Startup Death – Part 1: The Product Development Diagram,&... [...] [...] Source: Steve Blank, “The Leading Cause of Startup Death – Part 1: The Product Development Diagram,&… [...]

]]> By: Product Development vs. Customer Development | Chronic Enthusiasm http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1589 Product Development vs. Customer Development | Chronic Enthusiasm Thu, 24 Sep 2009 18:51:29 +0000 http://steveblank.com/?p=3505#comment-1589 [...] Steve Case makes a strong case that the major reason for startup failuer is management using the classic Product Development management process rather than the emerging Customer Development process. [...] [...] Steve Case makes a strong case that the major reason for startup failuer is management using the classic Product Development management process rather than the emerging Customer Development process. [...]

]]> By: Graham King http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1489 Graham King Tue, 15 Sep 2009 04:53:19 +0000 http://steveblank.com/?p=3505#comment-1489 I just read Part 1, 2, 3 and 4, and now know a lot about the problems of the Product Development model, but those articles don't provide any solutions. This presentation of yours, from Wikipedia, is what I was hoping for: http://www.stanford.edu/class/msande273/resources/Blank%20presentation%20101403.pdf I just read Part 1, 2, 3 and 4, and now know a lot about the problems of the Product Development model, but those articles don’t provide any solutions.

This presentation of yours, from Wikipedia, is what I was hoping for:
http://www.stanford.edu/class/msande273/resources/Blank%20presentation%20101403.pdf

]]> By: Paid Content : Inside Word: Why Do So Many Startups Fail? http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1477 Paid Content : Inside Word: Why Do So Many Startups Fail? Sat, 12 Sep 2009 09:10:40 +0000 http://steveblank.com/?p=3505#comment-1477 [...] post: In a series of recent posts on his blog, Blank recaps some of the tenets of his theory. A central belief is that the [...] [...] post: In a series of recent posts on his blog, Blank recaps some of the tenets of his theory. A central belief is that the [...]

]]> By: Inside Word: Why Do So Many Startups Fail? | Everyone Read It! http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1475 Inside Word: Why Do So Many Startups Fail? | Everyone Read It! Sat, 12 Sep 2009 04:46:44 +0000 http://steveblank.com/?p=3505#comment-1475 [...] post: In a series of recent posts on his blog, Blank recaps some of the tenets of his theory. A central belief is that the [...] [...] post: In a series of recent posts on his blog, Blank recaps some of the tenets of his theory. A central belief is that the [...]

]]> By: Kirk Symons http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1457 Kirk Symons Tue, 08 Sep 2009 03:12:18 +0000 http://steveblank.com/?p=3505#comment-1457 I have been through several start-ups in the past and am now in one again. I think that the insights in this series of blogs, and the Youtube videos on Customer Development (see link at top of page), ring very true. The start-up in my past that was most successful, was the one that focused on understanding what the customers wanted. It was started by two Founders with an initial vision for the company and key products in the Telecom industry; but that vision was tweaked as we saw where the marketplace was evolving and what our main customers were looking for. Our CEO and our VP Marketing spent a lot of their time talking to and listening to our customers. When the business had built up significant credibility, we received a good buy-out offer from one of our customers. 12 years later, I am in another start-up, but in a different field, and we are going through various growing pains. This series of articles is a good reminder to me on where we have to keep our focus : Develop your products and services through interactive engagement with your early adopter customers, and then bring it to the bigger market. Thank you Steve. I have been through several start-ups in the past and am now in one again. I think that the insights in this series of blogs, and the Youtube videos on Customer Development (see link at top of page), ring very true.

The start-up in my past that was most successful, was the one that focused on understanding what the customers wanted. It was started by two Founders with an initial vision for the company and key products in the Telecom industry; but that vision was tweaked as we saw where the marketplace was evolving and what our main customers were looking for. Our CEO and our VP Marketing spent a lot of their time talking to and listening to our customers. When the business had built up significant credibility, we received a good buy-out offer from one of our customers.

12 years later, I am in another start-up, but in a different field, and we are going through various growing pains. This series of articles is a good reminder to me on where we have to keep our focus : Develop your products and services through interactive engagement with your early adopter customers, and then bring it to the bigger market.

