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Start Experimenting to Reduce Risk

Spending

STRATEGYZER.COM / VPD / TEST / 3.0

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When you start exploring new ideas, you are usually in a space of maximum uncertainty. You don’t know if your ideas will work. Refining them in a business plan won’t make them more likely to succeed. You are better off testing your ideas with cheap experiments to learn and systematically reduce uncertainty. Then increase spending on experiments, prototypes, and pilots with growing certainty. Test all aspects of your Value Proposition and Business Model Canvases, all the way from customers to partners (e.g., channel partners).

Assumptions Granular documents and spreadsheets Masked via detailed plan Avoided Not addressed adequately Historical facts from past success Execution of a plan Inside the building Planning Business plan We know

$

$ Progress $

$ $ Uncertainty

$ $

Search

Execute

Numbers Detail Uncertainty Failure Risk Decision-basis

Evidence-based Dependent on level of evidence from experiments Acknowledged and reduced via experiments Embraced as means to learn and improve Minimized via learnings Facts and insights from experiments

Focus

Experimentation and learning

Where

Outside the building

Process Tools Attitude

Customer development and lean start-up Business Model and Value Proposition Canvas Our customers and partners know

Profile for Joseph Ngongo

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