who is the customer? what problem is being solved?
Thinking more about the SVASE event earlier this week – it becomes clear that technology is not enough. It is always interesting (especially as someone who considers himself a technologist), but it isn’t enough.
Several of the companies presenting at Launch Silicon Valley had no customer related problem they were trying to solve. This was reinforced yesterday with a meeting we had with Chris Brody in New York yesterday. He was an investor in the company I have recently left, Sapias, Inc.
We have received much advice as we discuss what we are going to do next with our favorite investors, VCs, colleagues and advisers. But the best is focused on making sure that we know who the customer is and what problem we are trying to solve. As technologists, that isn’t always the easiest advice to follow – you want to do something that is ‘way cool’.
To be clear, sometimes you think you know who the customer is, and what problem they have that needs to be addressed – only to find that your solution is for a different customer and solves a different need. But you need to make sure that these filters are applied early and often: Is there a customer? Does he have a problem that you can address?
Chris Brody, offered us his set of ‘five questions’. Without explanation of the numeric inflation involved, there were seven questions on the list of five questions when he handed them to us. The first two were the two listed above.
His list will be tacked to my wall – and the rest of the questions may be fodder for future blogs.
Jim on June 8th 2007 in Companies
3 Responses to “who is the customer? what problem is being solved?”
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the islander responded on 09 Jun 2007 at 7:27 am #
Hi Jim — How great to have another Panttaja blogging! I just wanted to chime in with the simple question a venture capitalist once asked me — is it a vitamin or a painkiller? It’s a question I always ask myself — a nice-to-have or a have-to-have. (Of course this doesn’t work with consumer products) The tricky part is that with new technology that changes the paradigm, customers don’t realize they won’t be able to live without it….until they have it. I sold the first voice mail systems back in the early 80’s and people just didn’t think they needed it — those pink slips worked just fine…..cynthia
Jim responded on 10 Jun 2007 at 5:38 am #
Thank you Cynthia. In the case of voice mail - it would become a have-to-have - but wasn’t at the time. I remember the reaction inside IBM when voice mail first arrived - it was quite negative. Somehow if you went to voice mail - the assumption was that that the person was avoiding your call.
I think part of the key is to ask the questions. If the answers to some of them aren’t ideal, it doesn’t mean you should abandon the idea - but you should think carefully about whether to proceed - and if so - how to overcome some of the answers.
Some entrepreneurs manage to get very far along without having thought through these questions. [and the whole point of all of this is to make sure that I am asking these questions as I evaluate possibilities]
Jim Panttaja » A road show of sorts responded on 11 Jun 2007 at 3:45 am #
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