FI Presentation on Lean Startup by Carl Danneels Plethon Feb24 2015

Lean Startup Intro

Carl Danneels

Pick & Choose – StoryMe, Gent

VOKA Bryo – April 25th 2015

• Chair of Lean Startup Circle BXL (700 members) & Lean Startup Flanders (100 members)

• Mentor of Bryo (Voka) • Mentor of the Founder Institute• Former Board Member of the Agile

Consortium Belgium & PMI Belgium• Scrum Master; PMP and Prince 2 certified• Vice Project Manager of the Year in the

Belux

A bit about me

Voka Bryo Pick & Choose – April 25th – Lean Startup

• "Lean Startup" is a method for developing businesses and products first proposed in 2011 by Eric Ries.

• Based on his previous experience working in several US startups, Ries claims that startups can shorten their product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and what he calls validated learning.


Lean Startup

• The “Business Model Canvas” is a strategic management template initially proposed by Alexander Osterwalder. in 2008.

• The BMC is used for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers and finances. It also assists firms in aligning their activities by illustrating potential trade-offs.

Business Model Canvas

Ash Maurya

« Life is too short to build something nobody wants »

« Running Lean, Second Edition (O’Reilly). Copyright 2012 Ash Maurya, 978-1-449-30517-8 »

Running Lean

• Startups: risky business !• The Business Model/Lean Canvas• «Fail Fast, Fail Quickly, Fail Often»• Example

What we will talk about


Startup success rate = 10%


http://www.youtube.com/watch?v=1hTI4z2ijc4

Business Model

The Business Model


The Process


Systematically Test Your Plan

MVP



Step Out of the Building & Learn …

3 Stages of a Product


RealTime WorldsDave Jones made a virtue of having no business model for APB. He said “if a game is built around a business model, that’s a recipe for failure.” Big mistake.


Business Model Canvas (Osterwalder)

Alexander Osterwalder


What is YOUR main challenge ?

The Lean Canvas (Maurya)


Dinnr“There never was a need for a service like ours in the UK in the segment that we picked (urban professionals, couples without kids or with one baby max). And I deluded myself in thinking that there was, because I was eager to start my own thing and thought that this was something that I myself would use.”

Patient CommunicatorI realized that many of the true money-making businesses in healthcare really aren’t about optimizing delivery of primary care. This is a longer discussion but I realized, essentially, that we had no customers because no one was really interested in the model we were pitching. Doctors want more patients, not an efficient office.

PumodoOur biggest self-realization was that we were not users of our own product. We didn’t obsess over it and we didn’t love it. We loved the idea of it. That hurt.

EverpixThey failed to effectively position themselves against giants like Apple and Google, who offer fairly robust — and mostly free — Everpix alternatives.

Travelllll.comIf your monetisation strategy is advertising, you need to be marketing to an enormous audience. It’s possible to make a little money from a lot of people, or a lot of money from a few people. Making a little money from a few people

doesn’t add up. If you’re not selling something, you better have a LOT of eyeballs. We didn’t.

Shnergle Does your idea only monetise at scale? If your idea can only be monetised at scale, head to San Francisco / Silicon Valley. There isn’t enough risk capital, or enough risk appetite, in the UK/EU venture market to pour capital into unproven R&D concepts.

TutorspreeAlthough we achieved a lot ,we failed. We didn’t scale because we were single channel dependent and that channel shifted on us radically and suddenly. SEO was baked into our model from the start.

SerendipThe high costs of processing millions of posts every day and serving relevant and engaging playlists to our users … are really bigger than we can handle, a very challenging position for a small startup.

The Uncommon Life Numbers are not only the oxygen of a business, they are the vital signs as well. I was almost entirely focused on doing what I enjoyed … If I had done a better job keeping track of my monetary flow and following up on accounts receivable, I probably could have avoided my company's ultimate demise.

Personal Costs“How many hours are you going to stay away from your kids, girlfriends, family and friends? How many relationships will break down in the process? What are you willing to sacrifice in the face of success?”

Personal Revenue

“How many of us are into the business building for the money alone? I know that I want many other things. Success, acknowledgment, thrill, excitement, a sense of fulfillment, the ability to help people and many other things. Some of these are more powerful than the monetary gains a business will bring and they will sustain me on my difficult ‘trip’.”Smart Bear

Don’t despair if you don’t have an unfair advantage yet. I didn’t either when I started Smart Bear! Unfair Advantage requires unwavering devotion to the One Thing that is (a) hard, and (b) you refuse to lose, no matter what.

