Lean Startup ideas, trends, and best practices through the lens of my experience in four industries, three startups, and two continents.
Lean Startup methodologies are applicable to both small and large organisation focused on creating new products and services under conditions of extreme uncertainty.
32. • Educate patients
• Help make the right decision
• Improve eye-care
• Better eye health
• Increase market share
• Improve capture rate
• Increase revenue per customer
34. WHY AND HOW
• Tablet or TV? Why?
• Education or advertising? Or both? How?
• Before or after the eye exam? Why?
• Self-service or someone will help? Who? Why?
• Should we sell it or give it away? Why? How?
36. Problem (1)
Solution (4)
Unique Value Proposition (3) Unfair Advantage (5) Customer Segment (2)
Can’t be easily copied
or bought
Top 3 features
Top 3 problems
Key Metrics (8)
Key activities you
measure
Single, clear, compelling
message that states why you
are different and worth
buying
Channels (9)
Path to customers
Cost Structure (7)
Revenue (6)
Customer Acquisition Costs
Distributing Costs
Hosting
People, etc.
Revenue Model
Lifetime Value
Revenue
Gross Margin
Target customers
37. Problem (1)
Solution (4)
Unique Value Proposition (3) Unfair Advantage (5) Customer Segment (2)
Tablet + videos
Customers are unaware
of the key benefits of
premium lenses
Opticians do a poor job
explaining them
Key Metrics (8)
Learn all you need to know
about your eyes and the
lenses you need. Make the
right choice. Take care of your
eyes’ health.
Capture rate
Revenue per customer
Share of ECP sales
We sell the most
premium lenses on
the market
Channels (9)
Eyeglass wearers
Path to customers
Cost Structure (7)
Revenue (6)
Tablets, videos, software, distribution
Increased purchases in ECP channel
38. TOOLS TO HELP YOU
• Research
• Surveys
• Interviews – ask for commitment
• Focus groups
• Test market
• [Genchi Genbutsu] – “go and see for yourself”
• EXPERIMENT
40. "go and see for yourself"
現地現物 [Genchi Genbutsu]
“the real place”
“the crime scene”
現場 [Gemba]
A key principle of the Toyota Production System
41. “Design an EXPERIMENT that
attempts to answer the question!”
Eric Ries
Create series of FAST and CHEAP
micro-experiments that lead you to
VALIDATED LEARING!
49. THE LEAN STARTUP APPROACH
1. FAST and Cheap
2. MULTIPLE full iteration cycles
3. Gives you MULTIPLE opportunities to LEARN/VALIDATE
your thinking
4. Gives you MULTIPLE attempts to SUCCEED/FAIL
5. Gives you MULTIPLE opportunities to PIVOT
53. “Any additional work beyond what was required to
start learning is waste, no matter how important it
might have seemed at the time.”
The Dropbox MVP
54. “The first version of Gmail was literally written in a day.” –
Paul Buchheit (creator and lead developer of Gmail)
“Entrepreneurship in a lean startup is really a series of
MVP’s” – Eric Ries
“If Apple can launch a smartphone without Find or Cutand-Paste, what can you cut out of your product
requirements?” – Sramana Mitra
58. VALIDATED ASSUMPTIONS/HYPOTHESIS
• Customers are willing to spend time to learn
more about eyeglass lenses
• Explaining the benefits of high quality lenses
changes customers buying decision (upsell)
63. KEY LEARNING
• Build multiple MVPs
• Don’t spend months waiting for a nice product
and then change the company's direction
• Adapt your plan incrementally, inch by inch,
minute by minute
• Genchi Genbutsu - "go and see for yourself"
64. WHAT DO I VALIDATE?
Test the founders hypothesis about:
1. Customer problem
2. Product concept
3. If the minimum feature set solve that problem
What if I fail to validate the hypothesis?
66. PIVOT
“Structured course correction designed to test a new fundamental
hypothesis about the product, strategy, and engine of growth”
Eric Ries
The direction of your PIVOT
depends on your vision!
67. PIVOT EXAMPLE 1
WAS: “The Point” began as a platform for mobilizing
groups of people towards action for various causes
PIVOTED TO: only one group action - group buying
68. PIVOT EXAMPLE 2
WAS: blended elements of Foursquare and Mafia Wars in
a mobile app
PIVOTED TO: remove everything except the photosharing feature, thus renamed to “Instagram”
69. PIVOT EXAMPLE 3
WAS: “application that will allow individuals to "beam" sums of
money between handheld devices such as mobile phones, Palm
Pilots, and pagers” 07.27.99
PIVOTED TO: online payments
70. PIVOT EXAMPLE 4
WAS: Cloud-based IDE for desktop development
THEN: Cloud-based IDE for Mobile development
THEN: Cloud services for hybrid mobile developers
NOW: Cloud platform for Mobile development
73. ASSUMPTIONS
1. List all assumptions
2. Create MVP(s) to VALIDATE all assumptions
3. BUILD-MEASURE-LEARN
4. List all new assumption
5. Create MVP(s) to VALIDATE all new assumptions
6. BUILD-MEASURE-LEARN
…rinse and repeat