1. Things that you want to know about
LEAN STARTUP
Ratko Mutavdžić, PROJEKTURA
*learning how to build a startup and avoid other people’s mistakes
2. INTRO
just a few words about me
so, if we all nod our heads... we can continue...
• Ratko Mutavdzic is founder of PROJEKTURA, consulting company that work
with new and emerging technologies and introduce them to the corporate and
enterprise environments. Prior to this one, he spent 15 years Microsoft, starting
in a consulting practice and then leading several different sales and technology
teams.
• He is the author of number of published papers on different aspects of the
technology, successful blogs on new technologies and project management,
and active contributor in a number of social networks exploring the use and
advance of new ways to connect and share innovation and invention.
• He frequently speaks on conferences, meetings, workshops, coffee shops and
generally at every place where people like to explore, challenge, investigate,
think and innovate.
• Keywords: change, project, program, portfolio, innovation, startup
note: more contact info on a last slide
4. but if you think you already know all the anwsers...
5. Message from Steve Blank:
„(almost) EVERYTHING YOU KNEW ABOUT STARTING A
COMPANY IS WRONG. „
6. FEW ASSUMPTIONS AT THE BEGINNING...
you know what I am talking about
learnings from Lean Startup are universal
... and I am still hoping that you are not here to apply Corporation to Startup
• You want to learn about Enterpreneurship
• You want to learn about Lean Startup
• You want to learn how to apply Lean Startup to Corporation
• You want to learn how to apply Corporation to Lean Startup
• You want to learn how to apply Lean Startup to Startup
www.agilemanifesto.org
7. FIVE WHY?
what is different? what is the same?
learnings from Lean Startup are universal
... and we are applying unknown solution to unkonwn problem
• "Lean Startup" is an approach for launching businesses and products, that
relies on validated learning, scientific experimentation, and iterative product
releases to shorten product development cycles, measure progress, and gain
valuable customer feedback. In this way, companies, especially startups, can
design their products or services to meet the demands of their customer base
without requiring large amounts of initial funding or expensive product
launches
www.agilemanifesto.org
8. PROBLEM KNOWN, SOLUTION KNOWN ...
product development at Microsoft
unit of progress: advance to next stage
waterfall style
(c) steve blank
9. PROBLEM KNOWN, SOLUTION UNKNOWN ...
product development at typical venture startup
assumes customers and markets are undestood
agile style
(c) steve blank
10. PROBLEM UNKNOWN, SOLUTION UNKNOWN ...
product development at lean startup
assumes customers and markets are unknown
rapid hypothesis testing about market, pricing, customer, low cost, low burn, tight focus
(c) steve blank
Customer
Discovery
Customer
Validation
Customer
Creation
Scale
Company
data, feedback, insights
hypothesis, experiments, insights
customer
development
engineering
12. LEAN STARTUP principles
now, thare are some ground rules
„Startup success can be engineered by following the process,
which means it can be learned, which means it can be taught”
1. enterpreneurs are everywhere
2. enterpreneurship is management
3. validated learning
4. innovation accounting
5. build-measure-learn
http://theleanstartup.com/principles
13. LEAN STARTUP strategy
minimum viable product
looks like you are driving a car...
but in this case you need to crash as fast as possible.... will explain later
• VISION
• Start, Define, Learn, Experiment
• STEER
• Leap, Test, Measure, Pivot
• ACCELERATE
• Batch, Grow, Adapt, Innovate
http://theleanstartup.com/principles
16. VISION
remember: building a startup is an exercise in institution building
startup us a human institution designed to create a new
product or service under conditions of extreme uncertanity
• Start measure your productivity differently: no scope, no time, no budget
• Build – Measure – Learn: plans are driven by feedback loop mechanism
• Validated Learning: demonstrating progress nad finding validation
• Experiment Thesis:
• Value Hypotesis: test whether a product or service delivers value
• Growth Hypotesis: test how new customers will discover a product or
service
from: „The Lean Startup: How Today’s Enterpreneuship...”, by Steven Blank
PRODUCT
(optimize)
STRATEGY
(pivot)
VISION
(dont change)
18. Hypotesis Questions
we need to make sure that we are asking the right questions
an experiment is a product!
