LEAN STARTUP

Think Big, Act Small, Learn Fast

Pushing Agile To The Next Level

Easy to understand, difficult to apply

1) Introduction to lean startup Link to agile developmen

2) Lean startup as business design methodology

3) What are the challenges in applying lean startup methods?

4) Benefits of applying lean startup methods

5) Final conclusion

How to successfully launch NEW products and services?

”There is surely nothing quite so useless as doing with great efficiency what should

not be done at all”

- Peter Drucker -

”By focusing on functional efficiency, we lose sight of the real goal of innovation: to learn

that of which is currently unknown”

- Eric Ries -

Research conducted on new product success and failure indicates that it

takes 58 new product ideas to deliver a successful new product.

Building product according to specification, but failing to address

customer need

Launch your idea before you build it

Stop Building, Start Learning

Pushing Agile to the Next Level

Agile Lean StartupRecognise we don’t know solution …we don’t even know the

problem

”The big question of our time is not Can it be built? but

Should it be built”

- Eric Ries -

Your solution is NOT ”the product”

Your Business Model Is ”The Product”

Customer

Business Model

Solution

- Ash Marya -

Scorecard to help you systematically validate your business model before building the product

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Building A Market For A New Product

How do we go from no customers to a few customers and from a few customers to many customers?

”A startup is a temporary organisation in search of repeatable, scalable and

profitable business model”

- Steve Blank -

”Lean isn’t about being cheap [but is about] being less wasteful and still doing things that are big.”

- Eric Ries -

Think Solving Big SolvingProblems To A Few People

Building A Market For A New Product

Early Vangelists

Finding and talking to customers

Strategic

Operational

Product design

Core(function,

specs)

Lean Startup

Customer value

design

Dropbox

Strategy is based on assumptions

Build

Measure

Customer Value Design

Learn

Launch tests

List your business model hypotheses

PRODUCT MARKET

Lean Startup Principles

1) Build-Measure-Learn Loop

2) Validated Learning

3) Minimum Viable Product

4) Pivot

Market type influences everything a startup does

1. Bringing a product into an existing market with a known business model

2. bringing a new product into an existing market

3. bringing a new product into a new market

4. bringing a new product into an existing market and trying to: 4.1. re-segment that market as a low-cost entrant or

4.2. re-segment that market as a niche entrant

5. cloning a business model that’s successful in another country

What are you aiming to do with your product?

Optimizing product

PRODUCT/MARKET FIT

Problem-Solution Fit

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Pivot or persevere

”A pivot is a structured course correction designed to test a new fundamental

hypotheses about the product, strategy and engine of growth”

Minimum Viable Product

1) Not a product but a test to attract early customers

2) Get as much feedback as possible, as soon as possible

3) that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.

4) The challenge is to understand what not to ship

5) requires judgment to figure out, for any given context, what MVP makes sense

PRODUCT MARKET

The Iteration Meta-Pattern

Ash Maurya, Running Lean

MVP Dashboard

Validated Learning

Data driven or data informed?

Metrics matter because they relate to your business model

Use analytics to measure whether your customers are doing what your

business model hopes they will

Startup Metrics

Lean Startup and Metrics

Qualitative and quantitative metrics. • Qualitative metrics are unstructured, anecdotal, revealing, and hard to aggregate; • quantitative metrics involve numbers and statistics, and provide hard numbers

but less insight.

Vanity and actionable metrics• Vanity metrics make you and your investors) feel good, but don’t change how

you’ll act. • Actionable metrics change your behavior by helping you pick a course of action.

Exploratory metrics and reporting metrics• Exploratory metrics are speculative, and try to find unknown insights that can

give you the upper hand, • focusing on the interesting and unexpected and on trying new things,• while reporting metrics keep you abreast of the!normal, managerial, day to day

operations.

Challenges in applying lean startup methods

”A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty”

- Eric Ries -

Attitude

1. Are you entrepreneurial enough?

2. Is there a visionary startup founder in you?

3. Is your # 1 goal to build a product or launch a business model for a vision?

4. Do you have a role in a startup team or are you just there to do a task?

Benefits of applying lean startup methods

1. improves communication with tech and business managers

2. gives multiple shots at big goals

3. improving our understanding of where we go wrong

Final conclusion

Think big, act small, learn fast

All that matters is

1) that you really understand what your customer wants,

2) have a discipline for finding it out, and

3) that you don’t start building a core product until you’ve tested your business model (hypothetical or real)

Accept business design as your biggest challenge

Talk to customers and launch ideas early and often!

Thank you!

Internetmeetup.com/lean-startup-helsinki

Emailola.sundell@mentor.fi

Cell+358-40-549 47 55

Twitter@TheLeanStarter

h

In an early stage startup, success is not in a "to do" list, it's

in a "to learn" list.

- Sean Ellis -