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Lean Startup LAST Conference


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Presented on the 27th of July 2012 in Melbourne, Australia for the Lean and Agile Systems Thinking conference.

Published in: Technology, Business
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Lean Startup LAST Conference

  1. 1. Lean Startup LAST Unconference 2012 Renee Troughton
  2. 2. Learning Objectives Today you will: • Understand a new approach to requirements and benefits realisation • Understand what Lean Startup is • Understand how Lean Startup, Lean and Agile interrelate The Agile Revolution Podcast 2 Agile Forest Blog
  3. 3. What Is A Requirement? re-quire-ment [ri-kwahyuh-r-muhnt] Noun 1. That which is required; a thing demanded or obligatory 2. An act or instance of requiring 3. A need or necessity The Agile Revolution Podcast 3 Agile Forest Blog
  4. 4. The Requirements Dilemma A standard Agile team setup The Agile Revolution Podcast 4 Agile Forest Blog
  5. 5. The Standard Agile Approach Release Backlog The Agile Revolution Podcast 5 Agile Forest Blog 5
  6. 6. Who Is The Real Voice Of The Customer? In a “Lean startup”, who the customer is and what the customer might find valuable are unknown. Customers don’t care about how much time something takes to build. They care only if it serves their needs. The Agile Revolution Podcast 6 Agile Forest Blog
  7. 7. What is success? What if we found ourselves building something that nobody wanted? In that case what did it matter if we did it on time and on budget? The BIGGEST waste in the delivery of products is in delivering a product no one wants. The Agile Revolution Podcast 7 Agile Forest Blog
  8. 8. A True Measure of Success Is all of these AND: • Customer growth • Customer value • Business Revenue The Agile Revolution Podcast 8 Agile Forest Blog
  9. 9. A Lean Startup Measure of Success 100% 90% 80% 70% 60% Registered but didn’t log in Logged In 50% Used Functionality "x" once 40% Used Functionality "x" 5 times Paid 30% 20% 10% 0% Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Success is knowing that whether the requirements (hypotheses) we have implemented have resulted in customer growth, customer value or business revenue The Agile Revolution Podcast 9 Agile Forest Blog
  10. 10. Types Of Hypotheses Value The value hypothesis tests whether a product or service really delivers value to customers once they are using it. Growth The growth hypothesis tests how new customers will discover the product or service. Additionally you have to ensure new customers incoming > existing customers leaving. Revenue The revenue hypothesis tests whether the customer’s usage of a product or service results in the revenue return of investment against expectations. The Agile Revolution Podcast 10 Agile Forest Blog
  11. 11. What Is Lean Startup? An environment designed to create or enhance products and services under conditions of uncertainty. Ideas Learn Build Data Product Measure The Agile Revolution Podcast 11 Agile Forest Blog
  12. 12. Minimum Viable Products Build MVP Learn Measure The Agile Revolution Podcast 12 Agile Forest Blog
  13. 13. Cohort Analysis Build Learn Measure We want to measure customers as they familiarise themselves with the product for the first time. Each grouping of these customers is called a cohort. The Agile Revolution Podcast 13 Agile Forest Blog
  14. 14. Split-tests Cohorts are split evenly into two sub-groups – those that see the change and those that do not. Old Product New Product 50% 50% Homepage The Agile Revolution Podcast Agile Forest Blog 14
  15. 15. A Normal Agile Story Wall The Agile Revolution Podcast 15 Agile Forest Blog
  16. 16. A Lean Startup Story Wall The Agile Revolution Podcast 16 Agile Forest Blog
  17. 17. Pivot/Persevere Pivot A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth. Persevere A data driven confidence that we are making sufficient progress to believe that our original strategic hypothesis is correct. The Agile Revolution Podcast 17 Agile Forest Blog
  18. 18. Agile Principles • Collaboration • Motivated individuals • Value • Customer satisfaction • Adaptation • Deliver frequently • Sustainable pace • Simplicity • Self-organising teams • Reflective improvement The Agile Revolution Podcast 18 Agile Forest Blog
  19. 19. The Lean 7 Deadly Wastes The Agile Revolution Podcast 19 Agile Forest Blog
  20. 20. Why Lean Startup? Why Change? • We want to validate our benefits realisation hypotheses not just deliver efficiently • We want real customer data and feedback from new customers • We want be able to adjust our plan quickly based upon real customer data • We don’t want to waste unnecessary time delivering functionality that customers won’t use The Agile Revolution Podcast 20 Agile Forest Blog
  21. 21. Inflight example Site Performance (daily) Learnings: 120 1. Uptake of Feature A is not to expectations 2. We need to be able to test 100 multiple hypotheses at once 80 Hypotheses: 1. Providing links to Feature A inside of content will improve 60 uptake of MVP A 2. Moving button to be first for Feature A on the landing page 40 will improve the uptake of Feature A 3. Adding a indication of flow/status 20 bar to the key links on the landing page will improve the uptake of Feature A 0 11-Apr 12-Apr 13-Apr 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 28-Apr 29-Apr 30-Apr Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Total Visits Campaign Visits Feature A Start Feature A End Feature B Usage Feature C Usage The Agile Revolution Podcast 21 Agile Forest Blog
  22. 22. Where can I find out more? The Agile Revolution Podcast 22 Agile Forest Blog