How large companies can be as fast and agile as the successful startups? And what is MVP and Dual-track Agile, anyway? We are to discuss a real case of implementation of some methods of Lean Startup and Customer Development in Kaspersky Lab.

1. Breaking the mold: Lean Product
Management and MVP in a large company
Ilia Kuznetsov
Deputy CTO, Strategy Development
Kaspersky Lab
http://ru.linkedin.com/in/iliakuznetsov/
ilia.v.kuznetsov@gmail.com

2. How decisions on the product future
are made?
Business plan
Processes
Opinions
2
Cannot be tested
Long and boring
…yes… and opinions…

3. Now try to sell a business plan to a VC…
“No business plan survives first contact with
the customer”
3
“Your opinion although interesting is
irrelevant”
“Nothing important happens in the office”
“There are no facts inside the
building, so get the heck
outside” -- Steve Blank

4. An experiment with the market? MVP!
MVP (Minimal Viable Product) – smallest
product increment that can accelerate the
learning necessary to develop a sustainable
business model in highly uncertain markets.
4
A dron with a hyper-spectral camera
MVP ≠ Prototype
MVP ≠ Cheaper Developed
Product
MVP = “fake it before you make it”

5. Dropbox, Facebook… KASPERSKY???
6
Private beta: Mar 2008

6. Kaspersky Security Scan:
Case Study
7
• Free antimalware scanner for PC
• Revenues from the user’s traffic:
~ $ 7-digit
• Release cycle: 6-8 mon

7. MVP1: Decrease conversion time
8
• CRkis >> CR1
• 22% prefer to install Kaspersky
Internet Security right away!
• CRnew = 88%*CR1 + 22%*CRkis
• Wait a couple of month to get the
statistics on CRkis…

8. MVP1: Find the bottleneck
9
Fix installer bug
2.5x Conversion Rate
in the full funnel!
Sub-funnel: “Get full protection”
• Product is not changed
• No release yet
• Efforts… 2 m/week

9. MVP2: New feature
10
Results:
• > 50% attempts to use the function
• > 60% installed Kaspersky Internet Security
• > 60% installation with other АV
Conclusion:
• Yes, implement it! (grounded $ projection available)
• Although efforts are needed, need to be compatible
with other AV
• Compatibility of KIS with other AV for displacement is
a must

10. MVP is a challenge for big companies
11
Big company Startup
Stable business-model Not fully defined business model
Processes: sync for a large number of
people is needed, quality requirements
Processes and quality requirements not
that important
Plans on KPI Fail Fast

11. Startup + operational company =
12
DUAL-TRACK AGILE

12. Fast-track Team Recipe
Developer Designer
MVP-champion release cycle (6-12 month)
13
Business Dp R&D
~week
Fast Track
Team
~2-8 weeks
Test hypothesis
VS status quo
Understand the essence of
the formal processes
(legal, requirement flow,
quality requirements)
Specific
competences vs
«typical» for
development
Hustler
Hacker Hipster

13. Get the heck outside…
14
Juha Nasreddin
… but before getting the facts
from outside, think how to
bring them inside

14. Read that!
• The Four Steps to the Epiphany – Steve Blank
• How to Create Products Customers Love – Marty Cagan
Contacts:
http://ru.linkedin.com/in/iliakuznetsov
ilia.v.kuznetsov@gmail.com
15