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Growth Startup - How to Build Scalable & Flexible Applications to Manage Hyper Growth

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The Talks describes the different Startup Phases and how to build your Application Structure accordingly.

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Growth Startup - How to Build Scalable & Flexible Applications to Manage Hyper Growth

  1. 1. 1 Growth Startup How to Build Scalable & Flexible Applications to Manage Hyper GrowthChristian Zacharias CTO - Finleap
  2. 2. 2 Christian Zacharias CTO - Finleap until now // CTO @Finleap until end 2014 // CTO @Tirendo until Mid 2013 // Freelance Software Architect until End 2009 // Developer @Spreadshirt
  3. 3. Growth Startup ©2015 Christian Zacharias 3 Finleap - The FinTech Company Builder Part of the Hitfox Group 4 - 6 Companies per Year 0.5 - 5 m € seed funding per company Finleap launched in Nov. 2014 Finleap uses new technologies and scalable business models to provide cheaper, simpler and more transparent digital services within the FinTech market. hire up the 150 people in 2015
  4. 4. Growth Startup ©2015 Christian Zacharias Startups in Germany Statistics by DSM 2014 4
  5. 5. Growth Startup ©2015 Christian Zacharias Lean Startup Cycle Startup Tool of Choice, developed Eric Ries 5 Ideas CodeData Build Measure Learn
  6. 6. Growth Startup ©2015 Christian Zacharias Startup Phases of Growth 6 Startup GrowthTransition
  7. 7. Growth Startup ©2015 Christian Zacharias ‣ Only Goal ist to find the product-market fit ‣ Main Metrics are Customer Retention: How long and often is the Interaction, ask them about your product ‣ Try different Channels to fin the best one for you Product ‣ Optimize on Macro Level, not the small things Startup Phase Establish your Business and gain some traction 7 “Make things people want!” Paul Graham, YCombinator
  8. 8. Growth Startup ©2015 Christian Zacharias ‣ Goal: This is when you start to pinpoint and interpret different growth levers that are catered toward your particular business. You’ll learn what can positively impact your business and what doesn’t. ‣ Metric: During this phase, you should watch and understand your Cost Per Acquisition and Life- Time Value. If you have been receiving the necessary data, this metric should be straightforward. ‣ Channels: In the first stage, you chose several channels that are best for your product. Now it’s time to focus in and choose the most effective. If it’s already effective, build on it and the growth rate will continue increasing. ‣ Optimization: Instead of placing all of your attention on the big picture (or macro optimization), start switching your focus to the smaller picture (or micro optimization). Transition Phase Establish the Foundation for your Growth 8 MOVE FORWARD IN THE RIGHT DIRECTION
  9. 9. Growth Startup ©2015 Christian Zacharias ‣ Goal: The growth levers from the transitioning phase that you started pinpointing? Start tweaking them and make them fit your exact needs. ‣ Metric: The spotlight is still pointed toward growth rate, but this shouldn’t be your only focus anymore. Since growth is now occurring, you’ll want to look at your payback period. You’ll want a shorter payback period in order to have a better investment. ‣ Channels: Do everything you can with the channel you have to fulfill its full potential. This channel will handle most of your growth. See what other channels are out there so you can create diversity among them. ‣ Optimization: Because you’ve focused on macro since the beginning, it’s now time to focus solely on micro. Small changes can also yield large results. Growth Phase Maintain the Growth our your Startup 9 make small changes that create big effects
