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    Lean Startup

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    John Wang
    The document discusses the Lean Startup method for starting companies under conditions of uncertainty. It begins with some housekeeping notes and an introduction of the speaker, Eric Ries. It then debunks four common myths about Lean Startups, defining them as focused on speed rather than cost and applicable to many industries. The document contrasts two examples of startups - one that failed after 5 years and $40 million by strictly following a plan, and one that succeeded by rapidly iterating and learning from customers. It argues the key to success is shortening the build-measure-learn feedback loop to achieve validated learning as quickly as possible.

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    Lean Startup

    Uploaded by

    John Wang
    656 views38 pages
    The document discusses the Lean Startup method for starting companies under conditions of uncertainty. It begins with some housekeeping notes and an introduction of the speaker, Eric Ries. It then debunks four common myths about Lean Startups, defining them as focused on speed rather than cost and applicable to many industries. The document contrasts two examples of startups - one that failed after 5 years and $40 million by strictly following a plan, and one that succeeded by rapidly iterating and learning from customers. It argues the key to success is shortening the build-measure-learn feedback loop to achieve validated learning as quickly as possible.

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    The document discusses the Lean Startup method for starting companies under conditions of uncertainty. It begins with some housekeeping notes and an introduction of the speaker, Eric Ries. It then debunks four common myths about Lean Startups, defining them as focused on speed rather than cost and applicable to many industries. The document contrasts two examples of startups - one that failed after 5 years and $40 million by strictly following a plan, and one that succeeded by rapidly iterating and learning from customers. It argues the key to success is shortening the build-measure-learn feedback loop to achieve validated learning as quickly as possible.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    656 views38 pages

    Lean Startup

    Uploaded by

    John Wang
    The document discusses the Lean Startup method for starting companies under conditions of uncertainty. It begins with some housekeeping notes and an introduction of the speaker, Eric Ries. It then debunks four common myths about Lean Startups, defining them as focused on speed rather than cost and applicable to many industries. The document contrasts two examples of startups - one that failed after 5 years and $40 million by strictly following a plan, and one that succeeded by rapidly iterating and learning from customers. It argues the key to success is shortening the build-measure-learn feedback loop to achieve validated learning as quickly as possible.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 38
    At a glance
    Powered by AI
    The key takeaways are that Lean Startups focus on speed, testing hypotheses with customers, and minimizing time in the build-measure-learn feedback loop.

    Some myths about Lean Startups are that they are only for small startups, only for web companies, focus only on cost reduction, and replace vision with data.

    The unit of progress in a Lean Startup is validated learning about customers through experiments and customer feedback, rather than completing stages in a process.

    The Lean Startup p #leanstartup

    Eric Ries (@ericries)


    http://StartupLessonsLearned.com

    Housekeeping
    To enlarge slides, use the magnifying glass icon just beneath the slides and to the right on your display console To adjust the sound, use the volume control on the console or on your computer T ask a question, type it i t th b at th b tt To k ti t into the box t the bottom of the console and hit submit

    About the Speaker


    E i Ries Eric Ri
    Entrepreneur Co-founder Co founder and CTO of IMVU StartupLessonsLearned.com Co author Co-author of several books Featured in the NY Times 4/25/10 (The Rise of the Fleet-Footed Start-Up) Fl t F t d St t U )

    Myth #1
    Myth Lean means cheap. Lean startups try to spend as little money as possible possible.

    Truth The Lean Startup method is not about cost, it is about speed. speed
    4

    Myth #2
    Myth
    The Lean Startup is only for Web 2 0/internet/consumer software companies 2.0/internet/consumer companies.

    Truth
    The L Th Lean Startup applies to all companies that St t li t ll i th t face uncertainty about what customers will want. want
    5

    Myth #3
    Myth
    Lean Startups are small bootstrapped startups.

    Truth T th
    Lean Startups are ambitious and are able to deploy large amounts of capital.

    Myth #4
    Myth
    Lean Startups replace vision with data or customer feedback feedback.

    Truth
    Lean Startups are d i L St t driven by a compelling vision, b lli i i and are rigorous about testing each element of this vision. vision
    7

    What is a Startup?
    A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty uncertainty.

    Nothing to do with size of company, sector of the economy, or industry.

