Lean Startup Methodology
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A brief overview of the Lean Startup Methodology
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Lean Startup Methodology
- 1. Lean Startup Methodology Fardeen Rahaman (Lean Startup Circle Dubai)
- 2. Lean Startup Principles Entrepreneurs are everywhere Entrepreneurship is management Validated learning Build – Measure – Learn Innovation accounting
- 3. Pioneers Eric Ries (Lean Startup) Steve Blank (Customer Development)
- 5. What Is A Startup? • A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty • Nothing to do with size of company, sector of the economy, or industry
- 6. What Is A Startup? STARTUP = EXPERIMENT
- 9. Entrepreneurship is management • Goal is create an institution, not just a product • Traditional management practices fail • Need practices & principles geared to the startup context of extreme uncertainty
- 10. Achieving Failure • If we are building something nobody wants, what does it matter if we accomplish it: • On Time? • On Budget? • With High Quality? • With Beautiful Design? • Achieving Failure = Successfully Executing A Bad Plan
- 11. The Lean Revolution “The customer is the most important part of the production line.” - Deming W. Edwards Deming (1900 – 1993) Taiichi Ohno (1912 – 1990)
- 12. Customer Development Steve Blank (Still Alive) Validated Learning Execution
- 13. Lean Startup Steps Minimize TOTAL time through the loop
- 14. The Pivot • Change directions but stay grounded in what we’ve learned • Reduce the time between pivots • Increase the odds of success • Do it before you run out of money
- 15. The Startup Way
- 16. Lean Startup Myths Myth #1 Lean means cheap. Lean startups try to spend as little money as possible. Truth The Lean Startup method is not about cost. It is about speed.
- 17. Lean Startup Myths Myth #2 The Lean Startup is only for Web 2.0/Internet/Consumer software companies. Truth The Lean Startup applies to all companies that face uncertainty about what customers will want.
- 18. Lean Startup Myths Myth #3 Lean Startups are small bootstrapped startups. Truth Lean Startups are ambitious and are able to deploy large amounts of capital.
- 19. Lean Startup Myths Myth #4 Lean Startups replace vision with data or customer feedback. Truth Lean Startups are driven by a compelling vision and are rigorous about testing each element of this vision.
- 20. Minimum Viable Product • The minimum set of features needed to learn from earlyvangelists • Earlyvangelists – visionary early adopters • Avoid building products that nobody wants • Maximize the learning per amount of money spent • Probably much more minimum than you think
- 21. Minimum Viable Product • Visionary customers can “fill in the gaps” on missing features, if the product solves a real problem • Allows us to achieve a big vision in small increments without going in circles • Requires a commitment to iteration
- 22. Fears • False negative: customers would have liked the full product, but the MVP sucks, so we abandoned the vision • Visionary complex: but customers don’t know what they want • Too busy to learn: it would be faster to just build it right, all this measuring distracts from delighting customers
- 23. The AAAs of Metrics • Actionable • Accessible • Auditable
- 24. Innovation Accounting 1. Establish the baseline • Build a minimum viable product (MVP) • Measure how customers behave right now 1. Tune the engine • Experiment to see if we can improve metrics from the baseline towards the ideal 1. Pivot or Persevere • When experiments reach diminishing returns, it’s time to pivot
- 25. Five Whys • A technique for continuous improvement of company process • Ask “why” five times when something unexpected happens • Behind every supposed technical problem is usually a human problem • Fix the cause, not just the symptom
- 26. Further Reading
Notas do Editor
- A new movement that is transforming the way how new products are built and launched
- Entrepreneur is commonly used to describe an individual who organizes and operates a business, taking on financial risk to do so. Intrapreneur - A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product by taking assertive risks and using innovation. What do entrepreneurs do that actually makes a difference? Which customers to listen to Which product/service features to prioritize How to hold people accountable (measure)?
- SB – Silicon Valley serial entrepreneur and academician. He is recognized for developing the Customer development methodology which launched the Lean Startup movement. ER - Silicon Valley entrepreneur and author recognized for pioneering the lean startup movement, also a well known blogger within the technology entrepreneur community.
- the term startup has been associated mostly with technological ventures designed for high-growth (fast) Operating under fundamental of extreme uncertainty: Who is your customer What product/service do they actually want How to build it into a sustainable business
- As entrepreneur you have embarked on a different career. Forget what background you are from Test a hypothesis
- Help us to stop waste people’s time
- Why? We build things very efficiently that nobody wants. 2006-2009 failures Which companies succeeding in living up to the dreams, time, talent & energy of the founders, employees & investors
- Unfortunately deceased men Deming – Everything we do should be gauged by whether the customer cares that we do it
- Iterative process of trying to find out who your customer is
- Movies are ridiculous
- People taking credit when times are good People blaming when times are bad Cause and effect Make reports accessible and user friendly to understand Gain insights to understand why customers behave in a certain manner
- Training our judgment to get better over time