2010 08 19 The Lean Startup TechAviv
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Presentation by Eric Ries for TechAviv at the Stanford GSB August 19, 2010
![What is a startup? ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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2010 08 19 The Lean Startup TechAviv
- 1. The Lean Startup#leanstartup Eric Ries (@ericries) http://StartupLessonsLearned.com
- 8. We can do better.
- 12. I’
- 14. They started out as digital cash for PDAs, but evolved into online payments for eBay.
- 15. They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly.
- 16. They were shocked to discover their online games company was actually a photo-sharing site.
- 18. A Tale of Two Startups
- 19. Startup 1
- 20. Stealth Startup Circa 2001
- 21. All about the team
- 23. Raise plenty of capital.
- 24. Hire the absolute best and the brightest.
- 25. Hire an experienced management team with tons of startup experience.
- 27. Build a world-class technology platform.
- 30. Raise plenty of capital.
- 31. Hire the absolute best and the brightest.
- 32. Hire an experienced management team with tons of startup experience.
- 34. Build a world-class technology platform.
- 36. IMVU
- 37. IMVU
- 39. Charged from day one
- 40. Shipped multiple times a day (by 2008, on average 50 times a day)
- 41. No PR, no launch
- 43. In traditional business, value is created by delivering products or services to customers
- 45. Agile Product DevelopmentUnit of Progress: A line of Working Code “Product Owner” or in-house customer Problem: known Solution:unknown
- 46. Lean StartupUnit of Progress: Validated Learning About Customers ($$$) Customer Development Hypotheses, Experiments, Insights Problem:unknown Data, Feedback, Insights Solution:unknown Agile Development
- 47. Minimize TOTAL time through the loop
- 48. There’s much more… Build Faster Unit Tests Usability Tests Continuous Integration Incremental Deployment Free & Open-Source Components Cloud Computing Cluster Immune System Just-in-time Scalability Refactoring Developer Sandbox Minimum Viable Product Learn Faster Split Tests Customer Interviews Customer Development Five Whys Root Cause Analysis Customer Advisory Board Falsifiable Hypotheses Product Owner Accountability Customer Archetypes Cross-functional Teams Semi-autonomous Teams Smoke Tests Measure Faster Funnel Analysis Cohort Analysis Net Promoter Score Search Engine Marketing Real-Time Alerting Predictive Monitoring Measure Faster Split Tests Clear Product Owner Continuous Deployment Usability Tests Real-time Monitoring Customer Liaison
- 50. Myth #1 Myth 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.
- 51. Myth #2 Myth 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.
- 52. Myth #3 Myth Lean Startups are small bootstrapped startups. Truth Lean Startups are ambitious and are able to deploy large amounts of capital.
- 53. Myth #4 Myth Lean Startups replace vision with dataor customer feedback. Truth Lean Startups are driven by a compelling vision, and are rigorous about testing each element of this vision
- 57. Getting in touch (#leanstartup)
- 61. Lean Startup Wiki http://leanstartup.pbworks.com
- 64. Five why’s
- 68. Get lots of them signed up
- 69. Make a lot of money
- 70. Realize a big vision; change the world
- 72. build a great product with enough features that increase the odds that customers will want it
- 73. Problem: no feedback until the end, might be too late to adjust
- 74. “Release early, release often”
- 75. Get as much feedback as possible, as soon as possible
- 77. Avoid building products that nobody wants
- 78. Maximize the learning per dollar spent
- 80. Allows us to achieve a big vision in small increments without going in circles
- 81. Requires a commitment to iteration
- 83. SEM on five dollars a day
- 85. Paper prototypes
- 88. Visionary complex: “but customers don’t know what they want!”
- 91. Ask “why” five times when something unexpected happens.
- 92. Make proportional investments in prevention at all five levels of the hierarchy.
- 95. Has to be simple enough for everyone to use and understand it
- 96. Make creating a split-test no more than one line of code:if( setup_experiment(...) == "control" ) { // do it the old way } else { // do it the new way }
- 98. Accessible
- 102. At IMVU time from check-in to production = 20 minutes
- 103. Tell a good change from a bad change (quickly)
- 104. Revert a bad change quickly
- 105. And “shut down the line”
- 106. Work in small batches
- 107. At IMVU, a large batch = 3 days worth of work
- 109. Everyone has a complete sandbox
- 110. Continuous Integration Server (BuildBot)
- 111. All tests must pass or “shut down the line”
- 112. Automatic feedback if the team is going too fast
- 113. Incremental deploy
- 114. Monitor cluster and business metrics in real-time
- 115. Reject changes that move metrics out-of-bounds
- 116. Alerting & Predictive monitoring (Nagios)
- 117. Monitor all metrics that stakeholders care about
- 118. If any metric goes out-of-bounds, wake somebody up
- 119. Use historical trends to predict acceptable bounds
- 120. When customers see a failure
- 121. Fix the problem for customers
- 125. Getting in touch (#leanstartup)
- 128. Additional resources
- 129. Lean Startup Wiki http://leanstartup.pbworks.com
- 130. Lean Startup Circle http://leanstartupcircle.com
Notas do Editor
- I’m not leaving you, I’m pivoting to another man
- Truth: The Lean Startup method is not about cost, it is about speed. Lean Startups waste less money, because they use a disciplined approach to testing new products and ideas. Lean, when used in the context of lean startup, refers to a process of building companies and products using lean manufacturing principles applied to innovation. That process involves rapid hypothesis testing, validated learning about customers, and a disciplined approach to product development.
- Truth: The Lean Startup methodology applies to all companies that face uncertainty about what customers will want. This is true regardless of industry or even scale of company: many large companies depend on their ability to create disruptive innovation. Those general managers are entrepreneurs, too. And they can benefit from the speed and discipline of starting with a minimum viable product and then learning and iterating continuously.
- Truth: There’s nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. What differentiates them is their disciplined approach to determining when to spend money: after the fundamental elements of the business model have been empirically validated. Because lean startups focus on validating their riskiest assumptions first, they sometimes charge money for their product from day one – but not always.
- Truth: Lean Startups are driven by a compelling vision, and they are rigorous about testing each element of this vision against reality. They use customer development, split-testing, and actionable analytics as vehicles for learning about how to make their vision successful. But they do not blindly do what customers tell them, nor do they mechanically attempt to optimize numbers. Along the way, they pivot away from the elements of the vision that are delusional and double-down on the elements that show promise.