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Lean startup overview
 

Lean startup overview

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    Lean startup overview Lean startup overview Presentation Transcript

    • Lean Startup OverviewPresented by Quang Nguyen (Sebastian) , MBA, PMP, TESOL
    • Little self-introduction• Strong passion in entrepreneurship and education• Solid belief that entrepreneurship can be taught and passion can be inspired• Strong desire to make HCMC the next Silicon Valley• Facebook: @qtheboss• Slideshare: @qtheboss• Twitter: @nvquangvn• Blog: http://nhakhoinghiep.wordpress.com/
    • Agenda• What• Why• Where• When• Who• How
    • Warning• I am here to learn, not to teach• I do not like good words. I love hear you says “No, you’re wrong.”• I have no credit for Lean Startup• I have no credit for any intelligent work on this slides, including images, terminologies, processes, philosophies …• The context is web startup
    • So who got the credit for Lean Startup? Eric Ries Steve Blank• Co-founder and CTO of IMVU • Retired serial entrepreneur• Entrepreneur-in-Residence at • Built 8 startups in 21 years Harvard Business school, 2010 including MIPS Computers• Best Young Entrepreneur of Tech, • Now teaching Entrepreneurship at 2007 Berkeley, Stanford, and Columbia• Startup advisory
    • What is Lean?
    • And lean is everywhere
    • So what is lean startup• Product/market fit means being in a good market with a product that can satisfy that market.• Lean Startup is a method of testing the assumptions and hypothesis of a business idea in an iterative manner while validating your product/market fit before you ship a complete product.• The key is to eliminate waste.
    • Webvan• An online grocery business that promised to deliver products to customers’ homes within 30 minutes• Backed up by Benchmark Capital, Sequoia Capital, Softbank Capital, Goldman Sachs, and Yahoo!• The largest dotcom failure in history• Why failed? – Untested plan – Grew too fast
    • Why should we care?
    • Where on earth do people use Lean?
    • Who actually used Lean Startup?• Dropbox (www.dropbox.com)• Peernuts (www.peernuts.com) – Peernuts is a sharing platform for cultural goods. You just have to log in, list your library, connect with your friends and get access to the hundreds of films, books, video games, comics they want to share with you. – Right now, Peernuts is in beta mode, available in French and just for DVDs.• And a lot more: IMVU, Votizen, KISSMetric, Aarkvard, Hearsay, Epic Scale, Food on the Table, Pbworks, …
    • Dropbox - 1st Launch
    • Dropbox - 2nd Launch
    • Dropbox - 3rd Launch
    • Dropbox - Key Lessons• Public launch in Sep 2008• Ignored mainstream PR• Did not focus on building lots of features• Invested heavily in analytics, such as survey, split tests, landing page, signup flow optimization, sharing encouragement …
    • Peernuts homepage
    • Peernuts – Blogging before Coding• Step #1: – A short blog post – 10-question poll – No code AT ALL
    • Peernuts – Market shrinking• Step #2: – Is your market really big and totally bullish? If yes, you’re missing the point. If it’s big that’s too big. Start shrinking your market! – Started with DVD
    • Peernuts – Feature Burner• Test #3: – Ask yourself if you have more than 3 features. If yes, you’re too fat. – 3 features: • a movie listing powered by an external movie database • a loan dashboard • a friend system coupled with Facebook connect and a basic mail invitation – No rating system, no wish list, no recommendation, no notification, no privacy setting … NOOOOO!!!
    • Peernuts – No designer• Step #4: – First product ship objective is to learn, learn, and learn. – Don’t depress if you don’t have a wonderful logo. It looks weird but if you don’t care, it will just be fine! – Remember: you don’t need the perfect product but a working prototype.
    • Peernuts – Procrastination• Did you postpone product ship for the 3rd time? If yes, stop messing around. Release it!• Learn with your customers > Refine useless aspects of your product
    • Peernuts - Conclusion• Right now: Peernuts doesn’t work.• But: we have a great feedback on the service we are building• Will we add features? NO – Increase customer performance• Will we start massive communication? NO – Wait until the virality rate > 1• Will we work on our market? YES – We don’t have the correct positioning yet.• Is it okay to not consider any business model for the moment?
    • Extra: The Lean Startup
    • How to use Lean Startup?• Lean Canvas• Key Metrics• MVP (Minimum Viable Product)• Build – Measure – Learn loop• Customer Development
    • Lean Canvas
    • Customer Lifecycle /Conversion Behavior
    • Key Metrics - AARRR
    • Before Product / Market Fit
    • After Product / Market Fit
    • Minimum Viable Product (MVP)• MVP is the product with just the necessary features to get money and/or feedback from early adopters.• Do MVPs seem abstract to you?
    • MVP examples1. “If Apple can launch a smartphone without Find or Cut-and-Paste, what can you cut out of your product requirements?” – Sramana Mitra2. USV-backed foursquare uses Google Docs to collect customer feedback. No code, no maintenance.3. Fliggo sells it before they build it.4. Grockit puts up a notify-me-when-you-release form on steroids.5. Auto e-commerce site uses manualation and flintstoning for their backend.6. Semiconductor company uses 5 people and FPGAs to build a $100M semiconductor product line.7. Consumer company uses fake screenshots to sell their product.8. Allicator uses Facebook ads: “Ditch Digger? Feeling spread thin? Click here to complete a survey and tell us about it.”9. ManyWheels uses Microsoft Visio to build clickable web demos for prospective customers.10. Cloudfire uses a classic customer development problem presentation.
    • Build – Measure – Learn loop
    • Customer Development (cont)
    • Traditional Product Development
    • Agile Development
    • Product Development at Lean Startup
    • Conclusion• Think big but start small.• The longer you survive, the higher chance you will succeed.• If you have to fail, fail it early and cheaply.• It’s new. So be skeptical.
    • Q&A