demystifying lean startups

Download Demystifying Lean Startups

Post on 12-Sep-2014

6 views

Category:

Business

0 download

Embed Size (px)

DESCRIPTION

Lean Startup comes with its own new vocabulary, and quite often, we either misunderstand those new terms, or try to find a parallel from the old world. This presentation is more like a Lean Startup 101

TRANSCRIPT

  • Demys&fying Lean Startups

    Tathagat Varma

  • Discussion Points

    Challenges with tradi&onal startups and NPD

    The Lean Startup Model, Principles and Methods

    Does it work for New Product Development?

    Case Studies

  • Once upon a &me

  • Welcome to the Bold New World! AJer about a week of coding, Zuckerberg launched thefacebook.com last Wednesday aJernoon. The website combines elements of a standard House face book with extensive prole features that allow students to search for others in their courses, social organiza&ons and Houses. Everyones been talking a lot about a universal face book within Harvard, Zuckerberg said. I think its kind of silly that it would take the University a couple of years to get around to it. I can do it be-er than they can, and I can do it in a week. As of yesterday aJernoon, Zuckerberg said over 650 students had registered use thefacebook.com. He said that he an&cipated that 900 students would have joined the site by this morning. Im pre\y happy with the amount of people that have been to it so far, he said. The nature of the site is that each users experience improves if they can get their friends to join it.

    h\p://www.thecrimson.com/ar&cle/2004/2/9/hundreds-register-for-new-facebook-website/#

  • Ok, I have an ideaa BIG idea!!!

    How should I proceed?

  • I could do

    OR

    Dot-com-era style Stealth Mode

    Startup

    Cowboy style Just Do It Startup

  • h\p://datacatalyst.marsdd.com/accelerators-worth-the-hype/

  • h\p://www.emilianosoldipmp.info/wp-content/uploads/2012/08/Stacey.png

    Thats the problem we need to solve!

    And these are the methods we

    are using!!!

  • Lean Startup Model The Lean Startup provides a scien=c approach to

    crea&ng and managing startups and get a desired product to customers' hands faster. The Lean Startup method teaches how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum accelera&on. It is a principled approach to new product development.

    Lean Startup favors experimenta=on over elaborate planning, customer feedback over intui&on, and itera=ve design over tradi&onal big design up front development

  • Whats a Startup?

    A startup is a human ins.tu.on designed to create a new product or service under condi.ons of extreme uncertainty

    The products a startup builds are really experiments; the learning about how to build a sustainable business is the outcome of those experiments.

  • Lean Startup Principles

    Entrepreneurs are everywhere

    Entrepreneurship is management

    Validated Learning

    Build-Measure-Learn

    Innova&on Accoun&ng

  • Customer Development

  • GET OUT OF THE BUILDING

  • Minimize TOTAL =me through the

    loop

    Instead of making complex plans that are based on a lot of assump&ons, you can make constant adjustments with a steering wheel call the Build-Measure-Learn feedback loops. Through this process of steering, we can learn when and if its &me to make a sharp turn called a pivot or whether we should persevere along the current path

    The MVP is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least eort or development &me. The MVP lacks many features that may prove essen&al later on. MVP is not a minimal product!

  • A/B Tes&ng

    h\p://wp.streetwise.co/wp-content/uploads/2012/07/A-B-tes&ng.jpg

  • Validated Learning Validated learning about customers is the measure of progress in a Lean

    Startup not lines of working code or achieving product development milestones.

    Process in which one learns by trying out an ini&al idea and then measuring it to validate the eect. Each test of an idea is single itera&on in a larger process of many itera&ons whereby something is learnt and the lessons applied to the succeeding tests.[1]

    Typical steps in validated learning: Specify a goal Specify a metric that represents the goal Act to achieve the goal Analyze the metric - did you get closer to the goal? Improve and try again

  • Innova&on Accoun&ng Enables startups to prove objec&vely that they are learning

    how to grow a sustainable business Use an MVP to establish real data on where the company is

    right now Startups must a\empt to tune the engine from the baseline

    toward the ideal. This could take many a\empts. Pivot or persevere

    Ac&onable vs. Vanity Metrics For a report to be considered ac&onable, it must demonstrate

    clear cause and eect. Otherwise, it is a vanity metric. Ac&onable metrics can lead to informed business decisions and

    subsequent ac&on.[24][1] These are in contrast to 'vanity metrics' - measurements that give the rosiest picture possible but do not accurately reect the key drivers of a business.

  • Pivot

  • Kanban

  • Con&nuous Deployment

  • Products and Services that have beneted from Lean Startup

  • Conclusions

    Complex solu&ons need feedback-based adap&ve approach

    Managing a startup successfully requires early valida=ons on key hypotheses

    Lean Startup model oers an integrated approach to solve complex problems in an uncertain environment

  • References h\p://theleanstartup.com/#casestudies h\p://agbeat.com/entrepreneur/why-11-out-of-every-12-startups-fails/ h\p://techcrunch.com/2011/09/13/instagram-and-intuit-founders-discuss-lean-

    startups-pivots-and-what-makes-a-product-successful/ h\p://www.forbes.com/sites/hbsworkingknowledge/2013/02/25/lean-startup-

    strategy-not-just-for-startups/ h\p://steveblank.com/ h\p://www.startuplessonslearned.com/2009/04/validated-learning-about-

    customers.html h\p://www.startuplessonslearned.com/2008/09/lean-startup.html h\p://www.startuplessonslearned.com/2008/11/what-is-customer-

    development.html h\ps://en.wikipedia.org/wiki/Validated_learning h\p://www.ashmaurya.com/2010/04/3-rules-for-building-features-in-a-lean-

    startup/ h\p://www.ashmaurya.com/2011/06/your-product-is-not-the-product/ h\p://www.ashmaurya.com/2009/11/achievingproductmarkeuit/