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PIVOTING

Nathan Furr

BUSINESS MODEL COMPETITION

The BMC is NOT a Business Plan Competition
• What are we rewarding? • The process • Testing assumptions • Making needed changes • Validation from customers

• What are we NOT rewarding? • Sales pitch about the product • Massive but un-validated markets • Hot air claims • Fancy teams and advisors

The Three Keys to the BMC
1. Identify assumptions
• Use canvas scorecard

2. Test assumptions with customers 3. Pivot and tell the story

Surprising Examples:

How Will We Know …

PIVOTS

What Is a Pivot?

Pivots …
• Adjust to Uncertainty • Correct Failure • Leverage Learning • Feel Good

Are All Pivots Good?

Research Project
• Multi-case study • 10 innovative companies over 1 year • Successive interviews • Convenience sample of corporate innovators

Dan and the Task Management Dilemma

Pivot Cycles
• 2-3 months cycles • Paypal, Intuit, Amazon, Mondelez • Overcome some initial skepticism • Recognize true patterns • E.g.: slow-blade theory

Pivot Broad Early
• Focus matters … • Go broad first • Try parallel

Look for Pivot Takeoff

Don’t Stop Pivoting

BACK TO THE BMC

How Will We Know …