Lean for Sharing Ventures: Four Times Harder, Four Times More Rewarding, Ted Ladd, Hult International Business School
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The document discusses the complexities of designing sharing ventures, emphasizing the need for effective business models for both suppliers and demanders while leveraging network effects. It highlights the importance of diversifying acquisition channels and understanding the value derived from user volume and diversity. Additionally, it outlines strategies for customer discovery and the importance of early adopters in achieving successful growth within the sharing economy.
Lean for Sharing Ventures: Four Times Harder, Four Times More Rewarding, Ted Ladd, Hult International Business School
- 1. Ted Ladd PhD Professor of Entrepreneurship San Francisco | Boston | New York | Ashridge | London | Dubai | Shanghai Leveraging Lean in the Sharing Economy
- 2. Sharing venture: 1. an online platform 2. between two sides of a transaction 3. that reduces coordination costs 4. to provide access without ownership.
- 3. Challenge Sharing ventures are 4x harder to design 1. Business Model for Suppliers 2. Business Model for Demanders 3. Same Place 4. Same Time • Why?
- 4. Network Effect • Value for each user ≈ # of users • Bigger = Better • Economies of scale of demand
- 5. Problem: Theory is incomplete • # of users ≠ value for each user • Value = volume x diversity • Example: Smartwatch apps • Where to look?
- 6. Sales Cycle
- 8. 1: Diversify acquisition channels • Keep old Canvases • Evaluate sub-optimal channels – For non-overlapping appeal • Rotate channels for diversity of value • Example: Hooves.dk • When?
- 9. First Mover Advantage • Typically, a myth – Second Mover Advantage, Fast Followers • Network Effect Winner Takes All – Explosive growth after tipping point – First Mover is real! • Renewed attention on Early Adopters – To drive indirect network effect
- 10. Adoption Cycle Area under curve = installed base Moore, G. (2002) Crossing the chasm: Marketing and selling disruptive products to mainstream customers Venture maturity #ofcustomers
- 11. (Poor) Options for Early Adopters • Spend on marketing – Increases early costs • Lower prices – Reduces early revenue • Arrive with deep pockets – Expensive capital • Build Measure Learn (Experiment) – Shows biz model to competitors – Jeopardizes early reputation
- 12. 2: Formalize Customer Discovery • Data for Hypothesis Testing • Conversations as Warm Sales Leads • Track, revisit, encourage, persuade • Explore and exploit for ambidexterity
- 13. Leverage Lean for Sharing • Network effect promotes Early Adopters 1. Rotate channels for diversity of demand 2. Dual use for Customer Discovery [email protected]
- 14. Related Research from Ted Ladd • Limits of Lean – Harvard Business Review (2016) • Customer Interaction and Experimentation – Academy of Management conference (2015) • Social Venture Canvas – Stanford Social Innovation Review (Spring 2015) – International Journal of Entrepreneurship & Innovation (Feb 2017) • Customer Development and Effectuation – Management Teaching Review (March 2016) • Impact of Lean on Risk Aversion – Drafting