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Norbert	
  Zeller
Luzern,	
  25.	
  Mai	
  2016
Lean Innovation
“Increase Success Rate of Startups”
Betriebswirtschaft
Ingenieure
Startup
Lean
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 1
Keep in mind
Don’t sell the products you can build
Build the products you can sell
Life is too short to build things nobody
wants
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 2
Experience	
  -­‐ What‘s in	
  for me?
• experience-­‐check
• Agile	
  experience (in	
  theory,	
  in	
  
practice)
• Lean	
  Manufactoring (SCRUM,	
  
Kanban,	
  ..)
• Lean	
  Innovation	
  (Lean	
  Startup,	
  
Canvas,	
  BML-­‐Loop,	
  Customer	
  
Journey/Development,	
  ..)
• expectations (WIFM)
• 1	
  Question – 1	
  Post-­‐It
5	
  Minuten	
  
13./14.4.2016	
   www.pragmatic-­‐solutions.ch3
Norbert Zeller, norbert@pragmatic-solutions.ch, +41 79 402 74 59
• EE	
  FH,	
  MoM MZSG
• Management	
  Teams	
  in	
  various	
  functions
• Partner	
  at	
  Trivadis AG
• StartAngels member
• Board	
  member
• Entrepreneur
• Agile	
  executive	
  coach	
  at	
  pragmatic	
  solutions	
  
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch4
What is a Startup?
A	
  human	
  institution	
  designed	
  to	
  create	
  new	
  products	
  
and	
  services	
  under	
  condition	
  of	
  extreme	
  uncertainty
(Eric	
  Ries,	
  The	
  Lean	
  Startup,	
  2011)
5HSLU	
  -­‐ 25.	
  Mai	
  2016www.pragmatic-­‐solutions.ch
Goal: To improve the Success Rate
Source:	
  Ash	
  Maurya «Running Lean»
6
• 66%	
  of	
  successful	
  Startups	
  significantly	
  change	
  original	
  
business	
  idea
• “wrong”	
  product	
  and	
  “premature”	
  scaling
• 9/10	
  failing
HSLU	
  -­‐ 25.	
  Mai	
  2016www.pragmatic-­‐solutions.ch
Traditional versus Lean
Source:	
  Ash	
  Maurya:	
  Running Lean
7HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch
825.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch
Goal of Lean Innovation Framework
Finding	
  a	
  business	
  model,	
  which	
  is	
  	
  
• profitable
• repeatable
• scalable
or	
  let the	
  Startup	
  die and	
  start a	
  new one
9HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch
Lean Innovation Framework
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 10
Problem/Solution Fit, Prod/M-Fit?
HSLU	
  -­‐ 25.	
  Mai	
  2016
See:	
  http://practicetrumpstheory.com/2012/02/why-­‐lean-­‐canvas/
www.pragmatic-­‐solutions.ch 11
How?
Scale
Product	
  
Market	
  
fit
Problem	
  
Solution	
  
fit
Qualitative	
  
Validation
Quantitative	
  
Validation
Is	
  Business	
  Model	
  
profitable,	
  repeatable	
  
and	
  scalable?
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 12
By iterating Lean	
  Canvas Ideas with Build-­‐Measure-­‐Learn
Feedback	
  Loop	
  through 3	
  stages until we reach:
Early Adopters
HSLU	
  -­‐ 25.	
  Mai	
  2016
www.pragmatic-­‐solutions.ch
2.5% 13.5% 34% 34% 16%
13
Where is the risk?
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 14
HSLU	
  -­‐ 25.	
  Mai	
  2016 15www.pragmatic-­‐solutions.ch
HSLU	
  -­‐ 25.	
  Mai	
  2016 16www.pragmatic-­‐solutions.ch
BML Feedback loop
Design	
  
