This document summarizes key aspects of Lean Startup methodology. It discusses how Lean Startup is focused on intensive customer learning through building minimum viable products and getting early customer feedback. The document contrasts Lean Startup with traditional approaches that have lower uncertainty and slower change. It also outlines the Lean Startup cycle and how the methodology can be applied beyond startups to established businesses for new product development, process improvement, and governmental initiatives involving high uncertainty.

1. HELSINKI
TAMPERE
BERLIN
LONDON
200
employees
Founded
2000
1
Wedesignanddevelopcustom
digitalservicesonagilebasis.
DÜSSELDORF

2. Sanoma:
Futurice developsthese digitalmedia
forSanomaby usingLeanStartup
andagilemethods.
Ilta-Sanomat is the#1 tabloid in Finland
and mostvisited web and mobile service.
HelsinginSanomat is thelargestdaily
newspaper in Nordiccountries.

3. Afterwork LondonJun 2013 – Petri Heiramo, FuturiceOy
LeanStartupis
AgileonSteroids
1/20/2015

4. I Lean
Startup
1/20/201
5
Futurice 4
Technical
practices
Work/Process
Management
Business
Development
LEAN
STARTUP

5. “Onsteroids?Right…”“No,seriously!”
Scrum Kanban
Lean
Startup
High Uncertainty,
Rapid Change
Low Uncertainty,
Slow Change
Disclaimer:This illustration is a simplification. In real life, the issue is a bit more complex. Like everything always is.

6. LeanStartupCycle
Image copyright © Alex Osterwalder
Can we build a
sustainable
business before
we run out of
money?

7. WhatIstheProduct?
Problem Business
Model
Solution Customer
Acquisition
Product
Images courtesy of wallcapture.com, www.uwontblog.com

8. ProductStrategy
Lean Canvas Value PropositionCanvas
Gain Creators
Howdoyour products and
services increasebenefit to
users?
Gains
What benefits does the
customer seek out of the
jobs?
Products
andServices
What areyouofferingto
thecustomer?
Customer
Job(s)
What does thecustomer
want toachieve?
Pain Relievers
Howarecustomers’ pains
reducedby your product and
services?
Pains
What problems does the
customer havewhendoing
thejobs currently?
Problem
Thekey problems youintend
tosolve
Solution
Your solutions tothekey
problems
UniqueValue
Proposition
Theclear, compelling
messagethat turns an
interestedpersonintoa
customer
Unfair
Advantage
Anadvantagethat cannot be
easily copiedor bought
Customer
Segments
Your target customers and
users
Key Metrics
Thekey numbers that show
how your business is doing
Channels
Your paths tocustomers
Existing
Alternatives
Howaretheseproblems
currently solved?
High-Level
Concept
Your “X for Y” analogy, e.g.
“YouTube=Flickr for
videos”
Early
Adopters
Characteristics for your ideal
customers
Cost Structure
Your fixedandvariablecosts
RevenueStreams
Your sources of revenue& estimatedamounts
Lean Canvas is adapted from The Business Model Canvas (BusinessModelGeneration.com) and is licensed under the Creative Commons Attribution- Share Alike 3.0 Un- ported License.

9. To Do Ongoing NotYet Done Validated
ValidatedLearning
Choose
assumption
to test
Design
experiment
Build MVP Get out of
the building
Analyse
feedback

10. MinimumViableProduct
Cost, Fidelity
Speed of feedback

11. CustomerDevelopment

12. GettingFeedback
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRA
L
Qualitative
• Talk to your customers
• Observe their behavior
• Manual product delivery
Quantitative
• A/B testing
• Measure customer funnel
• Track product usage
• Cohort analysis
Can help creating hypothesises
Can answer “why”
Can reveal where there are problems
Can reveal if changes improve product

13. PreandPostMarketFit
Market Fit achieved
Focus on Learning Focus on Optimisation
and Scaling

14. TechnicalLevel
Low-Fi Exploration
Agile Engineering

15. LeanStartupforNon-Startups?
The framework is applicable to
anywhere with high uncertainty.
Governmental initiatives
New product development
in established businesses
Process improvement

16. Summary
LeanStartup
› Business development
framework
› Notproduct development
› Focus on intensive learning
› EmbracesAgile principles
› Highly empirical
› Get out of the building!
16

17. YourMVP?
› Call Futurice folks for a free
3h MVP workshop
› For details, see the leaflet
inside yourScrumbooklet

18. Thanks!
Petri Heiramo, +358-40-7092526
petri.heiramo@futurice.com
Twitter: @pheiramo, @futurice