Stop throwing money out the window

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Presentation at WebExpo Prague 2013. Description below
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We have learned how to build software: Extreme Programming gave us the developer tools and Scrum the project management tools. But we are still investing a lot of money in our ideas and most of them fail. 9 out of 10 startups are unsuccessful. Why is that? One reason is that we still make assumptions about our users' needs. Repeat after me: "I am not my user!"

This talk will discuss about minimum viable products, validated learning and continuous deployment: how to write the minimum amount of code that can teach us something about the user and only then developing the full feature (instead of waiting to have the perfect feature that maybe nobody wants).

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Stop throwing money out the window

  1. 1. STOP THROWING MONEY OUT THE WINDOW @FlaviusStef, Mozaic Works v.2, includes design thinking
  2. 2. Me 2001-2006 Web Developer 2007-2010 Startup co-founder 2011-2014 Coach and Trainer Agile, Lean, Org. Change Follow me on Twitter More on Slideshare
  3. 3. 1. WASTE 2. LEAN STARTUP 3. TECHNIQUES 4. EXAMPLES 5. PRINCIPLES
  4. 4. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 1. WASTE
  5. 5. Syneto WCF – Active Directory Cost to implement Total revenue 50000 40000 30000 20000 10000 0 40000 6700
  6. 6. The Tutorial Not the actual app 2 months 250 man-days Usage: - 30%
  7. 7. My claim MOST BUSINESSES WASTE MONEY BECAUSE THEY INVEST IN PRODUCTS OR FEATURES NOBODY WANTS!
  8. 8. Throwing money out the window? Build something nobody wants Build more than the users need Opportunity cost
  9. 9. More? The iPotty – Amazon Remote Headband – Inventorspot Shoe Umbrella – Luux
  10. 10. More? The Hair Hat – FlairHair Wheel Mate Steering Wheel Desk – Techeblog
  11. 11. WWee aassssuummee ttoooo mmuucchh Photo: itspaulkelly on Flickr People will understand how it works I need it, so the others do too I understand what the user needs The user won't be distracted The customers will want to pay It's useful to integrate with system <X>
  12. 12. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 2. LEAN STARTUP
  13. 13. Run experiments Ask question Do research Create hypothesis Design experiment Run experiment Analyze data Hypothesis false Photo: zhouxuan12345678 on Flickr yes
  14. 14. The lean startup
  15. 15. The lean startup But: - What to build? - How to measure? - What to learn?
  16. 16. Design Thinking Who is the user? What is their problem? How could we solve it? What's the MVP? Is it working?
  17. 17. BUILD MEASURE LEARN What is the problem? Who is our customer? What is the next step? Is it useful? Best alternative? What is the solution?
  18. 18. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 3. TECHNIQUES
  19. 19. LEARN What is the problem? Who is our customer? Interviews Shadowing Innovation Games Empathy map Lean Canvas Storytelling Olark, Qualaroo earlier later
  20. 20. LEARN EMPATHY MAP
  21. 21. OLARK, QUALAROO LEARN
  22. 22. LEAN CANVAS LEARN
  23. 23. What is the solution? What is the next step? BUILD Document Hypotheses Create business case Prioritized Backlog Lean Canvas MMF Concierge UI Sketches Incremental build earlier later
  24. 24. BUILD DOCUMENT HYPOTHESES We believe that (capability) Will result in (outcome) We will know we are right when we see (measurable impact)
  25. 25. BUILD DOCUMENT HYPOTHESES We believe that having a mobile homepage Will result in different usage based on the consumer's country We will know we are right when we see at least one country having 10% more mobile traffic
  26. 26. BUILD x x x x x Minimum Marketable Feature x x x x x
  27. 27. BUILD CONCIERGE
  28. 28. BUILD MEASURE Paper Prototyping Fake/Landing Page Analytics A/B testing Client Demos Track $$$ earned LEARN Is it useful? Best alternative? earlier later
  29. 29. BUILD FAKE/LANDING PAGE MEASURE LEARN
  30. 30. BUILD FAKE/LANDING PAGE MEASURE LEARN
  31. 31. BUILD PAPER PROTOTYPING MEASURE LEARN
  32. 32. ANALYTICS BUILD MEASURE LEARN
  33. 33. BUILD MEASURE LEARN ANALYTICS
  34. 34. Document Hypotheses Create business case Prioritized Backlog Interviews Shadowing Innovation Games Empathy map Lean Canvas Storytelling Olark, Qualaroo MVP Concierge UI Sketches Incremental build Paper Prototyping Fake/Landing Page Analytics A/B testing Client Demos Track $$$ earned BUILD MEASURE LEARN Lean Canvas
  35. 35. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 4. EXAMPLES
  36. 36. The Syneto Email Digest
  37. 37. B Wait for feedback M L B M L B M L 2x Client Demo Needs no extra actions B L M Needs email digest (interview) License sales Profitable Needs minor tweaks 5x Client Demo Req. GUI with 8 actions/email Review instrumentation logs Needs only 1 action L Basic CLI Improved CLI, released beta Built GUI with 4 functionalities Added one extra action Nothing more built B M L B M L
  38. 38. Initial list ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  39. 39. What we implemented ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  40. 40. What the customers asked for ● Release Email ● Delete Email ● Whitelist Sender ● Blacklist Sender ● Release All ● Delete All ● Whitelist All ● Blacklist All for each email for all emails
  41. 41. Let's do the math 3 features x 2.5 days / feature = 7.5 days 7.5 days x 115 EUR / day = 862.5 EUR Photo: xcode on Flickr
  42. 42. B Check # of registrations M L B M L B B M L M L Team retrospective “Something” for SMs NPS What's hot, what's not There is a need. Also received client req. Facilitation is important Interest validated Is there actually interest? ~ 30 attendees Client accepted Interviews with existing clients L Leadership Workshop (2h) 1d workshop structure Lean Canvas Built 1d Created 2d “official” structure Scheduled 2d for fall Second half B M L B M L TODAY
  43. 43. WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES 5. PRINCIPLES
  44. 44. Generate multiple alternatives DIVERGE CONVERGE
  45. 45. Don't listen to the HiPPO
  46. 46. Identify your assumptions Weather forecast In 10 days Clear
  47. 47. Follow the 80-20 rule New features Existing features
  48. 48. No measurement, no learning
  49. 49. Release early, release often Commit Automated acceptance UX testing User acceptance Scalability testing Production git push automated manual ● Build (war, gems, minified js/css) ● Run unit tests ● Static analysis ● Deploy artifacts CI Server monitors launches
  50. 50. WRAP-UP 1. Start by empathizing ex: Empathy Map 2. Identify assumptions ex: Lean Canvas 3. MMFs are minimal ex: Concierge 4. Measure to learn ex: A/B testing 5. Continue refining ex: Incremental development 6. Follow the money B L M
  51. 51. … more?
  52. 52. THANK YOU! Twitter: @FlaviusStef Blog: flaviusstef.wordpress.com More slides: slideshare.net/fstef

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