1
00:00:00.831 --> 00:00:01.831
Hello

2
00:00:02.454 --> 00:00:03.954
In this session,

3
00:00:03.954 --> 00:00:06.454
we're going to talk about the method

4
00:00:06.454 --> 00:00:08.554
Think about method

5
00:00:08.554 --> 00:00:10.354
But don't get me wrong

6
00:00:10.354 --> 00:00:13.754
This is not the method for
your scientific assignment

7
00:00:13.754 --> 00:00:17.054
This is the method about your businesses

8
00:00:17.804 --> 00:00:21.904
It is kind of a guideline for you about

9
00:00:21.904 --> 00:00:23.954
where to start your businesses

10
00:00:23.954 --> 00:00:26.254
and how to start your  businesses

11
00:00:26.804 --> 00:00:28.654
So, in this session,

12
00:00:28.654 --> 00:00:32.054
we will cover three well-known methods

13
00:00:32.054 --> 00:00:34.504
Such as Lean Startup Method,

14
00:00:34.504 --> 00:00:39.054
Design Thinking, and Scamper Method

15
00:00:41.450 --> 00:00:44.950
Let's start with Lean Startup Methods

16
00:00:44.950 --> 00:00:46.850
It is so popular

17
00:00:46.850 --> 00:00:49.900
So you should be very familiar
with this concept

18
00:00:50.150 --> 00:00:52.950
Let's say,

19
00:00:52.950 --> 00:00:56.400
you start your own e-commerce company

20
00:00:56.400 --> 00:00:59.900
Then, you have to pick up your own items

21
00:00:59.900 --> 00:01:02.450
and you should build up your website

22
00:01:02.450 --> 00:01:07.850
and you purchase your materials
or items or the others

23
00:01:07.850 --> 00:01:08.950
and so on

24
00:01:08.950 --> 00:01:12.250
Also, you have to create an advertisement

25
00:01:12.250 --> 00:01:14.900
and decide where to advertise

26
00:01:14.900 --> 00:01:19.750
and be ready to hit your consumers

27
00:01:21.200 --> 00:01:24.600
So, my question is,
how much will it cost?

28
00:01:25.800 --> 00:01:28.500
If you do everything

29
00:01:29.250 --> 00:01:32.300
Of course, probably,
you will save your money

30
00:01:32.850 --> 00:01:34.949
But it still cost a lot

31
00:01:37.939 --> 00:01:41.589
Let's say you spent $15,000 on it

32
00:01:42.639 --> 00:01:45.539
You worked really hard on it

33
00:01:45.539 --> 00:01:48.689
But when you launch your business,

34
00:01:49.389 --> 00:01:51.689
what if you don't have any consumers?

35
00:01:51.689 --> 00:01:54.889
What if you don't get
any attention at all?

36
00:01:55.989 --> 00:01:58.389
What if no one is
looking for your website?

37
00:01:59.760 --> 00:02:02.060
You still keep spending your money,

38
00:02:02.060 --> 00:02:05.210
and you already purchased your stuff

39
00:02:05.210 --> 00:02:09.660
And let's say you've got two employees

40
00:02:09.660 --> 00:02:12.660
Then, you're going to pay them

41
00:02:12.660 --> 00:02:14.960
a month, two months, or three months

42
00:02:15.910 --> 00:02:18.510
Can you be sustainable?

43
00:02:18.510 --> 00:02:19.410
What do you think?

44
00:02:19.710 --> 00:02:21.910
It is really hard, right?

45
00:02:23.760 --> 00:02:25.810
This is not a joke

46
00:02:25.810 --> 00:02:26.460
Think about it

47
00:02:26.460 --> 00:02:28.560
This is how most businesses fail

48
00:02:29.960 --> 00:02:31.410
When you start,

49
00:02:32.210 --> 00:02:37.060
if everything is different
from what you expected

50
00:02:37.360 --> 00:02:40.060
but you already have spent

51
00:02:40.060 --> 00:02:43.560
tons of money and effort and energy on it

52
00:02:44.460 --> 00:02:47.660
Then, probably, you'll be
under tremendous stress,

53
00:02:47.660 --> 00:02:50.610
and you end up ruined

54
00:02:52.048 --> 00:02:54.898
This is kind of a whole story

55
00:02:55.348 --> 00:02:57.398
But we need to prepare our businesses

56
00:02:57.398 --> 00:03:00.248
more reasonable and smarter

57
00:03:01.448 --> 00:03:05.198
We're not going to go to this process

58
00:03:05.198 --> 00:03:07.848
We want to avoid this stress

59
00:03:08.348 --> 00:03:11.248
So, the Lean Startup is

60
00:03:11.248 --> 00:03:14.048
how we avoid this kind of stress

61
00:03:14.048 --> 00:03:17.448
Lean Startup is a story about how to do it

62
00:03:18.865 --> 00:03:20.065
Do you understand that?

63
00:03:20.365 --> 00:03:23.615
So, you now know
why Lean Startup is important

64
00:03:24.215 --> 00:03:25.815
Let's look at this picture

65
00:03:25.815 --> 00:03:29.165
This picture is about cooking

66
00:03:29.165 --> 00:03:33.965
He or she is working on
getting fat out of pork

67
00:03:34.365 --> 00:03:38.615
Do you know how we call
the fat removed meat?

