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TiE IITB - Jun 11 talk on Lean Startup Tactics

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lean startup pros & cons by anil bahuman, Charter Member, TiE Mumbai at IIT Bombay on June 11 2014

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TiE IITB - Jun 11 talk on Lean Startup Tactics

  1. 1. Rapidly Testing out Assumptions of a new Business: Lean Startup and Other Approaches Anil Bahuman TiE Business Builder Gulmohar, IIT Bombay
  2. 2. Profile  Education – NIT-Karnataka & University of GA  Citibank, Boeing, MIT Media Lab and IIT Bombay  Startup Experience  3 years – US at GA Tech Incubator  7 years – Cofounder, CEO, Managing Director  Vice-President, Ecosystem Development at Reliance Jio Infocomm
  3. 3. Outline  What Lean Start-up Does not cover  Example of a fictitious Lean Startup  What is the Lean Start-up Approach and what are the advantages?  Lean Startup Lingo  What are the Limitations?  What are the Alternatives?  Customer Development  Assumption-based Planning  Do your own
  4. 4. Business Plan Business Plan Canvas by Alexander Osterwalder
  5. 5. Processes Entrepreneur Operating System by Gino Wickman  The V/TO – Vision/Traction Organizer  The EOS Model™ and Scorecard - Track 6 Major Areas and a Scorecard  The Eight Cash-Flow Drivers™  Rocks - Three to seven most important priorities that must get done every 90 days.  The 5-5-5™ - 5 values-5 roles-5 rocks/Quarter  The Meeting Pulse™ and The Level 10 Meeting™ – Templates for Meetings  The Issues Solving Track™ – Template to help solve issues  The Five Leadership Abilities™ – Five Leadership Abilities  Clarity Break – Managing frustration.  Delegate and Elevate™ and The Assistance Track™ – Identify your sweet spot and follow five ways to help you delegate.  LMA – Leadership-Management-Accountability Questionnaire  The People Analyzer™– Identifying strengths of each individual in a team  The Trust Builders™ – 10 ways to keep trust levels high
  6. 6. Networking TiE-IQ Bootcamp – Peer learning environment  What to expect  Refine and finish the minimal viable product (MVP) into a ready to buy product  Market your product  Get the first few customers  Pitch to your first group of investors
  7. 7. Example Tactics
  8. 8. Hypothesis 10 or more people will spend ` 500 for my product over next week.
  9. 9. What is the Lean Start-up Approach?  A new trend among Silicon Valley and Bangalore tech startups  Learn about customer behaviour at lowest possible cost
  10. 10. What is the Lean Start-up Approach?  Origins  2008 Meltdown  “The Lean Startup” by Eric Ries  Steve Blank (“Four Steps to the Epiphany”)  “Lean Mgmt” techniques of Japanese auto- makers….applied to the Tech industry  “Discovery-driven Planning” introduced by Rita McGrath & Ian MacMillan in a 1995 HBR  .com businesses –  Engineering bias – “Customer Development”
  11. 11. Source:Giff Constable Customer Development Get Out of the Building
  12. 12. Lingo
  13. 13. Source: Eric Ries
  14. 14. Minimum Viable Product  Products: MVP  Services: Concierge Source: Spotify
  15. 15. Continuous Development  Frequency: Accept incremental improvements?
  16. 16. Split Testing  Try out 2 versions – with and without a feature
  17. 17. Actionable Metrics  Metrics that show traction  Vs. metrics that make you look good
  18. 18. Innovation Accounting Source: Dave McClure 500 Startups
  19. 19. Pivot  Major change in business model
  20. 20. Build-Measure-Learn  MVP-Test Traction-Revise-Iterate
  21. 21. Limitations
  22. 22. Serious Limitations  “Research stage”  Annoy prospective customers  Annoy prospective investors  Annoy key employees  Speculative activity?  Akin to learning the Stock Market  “Engineering” solution to Customer Development  Not applicable to physical-products  Exploiting Adwords does not create new Demand  Hype, Bubble  Not a strategy – its Tactics.
  23. 23. Harm Discipline  Misinterpretation – Shortcut  Underestimate Commitment  Little knowledge  Expect instant results  Get carried away by over-enthusiastic early-adopters seeking instant- gratification  100 code improvements per day
  24. 24. Alternatives To Lean Approach
  25. 25. Source: Steve Blank
  26. 26. Assumption-based Planning Source: Wikipedia
  27. 27. Do your own Giff Constable I believe that my customers have a need to ______________ (Keep it Concise) This need can be solved with ________ My intial customers will be __________ The #1 value a client wants to get out of my service is: __________ The client can also get these additional benefits: __________ and __________
  28. 28.  I will acquire the majority of my users/customers through __________ and __________  I will make money by __________  My primary competition will be __________ and __________  We will beat them in the market due to __________ and __________ Source: Giff Constable
  29. 29.  My biggest product risk is __________  We will solve this through __________  What assumptions does my business make, that if proven wrong could cause failure?  1. __________  2. __________  3. __________  4. __________  5. __________ Source: Giff Constable
  30. 30. Should you be a lean startup? 1. When most of your competition are not lean startups, Be a lean startup 2. When most of your competition are lean startups, Do Not Be a lean startup 3. When half your competition is lean and half is not, it does not matter what you choose. 4. When you have no competition as of yet, Be a lean startup and adapt later
  31. 31. Thanks Pls. go to www.govote.at and enter 43 34 92 to vote

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