www.rallydev.com @zachnies! ©2013!
Innovation in an
Agile Portfolio
Enterprise Lean Startup!
Zach Nies – Chief Technologis...
www.rallydev.com @zachnies! ©2013!
Zach Nies
@zachnies
Zach Nies, Chief Technologist
Rally Software
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Font Sampler!
http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://me...
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
I love to change
industries !
www.rallydev.com @zachnies! ©2013!
Apply new

disciplines!
www.rallydev.com @zachnies! ©2013!
Become
disciplined
explorers…!
www.rallydev.com @zachnies! ©2013!
who know how to
balance
exploration

and execution!
www.rallydev.com @zachnies! ©2013!
Build what

people want!
www.rallydev.com @zachnies! ©2013!
Take advantage
of market
opportunities!
www.rallydev.com @zachnies! ©2013!
What happened to
this company?!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
1 2 5
iPhone Released1
iPhone App SDK Released2
Android w/ Nav Released5
Major Recessio...
www.rallydev.com @zachnies! ©2013!
A lot can !
happen in

1.5 years.!
www.rallydev.com @zachnies! ©2013!
Is your business
Agile enough?!
www.rallydev.com @zachnies! ©2013!
Turn these
disruptions into
opportunities!
www.rallydev.com @zachnies! ©2013!
What’s changing?!
www.rallydev.com @zachnies! ©2013!
Time to excellence!
www.rallydev.com @zachnies! ©2013!
http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
www.rallydev.com @zachnies! ©2013!
http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
Excellence!
www.rallydev.com @zachnies! ©2013!
Some examples…!
www.rallydev.com @zachnies! ©2013!
1984!
www.rallydev.com @zachnies! ©2013!
2006!
www.rallydev.com @zachnies! ©2013!
About 20 years!
www.rallydev.com @zachnies! ©2013!
2001!
www.rallydev.com @zachnies! ©2013!
2006!
www.rallydev.com @zachnies! ©2013!
5 years!
www.rallydev.com @zachnies! ©2013!
2007!
www.rallydev.com @zachnies! ©2013!
2010!
www.rallydev.com @zachnies! ©2013!
3 years!
www.rallydev.com @zachnies! ©2013!
2010!
www.rallydev.com @zachnies! ©2013!
2012!
www.rallydev.com @zachnies! ©2013!
2 years!
www.rallydev.com @zachnies! ©2013!
2008!
www.rallydev.com @zachnies! ©2013!
2012!
www.rallydev.com @zachnies! ©2013!
4 years!
www.rallydev.com @zachnies! ©2013!
“The Tesla Model S outscores every other car

in our test Ratings.” – Consumer Reports!
www.rallydev.com @zachnies! ©2013!
1979!
www.rallydev.com @zachnies! ©2013!
1989!
www.rallydev.com @zachnies! ©2013!
10 years!
www.rallydev.com @zachnies! ©2013!
5 years!
www.rallydev.com @zachnies! ©2013!
2.5 years!
www.rallydev.com @zachnies! ©2013!
1.5 years!
www.rallydev.com @zachnies! ©2013!
http://hbr.org/2013/03/big-bang-disruption/
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Disruption can
sneak up on you!
www.rallydev.com @zachnies! ©2013!
Impact on
companies!
www.rallydev.com @zachnies! ©2013!
500
www.rallydev.com @zachnies! ©2013!
Question:!
!
How long does the average company
on this list survive?!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
1958: !
Average lifespan was 61 years!
!
2012: !
Average lifespan was 18 years!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
8 years!
www.rallydev.com @zachnies! ©2013!
Incumbent
advantage