68
00:03:40.364 --> 00:03:43.414
We say it is "lean meat"

69
00:03:45.064 --> 00:03:47.414
This is what Lean Startup means

70
00:03:47.764 --> 00:03:49.714
When you start your businesses,

71
00:03:49.714 --> 00:03:54.114
we should remove all the fat out of pork

72
00:03:55.214 --> 00:03:58.714
Because the fat is not necessary in this case

73
00:03:59.264 --> 00:04:03.214
So, Lean Startup is about
getting rid of redundancies

74
00:04:03.214 --> 00:04:04.764
when you start your businesses

75
00:04:06.660 --> 00:04:08.810
Trimming the fat from meat

76
00:04:08.810 --> 00:04:10.860
Then, we make a lean meat

77
00:04:10.860 --> 00:04:12.910
Same thing happen to the businesses

78
00:04:13.310 --> 00:04:17.110
Lean Startup concept came from
this best selling book,

79
00:04:17.110 --> 00:04:20.410
which is "The Lean Startup"
written by Eric Ries

80
00:04:20.560 --> 00:04:23.960
Again, the Lean Startup
refers to well-drained method

81
00:04:23.960 --> 00:04:25.910
for startup development

82
00:04:29.210 --> 00:04:31.710
Let's define the concept of
the Lean Startup

83
00:04:31.710 --> 00:04:32.760
We already mentioned that

84
00:04:32.760 --> 00:04:35.060
The Lean Startup concept is about

85
00:04:35.060 --> 00:04:38.110
startup development methodology

86
00:04:39.647 --> 00:04:41.797
with minimal resources

87
00:04:43.537 --> 00:04:47.337
Basically, we want to
avoid wasting resources

88
00:04:47.337 --> 00:04:52.987
on your bad, terrible or wrong idea

89
00:04:52.987 --> 00:04:54.437
If your idea is good,

90
00:04:54.437 --> 00:04:56.937
if your business fit very well in the situation,

91
00:04:56.937 --> 00:04:58.837
then, it's perfectly fine

92
00:04:58.837 --> 00:05:01.737
But many times, your idea,

93
00:05:01.737 --> 00:05:04.137
it's not good, your idea is wrong,

94
00:05:04.137 --> 00:05:08.287
and your idea not 
perfectly match with your situation

95
00:05:08.287 --> 00:05:09.937
and you don't have consumers

96
00:05:09.937 --> 00:05:11.687
And consumers think different

97
00:05:11.687 --> 00:05:16.037
But your expectation is
totally different from the real situation

98
00:05:16.037 --> 00:05:18.787
Then, in this case, we don't want to waste

99
00:05:18.787 --> 00:05:23.737
our valuable resources
on this wrong situation

100
00:05:24.365 --> 00:05:28.115
How to avoid wasting your resources?

101
00:05:28.365 --> 00:05:31.015
Lean Startup is the answer

102
00:05:31.565 --> 00:05:35.665
Second, therefore,
we need to validate your ideas

103
00:05:35.665 --> 00:05:39.715
and we need to learn from your consumers

104
00:05:39.715 --> 00:05:42.765
before we actually start your businesses

105
00:05:42.765 --> 00:05:46.115
Before we actually start
our businesses full scale,

106
00:05:46.115 --> 00:05:47.815
we need to check everything

107
00:05:47.915 --> 00:05:51.915
This is the logic of Lean Startup

108
00:05:53.505 --> 00:05:56.055
Let's look at the principle of Lean Startup

109
00:05:56.055 --> 00:05:57.405
The first step is,

110
00:05:57.405 --> 00:06:01.605
you formulate your own hypotheses
ike a scientist

111
00:06:01.605 --> 00:06:05.505
You develop your own hypotheses

112
00:06:05.505 --> 00:06:09.105
about your idea and consumer's reaction

113
00:06:09.879 --> 00:06:12.179
You conduct a business model canvas

114
00:06:12.529 --> 00:06:15.829
Then, later, you need to
listen to consumer's feedback

115
00:06:15.829 --> 00:06:18.079
You should go out and just ask them

116
00:06:18.079 --> 00:06:21.679
and try to get the feedback from your consumers

117
00:06:22.429 --> 00:06:24.529
This is a good way to

118
00:06:24.529 --> 00:06:27.829
quickly validate
and revise your hypotheses

119
00:06:27.829 --> 00:06:31.079
Once you receive
the feedback from consumers,

120
00:06:31.079 --> 00:06:33.629
then, you revise your hypotheses

121
00:06:33.629 --> 00:06:35.279
If there's something wrong,

122
00:06:35.279 --> 00:06:37.079
then you change your hypotheses

123
00:06:37.079 --> 00:06:40.729
and apply this newly developed
hypotheses to the situation

