Materials of the first MERLIN (https://merlin-ict.eu) workshop, delivered in April'18. MERLIN will support market-oriented researchers, SMEs and startups across Europe, to consider the full potential of their research and to shape ideas and outputs into innovations to be ready for market validation and commercialisation, by using modern needs-first, market-led methodologies and offering free training workshops and meetup in 7 European countries. More information in video https://bit.ly/merlin_video

1. H2020 GA #780460
LEAN STARTUP
LECTOR’S NAME
CITY
DATE
Helping today’s researchers
create tomorrow’s enterprises
This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 780460

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Rules for the workshop
š No question is a
silly question
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š What is said in the room
stays in the room
š Support and
challenge each other

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General information
š Workshop length – 4 hours
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š Coffee break – 20 minutes š Slide availability

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About MERLIN project
MERLIN project aims to stimulate the interest in the creation of startups, spin-offs and licensing
agreements among ICT researchers, providing them with the business skills needed to commercialize
their research findings, and introducing them to their local and European entrepreneurialecosystems
https://merlin-ict.eu
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Organization of more than 40
practical thematic workshops in
several European cities, including
Cambridge, Madrid, Poznan, Vilnius,
Berlin, Warsaw, Bucharest, Tallinn
Participation in 5
international
conferences, organizing
workshops and forums
Organization of 8
meetups with
potential customers,
commercial partners,
and investors
Preparation of 4
webinars on SME
growth and PPP
business models

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MERLIN partners
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3 Incubators
Universidad Politécnica de Cartagena
University of Cambridge
Poznan Science and Technology Park
2 Consultancy Companies
BluSpecs
CIVITTA

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Let’s look at the uniqueness of each other!
š Task!
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Agenda
Intro – Thesis writing ideology vs lean startup ideology
Traditional vs lean startup mentality
Lean startup – three pillars
Minimum viable product
Value proposition canvas
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Learning objectives
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Understand the 5 key
elements of Lean
Startup methodology
Learn how to
independently
apply Lean Startup
principled approach
to the new product
development
Understand how using
this methodology
desired product/service
can get to the
customer’s hands faster

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Meet Robert
š ICT researcher
š Specialist in algorithms
š Has and idea for AI for travel sector
š Wants to commercialize his findings
š Can we help him?
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Intro – PhD vs Startup ideology
PhD writing – cycle 1
Lean startup – cycle 1 Lean startup – cycle 2 Lean startup – cycle 3 Lean startup – cycle 4
Time
PhD Writing Lean startup
Background reading, proposal, initial meetings Customer Development – Understand a need/problem
Literature review
MVP Generation – What is the smallest thing you can do to validate the
need?
Research methods planning Build MVP
Data collection, data analysis Test the MVP Internally – Make sure it works,no bugs, etc.
Drawing conclusions, submission Release MVP. Fix any new bugs if discovered
Color explanation:
*Each individual block is not
drawn to scale
Lean startup – cycle 5
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Traditional approach vs lean startup
Traditional
approach
Lean startup
Develop business plan
Pitch your idea to
management
Assign the process to
the right team
Launch
Start sales, marketing and
profit makingprocess
Hit or Miss
Build minimum viable
product
Measure
Understand customer
feedback
Learn: Pivot or
Persevere
Launch
Sure hit
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Video link

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Lean startup – three pillars
Business Model
Canvas
Customer
Development
Minimum Viable
ProductThis workshop
Value proposition
canvas
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5 key elements of a Lean Startup
Entrepreneurs
are
everywhere
Entrepreneurship
is
management
Validated
learning
Build
Measure
Learn
Innovation
Accounting
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Lean startup: Learn-Build-Measure cycle
Ideas
Build
Code
Measure
Data
Learn
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*Adapted from E. Ries’ book ”The Lean Startup”

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Lean startup: Learn faster
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Ideas
Build
Code
Measure
Data
Learn
Learn faster
Learn
Learn
Build
Meas
ure
Understand customers
Pivot or persevere?