experiment
Proposal,	
  Pretotype,
Landing	
  page,	
  MVP	
  …Results	
  
Analyse results:
persevere,	
  pivot
or	
  quit?
weeks	
  
not	
  
years
Assumption/
Hypothesis
Run	
  
experiment
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 17
Source:	
  Eric	
  Ries:	
  The	
  Lean	
  Startup
Running – scaling lean
HSLU	
  -­‐ 25.	
  Mai	
  2016 18www.pragmatic-­‐solutions.ch
www.nasdaq.com/de/symbol/tsla/interactive-­‐chart
HSLU	
  -­‐ 25.	
  Mai	
  2016 19www.pragmatic-­‐solutions.ch
MVP Definition
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 20
The minimum viable product is that
product which has just those
features and no more that allows
you to ship a product that early
adopters see and, at least some of
whom resonate with, pay you money
for, and start to give you feedback
on. Eric Ries
Minimal Viable Product
An	
  MVP	
  is	
  NOT a	
  crappy	
  version	
  of	
  the	
  final	
  product.
The	
  challenge	
  is	
  to	
  achieve	
  “minimal”	
  and “viable”.
No  one  said  that  this  is  easy
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 21
HSLU	
  -­‐ 25.	
  Mai	
  2016 22www.pragmatic-­‐solutions.ch
Learning is hard and often frustrating
LEARN: … or pivot
Pivot:  A  change  in  strategy  
without  a  change  in  vision
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 23
Experiment Report
Why is it relevant?
Quantify your goals
set scope/timebox
Plan	
  how to execute
experiment
Results =	
  Data
Document the learning (validated,
invalidated or inconclusive)	
  
Test	
  value and growth hypothesis first
Move	
  to next experiment
HSLU	
  -­‐ 25.	
  Mai	
  2016 24www.pragmatic-­‐solutions.ch
Lean Dash Board (Lean Stack)
Flow
25HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch
Lean Dash Board: Example
HSLU	
  -­‐ 25.	
  Mai	
  2016 26
Customer	
  Example:
Insurance	
  Company
www.pragmatic-­‐solutions.ch
Combine “What?” with “How?”
Scale
Product	
  
Market	
  
fit
Problem	
  
Solution	
  
fit
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 27
More information
• HBS	
  article	
  „Why	
  lean	
  start	
  up	
  changes	
  everything“
www.steveblank.com
• Steve	
  Blank:	
  “Startup	
  Owners	
  Manual”
• Eric	
  Ries:	
  	
  ”Lean	
  start	
  up“
• Ash	
  Maurya:	
  ”Running	
  Lean”	
  “Scaling	
  Lean”
• Alexander	
  Osterwalder:	
  “Business	
  Model	
  Generation”
• Brant	
  Cooper:	
  “Entrepreneurs	
  Guide	
  to	
  Customer	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Development”
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 28
The end
HSLU	
  -­‐ 25.	
  Mai	
  2016 www.pragmatic-­‐solutions.ch 29