is going away !
www.rallydev.com @zachnies! ©2013!
How does this
impact Product
Development?!
www.rallydev.com @zachnies! ©2013!
Role of uncertainty!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Uncertainty!
High! Low!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Product lifecycle!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Product lifecycle!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Product lifecycle!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Disruption!
Product lifecycle!
www.rallydev.com @zachnies! ©2013!
Chaotic! Simple!Complicated!Complex!
Product lifecycle!
Disruption!
www.rallydev.com @zachnies! ©2013!
Take
Action!
Follow
Rules!
Analyze!
Guess &
Learn!
Chaotic! Simple!Complex! Complicated...
www.rallydev.com @zachnies! ©2013!
Take
Action!
Follow
Rules!
Analyze!
Guess &
Learn!
Chaotic! Simple!Complex! Complicated...
www.rallydev.com @zachnies! ©2013!
S
e
n
s
e
A
n
a
l
y
z
e
Uncertainty!
www.rallydev.com @zachnies! ©2013!
E
x
p
l
o
r
e
O
p
e
r
a
t
e
Uncertainty!
www.rallydev.com @zachnies! ©2013!
Aligning action

with uncertainty!
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/isaacmao/380257543
Create a plan to
predict the future!
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
Market research!
Product definition!
Product requirements!
Detailed plan!
Alpha release!...
www.rallydev.com @zachnies! ©2013!
HOW MANY
GUESSES?!
www.rallydev.com @zachnies! ©2013!
FIRST CONTACT
WITH POTENTIAL
CUSTOMERS!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/oregondot/4132135156
www.rallydev.com @zachnies! ©2013!
Obscure

the uncertainty

with details!
www.rallydev.com @zachnies! ©2013!
Embrace and
reveal

the uncertainty!
www.rallydev.com @zachnies! ©2013!
Sounds like

a startup!
www.rallydev.com @zachnies! ©2013!
How does

Eric Ries define

a Lean Startup?!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Where does
uncertainty live?!
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.....
www.rallydev.com @zachnies! ©2013!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.....
www.rallydev.com @zachnies! ©2013!
What to do!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Co...
www.rallydev.com @zachnies! ©2013!
What to do!
Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Co...
www.rallydev.com @zachnies! ©2013!
What to do!
Big

Companies!
Brown, Tim (2009-09-16). Change by Design (Kindle Location ...
www.rallydev.com @zachnies! ©2013!
Big
Companies!
http://www.flickr.com/photos/ironnickel/6076087519
www.rallydev.com @zachnies! ©2013!
Startups!
http://www.flickr.com/photos/elcapitan/2387917709
www.rallydev.com @zachnies! ©2013!
What we need

is a way to

discover the future!
www.rallydev.com @zachnies! ©2013!
Uncertainty!
Knowledge!
Experiments!
www.rallydev.com @zachnies! ©2013!
Discover the future!
Validate!Discover! Transition!
Business Model!
Vision and Empathy!...
www.rallydev.com @zachnies! ©2013!
“Get out of the
building!”!
Steve Blank!
www.rallydev.com @zachnies! ©2013!
“Meaning emerges
through
interaction”!
Dave Snowden!
www.rallydev.com @zachnies! ©2013!
Discover the future!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/b0jangles/7114571717
www.rallydev.com @zachnies! ©2013!
Vision and Empathy!
Discover the future!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/klearchos/4541072707
Vision!
www.rallydev.com @zachnies! ©2013!
The idea is not
the thing that
matters.!
www.rallydev.com @zachnies! ©2013!
What does
matter?!
!
According to Simon Sinek!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Why you’re doing
it matters.!
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/usarmyafrica/4553749920
Empathy!
www.rallydev.com @zachnies! ©2013!
Technology adoption
is a human
phenomenon !
www.rallydev.com @zachnies! ©2013!
Not a technological
phenomenon !
www.rallydev.com @zachnies! ©2013!
An example…!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Need human
centered approach!
www.rallydev.com @zachnies! ©2013!
Discover the future!
Business Model!
Vision and Empathy!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
Business Model!
www.rallydev.com @zachnies! ©2013!
Discover!
Discover!
Business Model!
Vision and Empathy!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
Discover!
Problem

Discovery!
We understand the
problem a customer

wants solved!
Disco...
www.rallydev.com @zachnies! ©2013!
http://www.flickr.com/photos/adactio/2535502416
www.rallydev.com @zachnies! ©2013!
Discover!
Solution

Validation!
Our product idea

solves the customer’s

problem!
Disco...
www.rallydev.com @zachnies! ©2013!
Video Demo (Landing Page)!
Concierge!
Wizard of Oz!
Crowd Funding

