How to create a Lean Startup?

LEAN STARTUP

LAST MILE for BoPDistribution of life-changing products for the

poor

Arnaud Blanchet

70%

of South African startups fail in their 1st year1.

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LEAN STARTUP

Lean startup[leen] [stahrt-uhp]noun

1. Continuous innovation process to successfully create new products in conditions of extreme uncertainty

2. Scientific process to make entrepreneurial decision

3. Method to “fail fast, succeed faster” 2

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Inspired by Lean Manufacturing (Toyotism) replacing the production of high quality goods by

Validated LearningEssential unit of progress for a startup

Backed by empirical data collected from real customers

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Validated Learning is obtained through experiments

If you cannot fail, you cannot learn

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Feedback loop

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MVP Outside the building Early adopters Wizard of Oz testing Innovation accounting Pivot Cohort analysis Engine of growth

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The

JAVELIN BOARD is the perfect tool to use when applying the Lean Startup Methodology to your project

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BRAINSTO

RM EXECUT

E

Break down your idea into

Hypothesis- Customer

- Problem

- Solution

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LEAN STARTUP

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customercustomer customercustomercustomer

ProblemProblem Problem ProblemProblem

AssumptionAssumption Assumption AssumptionAssumption

Prepare an Experiment- Interview

- Presell

- Concierge

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customercustomer customercustomercustomer

ProblemProblem Problem ProblemProblem

Assumption AssumptionAssumption AssumptionAssumption

Success

Criteria

ResultDecision

Learning

Pivot or Persevere

A pivot is a structured course correction designed to test a new fundamental hypothesis about the project.

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Zoom-in Zoom-out Customer segment Customer need Platform Business Architecture Value capture Engine of growth Channel …

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customercustomer customercustomercustomer

ProblemProblem Problem ProblemProblem

Assumption AssumptionAssumption AssumptionAssumption

Success

Criteria

FailurePIVOT

Learning

customer

Success

Criteria

Success

Learning

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LEAN STARTUP

customercustomer customercustomercustomer

ProblemProblem Problem ProblemProblem

Assumption AssumptionAssumption AssumptionAssumption

Success

Criteria

FailurePIVOT

Learning

customer

Success

Criteria

Success

Learning

Problem

Assumption

customer

SolutionSolutionSolutionSolutionSolution

customer

Problem

Assumption

SuccessCriteria

Minimum Viable Productis the fastest way to get through the build-measure-learn feedback loop with the minimum amount of effort.

Remove any feature, process or effort that does not contribute directly to the learning you seek.

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“If you are not

embarrassed by the first

version of your product, you've launched too late.”

Reid Hoffman (co-founder, LinkedIn)

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customercustomer customercustomercustomer

ProblemProblem Problem ProblemProblem

Assumption AssumptionAssumption AssumptionAssumption

Success

Criteria

FailurePIVOT

Learning

customer

Success

Criteria

Success

Learning

Problem

Assumption

customer

Solution SolutionSolutionSolutionSolution

customer

Problem

Assumption

SuccessCriteria

Failure

PIVOT

Learning

STARTAGAIN

The 3 things to remember:

1. Focus on a problem/customer hypothesis not on a solution

2. Don’t make assumptions, get outside of the building to make experiments and get validated learning

3. Use a Javelin Board

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Reference:

1. Ventureburn article (http://bit.ly/1pMp7GY) – Speech of SA Small Business Minister, Lindiwe Zulu, for the launch of Startup Nations South Africa – 11/10/142. “Fail Fast, Succeed Faster”, Lean Startup Machine (http://www.leanstartupmachine.com)

Books about Lean Startup: Eric Ries, The Lean StartupBuy it on Amazon: http://amzn.to/1eY2uVFBuy it on Kalahari: http://bit.ly/1bWpNnbOr just read a free summary of the book... http://bit.ly/1cQ6NAuRead more about it and fi nd more info about the Lean Startup Movement on  theleanstartup.com Ash Maurya, Running LeanBuy it on Amazon: http://amzn.to/1CHGgS5Buy it on Kalahari: http://bit.ly/19UEeX6Or just read a free summary of the book... http:// l inkd.in/1y78lGLRead more about it and fi nd more interesting info on Spark59.com, a website that help you go through the 58 product iterations it takes, according to Ash Maurya, before you deliver a successful new product. Videos about Lean Startup: Systematically Test Your Business Model Through Experiments by Ash Maurya: http://bit.ly/1fNcWizExperiment Board Tutorial with Grace Ng: http://bit.ly/RRnBTPWhat is a pivot? A FastCompany video: http://bit.ly/1C3M6gW Tools about Lean Startup:

Download a Javelin/Experiment board here: http://bit.ly/1gLgAsM

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THANK YOU& GOOD LUCK

LAST MILE for BoPDistribution of life-changing products for the

poor

Arnaud Blanchet