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Sachidananda Benegal
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Review of highlights from Lean Startup
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Lean startup
1.
Lean Startup Eric Ries 2011 3/7/2015
1© Sachidananda
2.
About the Authors 3/7/2015
© Sachidananda 2 Eric Ries •A Silicon Valley Entrepreneur •Pioneer of the Lean Startup Movement •Born: 1978 •Graduate in Computer Science from Yale University •First Book: “Black Art of Java Game Programming” while still a high schooler! @ Yale: •Co-founder of Catalyst Recruiting •On advisory board of two startup incubators and a venture fund in New Haven, Connecticut. Post Yale: •Worked with a start up which failed until 2003 – There.com •2004 – started IMVU Inc •Influenced by Steve Black – “Customer Development” •Joined venture capital firm Kleiner Perkins as a venture advisor & then began independently advising new ventures Building on his experienced of both success and failure with high-tech startups, he began to develop a methodology based on select management principles to help startups succeed – based on the Japanese the Lean Src: http://en.wikipedia.org/wiki/Eric_Ries
3.
Author’s thesis 3/7/2015 ©
Sachidananda 3 Product Strategy Vision Strategy: Employed by the start up to achieve its vision & includes – business model, product road map, partners, competitors, who is a customer etc. Change in Strategy is a Pivot Product: Is the end result of the strategy Change in Product is Optimization Vision: The true north! The destination the start up intends to reach Entrepreneurs are committed to seeing what the start up to its destination Vision A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty 5 Principles of Lean Startup Method 1. Entrepreneurs are everywhere 2. Entrepreneurship is management 3. Validated Learning 4. Build-Measure-Learn 5. Innovation Accounting
4.
Author’s thesis 3/7/2015 ©
Sachidananda 4 Steer • Startup is a catalyst that transforms ideas into products • As customers interact with the products they generate feedback and data •Feedback Loop - Build Measure Learn 1. Identify the hypothesis to test – leap of faith assumptions 2. Build the MVP – version that enables a full turn of the BML loop 3. Measure: Is the product development effort leading to real progress – 1. Innovation Accounting 2. Learning Milestones 01 IDEA ! 02 HYPOTHESIS 03 EXPERIMENTAL DESIGN 04 EXPERIMENTATION 05 PIVOT OR PERSEVERE? 6.b PERSEVERE Experiment proves hypothesis 6.a PIVOT Experiments disprove hypothesis Pivot?
5.
Author’s thesis 3/7/2015 ©
Sachidananda 5 Accelerate Batch The power of small Batches -Equivalent of the andon card - Continuous deployment -Feedback on design decisions almost instantaneous -Large batches could initiate death spirals for the organization! - pull instead of push (learn-measure-build)! Growth New customers come from the action of past customers. Growth Through - word of mouth - aside effect of product usage - funded advertisement - repeat purchase or use 3 engines of growth 1. Sticky engine 2. Viral 3. PaidAdapt The 5 why approach 1. Be tolerant to all mistakes the first time 2. Never allow the same mistake to be made twice Innovate Structure - • Scarce but secure resources • Independent development authority • Personal stake in the outcome • Innovation sandbox • Internal teams accountable Watch out - • Protect from the parent organization • Rational fears • Hiding innovation inside the black box People Culture Process Accountability The Startup Way
6.
Build-Measure-Learn Loop 3/7/2015 ©
Sachidananda 6 Idea BUILD Product MEASURE Data LEARN Minimize TOTAL time through the loop Build Faster Unit Tests Usability Tests Continuous Integration Incremental Deployment Free & Open-Source Cloud Computing Cluster Immune System Just-in-time Scalability Refactoring Developer Sandbox Minimum Viable Product Measure Faster Funnel Analysis Cohort Analysis Net Promoter Score Search Engine Marketing Predictive Monitoring Measure Faster Split Tests Continuous Deployment Usability Tests Real-time Monitoring & Alerting Customer Liaison Learn Faster Split Tests Customer Development Five Whys Customer Advisory Board Falsifiable Hypotheses Product Owner Accountability Customer Archetypes Cross-functional Teams Semi-autonomous Teams Smoke Tests Experiment is a cycle around the validated learning loop Steer
7.
A Catalog of
Pivots 3/7/2015 © Sachidananda 7 Pivot is a special kind of change designed to test a new fundamental hypothesis about the product, business model and engine of growth Zoom-in Pivot Zoom-out Pivot Customer Segment Pivot Customer Need Pivot Platform Pivot Business Architecture Pivot Value Capture Pivot Engine of Growth Pivot Channel Pivot Technology Pivot
8.
QUESTIONSTHANK YOU 3/7/2015 8©
Sachidananda
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