Single Key Feature!
...
www.rallydev.com @zachnies! ©2013!
Discover!
Business

Validation!
Our business model

can be profitable!
Discover!
www.rallydev.com @zachnies! ©2013!
High level business model!
http://www.forentrepreneurs.com/saas-metrics/
www.rallydev.com @zachnies! ©2013!
Discover the future!
Business Model!
Vision and Empathy!
Pivot

or

Persevere?!
Innovat...
www.rallydev.com @zachnies! ©2013!
Validate!
Validate!
Business Model!
Vision and Empathy!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
Validate!
Prepare to Sell!
The founders can:

Understand the flow of
money and sell the ...
www.rallydev.com @zachnies! ©2013!
You!
?
www.rallydev.com @zachnies! ©2013!
Validate!
Close
Deals!
Our draft sales plan will
close or activate
customers!
Validate!
www.rallydev.com @zachnies! ©2013!
Sales Funnel!
http://www.flickr.com/photos/carlagates247/5524789016
www.rallydev.com @zachnies! ©2013!
Validate!
Package
Offer!
We can package, price,
position and promote

our offer!
Valida...
www.rallydev.com @zachnies! ©2013!
For (target customers)!
Who (have the following problem)!
The (product name) is a (desc...
www.rallydev.com @zachnies! ©2013!
Discover the future!
Business Model!
Vision and Empathy!
Pivot

or

Persevere?!
Innovat...
www.rallydev.com @zachnies! ©2013!
Discover the future!
Transition!
Business Model!
Vision and Empathy!
Innovation Sandbox!
www.rallydev.com @zachnies! ©2013!
Transition!
Transition
Team!
We have budget and

assembled a cross-
department transiti...
www.rallydev.com @zachnies! ©2013!
Managing a Portfolio 

The Three Horizons Model!
Horizon 1
0 to 12 months
Horizon 2
12 ...
www.rallydev.com @zachnies! ©2013!
Transition!
Integrate
into Depts!
Transition!
Departments can take on
our new offer!
www.rallydev.com @zachnies! ©2013!
Inventors
Inventor to department transition
www.rallydev.com @zachnies! ©2013!
Orchestrator
Inventors Deployers
Departments
Inventor to department transition
www.rallydev.com @zachnies! ©2013!
Orchestrator
Inventors Deployers
Departments
Inventor to department transition
Product
...
www.rallydev.com @zachnies! ©2013!
Orchestrator
Inventors Deployers
Departments
Inventor to department transition
Product
...
www.rallydev.com @zachnies! ©2013!
Validate!
Roll off
Inventors!
We no longer need our
inventors on the team!
Transition!
www.rallydev.com @zachnies! ©2013!
Orchestrator
Inventors Deployers
Departments
Inventor to department transition
Product
...
www.rallydev.com @zachnies! ©2013!
Orchestrator
Inventors Deployers
Departments
Inventor to department transition
Product
...
www.rallydev.com @zachnies! ©2013!
Departments
Inventor to department transition
Product
Engineering
Marketing
Sales
www.rallydev.com @zachnies! ©2013!
Discover the future!
Validate!Discover! Transition!
Frame
Measure
Build
Learn
Business ...
www.rallydev.com @zachnies! ©2013!
Discover the future!
Frame
Measure
Build
Learn
Frame
Measure
Build
Learn
Frame
Measure
...
www.rallydev.com @zachnies! ©2013!
Guesses!
Knowledge!
Experiments!
www.rallydev.com @zachnies! ©2013!
Empathize & Frame!
Test & Measure!
Build&Ship!
Learn&Share!
Experiments!
www.rallydev.com @zachnies! ©2013!
TAKE EACH MAJOR
GUESS!
www.rallydev.com @zachnies! ©2013!
RUN AN EXPERIMENT!
www.rallydev.com @zachnies! ©2013!
http://www.youtube.com/watch?v=Iyjs3zeoSrM
www.rallydev.com @zachnies! ©2013!
http://www.richard-feynman.net/gallery.htm
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
Disciplined
exploration!
www.rallydev.com @zachnies! ©2013!
Your turn!
www.rallydev.com @zachnies! ©2013!
Background: What do you want to learn and why?
Frame the Experiment: What is your Probl...
www.rallydev.com @zachnies! ©2013!
Guess:

