My presentation about Lean Startup and Customer Development model for the Italian Agile Day 2010 on November 19, 2010 - Genova (IT).

1. The Lean Startup
and Customer development model. In Italy.
Nicola Junior Vitto
Blomming
Agile Day - November 19, 2010 - Genova
@njvitto - @blomming
nicola@blomming.com

2. What’s a startup?
A startup is first of all an experiment, it is a human
institution designed to deliver a new product or
service under conditions of extreme uncertainty
(From Lessons Learned blog By Eric Ries)

3. Ideas
How important are ideas?

4. Team
Team is the key

5. Passion
It’s very difficult to succeed without passion

6. Bootstrapper
You can be a bootstrapper, too.

7. Market research

8. Market: B2C
B2C

9. Market: B2B
B2B

10. Market: B2B2C
B2B2C

11. Business Plan

12. Go Ahead
Having a good idea,
a proved and experienced team,
market research and a good plan...
...last missing thing is...

13. Money

14. VC Funding
Venture Capitals or Angel Investors
can give you money based on your plan

15. And then?
(Classic) Product Development

16. Development: Waterfall model
Waterfall
Problem: known Solution: known

17. What’s wrong?
9/10 Startups fail
66% of successful
changed plans
58 ideas = 1 success

18. What’s the problem?
Lack of customers

19. What’s the problem?
Build a product no one wants

20. What about Business Plans?
No business plan
survives
the first customer contact

21. What about Business Plans?
Plans are for a known future
not for a startup context
So, plans fail in startups

22. Assumptions on Product Development

23. Business Models
It’s all about business models

24. What’s a Lean Startup?
Lean startup is a rigorous process
for iterating from Plan A
to a plan that works.
(by Ash Maurya)

25. Lean is not cheap

26. Lean Startup cycle

27. Open Source software
Lean startup is...

28. Open Source software
Cloud computing architectures
Lean startup is...

29. Open Source software
Agile methodologies
Cloud computing architectures
Lean startup is...

30. XP
“Product owner” or
“in-house” customer
Problem: known Solution: unknown
Agile (XP)

31. ...but in startups problem is unknown
“Problem” in startups

32. What can help me?
“Problem” in startups

33. Customer Development

34. Four Steps to the Epiphany

35. Business Plans
While the death of the business plan as a
method to engage investors is a welcome
development, it doesn’t eliminate the need to
think through your business – a process aided
by, ironically, the writing of a business plan.

36. Business Models
We said:
“It’s all about business models”

37. Business Models Canvas

38. Many different business models
The same technology, product or service
can have many different business models

39. OODA Loop

40. Sketch out your Business models

41. Iterate on guesses (set of hypotesis)
Iterate fast and often to find your business model

42. Business Models (examples)
Free/Adv Freemium

43. Customer Development: pivoting

44. Customer Development: pivoting

45. Get out of the building (by Steve Blank)
Your business assumptions can be wrong
Go out and speak with your customers

46. AARRR Metrics
By Dave McClure
More on: http://500hats.typepad.com/
Initial hypotesis must be precise to be measured

47. Product/Market fit

48. Customer Development: scaling

49. Scalable startup

50. Scalable startup

51. Scalable (lean) startup

52. What’s a Lean Startup?
Problem:
unknown
Solution:
unknown

53. A classic full-featured product
Yes...it can be well organized, but not all features are
required to your lean startup.

54. Minimum Viable Product
MVP: A product with the
fewest number of features
needed to achieve a
specific objective, for
which users are willing to
‘pay’ in some form of a
scarce resource.

55. Intermediate MVPs
Intermediate MVPs test high risk
components of the business model.
Final MVPs test the business model

56. MVP Evolution (example)

57. Early Adopters
The MVP is for your first customers:
they are called Innovators and Early adopters.

58. Blomming experience

59. Search for Money
We had a plan and a (good?) idea

60. Search for Money
No money for ideas

61. Blog-Magazine: LikePicasso

62. Minimum Viable Product
Embed for
blog and
websites

63. Product Management

64. Embed (demo on AllaCanonica.it)

65. Cart + checkout

66. Checkout - Shipping data

67. Order Status

68. Dashboard

69. MVP 2
Social
App
Embed for
blog and
websites

70. Sociable product

71. Product on Social Media

72. MVP 3
API
Storefront
Web App
Mobile
etc.
Social
App
Embed for
blog and
websites

73. IT vs USA

74. American dream?
America isn’t the only place to run a startup

75. Dreaming America!
It doesn’t mean that can’t be so good (for the growth)

76. Inverted Pyramids
Funding Pyramid

77. In Italy
In Italy there is a similar model
with A LITTLE Ecosystem
of investors and startups
Few investments with
orders of magnitude lower on startup value

78. In Italy
Capital research for italian startups (*)
• Success requires investments and venture capital
• The 97% is in search of a funding
• The initial capital is of €33k
• The 19% received some form of external investment
(mostly scholarships)
(*) from: Infoservi.it and Mind The Bridge Competition 2010

79. Market: B2C
B2C

80. Market: B2B
B2B

81. Market: B2B2C
B2B2C

82. YOU

83. MUST
YOU

84. MUST
YOU
SCALE

85. Lean Startup Meetup - Bologna
http://www.meetup.com/Lean-Startup-Bologna-Meetup

86. Useful on how to pitch investors

87. Work only from 9 to 5
Is it possible?

88. An alternative?
Lifestyle business

89. HackFwd
http://hackfwd.com/
More info on:

90. Thanks
Blomming.com
Magazine.blomming.com
Twitter.com/Blomming
Facebook.com/Blomming
Personal blog: njvitto.com
nicola@blomming.com
alberto@blomming.com