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Agile for                           Startups                            Adrian Smith                              @adrianl...
Thursday, 11 August 2011                           !"
Why                           Startups                           Matter ?Thursday, 11 August 2011
Railscamp ~150 DevelopersThursday, 11 August 2011
Why Startups Matter                                                 Engineering Innovation.Thursday, 11 August 2011
Why Startups Matter     1. Innovation     Innovation provides businesses with a     source of competitive advantage       ...
Why Startups Matter     1. Innovation     Innovation provides businesses with a     source of competitive advantage       ...
Why Startups Matter     1. Innovation     Innovation provides businesses with a     source of competitive advantage       ...
Why Startups Matter     1. Innovation     Innovation provides businesses with a     source of competitive advantage       ...
What is a                           Startup ?Thursday, 11 August 2011
Startup Business    A Startup is an entity created to search for a    sustainable, profitable, and scalable business    mod...
Startup Business    A Startup is an entity created to search for a    sustainable, profitable, and scalable business    mod...
Startup Business    A Startup is an entity created to search for a    sustainable, profitable, and scalable business    mod...
Startup Business    A Startup is an entity created to search for a    sustainable, profitable, and scalable business    mod...
Startup Life Cycle                                          NAIVE                                        BUSINESS         ...
Doll House Fallacy    NOT a Small Business    A Startup is NOT just a smaller version of    an established business.      ...
Doll House Fallacy    NOT a Small Business    A Startup is NOT just a smaller version of    an established business.    Hi...
Startup                   IngredientsThursday, 11 August 2011
1. Idea                                       Making New Things                                     “Find (a) simple solut...
1. Idea                                                      Making New Things                                            ...
1. Idea                                                      Making New Things                                            ...
2. Good People                                          Good Developers                                      “The most imp...
2. Good People    Share the Vision                                      Good Developers    Understanding the vision is cri...
2. Good People    Share the Vision                                       Good Developers    Understanding the vision is cr...
2. Good People    Share the Vision                                        Good Developers    Understanding the vision is c...
3. Customers                                          Engineering Innovation.Thursday, 11 August 2011
3. Customers    Customer Development    Customer development is much more important    than product development           ...
3. Customers    Customer Development    Customer development is much more important    than product development    Field o...
3. Customers                                                           Greatest Risk    Customer Development              ...
90% of         Startups Fail         Because of a           Lack of          CustomersThursday, 11 August 2011
Can we                       reduce the                         risks ?Thursday, 11 August 2011
Lean Startup                                      CUSTOMER DEVELOPMENT                                                    ...
Lean Startup                                                     IDEAS  Learn Faster                                      ...
Lessons                      Learned at                       EnnovaThursday, 11 August 2011
Envision.                                                                                                                 ...
Garage                                       Work Space                            Meeting                           Ping-...
Planning Wall                     (Customer + Product               Coffee                      Development Work)         ...
Adapt Based on Feedback                                      Engineering Innovation.Thursday, 11 August 2011
Adapt Based on Feedback     Original Idea     The original idea is not as important as being able to quickly adapt to meet...
Adapt Based on Feedback     Original Idea     The original idea is not as important as being able to quickly adapt to meet...
Adapt Based on Feedback     Original Idea     The original idea is not as important as being able to quickly adapt to meet...
Thursday, 11 August 2011
Thursday, 11 August 2011
Feature Growth     Before First Customer                                   Schedule!                                 30%! ...
Feature Growth     Before First Customer                                               After First Customer               ...
Current Feature Distribution                                                        Schedule!                             ...
Focus on Quality     Code Quality                                                 Code Quality     Focus attention on qual...
Code Base Changes               6000!                                        !"#$%&(&)*$&                                 ...
Code Base Changes               6000!                                        !"#$%&(&)*$&                                 ...
Be Ruthless with Features                                        Engineering Innovation.Thursday, 11 August 2011
Be Ruthless with Features     Minimum Viable Product     Watching your users will help you identify the minimum viable pro...
