Demys&fying Lean Startups
Challenges with tradi&onal startups and NPD
The Lean Startup Model, Principles and Methods
Does it work for New Product Development?
Once upon a &me
Welcome to the Bold New World! AJer about a week of coding, Zuckerberg launched thefacebook.com last Wednesday aJernoon. The website combines elements of a standard House face book with extensive prole features that allow students to search for others in their courses, social organiza&ons and Houses. Everyones been talking a lot about a universal face book within Harvard, Zuckerberg said. I think its kind of silly that it would take the University a couple of years to get around to it. I can do it be-er than they can, and I can do it in a week. As of yesterday aJernoon, Zuckerberg said over 650 students had registered use thefacebook.com. He said that he an&cipated that 900 students would have joined the site by this morning. Im pre\y happy with the amount of people that have been to it so far, he said. The nature of the site is that each users experience improves if they can get their friends to join it.
Ok, I have an ideaa BIG idea!!!
How should I proceed?
I could do
Dot-com-era style Stealth Mode
Cowboy style Just Do It Startup
Thats the problem we need to solve!
And these are the methods we
Lean Startup Model The Lean Startup provides a scien=c approach to
crea&ng and managing startups and get a desired product to customers' hands faster. The Lean Startup method teaches how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum accelera&on. It is a principled approach to new product development.
Lean Startup favors experimenta=on over elaborate planning, customer feedback over intui&on, and itera=ve design over tradi&onal big design up front development
Whats a Startup?
A startup is a human ins.tu.on designed to create a new product or service under condi.ons of extreme uncertainty
The products a startup builds are really experiments; the learning about how to build a sustainable business is the outcome of those experiments.
Lean Startup Principles
Entrepreneurs are everywhere
Entrepreneurship is management
GET OUT OF THE BUILDING
Minimize TOTAL =me through the
Instead of making complex plans that are based on a lot of assump&ons, you can make constant adjustments with a steering wheel call the Build-Measure-Learn feedback loops. Through this process of steering, we can learn when and if its &me to make a sharp turn called a pivot or whether we should persevere along the current path
The MVP is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least eort or development &me. The MVP lacks many features that may prove essen&al later on. MVP is not a minimal product!
Validated Learning Validated learning about customers is the measure of progress in a Lean
Startup not lines of working code or achieving product development milestones.
Process in which one learns by trying out an ini&al idea and then measuring it to validate the eect. Each test of an idea is single itera&on in a larger process of many itera&ons whereby something is learnt and the lessons applied to the succeeding tests.
Typical steps in validated learning: Specify a goal Specify a metric that represents the goal Act to achieve the goal Analyze the metric - did you get closer to the goal? Improve and try again
Innova&on Accoun&ng Enables startups to prove objec&vely that they are learning
how to grow a sustainable business Use an MVP to establish real data on where the company is
right now Startups must a\empt to tune the engine from the baseline
toward the ideal. This could take many a\empts. Pivot or persevere
Ac&onable vs. Vanity Metrics For a report to be considered ac&onable, it must demonstrate
clear cause and eect. Otherwise, it is a vanity metric. Ac&onable metrics can lead to informed business decisions and
subsequent ac&on. These are in contrast to 'vanity metrics' - measurements that give the rosiest picture possible but do not accurately reect the key drivers of a business.
Products and Services that have beneted from Lean Startup
Complex solu&ons need feedback-based adap&ve approach
Managing a startup successfully requires early valida=ons on key hypotheses
Lean Startup model oers an integrated approach to solve complex problems in an uncertain environment
References h\p://theleanstartup.com/#casestudies h\p://agbeat.com/entrepreneur/why-11-out-of-every-12-startups-fails/ h\p://techcrunch.com/2011/09/13/instagram-and-intuit-founders-discuss-lean-
strategy-not-just-for-startups/ h\p://steveblank.com/ h\p://www.startuplessonslearned.com/2009/04/validated-learning-about-
customers.html h\p://www.startuplessonslearned.com/2008/09/lean-startup.html h\p://www.startuplessonslearned.com/2008/11/what-is-customer-
development.html h\ps://en.wikipedia.org/wiki/Validated_learning h\p://www.ashmaurya.com/2010/04/3-rules-for-building-features-in-a-lean-
startup/ h\p://www.ashmaurya.com/2011/06/your-product-is-not-the-product/ h\p://www.ashmaurya.com/2009/11/achievingproductmarkeuit/