Lean Startup for AaltoES Summer of Startups

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Introduction to lean startup and the story of nextdoor.fi as lean startup

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  • Today: 45 min presentation, 15 min questions, 20 mins+ coaching for each startupThegoals 1) how to develop only what’s really needed 2) how to be agile in what you do
  • Huitale is a product companyWe are also consulting others about how to create products in agile and lean way.
  • Make the world a better placeFind scalable business model
  • Startup learning cycle (Plan-Do-Check-Act)
  • Example: In our product development it takes 8 days to get idea to production with measurements in place
  • Customer is LOST
  • Plan won’t survive.
  • Who is your customer? User != CustomerParallel process to product developmentDiscover, Validate, Create,scale
  • Information flows
  • Problem team figures out the problem (might have PO)Solution team works on the solution to the problemCOLLABORATION – UX, Architecture visions
  • on average companies (you might also think new product area as a company)changes their biz model 2,5 times - drastically.
  • Porsche
  • VolvoExample: 300 configurations, (NO TESTING – DROP CUSTOMER)
  • Test manually if you customer really wants itNext: Ok, lets take a look back a bit…
  • DoD – Do you validate the things are used? Do you drop features?Statistics say that 2/3 of features are not used
  • Can be better than Maximum Product!What’s your MVP?
  • Why?:No online marketplace for local services,Services are problematic to buy (prize?, quality?, who? Where?Who: Anyone nearby from entrepreneurs to students to senior citizens, anyone who needs or offers servicesWhat: household services like childcare and such, portal, marketplace
  • MVP – shame!
  • Integrations
  • - Release every day, automated deployment with rollbacks Monitoring backups and business reports every day integrations so it is not a standalone product
  • All testing is automated (performance, acceptance, unit, integrations)
  • We do not have too many ppl (4 developers)
  • So how we do it?!
  • Esimerkki: ”improve communication between users” themeComments and private messaging between users
  • Problem team: PO (CEO), 1 techie, 1 uxd, 1 sales/marketingSolutions team: 4 members, 2 java guys, 1 UXD (ext), 1 html dude (ext)
  • Meet the usersLet users vote and do researchUsers feedbackMetricsCollaboration partnersNew ideas / competition
  • Initial state
  • 2 to be ready
  • On got defined ready
  • Plannning on demand
  • Done – review on demandIP blockkaa, one done
  • Automated tests and quality metrics, production next day, metrics for each feature (remove waste)DOD and READYDaily standups
  • A card: Predicatability, layouts, cycle and lead times, metrics to measure the value for each feature
  • Lean Startup for AaltoES Summer of Startups

