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THE LEAN STARTUP
H OW T O T H R I V E I N A C H A NGI NG E C ONOM Y W I T H
A GI L E T H I N K I NG , P RO C E S S E S A N D P RODUC T S
The Lean Startup - Optimal Digital Marketing | Website Marketing, Web Design, Web Marketing | Appleton WI
PE T E R DRUCK E R




"THERE IS SURELY NOTHING
QUITE SO USELESS AS DOING
WITH GREAT EFFICIENCY WHAT
SHOULD NOT BE DONE AT ALL"
OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP                        1/10/13
LEAP OF FAITH




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP   1/10/13
FAILURE RATE

                                      90




                                     67.5




                                      45




                                     22.5




                                       0
N U M BE R OF Y E A R S                     1   2          3           4   5   6   7   8   9   10




      OPTIMAL WEB CONSULTANTS INC.                  THE LEAN STARTUP                                1/10/13
LEAN STARTUP


1. Provides a system, a structure

2. Make decisions on facts, not
   assumptions

3. Find your product market fit

    OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP   1/10/13
LEAN
Z E RO PE RC E N T B ODY FAT
OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
OVERVIEW

            LEAN STARTUP
                                                  EXAMPLES   Q&A
                 101




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP                    1/10/13
SCIENCE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
ERIK RIES




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
LESS WASTE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
THE LOOP

                                                   BUILD




                               LEARN                       MEASURE




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP                     1/10/13
IDEA




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP          1/10/13
MVP

           Prototype of product

           Least amount of effort to extract the most
           amount of learning

           Validates your leap of faith assumptions


OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP         1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
MEASURE

           Measure the present (baseline)

           Tune the engine (experiments)

           Pivot or persevere

OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
MEASURE -INNOVATION
                                  ACCOUNTING



           Validates leap of faith assumptions

           Actionable metrics vs. vanity metrics



OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP     1/10/13
VANITY METRICS




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP   1/10/13
METRICS


             ACTIONABLE                           ACCESSIBLE   AUDITABLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP                            1/10/13
ACTIONABLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
ACCESSIBLE

           Simple

           Concrete units

           Cohort analysis

           Easy to access


OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
COHORT ANALYSIS




                               H T T P : / / G O O . GL / 8 O ORQ


OPTIMAL WEB CONSULTANTS INC.          THE LEAN STARTUP              1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EXAMPLE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
EASY TO ACCESS




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP   1/10/13
AUDITABLE

           Credible

           Metrics are people too

           Find cause and affect

OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
PIVOT OR
                                     PERSEVERE




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
OUR PIVOT

                                                       1. Top search engine
                               1.
                                                          positioning

                                                       2. Turn browsers in
                                             2.
                                                          to buyers


OPTIMAL WEB CONSULTANTS INC.        THE LEAN STARTUP                    1/10/13
OUR PIVOT

                                                            1. Custom web design

                               2.                           2. Top search engine
1.                                                             positioning

                                                            3. Turn browsers in to
                                                       3.
                                                               buyers


OPTIMAL WEB CONSULTANTS INC.        THE LEAN STARTUP                           1/10/13
PIVOT TYPES
                                                   Zoom-in pivot

                                                   Zoom-out pivot

                                                   Customer segment pivot

                                                   Customer need pivot

                                                   Platform pivot

                                                   Business architecture pivot

                                                   Value capture pivot

                                                   Engine of growth pivot

                                                   Channel pivot

                                                   Technology pivot


OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP                                 1/10/13
RUNWAY




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
THE LOOP

                                                   BUILD




                               LEARN                       MEASURE




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP                     1/10/13
ACCELERATE


                                                  Small batches

                                                  Fast
                                                  production


OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP                1/10/13
ENGINES OF
                                       GROWTH


           Sticky engine of growth

           Viral engine of growth

           Paid engine of growth

OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP    1/10/13
STICKY ENGINE
                                 OF GROWTH


                                                  Attract and retain customers

                                                  Track attrition or churn rate

                                                  If new customers > churn rate = growth

                                                   Speed = rate of compounding
                                                   (growth-churn)



OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP                               1/10/13
VIRAL ENGINE OF
                                  GROWTH

           Require person to person
           transmition

           Viral coefficient=new customers
           each new users brings

           Growth= viral coefficient > 1


OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP   1/10/13
PAID ENGINE OF
                                  GROWTH