Removing our cubicle
walls will increase

the value we ship

to our customers!
www.rallydev.com @zachnies! ©2013!
The impact of
innovation is
changing!
www.rallydev.com @zachnies! ©2013!
Extend Agility into
your business!
www.rallydev.com @zachnies! ©2013!
Take advantage of
market
opportunities!
www.rallydev.com @zachnies! ©2013!
What happened to
this company?!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
www.rallydev.com @zachnies! ©2013!
1
Began Using Lean Startup1
2
$50M in New Product Revenue2
3
1800 Concurrent Experiment...
www.rallydev.com @zachnies! ©2013!
Books that informed this talk!
www.rallydev.com @zachnies! ©2013!
Geoffrey

Moore!
David Snowden!
Ash

Maurya!
Tim

Brown!
Clayton

Christensen!
Steve

B...
www.rallydev.com @zachnies! ©2013!
Go Agile. Go Rally.!
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Innovation and Enterprise Lean Startup

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Great companies build products that customers love. While this means they build valuable and useful features, it also means they don’t build things that aren’t valuable. Really great products and software are created by organizations that manage to put the customer at the center of their thinking and then work iteratively and incrementally to offer and test products to see what delights and what doesn’t.

The startup community has evolved disciplined practices that allow them to successfully navigate these highly uncertain environments. You aren’t a startup anymore, but these techniques can scale to your environment.

In this talk, you will learn the skills to become effective, disciplined explorers who know how to bring new features, products and services to market inside the context of a large company. This will allow you to successfully navigate uncertainty, while not sacrificing your ability to execute.