Thank you Steve.

]]> By: Steve Blank explains the evolution of Customer Development « FrameThink – Frameworks for Thinking People http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1452 Steve Blank explains the evolution of Customer Development « FrameThink – Frameworks for Thinking People Mon, 07 Sep 2009 20:04:55 +0000 http://steveblank.com/?p=3505#comment-1452 [...] The Leading Cause of Startup Death [...] [...] The Leading Cause of Startup Death [...]

]]> By: davidwlocke http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1444 davidwlocke Fri, 04 Sep 2009 05:54:58 +0000 http://steveblank.com/?p=3505#comment-1444 Its a matter of determining if you will position your product as a discontinuous/radical or continuous/sustaining innovation. If the former, do what Moore and Christensen says, which most companies reject outright, thus hurling themselves to their deaths. If the latter, the process in the diagram is all you have. It may have been true that years ago software was different. I still think it is, but orthodox managers don't see it that way. You don't have to engage in that list of things in your comment. They are things that certain software companies engage in, and their success hasn't been validated by results. Its a matter of determining if you will position your product as a discontinuous/radical or continuous/sustaining innovation. If the former, do what Moore and Christensen says, which most companies reject outright, thus hurling themselves to their deaths. If the latter, the process in the diagram is all you have.

It may have been true that years ago software was different. I still think it is, but orthodox managers don’t see it that way. You don’t have to engage in that list of things in your comment. They are things that certain software companies engage in, and their success hasn’t been validated by results.

]]> By: davidwlocke http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1443 davidwlocke Fri, 04 Sep 2009 05:47:40 +0000 http://steveblank.com/?p=3505#comment-1443 The process diagram is typical of the process used in post-tornado/late market/SaaS/commodity/recession and alll complementor markets. These markets live entirely in decreasing returns economics. These are the markets for continuous innovations of all stripes. These markets are also the markets that MBAs are trained to deal with, markets where cost management is more important than technical innovation. My pet name for the process is "Ortho." Ortho kills. Increasing returns markets exist. They exist where market research tells you a market does not exist. That is enough to scare away the orthos. And, if it doesn't scare away the orthos, they still use the ortho approach, and then blame the innovation, rather than the managers who simply took the wrong path to, the wrong process to, the market. I agree. The process managers take kills the company, and not just software companies, not just products, rather than services. But, ultimately, the process is a matter of choice, so the real blame goes to the managers. A successful process exists, but few attempt it. The process diagram is typical of the process used in post-tornado/late market/SaaS/commodity/recession and alll complementor markets. These markets live entirely in decreasing returns economics. These are the markets for continuous innovations of all stripes. These markets are also the markets that MBAs are trained to deal with, markets where cost management is more important than technical innovation. My pet name for the process is “Ortho.” Ortho kills.

Increasing returns markets exist. They exist where market research tells you a market does not exist. That is enough to scare away the orthos. And, if it doesn’t scare away the orthos, they still use the ortho approach, and then blame the innovation, rather than the managers who simply took the wrong path to, the wrong process to, the market.

I agree. The process managers take kills the company, and not just software companies, not just products, rather than services. But, ultimately, the process is a matter of choice, so the real blame goes to the managers.

A successful process exists, but few attempt it.

]]> By: Michael Murray http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1436 Michael Murray Tue, 01 Sep 2009 14:02:39 +0000 http://steveblank.com/?p=3505#comment-1436 Great post! Underlying truth is a great process model for product development simply means that you can effectively and efficiently produce things nobody wants, right down to GM and release. Eager to read more! Great post! Underlying truth is a great process model for product development simply means that you can effectively and efficiently produce things nobody wants, right down to GM and release.

Eager to read more!

]]> By: Jason http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1395 Jason Mon, 31 Aug 2009 15:21:44 +0000 http://steveblank.com/?p=3505#comment-1395 "Most experienced entrepreneurs will tell you that the model collapses at first contact with customers." Reminds me of the quote, which I have used many times to make the point: "No battle plan survives contact with the enemy" - Helmuth von Moltke “Most experienced entrepreneurs will tell you that the model collapses at first contact with customers.”