10X Product Launch



Different time dimensions


Validation Board

« PIRATE METRICS » INSTEAD OF « VANITY » METRICS !

Source: Dave McClure

Innovation Accounting


Metrics Dashboard

CASE STUDY

Sustainable Apartments

Upcycled Furniture

1st Upcycled Canvas

Segmented Upcycled Canvas

Segmented Upcycled Canvas

Self-Catering « Arty » City Trippers –Tier 1 & Tier 2

Self-Catering Nature-loving Fortnighters

First Upcycled Canvas

Self-Catering & « Arty » Tier 1/2 City Trippers

There are insufficientself-catering city apartmentswith character.

Self-Catering Nature-lovingFortnighters

Eco-chic rural apartmentsfill a gap in the market

The Validation Board

Have a look at www.javelin.com (the Experimentation Board) LeanStartupMachine

http://www.javelin.com/

http://www.youtube.com/watch?feature=player_embedded&v=HhoducyStMw

Insufficientself-catering city apartmentswith character.

Self-catering, « arty » Tier1City Tripper

Arty City Trippers that Self-Cater exist !

The « character » I envision is perceived as providing significant added value

There are insufficient apartments with character.

Hypothesis 1



Arty City Trippers that Self-Cater exist !

The « character » that I envision is perceived as providing significant added value

There are insufficient apartments with character.

Hypothesis 2

Eco-chic rural apartmentsfill a market gap


Nature-loving travellers that Self-Cater exist !

Customer would specifically choose for an Eco-Chic apartment

Eco-chic apartments are rare.

Hypothesis 3

First Upcycled Canvas

Self-Catering & « Arty » Tier 1 City Trippers

There are insufficientself-catering city apartmentswith character.


Eco-chic rural apartmentsfill a gap in the market



Hypothesis 1 – Pivot 1

Theme based /upcycled design apartment chain + buy/rent options

Holiday booking revenues justify investment costs.

People are interested in buying or renting products from the apartment.

People chose for the apartment because of its eco-chic image.

The Theme based approach is strongly appreciated.

MVP: Renovated

apartment in Zuid-Antwerp



Self-catering, Tier2 Long-stayExpat

« No-fuss », Theme based upcycled design apartment chain with buy/rent

Holiday bookings justify investment costs.



The Theme based approach is strongly appreciated.

MVP: Renovated

apartment in Zuid-Antwerp










Eco-chic apartmentsfill a market gap.

MVP: Renovated

apartment on Belgian coast

The Theme based approach is appreciated.

Theme based /upcycled design apartment with buy/rent options




People chose for the apartment because of its sustainable chic image.


Eco-chic apartmentsfill a market gap.

MVP: Renovated

apartment on Belgian coast


Theme based sustainable design apartment chain with buy/rent


Sustainable chic apartmentsfill a market gap.


People chose the apartment because of its sustainable chic image.

Hypothesis A (merge of 1 & 3) – Pivot 2

MVP: 4Elements

website


Theme based, no-fuss, sustainable design apartment chain

Self-Catering (Semi-) Long stayLight Green Cust’s

Insufficient Sustainable Chic apartments !

It makes sense to create a chain of Sustainable ChicApartments

Only Renovation ?

Work out the « features » !


Current Canvas


Systematically Test Your Plan

Testing is key


• Your Business Model is the Product• Have a risk oriented mindset• Fail Fast, Fail Quickly, Fail Often• Kill your darlings• Pivot intelligently

Recap

Your Questions

Attribution

Ash Maurya

« Life is too short to build something nobody wants »

« Running Lean, Second Edition (O’Reilly). Copyright 2012 Ash Maurya, 978-1-449-30517-8 »

Carl DanneelsPlethon Innov8

Koewacht 339190 Stekene

Belgium

G: 0497/053615W: www.plethon.be

T: @cdanneels

How to reach me


http://www.plethon.be/

FI Presentation on Lean Startup by Carl Danneels Plethon Feb24 2015

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Transcript of FI Presentation on Lean Startup by Carl Danneels Plethon Feb24 2015