This document introduces the principles of Lean Startup, which are built around testing hypotheses about customers' needs through minimal viable products ("MVPs") and iterative design. It outlines three core Lean Startup principles: 1) "Do As Little As Possible" (DALAP) to test ideas quickly and cheaply; 2) "Get Out of the Building" (GOOTB) to get customer feedback; and 3) "I'll Know It When I See It" (IKIWISI) to objectively determine what customers want through empirical testing rather than assumptions. The document then illustrates these principles through the example of a startup called "GreenEase" that iteratively tested assumptions about providing locavore restaurant information
3. What does ‘do’ mean?
• Sit around the table and design it…
• Develop code… (or in manufacturing build it…)
• Move it to production…
And then…
No one comes…
9. DALAP
“Do As Little As Possible”
GOOTO
“Get Out of the Office*”
IKIWISISee It”
“I’ll Know It When I
*the real term in Lean Startup is
GOOTB = Get Out of the Building”
10. DALAP
“Do As Little As Possible”
reduce
Almost every initial idea
of what a customer wants
is WRONG!!
idea
need
customer
= Hypothesis
any & all may be wrong
11. idea
need
customer
= Hypothesis
assume it is wrong
GOOTO
“Get Out of the Office*”
We aren’t going
to figure out
if our idea
will work here
We must test our assumptions
12. Create something
to confirm
the hypothesis
Go from
simple
to
IKIWISISee It”
“I’ll Know It When I
harder
Objective
is to
Learn
24. GreanEase Team
Nov 2012 Lean Start-up Machine
• Original Concept:
– App to provide moderate ‘greenies’ with information
about the restaurant food they were buying as they
are not able to easily find this info; to be paid for by
the restaurant owners
• Biggest Assumption: is this a valid need?
• 1st “build”: Structured Interview
–
–
–
–
Questions to ID customer segment
Closed questions to see if this need was valid
Open-ended questions to understand other items
Executed at Whole Foods, Pleasant Pops Market, and
a ‘green’ grocer
25. GreenEase Validation Board
P1
P2
P3
P4
P5
Customer
Moderate
Greenie
Need
Restauran
t
Food Info
Solution
Phone
App
Assumptions
Anything out
there yet?
Food info
available?
Will restaurant
owners pay?
Riskiest Assumption
Is this a valid
need?
Experiment
Structured
Interview
Result
Moderate Greenies
Didn’t Drive
Decisions on This!
Invalidated
Moderate
Greenie
Validated
26. GreanEase Team
Nov 2012 Lean Start-up Machine
• Pivot 1:
– App to provide Locavores with information about how
local restaurant food is as they are not able to easily
find this info; to be paid for by the restaurant owners
(though the experiment will test our other customer segment
assumption)
• Next Biggest Assumption: will restaurant owners
pay?
• 2nd “build”: Structured Interview
– Closed questions to see if this need was valid
– Open-ended questions to understand other items
– Executed at Ris, Founding Farmers, & two other
restaurants known for locally sourcing their food
27. GreenEase Validation Board
P2
P1
P3
P4
P5
Customer
Moderate Restauran
Greenie t Owner
Need
Need to
Restauran
t
Food Info
Solution
Phone
App
Market
Concern
Phone
App
Assumptions
Anything out
there yet?
Food info
available?
Are Locavores
interested?
Invalidated
Will restaurant
Restaurant
owners pay?
Owners
Riskiest Assumption
Experiment
Structured
Interview
Result
Restaurant owners are
getting enough business
w/word of mouth
Need to
Market
Concern
Validated
28. GreanEase Team
Nov 2012 Lean Start-up Machine
• Pivot 2:
– App to provide Locavores with information about
how local restaurant food is as they are not able
to easily find this info; they will purchase this app
• Next Biggest Assumption: are they interested?
• 3rd “build”: Structured Interview
– Questions to ID customer segment
– Closed questions to see if this need was valid
– iPad Landing Page w/proposed $1.99 price tag
– Executed at local Farmer’s Markets & then online
29.
30. GreanEase Team
Nov 2012 Lean Start-up Machine
To arrive at this design:
• Created mock-up of phone app design
• Logo
– Used Hired A|B Testing Group
• Landing Page
31. GreenEase Validation Board
P2
P1
P3
P4
P5
Customer
Moderate Restauran Locavores
Greenie t Owner
Need
Need to
Restauran
t
Food Info
Solution
Phone
App
Market
Concern
Restauran
t
Food Info
Phone
App
Phone
App
Assumptions
Anything out
there yet?
Food info
available?
Riskiest Assumption
Are Locavores
interested?
Pay?
Experiment
Structured
Interview
Result
Interested &
Will Pay $1.99!
Invalidated
Validated
Locavores
Restauran
t
Food Info
Phone
App
32. GreanEase Team
Nov 2012 Lean Start-up Machine
• Still on Pivot 2:
– App to provide Locavores with information about how
local restaurant food is as they are not able to easily
find this info; they will purchase this app
• Next Biggest Assumption: anything out there yet?
• 4th “build”: Internet Competitor Research
– Searched for locavore restaurant apps
– Looked for both successes & failures
33. GreenEase Validation Board
P2
P1
P3
P4
P5
Customer
Moderate Restauran Locavores
Greenie t Owner
Need
Need to
Restauran
t
Food Info
Solution
Phone
App
Market
Concern
Restauran
t
Food Info
Phone
App
Phone
App
Assumptions
Food info
available?
Riskiest Assumption
Are Locavores
interested?
Pay?
Experiment
Structured
Interview
Result
1-2 others, 1-2 failures, but
revenue stream was not
well-defined for them
Invalidated
Validated
Locavores
Restauran
t
Food Info
Phone App
Interest & Little
Competition
35. Possible Steps Forward
• Find how to source info
– Will users provide?
– Sources?
• Refine Mock UI from static to dynamic
– Is it usable?
– Is the info presented meaningful?
– Any info missing that users want?
39. Hot House Process
Good for ideas controlled internally
Cross-Functional
Executive Review
Hot House
accredited to
Shardul Mehta
40. Board Review Process
Good for products needing market input
Time Varies
Cross-Functional
Executive Review
Time Varies
Cross-Functional
Executive Review