#
1. Do consumers recognize that they have the problem you are trying to solve?
2. If there was a solution, would they buy it?
3. Would they buy it from us?
4. Can we build a solution for that problem?
• Remember, instead of „Can this product be built”, think:
• Should this product be built?
• Can we build a sustainable business around this set of products and
services?
www.agilemanifesto.org
21. MVP
minimum viable product
get out, and get the feedback! validate the feedback!
#
• we are uncovering better ways of developing software by doing it and helping
others do it.
• individuals and interations over processes and tools
• working software over comprehensive documentation
• customer collaboration over contract negotiation
• responding to change over following a plan
More info on MVP... Type minimum viable product
24. INNOVATION ACCOUNTING
are we learning something yet? do we understand what is happening?
sorry guys, we need to have some numbers here...
beware: be very carefull what are you tracking and improving
• three steps:
1. use an MVP to establish real data where you are, mesure how the
customers behave RIGHT NOW
2. tune the engine, move from baseline, experiment on how we can
move metrics forward
3. pivot or preserve
www.leanstartup.com
27. Types of Pivot!
some basic ones that happen early in a product thinking
ALL TYPES OF PIVOT!
#
• ZOOM IN PIVOT: a single feature becomes the whole product
• ZOOM OUT PIVOT: the whole product becomes a single feature of a much
larger product
• CUSTOMER SEGMENT PIVOT: you ave real customers, but not the ones in
the original vision
• CUSTOMER NEED PIVOT: your product doesn’t really solve the problem.
Find a new need from customers.
www.leanstartup.com
28. Types of Pivot!
little bit advanced ones, that are coming from a structural changes
ALL TYPES OF PIVOT!
#
• PLATFORM PIVOT: change from an application to a platform or vice versa.
• BUSINESS ARCHITECTURE PIVOT: change from high margin, low volume to
a low margin, high volume or vice versa.
• VALUE CAPTURE PIVOT: change the revenue model.
• ENGINE OF GROWTH PIVOT: viral, sticky, paid growth models – change
• CHANNEL PIVOT: find a new sales channel, offer unique pricing, features
• TECHNOLOGY PIVOT: find a new technology to solve the problems
www.leanstartup.com
31. ONE NEED TO OPERATE DIFFERENTLY
how do we do a lean startup
is there „operations” thing at startup?
some things to note
• look at the batch size
• pull, don’t push
• overall look at the agile
practices and lean
management
www.leanstartup.com
build faster
continous deployment
small batches
minimum viable prducts
refactoring
measure faster
split testing, actionable matrics
learn faster
customer development
five whys
33. WHAT CORP CAN LEARN
from understanding a lean startup
get out, and get the feedback! validate the feedback!
#
• roots of Lean Startup are defined at Toyota (Lean Manufacturing), but...
• There is INTRAPRENEURS at every established organization
• Valid Learnings:
• Build – Measure – Learn, Validated Learning, Hypothesis Aproach
• Invalid Learnings:
• no scope, no time, no budget, Validated Learning
www.agilemanifesto.org
34. WHAT CORP CAN LEARN
from understanding a lean startup
get out, and get the feedback! validate the feedback!
winners are those who can move faster that their competitiors
• innovation is somewhere in your organization
• BUT R&D IS NOT YOUR ONLY SOURCE OF INNOVATION!
• agility requires a continuous cycle of interactions with the environment
• BUT YOU CAN’T DO IT FROM A DESK!
• iterating faster than competitors yields substantial advantage
• BUT YOU NEED TO CHANGE A BUILD MODEL!
www.agilemanifesto.org
35. FEW BOOKS TO READ...
they are small, but will change the view how you look at the startup business
not necessary in that order, but read them all ...
we are confusing CXO’s even if we can do a great job in a first place
www.agilemanifesto.org
37. more info ...
if you feel like you want to know more or just for fun
ratko.mutavdzic@projektura.org
dont bite, dont yell at you at all, so please, add me to your ... think network. tnx.
• WWW www.projektura.org
• FBOOK www.facebook.com/projektura
• TWEET www.twitter.com/projektura
• EMAIL info@projektura.org
• but if it is really, really, really urgent and you really need to connect to people at
projektura ...
• SKYPE projektura