Things that you want to know aboutLEAN STARTUPRatko Mutavdžić, PROJEKTURA*learning how to build a startup and avoid other people’s mistakes
INTROjust a few words about meso, if we all nod our heads... we can continue...• Ratko Mutavdzic is founder of PROJEKTURA, consulting company that workwith new and emerging technologies and introduce them to the corporate andenterprise environments. Prior to this one, he spent 15 years Microsoft, startingin a consulting practice and then leading several different sales and technologyteams.• He is the author of number of published papers on different aspects of thetechnology, successful blogs on new technologies and project management,and active contributor in a number of social networks exploring the use andadvance of new ways to connect and share innovation and invention.• He frequently speaks on conferences, meetings, workshops, coffee shops andgenerally at every place where people like to explore, challenge, investigate,think and innovate.• Keywords: change, project, program, portfolio, innovation, startupnote: more contact info on a last slide
but if you think you already know all the anwsers...
Message from Steve Blank:„(almost) EVERYTHING YOU KNEW ABOUT STARTING ACOMPANY IS WRONG. „
FEW ASSUMPTIONS AT THE BEGINNING...you know what I am talking aboutlearnings from Lean Startup are universal... and I am still hoping that you are not here to apply Corporation to Startup• You want to learn about Enterpreneurship• You want to learn about Lean Startup• You want to learn how to apply Lean Startup to Corporation• You want to learn how to apply Corporation to Lean Startup• You want to learn how to apply Lean Startup to Startupwww.agilemanifesto.org
FIVE WHY?what is different? what is the same?learnings from Lean Startup are universal... and we are applying unknown solution to unkonwn problem• "Lean Startup" is an approach for launching businesses and products, thatrelies on validated learning, scientific experimentation, and iterative productreleases to shorten product development cycles, measure progress, and gainvaluable customer feedback. In this way, companies, especially startups, candesign their products or services to meet the demands of their customer basewithout requiring large amounts of initial funding or expensive productlauncheswww.agilemanifesto.org
PROBLEM KNOWN, SOLUTION KNOWN ...product development at Microsoftunit of progress: advance to next stagewaterfall style(c) steve blank
PROBLEM KNOWN, SOLUTION UNKNOWN ...product development at typical venture startupassumes customers and markets are undestoodagile style(c) steve blank
PROBLEM UNKNOWN, SOLUTION UNKNOWN ...product development at lean startupassumes customers and markets are unknownrapid hypothesis testing about market, pricing, customer, low cost, low burn, tight focus(c) steve blankCustomerDiscoveryCustomerValidationCustomerCreationScaleCompanydata, feedback, insightshypothesis, experiments, insightscustomerdevelopmentengineering
LEAN STARTUP principlesnow, thare are some ground rules„Startup success can be engineered by following the process,which means it can be learned, which means it can be taught”1. enterpreneurs are everywhere2. enterpreneurship is management3. validated learning4. innovation accounting5. build-measure-learnhttp://theleanstartup.com/principles
LEAN STARTUP strategyminimum viable productlooks like you are driving a car...but in this case you need to crash as fast as possible.... will explain later• VISION• Start, Define, Learn, Experiment• STEER• Leap, Test, Measure, Pivot• ACCELERATE• Batch, Grow, Adapt, Innovatehttp://theleanstartup.com/principles
EVERYONE IS ENTERPRENEUR!„screw it, let’s do it!”
