Can MVP help Government innovate like a Startup?

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Presentation I gave to GOVIS, 2012 in Weelington New Zealand on how Minimum Viable Product can help Government innovate like a Lean Start Up. It's all in the Business Model !

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Can MVP help Government innovate like a Startup?

  1. 1. Can  MVP  help   Government  innovate     like  a  Startup?   By  Ant  Boobier  ©  Equinox  Limited  
  2. 2.  Currently  Government   InsCtuCons  need  to   deliver  a  Product  or   Service  under   condiCons  of  budgetary   uncertainty  ©  Equinox  Limited  
  3. 3.  Currently  Government   InsCtuCons  need  to   deliver  a  Product  or   Service  under   condiCons  of  budgetary   uncertainty  ©  Equinox  Limited  
  4. 4. “  A  Startup  is  a  Human     InsCtuCon  designed  to   deliver  a  Product  or   Service  under   condiCons  of  extreme   uncertainty  ”   -­‐  Eric  Ries  ©  Equinox  Limited  
  5. 5. “Breakthrough  innovaCons   come  when  the  tension  is   greatest  and  the  resources   are  most  limited”   -­‐  Dr  Clayton  M  Christensen  ©  Equinox  Limited  
  6. 6. Startup  =  Experiment   Test  your  assumpCons  and  get  early  feedback   from  your  customers…  ©  Equinox  Limited  
  7. 7. Startup  =  Experiment   Test  your  assumpCons  and  get  early  feedback   from  your  customers…  ©  Equinox  Limited  
  8. 8. Lean  Startup  is  a  synthesis  of   1.  Customer  Development     2.  Agile  SoSware  Development   3.  Lean  Principles  and  PracCces  ©  Equinox  Limited  
  9. 9. Customer  Development    working  out  what  to  build  through  conCnuous   customer  feedback   1.  test  the  assumpCons  about  the   customer  problem   2.  test  if  the  product  concept  and   minimum  feature  set  solve  that   problem  ©  Equinox  Limited  
  10. 10. Agile  SoSware  Development     •  An  empowered  customer  champion   •  Early  delivery  of  business  value   •  Breaking  big  problems  into  smaller  ones   •  Building  SoSware  IteraCvely  and  incrementally   •  Risk  miCgaCon:  address  issues  and  dependencies  early   •  ConCnuous  process  improvement  and  good  pracCce  ©  Equinox  Limited  
  11. 11. Lean  ©  Equinox  Limited  
  12. 12. Value  can  only  be  defined  by  the   ulCmate  customer    Value  is  not  in  the  crea/on  of   stuff,  but  validated  learning   and  confirma/on  that  we   have  built  the  right  stuff   Eric  Ries  *I  was  going  to  include  a  picture  on  this  slide,  but  it  didn’t  add  any  value  ©  Equinox  Limited  
  13. 13. Waste    “ There  is  surely  nothing   quite  so  useless  as   doing  with  great   efficiency  what  should   not  be  done  at  all”   -­‐  Peter  Drucker   The  ul:mate  waste  is  building     something  that  no-­‐one  wants  ©  Equinox  Limited  
  14. 14. How  do  we  stop  that  Waste?   Build  a  Minimum  Viable  Product     Measure  the  Response   Learn   Use  smaller  iteraCons  for  tesCng  a  vision  ©  Equinox  Limited  
  15. 15. Source:  Eric  Ries  –  Lean  Start  Up  ©  Equinox  Limited  
  16. 16. What  is  a  Minimum  Viable  Product?   •  the  most  basic  design  that  helps  us  validate   our  assumpCons   •  allows  a  team  to  collect  the  maximum   amount  of  validated  learning  about  our   customers  with  the  least  effort   Simply  Simplify  ©  Equinox  Limited  
  17. 17. MVP  for  Government   •  Release  in  small  increments   to  the  customer,  instead  of   saving  up  a  big-­‐bang  release   Cll  the  end   •  Each  increment  should   independently  add  value  to   the  customer  and  provide   learning  to  the  team  ©  Equinox  Limited  
