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Lean product development

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Delivered to MBA students at Imperial College London. This session covered what Lean Product Development and Management entails, whilst covering the facets of lean including Agile, Lean Startup, Customer Development and more.

Published in: Business

Lean product development

  1. 1. LEAN PRODUCT DEVELOPMENT CRAIG STRONG
  2. 2. S&P 500 index has decreased from 61 years in 1958 to just 18 years today
  3. 3. ANNUAL PERFORMANCE TRAP Jeremy Hope, 2003. Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Edition. Harvard Business Review Press.
  4. 4. UNCERTAINTY—IN THE ECONOMY, SOCIETY, POLITICS— HAS BECOME SO GREAT AS TO RENDER FUTILE, IF NOT COUNTERPRODUCTIVE, THE KIND OF PLANNING MOST COMPANIES STILL PRACTICE: FORECASTING BASED 
 ON PROBABILITIES
 Peter Drucker THE NEED FOR ADAPTIVE MANAGEMENT
  5. 5. TRADITIONAL MODELS ARE CHANGING
  6. 6. LEAN PRODUCT DEVELOPMENT
  7. 7. LEAN UX - JEFF GOTHELF & JOSH SEIDON 1. DESIGN THINKING 2. LEAN STARTUP 3. AGILE UX & DEV
  8. 8. DESIGN THINKING 1. DESIGN PRINCIPLES 2. HUMAN-CENTRED EMPATHY 3. CONTEXTUAL ENQUIRY 4. IDEATION 5. PROTOTYPING 6. CUSTOMER CO-DESIGN
  9. 9. LEAN STARTUP 1. HYPOTHESES DRIVEN 2. VALIDATED LEARNING 3. MVP 4. BUILD - MEASURE - LEARN 5. FAIL FAST & PIVOT
  10. 10. AGILE DEVELOPMENT 1. SPRINTS/ITERATIONS 2. INSPECT & ADAPT LEARNING 3. USER STORIES/PRIORITISED BACKLOGS 4. CROSS-FUNCTIONAL TEAMS 5. AGILE PRINCIPLES
  11. 11. AGILE DEVELOPMENT
  12. 12. REMEMBER, IF WE’RE BUILDING SOMETHING THAT NOBODY WANTS, IT DOESN’T MATTER IF WE’RE DOING IT ON TIME AND ON BUDGET Eric Ries LEAN STARTUP
  13. 13. AGILE AND LEAN PRODUCT DEVELOPMENT APPROACH
  14. 14. SMALLER, FASTER DELIVERY CYCLES = INCREASED AND FASTER LEARNING http://bitly.com/deliveringvalueicl
  15. 15. “THE LEAN STARTUP METHOD TEACHES YOU HOW TO DRIVE A STARTUP-HOW TO STEER, WHEN TO TURN, AND WHEN TO PERSEVERE-AND GROW A BUSINESS WITH MAXIMUM ACCELERATION.” http://theleanstartup.com/principles LEAN STARTUP
  16. 16. LEAN STARTUP
  17. 17. CUSTOMER
  18. 18. LEAN PRODUCT LIFECYCLE
  19. 19. SEARCH & EXECUTE ARE DIFFERENT
  20. 20. NON-LINEAR PROCESS
  21. 21. VERSION OF A NEW PRODUCT WHICH ALLOWS A TEAM TO COLLECT THE MAXIMUM AMOUNT OF VALIDATED LEARNING ABOUT CUSTOMERS WITH THE LEAST EFFORT LEAN STARTUP WHAT IS AN MVP
  22. 22. MINIMAL VIABLE PRODUCT MVP IS A PROCESS NOT A PRODUCT
  23. 23. MINIMAL VIABLE PRODUCT
  24. 24. MVP’S IS A PROCESS
  25. 25. BUSINESS MODEL CANVAS Alex Osterwälder & Yves Pigneur • Innovation Tool • Lightweight, Visual and Flexible • Collaborative And Responsive
  26. 26. YOUR PRODUCT IS NOT THE PRODUCT 1. It is important to realise that a product or service idea is not sufficient for success. 2. You could have a good idea, but if you do not have a good business model to support it, then your business will fail. 3. It is not enough to just have a good product, it must be delivered to customers in a manner that is sustainably profitable. 
 A lot of people focus too much on just the product. 4. But the same amount of effort needs to be put into developing the business model.
  27. 27. BUSINESS MODEL CANVAS
  28. 28. THE ESPRESSO BUSINESS MODEL
  29. 29. BUSINESS MODEL CANVAS - NESPRESSO
  30. 30. BUSINESS MODEL The canvas is NOT a business plan
  31. 31. BUSINESS MODEL DESIGN
  32. 32. LOCAL MAXIMA
  33. 33. EXPERIMENTATION - LEARN FAST 1. Pick riskiest assumption from Business Model Canvas 2. Brainstorm a few different tests, offline and online 3. Try to break the test into even smaller units of work 4. Choose test & define testable hypothesis 5. Set a goal (minimum success criteria) 6. Run the test (try to hit the goal) 7. Review results and make a decision
  34. 34. HYPOTHESES “I/We Believe….” [target market] “Will” [do this action/use this solution] “For” [this reason]
  35. 35. SUCCESS CRITERIA “We will know we are right when ” [minimum success criteria]
  36. 36. EXAMPLE
  37. 37. EXAMPLE
  38. 38. PIVOTING Eric Ries (2011) The Lean Startup • Zoom-in Pivot • Zoom-out Pivot • Customer Segment Pivot • Customer Need Pivot • Platform Pivot • Business Architecture Pivot • Value Capture Pivot • Engine Of Growth Pivot • Channel Pivot • Technology Pivot
  39. 39. INSTAGRAM
  40. 40. INSTAGRAM https://blog.kissmetrics.com/kevin-systrom/
  41. 41. ZOOM IN PIVOT
  42. 42. LEARN FAST THE LEAN WAY
  43. 43. LEAN PRODUCT DEVELOPMENT KEY TAKEAWAYS 1. MVP is a process not a product 2. Searching and Executing are different 3. Product development and Product Lifecycle's are Non-Linear 4. BUILD-MEASURE-LEARN 5. Learn Fast By Delivering Often, testing your Riskiest Assumptions First
  44. 44. IT’S BEEN A PLEASURE THANK YOU craig@strongandagile.co.uk @craigstrong uk.linkedin.com/in/craigstrong/

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