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The lean startup Opportunity Recognition Workshop

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9 out of 10 start-ups or products fail

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58 ideas = 1 success

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66% of successful start-ups drastically change their original plans

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Not a better Plan A but a path to a plan that

works

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Plan that works = Scalable, repeatable,

business model

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Product market fit is the first thing that matters

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Three stages of a startup

Stage 1

Problem / solution fit

Product / market fit Scale

Stage 2 Stage 3

Do I have a problem worth solving?

Have I built something people want?

How do I accelerate growth?

Focus = validated learning Experiments = pivots Terrain = qualitative

Focus = growth Experiments = optimizations

Terrain = quantitative

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Lean manufacturing

§  Practice developed in early 90’s by Toyota

§  Improve efficiency based on TPS ( = JIT + automation)

§  Eliminate Waste (what does not generate value) in production process

§  Methodology applied in other businesses such as production, Government, services, software development, etc.

Use your scarce

resources to

generate value only

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Customer development

§  Methodology created in mid 90’s by Steve Blank

§  Documented in “The four steps to the epiphany”

§  Scientific approach to improve the products success by developing a better understanding of the consumers

Get out of the

building!

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Customer development methodology

§  Parallel process to product development §  Rigid consumer milestones instead of FCS §  Comprehensive documentation §  Emphasis on learning & discovery before execution

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The lean startup

§  Developed in 2008 by Eric Ries §  Documented in “The Lean

startup” §  = Lean philosophy + customer

development + agile principles §  Approach based on validated

learning, scientific experimentation and short iterations

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Build, Measure, Learn and iterate

Minimize total time through the loop

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Customer development + agile development

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Minimum Viable Product

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What is an MVP?

A MVP is the most pared down version of a product that can still be released

§  It has enough value that people are willing to use it or buy it initially

§  It demonstrates enough future benefit to retain early adopters

§  It provides a feedback loop to guide future development

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Why do we need an MVP?

The minimum viable product allows a team to collect the maximum amount of validated learning about customers with the least effort

§  Do customer recognize that they have a problem you are trying to solve?

§  If there were a solution, would they buy it? §  Would they buy it from you? §  Can we build the solution for that problem?

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MVP examples Boring 3 minute video for their MVP that looked like a normal product demonstration (no code). When they released the video online, their waiting list went from 5,000 people to 75,000 overnight! Collects customer feedback using Google Docs Used only one plane and one route to test their hypothesis. As they worked out the kinks in their strategy they started adding more planes and routes Started out as a simple WordPress blog with a widget that used AppleScript to send PDFs coupons via Mail.app

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What lean startup does not mean §  Cheap or Bootstrapped

§  Lean startup focuses on making real progress while minimizing waste. It’s more about speed than cost

§  Only for Web 2.0, Internet and consumer companies §  All companies that face uncertainty about customer needs

§  Lean startups are very small companies §  Also for established companies

§  Yet another software development methodology §  Agile development can be part of it

§  Release half-baked product and call it MVP §  MVP is delivers value to the customer and allows to learn §  MVP is core but only part of the methodology

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Questions?

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