Professional Documents
Culture Documents
WORKSHOP
AGENDA
1. Intro 2. Overview of the bases of Lean Startup 1. Lean Manufacturing 2. Customer Development 3. Agile Development 3. Entrepreneurship is Management 4. Validated Learning 5. Build - Measure Learn 6. Innovation Accounting
INTRO
WHAT IS A STARTUP?
A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. Nothing to do with size of company, sector of the economy or industry
CUSTOMER DEVELOPME NT
BASES OF LEAN STARTUP
Marketing
Develop a repeatable sales process Only earlyvangelists are crazy enough to buy
CUSTOMER CREATION
STEP 3
Customer Discovery
Customer Validation
Customer Creation
Company Building
Creation comes after proof of sales Creation is where you cross the chasm It is a strategy not a tactic
COMPANY BUILDING:
STEP 4
Customer Discovery
Customer Validation
Customer Creation
Company Building
GENCHI GEMBUTSU
GO AND SEE FOR YOURSELF GET OUT OF THE BUILDING STEVE BLANK
JUST IN TIME
The right material At the right time At the right place In the exact amount
Un-Evenness
work that creates burden for the Picture Source Toyota Motor Companyteam members or processes Australia
8 WASTES
In LEAN 8 types of waste have been identified
Waiting Overproduction
All of these 8 can be either Necessary Waste or Un-necessary Waste Depending on circumstance
Motion
AGILE DEVELOPMENT
BASES OF LEAN STARTUP
AGILE DEVELOPMENT
Solution: Unknown
STARTUP = EXPERIMENT
VALIDATED LEARNING
VALIDATED LEARNING
Focus energies on validated learning, learning where and when to invest energy results in saving time and money
MINIMIZE TOTAL TIME THROUGH TOTAL J me through the loop THE LOOP Minimize
IDEAS
LEARN
BUILD
DATA
CODE
MEASURE
LEARNING MILESTONES
Planned the opposite way: What do we need to learn? Use Innovation accounting to figure out what needs to be measured to know if we are gaining validated learning What product needs to be built to run the experiment and measure?
QUALITY IN AN MVP
IF WE DONT KNOW WHO THE CUSTOMER IS, WE DONT KNOW WHAT QUALITY IS
STARTUPS JOB
Measure where it right and wrong Confronting hard truths Devise Experiments to learn how to move the real numbers closer to the ideal reflected in the business plan
EXPERIMENTS
Do them with early adopters, not average customers GOAL: Measure what customers did (unlike focus groups)
An experiment is a PRODUCT
INNOVATION ACCOUNTING
INNOVATION ACCOUNTING
1. Baseline - Use MVP to establish real data on where the company is right now 2. Tuning the engine - Fine tune from baseline towards ideal 3. Pivot or persevere
BASELINE
Test riskiest assumptions first Careful with vanity metrics (up and to the right) Use Learning milestones P.e. conversion rates Sign up and trial rates Customer lifetime value
PIVOT OR PERSEVERE
Schedule a regular meeting (every 6 weeks, for instance)
Startups that fails to converge to something like the ideal: time to pivot
FUNNEL METRICS
Behaviors critical to engine of Growth (specific to each business) Customer registration Downloads Trials Repeat Usage Purchase
COHORT ANALYSIS
One of the most important tools of Startup Analysis Dont look at cumulative totals or gross numbers like total revenue and total number of customers Look at performance of each group of customers Each group is called a Cohort
VANITY METRICS
Gross Metrics Total Registered User Total Paying customers, etc
PIVOT
Structured Course Correction designed to test a new fundamental hypothesis about a product, strategy and engine of growth. A pivot requires that we keep one foot rooted in what weve learned so far, while making a fundamental change in strategy
CATALOG OF PIVOTS
Zoom-in refocus on what was before a feature Zoom-out what was once the product becomes a feature Customer Segment changing the target audience Customer need change to a higher customer need Platform from product to platform and viceversa Business Architecture From high margin, low volume to low margin high volume or vice versa Value Capture Change the way company captures value
BATCH
A CAUTIONARY TALE ABOUT LETTERS
ENGINE OF GROWTH
Behind every supposed technical problem is usually a human problem. Fix the cause, not just the symptom.