Lean Startup- Key concept in 45 mins
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Lean Startup, key concepts. Presented at Design thinking & Lean Startup meetup. Paris Dec 2014
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Lean Startup- Key concept in 45 mins
- 2. Design thinking is a human-centered approach to innovation that draws from the designer's toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success. Tim Brown, CEO IDEO
- 5. Customer Development Lean Manufacturing Agile Software Development Lean Startup Sources
- 6. Customer Development Focus on customer from day 1 Validate demand before you build
- 7. Lean Manufacturing Reduce waste Continuous improvement
- 8. Agile Software Development Rapid Iteration Continuous deployment
- 9. 1997 2003 2011 20121988 2014
- 10. #FlashBack
- 11. Have an idea ☟ Write a business plan ☟ Raise money ☟ Build the product ☟ Launch ☟ Market it ☟ 90% chance to fail Traditional Startup Path
- 12. Projected growth
- 13. No business plan survives first contact with customers Steve Blank
- 15. A startup is a temporary organization formed to search for a repeatable and scalable business model Steve Blank
- 18. 1. Search 2. Validate 3. Grow 3 Stages of the startup Problem/Solution Fit Product/Market Fit Scale Customer Discovery Customer Validation Company building Build the right product and features that keeps users coming Find a cost effective way to grow your customer base Find a real and poorly addressed need Find how to solve it for customers willing to pay
- 20. Turn your hypotheses into facts Based on the outcome, pivot or persevere. Go back to step 1. Identify the riskiest hypothesis from your business model. Design and run an experiment that prove if hypothesis is either true or false. 1 2 3
- 21. To maximise chances of success Minimize total time through the loop
- 22. You are wasting if you are not learning
- 25. Minimum Viable Product An experiment that can validate or invalidate an hypothesis. Minimum effort for maximum learning from your customers. An MVP should not be perfect.
- 26. How to build an MVP
- 27. Discovery Interview Landing page Solution Interview Crowdfunding Concierge Wizard of Oz Low fidelity proto Video Stage Reach Prototype Examples of MVPs
- 28. If you are not embarrassed by the first version of your product, you’ve launched too late. Reid Hoffman
- 29. Measure #data
- 33. FOCUS Only Metric that Matters (OMTM) 1. Empathy 2. Stickiness / Retention / Engagement 3. Virality 4. Revenue 5. Scale / Distribution
- 34. Sticky Customers don’t leave Metrics: Churn & ARPU Viral Customers bring new customers Metrics: Viral rate Paid Customer acquisition via advertising Metrics: CAC < CLTV Growth Engines Strategy to allow your startup to grow
- 36. Pivot is a change of strategy Strategy Optimisation Pivot Vision Strategy Product
- 39. #LeanCanvas
- 40. Customer & Problem Hypothesis ? ?
- 41. Target a micro-segment, the innovators The first, second and third customer Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957
- 42. Source: the diffusion process, by Joe M. Bohlen, George M. Beal and Everett M. Rogers, 1957 Target a micro-segment, the innovators The first, second and third customer
- 44. It is not: ● Survey ● Questionnaire ● Focus group ● Market Study ● Your personal experience ● Conversation with friends Customer Discovery
- 45. what people actually do what people think they will do what people say they will do Franck Debane @fdebane
- 46. GET OUT OF THE BUILDING
- 48. Understand problem importance / frequency Discover: ➢ alternative solution to solve the problem ➢ get an idea of how much the problem cost ➢ how the customer look for solution to their problem ➢ the biggest pain point about the problem ➢ the root causes of the problem ➢ key insights to design a solution Problem Interview: Goals
- 49. evaluate the problem importance has the problem aware of having the problem looking for a solution hacked a solution pay for a solution how often the problem occurs
- 50. ➢ Do not talk about your idea ➢ Listen, don’t talk. Be nosy. Drill down. ➢ Be ready to learn and not to sell. ➢ Ask about the past events ➢ Be specific and avoid general questions ➢ Learn, be curious. Keep asking why ➢ Keep your questions unbiased ➢ Repeat what you understand and get confirmation or correction ➢ Go in pairs. Take notes. ➢ Interview one person at the time. How to: problem interviews
- 52. Get a proof of commitment Something of value from the customer - more than words The stronger the commitment, the better the proof Confirm & Sell
- 53. ● Money (pre-order) ● A check ● A signed agreement (with blood?) ● Invitation to another meeting ● An email, phone number ● Access to their sensitive data ● Access to friends list ● Something that has value, etc... You can be creative in what you ask for, as long as it’s something that has value to your customer. Things you can accept as payments
- 54. ...to sum up...
- 55. Problem: WHAT Solution: HOW Waterfall Agile Lean Startup known unknown unknown known
- 56. To maximise chances of success: Minimize TOTAL time through the loop Hypothese Customer behaviours MVP Validate or invalidate
- 58. Reactivity, adaptability & flexibility -vs- perfect planification
- 60. Lean Startup & Design Thinking Similarités & Différences ?
- 62. Thank you!
- 66. Beware of the process!