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MINIMUM VIABLE PRESENTATION Lean Startup
Jonathan Bertfield & Adam Berk, w/ John Lynn, @jmlynn7 @startupinst
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ELIMINATE WASTE!!!!
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RUN EXPERIMENTS (like this one)
THANK YOU:)
@adamberk @berters
what will I learn?
1. What is LS?2. Why should you care?3. How do you do it (if you decide to care) 4. Discussion of Topics:
• What is an MVP (what are some great examples?)• What do I test, what do I measure?• What do I do with my learnings?
5. Get INTO and THROUGH BML once! (you are not practicing until you START the second loop)
Jonathan Bertfield
• 20 Years in Product Management
• Consulting clients: Pearson Inc., Disney, Associated Press, News Corp. Sesame Workshop, Business Insider, American Press Institute
• Coach at General Assembly Enterprise, Lean Startup Co Faculty, NYU Stern
Adam Berk
• What problem are you solving? I help teams pick their riskiest assumptions and run experiments.
• Currently at Pearson with >>• Founded a sharing economy site
with the opposite result of AirBnb
we believe that you…1. have heard the term LS before today
(95%)2. have read “the book” (60%)3. believe that LS is “at least worth
considering” (80%)4. have run an experiment or thought about
it in your lifetime (maybe) (60%)5. want (are willing) to run (more)
experiments with your (new/future) team (80% now 95% end of preso)
what is a startup? “A human institution designed to create a new product or service under conditions of extreme uncertainty. “
- Eric Riesauthor, The Lean Startup
A method to systematically address uncertainty through rapid iteration and market learning.
what is the Lean Startup?
we WILL cover the followingbuzzwords. MVP. CUSTDEV. PIVOT...• Entrepreneurs• Startups• Uncertainty (Product / Market / Model)• Minimum Viable Product / Pre MVP• Experiments
Assumptions*Hypotheses*(Vanity) metrics, Customer development
• Validated Learning• (how to do test and measure the right things) • Pivots
Defining waste.
Defining waste. • Building things that no one wants • GOING TOO SLOWLY (wasting time) • NOT LEARNING FAST ENOUGH • Doing things the “old way” because “that is
how they are done”• Solutions looking for problems (most of the
time) ((almost ALL the time in early stage
startups))
why there’s waste. • cognitive biases• poor communication • fear of penalty kicks down the
center• sunk cost syndrome• MORE?
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Don't build this.
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OR THIS
if you build without testing, you are probably building the wrong thing... 22
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What problem are you solving?
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NO ONE NEEDS A WASHING MACHINE
THEY NEED CLEAN CLOTHES
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Scientists do not coddle ideas. They crash test them. They run them
into a brick wall at sixty miles per hour. If the
idea is sound the pieces will be of the wall. 28
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Minimum Viable Product (MVP)
Experiment that helps you validate (or invalidate) hypotheses about the value or growth potential for a new product
An MVP helps you answer a specific question about one of your assumptions (as fast as possible and helps you understand the WHY)
scientific method
1. Identify problems to generate ideas2. Identify and prioritize the underlying
assumptions behind those ideas3. Generate hypotheses and predictions 4. Define and deliver tests that expose
opportunities for learning5. Use resulting data (learnings) to inform
activity6. Repeat forever (remember the second loop
in the roller coaster)
Test the riskiest things
first(next)
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High Risk
Low Risk
UnknownKnown
components of an example hypothesis
We believe [doing this]
for [these people]
will [achieve this outcome]
We will know this to be true when
we see [this business outcome]
by [this specific timeframe]
components of an example hypothesis
TACTICAL
TESTABLE
components of an example hypothesis
We believe [building a network of independent drivers]
for [New York]
will [make it faster and easier to grab a cab a peak times]
We will know this to be true when
we see [20 drivers with 20 rides/day ]
by [1 month from now]
Devin’s hypothesis
We believe [building a network of independent drivers]
for [New York]
will [make it faster and easier to grab a cab a peak times]
We will know this to be true when
we see [20 drivers with 20 rides/day ]
by [1 month from now]
components of an example hypothesis
We believe [creating content based on journalists passions]
for [online readers]
will [generate high levels of reader engagement]
We will know this to be true when
we see [6 posts per day from each editor ]
by [3 months from now]
MVP: expert tip
Not a static thing! Commitment to a process. Experiment(s) that helps you validate (or invalidate) hypotheses about the value or growth potential for a new product over time.
(Credit to Eric Ries)
MVP: expert tip● Isolate variables ● Make the call to action 3x harder than you think it should be ● Make the time to deliver 7x faster than you think it should
be ● WRITE DOWN THE EXPECTED OUTCOME ● Say it out loud (tweet it, blog about it)● If not… email it to yourself or a co-founder, put a calendar
invite for one of your mentors
It is a BAD experiment if...#badscience
Audience Participation
what kinds of uncertainty?
