Lean Analytics by Alistair Croll, Author, Lean Analytics

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Lean Analytics by Alistair Croll, Author, Lean Analytics

  1. 1. SMALL BATCHES Why cycle time trumps scale, why everything is changing, and why now.
  2. 2. Why does Lean matter to clouds?
  3. 3. Don’t sell what you can make. Make what you can sell. Kevin Costner is a lousy entrepreneur.
  4. 4. Why now?
  5. 5. Why now?
  6. 6. Why now?
  7. 7. Small batches.
  8. 8. 3D printing
  9. 9. Cloud computing & shared services. http://www.flickr.com/photos/fdctsevilla/4052593758/
  10. 10. Social media.
  11. 11. Digital channels PhotobyGaryLerudeonFlickr.Usedunderacreativecommons icense.https://www.flickr.com/photos/garylerude/7511464618
  12. 12. Crowdfunding
  13. 13. Small batches matter.
  14. 14. Eating the world http://www.flickr.com/photos/ebolasmallpox/3733059220/
  15. 15. Software has no choice but to record its actions. http://www.flickr.com/photos/jenny-pics/3239638494/sizes/l/
  16. 16. A closed loop of continuous improvement http://www.flickr.com/photos/spacepleb/1779158639/
  17. 17. “... a closed signaling loop ... where action generates some change that triggers a system change, originally referred to as a ‘circular causal’ relationship.”
  18. 18. A business that learns. http://www.flickr.com/photos/aussiegall/286709039/
  19. 19. Unfortunately, we’re terrible at learning.
  20. 20. Everyone’s idea is the best, right? People love this part! Things fall apart. No data, no learning.
  21. 21. Bad at data, too.
  22. 22. I have two kids. At least one is a girl.
  23. 23. What are the chances the other is a boy?
  24. 24. BB GB BG GG
  25. 25. GBBG GG 2 of 3 (66%) are boys.
  26. 26. Bartender: “Is your child a boy or a girl?” Logician: “Yes.”
  27. 27. Thefivestages EMPATHY I’ve found a real, poorly-met need that a reachable market faces. STICKINESS I’ve figured out how to solve the problem in a way they will keep using and pay for. VIRALITY I’ve found ways to get them to tell their friends, either intrinsically or through incentives. REVENUE The users and features fuel growth organically and artificially. SCALE I’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.
  28. 28. Better: bit.ly/BigLeanTable
  29. 29. The biggest lesson: pick One Metric That Matters
  30. 30. Really? Just one?
  31. 31. Yes, one.
  32. 32. Focus is a precious commodity.
  33. 33. Having one metric addresses this problem.
  34. 34. The other lesson.
  35. 35. If it doesn’t change how you behave, it’s a bad metric.
  36. 36. 0 5 10 15 20 25 30 2008 2012 Times a day a song in “heavy rotation” is played EVERY 4H EVERY 55m
  37. 37. Nobody needs this more than big companies.
  38. 38. Companies that use data-driven analytics instead of intuition have 5%-6% higher productivity and profits than competitors. 2011 MIT study of 179 large publicly traded firms Brynjolfsson, Erik, Lorin Hitt, and Heekyung Kim. "Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?." Available at SSRN 1819486 (2011).
  39. 39. Everything we are talking about this week is about the shift from scale to cycle time.
  40. 40. As a result of technology that makes the first unit as good as the millionth.
  41. 41. Removing barriers to entry and many of our fundamental business assumptions.
  42. 42. THE DATA-DRIVEN ORGANIZATION ORGANISM Dev- Ops Lean Startup Agile Big Data Cloud Computing
  43. 43. Cycle time trumps scale.
  44. 44. @acroll acroll@cloudops.com leananalyticsbook.com Also: Please go take bit.ly/cloudopssurvey

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