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Lean Startup
I have this

awesome

idea!
that’s great, let’s do it…
What does ‘do’ mean?
• Sit around the table and design it…
• Develop code… (or in manufacturing build it…)
• Move it to pr...
That was supposed
to be our

best
idea
yet?!!
So how
did we
KNOW
what the
customer
wanted?
Hint:
(expletive)
We had no ___________

clue…
Lean Startup
is built on

3 simple principles
Time to learn an Alien Language
DALAP
“Do As Little As Possible”

GOOTO
“Get Out of the Office*”

IKIWISISee It”
“I’ll Know It When I
*the real term in Le...
DALAP
“Do As Little As Possible”

reduce

Almost every initial idea
of what a customer wants
is WRONG!!

idea
need
custome...
idea
need
customer

= Hypothesis
assume it is wrong

GOOTO
“Get Out of the Office*”

We aren’t going
to figure out
if our ...
Create something
to confirm
the hypothesis

Go from
simple

to

IKIWISISee It”
“I’ll Know It When I

harder

Objective
is ...
Lean Startup
also has

1 C
Value

RE
Passionate
Ideas
Loosely Held
Build

Learn

Measure
idea!

Learn

Build

Measure
WTF
You told me NOT
to build anything
We have to

idea
need
customer

test
our

= Hypothesis
Validation Board

Hypothesis
P1

P2

P3

P4

P5

Customer

pivot

Need

Solution

Assumptions

Riskiest Assumption

Invali...
Build

Prototype

Interview
GreanEase Team
Nov 2012 Lean Start-up Machine
• Original Concept:
– App to provide moderate ‘greenies’ with information
ab...
GreenEase Validation Board
P1

P2

P3

P4

P5

Customer
Moderate
Greenie
Need
Restauran
t
Food Info
Solution

Phone
App

A...
GreanEase Team
Nov 2012 Lean Start-up Machine
• Pivot 1:
– App to provide Locavores with information about how
local resta...
GreenEase Validation Board
P2

P1

P3

P4

P5

Customer
Moderate Restauran
Greenie t Owner
Need
Need to
Restauran
t
Food I...
GreanEase Team
Nov 2012 Lean Start-up Machine
• Pivot 2:
– App to provide Locavores with information about
how local resta...
GreanEase Team
Nov 2012 Lean Start-up Machine

To arrive at this design:
• Created mock-up of phone app design
• Logo
– Us...
GreenEase Validation Board
P2

P1

P3

P4

P5

Customer
Moderate Restauran Locavores
Greenie t Owner
Need
Need to
Restaura...
GreanEase Team
Nov 2012 Lean Start-up Machine
• Still on Pivot 2:
– App to provide Locavores with information about how
lo...
GreenEase Validation Board
P2

P1

P3

P4

P5

Customer
Moderate Restauran Locavores
Greenie t Owner
Need
Need to
Restaura...
End
of
the

Startup Machine

wins!
(but there’s plenty more to do…)
Possible Steps Forward
• Find how to source info
– Will users provide?
– Sources?

• Refine Mock UI from static to dynamic...
Time to…

Get Started!
Validation Board
P1

P2

P3

P4

P5

Customer

Need

Solution

Assumptions

Riskiest
Assumption
Experiment
Result

Invalid...
Hot House Process
Good for ideas controlled internally




Cross-Functional
Executive Review

Hot House
accredited to
Sh...
Board Review Process
Good for products needing market input
Time Varies

Cross-Functional
Executive Review

 

 

Time...
More Useful Tools
Ahem… I

said…

More Useful Tools
Business Canvas
Key Partners

Key Activities

Key Platforms

Costs

Value
Proposition

Customer
Relationships

Distributio...
Environmental
Analysis
You are now

armed & dangerous
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
Lean Startup (for the Enterprise) Workshop
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Lean Startup (for the Enterprise) Workshop

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This is a workshop I give for clients interested in applying Lean Start-up Methods internally. Mostly intro slides, then we dive into the validation board and I get them out of the office to do real work! I also have a set of useful tools as you expand what you do... The primary thing is show them and apply them immediately by working with them.

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Transcript of "Lean Startup (for the Enterprise) Workshop"