VISIONremember: building a startup is an exercise in institution buildingstartup us a human institution designed to create a newproduct or service under conditions of extreme uncertanity• Start measure your productivity differently: no scope, no time, no budget• Build – Measure – Learn: plans are driven by feedback loop mechanism• Validated Learning: demonstrating progress nad finding validation• Experiment Thesis:• Value Hypotesis: test whether a product or service delivers value• Growth Hypotesis: test how new customers will discover a product orservicefrom: „The Lean Startup: How Today’s Enterpreneuship...”, by Steven BlankPRODUCT(optimize)STRATEGY(pivot)VISION(dont change)
Hypotesis Questionswe need to make sure that we are asking the right questionsan experiment is a product!#1. Do consumers recognize that they have the problem you are trying to solve?2. If there was a solution, would they buy it?3. Would they buy it from us?4. Can we build a solution for that problem?• Remember, instead of „Can this product be built”, think:• Should this product be built?• Can we build a sustainable business around this set of products andservices?www.agilemanifesto.org
genchi gembutsu, or... leave your desk and talk to the people
crash and fail as fast as you can, and learn something
MVPminimum viable productget out, and get the feedback! validate the feedback!#• we are uncovering better ways of developing software by doing it and helpingothers do it.• individuals and interations over processes and tools• working software over comprehensive documentation• customer collaboration over contract negotiation• responding to change over following a planMore info on MVP... Type minimum viable product
innovation accountingevery little step counts, if it is a progress...
INNOVATION ACCOUNTINGare we learning something yet? do we understand what is happening?sorry guys, we need to have some numbers here...beware: be very carefull what are you tracking and improving• three steps:1. use an MVP to establish real data where you are, mesure how thecustomers behave RIGHT NOW2. tune the engine, move from baseline, experiment on how we canmove metrics forward3. pivot or preservewww.leanstartup.com
Types of Pivot!some basic ones that happen early in a product thinkingALL TYPES OF PIVOT!#• ZOOM IN PIVOT: a single feature becomes the whole product• ZOOM OUT PIVOT: the whole product becomes a single feature of a muchlarger product• CUSTOMER SEGMENT PIVOT: you ave real customers, but not the ones inthe original vision• CUSTOMER NEED PIVOT: your product doesn’t really solve the problem.Find a new need from customers.www.leanstartup.com
Types of Pivot!little bit advanced ones, that are coming from a structural changesALL TYPES OF PIVOT!#• PLATFORM PIVOT: change from an application to a platform or vice versa.• BUSINESS ARCHITECTURE PIVOT: change from high margin, low volume toa low margin, high volume or vice versa.• VALUE CAPTURE PIVOT: change the revenue model.• ENGINE OF GROWTH PIVOT: viral, sticky, paid growth models – change• CHANNEL PIVOT: find a new sales channel, offer unique pricing, features• TECHNOLOGY PIVOT: find a new technology to solve the problemswww.leanstartup.com
ONE NEED TO OPERATE DIFFERENTLYhow do we do a lean startupis there „operations” thing at startup?some things to note• look at the batch size• pull, don’t push• overall look at the agilepractices and leanmanagementwww.leanstartup.combuild fastercontinous deploymentsmall batchesminimum viable prductsrefactoringmeasure fastersplit testing, actionable matricslearn fastercustomer developmentfive whys
WHAT CORP CAN LEARNfrom understanding a lean startupget out, and get the feedback! validate the feedback!#• roots of Lean Startup are defined at Toyota (Lean Manufacturing), but...• There is INTRAPRENEURS at every established organization• Valid Learnings:• Build – Measure – Learn, Validated Learning, Hypothesis Aproach• Invalid Learnings:• no scope, no time, no budget, Validated Learningwww.agilemanifesto.org
WHAT CORP CAN LEARNfrom understanding a lean startupget out, and get the feedback! validate the feedback!winners are those who can move faster that their competitiors• innovation is somewhere in your organization• BUT R&D IS NOT YOUR ONLY SOURCE OF INNOVATION!• agility requires a continuous cycle of interactions with the environment• BUT YOU CAN’T DO IT FROM A DESK!• iterating faster than competitors yields substantial advantage• BUT YOU NEED TO CHANGE A BUILD MODEL!www.agilemanifesto.org
FEW BOOKS TO READ...they are small, but will change the view how you look at the startup businessnot necessary in that order, but read them all ...we are confusing CXO’s even if we can do a great job in a first placewww.agilemanifesto.org
more info ...if you feel like you want to know more or just for firstname.lastname@example.org bite, dont yell at you at all, so please, add me to your ... think network. tnx.• WWW www.projektura.org• FBOOK www.facebook.com/projektura• TWEET www.twitter.com/projektura• EMAIL email@example.com• but if it is really, really, really urgent and you really need to connect to people atprojektura ...• SKYPE projektura
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