Lean Startup and the Enterprise Applying Lessons from Entrepreneurs to Large Organizations Brian...
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Lean Startup and the Enterprise Applying Lessons from Entrepreneurs to Large Organizations Brian Bozzuto
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Lean Startup and the Enterprise
Applying Lessons from Entrepreneurs to Large Organizations
Brian Bozzuto
Many Startups Began Pretty Lean
Dell• Founded 1984• Started with about $300k from family members• Sold 2013 for $24 Billion
Apple
► Founded 1976
► Early capital raised was $250k
► Currently worth ~ $400 Billion
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Tech Startups Weren’t Always Lean…
• Founded 1999• Raised $375 Million• Closed 2001
► Founded 1998
► Raised $80 Million
► Closed 2000Pets.com
► Founded 1998
► Raised $280 Million
► Closed 2001
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And then…
Google Finance
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Why Lean & Startups?
Assembly line at Motomachi Plant (1959), Toyota
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What Can We Learn from Startups?
The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible.
Ries, Eric (2011-09-13). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (p. 20). Random House, Inc.. Kindle Edition.
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Iteration Plan
How Does this Apply to Agile?
Product
Product Backlog
2-4 Weeks
Inspect & Adapt
DesignBuildTest
24 HoursPlan
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Iteration Plan
Product
Product Backlog
2-4 Weeks
Inspect & Adapt
DesignBuildTest
24 HoursPlan
The Myth of the Product Owner• The single, wring able neck• The voice of the Customer• The decider• Responsible for the Return on Investment• Able to answer requirement questions• Always knows what to do next
Exactly how is the product owner supposed to do all of this?
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Key Principles of Lean Startup
• Entrepreneurs are everywhere• Entrepreneurship is management• Validated learning is valuable in its
own right• We can measure progress with
innovation accounting
Idea
Build
Product
Measure
Data
Learn
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Lean Startup isn’t for Everything
© 2013 BigVisible Solutions 10
SimpleBest Practice
ComplicatedGood Practice
ComplexEmergent
ChaosNovel
Work with experts to inform our hypothesis
Run experiments to gain new knowledge Sense
AnalyzeRespond
SenseCategorizeRespond
ProbeSense
Respond
ActSense
Respond
Cynefin framework by David Snowden, Cognitive Edge www.synerzip.com
This is All Great, But…
“Experiments are risky for us” “We don’t sell directly to
customers in high quantities” “Releases take us a long time”
You don’t work for a startup!
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Build
Idea
Build
Product
Measure
Data
Learn
• Agile practices help us build faster
• Sometimes “production ready code” is too much
• Lean practices look to build the simplest thing to test our theories
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Make it Safe to Test
Testing has some risks…• Cost incurred of testing• Negative impact to brand• Making the wrong
decision• Perception of failed tests
as “failure in general”
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Playing in Sandboxes
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A Sandbox May be Theoretical
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Wizard of Oz Testing
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Measure
Idea
Build
Product
Measure
Data
Learn
• Focus on actionable metrics to inform decisions
• Beware vanity metrics that just flatter us
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Which of these metrics provide the most insight into a product?
Source: Adapted from Dave McClure
a. 1,000,000 unregistered unique visitsb. 500,000 visitors who view 2+ pagesc. 250,000 visitors who engaged for 10+ secondsd. 20000 users with registered email addresse. 1000 monthly subscribers
Not All Metrics are Created Equal
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An Example…
Let’s talk about this box…
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Identify Measures for Learning
Start Up Metrics for Pirates• Acquisition• Activation• Retention• Referral• RevenueSource: adapted from Dave McClure
AARRR!!!
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Identifying B2B and Internal Metrics
Behavior Driven• Adoption• Usage patterns• User behaviors
User Feedback• Net Promoter Score• User Journaling
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Learn
Idea
Build
Product
Measure
Data
Learn• Test hypothesis and learn
based on collected data• Be aware of our cognitive
biases when constructing tests and evaluating results
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© 2013 BigVisible Solutions 23Source: Alex Osterwalder www.synerzip.com
© 2013 BigVisible Solutions 24
Level 1
Checklist
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© 2013 BigVisible Solutions 25Source: Alex Osterwalder
For whom are we
creating value?
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© 2013 BigVisible Solutions 26Source: Alex Osterwalder
What value do we deliver
to the customer?
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© 2013 BigVisible Solutions 27Source: Alex Osterwalder
How do we deliver the value we create to the
customer?
How do we create & maintain relationships with our customers?
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© 2013 BigVisible Solutions 28Source: Alex Osterwalder
How much will these customers pay for the value
we create?
How much will this cost to create
and maintain?
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© 2013 BigVisible Solutions 29Source: Alex Osterwalder
Who and what will we need to
create this value
What will we do with these
resources to build value
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© 2013 BigVisible Solutions 30Source: Alex Osterwalder
Who would we partner with that
will provide us with Key Resources or
Key Activities
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© 2013 BigVisible Solutions 31
This level of understanding is a good starting point.
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© 2013 BigVisible Solutions 32
Level 2
Hypothesis
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“I wonder how much of this is reality…”
© 2013 BigVisible Solutions 33
? ? ???
?
??
?
?
??
Source: Adapted from Alex Osterwalder
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© 2013 BigVisible Solutions 34
Level 3
Validation
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“Let’s validate our riskiest assumptions”
© 2013 BigVisible Solutions 35
? ? ???
?
??
?
?
??
Source: Adapted from Alex Osterwalder
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© 2012 BigVisible Solutions 36
This is most likely your Riskiest Assumption
Source: Adapted from Alex Osterwalderwww.synerzip.com
© 2012 BigVisible Solutions 37
This is most likely your other Riskiest Assumption
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© 2012 BigVisible Solutions 38
What happens when we subtract costs from revenue?
Source: Adapted from Alex Osterwalder
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Putting It All Together…
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A View of Value Delivery
© 2013 BigVisible Solutions 40
Valu
e
Time
Prioritize Learning
Prioritize Value
Watch for Gold Plating
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One Small Thing You can Do Tomorrow
Map out your organization’s business model canvas
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Another Small Thing You can Do Tomorrow
Add a column to validate assumptions after you build something
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Thank you!
To Learn More• You can read more on our
blog (www.BigVisible.com)• Email us at
Any Question?
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• Software product development partner for small/mid-sized technology companies
• Exclusive focus on small/mid-sized technology companies, typically venture-backed companies in growth phase
• By definition, all Synerzip work is the IP of its respective clients• Deep experience in full SDLC – design, dev, QA/testing, deployment
• Dedicated team of high caliber software professionals for each client
• Seamlessly extends client’s local team, offering full transparency• Stable teams with very low turn-over• NOT just “staff augmentation”, but provide full mgmt support
• Actually reduces risk of development/delivery• Experienced team - uses appropriate level of engineering discipline• Practices Agile development – responsive, yet disciplined
• Reduces cost – dual-shore team, 50% cost advantage• Offers long term flexibility – allows (facilitates) taking offshore
team captive – aka “BOT” option
Synerzip in a Nut-shell
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Our Clients
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4747
Call Us for a Free Consultation!
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Hemant Elhence [email protected]
469.322.0349
Thanks!