Published in: Technology, Business

Innovation and Enterprise Lean Startup

  1. 1. www.rallydev.com @zachnies! ©2013! Innovation in an Agile Portfolio Enterprise Lean Startup! Zach Nies – Chief Technologist!
  2. 2. www.rallydev.com @zachnies! ©2013! Zach Nies @zachnies Zach Nies, Chief Technologist Rally Software
  3. 3. www.rallydev.com @zachnies! ©2013!
  4. 4. www.rallydev.com @zachnies! ©2013! Font Sampler! http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeghttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg
  5. 5. www.rallydev.com @zachnies! ©2013!
  6. 6. www.rallydev.com @zachnies! ©2013!
  7. 7. www.rallydev.com @zachnies! ©2013! I love to change industries !
  8. 8. www.rallydev.com @zachnies! ©2013! Apply new
 disciplines!
  9. 9. www.rallydev.com @zachnies! ©2013! Become disciplined explorers…!
  10. 10. www.rallydev.com @zachnies! ©2013! who know how to balance exploration
 and execution!
  11. 11. www.rallydev.com @zachnies! ©2013! Build what
 people want!
  12. 12. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities!
  13. 13. www.rallydev.com @zachnies! ©2013! What happened to this company?!
  14. 14. www.rallydev.com @zachnies! ©2013!
  15. 15. www.rallydev.com @zachnies! ©2013!
  16. 16. www.rallydev.com @zachnies! ©2013! 1 2 5 iPhone Released1 iPhone App SDK Released2 Android w/ Nav Released5 Major Recession3 3 iPhone App Released4 4
  17. 17. www.rallydev.com @zachnies! ©2013! A lot can ! happen in
 1.5 years.!
  18. 18. www.rallydev.com @zachnies! ©2013! Is your business Agile enough?!
  19. 19. www.rallydev.com @zachnies! ©2013! Turn these disruptions into opportunities!
  20. 20. www.rallydev.com @zachnies! ©2013! What’s changing?!
  21. 21. www.rallydev.com @zachnies! ©2013! Time to excellence!
  22. 22. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif
  23. 23. www.rallydev.com @zachnies! ©2013! http://en.wikipedia.org/wiki/File:Disruptivetechnology.gif Excellence!
  24. 24. www.rallydev.com @zachnies! ©2013! Some examples…!
  25. 25. www.rallydev.com @zachnies! ©2013! 1984!
  26. 26. www.rallydev.com @zachnies! ©2013! 2006!
  27. 27. www.rallydev.com @zachnies! ©2013! About 20 years!
  28. 28. www.rallydev.com @zachnies! ©2013! 2001!
  29. 29. www.rallydev.com @zachnies! ©2013! 2006!
  30. 30. www.rallydev.com @zachnies! ©2013! 5 years!
  31. 31. www.rallydev.com @zachnies! ©2013! 2007!
  32. 32. www.rallydev.com @zachnies! ©2013! 2010!
  33. 33. www.rallydev.com @zachnies! ©2013! 3 years!
  34. 34. www.rallydev.com @zachnies! ©2013! 2010!
  35. 35. www.rallydev.com @zachnies! ©2013! 2012!
  36. 36. www.rallydev.com @zachnies! ©2013! 2 years!
  37. 37. www.rallydev.com @zachnies! ©2013! 2008!
  38. 38. www.rallydev.com @zachnies! ©2013! 2012!
  39. 39. www.rallydev.com @zachnies! ©2013! 4 years!
  40. 40. www.rallydev.com @zachnies! ©2013! “The Tesla Model S outscores every other car
 in our test Ratings.” – Consumer Reports!
  41. 41. www.rallydev.com @zachnies! ©2013! 1979!
  42. 42. www.rallydev.com @zachnies! ©2013! 1989!
  43. 43. www.rallydev.com @zachnies! ©2013! 10 years!
  44. 44. www.rallydev.com @zachnies! ©2013! 5 years!
  45. 45. www.rallydev.com @zachnies! ©2013! 2.5 years!
  46. 46. www.rallydev.com @zachnies! ©2013! 1.5 years!
  47. 47. www.rallydev.com @zachnies! ©2013! http://hbr.org/2013/03/big-bang-disruption/
  48. 48. www.rallydev.com @zachnies! ©2013!
  49. 49. www.rallydev.com @zachnies! ©2013! Disruption can sneak up on you!
  50. 50. www.rallydev.com @zachnies! ©2013! Impact on companies!
  51. 51. www.rallydev.com @zachnies! ©2013! 500
  52. 52. www.rallydev.com @zachnies! ©2013! Question:! ! How long does the average company on this list survive?!
  53. 53. www.rallydev.com @zachnies! ©2013!
  54. 54. www.rallydev.com @zachnies! ©2013! 1958: ! Average lifespan was 61 years! ! 2012: ! Average lifespan was 18 years!
  55. 55. www.rallydev.com @zachnies! ©2013!
  56. 56. www.rallydev.com @zachnies! ©2013!
  57. 57. www.rallydev.com @zachnies! ©2013! 8 years!
  58. 58. www.rallydev.com @zachnies! ©2013! Incumbent advantage
 is going away !
  59. 59. www.rallydev.com @zachnies! ©2013! How does this impact Product Development?!
  60. 60. www.rallydev.com @zachnies! ©2013! Role of uncertainty!
  61. 61. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Uncertainty! High! Low!
