Summary: There are lots of reasons why products fail, but the number one reason remains the fact that we simply build something nobody wants. Learning Objectives: "Are we building the right thing? Our end-users can tell if we are building the “right” thing. But sometimes they do not know either. We are dealing with “know unknowns” and “unknown unknowns”.

2. Frederik Vannieuwenhuyse
The question today isn’t:
"Can we build this?”
but, "Should we build this?"

3. @vfrederik
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?
Outline

4. @vfrederikOutline
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?

5. @vfrederikExample (1/3)

6. @vfrederikExample (2/3)
Iridium (satellite phones)
1987 - 1998
https://steveblank.com/2010/11/01/no-business-plan-survives-first-contact-with-a-customer-–-the-5-2-billion-dollar-mistake/

7. @vfrederikExample (3/3)
http://www.recode.net/2016/3/4/11586696/meerkat-is-ditching-the-livestream-and-chasing-a-video-social-network
http://memeburn.com/2016/10/meerkat-houseparty-app/
Meerkat
mid 2015 - sept 2016

8. 93 of the Biggest,
Costliest Startup
Failures of All Time
https://www.cbinsights.com/blog/biggest-startup-failures/

9. @vfrederikThe BOOTSTART Manifesto
https://blog.leanstack.com/the-bootstart-manifesto-65b41da6216

10. @vfrederikThe BOOTSTART Manifesto
https://blog.leanstack.com/the-bootstart-manifesto-65b41da6216

11. @vfrederikThe BOOTSTART Manifesto
https://blog.leanstack.com/the-bootstart-manifesto-65b41da6216

12. @vfrederikThe BOOTSTART Manifesto
https://blog.leanstack.com/the-bootstart-manifesto-65b41da6216

13. @vfrederik
http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/
Top reasons startups fail

14. @vfrederik
http://fortune.com/2014/09/25/why-startups-fail-according-to-their-founders/
Top reasons startups fail
No Market Need 42%

15. @vfrederik
“Get to your customers as fast as possible &
learn from them to build your product.”
“We built the website first and asked our
customers about it later.”
- Robin Chase, Co-Founder of Zipcar
http://www.businessinsider.com/startup-failures-learning-2013-9

16. @vfrederik
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?
Outline

17. @vfrederikScrum: The Product Owner

18. @vfrederikScrum: The Product Owner

19. @vfrederikScrum: Building the right product
“Value can be measured with velocity.”
- Anonymous

20. @vfrederikScrum: Building the right product
“Value can be measured with velocity.”
WRONG!
- Anonymous

21. @vfrederik
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?
Outline

23. @vfrederik1. Entrepreneurs are everywhere

24. @vfrederik2. Entrepreneurship is management

25. @vfrederik3. Validated learning

26. @vfrederik4. Innovation accounting

27. @vfrederik5. Build - Measure - Learn
Build
Measure
Learn

28. @vfrederikPlan - Do - Check - Act
Plan
Do
Check
Act

29. @vfrederikPlan - Do - Check - Act
http://docs.ilean.be/Sessions/20141127_XPDays2014/20141127_XPDays2014_MultiLevelFeedbackCycles.pdf

30. @vfrederik
“We must learn what customers really want,
not what they say they want or
what we think they should want.”
- Eric Ries, The Lean Startup
Learn from your customer

31. https://i.ytimg.com/vi/a-J_SwmMJyo/maxresdefault.jpg
Steve Blank

32. @vfrederik
Hypothesis-Driven Thinking

33. @vfrederikConsider everything as a hypothesis
requirement
noun re·quire·ment -ˈkwī(-ə)r-mənt
: something required:
a : something wanted or needed
b : something essential to the existence or occurrence of something else

34. @vfrederikConsider everything as a hypothesis
requirement
noun re·quire·ment -ˈkwī(-ə)r-mənt
: something required:
a : something wanted or needed
b : something essential to the existence or occurrence of something else

35. @vfrederikConsider everything as a hypothesis
assumption
noun as·sump·tion ə-ˈsəm(p)-shən
a : an assuming that something is true
b : a fact or statement (as a proposition, axiom, postulate, or notion) taken for granted

36. @vfrederikConsider everything as a hypothesis
assumption
noun as·sump·tion ə-ˈsəm(p)-shən
a : an assuming that something is true
b : a fact or statement (as a proposition, axiom, postulate, or notion) taken for granted

37. @vfrederikConsider everything as a hypothesis
hypothesis
noun hy·poth·e·sis hī-ˈpä-thə-səs
: an idea or theory that is not proven but that leads to further study or discussion

38. @vfrederikConsider everything as a hypothesis
hypothesis
noun hy·poth·e·sis hī-ˈpä-thə-səs
: an idea or theory that is not proven but that leads to further study or discussion
RIGHT
WRONG

39. @vfrederik
We believe that [FEATURE]
for [PERSONAS]
will achieve [OUTCOME]
validated by [MEASUREMENTS / FEEDBACK].
Hypothesis statement

40. @vfrederikExample: problem statement

41. @vfrederikExample: hypothesis statement
We believe that adding hotel room images on
the pricing page
for a potential guest
will achieve more customer conversions
validated by a 10% increase in customers who
booking a hotel room
(compared to a previous period).
[OUTCOM
E]
[FEATURE]
[PERSONA]
[M
EASURE]

42. @vfrederik
“Although we write the feedback loop
as Build-Measure-Learn
because the activities happen in that order,
our planning really works in the reverse order”
(The Lean Startup, pages 77-78)
Build - Measure - Learn