Be Ruthless with Features     Minimum Viable Product     Watching your users will help you identify the minimum viable pro...
Be Ruthless with Features     Minimum Viable Product     Watching your users will help you identify the minimum viable pro...
Agile                    Methods in                     StartupsThursday, 11 August 2011
Agile Planning                                            Engineering Innovation.Thursday, 11 August 2011
Agile Requirements                                                Engineering Innovation.Thursday, 11 August 2011
Agile Architecture                                                Engineering Innovation.Thursday, 11 August 2011
Agile Implementation                                                  Engineering Innovation.Thursday, 11 August 2011
Agile Testing                                           Engineering Innovation.Thursday, 11 August 2011
Agile Process                                           Engineering Innovation.Thursday, 11 August 2011
Startup                           ManifestoThursday, 11 August 2011
Startup Manifesto                                               Engineering Innovation.Thursday, 11 August 2011
Startup Manifesto  Useful software over Comprehensive business plan                                               Engineer...
Startup Manifesto  Useful software over Comprehensive business plan                    Customer revenue over External fund...
Startup Manifesto  Useful software over Comprehensive business plan                    Customer revenue over External fund...
Startup Manifesto  Useful software over Comprehensive business plan                    Customer revenue over External fund...
Startup in 13 Sentences                                             Engineering Innovation.Thursday, 11 August 2011
Startup in 13 Sentences            1.      Pick good cofounders            2.      Launch fast            3.      Let you ...
Useful ReferencesThursday, 11 August 2011
Agile for                           Startups                            Adrian Smith                              @adrianl...
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Agile for Startups

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This presentation was given at the Agile Australia 2011 (http://www.agileaustralia.com/)

Startup businesses face significant risk in the search for a sustainable, profitable and scalable business model. Consequently, the success rate for Startups is low, making them a typically high risk investment. Agile methods offer a way of reducing the risk for both the technical implementation and the development of customers. This is achieved by increasing the ability for a Startup to adapt to change and to incorporate the lessons learned from early customer engagement. In this presentation the nature of technology Startups is examined and the application of Agile principles, practices and tools discussed.

Published in: Business

Agile for Startups

  1. 1. Agile for Startups Adrian Smith @adrianlsmith Engineering Innovation.Thursday, 11 August 2011
  2. 2. Thursday, 11 August 2011 !"
  3. 3. Why Startups Matter ?Thursday, 11 August 2011
  4. 4. Railscamp ~150 DevelopersThursday, 11 August 2011
  5. 5. Why Startups Matter Engineering Innovation.Thursday, 11 August 2011
  6. 6. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage Engineering Innovation.Thursday, 11 August 2011
  7. 7. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources Engineering Innovation.Thursday, 11 August 2011
  8. 8. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources 3. Great People Startups have a culture that attracts smart, creative and motivated people Engineering Innovation.Thursday, 11 August 2011
  9. 9. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources 3. Great People Startups have a culture that attracts smart, creative and motivated people 4. New Markets Startups define and validate new markets with actual customers and revenue Engineering Innovation.Thursday, 11 August 2011
  10. 10. What is a Startup ?Thursday, 11 August 2011
  11. 11. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Engineering Innovation.Thursday, 11 August 2011
  12. 12. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Engineering Innovation.Thursday, 11 August 2011
