Lean Startup: an introduction
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A short introduction into Lean Startup for the ETH Innovation and Entrepreneurship Lab (ieLab). We want to show the Startups of this incubuator how Lean Startup changes the way startups work. Instead of planning and implementing everything perfectly, Lean Startup uses small experiments and validated learnings after failures.
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Lean Startup: an introduction
- 1. Lean Startup: an introduction Fredi Schmidli & Adrian von Orelli ieLab Zürich, 7.1.2014 7.1.2014 http://de.slideshare.net/pragmaticsolutions 1
- 2. Fredi Schmidli 7.1.2014 Adrian von Orelli • Business Angel and Boardmember: www.startangels.ch • Entrepreneur • Community Builder: - meetup.com /Lean-startup-Zurich/ - Agile Breakfasts http://de.slideshare.net/pragmaticsolutions • • • • EE PhD ETHZ R&D leader Innovator 15 years of high tech product development 2
- 3. Your expectations? • ... ? • ... ? • ... ? 7.1.2014 http://de.slideshare.net/pragmaticsolutions 3
- 4. Collective experience? • Who heard about • Lean Manufacturing? • Scrum/Kanban? • Lean Startup? • Who worked with it? 11.12.2013 http://de.slideshare.net/pragmaticsolutions 4
- 5. There are 2 ways 1. Conventional way or do the things right • Assumption: machine, excellent plan and execution • Focus: Perseverance myth • Example: most Startups 2. Lean startup way or do the right things • Assumption: Dynamic systems require self-organisation • Focus: Genchi Gembutsu • Example: Zappos, Dropbox, ... 7.1.2014 http://de.slideshare.net/pragmaticsolutions 5
- 6. Lean startup way • Culture: Success can be engineered, learned, taught • Pre-requisites: Transparency, trust and courage • Method: Choose right metrics, learn fast with short feedback loop, agile development • Goal: MVP asap and minimize cycle time • Characteristics 7.1.2014 • Handle all nine dimensions of Business Model Canvas • Every relevant aspect (product features, marketing campaign ….) is worth an experiment (hypothesis and verification) http://de.slideshare.net/pragmaticsolutions 6
- 7. What is a start up? • Human institution designed to create new products and services under condition of extreme uncertainty. (Eric Ries) • A Start up is a temporary organization in search of a scalable, repeatable business model Steve Blank • BM must be found before you run out of money >> Efficient searching required • Conclusion: apply scientific methods to search with short feedback loops to validate hypothesis 7.1.2014 http://de.slideshare.net/pragmaticsolutions 7
- 8. Minimal Viable Product (Wikipedia) The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort. An MVP is not a minimal product, it is a strategy and process directed toward making and selling a product to customers. 7.1.2014 http://de.slideshare.net/pragmaticsolutions 8
- 9. Lean Canvas • Culture: KEY (by Alexander Osterwalder) PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP S CUSTOMER SEGMENTS KEY RESSOURCES CHANNELS COST STRUCTURE REVENUE STREAMS 7.1.2014 http://de.slideshare.net/pragmaticsolutions 9
- 10. Feedback loop Entrepreneurial Mgt: Stupid! It‘s the boring stuff, ... Pivot or persevere? weeks not years Turn ideas in ...... Minimum viable Product (MVP) Innovation accounting 7.1.2014 http://de.slideshare.net/pragmaticsolutions 10
- 11. Examples of MVP 4. Test vision of service offering for Dropbox MVP: Video http://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/ 7.1.2014 http://de.slideshare.net/pragmaticsolutions 11
- 12. Examples 5. Test business model for Drone based imaging system MVP: Rent camera and plane instead of building a drone http://steveblank.com/2013/07/22/an-mvp-is-not-a-cheaper-product-its-about-smart-learning/ 7.1.2014 http://de.slideshare.net/pragmaticsolutions 12
- 13. Examples 3. Test vision for flat TV MVP 7.1.2014 http://de.slideshare.net/pragmaticsolutions 13
- 14. Smart statements (from Blank and Ries) • Start up don’t fail because they have no product but because they lack customers • Get out of the building • Don’t be afraid to be embarrassed when customers see your product for the first time, you will be embarrassed anyway http://de.slideshare.net/pragmaticsolutions 14
