Lean Startup @Enterprise in Japan LEAN STARTUP CONFERENCE 2015

TAKASHI TSUTSUMI MASATO IINO

We talk about our story to introduce Lean Startup into Japan enterprise

Characteristics of Japan Enterprises Technology

Centric

Quality Obsession

Weak Leadership

NOTE: The photos here are NOT related to our views described in this presentation.

Japan = Mother of Lean Manufacturing

Process 1 Process 2

Process 3

Conventional Assembly Line

Single Skilled Workers → Efficient in Mass-Production

Conveyor Belt

Just-In-Time Manufacturing (a.k.a. Lean Manufacturing)

A Group of Multi-Skilled Workers → Flexible in Small Lot Production

Production Cell

Process 1 Process 2

Process 3

Conventional Assembly Line

Conveyor Belt

Just-In-Time Manufacturing (a.k.a. Lean Manufacturing)

Production Cell

Lean Manufacturing to Lean Startup

Function A Function B

Function C

Conventional Execution Lean Startup

Vertically Divided Organization

Lean Acceleration Cell

Manufacturing

New Business Creation

Lean Manufacturing to Lean Startup

Process 1 Process 2

Process 3

Conventional Assembly Line

Conveyor Belt

Just-In-Time Manufacturing (a.k.a. Lean Manufacturing)

Production Cell

Function A Function B

Function C

Conventional Execution

Vertically Divided Organization

Not Quite There!

Challenge for Lean Startup @Enterprise Technology

Centric

Quality

Obsession

Weak Leadership

Mother of Lean Manufacturing is NOT necessarily good at eliminating a waste of new business creation ;-(

Neglecting Customers

Silo Mentality

Reluctance for Change

Procedure Maniac

No Customer Interviews

Lack of Total Optimization

Lean Startup Non-forcible

Lack of Flexibility

Innovation Accounting

Cell Production

Special District Approach

Trait Phenomena Challenge Solution

Enterprise Bottleneck = MVP

sales

Quality

Legal

Brands

Never touch the sensitive relationship!

Don’t even think about selling products without quality tests!

Compliance. Product Liability. Recall. What can U do???

No way to sell stuff potentially damaging our brands!!

Design

Soft-ware

Production

HR

Need enough time to scrutinize the design and UI, say, 1 year?

We’ll need enough detail to allocate resource. Agile? No!

Cost/Quality/Delivery management with mass production is our rule.

You can’t allocate more than 20% of your time for new Business Creation.

Spilling Out from HQ to Divisions

Top m

anagement

sponsored LEAN

zone w

ithin HQ

Change entire organization by strong top-down leadership

Setup a limited LEAN Special District in an organization

VS.

Step1: Start from Lean Special District Lean Startup Accelerator Department

reporting to CEO committing to ship MVP LSAD to be detached from existing BU’s

– “New Product ☓ New Market” in Ansof Matrix Innovation Accounting

Lean Startup Non-Forcible

Innovation Accounting How many customers did you talk to? Who are your early adaptors? What did you learn? Any validated learning? Did you build & test business model? Scalable? Do you have entry barriers incorporated into business model? Did you figure out the metrics that matters?

No Customer Interviews

Early Success in Cloud Funding happened

Step2: Involve Early Adaptors from “Defense Departments” LSAD’s small success case attracts early

adaptors in “Defense Departments” – Quality Assurance, Branding, Legal,

Accounting Train them on Lean Startup Training

Program

LSAD and Early adaptors in defense department created “Lean Enterprise Cell” for Lean Startup”

Step3: Lean Enterprise Cell

Delegated Small Unit in LSAD supported by Lean Defense Team

No Total Optimization No Flexibility

Quality Legal Account

-ing

LSAD

Lean Enterprise

Cell

Minimum Viable

Legal/Accounting

Minimum Viable

Branding

Minimum Viable Quality

More Success Cases

Lean Enterprise Cell for Minimum Viable Philosophy

Step4: Spill Over to Existing BU

Some more success attracted Existing BU for Lean Train them by Lean Startup Training

Expecting More New Business Creations On Lean Manner At Many Existing BU’s

Top m

anagement

sponsored LEAN

zone w

ithin HQ

Change entire organization by strong top-down leadership

Setup a limited LEAN District with in an organization

VS.

Step4: Spill Over to Existing BU

Lean Intra-preneurs

Potential Lean Intra-preneurs

Reserve Intra-preneurs

©youthdebates.org

Elementary Training on Lean Startup

• BMC only • Lean Number Planning

• Pitch Training

Step4: Spill Over to Existing BU

End of Presentation

Help us improving our program! Join us by the bar where we offer a very good Japanese Sake! ;-)

info@le-lab.jp www.le-lab.jp TAKASHI TSUTSUMI MASATO IINO