124
00:06:40.729 --> 00:06:43.129
and ask the consumers again and again

125
00:06:43.129 --> 00:06:45.379
This process is called as Pivot

126
00:06:45.379 --> 00:06:47.879
We will talk about what Pivot is

127
00:06:49.096 --> 00:06:54.396
Third, you need to
develop with fast iteration

128
00:06:55.146 --> 00:06:57.346
Go back and forth

129
00:06:57.346 --> 00:07:00.996
You propose your minimum viable product,

130
00:07:00.996 --> 00:07:02.446
which is very important concept

131
00:07:02.446 --> 00:07:05.396
This is MVP

132
00:07:06.488 --> 00:07:07.838
Let's look at the picture

133
00:07:07.838 --> 00:07:11.088
First, you need to develop your hypothesis,

134
00:07:11.088 --> 00:07:12.938
then you prepare something

135
00:07:12.938 --> 00:07:15.088
This is a Build process

136
00:07:16.488 --> 00:07:17.388
Then later,

137
00:07:17.388 --> 00:07:21.438
you show your
hypothesis and product

138
00:07:21.438 --> 00:07:22.638
to the consumers

139
00:07:23.288 --> 00:07:26.388
To just introduce
your service to consumers

140
00:07:27.247 --> 00:07:33.097
Through the MVP, minimum viable product

141
00:07:33.097 --> 00:07:35.997
You don't have to prepare full scale service

142
00:07:35.997 --> 00:07:38.547
You don't have to prepare full scale product

143
00:07:38.547 --> 00:07:42.447
Just you provide and introduce

144
00:07:42.447 --> 00:07:45.397
minimum viable product

145
00:07:45.397 --> 00:07:47.797
Minimum viable product to consumers

146
00:07:49.381 --> 00:07:53.081
Then, you can see the consumer's reaction

147
00:07:53.081 --> 00:07:54.781
or consumer's feedback

148
00:07:54.781 --> 00:07:57.731
You receive the consumer's
reaction and feedback

149
00:07:57.731 --> 00:08:02.681
and you measure their reactions,
satisfaction, something like that

150
00:08:03.231 --> 00:08:05.881
Then you understand and identify

151
00:08:05.881 --> 00:08:09.681
what's wrong in your hypothesis

152
00:08:09.681 --> 00:08:12.231
This is analysis process

153
00:08:12.231 --> 00:08:15.981
Then, you will learn from your consumers

154
00:08:16.581 --> 00:08:18.031
Then, what happen?

155
00:08:18.031 --> 00:08:21.581
If there's something wrong,
you revise your hypothesis

156
00:08:21.581 --> 00:08:25.181
and rebuild your MVP

157
00:08:25.181 --> 00:08:28.881
and introduce your rebuild MVP
to the consumers again

158
00:08:28.881 --> 00:08:31.281
and you receive
the consumer's feedback again

159
00:08:31.281 --> 00:08:35.581
You learn again,
you revise your hypothesis again

160
00:08:35.581 --> 00:08:37.395
This is a whole process

161
00:08:39.758 --> 00:08:43.008
Let's look at Lean Startup term

162
00:08:43.708 --> 00:08:47.408
There are two very important concepts

163
00:08:47.408 --> 00:08:49.108
inside the Lean Startup

164
00:08:49.108 --> 00:08:53.558
First one, MVP,

165
00:08:53.558 --> 00:08:56.408
which is Minimum Viable Product

166
00:08:57.108 --> 00:08:59.908
Minimum viable product means,

167
00:09:00.358 --> 00:09:05.358
it is a product that functions at minimum level,

168
00:09:05.358 --> 00:09:07.058
not full scale

169
00:09:07.058 --> 00:09:08.558
Just a minimum

170
00:09:08.758 --> 00:09:10.358
Second, Pivot

171
00:09:10.358 --> 00:09:13.408
Pivot means, you change your directions

172
00:09:13.708 --> 00:09:16.808
This term came from basketball

173
00:09:17.508 --> 00:09:19.058
If you play the basketball,

174
00:09:19.058 --> 00:09:21.308
then you quickly turn the direction

175
00:09:22.158 --> 00:09:23.458
When you turn the direction,

176
00:09:23.458 --> 00:09:26.858
then one of your foot is on the floor,

177
00:09:28.158 --> 00:09:31.408
but the other foot has changed

178
00:09:31.958 --> 00:09:34.608
So, this is Pivot

179
00:09:35.552 --> 00:09:38.752
In the business area, if we say pivot,

180
00:09:38.752 --> 00:09:42.902
it's a strategy or change of your direction

181
00:09:43.252 --> 00:09:45.852
About your idea or your product

182
00:09:46.052 --> 00:09:47.902
So, when you start your business,

183
00:09:47.902 --> 00:09:52.452
if you think you should
change your services or hypothesis,

184
00:09:52.452 --> 00:09:55.602
then we simply say, "Let's pivot"

185
00:09:55.952 --> 00:09:58.052
For the MVP,

186
00:09:58.052 --> 00:10:00.852
there are many different types of MVP

187
00:10:01.552 --> 00:10:03.252
I want to introduce briefly

188
00:10:03.494 --> 00:10:04.394
Look at the first one

189
00:10:04.394 --> 00:10:05.894
It's Video Explanation

190
00:10:05.894 --> 00:10:07.344
Video Explanation means,

191
00:10:07.344 --> 00:10:11.544
you don't provide
full scale product or services