  1. 1. Lean Startup
  2. 2. I have this awesome idea! that’s great, let’s do it…
  3. 3. What does ‘do’ mean? • Sit around the table and design it… • Develop code… (or in manufacturing build it…) • Move it to production… And then… No one comes…
  4. 4. That was supposed to be our best idea yet?!!
  5. 5. So how did we KNOW what the customer wanted?
  6. 6. Hint: (expletive) We had no ___________ clue…
  7. 7. Lean Startup is built on 3 simple principles Time to learn an Alien Language
  8. 8. DALAP “Do As Little As Possible” GOOTO “Get Out of the Office*” IKIWISISee It” “I’ll Know It When I *the real term in Lean Startup is GOOTB = Get Out of the Building”
  9. 9. DALAP “Do As Little As Possible” reduce Almost every initial idea of what a customer wants is WRONG!! idea need customer = Hypothesis any & all may be wrong
  10. 10. idea need customer = Hypothesis assume it is wrong GOOTO “Get Out of the Office*” We aren’t going to figure out if our idea will work here We must test our assumptions
  11. 11. Create something to confirm the hypothesis Go from simple to IKIWISISee It” “I’ll Know It When I harder Objective is to Learn
  12. 12. Lean Startup also has 1 C Value RE
  13. 13. Passionate Ideas
  14. 14. Loosely Held
  15. 15. Build Learn Measure
  16. 16. idea! Learn Build Measure
  17. 17. WTF You told me NOT to build anything
  18. 18. We have to idea need customer test our = Hypothesis
  19. 19. Validation Board Hypothesis P1 P2 P3 P4 P5 Customer pivot Need Solution Assumptions Riskiest Assumption Invalidated or Experiment Result Validated
  20. 20. Build Prototype Interview
  21. 21. GreanEase Team Nov 2012 Lean Start-up Machine • Original Concept: – App to provide moderate ‘greenies’ with information about the restaurant food they were buying as they are not able to easily find this info; to be paid for by the restaurant owners • Biggest Assumption: is this a valid need? • 1st “build”: Structured Interview – – – – Questions to ID customer segment Closed questions to see if this need was valid Open-ended questions to understand other items Executed at Whole Foods, Pleasant Pops Market, and a ‘green’ grocer
  22. 22. GreenEase Validation Board P1 P2 P3 P4 P5 Customer Moderate Greenie Need Restauran t Food Info Solution Phone App Assumptions Anything out there yet? Food info available? Will restaurant owners pay? Riskiest Assumption Is this a valid need? Experiment Structured Interview Result Moderate Greenies Didn’t Drive Decisions on This! Invalidated Moderate Greenie Validated
  23. 23. GreanEase Team Nov 2012 Lean Start-up Machine • Pivot 1: – App to provide Locavores with information about how local restaurant food is as they are not able to easily find this info; to be paid for by the restaurant owners (though the experiment will test our other customer segment assumption) • Next Biggest Assumption: will restaurant owners pay? • 2nd “build”: Structured Interview – Closed questions to see if this need was valid – Open-ended questions to understand other items – Executed at Ris, Founding Farmers, & two other restaurants known for locally sourcing their food
  24. 24. GreenEase Validation Board P2 P1 P3 P4 P5 Customer Moderate Restauran Greenie t Owner Need Need to Restauran t Food Info Solution Phone App Market Concern Phone App Assumptions Anything out there yet? Food info available? Are Locavores interested? Invalidated Will restaurant Restaurant owners pay? Owners Riskiest Assumption Experiment Structured Interview Result Restaurant owners are getting enough business w/word of mouth Need to Market Concern Validated
  25. 25. GreanEase Team Nov 2012 Lean Start-up Machine • Pivot 2: – App to provide Locavores with information about how local restaurant food is as they are not able to easily find this info; they will purchase this app • Next Biggest Assumption: are they interested? • 3rd “build”: Structured Interview – Questions to ID customer segment – Closed questions to see if this need was valid – iPad Landing Page w/proposed $1.99 price tag – Executed at local Farmer’s Markets & then online
  26. 26. GreanEase Team Nov 2012 Lean Start-up Machine To arrive at this design: • Created mock-up of phone app design • Logo – Used Hired A|B Testing Group • Landing Page
  27. 27. GreenEase Validation Board P2 P1 P3 P4 P5 Customer Moderate Restauran Locavores Greenie t Owner Need Need to Restauran t Food Info Solution Phone App Market Concern Restauran t Food Info Phone App Phone App Assumptions Anything out there yet? Food info available? Riskiest Assumption Are Locavores interested? Pay? Experiment Structured Interview Result Interested & Will Pay $1.99! Invalidated Validated Locavores Restauran t Food Info Phone App
  28. 28. GreanEase Team Nov 2012 Lean Start-up Machine • Still on Pivot 2: – App to provide Locavores with information about how local restaurant food is as they are not able to easily find this info; they will purchase this app • Next Biggest Assumption: anything out there yet? • 4th “build”: Internet Competitor Research – Searched for locavore restaurant apps – Looked for both successes & failures
  29. 29. GreenEase Validation Board P2 P1 P3 P4 P5 Customer Moderate Restauran Locavores Greenie t Owner Need Need to Restauran t Food Info Solution Phone App Market Concern Restauran t Food Info Phone App Phone App Assumptions Food info available? Riskiest Assumption Are Locavores interested? Pay? Experiment Structured Interview Result 1-2 others, 1-2 failures, but revenue stream was not well-defined for them Invalidated Validated Locavores Restauran t Food Info Phone App Interest & Little Competition
  30. 30. End of the Startup Machine wins! (but there’s plenty more to do…)
  31. 31. Possible Steps Forward • Find how to source info – Will users provide? – Sources? • Refine Mock UI from static to dynamic – Is it usable? – Is the info presented meaningful? – Any info missing that users want?
  32. 32. Time to… Get Started!
  33. 33. Validation Board P1 P2 P3 P4 P5 Customer Need Solution Assumptions Riskiest Assumption Experiment Result Invalidated Validated
  34. 34. Hot House Process Good for ideas controlled internally   Cross-Functional Executive Review Hot House accredited to Shardul Mehta
  35. 35. Board Review Process Good for products needing market input Time Varies Cross-Functional Executive Review     Time Varies Cross-Functional Executive Review
  36. 36. More Useful Tools
  37. 37. Ahem… I said… More Useful Tools
  38. 38. Business Canvas Key Partners Key Activities Key Platforms Costs Value Proposition Customer Relationships Distribution Channels Revenue Streams Customer Segments
  39. 39. Environmental Analysis
  40. 40. You are now armed & dangerous
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