Lean Startup – how it all started

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Short introduction to Lean Startup, where does it come from and what does it mean.
Lean Startup has become very popular in startup scene in the last few years. But how is Lean Startup affecting MBA programs? This presentation was given to MBA students at Cotrugli International Business School Alumni Forum.

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Lean Startup – how it all started

  1. 1. Lean Startup – How it all started? Alumni Forum Zagreb, October 17th By; Miro Hegedić
  2. 2. About me # Lean Thinker # Faculty of Mechanical Engineering and Naval Architecture # Startup founder # Co-Founder of Lean Startup Croatia # Lean Consultatnt
  3. 3. More Than 90% Tech Startups Fail
  4. 4. Why? Startups don’t build what customers really want More startups fail from a lack of customer than from a failure of product development
  5. 5. Hypothesis & Startup? Who is your customer? What problem do you solve? What is the solution for the problem www.leanstartupmachine.com
  6. 6. Hypothesis & Startup? Who is your customer? What problem do you solve? Do NOT define a solution What is the solution for until you’ve validated the problem! the problem www.leanstartupmachine.com
  7. 7. Lean Start(up) Eric Ries Co-founded IMWU In 2004 Steve Blank Invested in IMWU
  8. 8. Customer Development
  9. 9. Erice Ries i IMWU Eric Ries – founder of Lean Startup Eric wrote about his experience on blog The Movement That is Transforming How New Products are Built and Launched
  10. 10. The Lean Startup Book In 2011 – the book was published Eric Ries – founder of Lean Startup Available in Croatian
  11. 11. Startup Startups exist not just to make stuff, make money, or even serve customers. -- Eric Ries They exist to learn how to build a sustainable business.
  12. 12. Two words Lean & Startup „A human institution designed to create a new product or service under conditions of extreme uncertainty„ -- Eric Ries
  13. 13. Lean Thinking MIT: Why Japanese automotive industry is so competitive? Based on: Toyota Production System Lean – a way to eliminate waste and improve efficiency in processes. Lean is a new way of thinking!
  14. 14. Automotive industry in 1980s Productivity (hours/ vehicle) 16.8 25.1 Start of production to market (months): 1 4
  15. 15. Automotive industry in 1980s Improvement proposals / Employee 61.6 0.4 0.2 2.9 Inventory (days):
  16. 16. Connection? 1) Define value (customer’s viewpoint) 2) Eliminate waste The biggest waste is to produce something what customer doesn’t want!
  17. 17. Agile Scrum
  18. 18. & Lean Starup Leap- of- faith question: if we can provide a superior customer experience, will people give our product a try? Beta waiting list 4 min video 75000 80000 70000 60000 50000 40000 30000 20000 Customers often don’t know what they want! 10000 5000 0 Before After
  19. 19. & Lean Starup Drew Houston, Dropbox CEO on lessons learned
  20. 20. It can be implemented everywhere! From startups to establish business
  21. 21. Read more about at: www.netokracija.hr Thank you!

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