  62. 62. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Product lifecycle!
  63. 63. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Product lifecycle!
  64. 64. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Product lifecycle!
  65. 65. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Disruption! Product lifecycle!
  66. 66. www.rallydev.com @zachnies! ©2013! Chaotic! Simple!Complicated!Complex! Product lifecycle! Disruption!
  67. 67. www.rallydev.com @zachnies! ©2013! Take Action! Follow Rules! Analyze! Guess & Learn! Chaotic! Simple!Complex! Complicated! Uncertainty!
  68. 68. www.rallydev.com @zachnies! ©2013! Take Action! Follow Rules! Analyze! Guess & Learn! Chaotic! Simple!Complex! Complicated! Bureaucrat!Engineer!Firefighter! Entrepreneur! Uncertainty!
  69. 69. www.rallydev.com @zachnies! ©2013! S e n s e A n a l y z e Uncertainty!
  70. 70. www.rallydev.com @zachnies! ©2013! E x p l o r e O p e r a t e Uncertainty!
  71. 71. www.rallydev.com @zachnies! ©2013! Aligning action
 with uncertainty!
  72. 72. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/isaacmao/380257543 Create a plan to predict the future!
  73. 73. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  74. 74. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  75. 75. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  76. 76. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  77. 77. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  78. 78. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  79. 79. www.rallydev.com @zachnies! ©2013! Market research! Product definition! Product requirements! Detailed plan! Alpha release! Beta release! Final release! FIRST CONTACT WITH CUSTOMERS!
  80. 80. www.rallydev.com @zachnies! ©2013! HOW MANY GUESSES?!
  81. 81. www.rallydev.com @zachnies! ©2013! FIRST CONTACT WITH POTENTIAL CUSTOMERS!
  82. 82. www.rallydev.com @zachnies! ©2013!
  83. 83. www.rallydev.com @zachnies! ©2013!
  84. 84. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/oregondot/4132135156
  85. 85. www.rallydev.com @zachnies! ©2013! Obscure
 the uncertainty
 with details!
  86. 86. www.rallydev.com @zachnies! ©2013! Embrace and reveal
 the uncertainty!
  87. 87. www.rallydev.com @zachnies! ©2013! Sounds like
 a startup!
  88. 88. www.rallydev.com @zachnies! ©2013! How does
 Eric Ries define
 a Lean Startup?!
  89. 89. www.rallydev.com @zachnies! ©2013!
  90. 90. www.rallydev.com @zachnies! ©2013! Where does uncertainty live?!
  91. 91. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  92. 92. www.rallydev.com @zachnies! ©2013! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Level of uncertainty!
  93. 93. www.rallydev.com @zachnies! ©2013! What to do! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition. Operate!
  94. 94. www.rallydev.com @zachnies! ©2013! What to do! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  95. 95. www.rallydev.com @zachnies! ©2013! What to do! Big
 Companies! Brown, Tim (2009-09-16). Change by Design (Kindle Location 1984). Harper Collins, Inc.. Kindle Edition.
  96. 96. www.rallydev.com @zachnies! ©2013! Big Companies! http://www.flickr.com/photos/ironnickel/6076087519
  97. 97. www.rallydev.com @zachnies! ©2013! Startups! http://www.flickr.com/photos/elcapitan/2387917709
  98. 98. www.rallydev.com @zachnies! ©2013! What we need
 is a way to
 discover the future!
  99. 99. www.rallydev.com @zachnies! ©2013! Uncertainty! Knowledge! Experiments!
  100. 100. www.rallydev.com @zachnies! ©2013! Discover the future! Validate!Discover! Transition! Business Model! Vision and Empathy! Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Innovation Sandbox!
  101. 101. www.rallydev.com @zachnies! ©2013! “Get out of the building!”! Steve Blank!
  102. 102. www.rallydev.com @zachnies! ©2013! “Meaning emerges through interaction”! Dave Snowden!
  103. 103. www.rallydev.com @zachnies! ©2013! Discover the future! Innovation Sandbox!
  104. 104. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/b0jangles/7114571717
  105. 105. www.rallydev.com @zachnies! ©2013! Vision and Empathy! Discover the future! Innovation Sandbox!
  106. 106. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/klearchos/4541072707 Vision!
  107. 107. www.rallydev.com @zachnies! ©2013! The idea is not the thing that matters.!