43. @vfrederikBuild - Measure - Learn
https://steveblank.files.wordpress.com/2015/05/hypotheses-experiment.jpg

44. @vfrederikTesting the right things
https://medium.com/@toma_dan/5-steps-to-prioritization-that-actually-works-22b700d34b5e#.hnw5kz8ll
uncertainty

45. @vfrederikTesting the right things
https://medium.com/@toma_dan/5-steps-to-prioritization-that-actually-works-22b700d34b5e#.hnw5kz8ll
uncertainty

46. @vfrederik
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?
Outline

47. @vfrederik
http://www.stefangolling.de/wp-content/uploads/2014/07/BDUF_vs_MVP-1170x716.png
Minimum Viable Product

48. @vfrederik
“The minimum amount of effort you have to do
to complete exactly one turn
of the Build-Measure-Learn feedback loop.”
Minimum Viable Product
- Eric Ries, The Lean Startup

49. @vfrederik
“The lesson of the MVP is that
any additional work beyond what was required
to start learning is waste,
no matter how important it might have seemed
at the time.”
Minimum Viable Experiment
- Eric Ries, The Lean Startup

50. @vfrederikStory map
MVP
Functionalities
Productincrements

51. @vfrederik
Some MVP examples

52. @vfrederikExample 1/3: Explainer video
https://www.youtube.com/watch?v=xy9nSnalvPc

53. @vfrederik
http://image.slidesharecdn.com/jessleefakedoorshustlecon2013-130710180524-phpapp01/95/fake-doors-how-to-test-product-ideas-quickly-hustlecon-2013-16-638.jpg?cb=1373479714
Example 2/3: Fake door

54. @vfrederik
https://ioneglobalgrind.files.wordpress.com/2014/02/mcspaghetti.jpg
Example 2/3: Fake door

55. @vfrederikExample 3/3: Mechanical Turk
https://upload.wikimedia.org/wikipedia/commons/2/27/Kempelen_chess1.jpg

56. @vfrederikExample 3/3: Mechanical Turk
http://scalemybusiness.com/wp-content/uploads/2013/04/zappos.jpg

57. @vfrederik
1. Examples of failure
2. Building the right product:
Who’s responsible?
3. Lean startup thinking
4. Tool: Minimum Viable Product
5. How to facilitate?
Outline

58. @vfrederikThink - Make - Check
@vfrederik

59. @vfrederik
https://n0lcqtmqb8-flywheel.netdna-ssl.com/wp-content/uploads/2016/01/Surveys.jpg
Collect user feedback

60. @vfrederikValidation loop

61. @vfrederikBacklog with hypothesis statements

62. @vfrederikExperiment Kanban
Backlog Build Measure Learn
212
Metrics
Experiments
Hypotheses
Validated
learning

63. @vfrederik
Request
5
Assumptio
ns
3
Hypothesis
2
Ready to-
do
4
Backlog
5
Ready to-
try
3
Build
2
Measure
2
Learn
2
Experiment Kanban

64. @vfrederik
Request
5
Concept/
Assumptions
3
Analyse/
hypothesis
2
Backlog
5
Ready to-do
3
Elaborate
2
Develop
2
Validate
2
Ready to-
try
3
Build
2
Measure
2
Learn
2
Experiment Kanban
http://www.discovery-kanban.com @okaloa
User story
Hypothesis

65. @vfrederikExperiment Kanban
Hypothesis
Requests
Assumptions
“Backlog”

66. @vfrederikExperiment Kanban
Validated
learning
“Backlog”
Development flow
Experiment flow
User story
Experiment

67. @vfrederik
Team vision and discipline over
individuals and interactions (or processes and tools)
Validated learning over
working software (or comprehensive documentation)
Customer discovery over
customer collaboration (or contract negotiation)
Initiating change over
responding to change (or following a plan)
Evolution of the Agile Manifesto
http://jchyip.blogspot.de/2010/06/kent-becks-evolution-of-agile-manifesto.html

68. @vfrederik
Learn from your customer
Consider everything a hypothesis
Tool: Minimum Viable Product
Tool: Experiment kanban
Recap

69. @vfrederikConsider everything as a hypothesis
“Understanding is emergent.
We don’t start out knowing the solution.”
- Jim Benson

70. @vfrederikResources (1/2)
• Books
• Boo Hoo: A Dot.com Story from Concept to
Catastrophe
• The Lean Startup, Eric Ries
• Running Lean, Ash Maurya
• Lean UX, Jeff Gothelf
• The Mom Test, Rob Fitzpatrick

71. @vfrederikResources (2/2)
• Standish Group 2015 Chaos Report
• Why startups fail, according to their founders
• 93 of the Biggest, Costliest Startup Failures of All Time
• The 13 Biggest Failures From Famous Entrepreneurs And What They've Learned From Them
• Product Owners Maximizing Value
• The BOOTSTART Manifesto
• Multi-level feedback cycles in Scrum
• Why Build, Measure, Learn – isn’t just throwing things against the wall to see if they work –
the Minimal Viable Product
• 5-Steps to Prioritization That Actually Works
• 7 New Ways to Test Your Minimum Viable Product
• 15 ways to test your minimum viable product
• Lean UX blog posts
• Not all kanban is alike
• Keep Calm and Test the Hypothesis. 2 Minutes to See Why

73. Frederik Vannieuwenhuyse
Let’s connect!