Lean Product Development for Startups- Denver Startup Week


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Mark Geene, CEO/Co-founder of Cloud Elements presented "Lean Product Development for Startups" at Denver Startup Week 2013. Check out the presentation for information on how to build a Lean startup. Based on principles from 'Lean Startup' by Eric Ries, 'Running Lean' by Ash Maurya and '500 Startups' by Dave McClure.

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  • DJH: Adjusted the Spacing so that it looked more natural.
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  • Please udate with the final version of this graphicDJH: Rebuilt the slide completely and resized the graphics (used a PDF so that the black background is used)
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  • Lean Product Development for Startups- Denver Startup Week

    1. 1. Lean product development 101 mark geene @mgeene
    2. 2. Confidential & Proprietary LEAN Product development PRINCIPLES What’s “Lean”? Creating the maximum value while applying the fewest amount of resources (e.g., people, capital)
    3. 3. Confidential & Proprietary BUILD-MEASURE-LEARN FEEDBACK LOOP* *Lean Startup, Eric Ries
    4. 4. Confidential & Proprietary LEAN Product development PRINCIPLES 1. Build the right thing; By iterating 2. Discover problems by talking to customers 3. More features are not the answer 4. Determine Problem/Solution Fit with an MVP 5. Measure Results … AARRR
    5. 5. Confidential & Proprietary Problem/solution fit • Is this a problem worth solving? • Must-Have (Is it something customers/users need?) • Viable (Will they pay for it?) • Feasible (Can it be solved with available resources?) • Minimum Viable Product (MVP) • Purpose is to address problem/solution fit • Minimum set of features required to learn from “earlyvangelists” • Visionary Early Adopters are the initial targets for MVP • Visionary customers can “fill in the gaps” on missing features if the MVP product solves a real problem • “Do the smallest thing possible to learn” • Test your hypothesis, learn and iterate Running Lean, Ash Maurya, Lean Startup, Eric Ries
    6. 6. Confidential & Proprietary STARTUP METRICS FOR pirates* • Acquisition – Are users finding you? • Activation – Do users have a great first experience? • Retention – Do users come back? • Referral – Do users like it enough to tell others? • Revenue – Are users willing to pay for it? * Dave McClure, 500 Startups
    7. 7. Confidential & Proprietary About Cloud Elements Cloud Elements is a API Management Service that reduces the time and cost required for developers to integrate, monitor and maintain cloud services by consolidating APIs into “one-to-many” hubs
    8. 8. Confidential & Proprietary Element Hubs: 1 to Many Integrations Documents Hub Example: Other Document Services Your APP 7 API
    9. 9. Confidential & Proprietary API Management service
    10. 10. Confidential & Proprietary 7 STEP MVP process 1. Form a hypothesis that you want to test  “Developers spend too much time integrating cloud services” 2. Develop a small set of (measurable) questions to illuminate the problem  How many services have you integrated?  How many do you plan to integrate?  Which services?  How much time did it take to integrate each?  How much time do you spend maintaining each?
    11. 11. Confidential & Proprietary 7 STEP MVP process 3. Define the MVP  Uniform API for SendGrid and Twilio  Integrate only; no monitoring or maintenance features 4. Build the MVP  (More on this later …) 5. Measure the MVP’s impact on the hypothesis  Reduce time spent integrating by 50% or more  Spread cost over 3 years or 5 years?
    12. 12. Confidential & Proprietary 7 Step MVP Process 6. Use early adopters to find the high impact use cases  App developers who need to integrate to multiple providers of the same type of service  Managing tens, hundreds, thousands of different user accounts for each service 7. Prioritize Release-1 based on the above  Prioritize based on the highest impact use case  Back away from non-essential features
    13. 13. Confidential & Proprietary Sleep machine example Problem: Help people who live in noisy areas to sleep better Hypothesis: Customers would rather use their iPhone than dedicated sleep machines or alarm clocks • 90+ Sounds Available • Mix your own sleep tracks • Beautiful digital clock • Alarm with favorite songs • Captures sleep data and analytics
    14. 14. Confidential & Proprietary AGILE MVP PLANNING 1. Who are the users?  Define user personas 2. What are “all” of the key features that I can think of?  Identify the Epics 3. What is my objective for the MVP release?  Document the hypothesis you are testing 4. Which Epics are required for my MVP?  Prioritize Epics
    15. 15. Confidential & Proprietary Epics in Pivotal tracker Hint: Once entered you can drag and drop them to prioritize.
    16. 16. Confidential & Proprietary AGILE MVP PLANNING 5. What do these prioritized features/epics need to do?  Identify all of the user stories you can think of  INVEST (Independent, Negotiable, Valuable, Estimated, Small, Testable)  Assign each one to an Epic or create new Epics 6. Is this story required to determine Problem/Solution Fit?  MVP Test Every Story 7. How long will it take to develop my MVP  Estimate “points” for each user story  Estimate “capacity” for your development team
    17. 17. Confidential & Proprietary Stories In Pivotal tracker Hint: Once entered you can drag and drop them to prioritize.
    18. 18. Confidential & Proprietary THE MVP TEST Test each user story to determine if it belongs in the MVP • Does it support the MVP hypothesis and objective? • Is it essential to your primary use case? • Is it essential to solving the highest value problem? • Are your customers saying this is a “must have”? • Focus on your “visionary” customers • Don’t get dragged around by one or two vocal clients • Can I fit it into a two-month development effort? • How does it stack up against your other MVP priorities • Draw a line in the sand for a release date and then cull what doesn’t fit
    19. 19. Confidential & Proprietary Writing user stories • As a [Persona], I want to [capability or function], so that [result or benefit] • INVEST • Independent • Negotiable • Valuable • Estimated • Small • Testable
    20. 20. Confidential & Proprietary AGILE MVP PLANNING 8. What should we work on next?  Organize stories into 2-Week Sprints  Groom each story with acceptance criteria 9. How are we doing?  Sprint Demo Reviews after every Sprint 10. What if my priorities change?  Every 2 weeks prioritize stories for the next sprint  Take into account market feedback Release, Get Feedback, Repeat
    21. 21. Confidential & Proprietary Common MISTAKES 1. Include too many features; start new ones too soon 2. Lack timely visibility to development progress 3. Not quantitatively capturing feedback from users and customers 4. Focused on “your solution” and not on “their problems” 5. Your development team is too optimistic leading to too many commitments 6. Lack of a product roadmap leads to any client being a good client 7. Chasing the competition
    22. 22. Confidential & Proprietary summary • Apply Lean Product Management & Development Principles from Day 1 • Don’t over-engineer; get to MVP in two months or less • Manage your priorities at the Epic level downward to focus and save time in managing your backlog • Your priorities and plan WILL change … Embrace it
    23. 23. Confidential & Proprietary product/market fit • Is this something (lots of) people want? • How well does my product solve the problem? • What value does it deliver over other alternatives? • Will they pay for it? • Qualitative Discovery • Quantitative Discovery Running Lean, Ash Maurya