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Ash Maurya, Beyond MVP - Scaling Lean, BoS USA 2016

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Ash Mauray of LeanStack at BoS USA 2016.

See all talks here: http://businessofsoftware.org/2016/07/all-talks-from-business-of-software-conferences-in-one-place-saas-software-talks/

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Ash Maurya, Beyond MVP - Scaling Lean, BoS USA 2016

  1. 1. Hashtag: #leanstack ASH MAURYA @ashmaurya ash@leanstack.com BEYOND MVP: SCALING LEAN
  2. 2. All my ideas started out as awesome ideas.
  3. 3. Not all them became awesome products.
  4. 4. Good ideas are rare and hard to find.
  5. 5. So I was ready for the search process.
  6. 6. But what really bothered me was my cycle time between ideas.
  7. 7. 18-24 months between ideas.
  8. 8. Life’s Too Short to Build Something Nobody Wants.
  9. 9. BACKWARDS
  10. 10. Show me traction
  11. 11. How does this solve my problem?
  12. 12. #1reason why new products fail
  13. 13. We waste needless time, money, and effort building the wrong product.
  14. 14. Solution Awesome ` ? ? The Innovator Bias
  15. 15. Your business model, NOT your solution, is THE product. 1st MINDSHIFT
  16. 16. http://RunningLean.co 575+ 5-Star reviews
  17. 17. 01 Document your Plan A META-PRINCIPLES 02 Identify the riskiest parts of your plan 03 Systematically test your plan
  18. 18. Document your Plan A
  19. 19. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Key Metrics Key activities you measure Channels Path to customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License. PRODUCT MARKET
  20. 20. Identify the riskiest parts of your plan Document your Plan A
  21. 21. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A
  22. 22. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A Business Model Development Process
  23. 23. CASE-STUDY
  24. 24. WHATis the riskiest assumption?
  25. 25. ROADSTER
  26. 26. WHY did they use the Lotus Esprit versus another car model?
  27. 27. Scale your idea in stages. 2nd MINDSHIFT
  28. 28. Whyanother book?
  29. 29. Identifying what’s riskiest is quite hard.1
  30. 30. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A
  31. 31. Reporting on your learning is not enough.2
  32. 32. Validated learning The Dichotomy of the Progress Story
  33. 33. Validated learning The Dichotomy of the Progress Story Whatever demonstrates growth
  34. 34. Drowning in a sea of numbers.3
  35. 35. What you wanted WTF? The reality
  36. 36. 01 Defining Progress OUTLINE 02 Prioritizing Waste 03 Achieving Breakthrough
  37. 37. Whatdo both investors and entrepreneurs want?
  38. 38. The hockey-stick curve
  39. 39. TRACTION matters above everything else Yay!
  40. 40. Traction can be gamed
  41. 41. Traction can be gamed Same data plotted differently
  42. 42. What is TRACTION exactly?
  43. 43. A business model describes how you create, deliver, and capture value. -Saul Kaplan
  44. 44. The hockey-stick curve Track Customer behavior
  45. 45. Create Value Capture Value Cost (Deliver Value)
  46. 46. Create Value Capture Value Cost (Deliver Value)>1 VALUE EQUATION
  47. 47. Create Value Capture Value Cost (Deliver Value)>1 VALUE EQUATION >=2 MONETIZATION EQUATION
  48. 48. Create Value Capture Value Cost (Deliver Value)> >=
  49. 49. TRACTION The rate at which a business model captures monetizable value from its customers.
  50. 50. Saas Freemium Trial E-commerce Ad-based Marketplace Big Data User Generated Content Retail Media Community Membership site Platform Open Source Enterprise Non-profit Social 3 business model archetypes
  51. 51. DIRECT MULTI-SIDED MARKETPLACE $
  52. 52. DIRECT
  53. 53. Unaware visitors Happy customers Direct models
  54. 54. Unaware visitors Happy customers Direct models
  55. 55. TRACTION IN A DIRECT MODEL: The rate at which you create customers.
  56. 56. What customer behaviors lead to traction?
  57. 57. Unaware visitors Happy customers Direct models Time spent in store correlated with money spent
  58. 58. MULTI-SIDED
  59. 59. Unaware visitors Happy users Multi-sided models
  60. 60. Unaware visitors Happy users Multi-sided models Derivative asset
  61. 61. Unaware visitors Happy users Multi-sided models Happy customers Derivative asset
  62. 62. Unaware visitors Happy users Multi-sided models Happy customers Derivative asset Advertisers
  63. 63. TRACTION IN A MULTISIDED MODEL: Derivative asset to revenue exchange rate
  64. 64. MARKETPLACE $
  65. 65. Marketplaces
  66. 66. Happy buyer Happy seller Marketplaces
  67. 67. Happy buyer Happy seller $ Marketplaces Transaction
  68. 68. Unaware buyers Happy buyer Unaware sellers Happy seller $Transaction Marketplaces
  69. 69. TRACTION IN A MARKETPLACE MODEL: The rate of transactions.
  70. 70. Waste is any activity that consumes resources but adds no value.
  71. 71. Taiichi Ohno’s chalk circles.
  72. 72. Waste is everywhere.
  73. 73. RIGHT ACTION, RIGHT TIME There are only a few key actions that matter. Focus on those and ignore the rest.
  74. 74. Theory of Constraints: Every business is a system of interconnected processes with a single constraint.
  75. 75. Addressing the weakest link is the only thing the matters.
  76. 76. Addressing the weakest link is the only thing the matters. premature optimization premature optimization
  77. 77. Be wary of local optimization.
  78. 78. You can’t predict the next bottleneck.
  79. 79. Before you can prioritize waste, you have to be able to see the factory floor.
  80. 80. Unaware visitors Happy customers
  81. 81. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Unaware visitor Passionate Happy Customer Pirate Metrics
  82. 82. More Visual
  83. 83. Systems Thinking
  84. 84. Indicates interest through teaser page Ongoing engagement with sessions and tool Interview and then start trial Organic Channels Blog, twitter, workshops Ask for referrals to like-minded companies Monthly SaaS payment after first 30 days
  85. 85. Exposes the constraint which prioritizes focus
  86. 86. Strategy: Qualify leads
  87. 87. Focus on a single key metric. NEEDS REVISION
  88. 88. Focus on a single key metric, but always monitor the entire customer factory. REVISED
  89. 89. One final takeaway…
  90. 90. You can’t brute force a solution…
  91. 91. Starting with a solution is like building a key without a door.
  92. 92. Love the problem, not your solution. 3rd MINDSHIFT
  93. 93. ASH MAURYA @ashmaurya ash@leanstack.com Get more content here: LeanStack.com

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