THE LEAN STARTUP
The Lean Startup ■ Created by Eric Ries
– Silicon Valley entrepreneur – Yale graduate w/ a B.S. in Computer Science
■ Directs startup companies to allocate resources as efficiently as possible
■ Provides scientific approach to creating & managing startups and get a desired product to customers’ hands faster
■ Teaches you how to drive a startup– how to steer, when to turn & when to persevere – grow a business w/ maximum acceleration
The Lean Startup
■Principled approach to new product development■Provides tools to test a vision continuously ■About putting a process, a methodology around
the development of a product
The Lean Startup ■Every startup is grand
experiment that attempts to answer a question – Should this product be built?– Can we build a sustainable
business around this set of products and services?
■https://www.youtube.com/watch?v=_a3s0IXSuxY
Principles
#1 Entrepreneurs are Everywhere
■Don’t have to work in a garage to be a startup
■Concept of entrepreneurship – includes anyone who works within a startup– Startup = human institution
designed to create new products & services under conditions of extreme uncertainty
■Lean Startup approach can work in any size company
#2 Entrepreneurship is Management ■Startup is an institution, not just a product■Requires new kind of management
specifically geared to its context
#3 Validated Learning
■ Rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty
■ Startups exist to learn how to build a sustainable business– Learning can be validated
scientifically – running experiments that allow us to test each element of our vision
■ Once entrepreneurs embrace validated learning development process can shrink substantially
#4 Innovation AccountingIn order to improve entrepreneurial outcomes & hold innovators accountable, need to focus on:■How to measure progress■How to setup milestones■How to prioritize work
■Requires a new kind of accounting designed for startups
■Effectively helps startups define, measure, and communicate progress
#5 Build-Measure-Learn■Build-measure-learn
feedback loop – core component of Lean Startup methodology
■Fundamental activity of a startup – turn ideas into products, measure how customers respond, then learn whether to pivot or persevere
■Successful startup processes should be geared to accelerate that feedback loop
Develop a MVP – Minimum Viable Product ■ Version of product that enables full turn of Build-Measure-Learn loop
w/ minimum amount of effort & least amount of development ■ Lacks many features that may prove essential later on
– However, must be able to measure impact – Ex. Inadequate to build prototype evaluated solely for internal
quality by engineers & designers – must also get it in front of potential customers to gauge their reactions
■ Why waste effort building out a product without first testing if it’s worth it?
■ Get feedback from customers to learn what customer wants
1. Figuring out problem that needs to be solved developing MVP2. Startup can work on tuning the engine
– Measurement & learning must include actionable metrics that can demonstrate cause & effect question
Validation Board
■ Tool to test startup idea
■ Make faster decisions
■ Improve team accountability
■ Build better products
■ https://www.youtube.com/watch?v=HhoducyStMw
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