The myth goes that the more perseverance, brilliance, good timing and a good product, the higher the chance for success. I will show you why exactly the opposite is true: Survival and, even more so, success are highly correlated with the successful application of the "Build-Measure-Learn Feedback Loop". The fact that this lean framework can be learned and taught is the final kill of the myth. I will give examples of how you can deliver more business value earlier and with less risks by testing everything as soon as possible using a so-called Minimum Viable Product.
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Angel Day 2013 - Lean Startup: How to get business value earlier with less risks
1. Lean Startup: How to get business
11.12.2013
value earlier w ith less risks
Fredi
Schmidli
SIX
Swiss
Exchange
Zürich,
11.12.2013
h=p://de.slideshare.net/pragmaBcsoluBons
1
2. Fredi Schmidli
11.12.2013
• Business
Angel
and
Boardmember:
www.startangels.ch
• Entrepreneur
• Community
Builder:
-‐
meetup.com/Lean-‐startup-‐Zurich/
-‐
Agile
Breakfasts
h=p://de.slideshare.net/pragmaBcsoluBons
2
3. Content
• Goals
• Two
11.12.2013
different
ways
• ConvenBonal
way
• Lean
Startup
way
• Examples
for
Lean
Startup
ApplicaBons
• Conclusions
• See
presentaBon
on
Slideshare
Based
on
the
Book:
The
lean
startup,
Eric
Ries,
1st
ed.
2011
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3
5. Collective experience?
• Who
11.12.2013
heard
about
• Lean
Manufacturing?
• Scrum/Kanban?
• Lean
Startup?
• Who
worked
with
it?
h=p://de.slideshare.net/pragmaBcsoluBons
5
6. Goals
• Increase
11.12.2013
survival
rate
• 60%
last
3
years,
35%
last
10
years
(US:
h=p://idee.vc/tag/uberleben-‐von-‐startups/)
• 66%
last
3
years,
50%
last
5
years
h=p://www.bfs.admin.ch/
bfs/portal/de/index/themen/06/02/blank/key/02/ueberlebensraten.html
• 56%
losses
in
3.5,
10%
bring
80%
return
in
7
years
(UK:
Nesta-‐Studie
2009
mit
BBAA
and
more
than
1000
firms)
• Fail
early
• Increase
capital
efficiency
of
pordolio
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7. There are 2 ways
1. ConvenBonal
way
11.12.2013
or
do
the
things
right
• AssumpBon:
machine,
excellent
plan
and
execuBon
• Focus:
Perseverance
myth
• Example:
most
Startups
3. Lean
startup
way
or
do
the
right
things
• AssumpBon:
Dynamic
systems
require
self-‐organisaBon
• Focus:
Genchi
Gembutsu
• Example:
Zappos,
Dropbox,
...
h=p://de.slideshare.net/pragmaBcsoluBons
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8. Conventional way
• Culture:
11.12.2013
„Cowboy
Mentality“
-‐
„Paralysis
by
Analysis“
• Method:
Planning
more
important
than
experiments
• Goal:
best
product
possible
• CharacterisBcs
-‐
symptoms:
• Which
product
can
we
build
with
this
technology?
• Long
business
plans
with
hockey
sBck
figures
• Need
funds
for
sales
&
markeBng
boost
• Long
discussions
about
plans
or
features
h=p://de.slideshare.net/pragmaBcsoluBons
8
9. Lean startup way
• Culture:
11.12.2013
Success
can
be
engineered,
learned,
taught
• Pre-‐requisites:
Transparency,
trust
and
courage
• Method:
Short
feedback
loop
• Goal:
MVP
asap
and
minimise
cycle
Bme
• CharacterisBcs
• Can
we
build
a
sustainable
business?
• Business
Model
Canvas
• Every
product,
markeBng
campaign,
etc.
is
experiment
17.09.2013
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10. Feedback loop
Entrepreneurial
Mgt:
Stupid!
It‘s
the
boring
stuff,
...
11.12.2013
10
Turn
ideas
in
......
Minimum
viable
Product
(MVP)
InnovaBon
accounBng
Pivot
or
persevere?
h=p://de.slideshare.net/pragmaBcsoluBons
11. Examples
1.
Test
BP
assumpBons
for
TM
app:
price,
cost
of
sales
Pivot
to
public
health?
11.12.2013
11
Interview
MDs
by
pig
MVP:
QuesBonnaire
&
live
demos
70
interviews
&
pa=ern
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12. Examples
2.
Test
business
model
for
Zappos
11.12.2013
12
MVP:
Put
picture
of
shoe
online
h=p://de.slideshare.net/pragmaBcsoluBons
13. Examples
11.12.2013
13
2.
New
busines
model
AND
proven
service
model
h=p://de.slideshare.net/pragmaBcsoluBons
14. Examples
3.