192
00:10:11.544 --> 00:10:15.644
Instead, you just take a picture or film

193
00:10:15.644 --> 00:10:20.294
You film the video about
your service and product

194
00:10:21.094 --> 00:10:24.594
Then you just simply explain

195
00:10:24.594 --> 00:10:26.094
how your product works,

196
00:10:26.094 --> 00:10:27.594
how your service works

197
00:10:28.344 --> 00:10:33.144
You make a video or short video clip,
upload this clip

198
00:10:33.144 --> 00:10:35.844
and let others understand

199
00:10:35.844 --> 00:10:38.994
concept of your service and product

200
00:10:39.194 --> 00:10:43.944
The best example of video explanation is
the Dropbox

201
00:10:44.544 --> 00:10:49.994
Drew Houston had an idea
about online file sharing

202
00:10:50.844 --> 00:10:54.994
Before he actually got into the business,

203
00:10:54.994 --> 00:10:56.994
he made a short video clip

204
00:10:56.994 --> 00:11:02.994
and uploaded this video clip
to very famous export website

205
00:11:02.994 --> 00:11:06.144
Then, so many programmers
watched the concept

206
00:11:06.144 --> 00:11:10.494
and then they were
impressed about the Dropbox idea

207
00:11:10.494 --> 00:11:12.994
So, Drew Houston could get

208
00:11:12.994 --> 00:11:16.194
long waiting list for the services

209
00:11:16.894 --> 00:11:20.644
Before he actually didn't make the services

210
00:11:21.094 --> 00:11:22.194
Second one

211
00:11:22.194 --> 00:11:25.444
It's Landing Page types of MVP

212
00:11:25.444 --> 00:11:27.594
Landing Page type of MVP is,

213
00:11:27.594 --> 00:11:29.794
you don't have any product of services

214
00:11:29.794 --> 00:11:33.194
But you just create a landing page
like a one page website

215
00:11:33.194 --> 00:11:33.744
Why?

216
00:11:33.744 --> 00:11:37.344
Because you just explain the concept
through the landing page

217
00:11:37.344 --> 00:11:40.194
Then you prepare for sign up link,

218
00:11:40.194 --> 00:11:42.394
then you get the potential consumers

219
00:11:42.394 --> 00:11:45.144
Best example of Landing Page is More Labs

220
00:11:45.144 --> 00:11:47.744
We will talk about More Labs later

221
00:11:47.744 --> 00:11:50.694
More Labs is very similar to

222
00:11:50.694 --> 00:11:52.444
hangover drink in Korea

223
00:11:52.444 --> 00:11:56.094
CEO of the More Labs is immigrant

224
00:11:56.094 --> 00:11:57.394
He visited Korea

225
00:11:57.394 --> 00:11:59.594
and he was impressed with

226
00:11:59.594 --> 00:12:01.494
hangover drink in Korea

227
00:12:01.994 --> 00:12:05.894
Back in America, he wanted to
make his own hangover drink,

228
00:12:05.894 --> 00:12:09.094
but he didn't know
the market needs in America

229
00:12:09.094 --> 00:12:12.944
Because the situation is
different from Korean and America

230
00:12:12.944 --> 00:12:16.244
So, that's why, instead of making his own drink,

231
00:12:16.244 --> 00:12:18.444
he made a landing page first

232
00:12:18.444 --> 00:12:20.494
In the landing page,

233
00:12:20.494 --> 00:12:22.494
he explained hangover drink

234
00:12:22.494 --> 00:12:24.794
and function of hangover drink

235
00:12:25.844 --> 00:12:29.694
Suddenly, he got a lot of
waiting list of consumers

236
00:12:30.244 --> 00:12:31.643
This is landing page

237
00:12:31.684 --> 00:12:33.534
Third, Crowdfunding

238
00:12:33.534 --> 00:12:35.284
You know the crowdfunding, right?

239
00:12:35.284 --> 00:12:37.134
There are many crowdfunding websites

240
00:12:37.134 --> 00:12:39.484
such as Kickstarter or Indiegogo

241
00:12:39.484 --> 00:12:43.884
If you go there and upload
your concept of the product service,

242
00:12:43.884 --> 00:12:47.184
then, you can sell your
product and service very quickly

243
00:12:47.184 --> 00:12:49.334
Also, we can expect the viral

244
00:12:49.834 --> 00:12:54.034
The best example of crowdfunding is Oculus

245
00:12:55.784 --> 00:12:58.234
Devices for AR

246
00:12:58.984 --> 00:13:01.434
Next one is Single Feature

247
00:13:01.434 --> 00:13:02.434
Single feature means,

248
00:13:02.434 --> 00:13:08.134
although you have many functions
in your services or product,

249
00:13:08.734 --> 00:13:11.534
when you introduce your service
for the first time,

250
00:13:11.534 --> 00:13:14.534
you just focus only
one feature of the function

251
00:13:14.534 --> 00:13:19.084
The best example of
single feature is Instagram

252
00:13:19.084 --> 00:13:23.384
Instagram initially had many functions,

253
00:13:23.384 --> 00:13:25.834
such as location based,

254
00:13:25.834 --> 00:13:30.234
login, and photosharing

255
00:13:30.484 --> 00:13:33.684
When CEO of the Instagram

256
00:13:33.684 --> 00:13:36.234
introduced this service
for the first time in the market,

