EntrepreneurshipLesson 1 of 4 in the course Business Model and Plan

Customer Discovery, Business Models, Innovation, and Value Propositions

5 flashcards · 4 quiz questions · 5 match pairs · 4 fill-in sentences · English

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Summary

This lesson explains why entrepreneurs should not assume that customers will appear simply because a product has been built. It introduces customer discovery and the related ideas of problem/solution fit and product-market fit.

The phrase “if you build it, they will come” captures an appealing but risky idea: that creating a product is enough to attract customers. In entrepreneurship, a product may be technically impressive and still fail if people do not need it, value it, or know how to use it.

All flashcards

What is customer discovery?
Learning about prospective customers, their circumstances, and the problems they want solved.
What is a direct business model?
A model in which the users of an offering are also its customers.
What is product innovation?
A change that introduces or modifies the product or service a venture offers.
What is business model innovation?
A fundamental change in how a business creates, delivers, or captures value.
What is a value proposition?
A summary of the benefits customers can expect from a product or service.

Quiz questions

  1. How does disruptive innovation commonly gain a foothold in a market?Answer: It begins with an accessible offering for overlooked customers or nonconsumers.
  2. Which dimensions can form part of a customer’s job to be done?Answer: Functional, social, and emotional outcomes.
  3. What is a pivot in entrepreneurship?Answer: A change in direction informed by learning and evidence.
  4. What should a value proposition connect for a customer group?Answer: A need or job with the benefits an offering provides.

Based on Entrepreneurship by Michael Laverty, Chris Littel (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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