Reminds me of the quote, which I have used many times to make the point:

“No battle plan survives contact with the enemy”

– Helmuth von Moltke

]]> By: The Customer Development Manifesto: Reasons for the Revolution (part 1) « Steve Blank http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1393 The Customer Development Manifesto: Reasons for the Revolution (part 1) « Steve Blank Mon, 31 Aug 2009 13:03:07 +0000 http://steveblank.com/?p=3505#comment-1393 [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram [...] [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram [...]

]]> By: links for 2009-08-28 « Blarney Fellow http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1386 links for 2009-08-28 « Blarney Fellow Sat, 29 Aug 2009 01:06:51 +0000 http://steveblank.com/?p=3505#comment-1386 [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram « Steve Blank (tags: startup) [...] [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram « Steve Blank (tags: startup) [...]

]]> By: Paul http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1385 Paul Fri, 28 Aug 2009 17:35:09 +0000 http://steveblank.com/?p=3505#comment-1385 Hi Steve, I am looking forward to your next post. Very thought provoking. Quote: "the model collapses at first contact with customers" Developing a plan before having contact with customers could be part of the problem? Isn't the real idea of product development that you talk to potential customers early? Regards Paul Hi Steve,

I am looking forward to your next post. Very thought provoking.

Quote: “the model collapses at first contact with customers”

Developing a plan before having contact with customers could be part of the problem?

Isn’t the real idea of product development that you talk to potential customers early?

Regards Paul

]]> By: Ben http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1384 Ben Fri, 28 Aug 2009 17:09:40 +0000 http://steveblank.com/?p=3505#comment-1384 This rings true. Working on the FP&A side of the business case, the life cycle above sounds very familiar for new releases into existing markets. However, we probably dove in a little more blind than one should. Rather than focus groups, we relied on the product managers and their interactions with the customer base to determine incremental functionality for the next release. This rings true. Working on the FP&A side of the business case, the life cycle above sounds very familiar for new releases into existing markets. However, we probably dove in a little more blind than one should. Rather than focus groups, we relied on the product managers and their interactions with the customer base to determine incremental functionality for the next release.

]]> By: alan commike http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1382 alan commike Fri, 28 Aug 2009 07:44:01 +0000 http://steveblank.com/?p=3505#comment-1382 Steve - How would customer development apply to non-software companies? I appreciate the "get it out there early", feedback loops, and many of the great things you're talking about, but would you have been able to apply it at Ardent, for example? I apologize in advance, I haven't read your book yet. It's on my "to read" list. ...alan ps. i did use an early ardent/stardent machine. can't remember which now. it was long ago... Steve – How would customer development apply to non-software companies? I appreciate the “get it out there early”, feedback loops, and many of the great things you’re talking about, but would you have been able to apply it at Ardent, for example?

I apologize in advance, I haven’t read your book yet. It’s on my “to read” list.

…alan

ps. i did use an early ardent/stardent machine. can’t remember which now. it was long ago…

]]> By: Knowtu » links for 2009-08-27 http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1380 Knowtu » links for 2009-08-27 Fri, 28 Aug 2009 01:04:39 +0000 http://steveblank.com/?p=3505#comment-1380 [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram « Steve Blank (tags: startups) [...] [...] The Leading Cause of Startup Death – Part 1: The Product Development Diagram « Steve Blank (tags: startups) [...]

]]> By: Kulveer Taggar http://steveblank.com/2009/08/27/the-leading-cause-of-startup-death-the-product-development-diagram/#comment-1379 Kulveer Taggar Thu, 27 Aug 2009 18:18:14 +0000 http://steveblank.com/?p=3505#comment-1379 Great post. I've first hand experience of this. It's safer to assume nobody knows anything and to then keep burn low as hell, iterate as quickly as possible, and be persistent. Great post. I’ve first hand experience of this. It’s safer to assume nobody knows anything and to then keep burn low as hell, iterate as quickly as possible, and be persistent.

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