Lean Startups
Zach Nies
@zachnies
100 years ago
Apply new  disciplinesto your startup
Become disciplined   explorers…
who know when to transitioninto execution
Increase your odds    of success
Why Am I Here   Today?
How I Got Here
Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg   http://en.wikip...
Great business,   team and    product
2,500,000Customers
Amazingteam, culture and process
Irrelevant
Live inside the Internet
What is a startup?
How do we navigate that uncertainty?
Explore     Execute          !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
When to explore vs    execute? A simple recipe
?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
Where are you?
?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
What to doExecute    ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
What to do   ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
What to do   BigCompanies     ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+...
BigCompanies            !"#$%%&&&R*L2.L56%#!505(%*.5//*L2,)%DC<DCN<:89>
Startups!"#$%%&&&R*L2.L56%#!505(%,)L-#*0-/%=SN<98<<C9>
What to doExecute    ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
Explore vs. Execute Becoming a chef
30 yearsof science
Unordered                    OrderedChaotic   Complex   Complicated Simple
Unordered                                                          Ordered                                                ...
Unordered                     Ordered          Complex   ComplicatedChaotic                           Simple
Unordered                Ordered      Complex    Complicated       Chaotic     Simple
Unordered                           Ordered Complex                           Complicated Cause & Effect is only    Cause ...
Music Industry in 2000 - Napster Complex                            Complicated  Independent              Managing a large...
Unordered       Ordered        E   E        x   x        p   e        l   c        o   u        r   t        e   e
Unordered       Ordered        P        r   P        e        p   l        a   a        r   n        e
Unordered           Ordered        E        n        t   G   M        r   e   a        e   n   n        p   e   a        r...
Ideal team sizesComplex                          Complicated < 30 People                < 150 People < 7 People           ...
Not Black and White Complex                                  Complicated              Create            market buzz       ...
Market Dynamics Complex                         Complicated            Product/market fit                   Disorder Chaot...
What to doExecute    ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
!"#$%%&&&R*L2.L56%#!505(%T*.04-),H,(,,%D8C<CD=D::>
Exploring
Create a plan thatpredicts the future
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
Market research               Product definition            Product requirements                    Detailed plan         ...
HOW MANY GUESSES?
CUSTOMER VALIDATION
!"#$%%&&&R*L2.L56%#!505(%5.,G5/+50%;8S=8S:8:D>
Createan environment that invents   the future
!"#$%%&&&R*L2.L56%#!505(%.+,L56%;S;S9=S;SN>
Disciplined way to   turn guesses into knowledge
Business Model
!"#$%%&&&R*L2.L56%#!505(%T*.04-),H,(,,%D8C<CD=D::>
Lean Startup
Customer Development
Explore     Execute          !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
Startups are NOT smaller versionsof big companies
Discover and solvecustomer’s problem
“Get out ofthe building!”Steve Blank
Explore          !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
!"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
!"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
!"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
TAKE EACH MAJOR GUESS
!"#$%%&&&H54041,L56%&-0L!UTVPHW(SX,5Y.Z>
Problem Discovery
Who isfeeling the pain?
What painare they feeling?
How do they makethe pain go away     today?
“Customers don’t care about your solution. They care about their problems.                  Dave McClure
!"#$%%&&&R*L2.L56%#!505(%.+,L56%;S;S9=S;SN>
Testable hypothesis
Maximize learning – Don Reinertsenhttp://jchyip.blogspot.com/2010/05/lean-software-and-systems-conference.html
Problem Interview OverviewRunning Lean by Ash Maurya, page 118.
!"#$%%&&&R*L2.L56%#!505(%-+-LM5%=:S::C=;8D>
Typical market research:Customer attributes
!"#$%%&&&R*L2.L56%#!505(%(,.#*L5)4G/40%8<=D8D9=9>
Innovation market research:Problem discovery
!"#$%%&&&R*L2.L56%#!505(%(,.#*L5)4G/40%8<=D8D9=9>
!"#$%%&&&R*L2.L56%#!505(%*/+*G5#.*6,%=;N8S;DD8D>
!"#$%%&&&R*L2.L56%#!505(%0&5(054065/2(%DD;S8;N9<>
Milkshake Test    What job isyour solution being hired to perform?
Solution Discovery
Validateprimary problems
Test yourlow fidelity MVP
Solution Interview OverviewRunning Lean by Ash Maurya, page 142.
Explore          !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
FindEarlyvangelists
Validate Positioning
Product PositioningFor (target customers)Who (have the following problem)The (product name) is a (describe theproduct or s...
Validate Roadmap
Sales Roadmap       N%S8%8C>                8C%SC%8C>                   8%U%88>                   S%U%88>       Release 1 ...
Validate Value
Get out and sell
Pivot    orPersevere?