- 15. History of lean management • After WW2 Lean management (Toyota) revolutionized manufacturing • Manufacturing processes applied to innovations kills creativity • It took 50+ years until agile SW development methods started to successfully combine innovation with lean management principles http://de.slideshare.net/pragmaticsolutions 15
- 16. Exercise (5 minutes) Define the MVP for your current product idea Hint: • What do you want to learn with your MPV? • What metric will you measure? 7.1.2014 http://de.slideshare.net/pragmaticsolutions 16
- 17. More information HBS article „Why lean start up changes everything“ www.steveblank.com Eric Ries „Lean start up“ Alexander Osterwalder “Business Model Generation” 7.1.2014 http://de.slideshare.net/pragmaticsolutions 17
- 18. Expectations met? • Yes? • Somehow? • No? 7.1.2014 http://de.slideshare.net/pragmaticsolutions 18
- 19. Contact Information Fredi Schmidli fredi@pragmatic-solutions.ch Adrian von Orelli adrian@innorell.com 7.1.2014 http://de.slideshare.net/pragmaticsolutions 19
Notas do Editor
- My vision is to establish L.Startup as the standard for entrepreneurs and investors in CH. Talk early phase Startups: Idea, Concept (ab hier), Firm (ab hier Investition), growth and with strong focus on soft facts
- Economist and BA: Entrepreneur, who failed several times; Agile mgt.: Mitarbeitende schaffen in dezentralen, selbstorganiserten und organisationsübergreifenden Teams, demonstrieren am Ende von kurzen Iterationen dem Kunden ihre Resultate und verbessern sich mit Hilfe deren Feedback kontinuierlich.
- Flipp Chart: What should be covered that you think that your investment to participitate paid off? Inspect and adapt
- How I learnt about it .... All members of the same family: They share the same PDCA-DNA
- 2 distinctively different ways: like black and white Conventional: exc. Plan an and exc. execution of plan by good people, cool idea and then perseverance Jeffrey Liker, The Toyota Way, 2003: What distinguishes the Toyota Way from other mgt. approaches
- Canvas Folie einfügen Its the boring stuff that matters – here perseverance This presentation is an MVP
- How I learnt about it .... All members of the same family: They share the same PDCA-DNA
- Canvas Folie einfügen Its the boring stuff that matters – here perseverance This presentation is an MVP
- Canvas Folie einfügen Its the boring stuff that matters – here perseverance This presentation is an MVP
- StartAngels Website: First Trial of Lean Startup Entrepreneurs hip, Mgt. dull. Boring stuff like innovation accounting. Here perserverance is king. MVP: e.g. a designer produces a new chair on which you can not sit.Innovation accounting: how to measure progress, how to set-up milestones, and how to prioritise work. Head Marketing: Do you know Lean Startup? Sure. Do you know Split- or A/B Testing? Sure. Are we doing it? No. Why. Because, we have no time ...
- Drew Houston, CEO; leap-of-faith assumptions: the part on which everything depends. Video, because it was difficult to explain the concept and it was impossible to demo the SW in a prototype.
- Startup aimed to become service provider in an emerging business called “precision agriculture”. So they looked for money to build a Drone, with special camera and SW to get the best data. MVP: Rent camera and plane instead of building a drone and offer the images to farmers. Lessons learned A minimum viable product is not always a smaller/cheaper version of your final product Think about cheap hacks to test the goal Great founders keep their eye on the prize
- See Example von Adrian
- Open View Ventures, Venture Capital Company: welche Prozessverbesserungen seit dem letzten Board Meeting Wikispeed
- Flipp Chart: Go back and check if the expectations are met.
- Open View Ventures, Venture Capital Company: welche Prozessverbesserungen seit dem letzten Board Meeting Wikispeed
- Open View Ventures, Venture Capital Company: welche Prozessverbesserungen seit dem letzten Board Meeting Wikispeed
- Flipp Chart: Go back and check if the expectations are met.
- Open View Ventures, Venture Capital Company: welche Prozessverbesserungen seit dem letzten Board Meeting Wikispeed