  10. 10. Growth Startup ©2015 Christian Zacharias Startup Phases of Growth 10 Startup Transition Growth Goal Product/Market Fit Discovering Growth Levers Turning up Growth Levers Metrics Retention (CPA > CLV) Growth Rate (CPA ~ CLV) Growth Rate (CPA < CLV) Channels Experiment with 2-3 Channels to find the one to concentrate on Concentrate on first Channel Focus on > 1 Channel Optimization Macro Macro + Micro Micro Tools Lean Startup, Prototyping & MVP Lean Startup & Agile Iterations Multichannel Plattform, Scalable & Flexible Team
  11. 11. Growth Startup ©2015 Christian Zacharias 11 DBAPP {API} Architecture Deployment Repository Analytics DevOps as a Service Cloud Hosting Production Staging Get Key Metrics for Startup Phase Simple Stack Team Small and Agile Team focusing on building the MVP and the first Iterations. Infrastructure as a Service to Streamline you Process Development Product UI/UX DB Queries
  12. 12. Growth Startup ©2015 Christian Zacharias ‣ Focussing on building the MVP • It has to be smooth for the Customer, not for your • It should transport your USP, nothing more • Doing things manually is fine, you can automate later ‣ ship early, ship often • start with scrum for building the MVP, switch to Kanban and Continuous Delivery later ‣ not reinvent the wheel • use Frameworks, Libraries and 3rd Party Services ‣ Get Customer Feedback, Set up and Measure the key KPI´s Get your Startup Live Build the MVP; Get customers; Learn and Iterate 12
  13. 13. Growth Startup ©2015 Christian Zacharias 13 Architecture Analytics, Metrics, DWH Track everything, build a DWH and learn everything about your System Behavior DB KV { } BE FE Queue API DWHETL Central Logging Team Build up separate Teams to cover the increase complexity Development Product UI/UX DevOps Repository Infrastructure as Code Cloud Hosting Production Staging Simple Stack Build an own Devops/Sysadmin Team to gain control about Infrastructure Dev-VM CI Server deploy & autoscale
  14. 14. Growth Startup ©2015 Christian Zacharias ‣ Service oriented Architecture ‣ Scale Frontend through Read Only Central Data Storages ‣ Be prepared for Failing and Fail Early ‣ Monitor and Measure everything ‣ automate the Deployment and Instance Management ‣ Keep your Codebase Clean and Readable • gets new Team Member on speed fast ‣ Automated Tests, Continuous Integration and Continuous Delivery Hardening your Platform Prepare your Platform to handle the Growth 14
  15. 15. Growth Startup ©2015 Christian Zacharias 15 DevOps Repository Infrastructure as Code Cloud Hosting Production Staging Simple Stack Measure the Behavior of your system and scale (automatically) when necessary Dev-VM CI Server deploy & autoscale Analytics, Metrics, DWH Use Data for CRM, Marketing and Recommendations. DWH Team Strong Teams, self organized and responsible for specific components Development Product UI/UX Architecture DB KV Queue { } LB API LB WebApp KV Search Service Product Service Worker Customer Service Service-Layer Image Service Content Service ETL Central Logging BI
  16. 16. Growth Startup ©2015 Christian Zacharias ‣ encapsulate Domain Logic in separate Services ‣ Autoscale your Services and Instance Pools ‣ Use Queues and internal APIs for Communications betweens Services ‣ Build independently Teams who are responsible for specific Services ‣ Learn about your internal and external Traffic Patterns ‣ Use your Data to optimize your Business Scale your Architecture, Teams and Processes Keep Control about your System through separation 16
  17. 17. Growth Startup ©2015 Christian Zacharias Lean Startup Cycle Startup Tool of Choice, developed Eric Ries 17 Ideas CodeData Build Measure Learn Split Test Customer Interviews Customer Development Five Whys Root Cause Analysis Customer Advisory Board Falsifiable Hypotheses Product Owner Accountability Custom Archetypes Cross-functional Teams Smoke Tests Unit Test Usability Tests Continuous Integration Incremental Deployment Free & Open Source Components Cloud Computing Just-In Time Scalability Refactoring Developer VM Split Tests Clear Product Owner Continuous Deployment Realtime Monitoring Custom Liaison Funnel Analysis Cohort Analysis Net Promotor Score Search Engine Marketing Realtime Alerting Predictive Monitoring
  18. 18. 18 Q/A