Execute!"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
Explore     Execute          !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
Don’t waste40-120 hours  per week
buildingthe wrong business
Do what you love
Love what you do
“Not all those who wander  are lost                   J.R.R. Tolkien
Books that informed this talk
People who informed this talk David      Max        Ash       ClaytonSnowden    Boisot     Maurya   Christensen           ...
!"#$%%&&&R*L2.L56%#!505(%R-"5#S;8%==;:9<NSN>
@zachnies
Lean Startups
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Lean Startups

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This talk reveals the surprising science behind building successful startups. Even though building a startup is hard work with high failure risk, entrepreneurs Steve Blank and Eric Ries have popularized practices that can increase the odds of success. Following the Customer Development or Lean Startup practices will show you what to do. This talk will give you an understanding of why these techniques work, which will allow you to better apply them to your startup or scale them into your enterprise.

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Lean Startups

  1. 1. Lean Startups
  2. 2. Zach Nies
  3. 3. @zachnies
  4. 4. 100 years ago
  5. 5. Apply new disciplinesto your startup
  6. 6. Become disciplined explorers…
  7. 7. who know when to transitioninto execution
  8. 8. Increase your odds of success
  9. 9. Why Am I Here Today?
  10. 10. How I Got Here
  11. 11. Font Samplerhttp://media.kelbymediagroup.com/layersmagazine/images/columns/artoftype/may06/glyph-set.jpg http://en.wikipedia.org/wiki/File:Caslon-schriftmusterblatt.jpeg
  12. 12. Great business, team and product
  13. 13. 2,500,000Customers
  14. 14. Amazingteam, culture and process
  15. 15. Irrelevant
  16. 16. Live inside the Internet
  17. 17. What is a startup?
  18. 18. How do we navigate that uncertainty?
  19. 19. Explore Execute !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  20. 20. When to explore vs execute? A simple recipe
  21. 21. ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  22. 22. Where are you?
  23. 23. ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  24. 24. What to doExecute ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  25. 25. What to do ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  26. 26. What to do BigCompanies ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  27. 27. BigCompanies !"#$%%&&&R*L2.L56%#!505(%*.5//*L2,)%DC<DCN<:89>
  28. 28. Startups!"#$%%&&&R*L2.L56%#!505(%,)L-#*0-/%=SN<98<<C9>
  29. 29. What to doExecute ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  30. 30. Explore vs. Execute Becoming a chef
  31. 31. 30 yearsof science
  32. 32. Unordered OrderedChaotic Complex Complicated Simple
  33. 33. Unordered Ordered An example Chaotic Complex Complicated Simple!"#$%%&&&R*L2.L56%#!505(%2(*5/*L%SNS=;C;DN>
  34. 34. Unordered Ordered Complex ComplicatedChaotic Simple
  35. 35. Unordered Ordered Complex Complicated Chaotic Simple
  36. 36. Unordered Ordered Complex Complicated Cause & Effect is only Cause & Effect is not coherent in retrospect, obvious and requires and not repeatable analysis or expertise Cause & Effect is Cause & Effect not obvious to all perceivable and is repeatable Chaotic Simple
  37. 37. Music Industry in 2000 - Napster Complex Complicated Independent Managing a large tour musicians self publishing online Disorder Managing a NIN tour Major label online distribution CD distribution Chaotic SimpleUnordered Ordered
  38. 38. Unordered Ordered E E x x p e l c o u r t e e
  39. 39. Unordered Ordered P r P e p l a a r n e
  40. 40. Unordered Ordered E n t G M r e a e n n p e a r r g e a e n l r e u r
  41. 41. Ideal team sizesComplex Complicated < 30 People < 150 People < 7 People > 150 PeopleChaotic Simple
  42. 42. Not Black and White Complex Complicated Create market buzz Sales comp plans Increasing Terms of signups service Disorder > Server Ordering hacked office supplies Chaotic SimpleUnordered Ordered
  43. 43. Market Dynamics Complex Complicated Product/market fit Disorder Chaotic SimpleUnordered Ordered
  44. 44. What to doExecute ?.5&/@>A*6>B=CC93C938DE>F!-/G,>1H>I,(*G/>BJ*/+),>K5L-M5/>89N;E>O-.#,.>F5))*/(@>P/L>J*/+),>Q+*M5/>>
  45. 45. !"#$%%&&&R*L2.L56%#!505(%T*.04-),H,(,,%D8C<CD=D::>
  46. 46. Exploring
  47. 47. Create a plan thatpredicts the future
  48. 48. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  49. 49. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  50. 50. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  51. 51. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  52. 52. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  53. 53. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  54. 54. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  55. 55. Market research Product definition Product requirements Detailed plan Alpha release Beta release Final releaseFIRST CONTACT WITH CUSTOMERS
  56. 56. HOW MANY GUESSES?