Test
vision
for
flat
TV
11.12.2013
14
MVP
h=p://de.slideshare.net/pragmaBcsoluBons
15. Examples
4.
Test
vision
of
service
offering
for
Dropbox
11.12.2013
15
MVP:
Video
h=p://www.thisispaper.co.uk/2013/10/10/mvps-‐an-‐introducBon/#more-‐1819/
h=p://de.slideshare.net/pragmaBcsoluBons
16. Examples
5.
Test
business
model
for
Drone
based
imaging
system
MVP:
Rent
camera
and
plane
instead
of
building
a
drone
h=p://steveblank.com/2013/07/22/an-‐mvp-‐is-‐not-‐a-‐cheaper-‐product-‐its-‐about-‐smart-‐learning/
11.12.2013
16
h=p://de.slideshare.net/pragmaBcsoluBons
18. Conclusions
• Genchi
11.12.2013
Gembutsu,
experiment
and
succeed
or
...
?
• Be
courageous
and
transparent
• Can
we
build
a
sustainable
business?
• MVP
and
Business
Modell
Canvas
change
everything
• Minimise
TOTAL
Bme
through
the
loop
• Standard
for
Business
Angels
and
Entrepreneurs
• Good
luck
by
applying
it
this
arernoon
J.
h=p://de.slideshare.net/pragmaBcsoluBons
18
19. More information
Fredi
Schmidli
fredi@pragmaBc-‐soluBons.ch
Steve
Blank:
h=p://hbr.org/2013/05/why-‐the-‐lean-‐start-‐up-‐
11.12.2013
changes-‐everything/ar
h=p://de.slideshare.net/pragmaBcsoluBons
19
Editor's Notes
My vision is to establish L.Startup as the standard for entrepreneurs and investors in CH.
Talk early phase Startups: Idea, Concept (ab hier), Firm (ab hier Investition), growth and with strong focus on soft facts
Economist and BA: Entrepreneur, who failed several times;
Agile mgt.: Mitarbeitende schaffen in dezentralen, selbstorganiserten und organisationsübergreifenden Teams, demonstrieren am Ende von kurzen Iterationen dem Kunden ihre Resultate und verbessern sich mit Hilfe deren Feedback kontinuierlich.
Collaboration and sharing
Flipp Chart: What should be covered that you think that your investment to participitate paid off? Inspect and adapt
How I learnt about it ....
All members of the same family: They share the same PDCA-DNA
We get business value earlier, if we increase survival rate, fail early. This increases the capital efficiency of our investment portfolios.
Capital efficiency: figure out as quickly as possible to build the right product for which the customer will pay for.
2 distinctively different ways: like black and white
Conventional: exc. Plan an and exc. execution of plan by good people, cool idea and then perseverance
Jeffrey Liker, The Toyota Way, 2003: What distinguishes the Toyota Way from other mgt. approaches
Cowboy Mentality
- especially ETH startups
- Assumptions not clear; Fact sheets
- eg. Startup founder team arguing about US strategies: yes, you should think big, but apply genchi gembutsu
Its the boring stuff that matters – here perseverance
This presentation is an MVP
StartAngels Website: First Trial of Lean Startup
Entrepreneurs hip, Mgt. dull. Boring stuff like innovation accounting. Here perserverance is king. MVP: e.g. a designer produces a new chair on which you can not sit.Innovation accounting: how to measure progress, how to set-up milestones, and how to prioritise work.
Head Marketing: Do you know Lean Startup? Sure. Do you know Split- or A/B Testing? Sure. Are we doing it? No. Why. Because, we have no time ...
Cost of sales: no. of visits until closing
No BP, just xls sheetGG instead of big consulting firms. Pattern after 5 Interview was set
Nick Swinmurn: Took picture in store; put it online; customer sent email; Nick went to the store and bought the shoe at label price.
Entrepreneurial Mgt: Stupid! It‘s the boring stuff, that matters most!
See Example von Adrian
Drew Houston, CEO; leap-of-faith assumptions: the part on which everything depends.
Video, because it was difficult to explain the concept and it was impossible to demo the SW in a prototype.
Startup aimed to become service provider in an emerging business called “precision agriculture”. So they looked for money to build a Drone, with special camera and SW to get the best data.
MVP: Rent camera and plane instead of building a drone and offer the images to farmers.
Lessons learned
A minimum viable product is not always a smaller/cheaper version of your final product
Think about cheap hacks to test the goal
Great founders keep their eye on the prize
Flipp Chart: Go back and check if the expectations are met.
Steve Blank bildet alle Business Schools, Colleges, Technoparks, Incubators, etc. aus
I can imagine that from now on you will ask Startups different questions. Right?
Open View Ventures, Venture Capital Company: welche Prozessverbesserungen seit dem letzten Board Meeting
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