257
00:13:36.234 --> 00:13:39.784
he just ignored the other features

258
00:13:39.784 --> 00:13:42.934
and just focused on photosharing functions

259
00:13:43.584 --> 00:13:45.534
It was perfectly worth

260
00:13:46.192 --> 00:13:47.442
Let's move on

261
00:13:47.442 --> 00:13:48.592
Piecemeal

262
00:13:48.592 --> 00:13:50.042
Piecemeal means,

263
00:13:50.042 --> 00:13:53.542
you approach the market step by step

264
00:13:53.542 --> 00:13:54.892
This is Piecemeal

265
00:13:55.442 --> 00:13:59.792
So, the Groupon adopt
the Piecemeal approach

266
00:13:59.792 --> 00:14:04.842
We will talk about how Groupon 
approached the market step by step

267
00:14:05.192 --> 00:14:07.042
Next one is Concierge

268
00:14:07.042 --> 00:14:11.292
Concierge means, service men in hotel

269
00:14:11.292 --> 00:14:15.292
If you go to the hotel, there are many service people

270
00:14:15.292 --> 00:14:17.242
This is concierge service

271
00:14:18.192 --> 00:14:21.142
Then you do manually

272
00:14:23.192 --> 00:14:26.392
and this type of MVP

273
00:14:26.392 --> 00:14:29.792
is good for
high-touch service delivery area

274
00:14:30.592 --> 00:14:33.142
Next one is Wizard of Oz

275
00:14:33.142 --> 00:14:35.342
You know the Wizard of Oz is

276
00:14:35.342 --> 00:14:38.792
the best selling book, best selling story

277
00:14:39.142 --> 00:14:42.142
There is a magician back then

278
00:14:43.242 --> 00:14:46.492
But in front, there's a different story

279
00:14:46.492 --> 00:14:48.742
You provide some service

280
00:14:48.742 --> 00:14:50.692
and consumers feel that

281
00:14:50.692 --> 00:14:52.842
this is fully automated service

282
00:14:52.842 --> 00:14:55.642
But actually, in the back then,

283
00:14:56.192 --> 00:14:59.042
there are workers

284
00:14:59.292 --> 00:15:02.492
Workers manually do the job

285
00:15:02.492 --> 00:15:06.542
Consumers didn't know
what happened in the back then

286
00:15:06.542 --> 00:15:08.092
There's two different side

287
00:15:08.092 --> 00:15:10.241
Back-end side and front-end side

288
00:15:11.948 --> 00:15:14.248
If we make a fully automated service,

289
00:15:14.248 --> 00:15:17.398
you should spend a lot of money and effort

290
00:15:17.398 --> 00:15:18.648
But we don't have time

291
00:15:18.648 --> 00:15:19.648
We don't have money

292
00:15:19.648 --> 00:15:23.598
Also, we don't want to waste
time and money on your wrong idea

293
00:15:23.598 --> 00:15:27.648
That's why, in order to test
whether your idea is good,

294
00:15:27.748 --> 00:15:29.848
we need to prepare

295
00:15:31.998 --> 00:15:36.998
apparently automated service,
but actually it's not

296
00:15:36.998 --> 00:15:42.348
If your business is
hardware, physical product,

297
00:15:42.348 --> 00:15:46.098
then, you can make a physical prototype

298
00:15:46.098 --> 00:15:48.048
through the 3D printing

299
00:15:48.048 --> 00:15:49.448
This is 3D Model

300
00:15:50.897 --> 00:15:52.247
So, now you understand

301
00:15:52.247 --> 00:15:55.897
what are different types of MVP

302
00:15:56.597 --> 00:15:57.847
Let's move on

303
00:15:57.847 --> 00:16:01.497
I want to give you real startups case

304
00:16:01.497 --> 00:16:03.397
about Lean Startup

305
00:16:03.397 --> 00:16:05.547
How they use the Lean Startup method

306
00:16:07.297 --> 00:16:09.997
What was the first item ever sold on eBay?

307
00:16:09.997 --> 00:16:11.797
You know the eBay, right?

308
00:16:11.797 --> 00:16:14.097
Which one is the first item?

309
00:16:14.497 --> 00:16:16.597
First one is Polaroid camera

310
00:16:17.247 --> 00:16:19.747
Second one is

311
00:16:19.897 --> 00:16:23.397
Switzerland knife

312
00:16:23.397 --> 00:16:26.047
We say it's MacGyver knife

313
00:16:26.847 --> 00:16:29.597
Third one is laser point

314
00:16:29.597 --> 00:16:31.547
But this laser point is broken

315
00:16:32.147 --> 00:16:35.247
Guess which one

316
00:16:35.247 --> 00:16:38.497
is the first item ever sold on eBay

317
00:16:38.497 --> 00:16:40.697
Polaroid camera, knife,

318
00:16:40.697 --> 00:16:46.247
or broken laser point?

