The myth goes that the more perseverance, brilliance, good timing and a good product, the higher the chance for success. I will show you why exactly the opposite is true: Survival and, even more so, success are highly correlated with the successful application of the “Build-Measure-Learn Feedback Loop”. The fact that this lean framework can be learned and taught is the final kill of the myth. I will give examples of how you can deliver more business value earlier and with less risks by testing everything as soon as possible using a so-called Minimum Viable Product. The Agile Company Series January 23, 2014, Afternoon and Early Evening This is a free event. For registration: http://saat-network.ch/2013/12/agile-company-lean-startup-changes-everything/

1. Why Lean Startup
changes everything
Fredi Schmidli & Adrian von Orelli
Agile_Company_Series Zürich, 23.1.2014
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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2. Adrian von Orelli
Fredi Schmidli
• Business Angel and
Boardmember:
www.startangels.ch
• Entrepreneur
• Community Builder:
- meetup.com/Leanstartup-Zurich/
- Agile Breakfasts
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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•
•
•
EE PhD ETHZ
R&D leader
Innovator
15 years of high tech
product development
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3. Your expectations?
• ... ?
• ... ?
• ... ?
23.1.2014
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4. Collective experience?
• Who heard about
• Lean Manufacturing?
• Scrum/Kanban?
• Lean Startup?
• Who worked with it?
23.1.2014
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5. What is a start up?
A 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)
Business Model must be found before you run out of money
>> Efficient searching required
23.1.2014
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6. Two ways to build a Startup
1. Plan then Execute (Conventional way)
• Assumption: excellent plan and execution > success
• Focus: do the things right / Perseverance myth
• Business plan / Waterfall product innovation
2. Lean startup way
• Assumption: Dynamic systems require self-organization and fast
learning.
• Focus: do the right things
• Business Model Canvas / Agile product innovation
23.1.2014
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7. Feedback loop
Hypothesis verified by experiment, facts based approach
Pivot or persevere?
weeks
not
years
Turn hypothesis in ......
Minimum viable
Product (MVP)
Innovation accounting
23.1.2014
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8. Lean is …
a company culture touching all aspects: Values,
Leadership, Employee Development, Empowerment,
Performance, Accountability, …
not a collection of tools
A culture can not be copied
23.1.2014
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9. Lean startup way
Culture: Embrace to learn core aspects every day to master condition of
extreme uncertainty
Pre-requisites: Transparency, trust and courage
Method: Choose right metric, learn fast by using short feedback loop, agile
development
Goal: MVP asap / minimize cycle time to learn fast
Characteristics:
Handle all nine dimensions of Business Model Canvas
Every relevant business aspect is verified by an experiment
23.1.2014
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10. Lean EcoSystem
Classic Lean Management
Lean EcoSystem
Invented by Toyota after
WW2
Lean Startup
Blank /Ries /Osterwalder
5 years old
Maximize efficiency
under “stable” conditions
Failed in the creative field
Maximize innovation
efficiency under extreme
uncertainty
Focus on continuous
improvement and
execution excellence
Agile development
(not waterfall)
customer development
(not market research)
It took 50+ years until agile SW development methods finally started to
successfully combine innovation with lean management principles
23.1.2014
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11. Lean Startup Components
Apply scientific method
to validate customer and
business assumptions.
Docu with BM canvas
Customer discovery
Customer validation
Customer creation
Company building
“Eric Ries”
Lean Startup
Agile Development
Short cycle time MVP
learn fast
Innovation accounting
growth engine types
Validate assumptions
pivot or persevere
choose relevant metric
sticky, viral, paid
“Alexander Osterwalder”
Consider all nine
business dimensions
Tackle highest risks first
Common language to
talk about business
“Steve Blank”
Customer Development
opposed to market research
Lean Startup Components
Business Model Generation
23.1.2014
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12. Lean Startup in a Nutshell:
A Startup which combines fast, iterative development
methodologies with customer development principles
(Brant Cooper)
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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13. 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. (Eric Ries)
An MVP is not a minimal product, it is a strategy and
process directed toward making and selling a product
to customers.
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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14. Examples of MVP
4. Test vision of service offering for Dropbox
http://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/
23.1.2014
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15. Exercise (5 minutes)
Define the MVP for your current product idea
Hint:
• Where is your largest risk?
• What do you want to learn with your MPV?
• What metric will you measure?
23.1.2014
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16. 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/
23.1.2014
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17. Examples
3. Test vision for flat TV
MVP
From Tom Kelly „the ten faces of innovation“
23.1.2014
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18. Customer Development
23.1.2014
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19. More information
HBS article „Why lean start up changes everything“
www.steveblank.com
Steve lank: “Startup Owners Manual”
Eric Ries: „Lean start up“
Alexander Osterwalder: “Business Model Generation”
Brant Cooper: “Entrepreneurs Guide to Customer
Development”
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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20. Expectations met?
• Yes?
• Somehow?
• No?
23.1.2014
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21. Contact Information
Fredi Schmidli
fredi@pragmatic-solutions.ch
Adrian von Orelli
adrian@innorell.com
23.1.2014
http://de.slideshare.net/pragmaticsolutions
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