  13. 13. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Successful Business Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Engineering Innovation.Thursday, 11 August 2011
  14. 14. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Successful Business Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Failed Business Engineering Innovation.Thursday, 11 August 2011
  15. 15. Startup Life Cycle NAIVE BUSINESS GROWTH GOOD EXIT POINT BAD VALUE EXIT POINT REAL BUSINESS BUILD HARD UP WORK TIME Engineering Innovation.Thursday, 11 August 2011
  16. 16. Doll House Fallacy NOT a Small Business A Startup is NOT just a smaller version of an established business. Engineering Innovation.Thursday, 11 August 2011
  17. 17. Doll House Fallacy NOT a Small Business A Startup is NOT just a smaller version of an established business. High Risk Startups require greater flexibility to cope with the high level of risk and change. Engineering Innovation.Thursday, 11 August 2011
  18. 18. Startup IngredientsThursday, 11 August 2011
  19. 19. 1. Idea Making New Things “Find (a) simple solutions (b) to overlooked problems (c) that actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 then (f) iterate rapidly.” - Paul Graham Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
  20. 20. 1. Idea Making New Things “Find (a) simple solutions Personal Need (b) to overlooked These ideas originate from personal necessity problems (c) that but have wide appeal. actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 then (f) iterate rapidly.” - Paul Graham Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
  21. 21. 1. Idea Making New Things “Find (a) simple solutions Personal Need (b) to overlooked These ideas originate from personal necessity problems (c) that but have wide appeal. actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 Speculative Need then (f) iterate rapidly.” These ideas are based on the speculated needs - Paul Graham of a group of people other than yourself. Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
  22. 22. 2. Good People Good Developers “The most important factor in software work is the quality of the programmers. The best programmers are up to 28 times better than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
  23. 23. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. The best programmers are up to 28 times better than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
  24. 24. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. Understand Startups The best programmers Working in a Startup is different from a regular are up to 28 times better job and requires passion and flexibility than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
  25. 25. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. Understand Startups The best programmers Working in a Startup is different from a regular are up to 28 times better job and requires passion and flexibility than the worst programmers.” - Robert L. Glass Common Culture Facts and Fallacies of Software Engineering It is important to be able to work under pressure without personal difficulties Engineering Innovation.Thursday, 11 August 2011
  26. 26. 3. Customers Engineering Innovation.Thursday, 11 August 2011
  27. 27. 3. Customers Customer Development Customer development is much more important than product development Engineering Innovation.Thursday, 11 August 2011
  28. 28. 3. Customers Customer Development Customer development is much more important than product development Field of Dreams Waiting for the product to be complete before developing customers is a very bad strategy Engineering Innovation.Thursday, 11 August 2011
  29. 29. 3. Customers Greatest Risk Customer Development “The greatest risk—and Customer development is much more important hence the greatest cause of than product development failure—in startups is not in the development of the new product but in the development of customers and markets.” Field of Dreams - Steve Blank The Four Steps to the Epiphany Waiting for the product to be complete before developing customers is a very bad strategy Engineering Innovation.Thursday, 11 August 2011
  30. 30. 90% of Startups Fail Because of a Lack of CustomersThursday, 11 August 2011
  31. 31. Can we reduce the risks ?Thursday, 11 August 2011
