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The Lean Startup: ,[object Object],A disciplined approach to Imagining, Designing, and Building New Products,[object Object],Workshop Edition,[object Object],Eric Ries,[object Object],http://StartupLessonsLearned.com,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object],But it doesn’t have to be that way. ,[object Object],We can do better. ,[object Object],This talk is about how.,[object Object]
What is a startup?,[object Object],A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. ,[object Object],Nothing to do with size of company, sector of the economy, or industry,[object Object]
The Pivot,[object Object],What do successful startups have in common?,[object Object],They started out as digital cash for PDAs, but evolved into online payments for eBay. ,[object Object],They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly. ,[object Object],They were shocked to discover their online games company was actually a photo-sharing site.,[object Object],Pivot: change directions but stay grounded in what we’ve learned. ,[object Object],http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html,[object Object]
Speed Wins,[object Object],if we can reduce the time between major iterations,[object Object],we can increase our odds of success,[object Object]
A Tale of Two Startups,[object Object]
Startup #1,[object Object]
Stealth Startup Circa 2001,[object Object]
All about the team,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Achieving Failure,[object Object],Company failed utterly, $40MM and five years of pain.,[object Object],Crippled by “shadow beliefs” that destroyed the effort of all those smart people.,[object Object]
Shadow Belief #1,[object Object],We know what customers want. ,[object Object]
Shadow Belief #2,[object Object],We can accurately predict the future. ,[object Object]
Shadow Belief #3,[object Object],Advancing the plan is progress. ,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Startup #2,[object Object]
IMVU,[object Object], ,[object Object]
IMVU,[object Object], ,[object Object]
New plan,[object Object],Shipped in six months – a horribly buggy beta product,[object Object],Charged from day one,[object Object],Shipped multiple times a day (by 2008, on average 50 times a day),[object Object],No PR, no launch,[object Object],Results 2009: profitable, revenue > $20MM,[object Object]
Lean Startups Go Faster,[object Object],Commodity technology stack, highly leveraged (free/open source, user-generated content, SEM).,[object Object],Customer development – find out what customers want before you build it. ,[object Object],Agile (lean) product development – but tuned to the startup condition. ,[object Object]
Customer Development,[object Object],[object Object]
Rapid hypothesis testing about market, pricing, customers, …
Extreme low cost, low burn, tight focus
Measurable gates for investorshttp://bit.ly/FourSteps,[object Object]
Agile Product Development(A tale of two startups, revisited),[object Object],[object Object]
These examples are drawn from software startups, but increasingly:
All products require software
All companies are operating in a startup-like environment of extreme uncertainty,[object Object]
Agile Product Development,[object Object],Unit of Progress: A line of Working Code,[object Object],“Product Owner” or in-house customer,[object Object],Problem: known,[object Object],Solution: unknown,[object Object]
Product Development at Lean Startup,[object Object],Unit of Progress: Validated Learning About Customers ($$$),[object Object],Customer Development,[object Object],Hypotheses,,[object Object],Experiments,,[object Object],Insights,[object Object],Problem: unknown,[object Object],Data,,[object Object],Feedback,,[object Object],Insights,[object Object],Solution: unknown,[object Object]
Minimize TOTAL time through the loop,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object]
There’s much more…,[object Object],IDEAS,[object Object],Code Faster,[object Object],Learn Faster,[object Object],BUILD,[object Object],LEARN,[object Object],Unit Tests,[object Object],Usability Tests,[object Object],Continuous Integration,[object Object],Incremental Deployment,[object Object],Free & Open-Source Components,[object Object],Cloud Computing,[object Object],Cluster Immune System,[object Object],Just-in-time Scalability,[object Object],Refactoring,[object Object],Developer Sandbox,[object Object],Minimum Viable Product,[object Object],Split Tests,[object Object],Customer Interviews,[object Object],Customer Development,[object Object],Five Whys Root Cause Analysis,[object Object],Customer Advisory Board,[object Object],Falsifiable Hypotheses,[object Object],Product Owner Accountability,[object Object],Customer Archetypes,[object Object],Cross-functional Teams,[object Object],Semi-autonomous Teams,[object Object],Smoke Tests,[object Object],CODE,[object Object],DATA,[object Object],Measure Faster,[object Object],MEASURE,[object Object],Split Tests,[object Object],Clear Product Owner,[object Object],Continuous Deployment,[object Object],Usability Tests,[object Object],Real-time Monitoring,[object Object],Customer Liaison,[object Object],Funnel Analysis,[object Object],Cohort Analysis,[object Object],Net Promoter Score,[object Object],Search Engine Marketing,[object Object],Real-Time Alerting,[object Object],Predictive Monitoring,[object Object]
There’s much more…,[object Object],Startup Lessons Learned  ,[object Object],(season one 2008-2009),[object Object],Every essay from the blog’s first year,[object Object],http://bit.ly/SLLbookbeta,[object Object]
Thanks!,[object Object],[object Object]
http://StartupLessonsLearned.com/
Getting in touch (#leanstartup)
http://twitter.com/ericries
eric@theleanstartup.com
Startup Lessons Learned – in print
Beta version available today
http://bit.ly/SLLbookbeta,[object Object]
How to build a Lean Startup,[object Object],Let’s talk about some specifics. ,[object Object],Rapid Split-tests,[object Object],Five Why’s ,[object Object],Continuous Deployment,[object Object],Minimum Viable Product,[object Object]
Rapid Split Tests,[object Object],IDEAS,[object Object],Code Faster,[object Object],Learn Faster,[object Object],BUILD,[object Object],LEARN,[object Object],Continuous,[object Object],Deployment,[object Object],Five Whys Root,[object Object],Cause Analysis,[object Object],CODE,[object Object],DATA,[object Object],Measure Faster,[object Object],MEASURE,[object Object],Rapid Split Tests,[object Object]
Split-testing all the time,[object Object],A/B testing is key to validating your hypotheses,[object Object],Has to be simple enough for everyone to use and understand it,[object Object],Make creating a split-test no more than one line of code:,[object Object],if( setup_experiment(...) == "control" ) {,[object Object],    // do it the old way,[object Object],} else {,[object Object],   // do it the new way,[object Object],},[object Object]
The AAA’s of Metrics,[object Object],Actionable,[object Object],Accessible,[object Object],Auditable,[object Object]
Measure the Macro,[object Object],Always look at cohort-based metrics over time,[object Object],Split-test the small, measure the large,[object Object]
Five Whys,[object Object],IDEAS,[object Object],Code Faster,[object Object],Learn Faster,[object Object],BUILD,[object Object],LEARN,[object Object],Continuous,[object Object],Deployment,[object Object],Five Whys Root,[object Object],Cause Analysis,[object Object],CODE,[object Object],DATA,[object Object],Measure Faster,[object Object],MEASURE,[object Object],Rapid Split Tests,[object Object]
Five Whys Root Cause Analysis,[object Object],[object Object]
Ask “why” five times when something unexpected happens.
Make proportional investments in prevention at all five levels of the hierarchy.
Behind every supposed technical problem is usually a human problem. Fix the cause, not just the symptom.,[object Object]
Continuous Deployment,[object Object],[object Object]
At IMVU time from check-in to production = 20 minutes
Tell a good change from a bad change (quickly)
Revert a bad change quickly
And “shut down the line”

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2009 11 16 Web 2.0 Expo New York Workshop