  108. 108. www.rallydev.com @zachnies! ©2013! What does matter?! ! According to Simon Sinek!
  109. 109. www.rallydev.com @zachnies! ©2013!
  110. 110. www.rallydev.com @zachnies! ©2013! Why you’re doing it matters.!
  111. 111. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/usarmyafrica/4553749920 Empathy!
  112. 112. www.rallydev.com @zachnies! ©2013! Technology adoption is a human phenomenon !
  113. 113. www.rallydev.com @zachnies! ©2013! Not a technological phenomenon !
  114. 114. www.rallydev.com @zachnies! ©2013! An example…!
  115. 115. www.rallydev.com @zachnies! ©2013!
  116. 116. www.rallydev.com @zachnies! ©2013! Need human centered approach!
  117. 117. www.rallydev.com @zachnies! ©2013! Discover the future! Business Model! Vision and Empathy! Innovation Sandbox!
  118. 118. www.rallydev.com @zachnies! ©2013! Business Model!
  119. 119. www.rallydev.com @zachnies! ©2013! Discover! Discover! Business Model! Vision and Empathy! Innovation Sandbox!
  120. 120. www.rallydev.com @zachnies! ©2013! Discover! Problem
 Discovery! We understand the problem a customer
 wants solved! Discover!
  121. 121. www.rallydev.com @zachnies! ©2013! http://www.flickr.com/photos/adactio/2535502416
  122. 122. www.rallydev.com @zachnies! ©2013! Discover! Solution
 Validation! Our product idea
 solves the customer’s
 problem! Discover!
  123. 123. www.rallydev.com @zachnies! ©2013! Video Demo (Landing Page)! Concierge! Wizard of Oz! Crowd Funding
 Single Key Feature! Types of Minimum Viable Products!
  124. 124. www.rallydev.com @zachnies! ©2013! Discover! Business
 Validation! Our business model
 can be profitable! Discover!
  125. 125. www.rallydev.com @zachnies! ©2013! High level business model! http://www.forentrepreneurs.com/saas-metrics/
  126. 126. www.rallydev.com @zachnies! ©2013! Discover the future! Business Model! Vision and Empathy! Pivot
 or
 Persevere?! Innovation Sandbox!
  127. 127. www.rallydev.com @zachnies! ©2013! Validate! Validate! Business Model! Vision and Empathy! Innovation Sandbox!
  128. 128. www.rallydev.com @zachnies! ©2013! Validate! Prepare to Sell! The founders can:
 Understand the flow of money and sell the offer! Validate!
  129. 129. www.rallydev.com @zachnies! ©2013! You! ?
  130. 130. www.rallydev.com @zachnies! ©2013! Validate! Close Deals! Our draft sales plan will close or activate customers! Validate!
  131. 131. www.rallydev.com @zachnies! ©2013! Sales Funnel! http://www.flickr.com/photos/carlagates247/5524789016
  132. 132. www.rallydev.com @zachnies! ©2013! Validate! Package Offer! We can package, price, position and promote
 our offer! Validate!
  133. 133. www.rallydev.com @zachnies! ©2013! For (target customers)! Who (have the following problem)! The (product name) is a (describe the product or solution) ! That provides (key benefit) ! Unlike (reference competition),! The product/solution (describe the key point of competitive differentiation)! Product Positioning!
  134. 134. www.rallydev.com @zachnies! ©2013! Discover the future! Business Model! Vision and Empathy! Pivot
 or
 Persevere?! Innovation Sandbox!
  135. 135. www.rallydev.com @zachnies! ©2013! Discover the future! Transition! Business Model! Vision and Empathy! Innovation Sandbox!
  136. 136. www.rallydev.com @zachnies! ©2013! Transition! Transition Team! We have budget and
 assembled a cross- department transition team! Transition!
  137. 137. www.rallydev.com @zachnies! ©2013! Managing a Portfolio 
 The Three Horizons Model! Horizon 1 0 to 12 months Horizon 2 12 to 36 months Horizon 3 36 to 72 months Current Businesses Generate today’s cash flow High Growth Businesses Today’s revenue growth + tomorrow’s cash flow Growth Options Options on future high-growth businesses Expected Window of Returns AccumulatedTotalReturns Figure 2.4
  138. 138. www.rallydev.com @zachnies! ©2013! Transition! Integrate into Depts! Transition! Departments can take on our new offer!
  139. 139. www.rallydev.com @zachnies! ©2013! Inventors Inventor to department transition
  140. 140. www.rallydev.com @zachnies! ©2013! Orchestrator Inventors Deployers Departments Inventor to department transition
  141. 141. www.rallydev.com @zachnies! ©2013! Orchestrator Inventors Deployers Departments Inventor to department transition Product Engineering Marketing Sales
