This document discusses the Lean Startup methodology. It provides background on Eric Ries and Steve Blank, who developed the Lean Startup approach. The key aspects of Lean Startup are testing business assumptions iteratively through minimum viable products to validate product-market fit, eliminating waste. Examples discussed include how Dropbox used Lean Startup in their first 3 launches, learning from each iteration. The document also outlines Lean Canvas, key metrics, build-measure-learn loops, and customer development as Lean Startup techniques. It notes a lack of explicit Lean Startup case studies in Indonesia.

1. Digital Business Model 2018-2
term
CSH2H3
KU3.08.20
Anton Herutomo, ST., M.Eng.
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2. LearningRoadmap

3. So lets talk about Lean Startup
Eric Ries
• An entrepreneur and author of the New
York Times bestseller
• Serves on the advisory board of a number
of technology startups
• In 2010, he was named entrepreneur-in-
residence at Harvard Business School and
is currently an IDEO Fellow.
• In 2007, BusinessWeek named him one of
the Best Young Entrepreneurs of Tech.
Steve Blank
• Moved from being an entrepreneur to teaching
entrepreneurship at Stanford, U.C. Berkeley,
Columbia, NYU, UCSF and Imperial College.
• The “Customer Development” model that he
developed in his book is one of the core themes
in these classes and the core of the Lean Startup
movement.
• In 2009, the San Jose Mercury News listed him
as one of the 10 Influencers in Silicon Valley.

4. Lean is everywhere

5. What is Lean Startup
• Product/market fit means being in a good market with a product that can satisfy that market.
• Lean Startup is a method of testing the assumptions and hypothesis of a business idea in an
iterative manner while validating your product/market fit before you ship a complete product.
• The key is to eliminate waste.

6. Webvan
• An online grocery business that promised to deliver products to
customers’ homes within 30 minutes
 Roughly 7 years later at the height of the dot-com bubble, an internet
startup emerged with a business model idea many investors were certain
would transform the $450 Billion grocery industry. The idea was simple:
order your groceries online, using that new-fangled thing called the
“internet,” and they’ll be delivered to your door later that same day. Sounds
awesome, right?
• Backed up by Benchmark Capital, Sequoia Capital, Softbank
Capital, Goldman Sachs, and Yahoo!
• Well-known as the poster child of the dot-com “excess” bubble that
led to the tech market crash in 2000
 In the year 2000, a year after its famed IPO, Webvan generated just shy of
$200,000 in gross revenues (Slideshare). Fractions of pennies compared
to the $800 million received from investors. The next year, 2001, Webvan
ran out of cash and went out of business.
• Why failed?
 Untested plan: wrong target audience segmentation and pricing
 Too much money, expanded too fast

7. Why should we care?

8. Where do
people use and
share about
Lean Startup
movement?

9. Who actually used Lean Startup?
• One case: Dropbox (www.dropbox.com)
• … and a lot more like:
 Zappos, USA: https://www.bullethq.com/lean-startup-zappos-how-zappos-validated-their-business-model-with-
lean/
 Airbnb, USA: https://www.virginstartup.org/how-i-made-it/lean-startup-global-brand-how-airbnb-made-it
• … even use cases in established corporation like:
 General Electric, USA: https://hbr.org/2014/04/how-ge-applies-lean-startup-practices
 Telefonica, Spain : http://lean-analytics.org/how-telefonica-implemented-lean-startup-approach-and-built-an-
intrapreneurial-culture/
• … mmm wait, any case studies in Indonesia?
 Hardly find explicit case studies in Indonesia.
 See this research paper:
https://www.researchgate.net/publication/277659345_Barriers_in_Implementing_the_Lean_Startup_Methodol
ogy_in_Indonesia_-_Case_Study_of_B2B_Startup

10. Dropbox - 1st Launch

11. Dropbox - 2nd Launch

12. Dropbox - 3rd Launch

13. Dropbox - Key Lessons
• Put something in user hands (not always a code) and get feedback ASAP. Did not focus on building
lots of features
• Not launching a product = painful, but not learning = fatal
• Launching without mainstream, old style PR

14. The Lean Startup by Eric Ries

15. How to use Lean Startup?
• Lean Canvas
• Key Metrics
• MVP (Minimum Viable Product)
• Build – Measure – Learn loop
• Customer Development

16. Lean Canvas

19. Customer Lifecycle: journey map to conversion

20. Customer Lifecycle: funnel graph - AARRR
valuable metrics before
product-market fit
valuable metrics after
product-market fit

21. Other useful metrics
• Introduced by Hootsuite https://blog.hootsuite.com/social-media-metrics/

22. Lets pause a while … FYR: for those of you interested in
cloud