According to Statistics Brain global data, 44% of startups wind up by year 3 worldwide.
What’s more, the pace of failure is picking up and with it comes erosion of investor funds. In India specifically, last year 15 startups shuttered and that number has almost doubled to 29 in the first six months of 2016 (source: Inc42, a tech-focused news and events startup). 8 out of 10 entrepreneurs admit that the top 2 challenges they faced when they started their dream ventures were: 1) Figuring out Product – Market fitment and 2) Execution & launching the product in the market with limited resources and the challenges associated with doing things for the 1st time.
Startups of today missed the brief of “innovate fast, fail fast”; instead they went for “scale fast, fail fast” culture. Scale has nothing to do with innovation. Discounts may bring in customers but it cannot make them stay. This is a conundrum that any new or established entrepreneurs or Product Managers face. All they do is invariably start off on the wrong foot; solve a problem with technology. No amount of research goes into understanding the root cause of the problem. The customer problem might manifest itself in multiple, unknown and non-linear ways. In the same way, the understanding of the solution would always fall in the realm of ‘known’ and ‘unknown’ and that should be the starting point of innovation. They put all their eggs in one basket and are unwilling to explore multiple options.
Competitive advantage doesn’t come overnight as it is a continuous process of adhering to principles ranging from mindset to process which can be aligned and applied to solve complex problems of customers. Competitive advantage through innovation most often occurs within a set of constraints, such as viability, profitability and desirability and that a traditional business-minded rational/analytic approach should be complemented with design thinking.
Did you have the same problem of pinpointing the actual problem before you embarked on solving it? Do you have trouble laying out the solution in a framework that has effect on the entire value chain of a customer’s journey? Have you been grilled on differentiating the “value” and valuation” of your startup or even an idea? Then join us to explore the answer together. All the said and unsaid problems, frameworks to make it simple, pitches to socialize your idea, marketing strategy to position your solution to the right audience and more have been painstakingly put together in our new book “Mystery to Mastery- Ideation to Productization Playbook”.
Ready to cross the chasm between finding the right problem and creating the best solution? The book is launching! Let’s undertake this journey together!