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Lean Experimentation Toolkit: A Resource for Innovators

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Intuit's founder Scott Cook spoke with TIME magazine’s Harry McCracken at the Startup Grind conference and shared what he has learned as an entrepreneur since founding the company more than 30 years ago. Cook also revealed some of the entrepreneurial tools created at Intuit, inspired by the work of Eric Ries, to help small teams use lean experimentation to create awesome products.

Organizations of any size can benefit by using them to find and solve important problems, from a solo entrepreneur, to a fledgling startup, to a small team in a large company.

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Lean Experimentation Toolkit: A Resource for Innovators

  1. 1. …that we, and those we enable, can solve well… Find an important, unsolved customer problem …and build durable competitive advantage Presentation ©2014 Intuit Inc. All slides are reusable under Creative Commons Attribution Share-Alike 4.0. 1
  2. 2. The Portable Digital Music World Circa 2000 “The products stank,” Greg Joswiak, Apple's vice president of iPod product marketing, told Newsweek. Digital music players were either big and clunky or small and useless. Most were based on fairly small memory chips, either 32 or 64 MB, which stored only a few dozen songs -- not much better than a cheap portable CD player. But a couple of the players were based on a new 2.5-inch hard drive from Fujitsu. The most popular was the Nomad Jukebox from Singapore-based Creative. About the size of a portable CD player but twice as heavy, the Nomad Jukebox showed the promise of storing thousands of songs on a (smallish) device. But it had some horrible flaws: It used Universal Serial Bus to transfer songs from the computer, which was painfully slow. The interface was an engineer special (unbelievably awful) and it often sucked batteries dry in just 45 minutes. Apple's team knew it could solve most of the problems plagued by the Nomad. Its FireWire connector could quickly transfer songs from the computer to player -- an entire CD in a few seconds; a huge library of MP3s in minutes. 2
  3. 3. Product Vision PRODUCT WHO has the biggest pain? Be specific and narrow. WHO are you NOT designing for? What is her BIGGEST PAIN POINT or OPPORTUNITY you are focused on? What is the INSIGHT that leads you to focus here? What is the INSIGHT that MAKES YOU BELIEVE you can solve the problem? Is there a potential NETWORK EFFECT? If yes, use the Network Effect Framework template to identify both groups and the benefits for each. Presentation ©2014 Intuit Inc. All slides are reusable under Creative Commons Attribution Share-Alike 4.0. 3
  4. 4. Lean Experiments Loop Minimize TOTAL time through the loop •  Compare metrics to hypotheses •  Write down the Leap of Faith Assumptions •  Get to root cause •  Select metric and test method •  Savor the surprises •  Declare the numeric hypothesis you expect to achieve •  Design it to be fast and frugal •  Collect behavioral data Presentation ©2014 Intuit Inc. All slides are reusable under Creative Commons Attribution Share-Alike 4.0. Inspired by the teachings of Eric Ries 4
  5. 5. Presentation ©2014 Intuit Inc. All slides are reusable under Creative Commons Attribution Share-Alike 4.0. 5
  6. 6. Change lives so profoundly people can’t imagine going back to the old way. To download these tools: bit.ly/intuitstartupgrind Presentation ©2014 Intuit Inc. All slides are reusable under Creative Commons Attribution Share-Alike 4.0. 6

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