  32. 32. Lean Startup CUSTOMER DEVELOPMENT Problem is GO GO GO NO/GO NO/GO NO/GO Unknown DECISION DECISION DECISION Customer Customer Customer Scale Discovery Validation Creation Company PIVOT Data Feedback Hypotheses Insights Experiments Insights Product Iteration Deployable Backlog Backlog Product RELEASE ITERATION PLANNING PLANNING Solution is ITERATE Unknown PRODUCT DEVELOPMENTDiagram adapted from Steve Blank & Eric Ries Engineering Innovation.Thursday, 11 August 2011
  33. 33. Lean Startup IDEAS Learn Faster Develop Faster LEARN BUILD Customer Interviews Test-Driven Development 5 Whys - Root Cause Analysis Continuous Integration Cross-Functional Teams Minimize Pair-Programming Retrospectives Feature Prioritisation Total Shared Code Ownership Code Standards / Metrics Cycle Evolutionary Architecture Incremental Deployment Time Open Source Software DATA CODE Cloud Computing Just-In-Time Scalability Measure Faster MEASURE Analytics Usability Testing Split-Testing Production Monitoring Search Engine Marketing Customer Feedback Feature Branching One-Click DeploymentDiagram adapted from Eric Ries and KISSMetrics Engineering Innovation.Thursday, 11 August 2011
  34. 34. Lessons Learned at EnnovaThursday, 11 August 2011
  35. 35. Envision. Browser Smart Tablet Phone Envision is a SaaS (Software as a Service) construction management tool that reduces project administration effort and cost while radically improving field productivity. Project Dashboard Executive Summary Project Reporting Photo Libraries Document Integration Material Management Envision. Custom Time Schedule 4D Model Management Updates Animation Work Kanban Quality Packages Board Management Event Correspondence Notifications Management Features ts en m u oc D ERP ScheduleThursday, 11 August 2011
  36. 36. Garage Work Space Meeting Ping-Pong TableThursday, 11 August 2011
  37. 37. Planning Wall (Customer + Product Coffee Development Work) Schedule Pairing Stations Pairing Stations Meeting Ping-Pong Table Agile Work Space Cloud-Based InfrastructureThursday, 11 August 2011
  38. 38. Adapt Based on Feedback Engineering Innovation.Thursday, 11 August 2011
  39. 39. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Engineering Innovation.Thursday, 11 August 2011
  40. 40. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Be Embarrassed Be prepared to be embarrassed by your product when you first show it to customers Engineering Innovation.Thursday, 11 August 2011
  41. 41. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Be Embarrassed Be prepared to be embarrassed by your product when you first show it to customers Observe your Customers Spend time watching your customers actually using the product - what seems obvious to you is often not to them Engineering Innovation.Thursday, 11 August 2011
  42. 42. Thursday, 11 August 2011
  43. 43. Thursday, 11 August 2011
  44. 44. Feature Growth Before First Customer Schedule! 30%! Material Supply! 4D Model! 20%! WorkPackage Material Demand! Management! 10%! Document Events 0%! Management! Management! Photo Reporting! Management! Notices! Time Tracking! iPhone! Distribution of features based on the ratio of Lines of Code normalised by Total Lines of Code Engineering Innovation.Thursday, 11 August 2011
  45. 45. Feature Growth Before First Customer After First Customer Schedule! Schedule! 30%! 30%! Material Supply! 4D Model! Material Supply! 4D Model! 20%! 20%! WorkPackage WorkPackage Material Demand! Material Demand! Management! Management! 10%! 10%! Document Events Document Events 0%! 0%! Management! Management! Management! Management! Photo Photo Reporting! Reporting! Management! Management! Notices! Time Tracking! Notices! Time Tracking! iPhone! iPhone! Distribution of features based on the ratio of Lines of Code normalised by Total Lines of Code Engineering Innovation.Thursday, 11 August 2011
  46. 46. Current Feature Distribution Schedule! 20%! Material Supply! 4D Model! WorkPackage Material Demand! 10%! Management! Document Events 0%! Management! Management! Photo Reporting! Management! Notices! Time Tracking! iPhone! Engineering Innovation.Thursday, 11 August 2011
