Lean Startup for Non-Startups

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Presentation for the first Product Tank meetup in Amsterdam on June 12, 2012 at Hyves. Shares some insights and lessons learned from using Lean Startup for the past two years within the context of a larger organization (aka, 'intrapreneuring')

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<ul><li> 1. Lean Startup For Non-Startups Taco Ekkel / @tacoe /Product Tank Ams / June 12, 2012Sharing experiences using lean startup to build new products in large organizations. </li> <li> 2. New Products Unfamiliar, new markets particularity B2B/B2C switches Potential (cannibalization) risk Often strategicLets dene new product for our purposes </li> <li> 3. Large OrganizationsLarge Organizations are executing on a known business model, and therefore:- hyperspecialize- have rigid train tracks (the channels they supply too and their demands)Hard to make innovative new products from that position. </li> <li> 4. Innovators SolutionThis is a known problem (innovators dilemma) with a known solution. (Clayton Christensen, 90s) </li> <li> 5. 90% Of New ProductsBut this still happens. Cause: building the wrong product (NOT building the product wrong, as the world seemed to have thoughtuntil recently) </li> <li> 6. Customer DevelopmentSolution: Stop focusing on building the product. Steven Blank introduced customer development (as opposed to product development)Go fast and keep burn rate low as you search for the right product/market t (left part), and only after validation, you scale (right part). </li> <li> 7. Lean Startup Agile + Lean UX = Open SourceCustomer Development (Steven Blank, 4 steps) is the most important ingredient of Lean Startup. The other bits make it workbetter in practice. </li> <li> 8. a startup is an organization formed to search for a repeatable and scalable business modelWhat doesnt this say?- It doesnt say must eat noodles and sleep under desk at all times- It also doesnt say all startups must disrupt(- it doesnt say the end result is a product) </li> <li> 9. BM Canvas for a service Im working on (simplied). This canvas is from http://www.businessmodelgeneration.com/. </li> <li> 10. For those of you that think building an iTunes for academic articles and authoritative content is boring: </li> <li> 11. - We did lots of research. Starting with early adopters which for us are the info geeks. Cycles of picking up the phone(qualitative) to Forrester research (2,5M US online consumer panel). Not going into that, youve all done research before.This was one of the many iterations -- in this case we were hoping to get signals by seeing where people read/clicked in a longpage with tons of info. Didnt work. </li> <li> 12. Udini combines an article store and reader/organizer/annotation and although people love annotating, we had to simplify toget to step one: understanding of the service </li> <li> 13. Final MVP did it. Note how much simpler this one is, embodying the essence of the service. This is a recurring theme in leanstartup in practice, and I suspect, one of the drivers for its succes. (See also: Simple Stick; Ken Segall). We pivoted twice - onceto go from peanut butter and chocolate to article-store-rst; once to go from implicit access purchase to a Spotify model ofstream or buy. </li> <li> 14. Final MVP did it. Note how much simpler this one is, embodying the essence of the service. This is a recurring theme in leanstartup in practice, and I suspect, one of the drivers for its succes. (See also: Simple Stick; Ken Segall). We pivoted twice - onceto go from peanut butter and chocolate to article-store-rst; once to go from implicit access purchase to a Spotify model ofstream or buy. </li> <li> 15. Recognize SuccessLooking honestly at basic numbers is a often good rst indication... which one says traction? </li> <li> 16. Recognize SuccessLooking honestly at basic numbers is a often good rst indication... which one says traction? Vanity metrics Meaningful success metrics Raw pageviews Repeat use Total Signups Conversion AARRR Funnel </li> <li> 17. AARRR aka the pirate funnel </li> <li> 18. Speaking of metrics, having a realtime dashboard has proven useful. It makes the service (and its users) come alive from day one.Were using Geckoboard.com here. </li> <li> 19. Perceptions Of Risk Large Organization Lean Startup Angry internal stakeholders Not having customers Major bug on production Not nding a viable business model Having to cut features Looking at the wrong numbers Shipping late Not learning (fast enough)Another thing learned: different missions create different perceptions of risk.Be very aware of this as you engage corporate stakeholders, and bring the underlying risk perceptions into the discussion,otherwise youll end up optimizing for the wrong risks. </li> <li> 20. Traditional UX Lean UXLean UX is known for oneliners as get rid of deliverables.In practice its not so straight-forward: - how to communicate design if no deliverables? - how to maintain vision/direction over peacemeal change? - how do completely redo your tooling and to what? etcFor those interested, Ill be researching this and presenting learnings at TWAB12 </li> <li> 21. Out-Zappos Zappos(Zappos background. Tony Hsieh. Call time.)This is easy as long as youre small, so why not do it. Make a point of having un-efficient support. (Anecdote: homedelivery) </li> <li> 22. This is from our wiki. We make notes of all the 5 why sessions.Important in starting this is getting the starting question right: what happened should be very plain factualdescription of the problem. </li> <li> 23. Continuous DeploymentIf Theres Less In A Release, Less Can Go WrongTo start: make sure you can sanity check a deploy fast, that you have UI-level tests in place, that you can build and deployarbitrary branches with one click, that you can rollback within minutes.Doing CD well means anyone can pull the trigger (this is our QA guy talking to our bot) </li> <li> 24. Continuous DeploymentIf Theres Less In A Release, Less Can Go WrongTo start: make sure you can sanity check a deploy fast, that you have UI-level tests in place, that you can build and deployarbitrary branches with one click, that you can rollback within minutes.Doing CD well means anyone can pull the trigger (this is our QA guy talking to our bot) </li> <li> 25. Continuous DeploymentIf Theres Less In A Release, Less Can Go WrongTo start: make sure you can sanity check a deploy fast, that you have UI-level tests in place, that you can build and deployarbitrary branches with one click, that you can rollback within minutes.Doing CD well means anyone can pull the trigger (this is our QA guy talking to our bot) </li> <li> 26. Lean Startup + Large Companies Same rules as for startups (intrapreneur = entrepreneur) Commit to learning / validation goals, not to launch / revenue schedules Embrace failing (= learning) over risk-averse planning Uncertainty and continuous change as the constant Small iterations over big plans Agile over Agifall, individuals/freelancers over contracting companies Work with freelancers Secure corporate support to learn (patience, funding) Have bridge people: evangelists &amp; gatekeepers at the same time#1- same rules, but highlighting the ones that you need to make sure corporate inuence doesnt take hold#2- freelancing people are unafforable to bootstrapping startups but for corporate-sponsored its different. Theyre often greatcommunicators, committed, and A class devs/designers/etc (because they run their own business). Theyre also exible(necessary when you are in lean searching mode)#3- meaning, ensure the CEO is really committed.#4- The best way to have a committed corporate sponsor is to be super transparent and teach her/him all the cool things youredoing (make sure you have your analytics in top shape so you know all the details). At the same time, you have a gatekeeper </li> <li> 27. Lean StartupFor Non-Startups Taco Ekkel / @tacoe /Product Tank Ams / June 12, 2012 </li> </ul>