    1. Lean startup<br />Marko Taipale – Huitale<br />Summer of Startups<br />
    2. I.What is a Startup? <br />II.Our story<br />III.Q&A<br />
    3. I.What is a (lean) Startup? <br />
    4. “Startup is a human institution creating a new product or service under conditions of extreme uncertainty.”<br /><ul><li> Eric Ries</li></ul>It does not state size<br />
    5. Make the cycle as short as possible<br />
    6. ” Where do I get the ideas to build?” what to build<br />
    7. “No plan survives first contact with the customers”<br />- Steven Blank<br />
    8. Customer Development<br />Customer<br />Discovery<br />Customer<br />Validation<br />Customer<br />Creation<br />Scale<br />Company<br />
    9. Customer Development<br />Customer<br />Discovery<br />Customer<br />Validation<br />Customer<br />Creation<br />Scale<br />Company<br />Hypotheses, experiments, <br />insights<br />Data, <br />feedback, <br />Insights<br />Agile<br />Product<br />Development<br />
    10. Customer Development<br />Problem Team<br />Customer<br />Discovery<br />Customer<br />Validation<br />Customer<br />Creation<br />Scale<br />Company<br />Hypotheses, experiments, <br />insights<br />Solution Team<br />Data, <br />feedback, <br />Insights<br />Agile<br />Product<br />Development<br />
    11. Iterating the business model<br />- The Pivot<br />Business<br />Model<br />Iteration<br />Strategy<br />Tactical<br />Agile<br />Product<br />Development<br />Customer<br />Development<br />Source: Ann Miura-Ko Maples Investments<br />
    12. “Should I do whatever my customers want me to do?”<br />
    13. “Should I do whatever my customers want me to do?”<br />
    14. Create product vision and validate it with customer development<br />Vision <br />= a boundary for her wishes<br />
    15. Is agile about delivering features <br />as fast as possible?<br />
    16. Nr 1 waste = <br />Unused features<br />Building a feature maybe the wrong answer<br />Who cares about velocity?<br />We can work on highest priority story – who cares?<br />
    17. It is not about how much but rather how little you can release<br />Minimum Viable Product<br />
    18. Find your Minimum Viable Product<br />It should make you feel embarrassed<br />
    19. “It's the things that are not there that we are most proud of"<br />
    20. II.Our story: www.nextdoor.fi<br />
    21. Why?<br />Who?<br />What?<br />
    22. 120 man days / Beta<br /> -70 functionalities<br /> -50 User interface<br />(1. day = get some laptops)<br />
    23. 30 000 visitors / month<br />>2 000 active users<br /> >300open offer/request<br /> 3 days lead time<br />
    24. 1/day release to production<br />24/7 monitoring<br />1/day backups<br />1/day biz reports<br />5 integrations<br />
    25. 550+ acceptance tests<br />>80% test coverage<br /> 28 IE6 issues<br /> 2 bugs (in 3 years)<br />
    26. 0 people in operations<br />0 testers<br />0 full-time developers<br />Production bug fix < 1h<br />
    27. Ok.. So how we do it?<br />
    28. Product<br />Queue<br />READY<br />MMFs<br />Themes<br />3<br />7<br />2<br />2d<br />2d<br />6d<br />15min<br />1min<br />2h<br />
    29. Product<br />Queue<br />READY<br />MMFs<br />Themes<br />3<br />7<br />2<br />2d<br />2d<br />6d<br />15min<br />1min<br />2h<br />From READY to DONE 6 days<br />Dev time: From NOT STARTED to DONE 8 days<br />DWT: (PQ size * Dev Time) / capacity = (7 * 8) / 2 = 28 days <br />
    30. Problem team<br />Solution team<br />Product<br />Queue<br />READY<br />MMFs<br />Themes<br />3<br />7<br />2<br />2d<br />2d<br />6d<br />15min<br />1min<br />2h<br />From READY to DONE 6 days<br />Dev time: From NOT STARTED to DONE 8 days<br />DWT: (PQ size * Dev Time) / capacity = (7 * 8) / 2 = 28 days <br />
    31. !<br />Problem team<br />
    32. Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    33. Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    34. Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    35. PLAN!<br />Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    36. Review!<br />Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    37. Themes<br />(3)<br />Product<br />Queue<br />(7)<br />READY<br />(2)<br />In Progress<br />(2)<br />Done<br />TODO<br />Done<br />X<br />Y<br />Z<br />SMART<br />goals<br />MMF<br />Biz Value<br />Definition of READY<br />Definition of DONE<br />Updated metrics<br />
    38. Comments for service offers and requests<br />Owner: Marko<br />Size: S<br />5 days<br />QUEUE: 1.6.2010<br />DONE: 6.6.2010<br />READY: 3.6.2010<br />3 days<br />
    39. “Never doubt that a small group of thoughtful, committed people can <br />change the world<br />Indeed, it is the only thing that ever has”<br />- Margaret Mead<br />
    40. Marko Taipale<br />@markotaipale<br />huitale.blogspot.com<br />marko.taipale@huitale.com<br />I help companies to improve by <br />showing what I have done<br />how I have done it and <br />what I have learned about it. <br />I am a CTO of a lean startup<br />
    41. Photo credits<br />Flickr users<br />http://www.flickr.com/photos/kodomut/<br />http://www.flickr.com/photos/amagill/<br />http://www.flickr.com/photos/themarmot/<br />http://www.flickr.com/photos/unloveable/<br />http://www.flickr.com/photos/shapourbahrami/<br />http://www.flickr.com/photos/thatguyfromcchs0<br />http://www.flickr.com/photos/fxtreme/<br />http://www.flickr.com/photos/aussiegall<br />http://www.flickr.com/photos/lululemonathletica<br />http://www.flickr.com/photos/4yas<br />http://www.flickr.com/photos/sualk61/<br />http://www.flickr.com/photos/can3ro55o/<br />http://www.flickr.com/photos/jwdill/<br />http://www.flickr.com/photos/minidriver/<br />http://www.flickr.com/photos/donaldmacleod/<br />http://www.flickr.com/photos/jburgin/<br />http://www.flickr.com/photos/jmherrala/<br />http://www.flickr.com/photos/xurble<br />

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