Lean Startup comes with its own new vocabulary, and quite often, we either misunderstand those new terms, or try to find a parallel from the old world. This presentation is more like a Lean Startup 101
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 proﬁle features that allow students to search for others in their courses, social organiza&ons and Houses. “Everyone’s been talking a lot about a universal face book within Harvard,” Zuckerberg said. “I think it’s 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. “I’m prey happy with the amount of people that have been to it so far,” he said. “The nature of the site is that each user’s experience improves if they can get their friends to join it.” hp://www.thecrimson.com/ar&cle/2004/2/9/hundreds-‐register-‐for-‐new-‐facebook-‐website/#
Lean Startup Model •
The Lean Startup provides a scien=ﬁc 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
What’s 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.
Minimize TOTAL =me
through the loop 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 it’s &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 eﬀort 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 eﬀect. 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 aempt to tune the engine from the baseline toward the ideal. This could take many aempts. – Pivot or persevere • Ac&onable vs. Vanity Metrics – For a report to be considered ac&onable, it must demonstrate clear cause and eﬀect. 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 reﬂect the key drivers of a business.
Conclusions Complex solu&ons need
feedback-‐based adap&ve approach Managing a ‘startup’ successfully requires early valida=ons on key hypotheses Lean Startup model oﬀers an integrated approach to solve complex problems in an uncertain environment