  47. 47. Focus on Quality Code Quality Code Quality Focus attention on quality and technical health to ensure that features can be easily adapted based “Continuous attention to on feedback quality can help maintain velocity, maintain the ability to deliver, without it the Automated Testing team will slow down” Maximise the use of automated testing to enable rapid change with confidence - Robert “Uncle Bob” Martin (Author of Clean Code) Automated Deployment Automated as much as possible of the build, provisioning and deployment process. Engineering Innovation.Thursday, 11 August 2011
  48. 48. Code Base Changes 6000! !"#$%&(&)*$& After First !"#$&(&+$%,& 5000! Customer 4000! Sustainable Pace 3000! 2000! Before First 1000! Customer 0! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 10 0 10 10 10 10 1 11 11 11 11 11 11 11 11 1 11 01 01 01 20 20 0 20 0 20 20 20 20 20 20 20 20 20 2 /2 /2 2 2 / 9/ / / 1/ / / / / / / / / 5/ / /8 /9 10 12 12 /1 /1 /2 /2 /3 /3 /4 /4 /5 3/ 3/ 9/ 20 17 17 31 14 28 14 28 11 25 23 / 6/ / 31 20 Excludes libraries and acceptance test code Engineering Innovation.Thursday, 11 August 2011
  49. 49. Code Base Changes 6000! !"#$%&(&)*$& After First !"#$&(&+$%,& 5000! Customer 4000! Sustainable Pace 3000! Many Late Nights 2000! Before First 1000! Customer 0! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 10 0 10 10 10 10 1 11 11 11 11 11 11 11 11 1 11 01 01 01 20 20 0 20 0 20 20 20 20 20 20 20 20 20 2 /2 /2 2 2 / 9/ / / 1/ / / / / / / / / 5/ / /8 /9 10 12 12 /1 /1 /2 /2 /3 /3 /4 /4 /5 3/ 3/ 9/ 20 17 17 31 14 28 14 28 11 25 23 / 6/ / 31 20 Excludes libraries and acceptance test code Engineering Innovation.Thursday, 11 August 2011
  50. 50. Be Ruthless with Features Engineering Innovation.Thursday, 11 August 2011
  51. 51. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Engineering Innovation.Thursday, 11 August 2011
  52. 52. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Eliminate Unused Features Remove unused features because the cost to maintain is waste and will slow down development of valued features Engineering Innovation.Thursday, 11 August 2011
  53. 53. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Eliminate Unused Features Remove unused features because the cost to maintain is waste and will slow down development of valued features Half a Product is better than Half Arse Product Poorly implemented features are difficult to use and limit the usefulness of customer feedback and usage analysis Engineering Innovation.Thursday, 11 August 2011
  54. 54. Agile Methods in StartupsThursday, 11 August 2011
  55. 55. Agile Planning Engineering Innovation.Thursday, 11 August 2011
  56. 56. Agile Requirements Engineering Innovation.Thursday, 11 August 2011
  57. 57. Agile Architecture Engineering Innovation.Thursday, 11 August 2011
  58. 58. Agile Implementation Engineering Innovation.Thursday, 11 August 2011
  59. 59. Agile Testing Engineering Innovation.Thursday, 11 August 2011
  60. 60. Agile Process Engineering Innovation.Thursday, 11 August 2011
  61. 61. Startup ManifestoThursday, 11 August 2011
  62. 62. Startup Manifesto Engineering Innovation.Thursday, 11 August 2011
  63. 63. Startup Manifesto Useful software over Comprehensive business plan Engineering Innovation.Thursday, 11 August 2011
  64. 64. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External funding Engineering Innovation.Thursday, 11 August 2011
  65. 65. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External fundingValidated customer learning over Secret launch plan Engineering Innovation.Thursday, 11 August 2011
  66. 66. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External fundingValidated customer learning over Secret launch plan Building it well over Building it to sell Engineering Innovation.Thursday, 11 August 2011
  67. 67. Startup in 13 Sentences Engineering Innovation.Thursday, 11 August 2011
  68. 68. Startup in 13 Sentences 1. Pick good cofounders 2. Launch fast 3. Let you idea evolve 4. Understand your users 5. Better to make a few users love you than a lot ambivalent 6. Offer surprisingly good customer service 7. You make what you measure 8. Spend little 9. Get ramen profitable 10. Avoid distractions 11. Don’t get demoralized 12. Don’t give up 13. Deals fall through - Paul Graham Engineering Innovation.Thursday, 11 August 2011
  69. 69. Useful ReferencesThursday, 11 August 2011
  70. 70. Agile for Startups Adrian Smith @adrianlsmith Engineering Innovation.Thursday, 11 August 2011

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