  18. 18. MVP  for  US  Department  of  Health   and  Human  Services    Mandate  –  to  build  a  health  reform  consumer   service  in  just  3  months   •  Healthcare.gov  launched   successfully  on  Cme,  1st  July  2010   •  Used  MVP  Approach   •  Team  of  just  5  people   •  Since  launch  5.7  million  viewers   have  visited  the  Portal   Todd  Park,  CTO    ©  Equinox  Limited   www.startuplessonslearned.com/2012/05/lean-­‐government.html  
  19. 19. Government  MVP   Slicing  up  a  large  problem  to  deliver  incrementally   •  Geographic  locaCon   •  Type  of  service   •  Type  of  user   source  Henrik  Kniberg  ©  Equinox  Limited  
  20. 20. Take  Time  to  Measure  and  Learn    Use  your  MVP  to  Test  your  Product  or  Service   assumpCons…              ….  because  aSer  all  they  are,   untested  assumpCons  ©  Equinox  Limited  
  21. 21. Take  Time  to  Measure  and  Learn    Use  your  MVP  to  Test  your  Product  or  Service   assumpCons…              ….  because  aSer  all  they  are,   untested  assumpCons  ©  Equinox  Limited  
  22. 22. How  can  we  learn  more  quickly   what  works,  and  discard  what   doesnt?  ©  Equinox  Limited  
  23. 23. Decisions  based  on  metrics  from  these  experiments  is  what  propels  the  Lean  Startup  forward   persevere       pivot  per·∙se·∙vere      piv·∙ot      verb  ˌpər-­‐sə-­‐ˈvir    noun  ˈpi-­‐vət    Scale  and  grow    change  in   your  Product  or   strategy   service  with   without  a   maximum   change  in   acceleraCon   vision  ©  Equinox  Limited  
  24. 24. “Through  this  process  of  steering,  we  can  learn  when  and  if  it’s  /me  to  make  a  sharp  turn  called  a  pivot  or  whether  we  should  persevere  along  our  current  path.”   -­‐  Eric  Ries   seve re     Per P ivot     ©  Equinox  Limited  
  25. 25. Governance,  the  Steering  CommiIee   •  Governance  is  not  adherence  to  a  flawed  plan   •  Validate  assumpCons  of  the  business  model   •  Decisions  based  on  measurable  results  ©  Equinox  Limited  
  26. 26. Steer  away   from  the  staCc     business  case   •  You  don’t  know  if   you’re  wrong  unCl  final   compleCon   •  Don’t  bury  important   assumpCons   •  A  large  business  case   largely  built  on   untested  assumpCons  ©  Equinox  Limited   is  a  form  of  waste  
  27. 27. Driving  the  Dynamic  Business  Model    Focus  on  the  Tangibles     Updated  with  validaCon   which  can  be  measured  by   and  feedback  from  the   MVP   MVP    Living  Document     Pivot  or  Persevere   Business  Case  should  become  a  Business  Model   ©  Equinox  Limited  
  28. 28. Business  Model  Canvas  (  ©  Equinox  Limited   Alex  Osterwalder  )   source  www.ashmaurya.com  
  29. 29. QuesCon  moves  from  can  the  Product  be  built  to  should  it  be  built    You  know  you  have  achieved   product/market  fit  when  you   have  validated  the  assumpCons   and  criteria  for  success  defined   in  your  business  model.  ©  Equinox  Limited  
  30. 30.  “Most  aoempts  to  solve  the   problems  with  government  IT   have  treated  the  symptoms   rather  than  resolved  the   underlying  system-­‐wide   problems.  This  has  simply  led   to  doing  the  wrong  things   ‘beoer’.  “   -­‐    System  Error    Fixing  the  Flaws  in    Government    IT    Report,  March  2011    ©  Equinox  Limited  
  31. 31. Summary  to  Startup   •  Tight  budgets  mean  Government  need  to   maximise  value  and  minimise  waste   •  MVP  allows  us  to  validate  our  assumpCons   early,  with  minimum  investment   •  Business  Model  means  we  persevere  and   accelerate  or  pivot  to  a  new  path  that   supports  our  vision  ©  Equinox  Limited  
  32. 32. Further  Reading  and  References   hop://thestartuptoolkit.com   hop://LeanCanvas.com   hop://www.businessmodelgeneraCon.com                                       AddiConal  photos  from:   hop://www.freepik.com   hop://commons.wikimedia.org  ©  Equinox  Limited  
  33. 33. @antboobier anthony@nomad8.com©  Equinox  Limited   www.nomad8.com

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