  142. 142. www.rallydev.com @zachnies! ©2013! Orchestrator Inventors Deployers Departments Inventor to department transition Product Engineering Marketing Sales
  143. 143. www.rallydev.com @zachnies! ©2013! Validate! Roll off Inventors! We no longer need our inventors on the team! Transition!
  144. 144. www.rallydev.com @zachnies! ©2013! Orchestrator Inventors Deployers Departments Inventor to department transition Product Engineering Marketing Sales
  145. 145. www.rallydev.com @zachnies! ©2013! Orchestrator Inventors Deployers Departments Inventor to department transition Product Engineering Marketing Sales
  146. 146. www.rallydev.com @zachnies! ©2013! Departments Inventor to department transition Product Engineering Marketing Sales
  147. 147. www.rallydev.com @zachnies! ©2013! Discover the future! Validate!Discover! Transition! Frame Measure Build Learn Business Model! Vision and Empathy! Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Innovation Sandbox!
  148. 148. www.rallydev.com @zachnies! ©2013! Discover the future! Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn Frame Measure Build Learn
  149. 149. www.rallydev.com @zachnies! ©2013! Guesses! Knowledge! Experiments!
  150. 150. www.rallydev.com @zachnies! ©2013! Empathize & Frame! Test & Measure! Build&Ship! Learn&Share! Experiments!
  151. 151. www.rallydev.com @zachnies! ©2013! TAKE EACH MAJOR GUESS!
  152. 152. www.rallydev.com @zachnies! ©2013! RUN AN EXPERIMENT!
  153. 153. www.rallydev.com @zachnies! ©2013! http://www.youtube.com/watch?v=Iyjs3zeoSrM
  154. 154. www.rallydev.com @zachnies! ©2013! http://www.richard-feynman.net/gallery.htm
  155. 155. www.rallydev.com @zachnies! ©2013!
  156. 156. www.rallydev.com @zachnies! ©2013!
  157. 157. www.rallydev.com @zachnies! ©2013!
  158. 158. www.rallydev.com @zachnies! ©2013! Disciplined exploration!
  159. 159. www.rallydev.com @zachnies! ©2013! Your turn!
  160. 160. www.rallydev.com @zachnies! ©2013! Background: What do you want to learn and why? Frame the Experiment: What is your Problem Statement? Write the Problem Statement from the Define worksheet here. What pain or problem is being experienced? [Customer Segment] needs a way to [describe job to be done], (because|but|surprisingly) [describe insight]. Hypothesis to Test [Specific repeatable action] will create [expected result]. Is this hypothesis falsifiable? Experiment Details Describe the experiment you plan to run and how you are going to attempt to falsify your hypothesis. Safety: How is the experiment safe to run and how will you recover? Describe how the experiment is safe to run. Describe how you will recover from running the experiment upon completion or if you discover it isn’t safe to run. Measures What will you measure to invalidate your hypothesis? What will you measure to indicate the experiment is safe to run? What will you measure to indicate you should amplify the experiment? Measures can be Qualitative and Quantitative. Experiment Backlog Stack ranked list of actions needed to run the experiment. Next Steps: Given what you learned, what’s next? Experiment Results and Learnings Describe what you learned from the experiment? Did you invalidate your hypothesis or does it live on? Experiment Name: Owner: Mentor: Date: I-2
  161. 161. www.rallydev.com @zachnies! ©2013! Guess:
 Removing our cubicle walls will increase
 the value we ship
 to our customers!
  162. 162. www.rallydev.com @zachnies! ©2013! The impact of innovation is changing!
  163. 163. www.rallydev.com @zachnies! ©2013! Extend Agility into your business!
  164. 164. www.rallydev.com @zachnies! ©2013! Take advantage of market opportunities!
  165. 165. www.rallydev.com @zachnies! ©2013! What happened to this company?!
  166. 166. www.rallydev.com @zachnies! ©2013!
  167. 167. www.rallydev.com @zachnies! ©2013!
  168. 168. www.rallydev.com @zachnies! ©2013! 1 Began Using Lean Startup1 2 $50M in New Product Revenue2 3 1800 Concurrent Experiments3
  169. 169. www.rallydev.com @zachnies! ©2013! Books that informed this talk!
  170. 170. www.rallydev.com @zachnies! ©2013! Geoffrey
 Moore! David Snowden! Ash
 Maurya! Tim
 Brown! Clayton
 Christensen! Steve
 Blank! Eric
 Ries! People who informed this talk! Brant Cooper Patrick Vlaskovits!
  171. 171. www.rallydev.com @zachnies! ©2013! Go Agile. Go Rally.!

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