… developing solutions that cannot be specified entirely upfront… delivering customer value… involving a customer in software development… (iterative) product delivery - you build good products!
Webvan: IPO? VC investment?Not profitable Order: Wave was confusing, and ended up with no customers; Geo Cities had many users, but no business model; Webvan had a business model, but it wasn’t a profitable “I think GeoCities was the first proof that you could have something really popular and still not make any money on the internet”Webvan: Poster child of premature scaling Grocery business has razor-thin margins to begin with, it was never able to attract enough customers to justify its spending spree
What do you need for a successful business?
Remarks: key partners is more than just outsourcing Can be more strategic (e.g. a channel partner, co-marketing, combined product offering)
On LeanKanbanwe can ask the audience, and show filed by field. On XP Day we will do the workshop, and then ask each group and also show what we got.
Remark: link back to the examples
What are the major risks?
Explain what it is on the high level Spend less time on details
Perhaps we should “rub it in” – it sounds too logical as it is
Good for very early feedback, or choosing between alternativesMention measuring already
There is no difference between concierge and wiz of oz
This experimentation approach does not stop when the product is finally deployed to users. You treat your feature/improvement ideas as hypotheses. You build them (or a minimal version that will allow you to learn) and deply as fast as possible. Agile practices are essential. You have to be able to iterate quickly and respond rapidly to customer feedback. Then you measure. You measure behaviour your feature was supposed to promote (e.g. whether email notifications bring customers back to the product), and monitor metrics that are relevant for your business. You also solicit feedback from your customers: both online, and face to face (e.g. usability tests). Pivoting at this later stage may mean simply rolling back the change (if it proves to have adverse – or even zero – effect). If you encountered a problem, you want to make sure you are dealing with it systemically, therefore root-causing (e.g. using 5Y). This practice can be also integrated with retrospects.
It is very confronting (you open yourself up to not being right) – you stare death in the eyesOpportunistic: try to land the customer (e.g. in customer interviews)
Automatic What Personal will you Communities need to What do ? Who areWhat can master? you offer? youryou Value? customeroutsource Uniqueness s?to whom? ? What do How to you need communicat to build e & up? deliver? How will What you make are my money? costs?
Groupon: deal of the day in your inbox.Get 50%-90% off the best stuff your city has to offer. Your own idea?
Merchant Personal/Call Acquisition Centers Copy-writing Automated/ Deal New, local Merchants E-mail selection customers (guarantee #) Consumers Discounts Direct sales Email DB Google ads Personalization engine Social media Website 50% commission Cust. acquisition Merchant (30% of revenue) 20% unfulfilledAcquisition (sales = groupons ½ employees) Churn
parkr™ Bootstrapping: parking scouts SMS Help find Drivers in parking Mobile appGPS producers cities Monetize Near-location unused notifier + UI parking App store Community Viral User credit cards Micro Community commission Platform (parking spotter)
parkr™ Bootstrapping: parking scouts SMS Help find parking Mobile app Drivers inGPS producers cities Monetize Near-location unused notifier + UI parking App store Community Viral User credit cards Micro commission Community Platform (scouts)
Customers Problemdo I know who they are & how to reach top 3 customer problems? them? Pain level: must have vs nice to Segment? Early adopter? have Roles: user, economic buyer, Awareness: active vs. latent influencer, saboteur? How do they search for Alternatives : how do they deal products? with these problems today? Solution top 3 product features? Do they solve the top 3 problems? Barriers to adoption (e.g. fit/integration with existing workflow)? Is my price accepted?
A 1st problem is… Would you pay $20 aDoes this resonate with month to use a tool likeyou? How do you deal this?with it today?Is it a must-have?... This is how our solution looks today (screen per problem). Which of the screens resonated the most? Which could you live without? Are there any additional features you think are missing? Use Mocks
Trouble Parking in Brussels?www.parkr.comFind parking when you need it.Park easily in busy streets of BrusselsPaying too much for parking?www.parkr.comMonetize your unused parking time andhelp others find free parking!
Document Hypotheses Pivot or Experimentpersevere
CHEATSHEET Customer problem pivot: same product, same segment, different problem Change of an aspect of Starbucks : started selling coffee beans & espresso makers Segment pivot: same product , similar problem, a business model different set of customers e.g. consumers aren’t buying, enterprises have a similar problem Successful startups Sometimes a pure marketing change Technology pivot: repurpose the technology to solve a change direction quickly more pressing or marketable problem Product feature pivot: remove features for focus, or to Based on learning add features for a more holistic solution pay close attention to what real customers are doing Revenue model pivot e.g. from a premium customized, to a low price commoditized solution Grounded in the vision e.g. from a one-time sale to monthly subscription or license fees e.g. razor versus blade strategy They keep one foot in the Sales channel pivot: use lessons learned from customers to switch from direct sales past and place one foot in E.g. distribution channel, ecommerce, white-labeling … Product versus services pivot: if products are too a new possible future different or too complex to be sold effectively to the customer with the problem bundle support services with the product, education offerings... Vision: search space Major competitor pivot: react when a major new player or competitor jumps into your space one of the above pivots to build your differentiation and stay alive
Parkr™ foursquare for parking spots Bootstrapping: parking scouts SMS Help find parking Community Drivers inGPS producers cities Monetize Near-location unused notifier + UI parking App store Community Viral Cities Promoting User credit public cards Mobile app transport App fee Micro Building commission Platform Community City budget (critical mass)
IDEAS Pivot Continuous LEARN BUILDRoot-cause deployment SPEED! DATA PRODUCT MEASURE Metrics Lean startup Feedback build-measure-learn loop by Eric Ries
Counter-intuitive and Speed beyond comfort zone If you’re really on to something, there are other Learn from the data 4-5 companies pursuing a similar vision You don’t get a gold star for following the process Techniques helpful, but It’s okay to be you need to be very opportunistic creative …but stay grounded in your vision Emotional rollercoaster Find mentors
Lean Startup by Eric Ries Tools startuplessonslearned.com leancanvas.com theleanstartup.com/book leanlaunchlab.com sllconf.com usertesting.com Steve Blank KissMetrics, Piwik steveblank.com uservoice.com steveblank.com/books.html Ash Maurya More references ashmaurya.com businessmodelgeneration.com runningleanhq.com (book) venturehacks.com Dave McClure 500hats.typepad.com AARRR: Startup metrics for paulgraham.com pirates news.ycombinator.com/ Even more: steveblank.com/tools-and- blogs-for-entrepreneurs
Lean Startup Circle Talk to us Brussels ICAB, Beta Group Co- Vladimir Blagojevic Working space ▪ vladimir .email@example.com www.meetup.com/lean- ▪ launched.be brussels/ ▪ @vladblagi Startup Weekend Brussels /Eindhoven Nick Boucart Lean Startup Machine ▪ firstname.lastname@example.org Rotterdam ▪ Blog.sirris.be betagroup.be ▪ @nickboucart Founder Institute ▪ Book: The art of software innovation & MIC westartup .eu techbrew.be