  57. 57. CUSTOMER VALIDATION
  58. 58. !"#$%%&&&R*L2.L56%#!505(%5.,G5/+50%;8S=8S:8:D>
  59. 59. Createan environment that invents the future
  60. 60. !"#$%%&&&R*L2.L56%#!505(%.+,L56%;S;S9=S;SN>
  61. 61. Disciplined way to turn guesses into knowledge
  62. 62. Business Model
  63. 63. !"#$%%&&&R*L2.L56%#!505(%T*.04-),H,(,,%D8C<CD=D::>
  64. 64. Lean Startup
  65. 65. Customer Development
  66. 66. Explore Execute !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  67. 67. Startups are NOT smaller versionsof big companies
  68. 68. Discover and solvecustomer’s problem
  69. 69. “Get out ofthe building!”Steve Blank
  70. 70. Explore !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  71. 71. !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  72. 72. !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  73. 73. !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  74. 74. TAKE EACH MAJOR GUESS
  75. 75. !"#$%%&&&H54041,L56%&-0L!UTVPHW(SX,5Y.Z>
  76. 76. Problem Discovery
  77. 77. Who isfeeling the pain?
  78. 78. What painare they feeling?
  79. 79. How do they makethe pain go away today?
  80. 80. “Customers don’t care about your solution. They care about their problems. Dave McClure
  81. 81. !"#$%%&&&R*L2.L56%#!505(%.+,L56%;S;S9=S;SN>
  82. 82. Testable hypothesis
  83. 83. Maximize learning – Don Reinertsenhttp://jchyip.blogspot.com/2010/05/lean-software-and-systems-conference.html
  84. 84. Problem Interview OverviewRunning Lean by Ash Maurya, page 118.
  85. 85. !"#$%%&&&R*L2.L56%#!505(%-+-LM5%=:S::C=;8D>
  86. 86. Typical market research:Customer attributes
  87. 87. !"#$%%&&&R*L2.L56%#!505(%(,.#*L5)4G/40%8<=D8D9=9>
  88. 88. Innovation market research:Problem discovery
  89. 89. !"#$%%&&&R*L2.L56%#!505(%(,.#*L5)4G/40%8<=D8D9=9>
  90. 90. !"#$%%&&&R*L2.L56%#!505(%*/+*G5#.*6,%=;N8S;DD8D>
  91. 91. !"#$%%&&&R*L2.L56%#!505(%0&5(054065/2(%DD;S8;N9<>
  92. 92. Milkshake Test What job isyour solution being hired to perform?
  93. 93. Solution Discovery
  94. 94. Validateprimary problems
  95. 95. Test yourlow fidelity MVP
  96. 96. Solution Interview OverviewRunning Lean by Ash Maurya, page 142.
  97. 97. Explore !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  98. 98. FindEarlyvangelists
  99. 99. Validate Positioning
  100. 100. Product PositioningFor (target customers)Who (have the following problem)The (product name) is a (describe theproduct or solution)That provides (key benefit)Unlike (reference competition),The product/solution (describe the keypoint of competitive differentiation)
  101. 101. Validate Roadmap
  102. 102. Sales Roadmap N%S8%8C> 8C%SC%8C> 8%U%88> S%U%88> Release 1 Release 2 Release 3 Release 4Theme: UI Theme: Reporting Theme: Dashboards Theme: AdminFor X, this UI release For <who>, this release For <who>, this release For <who>, this releaseprovides <what value> provides <what value> provides <what value> provides <what value>Key Features: Key Features: Key Features: Key Features: 1. Feature A 4. Feature B’ 7. Feature B’’ 10. Feature F 2. Feature B 5. Feature C’ 8. Feature D’ 11. Feature G 3. Feature C 6. Feature D 9. Feature E
  103. 103. Validate Value
  104. 104. Get out and sell
  105. 105. Pivot orPersevere?
  106. 106. Execute!"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  107. 107. Explore Execute !"#$%%&&&()*+,(!-.,/,0%(1)-/2%0!,3(0-.04#35&/,.(36-/4-)3(7(&3889:;<=;>
  108. 108. Don’t waste40-120 hours per week
  109. 109. buildingthe wrong business
  110. 110. Do what you love
  111. 111. Love what you do
  112. 112. “Not all those who wander are lost J.R.R. Tolkien
  113. 113. Books that informed this talk
  114. 114. People who informed this talk David Max Ash ClaytonSnowden Boisot Maurya Christensen Frank H. Eric Knight RiesGeoffrey Steve Moore Blank
  115. 115. !"#$%%&&&R*L2.L56%#!505(%R-"5#S;8%==;:9<NSN>
  116. 116. @zachnies

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