lean analytics by alistair croll, author, lean analytics
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TRANSCRIPT
SMALL BATCHES
Why cycle time trumps scale,
why everything is changing,
and why now.
Why does Lean matter to clouds?
Don’t sell what you can make. Make what you can sell.
Kevin Costner is a lousy entrepreneur.
Why now?
Why now?
Why now?
Small batches.
3D printing
Cloud computing & shared services.
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Crowdfunding
Small batches matter.
Eating the world
http://www.flickr.com/photos/ebolasmallpox/3733059220/
Software has no choicebut to record its actions.
http://www.flickr.com/photos/jenny-pics/3239638494/sizes/l/
A closed loopof continuous improvement
http://www.flickr.com/photos/spacepleb/1779158639/
“... a closed signaling loop ... where action generates some change that triggers a system
change, originally referred to as a ‘circular causal’ relationship.”
A business that learns.
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Unfortunately,we’re terrible at learning.
Everyone’s idea is the best, right?
People love this part!
Things fall apart.
No data, no learning.
Bad at data, too.
I have two kids.At least one is a girl.
What are the chancesthe other is a boy?
BB GB
BG GG
GBBG GG
2 of 3 (66%) are boys.
Bartender: “Is your childa boy or a girl?”
Logician: “Yes.”
The
five
sta
ges
EMPATHYI’ve found a real, poorly-met need that a reachable market faces.
STICKINESSI’ve figured out how to solve the problem in a way they will keep using and pay for.
VIRALITYI’ve found ways to get them to tell their friends, either intrinsically or through incentives.
REVENUEThe users and features fuel growth organically and artificially.
SCALEI’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.
Better: bit.ly/BigLeanTable
The biggest lesson: pickOne Metric That Matters
Really? Just one?
Yes, one.
Focus is aprecious commodity.
Having one metricaddresses this problem.
www.theeastsiderla.com/2011/02/silver-lake-sidewalk-pile-up/
The other lesson.
If it doesn’t changehow you behave, it’s a
badmetric.
2008 20120
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Times a day a song in “heavy rotation” is played
EVERY 4H EVERY 55m
Nobody needs this more than big companies.
Companies that use data-driven analytics instead of intuition have 5%-6% higher productivity and profits than competitors.
2011 MIT study of 179 large publicly traded firms
Brynjolfsson, Erik, Lorin Hitt, and Heekyung Kim. "Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?." Available at SSRN 1819486 (2011).
Everything we are talking about this week is about the shift from scale to cycle time.
As a result of technology that makes the first unit as good
as the millionth.
Removing barriers to entry and many of our fundamental
business assumptions.
THE DATA-DRIVEN ORGANIZATION
ORGANISM
Dev-Ops
LeanStartup
AgileBig
DataCloud
Computing
Cycle time trumps scale.
@acroll
leananalyticsbook.com
Also: Please go takebit.ly/cloudopssurvey