Post on 31-Dec-2018
iterative product development
Sean Ammirati @SeanAmmirati
Partner, Birchmere Ventures
Adjunct Professor, Carnegie Mellon University
THE LEAN STARTUP
Most Startups FAILThe Reason
NO ONE WANTSwhat they’ve built.
IS BECAUSE...
WHY IS THIS IMPORTANT?
Dec 2006
Conviction to build FeedHub
Aug 2007
Private Beta of FeedHub
Launch FeedHub @ Demo 2007
Sept 2007
10 MONTHS “STEALTH MODE”
Dec 2006
Conviction to build FeedHub
Aug 2007
Private Beta of FeedHub
Launch FeedHub @ Demo 2007
Sept 2007
10 MONTHS “STEALTH MODE”
Wasted Time
“Launch early enough to be embarrassed by your product’s first version”
~ Reid HoffmanCo-Founder & Chairman LinkedIn
“I should let you know, we're not done. It's early days and some things could change to the API before we release it.”
~ Timothy JordanGoogle
#ifihadglass
https://www.youtube.com/watch?v=TOkvE9g48bM
Known Problem
Known Solution
WaterfallDevelopment
Requirements
Design
Implementation
Verification
Maintenance
Known Problem
Unknown Solution
AgileDevelopment
Requirements
Design
Implementation
Product BacklogSprint Backlog
ReleasedCode
Unknown Problem
Unknown Solution
LeanStartup
CustomerDiscovery
CustomerValidation
Product BacklogSprint Backlog
ReleasedCode
CustomerCreation
Company Building
Known Solution
Lean Startup
AgileDevelopment
Waterfall Development
Kanban
Unknown SolutionKn
own
Prob
lem
Unk
now
n Pr
oble
m
1. Customer Discovery
A product solves a problem for an identifiable group of users
2. Customer Validation
The market is saleable & large enough that a viable
business might be built
3. Customer Creation
The business is scalable through a repeatable sales and
marketing roadmap
4. Company Building
Company departmentaland operational processes
are created to scale
THE CUSTOMER DEVELOPMENT MODEL
BUILD
MEASURE
LEARN
IDEAS
CODE DATA
Minimally Viable Product
BUILD
MEASURE
LEARN
IDEAS
CODE DATA
Minimally Viable
Awesome Product
Adapted From : The Entrepreneur's Guide to Customer Development
MAP #1PPC CampaignLanding Page
MAP #2Product Drawings
Detailed Spec
MAP #3Prototype
Functional Output
Features / Benefitsdescription‘More info’
Call to Action
Face-to-facetechnology demo
Field Pilot
Market insightFind early adopters
Locate Strategicpartners
Seed FundingPaid-beta customers
RevenueCustomer ValidationCapital Investment
Customer Interaction
Objective
MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit
Investment $ $$ $$$
~ $50k
~ $100k
~ $200k
concepts
scale
spin out
~$200k target first investment
plus additional reserves
All Community Driven Commerce Focused & Shared Overhead
STUDIO SEED
+
CONCEPTS ~ $1k
“NON-SOFTWARE”EXAMPLEInnovation Happens
GOALS FOR INNOVATION HAPPENS
1. Provide networking events connecting entrepreneurs & large corporations
2. Encourage entrepreneurs to focus more on getting customers
3. Create a culture of “buying local” in Pittsburgh
APPLICATIONEXERCISEWhat is your MAP?
• Minimally Awesome Product
• Customer Interaction
• Objective
A: SCRUM
Great but ... How do you project time for
each cycle?
Scrum
Engineering Practices
This will be unique for each of you based on your team, type of solution
being developed and personalpreferences.
Could be: XP, Feature Driven Development, Crystal, Kanban or any other process your engineering team
is comfortable with.
(often pull aspects from each)
http://www.youtube.com/watch?v=XU0llRltyFM
Scrum Process
Source: http://www.krishnabitla.com/post/2011/02/02/scrum-‐process-‐sprint-‐agile-‐software-‐methodology.aspx
• Important for everyone to buy into the vocabulary
• One person should set priority of Product Backlog (product owner) but everyone can see it
• Same person should also be “administrator”
• Be serious about your time box / sprint
• Measure velocity and “own it”
Tips / Tricks:
COMMUNICATION IS KEY
FOR FUNDING
2004
2006
2010450+
Key Partnerships
Cost Structure
RevenueStreams
Key Activities
Key Resources
ValueProposition
CustomerRelationships
Channels
CustomerSegments
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VALIDATE HYPOTHESIS ...
Key Partnerships
Niche Content
Cost Structure
RevenueStreams
Key Activities
Key Resources
ValueProposition
CustomerRelationships
CustomerSegments
Niche Customers
Channels
Key Partnerships
Cost Structure
Revenue Free
Streams Paid
Key Activities
Key Resources
ValueProposition
Basic Usage
Premium Usage
CustomerRelationships
CustomerSegments
Casual
High Volume
Channels
PHOTO CREDITS
Slide 6: http://www.flickr.com/photos/nasa_goddard/8434074140/
Slide 8: http://www.flickr.com/photos/data70/4748860721/
Slide10: http://www.flickr.com/photos/joi/1431818434/
Slide 38: http://www.flickr.com/photos/yodelanecdotal/3329778720/