Lean for Business
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Lean for Business “Lean Startup is about being less wasteful and still doing things that are big.” Eric Ries
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Transcript of Lean for Business
Lean for Business
“Lean Startup is about being less wasteful
and still doing things that are big.”
Eric Ries
All products / features start with a Great Idea!
3
Unfortunately..... it is likely to fail
Plan
Reality
Long projects get Longer
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Longer project
More likely to
get interrupted
More scope
creep
We tend to build the wrong thing
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Sources:Standish group study reported at XP2002 by Jim Johnson, Chairman
The right-hand graph is courtesy of Mary Poppendieck
Always7%
Often13%
Some-times16%
Rarely19%
Never45%
Half of the
stuff we build
is never used!
Co
st
# of features
Iterative and Incremental
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Don’t try to get it all right
from the beginning
Don’t build it all at once
cost
value
cost value
Not ”horizontal” increments
DB
Server
Client
1
2
3
1 2 34
value
”Vertical” increments!
DB
Server
Client 1
5
2 3
1 432
value
Keep iterations short
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Short iteration
Less likely to
get interrupted
Less scope
creep
Lean
• Lean = maximizing customer value whileminimizing waste
• Continuous Workflow = optimizing throughput
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Example: Apple
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2007 2008
- App Store
- 3G
2009
- Copy/Paste
- Search
2010
- Multitasking
- Video calls
Focus on Feedback!
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Feedback
and
Requests
Demos
and
Releases
Development
team
Stakeholders It is not the strongest
species that survive,
nor the most intelligent,
but the ones most
responsive to change.
Charles Darwin
Minimize time and distance between Maker and User
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12 3
People
(# of handoffs)
Time
(feedback delay)
Maker User
Idea #3: Cost of Delay
• Understand the value of the things we are working on and how that value decays over time
• Understand the cost of queues and waiting times
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Make better decisions
• Better Decision-making – by making the economic trade-offs visible (based on real metrics like CD3)
• Better Prioritization – to deliver more total value
• By changing the focus – from efficiency and cost to speed and value
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Reference
• « What is Agile? » Henrik Knisberg
• http://www.fourprinciples.ae/
• Four Principles Lean Management - Get Lean in 90 Seconds – video
• http://blackswanfarming.com/cost-of-delay/
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