RUNNING LEAN
A systematic process for iterating your web
application from Plan A to a plan that works
ASH MAURYA@ashmaurya
http://www.ashmaurya.com
Thursday, November 4, 2010
The sad statistics of Plan A.
Thursday, November 4, 2010
9/10 startups fail
Thursday, November 4, 2010
66% drastically change their original plans
Thursday, November 4, 2010
Not a better Plan A. But a path to a plan that works.
Thursday, November 4, 2010
Running Lean is a systematic process for iteratingfrom Plan A to a plan that works.
Thursday, November 4, 2010
Agenda
1. What is Running Lean?2. What does a Lean Startup look like?3. How can you use Lean to define and measure progress?
Thursday, November 4, 2010
Agenda
1. What is Running Lean?2. What does a Lean Startup look like?3. How can you use Lean to define and measure progress?
Thursday, November 4, 2010
About Me
Thursday, November 4, 2010
Practice Trumps Theory
Thursday, November 4, 2010
What is Running Lean
Customer Development +
Lean Startup +
Bootstrapping
Thursday, November 4, 2010
Requirements ReleaseDevelopment QA
Customer Development
Thursday, November 4, 2010
Requirements ReleaseDevelopment QA
Some learning
Customer Development
Thursday, November 4, 2010
Requirements ReleaseDevelopment QA
Some learning Most learning happens here
Customer Development
Thursday, November 4, 2010
Requirements ReleaseDevelopment QA
Some learning
Very little learning
Most learning happens here
Customer Development
Thursday, November 4, 2010
A synthesis of Customer Development, Agile, and Lean Thinking.
Lean Startup
Thursday, November 4, 2010
Funding with customer revenue.
Bootstrapping
Thursday, November 4, 2010
Startups that succeed are those that manage to iterateenough times before running out of resources.
- Eric Ries
Speed
Thursday, November 4, 2010
Get out of the building.
- Steve Blank
Learning
Thursday, November 4, 2010
Right Action, Right Time.
- Bijoy Goswami
Focus
Thursday, November 4, 2010
Speed, Learning, Focus.
Thursday, November 4, 2010
There are no silver bullets
Thursday, November 4, 2010
Agenda
1. What is Running Lean?2. What does a Lean Startup look like?3. How can you use Lean to define and measure progress?
Thursday, November 4, 2010
1. Document your Plan A2. Systematically Test your Plan A
Thursday, November 4, 2010
There is an “I” in Vision
Smart people can rationalize anything.
Thursday, November 4, 2010
Business Model vs Business Plan
Thursday, November 4, 2010
Business Model vs Business Plan
A document investors make you write that they don’t read
Thursday, November 4, 2010
Business Model vs Business Plan
A single diagram of your business
Thursday, November 4, 2010
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Activity
Activity that drives retention/revenue
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, November 4, 2010
The 3 Stages of a Startup
Problem/Solution Fit
Product/Market Fit
Scale
Thursday, November 4, 2010
Validate Problem/Solution Fit
Problem/Solution Fit
Product/Market Fit
Scale
Do I have a problem worth solving?
Thursday, November 4, 2010
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Activity
Activity that drives retention/revenue
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, November 4, 2010
Achieve Product/Market Fit
Have I built something people want?
Problem/Solution Fit
Product/Market Fit
Scale
Thursday, November 4, 2010
Requirements ReleaseDevelopment QA
Some learning
Very little learning
Most learning happens here
Thursday, November 4, 2010
Requirements Release
Customer Discovery
Customer Validation
ContinuousDeployment
Thursday, November 4, 2010
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Activity
Activity that drives retention/revenue
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, November 4, 2010
Optimize for Scale
How do I accelerate growth?
Problem/Solution Fit
Product/Market Fit
Scale
Thursday, November 4, 2010
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Activity
Activity that drives retention/revenue
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, November 4, 2010
Before Product/Market Fit
Validated Learning
Pivots
Problem/Solution Fit
Product/Market Fit
Scale
Thursday, November 4, 2010
After Product/Market Fit
Growth
Optimizations
Validated Learning
Pivots
Problem/Solution Fit
Product/Market Fit
Scale
Thursday, November 4, 2010
Agenda
1. What is Running Lean?2. What does a Lean Startup look like?3. How can you use Lean to define and measure progress?
Thursday, November 4, 2010
Not just limited to code
Thursday, November 4, 2010
Speed, Learning, Focus.
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Problem
Top 3 problems
Key Activity
Activity that drives retention/revenue
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth buying Channels
Path to customers
Customer Segments
Target customers
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Cost Structure
Customer Acquisition CostsDistribution CostsHostingPeople, etc.
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Revenue Streams
Revenue ModelLife Time ValueRevenue Gross Margin
Thursday, November 4, 2010
Leap of Faith: Being known as an “expert” will drive early adopters
Hypothesis: Blog post will drive >100 early sign-ups
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
Time is more valuable than money.
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
Qualitative Quantitative
Start here Verify with data
Thursday, November 4, 2010
Thursday, November 4, 2010
Words matter
Images matter
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
Thursday, November 4, 2010
Thursday, November 4, 2010
How to build a validated learning loop
1. Formulate falsifiable hypotheses2. Time-box experiments3. Validate Qualitatively, Verify Quantitatively4. Create accessible dashboards5. Communicate learning early and often
Thursday, November 4, 2010
We thought (Hypotheses):
Our Customers told us (Insights):
Next Steps (Future Experiments):0
12.5
25
37.5
50
Jan Feb Mar Apr May June July
$20K
$15K
$10K
$5K
$0
• Personal Authority would be a viable channel to early adopters• Customers would vote the problem as “must-have”• Customers would pay $49/mo
• Most early adopters did come through blog and twitter• Customers voted #3 problem as “must-have”. Others as nice-to-have• $49/mo works for customers with early traction
• Test MVP based on “must-have” problem• Test a “Free” model
Results from last iteration
Thursday, November 4, 2010
Not a better Plan A. But a path to a plan that works.
Thursday, November 4, 2010
Thanks!Ash Mauryatwitter: ashmauryablog: http://www.ashmaurya.com
Running Lean - the bookSystematically iterate your productfrom plan A to a plan that works
http://www.RunningLeanHQ.com
Thursday, November 4, 2010
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