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Eric Ries, Author/Speaker/Consultant, The Lean Startup
The Lean Startup by Eric Ries emphasizes the need for startups to operate as institutions that deliver new products under extreme uncertainty, advocating for a management approach tailored to this context. Successful startups pivot by changing directions based on validated learning, rather than solely adhering to traditional business practices. The core principles include prioritizing speed, minimizing waste, and conducting customer development to better understand market needs.
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Eric Ries, Author/Speaker/Consultant, The Lean Startup
- 1. The Lean Startup#leanstartup“Innovationthrough experimentation”Eric Ries (@ericries)http://StartupLessonsLearned.com
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- 5. What is astartup?A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.
- 6. Nothing to dowith size of company, sector of the economy, or industryWhat is a startup?STARTUP =EXPERIMENT
- 7. Entrepreneurship is managementOurgoal is to create an institution, not just a product
- 8. Traditional management practicesfail- “general management” as taught to MBAsNeed practices and principles geared to the startup context of extreme uncertainty
- 9. Not just for“two guys in a garage”The Pivot
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- 11. The PivotWhat dosuccessful startups have in common?
- 12. They started outas digital cash for PDAs, but evolved into online payments for eBay.
- 13. They started buildingBASIC interpreters, but evolved into the world's largest operating systems monopoly.
- 14. They were shockedto discover their online games company was actually a photo-sharing site.
- 15. Pivot: change directionsbut 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
- 16. Making ProgressIn alean transformation, question #1 is – which activities are value-creating and which are waste?
- 17. In traditional business,value is created by delivering products or services to customers
- 18. In a startup,the product and customer are unknowns. We need a new definition of value for startups: validated learning about customersTraditional Product DevelopmentUnit of Progress: Advance to Next StageWaterfallRequirementsSpecificationsDesignProblem: knownSolution:knownImplementationVerificationMaintenance
- 19. Agile Product DevelopmentUnitof Progress: A line of Working Code“Product Owner” or in-house customerProblem: knownSolution:unknown
- 20. Lean StartupUnit ofProgress: Validated Learning About Customers ($$$)Customer DevelopmentHypotheses, Experiments,InsightsProblem:unknownData, Feedback,InsightsSolution:unknownAgile Development
- 21. Minimize TOTAL timethrough the loop
- 22. There’s much more…BuildFasterUnit 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
- 24. Myth #1MythLean meanscheap. Lean startups try to spend as little money as possible.Truth The Lean Startup method is not about cost, it is about speed.
- 25. Myth #2MythThe LeanStartup 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.
- 26. Myth #3MythLean Startupsare small bootstrapped startups.Truth Lean Startups are ambitious and are able to deploy large amounts of capital.
- 27. Myth #4MythLean Startupsreplace vision with dataor customer feedback.Truth Lean Startups are driven by a compelling vision, and are rigorous about testing each element of this vision
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- 30. Getting in touch(#leanstartup)
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- 34. Lean Startup Wiki http://leanstartup.pbworks.com
- 35. Lean Startup Circle http://leanstartupcircle.com
Editor's Notes
- #10 I’m not leaving you, I’m pivoting to another man
- #18 Conference structure
- #20 Truth: The Lean Startup method is not about cost, it is about speed. Lean Startups waste less money, because they use a disciplined approach to testing new products and ideas. Lean, when used in the context of lean startup, refers to a process of building companies and products using lean manufacturing principles applied to innovation. That process involves rapid hypothesis testing, validated learning about customers, and a disciplined approach to product development.
- #21 Truth: The Lean Startup methodology applies to all companies that face uncertainty about what customers will want. This is true regardless of industry or even scale of company: many large companies depend on their ability to create disruptive innovation. Those general managers are entrepreneurs, too. And they can benefit from the speed and discipline of starting with a minimum viable product and then learning and iterating continuously.
- #22 Truth: There’s nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. What differentiates them is their disciplined approach to determining when to spend money: after the fundamental elements of the business model have been empirically validated. Because lean startups focus on validating their riskiest assumptions first, they sometimes charge money for their product from day one – but not always.
- #23 Truth: Lean Startups are driven by a compelling vision, and they are rigorous about testing each element of this vision against reality. They use customer development, split-testing, and actionable analytics as vehicles for learning about how to make their vision successful. But they do not blindly do what customers tell them, nor do they mechanically attempt to optimize numbers. Along the way, they pivot away from the elements of the vision that are delusional and double-down on the elements that show promise.