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Building a Virtual World: Lean Startup Style<br />#leanstartup<br />Eric Ries (@ericries)<br />http://StartupLessonsLearne...
In Memoriam<br />
Entrepreneurship = Awesome<br />It is the best time in the history of the world to be an entrepreneur<br />Costs are falli...
Why build a startup?<br />Only entrepreneurship combines these three elements<br />Change the world<br />Build an organiza...
Most Startups Fail<br />
Most Startups Fail<br />
Most Startups Fail<br />
Most Startups Fail<br />But it doesn’t have to be that way. <br />We can do better. <br />This talk is about how.<br />
What is a startup?<br />A startup is a human institution designed to deliver a new product or service under conditions of ...
Entrepreneurship is management<br />Our goal is to create an institution, not just a product<br />Traditional management p...
The Pivot<br />What do successful startups have in common?<br />They started out as digital cash for PDAs, but evolved int...
Speed Wins<br />if we can reduce the time between major iterations<br />we can increase our odds of success<br />
A Tale of Two Startups<br />
Startup #1<br />
Stealth Startup Circa 2001<br />
All about the team<br />
A good plan?<br />Start a company with a compelling long-term vision. <br />Raise plenty of capital.<br />Hire the absolut...
Achieving Failure<br />Company failed <br />$40MM and five years of pain<br />Crippled by “shadow beliefs” that destroyed ...
Shadow Belief #1<br />We know what customers want. <br />
Shadow Belief #2<br />We can accurately predict the future. <br />
Shadow Belief #3<br />Advancing the plan is progress. <br />
A good plan?<br />Start a company with a compelling long-term vision. <br />Raise plenty of capital.<br />Hire the absolut...
Startup #2<br />
IMVU<br /> <br />
IMVU<br /> <br />
New plan<br />Shipped in six months – a horribly buggy beta product<br />Charged from day one<br />Shipped multiple times ...
Making Progress<br />In a lean transformation, question #1 is – which activities are value-creating and which are waste?<b...
Traditional Product Development<br />Unit of Progress: Advance to Next Stage<br />Waterfall<br />Requirements<br />Specifi...
Agile Product Development<br />Unit of Progress: A line of Working Code<br />“Product Owner” or in-house customer<br />Pro...
Product Development at Lean Startup<br />Unit of Progress: Validated Learning About Customers ($$$)<br />Customer Developm...
Minimize TOTAL time through the loop<br />IDEAS<br />LEARN<br />BUILD<br />DATA<br />CODE<br />MEASURE<br />
How to build a Lean Startup<br />Let’s talk about some specifics. <br />Minimum viable product<br />Five why’s <br />
Minimum Viable Product<br />IDEAS<br />LEARN<br />BUILD<br />Learn Faster<br />Customer Development<br />Five Whys<br />Bu...
Why do we build products?<br />Delight customers<br />Get lots of them signed up<br />Make a lot of money<br />Realize a b...
Possible Approaches<br />“Maximize chances of success”<br />build a great product with enough features that increase the o...
Minimum Viable Product<br />The minimum set of features needed to learn from earlyvangelists – visionary early adopters<br...
Minimum Viable Product<br />Visionary customers can “fill in the gaps” on missing features, if the product solves a real p...
Techniques<br />Smoke testing with landing pages, AdWords<br />SEM on five dollars a day<br />In-product split testing<br ...
Fears<br />False negative: “customers would have liked the full product, but the MVP sucks, so we abandoned the vision”<br...
Five Whys<br />IDEAS<br />Code Faster<br />Learn Faster<br />BUILD<br />LEARN<br />Continuous<br />Deployment<br />Five Wh...
Five Whys Root Cause Analysis<br /><ul><li>A technique for continuous improvement of company process.
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.</li></li></ul><li...
Get Started Today<br />You are ready to do this, no matter <br />who you are<br />what job you have<br />what stage of com...
Thanks!<br /><ul><li>Startup Lessons Learned Blog
http://StartupLessonsLearned.com/
In print: http://bit.ly/SLLbookbeta
Getting in touch (#leanstartup)
http://twitter.com/ericries
eric@theleanstartup.com
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Make proportional investments in prevention 2010 03 09 the lean startup - gdc

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Make proportional investments in prevention at all five levels of the hierarchy.

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