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Lean Innovation an der HSLU

  • 1. Norbert  Zeller Luzern,  25.  Mai  2016 Lean Innovation “Increase Success Rate of Startups” Betriebswirtschaft Ingenieure Startup Lean HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 1
  • 2. Keep in mind Don’t sell the products you can build Build the products you can sell Life is too short to build things nobody wants HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 2
  • 3. Experience  -­‐ What‘s in  for me? • experience-­‐check • Agile  experience (in  theory,  in   practice) • Lean  Manufactoring (SCRUM,   Kanban,  ..) • Lean  Innovation  (Lean  Startup,   Canvas,  BML-­‐Loop,  Customer   Journey/Development,  ..) • expectations (WIFM) • 1  Question – 1  Post-­‐It 5  Minuten   13./14.4.2016   www.pragmatic-­‐solutions.ch3
  • 4. Norbert Zeller, norbert@pragmatic-solutions.ch, +41 79 402 74 59 • EE  FH,  MoM MZSG • Management  Teams  in  various  functions • Partner  at  Trivadis AG • StartAngels member • Board  member • Entrepreneur • Agile  executive  coach  at  pragmatic  solutions   HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch4
  • 5. What is a Startup? A  human  institution  designed  to  create  new  products   and  services  under  condition  of  extreme  uncertainty (Eric  Ries,  The  Lean  Startup,  2011) 5HSLU  -­‐ 25.  Mai  2016www.pragmatic-­‐solutions.ch
  • 6. Goal: To improve the Success Rate Source:  Ash  Maurya «Running Lean» 6 • 66%  of  successful  Startups  significantly  change  original   business  idea • “wrong”  product  and  “premature”  scaling • 9/10  failing HSLU  -­‐ 25.  Mai  2016www.pragmatic-­‐solutions.ch
  • 7. Traditional versus Lean Source:  Ash  Maurya:  Running Lean 7HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch
  • 8. 825.  Mai  2016 www.pragmatic-­‐solutions.ch
  • 9. Goal of Lean Innovation Framework Finding  a  business  model,  which  is     • profitable • repeatable • scalable or  let the  Startup  die and  start a  new one 9HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch
  • 10. Lean Innovation Framework HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 10
  • 11. Problem/Solution Fit, Prod/M-Fit? HSLU  -­‐ 25.  Mai  2016 See:  http://practicetrumpstheory.com/2012/02/why-­‐lean-­‐canvas/ www.pragmatic-­‐solutions.ch 11
  • 12. How? Scale Product   Market   fit Problem   Solution   fit Qualitative   Validation Quantitative   Validation Is  Business  Model   profitable,  repeatable   and  scalable? HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 12 By iterating Lean  Canvas Ideas with Build-­‐Measure-­‐Learn Feedback  Loop  through 3  stages until we reach:
  • 13. Early Adopters HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 2.5% 13.5% 34% 34% 16% 13
  • 14. Where is the risk? HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 14
  • 15. HSLU  -­‐ 25.  Mai  2016 15www.pragmatic-­‐solutions.ch
  • 16. HSLU  -­‐ 25.  Mai  2016 16www.pragmatic-­‐solutions.ch
  • 17. BML Feedback loop Design   experiment Proposal,  Pretotype, Landing  page,  MVP  …Results   Analyse results: persevere,  pivot or  quit? weeks   not   years Assumption/ Hypothesis Run   experiment HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 17 Source:  Eric  Ries:  The  Lean  Startup
  • 18. Running – scaling lean HSLU  -­‐ 25.  Mai  2016 18www.pragmatic-­‐solutions.ch
  • 19. www.nasdaq.com/de/symbol/tsla/interactive-­‐chart HSLU  -­‐ 25.  Mai  2016 19www.pragmatic-­‐solutions.ch
  • 20. MVP Definition HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 20 The minimum viable product is that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on. Eric Ries
  • 21. Minimal Viable Product An  MVP  is  NOT a  crappy  version  of  the  final  product. The  challenge  is  to  achieve  “minimal”  and “viable”. No  one  said  that  this  is  easy HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 21
  • 22. HSLU  -­‐ 25.  Mai  2016 22www.pragmatic-­‐solutions.ch Learning is hard and often frustrating
  • 23. LEARN: … or pivot Pivot:  A  change  in  strategy   without  a  change  in  vision HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 23
  • 24. Experiment Report Why is it relevant? Quantify your goals set scope/timebox Plan  how to execute experiment Results =  Data Document the learning (validated, invalidated or inconclusive)   Test  value and growth hypothesis first Move  to next experiment HSLU  -­‐ 25.  Mai  2016 24www.pragmatic-­‐solutions.ch
  • 25. Lean Dash Board (Lean Stack) Flow 25HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch
  • 26. Lean Dash Board: Example HSLU  -­‐ 25.  Mai  2016 26 Customer  Example: Insurance  Company www.pragmatic-­‐solutions.ch
  • 27. Combine “What?” with “How?” Scale Product   Market   fit Problem   Solution   fit HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 27
  • 28. More information • HBS  article  „Why  lean  start  up  changes  everything“ www.steveblank.com • Steve  Blank:  “Startup  Owners  Manual” • Eric  Ries:    ”Lean  start  up“ • Ash  Maurya:  ”Running  Lean”  “Scaling  Lean” • Alexander  Osterwalder:  “Business  Model  Generation” • Brant  Cooper:  “Entrepreneurs  Guide  to  Customer                       Development” HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 28
  • 29. The end HSLU  -­‐ 25.  Mai  2016 www.pragmatic-­‐solutions.ch 29