The Four Steps to the Epiphany

Figure 1.1  The Product Development Diagram 

To see what’s wrong with using the product development model as a guide to building a startup, 

let’s first look at how the model is currently used to launch a new product. We’ll view the actions at 

each step in two ways: in general practice and in the specific example of Webvan, which managed to 

burn through $800 million in 3 years. Then we will dissect the model’s toxic consequences for 

startups. 

What’s wrong with the old model in general, and how were those wrongs compounded in the 

billion-dollar Webvan implosion?  Lets look at the model stage-by-stage.