LEAN START-UPS Continuous customer interaction Revenue goals + measurement from day one No scaling until revenue Assume customer + features are *unknowns* Low burn rate by design, not crisis “Nail it, then scale it”
THAT WAS THEN, THIS IS NOWTHEN NOW Big Bang Launch Iterative evolution Static Content Rich applications Long media lead times Real-time One size fits all Personalized Broadcasting Interactive
AGILE IS A… PHILOSOPHY STRATEGY COLLABORATION PRACTICE
LEAN + AGILE Vision: what are we doing? Learn: get out of the building Engage: talk, listen, champion Experiment: make, learn, test Build: adapt, negotiate, deliver
HOW TO DEVELOP IDEAS1. What did you hear/see?2. What can you infer from that?3. What conclusion(s) can you draw?4. What is your opinion/solution? DON’T LET PEOPLE JUMP THE GUN TO #4
HOW TO PIVOTCredit: Eric Ries, “The Lean Start-Up”
TYPES OF PIVOTS Zoom-in pivot. A single feature becomes the whole product. Zoom-out pivot. The whole product becomes a single feature of a much larger product.
TYPES OF PIVOTS Customer segment pivot.You have real customers, but not the ones in the original vision. Customer need pivot.Your product doesn’t really solve a problem. Find a new need from customers.
TYPES OF PIVOTS Platform pivot. Change from an application to a platform, or vice versa. Customers buy solutions usually, not platforms. Business architecture pivot. Change from high margin, low volume (complex systems model), to low margin, high volume (volume operations model) of visa versa.
TYPES OF PIVOTS Value capture pivot. Change the revenue model. Maybe “freeware” isn’t right. Engine of growth pivot. Viral, sticky, and paid growth models—change to different one.
TYPES OF PIVOTS Channel pivot. Find a new sales channel, offer unique pricing, features, or competitive position. Technology pivot. Find a new technology to solve the problem.
THE IMPOSSIBLE DREAM? Lean: “Nail it, then scale it” Agile: Engage customers Close collaboration Iterate product Two-way communication
When we began working with Pure Digital on the Flip Camera the intended audience was parents of kids under 5. It would be acamera that would be easy to carry and use, and easy to upload.
But then it took off. All kinds of people began buying the Flip.Parents. College students. Bloggers. Butchers. Bakers. We began expanding communications into social media. Today the Flip camera has more “likes” on Facebook than Cisco.
We kept iterating with Pure Digital. The rise of the Flip was in symbiosis with the growth of You Tube. Native Instinct wrote thesoftware for the “one-click upload” to You Tube. Is this marketing o product? Agile melds product and marketing, sez I.
We wanted to give people a place where the could put their family videos and invite only certain people to see. So we designed and build FlipShare.
We built an e-commerce site for the Flip in Drupal. 2 Million cameras in 2years. Then we figured out how to allow people to put their own design on a Flip Camera, which made it their Flip. This also helped Pure Digital’s profit margins, since you could only get this on the e-commerce site.
The site was re-designed to account for different types of buyers based not on demographics—that wasn’t significant as it turned out—but instead based on behaviors. What role did the Flip play in helping you use video?
Pure Digital brought to market new lines of theFlip, which met different needs. We showed how each one fit into that customer’s story, which was a concept from Agile.
EXERCIZEThe City of Minneapolis has started a bike rental program called NICE RIDE MNBikes can be rented for $5 a day / $4.50 for 90 minutes, annually + annual student discountThe City wants the program to be self-funding and perhaps return enough profit to expand
EXERCIZE What is the Vision? What are our hypothesis? How do we research them? What are the stories? What could a new vision statement be? How do we start?