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Value Proposition Canvas
š Part of Business Model Canvas
š Who business is for?
š How business deliver value to customers?
š Why anything is valuable?
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Build
Mea
sure
Learn

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Value Proposition Canvas – exercise
1
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Build
Mea
sure
Learn

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Lean startup: Build faster
Ideas
Build
Code
Measure
Data
Learn
Build faster
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MVP exercise
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Build
Mea
sure
Learn

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MVP importance
Idea generation,
start of product
development
”Perfect”
product release
No product
need in the
market
No recovery after losing time, money
and other resources
Idea
generation,
start of product
development
1st MVP release
Collecting
customer
feedback
Product
iteration /
pivot
2nd MVP release
Cycle repeats
Traditional
approach
Lean startup
approach
Timeline
If you are not embarrassed by
the first version of your product,
you’ve launched too late. —
Reid Hoffman (LinkedIn
Founder)
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Build
Mea
sure
Learn

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Minimum viable product (MVP)
Illustration by H. Kniberg
MVP is that version of the product that enables a full turn of the Build-Measure-Learn loop with a
minimum amount of effort and the least amount of development time. – Eric Ries.
MVP is not a rubbish version of the final product. The challenge is to achieve ’minimal’ and ‘viable’
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Build
Mea
sure
Learn

22. H2020 GA #780460
Online shoe store started with a simple website that featured
pictures of shoes from a near-by physical shoe store. Once the pair
of shoes was bought, the owner went to the physical store, bought
the shoes and sent them.
MVP example
Shared only a 4 minute video showing how the product works. Beta
list increased from 5000 to 75 000 overnight. Video: link
Founders put up air mattresses in their apartments for short term
rent. Later – taught homeowners how to take good pictures of their
property
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Let’s have a FIKA (20 minutes)
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GET
COMFORTABLE
SLOW DOWNEAT TREATS
BE SOCIAL
NEVER FIKA
ALONE
TURN OFF
ELECTRONIC
DEVICES

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Ideas
Build
Code
Measure
Data
Learn
Lean startup: Measure faster
Measure faster
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Validation canvas exercise
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Build
Mea
sure
Learn

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Conclusions
š Build – MVP is the
goal
š Learn – understand the
customer and decide
– pivot or persevere
š Measure – get out of the
building!
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Homework for everyone
• Steve Blank - Why the Lean Start-Up Changes Everything. Link
• Adam L. Penenberg - Roominate: a Lean Launchpad success story.
Link
• Steve Blank – Lean Startups aren’t Cheap Startups. Link
• Alexander Osterwalder - Achieve Product-Market fit with our brand-
new value proposition designer canvas. Link
• Steve Blank – Perfection By Subtraction – The Minimum Feature Set. Link
• Steve Blank – An MVP is not a Cheaper Product, It’s about Smart
Learning. Link
Internet resources
• Validation canvas. Link
• Value proposition canvas. Link
• Learn-Build-Measure cycle
Try with your own idea
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Homework if you want to go deeper
• Ries, Eric. Lean Startup (2011).
• Blank, Steve and Bob Dorf. The Startup Owner's Manual. The Step-by-Step
Guide for Building a Great Company, Pescadero, CA: K&S Ranch, 2012.
• Blank, Steve. Founders Workbook.
• Blank, Steve. The Four Steps to the Epiphany. Successful Strategies for
Products that Win. Pescadero, CA; K&S Ranch, 2013.
Books
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• Steve Blank – Open Source Entrepreneurship. Link
• Steve Blank – Inside the Lean Startup. Link
• Steve Blank - Nail the Customer Development Manifesto to the Wall. Link
• Video - Kauffman Founders School – The Lean Approach: The Lean Method.
Link
• Video – Kauffman Founders School – The Lean Approach: Minimum Viable
Products. Link
Internet resources

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Reflection
š Today I learned…
š I was suprised by...
š I will use...
Go to XXX
#YY
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Info about next workshops in Vilnius
2018 April
Lean startup
2018 June
Using Business
model canvas
to assess and
focus business
development
2018 September
How Customer
Discoveryguides
business models
2018 October
Client match-
making meetup
2019 February
’I Bring the Idea’
matchmaking
session
2019 May
How to design a
product using
User Experience
2019 June
How to conduct
interviews and receive
customer inputs
2019 July
Spinout vs Startup
– differences, how
to operate and
succeed
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31. H2020 GA #780460
GET UNCOMFORTABLE
GET OUT OF THE BUILDING
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https://merlin-ict.eu @Merlin_ICT