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The Lean Startup#leanstartup,[object Object],Eric Ries (@ericries),[object Object],http://StartupLessonsLearned.blogspot.com,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object],But it doesn’t have to be that way. ,[object Object],We can do better. ,[object Object],This talk is about how.,[object Object]
What is a startup?,[object Object],A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. ,[object Object],Nothing to do with size of company, sector of the economy, or industry,[object Object]
A Tale of Two Startups,[object Object]
Startup #1,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Achieving Failure,[object Object],Company failed utterly, $40MM and five years of pain.,[object Object],Crippled by “shadow beliefs” that destroyed the effort of all those smart people.,[object Object]
Shadow Belief #1,[object Object],We know what customers want. ,[object Object]
Shadow Belief #2,[object Object],We can accurately predict the future. ,[object Object]
Shadow Belief #3,[object Object],Advancing the plan is progress. ,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Startup #2,[object Object]
IMVU,[object Object], ,[object Object]
IMVU,[object Object], ,[object Object]
New plan,[object Object],Shipped in six months – a horribly buggy beta product,[object Object],Charged from day one,[object Object],Shipped multiple times a day (by 2008, on average 50 times a day),[object Object],No PR, no launch,[object Object],Results: 2007 revenues of $10MM,[object Object]
Lean Startups Go Faster,[object Object],Commodity technology stack, highly leveraged (free/open source, user-generated content, SEM).,[object Object],Customer development – find out what customers want before you build it. ,[object Object],Agile (lean) product development – but tuned to the startup condition. ,[object Object]
Commodity technology stack,[object Object],Leverage = for each ounce of effort you invest in your product, you take advantage of the efforts of thousands or millions of others.,[object Object],It’s easy to see how high-leverage technology is driving costs down.,[object Object],More important is its impact on speed.,[object Object],Time to bring a new product to market is falling rapidly. ,[object Object]
Customer Development,[object Object],[object Object]
Rapid hypothesis testing about market, pricing, customers, …
Extreme low cost, low burn, tight focus
Measurable gates for investorshttp://bit.ly/FourSteps,[object Object]
Agile Product Development(A tale of two startups, revisited),[object Object],[object Object]
These examples are drawn from software startups, but increasingly:
All products require software
All companies are operating in a startup-like environment of extreme uncertainty,[object Object]
Agile Product Development,[object Object],Unit of Progress: A line of Working Code,[object Object],“Product Owner” or in-house customer,[object Object],Problem: known,[object Object],Solution: unknown,[object Object]
Product Development at Lean Startup,[object Object],Unit of Progress: Validated Learning About Customers ($$$),[object Object],Customer Development,[object Object],Hypotheses,,[object Object],Experiments,,[object Object],Insights,[object Object],Problem: unknown,[object Object],Data,,[object Object],Feedback,,[object Object],Insights,[object Object],Solution: unknown,[object Object]
Minimize TOTAL time through the loop,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object]
How to build a Lean Startup,[object Object],Let’s talk about some specifics. These are not everything you need, but they will get you started,[object Object],Small Batches,[object Object],Continuous deployment,[object Object],Split-test (A/B) experimentation,[object Object],Five why’s ,[object Object]
Small Batches,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],Learn Faster,[object Object],Customer Development,[object Object],Five Whys,[object Object],Build Faster,[object Object],Continuous Deployment,[object Object],Small Batches,[object Object],Continuous Integration,[object Object],Refactoring,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object],Measure Faster,[object Object],Split Testing,[object Object],Actionable Metrics,[object Object],Net Promoter Score,[object Object],SEM ,[object Object]
Benefits of Small Batches,[object Object],Faster feedback,[object Object],Problems are instantly localized,[object Object],Reduce risk,[object Object],Reduce overhead,[object Object]
Continuous Deployment,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],Learn Faster,[object Object],Customer Development,[object Object],Five Whys,[object Object],Build Faster,[object Object],Continuous Deployment,[object Object],Small Batches,[object Object],Continuous Integration,[object Object],Refactoring,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object],Measure Faster,[object Object],Split Testing,[object Object],Actionable Metrics,[object Object],Net Promoter Score,[object Object],SEM ,[object Object]
Continuous Deployment,[object Object],[object Object]
At IMVU time from check-in to production = 20 minutes
Tell a good change from a bad change (quickly)
Revert a bad change quickly
And “shut down the line”
Work in small batches

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