Lean Startup in the Enterprise

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David J. Bland discusses what lean startup in the enterprise is, how it works, and how agile principles and practices can help you quickly test and validate your hypotheses and gather customer feedback.

Published in: Business, Technology

Lean Startup in the Enterprise

  1. Lean Startup in the Enterprise © 2012 BigVisible Solutions
  2. David J BlandAgile / Lean / XP / KanbanStartups & EnterpriseseCommerce to Counter Terrorism © 2012 BigVisible Solutions 2
  3. Alex Osterwalder Eric Ries Steve Blank Dave McClure © 2012 BigVisible Solutions 3
  4. S&P 500 companies now theshortest life span we’ve everseen in recorded history. © 2012 BigVisible Solutions 4
  5. The Lean Startup provides ascientific approach to creatingand managing startups and geta desired product tocustomers’ hands faster. -Eric Ries © 2012 BigVisible Solutions 5
  6. A startup is a humaninstitution designed todeliver a new product orservice under conditions ofextreme uncertainty. -Eric Ries © 2012 BigVisible Solutions 6
  7. Problem Solution Process Waterfall or Known Known Agile Known Unknown AgileUnknown Unknown Lean Startup © 2012 BigVisible Solutions 7
  8. We are experiencing anevolutionary leadershipmismatch. © 2012 BigVisible Solutions 8
  9. Problem Solution Process Unknown Unknown Lean StartupLeaders typically are not promoted ifthey’ve repeatedly stated that theydo not know the problem or solution © 2012 BigVisible Solutions 9
  10. need more most leadersleaders here complex complicated (guidelines) (good practice) chaos simple (principles) (best practice) maybe even hereSource: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 10
  11. complex complicated (guidelines) (good practice)LeanStartup chaos simple (principles) (best practice)Source: Adapted from Cynefin & Leadership Agility © 2012 BigVisible Solutions 11
  12. We are experiencing anorganizational structuremismatch. © 2012 BigVisible Solutions 12
  13. We’ve structured our organizations basedon the Industrial Era: - 1 Business Model - Scaling - Predictability - Execution - Organized by Function © 2012 BigVisible Solutions 13
  14. Intrapreneurs!Entrepreneursare everywhere. © 2012 BigVisible Solutions 14
  15. 1982!!! 1976!!!© 2012 BigVisible Solutions 15
  16. … there is hope. © 2012 BigVisible Solutions 16
  17. Experiment withproduct & process © 2012 BigVisible Solutions 17
  18. Sustaining Disruptive Innovation Innovation (kanban) (scrum) (lean startup)Source: Adapted from Clayton Christensen © 2012 BigVisible Solutions 18
  19. Don’t release it toeveryone all at once. © 2012 BigVisible Solutions 19
  20. Target specific cohortswith a/b testing. © 2012 BigVisible Solutions 20
  21. Decouple from yourexisting brand. © 2012 BigVisible Solutions 21
  22. If you experiment in code,come back to: a. clean it up b. iterate c. productize d. refactor © 2012 BigVisible Solutions 22
  23. Right Fidelityhere is my paper prototype! © 2012 BigVisible Solutions 23
  24. Wrong Fidelityhere is my paper prototype… © 2012 BigVisible Solutions 24
  25. Experiment to alignbusiness & product. © 2012 BigVisible Solutions 25
  26. Source: Eric Ries The Lean Startup © 2012 BigVisible Solutions 26
  27. You cannot learn ifyour feedback loopsare broken. © 2012 BigVisible Solutions 27
  28. © 2012 BigVisible Solutions 28
  29. © 2012 BigVisible Solutions 29
  30. Just because you canmeasure it, does notmean you shouldmeasure it. © 2012 BigVisible Solutions 30
  31. Which of these metrics provide the most insight into a product? a. 1,000,000 unregistered unique visits b. 500,000 visitors who view 2+ pages c. 250,000 visitors who engaged for 10+ seconds d. 20000 users with registered email address e. 1000 monthly subscribersSource: Adapted from Dave McClure © 2012 BigVisible Solutions 31
  32. Acquisition +15% +11% +8% Activation +5% +7% +10% Retention +1% +3% +5% Referral +0% +1% +3% Revenue +0% +1% +5%Source: Dave McClure Pirate Metrics © 2012 BigVisible Solutions 32
  33. Great Product+ Wrong Business Model Failed Organization © 2012 BigVisible Solutions 33
  34. © 2012 BigVisible Solutions 34
  35. Business Models > Business Plans Business Models CanvasSource: Adapted from Alexander Osterwalder © 2012 BigVisible Solutions 35
  36. Experiment to alignproduct & customer. © 2012 BigVisible Solutions 36
  37. Source: Steve Blank © 2012 BigVisible Solutions 37
  38. That’s all good in theory but…“Your version of Enterpriseand my version of Enterpriseare very different.” © 2012 BigVisible Solutions 38
  39. That’s all good in theory but…“I need to apply this to aninternal project with noexternal customers!” © 2012 BigVisible Solutions 39
  40. That’s all good in theory but…“<insert your reason here>” © 2012 BigVisible Solutions 40
  41. Problem Solution Process Waterfall or Known Known Agile Known Unknown AgileUnknown Unknown Lean Startup © 2012 BigVisible Solutions 41
  42. Do you have unknown/ unknown’s in yourenterprise? © 2012 BigVisible Solutions 42
  43. Start small. © 2012 BigVisible Solutions 43
  44. If you have internal users,then perform customerdiscovery & interview them. © 2012 BigVisible Solutions 44
  45. They are users who impact business metrics. Finance ManagerSource: Dave Gray “Empathy Map” © 2012 BigVisible Solutions 45
  46. Start small. © 2012 BigVisible Solutions 46
  47. If you have User Stories,add a Hypothesis that statesthe expected outcome on aspecific metric. © 2012 BigVisible Solutions 47
  48. Feed the learning back intothe product backlog… © 2012 BigVisible Solutions 48
  49. Start small. © 2012 BigVisible Solutions 49
  50. If you have a Kanban Board, add a Validate Column to the very right of it. © 2012 BigVisible Solutions 50
  51. Teams should have a healthyskepticism of the why of thework you are doing. © 2012 BigVisible Solutions 51
  52. If you cannot articulate theexpected outcome, then whyshould the team build it? © 2012 BigVisible Solutions 52
  53. It’s working if you hear:“How are we going tomeasure that?” © 2012 BigVisible Solutions 53
  54. It’s working if you hear:“We cannot wait thatlong to learn!” © 2012 BigVisible Solutions 54
  55. Where are theunknown / unknown’sin your enterprise? © 2012 BigVisible Solutions 55
  56. Questions? © 2012 BigVisible Solutions 56
  57. © 2012 BigVisible Solutions 57
  58. David J Bland Agile Consultant [m]: +1 703 945 0700 [ e ]: dbland@bigvisible.com [ u ]: www.bigvisible.com [ t ]: @davidjbland© 2012 BigVisible Solutions 58

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