The document discusses the principles of the Lean Startup methodology. It defines a startup as an experiment to deliver a new product or service under conditions of uncertainty. Rather than following a traditional product development process, the Lean Startup approach advocates for building a minimum viable product and using continuous deployment and A/B testing to rapidly validate hypotheses and learn from customers. Key principles include minimizing the time to validate learning through the build-measure-learn loop and using metrics that are actionable, accessible and auditable.

1. The Lean Startup #leanstartupEric Ries (@ericries)http://StartupLessonsLearned.com

3. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is managementValidated LearningBuild – Measure - LearnInnovation Accounting

4. Lean Startup PrinciplesEntrepreneurs are everywhere

5. What is a startup?A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

6. Nothing to do with size of company, sector of the economy, or industryWhat is a startup?STARTUP =EXPERIMENT

7. STOPWASTINGPEOPLE’STIME

8. Most Startups Fail

9. Most Startups Fail

10. Most Startups Fail

11. Who to BlameFather of scientific managementStudy work to find the best wayManagement by exceptionStandardize work into tasksCompensate workers based on performance“In the past, the man was first. In the future, the system will be first.” (1911)Frederick Winslow Taylor(1856 – 1915)

12. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is management

13. Entrepreneurship is managementOur goal is to create an institution, not just a product

14. Traditional management practices fail- “general management” as taught to MBAsNeed practices and principles geared to the startup context of extreme uncertainty

15. Not just for “two guys in a garage”The Pivot

16. I’

17. The PivotWhat do successful startups have in common?

18. They started out as digital cash for PDAs, but evolved into online payments for eBay.

19. They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly.

20. They were shocked to discover their online games company was actually a photo-sharing site.

21. Pivot: change directions but stay grounded in what we’ve learned. Speed WinsIf we can reduce the time between pivotsWe can increase our odds of successBefore we run out of money

22. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is managementValidated Learning

23. Traditional Product DevelopmentUnit of Progress: Advance to Next StageWaterfallRequirementsSpecificationsDesignProblem: knownSolution:knownImplementationVerificationMaintenance

24. Achieving FailureIf we’re building something nobody wants, what does it matter if we accomplish it:On time?On budget?With high quality?With beautiful design?Achieving Failure = successfully executing a bad plan The Lean RevolutionW. Edwards Deming(1900 – 1993)TaiichiOhno - 大野 耐(1912 – 1990)“The customer is the most important part of the production line.” -Deming

25. Agile Product DevelopmentUnit of Progress: A line of Working Code“Product Owner” or in-house customerProblem: knownSolution:unknownKent Beck(still alive)

26. Lean StartupUnit of Progress: Validated LearningSteve Blank(still alive)Customer DevelopmentHypotheses, Experiments,InsightsProblem:unknownData, Feedback,InsightsSolution:unknownAgile Development

27. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is managementValidated LearningBuild – Measure - Learn

28. Minimize TOTAL time through the loop

29. There’s much more…Build FasterUnit TestsUsability TestsContinuous IntegrationIncremental DeploymentFree & Open-SourceCloud ComputingCluster Immune SystemJust-in-time ScalabilityRefactoringDeveloper SandboxMinimum Viable ProductLearn FasterSplit TestsCustomer DevelopmentFive WhysCustomer Advisory BoardFalsifiable HypothesesProduct OwnerAccountabilityCustomer ArchetypesCross-functional TeamsSemi-autonomous TeamsSmoke TestsMeasure FasterFunnel AnalysisCohort AnalysisNet Promoter ScoreSearch Engine MarketingPredictive MonitoringMeasure FasterSplit TestsContinuous DeploymentUsability TestsReal-time Monitoring & AlertingCustomer Liaison

30. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is managementValidated LearningBuild – Measure - LearnInnovation Accounting

31. Innovation AccountingThe Three Learning MilestonesEstablish the baselineBuild a Minimum Viable Product (MVP)

32. Measure how customers behave right nowTune the engine- Experiment to see if we can improve metrics from the baseline towards the ideal Pivot or persevere- When experiments reach diminishing returns, it’s time to pivot.

33. QuestionsHow do we know when to pivot?Vision or Strategy or Product?What should we measure?How do products grow?Are we creating value?What’s in the MVP?Can we go faster?

35. Thanks!Buy the book @ http://lean.st

36. Startup Lessons Learned Blog

37. http://StartupLessonsLearned.com

38. Getting in touch (#leanstartup)

39. http://twitter.com/ericries

40. eric@theleanstartup.com

41. Additional resources

42. NEW: http://theleanstartup.com

43. SLLCONF 2011: http://sllconf.comMay 23 in SF

44. Myth #1MythLean means cheap. Lean startups try to spend as little money as possible.Truth The Lean Startup method is not about cost, it is about speed.

45. Myth #2MythThe Lean Startup is only for Web 2.0/internet/consumer software companies.Truth The Lean Startup applies to all companies that face uncertainty about what customers will want.

46. Myth #3MythLean Startups are small bootstrapped startups.Truth Lean Startups are ambitious and are able to deploy large amounts of capital.

47. Myth #4MythLean Startups replace vision with dataor customer feedback.Truth Lean Startups are driven by a compelling vision, and are rigorous about testing each element of this vision

48. Lean Startup PrinciplesEntrepreneurs are everywhereEntrepreneurship is managementValidated LearningBuild – Measure - LearnInnovation Accounting

49. Minimum Viable ProductVisionary customers can “fill in the gaps” on missing features, if the product solves a real problem

50. Allows us to achieve a big vision in small increments without going in circles

51. Requires a commitment to iteration

52. MVP is only for BIG VISION products; unnecessary for minimal products.Continuous DeploymentLearn FasterCustomer DevelopmentFive WhysBuild FasterContinuous DeploymentSmall BatchesMinimum Viable ProductRefactoringMeasure FasterSplit TestingActionable MetricsNet Promoter ScoreSEM

53. Continuous Deployment PrinciplesHave every problem onceStop the line when anything failsFast response over prevention

54. Continuous DeploymentDeploy new software quickly

55. At IMVU time from check-in to production = 20 minutes

56. Tell a good change from a bad change (quickly)

57. Revert a bad change quickly

58. And “shut down the line”

59. Work in small batches

60. At IMVU, a large batch = 3 days worth of work

61. Break large projects down into small batchesCluster Immune SystemWhat it looks like to ship one piece of code to production:Run tests locally (SimpleTest, Selenium)

62. Everyone has a complete sandbox