    Most Startups Fail

    Most Startups Fail

    10

    Most Startups Fail

    11

    Most Startups Fail


    But it doesnt have to be that way doesn t We can do better This talk is about how

    12

    Entrepreneurship is Management
    Our goal is to create an institution, not just a g j product Traditional management practices fail
    general management as taught to MBAs g g g

    Need practices and principles geared to the startup context of extreme uncertainty Not just for two guys in a garage two garage
    13

    The Pivot
    What do successful startups have in common?
    They started out as digital cash for PDAs, but evolved into online payments for eBay They started building BASIC interpreters, but evolved into the y g p , world's largest operating systems monopoly

    They were shocked to discover their online games company was actually a photo-sharing site Pivot: change directions but stay grounded in what weve learned

    14

    Speed Wins
    If we can reduce the time between major iterations We can increase our odds of success

    15

    A Tale of Two Startups

    16

    Startup 1

    17

    Stealth Startup Circa 2001

    18

    All About the Team

    19

    A Good Plan?
    Start a company with a compelling long-term vision Raise plenty of capital Hire the absolute best and the brightest Hire an experienced management team with tons of startup experience t t i Focus on quality Build a world-class technology platform Build buzz in the press and blogosphere
    20

    In Memoriam

    21

    Achieving Failure
    Product launch failed
    - $40MM and five years of pain

    but the plan was executed well C i l d by shadow beliefs that destroyed the Crippled b h d b li f th t d t d th effort of all those smart people

    22

    Shadow Belief #1
    We know what customers want want.

    23

    Shadow Belief #2
    We can accurately predict the future future.

    24

    Shadow Belief #3
    Advancing the plan is progress. progress

    25

    A Good Plan?
    Start a company with a compelling long-term vision p y p g g Raise plenty of capital Hi the absolute best and the brightest Hire th b l t b t d th b i ht t Hire an experienced management team with tons of startup experience t t i Focus on quality Build a world-class technology platform Build buzz in the press and blogosphere
    26

    Startup 2

    27

    IMVU

    28

    IMVU

    29

    New Plan
    Shipped in six months a horribly buggy beta product Charged from day one Shipped multiple times a day (by 2008 (b 2008, on average 50 times a day) ti d ) No PR, no launch Results 2009: profitable, revenue > $20MM

    30

    Making Progress
    In a lean transformation, question #1 is which ,q activities are value-creating and which are waste? In traditional business, value is created by delivering , y g products or services to customers In a startup, the product and customer are unknowns p, p We need a new definition of value for startups

    31

    Traditional Product Development


    Unit of Progress: Advance to Next Stage
    Waterfall

    Requirements

    Specifications

    Problem: known Solution: known

    Design

    Implementation

    Verification

    Maintenance
    32

    Agile Product Development


    Unit of Progress: A line of Working Code

    Product Owner or in-house customer


    Problem: known Solution: unknown

    33

    Product Development at Lean Startup


    Unit of Progress: Validated Learning About Customers ($$$) g g

    Problem: unknown Solution: unknown

    Hypotheses, Experiments, Insights Data, Feedback, Insights

    34

    Minimize TOTAL time through the loop

    35

    Theres much more


    Learn Faster
    Split Tests Customer Interviews Customer Development Five Whys Root Cause Analysis Customer Advisory Board Falsifiable Hypotheses Product Owner Accountability Customer Archetypes Cross-functional Teams Semi-autonomous Teams T Smoke Tests

    Build Faster
    Unit Tests Usability Tests Continuous Integration Incremental Deployment Free & Open-Source Components Cloud Computing Cluster Immune System Just-in-time Scalability

    Measure Faster
    Split Tests Clear Product Owner Continuous Deployment Usability Tests Real-time Monitoring Customer Liaison

    Measure Faster
    Funnel Analysis Cohort Analysis Net Promoter Score Search Sea ch Engine Marketing Ma keting Real-Time Alerting Predictive Monitoring

    Refactoring Developer Sandbox Minimum Viable Product

    36

    Thanks!
    Startup Lessons Learned Blog
    http://StartupLessonsLearned.com In print: http://bit.ly/SLLbookbeta

    Getting in touch (#leanstartup)


    http://twitter.com/ericries p [email protected]

    Lean Startup Intensive at Web 2 0 Expo 2.0 May 3, 2010 in San Francisco
    http://web2expo.com/webexsf2010/public/schedule/detail/13260
    37

    The Lean Startup p

    Q&A

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