Technical / product Can we build this?
Customer / market If we build this, will people use/buy it?
Business modelOnce we build this, can we find a way to make money from it?
●Technical / product ○ TESLA BATTERY, SOLAR, GOGO?○ SOME STUFF THAT AUBREY WILL TALK ABOUT IN
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●Customer / market ○ YOUR IDEA (99% of the time)
●Business model○ GROUPON, HOMEJOY, LYFT
what kinds of uncertainty?
●Technical / product ○ usability tests, prototypes, wizard of oz
●Customer / market ○ problem interviews, landing pages,
●Business model○ landing pages, crowdfunding,
testing different kinds of uncertainty?
Pulldon't push - it's harder than it seems.
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PASTnot future
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NO SURVEYSNO SOLUTIONS
NO FOCUS GROUPSNO EXCUSESNO WOULD
NO FRIENDS NO FUTURE
NO “CONVINCING” (NEPAL:)NO B2B2BS
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other brilliant experiments…?
assumptions: @ AirBnbNights Booked
20 Photographers
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Minimum Viable Product
Translate your critical assumptions into an experiment:
1. Isolate critical assumptions for testing
2. Prioritize assumptions for testing
3. Draft your hypothesis to be tested
4. Execute an experiment (that includes MSC ahead of time)
5. Measure the results
6. Collect the data and learning in a systematic way and incorporate the learnings into new experiments
7. IF you do not do #6, 1-5 are irrelevant
validated learning using scientific principles
THINK.TEST.PROVE.Prove Wrong? Think
differentProve Right? Think BIGGER
-ALBERT EINSTEIN
Let’s get real… let’s DISCUSS the following slides for the remaining (hopefully) 30m
For startups
Why we (I) do not believe in evolution!
If you
cannot explain it simply, you
do not
UNDERSTAND IT well enough.
<<< That guy
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If you think your customer segment is
MILLENNIALS, YOUNG PROFESSIONALS, EVERYONE, SMBs, MULTIPLE ACTORS, YOUR MENTORS, PEOPLE WHO HAVE A VESTED INTEREST IN BUILDING YOUR SOLUTION (added after the webinar) FRIENDS, FAMILY,
you do not
UNDERSTAND IT well enough.
<<< That guy
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If you think the problem you are solving is
LACK OF TIME, LACK OF MONEY, LACK OF CUSTOMERS, LACK OF YOUR SOLUTION,
you do not
UNDERSTAND IT well enough.
<<< That guy61
“Do things that don't scale”
-Paul Graham62
You do not know HOW you did it until you KNOW how to
do it again.
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1000 visitors 0 conversions
what number should you try to increase?
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P E R F E C T I O N is achieved
NOT when there is nothing left
to A D D ,
BT WHN THRE ISNTHING LFT TO
TKE AWY
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What's another word for "too early"?
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“Science is an art not a science” -@berters
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FACTSvs
PROBLEMSyou cannot solve a fact
learn the difference
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measure results
What knowledge are you looking to gain?LEARN or PROVE
What you are going to do with the knowledge when you get it?START THE LOOP AGAIN BASED ON NEW EVIDENCE, NEW LEARNINGS, NEW PROOF!!!
why does it work?
why does it work? (less luck more skill)
path to success
“The ability to LEARN faster than your competition may be the only sustainable competitive advantage”.
Arie de Geus
“I was out of touch. But it wasn't because I didn't know enough. I just knew too much.”Gnarles Barkley
“Running down a dreamthat never would come to meworkin on a mystery, goin wherever it leads”
Tom Petty, Rock n Roller
The end (for real this time).
But really just the beginning for you. Get out there and do
not be afraid to challenge the status quo with
HYPOTHESES and DATA.
Don’t LOOK DOWN (notes, old slides, appendix, crazy experimental shit below)
1. Superforecasters - Podcast2. The Experimenter - on Netflix3. The ESPN experiment 4. LeanUX
1. Can experiments themselves be a waste 2. What is a bad experiment3. How do you set a baseline metric 4. What about a pure vision 5. What if the riskiest assumption is investment
(designing MVPs for investors)
CASH FOR EXPERIMENTS AT SXSW16
Please use the COMMENTS to comment directly in the deck on ● one slide, lesson, comment you loved, ● one that we could have improved or eliminated● We will publish the new and improved deck at the end of the week with your feedback and our learnings incorporated.
It was a privilege to speak with you all today, our doors are always open!
@adamberk + @berters
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