319
00:16:46.597 --> 00:16:51.147
The answer was surprisingly,
broken laser point

320
00:16:53.704 --> 00:16:56.604
He is Pierre Omidyar,

321
00:16:56.604 --> 00:16:57.704
founder of eBay

322
00:16:57.704 --> 00:17:00.204
He said that

323
00:17:00.204 --> 00:17:04.604
A broken laser pointer was
a great way to test Auction web

324
00:17:05.354 --> 00:17:10.804
So, he uploaded this broken laser point

325
00:17:10.804 --> 00:17:13.304
on purpose to validate his idea

326
00:17:13.754 --> 00:17:17.254
His initial idea was auction web

327
00:17:17.254 --> 00:17:18.754
You know the auction

328
00:17:19.704 --> 00:17:20.904
What is auction?

329
00:17:20.904 --> 00:17:23.904
Auction is usually the process of

330
00:17:23.904 --> 00:17:26.654
selling or buying the product

331
00:17:28.604 --> 00:17:31.504
When you sell and buy the product,

332
00:17:31.504 --> 00:17:34.904
so many people participate in this process

333
00:17:34.904 --> 00:17:36.554
and they bid the prices

334
00:17:36.554 --> 00:17:40.304
Then the product

335
00:17:40.304 --> 00:17:43.404
can be sold at the highest price bidders

336
00:17:43.654 --> 00:17:45.804
This is auction

337
00:17:45.804 --> 00:17:48.604
He made this auction process 
through the online

338
00:17:48.604 --> 00:17:51.754
This is the first idea of eBay

339
00:17:52.304 --> 00:17:54.304
Then he wanted to test

340
00:17:54.304 --> 00:18:00.154
whether this online auction web work or not

341
00:18:00.154 --> 00:18:01.354
He wanted to test

342
00:18:02.654 --> 00:18:07.254
He founded auction web in 1995

343
00:18:07.604 --> 00:18:11.204
At that time, he was
working at the company

344
00:18:11.204 --> 00:18:13.054
After the work,

345
00:18:13.054 --> 00:18:16.604
he created this auction web and managed it

346
00:18:16.604 --> 00:18:19.404
at night like his personal hobby

347
00:18:20.004 --> 00:18:23.404
He uploaded broken laser pointer

348
00:18:23.404 --> 00:18:25.304
to test his website

349
00:18:25.554 --> 00:18:27.554
How much?
At $30

350
00:18:27.804 --> 00:18:32.254
Then, he mentioned that
this laser pointer is broken

351
00:18:32.604 --> 00:18:35.404
It's a broken laser pointer

352
00:18:35.504 --> 00:18:37.304
It's useless item

353
00:18:38.304 --> 00:18:40.604
In first week,

354
00:18:40.604 --> 00:18:44.404
nobody wanted and anyone did not bid

355
00:18:46.004 --> 00:18:47.004
But what happened later?

356
00:18:47.004 --> 00:18:49.604
After going into competition,

357
00:18:49.604 --> 00:18:53.104
there were some participated in the bidding

358
00:18:53.104 --> 00:18:55.454
and competition occurred

359
00:18:55.454 --> 00:18:59.904
Finally, it sells at $14.83

360
00:18:59.904 --> 00:19:01.503
Anyway, it's sold

361
00:19:03.053 --> 00:19:07.203
His idea was perfectly proven

362
00:19:08.153 --> 00:19:11.153
Even broken laser pointer

363
00:19:11.153 --> 00:19:14.253
was sold through the online website

364
00:19:14.403 --> 00:19:16.203
Online auction website

365
00:19:16.853 --> 00:19:19.153
Then, he felt confident

366
00:19:19.153 --> 00:19:24.103
and consumers reacted to this website

367
00:19:24.103 --> 00:19:25.303
very positively

368
00:19:26.353 --> 00:19:29.753
At that time,
when consumers used the auction web,

369
00:19:29.753 --> 00:19:33.553
they should pay for commission

370
00:19:33.553 --> 00:19:36.453
There is no online payment system

371
00:19:36.453 --> 00:19:39.103
because it's not real website

372
00:19:39.103 --> 00:19:42.153
So consumers should write check

373
00:19:42.153 --> 00:19:45.903
and send this check to his house

374
00:19:45.903 --> 00:19:48.503
One day, he said that

375
00:19:48.503 --> 00:19:50.853
There are a lot of check mails out there

376
00:19:50.853 --> 00:19:54.503
So I should hire a part-timer

377
00:19:54.503 --> 00:19:57.153
to deal with these checks

378
00:19:58.103 --> 00:19:59.853
Later, what happened?

379
00:19:59.853 --> 00:20:01.353
He quit his job

380
00:20:01.353 --> 00:20:06.303
and engaged this company seriously

381
00:20:06.303 --> 00:20:09.659
This is starting of eBay

382
00:20:10.971 --> 00:20:14.321
This is another example of
Lean Startup methodology

383
00:20:14.321 --> 00:20:16.421
Which is Groupon case

384
00:20:16.521 --> 00:20:18.121
Have you heard about Groupon?