      Cost of a customer - revenue

      Can grow by

      Lowering costs of acquiring

      Increasing revenue per customer


OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
LEARN

           Measure what is most important to
           your engine of growth

           Productivity is learning


OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
THE LOOP

                                                   BUILD




                               LEARN                       MEASURE




OPTIMAL WEB CONSULTANTS INC.    THE LEAN STARTUP                     1/10/13
COMING IN FOR
                                 LANDING




OPTIMAL WEB CONSULTANTS INC.   THE LEAN STARTUP   1/10/13
Q&A
T H A N K YOU


S L I DE S H A R E : H T T P : / /

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The Lean Startup - Optimal Digital Marketing | Website Marketing, Web Design, Web Marketing | Appleton WI

  • 1. THE LEAN STARTUP H OW T O T H R I V E I N A C H A NGI NG E C ONOM Y W I T H A GI L E T H I N K I NG , P RO C E S S E S A N D P RODUC T S
  • 3. PE T E R DRUCK E R "THERE IS SURELY NOTHING QUITE SO USELESS AS DOING WITH GREAT EFFICIENCY WHAT SHOULD NOT BE DONE AT ALL" OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 4. LEAP OF FAITH OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 5. FAILURE RATE 90 67.5 45 22.5 0 N U M BE R OF Y E A R S 1 2 3 4 5 6 7 8 9 10 OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 6. LEAN STARTUP 1. Provides a system, a structure 2. Make decisions on facts, not assumptions 3. Find your product market fit OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 7. LEAN Z E RO PE RC E N T B ODY FAT
  • 8. OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 9. OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 10. OVERVIEW LEAN STARTUP EXAMPLES Q&A 101 OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 11. SCIENCE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 12. ERIK RIES OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 13. LESS WASTE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 14. THE LOOP BUILD LEARN MEASURE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 15. IDEA OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 16. MVP Prototype of product Least amount of effort to extract the most amount of learning Validates your leap of faith assumptions OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 17. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 18. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 19. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 20. MEASURE Measure the present (baseline) Tune the engine (experiments) Pivot or persevere OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 21. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 22. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 23. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 24. MEASURE -INNOVATION ACCOUNTING Validates leap of faith assumptions Actionable metrics vs. vanity metrics OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 25. VANITY METRICS OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 26. METRICS ACTIONABLE ACCESSIBLE AUDITABLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 27. ACTIONABLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 28. ACCESSIBLE Simple Concrete units Cohort analysis Easy to access OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 29. COHORT ANALYSIS H T T P : / / G O O . GL / 8 O ORQ OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 30. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 31. EXAMPLE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 32. EASY TO ACCESS OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 33. AUDITABLE Credible Metrics are people too Find cause and affect OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 34. PIVOT OR PERSEVERE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 35. OUR PIVOT 1. Top search engine 1. positioning 2. Turn browsers in 2. to buyers OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 36. OUR PIVOT 1. Custom web design 2. 2. Top search engine 1. positioning 3. Turn browsers in to 3. buyers OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 37. PIVOT TYPES Zoom-in pivot Zoom-out pivot Customer segment pivot Customer need pivot Platform pivot Business architecture pivot Value capture pivot Engine of growth pivot Channel pivot Technology pivot OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 38. RUNWAY OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 39. THE LOOP BUILD LEARN MEASURE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 40. ACCELERATE Small batches Fast production OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 41. ENGINES OF GROWTH Sticky engine of growth Viral engine of growth Paid engine of growth OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 42. STICKY ENGINE OF GROWTH Attract and retain customers Track attrition or churn rate If new customers > churn rate = growth Speed = rate of compounding (growth-churn) OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 43. VIRAL ENGINE OF GROWTH Require person to person transmition Viral coefficient=new customers each new users brings Growth= viral coefficient > 1 OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 44. PAID ENGINE OF GROWTH Cost of a customer - revenue Can grow by Lowering costs of acquiring Increasing revenue per customer OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 45. LEARN Measure what is most important to your engine of growth Productivity is learning OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 46. THE LOOP BUILD LEARN MEASURE OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 47. COMING IN FOR LANDING OPTIMAL WEB CONSULTANTS INC. THE LEAN STARTUP 1/10/13
  • 48. Q&A T H A N K YOU S L I DE S H A R E : H T T P : / /