385
00:20:18.121 --> 00:20:20.371
Groupon is

386
00:20:20.371 --> 00:20:25.221
social e-commerce, such as group purchase

387
00:20:25.821 --> 00:20:28.671
Andrew Mason thought about this idea

388
00:20:28.671 --> 00:20:32.021
while he was reading a book of tipping point

389
00:20:32.821 --> 00:20:34.871
Tipping point means

390
00:20:34.871 --> 00:20:38.921
if you reach out certain point,

391
00:20:38.921 --> 00:20:41.171
then you can do much better

392
00:20:41.171 --> 00:20:44.271
This is basic idea of tipping point

393
00:20:44.921 --> 00:20:47.771
He was impressed with this idea

394
00:20:47.771 --> 00:20:51.521
So, he started a business about the point

395
00:20:51.521 --> 00:20:54.621
He put the company name, The Point

396
00:20:54.871 --> 00:20:58.021
His initial idea was this

397
00:20:58.371 --> 00:21:01.071
If we have a lot of consumers,

398
00:21:01.071 --> 00:21:03.321
then we have bargain power

399
00:21:03.671 --> 00:21:06.121
Then, we can ask some discount

400
00:21:06.121 --> 00:21:08.521
to the prices from the service providers

401
00:21:09.871 --> 00:21:13.471
It is also good for service providers

402
00:21:13.921 --> 00:21:18.721
Because service providers can be exposured

403
00:21:18.721 --> 00:21:20.921
to lots of consumers

404
00:21:21.471 --> 00:21:23.021
at a short period of time

405
00:21:24.056 --> 00:21:25.706
It is kind of marketing

406
00:21:25.706 --> 00:21:30.156
from the service provider's point of view

407
00:21:30.156 --> 00:21:33.306
In this case, it's win-win situation

408
00:21:33.306 --> 00:21:35.656
It's really good idea

409
00:21:35.706 --> 00:21:39.656
So, he wanted to start this idea

410
00:21:40.406 --> 00:21:44.556
But, he didn't do this business full scale

411
00:21:44.556 --> 00:21:49.306
Instead, he started this business with his own blog

412
00:21:49.306 --> 00:21:51.856
Also, he did everything manually

413
00:21:51.856 --> 00:21:53.906
Manually means

414
00:21:53.906 --> 00:21:56.656
he printed out his own coupon

415
00:21:57.256 --> 00:22:01.156
and sent this coupon through emails

416
00:22:01.156 --> 00:22:03.606
There's no such system

417
00:22:04.106 --> 00:22:06.256
He used a blog

418
00:22:06.606 --> 00:22:11.256
Then, he conducted an experiment
with the pizza house

419
00:22:11.256 --> 00:22:14.456
on the first floor of his office

420
00:22:14.456 --> 00:22:16.806
He went down to pizza house

421
00:22:16.806 --> 00:22:19.656
and explained the concept

422
00:22:20.156 --> 00:22:21.806
to owner of the pizza house

423
00:22:21.806 --> 00:22:23.806
Owner of the pizza house agreed to do it

424
00:22:23.806 --> 00:22:26.506
Then he started his business

425
00:22:27.406 --> 00:22:29.456
This is the starting point of Groupon

426
00:22:29.456 --> 00:22:30.506
Later, what happened?

427
00:22:30.506 --> 00:22:33.756
Groupon became a very successful company

428
00:22:35.656 --> 00:22:37.806
Let's move on to another case

429
00:22:37.806 --> 00:22:38.806
This is Cardoc

430
00:22:38.806 --> 00:22:40.356
Have you heard about Cardoc?

431
00:22:40.356 --> 00:22:42.206
This is Korean company

432
00:22:42.206 --> 00:22:46.206
Cardoc was founded by Lee Jun-no

433
00:22:48.456 --> 00:22:53.756
He graduated from Hanyang University
majoring engineering

434
00:22:53.756 --> 00:22:57.656
He used to work at Daum Communication

435
00:22:57.656 --> 00:23:00.656
as team leader
before he started this company

436
00:23:00.656 --> 00:23:02.656
Over there,

437
00:23:02.656 --> 00:23:05.106
he thought about the business idea

438
00:23:05.656 --> 00:23:09.056
Actually, he was worried about

439
00:23:09.056 --> 00:23:12.156
restoring the appearance of cars

440
00:23:12.156 --> 00:23:14.756
At that time, he was leading

441
00:23:14.756 --> 00:23:18.306
an online foreign car clubs as his hobby

442
00:23:18.306 --> 00:23:22.306
He was very interested in foreign cars

443
00:23:22.306 --> 00:23:25.156
Foreign cars are expensive in Korea

444
00:23:25.656 --> 00:23:28.606
They were really worried about appearance

445
00:23:29.306 --> 00:23:30.456
But the problem was,

446
00:23:30.456 --> 00:23:34.556
there were not too many
specialized repair shop

447
00:23:34.556 --> 00:23:35.956
for the foreign cars

448
00:23:35.956 --> 00:23:37.206
This was his idea

449
00:23:38.256 --> 00:23:40.306
He came up with very simple solution

450
00:23:40.306 --> 00:23:41.706
His solution was

451
00:23:41.706 --> 00:23:45.756
It is nice to compare the cost of repair

452
00:23:45.756 --> 00:23:49.754
before people visit to repair shop

453
00:23:50.104 --> 00:23:52.954
Because we don't know
the quality of repair shops

454
00:23:53.554 --> 00:23:55.904
Before we go to the repair shop,

455
00:23:56.604 --> 00:24:01.054
if we have a chance to
compare the price and quality,

456
00:24:01.054 --> 00:24:03.854
then it is really good for the consumers

457
00:24:03.854 --> 00:24:07.354
Especially, the car owners of

458
00:24:07.354 --> 00:24:08.454
foreign cars

459
00:24:08.754 --> 00:24:11.954
So, he made a mobile application

460
00:24:12.504 --> 00:24:14.954
Then, this mobile application allowed

461
00:24:14.954 --> 00:24:18.004
end users to upload 3 photos

462
00:24:18.404 --> 00:24:21.404
when they get into accident

463
00:24:22.704 --> 00:24:24.804
Photos of damaged parts

464
00:24:25.454 --> 00:24:29.054
After uploading these three photos,

465
00:24:29.054 --> 00:24:34.104
consumers can get estimate, quote,

466
00:24:34.104 --> 00:24:37.104
from some nearby repair shops

467
00:24:37.104 --> 00:24:41.504
Get detail of the quote
from nearby repair shops

468
00:24:42.304 --> 00:24:43.554
What do you think?

469
00:24:43.554 --> 00:24:45.404
From the consumer's point of view,

470
00:24:45.404 --> 00:24:46.854
that is really convenient

471
00:24:46.854 --> 00:24:50.254
and they thought that
it is automatically working

472
00:24:50.854 --> 00:24:51.954
But it's not

473
00:24:52.704 --> 00:24:56.204
Because automatic system cost a lot

474
00:24:56.204 --> 00:24:58.854
But Lee Jun-no, CEO at that time

475
00:24:58.854 --> 00:25:00.854
didn't know how it will work

476
00:25:01.254 --> 00:25:04.654
So, instead of developing full scale service,

477
00:25:04.654 --> 00:25:06.754
he just developed

478
00:25:07.104 --> 00:25:10.554
front-end service

479
00:25:11.304 --> 00:25:15.354
And there were no
automatic system, back-end

480
00:25:15.354 --> 00:25:17.454
What happened in the company?

481
00:25:17.454 --> 00:25:22.804
Inside company,
end users upload three photos,

482
00:25:22.804 --> 00:25:26.154
then, in the company

483
00:25:28.604 --> 00:25:31.054
received the consumer's order

484
00:25:31.054 --> 00:25:32.754
Then, picked up the phone

485
00:25:32.754 --> 00:25:35.254
and just called the nearby repair shops

486
00:25:35.254 --> 00:25:37.854
If it's Hanyang repair shop,

487
00:25:37.854 --> 00:25:40.404
Hey, Hanyang repair shop,
we got a consumer call

488
00:25:40.404 --> 00:25:42.854
Please prepare for your quote

489
00:25:43.304 --> 00:25:48.354
I will send three photos to you
through the email

490
00:25:49.154 --> 00:25:54.004
Just open up the email
and look at the damaged area,

491
00:25:54.004 --> 00:25:55.604
and estimate the quote

492
00:25:55.604 --> 00:25:56.904
Send me a quote,

493
00:25:56.904 --> 00:26:01.654
and we will give this to consumers

494
00:26:01.654 --> 00:26:03.304
through the mobile application

495
00:26:03.304 --> 00:26:06.604
And consumers feel that
it is automatically working

496
00:26:06.604 --> 00:26:08.071
But it is not

497
00:26:09.925 --> 00:26:14.545
It is a Wizard of Oz type of MVP

498
00:26:14.545 --> 00:26:15.625
What do you think?

499
00:26:15.625 --> 00:26:16.625
Through this process,

500
00:26:16.625 --> 00:26:20.105
Lee Jun-no, CEO,
can save tons of money

501
00:26:21.105 --> 00:26:23.555
Also later,

502
00:26:23.555 --> 00:26:25.565
this process worked

503
00:26:26.265 --> 00:26:28.735
He proved that this process worked

504
00:26:28.985 --> 00:26:33.145
Then, he invested
a lot of money and effort

505
00:26:33.145 --> 00:26:37.344
to create fully automated services

506
00:26:38.385 --> 00:26:40.905
Again, everything was done by hand

507
00:26:41.905 --> 00:26:43.565
in the company

508
00:26:44.065 --> 00:26:45.565
Users believe that

509
00:26:45.565 --> 00:26:48.365
the entire estimate process is automated

510
00:26:48.365 --> 00:26:49.385
But it is not

511
00:26:50.335 --> 00:26:51.265
So, what do you think?

512
00:26:51.265 --> 00:26:55.705
This is the whole idea
about the Lean Startup Method

513
00:26:55.705 --> 00:26:59.265
Again, when you start your businesses,

514
00:26:59.265 --> 00:27:02.024
do not start the businesses full-scale

515
00:27:02.974 --> 00:27:06.304
Instead, you should validate
and you should test your idea

516
00:27:06.304 --> 00:27:09.664
before you do full-scale businesses

517
00:27:09.664 --> 00:27:14.914
This is what
Lean Startup Methodology gave us