SMALL
BATCHES
Why cycle time trumps scale,
why everything is changing,
and why now.
Why does Lean
matter to clouds?
Don’t sell what you can make. Make what you can sell.
Kevin Costner is a lousy entrepreneur.
Why now?
Why now?
Why now?
Small batches.
3D printing
Cloud computing & shared services.
http://www.flickr.com/photos/fdctsevilla/4052593758/
Social media.
Digital
channels
PhotobyGaryLerudeonFlickr.Usedunderacreativecommons
icense.https://www.flickr.com/photos/garylerude/7511464618
Crowdfunding
Small batches matter.
Eating the world
http://www.flickr.com/photos/ebolasmallpox/3733059220/
Software has no choice
but to record its actions.
http://www.flickr.com/photos/jenny-pics/3239638494/sizes/l/
A closed loop
of continuous improvement
http://www.flickr.com/photos/spacepleb/1779158639/
“... a closed signaling loop ...
where action generates some
change that triggers a system
change, originally referred to as
a ‘circular causal’ relationship.”
A business that learns.
http://www.flickr.com/photos/aussiegall/286709039/
Unfortunately,
we’re terrible at learning.
Everyone’s idea
is the best, right?
People love
this part!
Things fall
apart.
No data, no
learning.
Bad at data, too.
I have two kids.
At least one is a girl.
What are the chances
the other is a boy?
BB GB
BG GG
GBBG GG
2 of 3 (66%) are boys.
Bartender: “Is your child
a boy or a girl?”
Logician: “Yes.”
Thefivestages EMPATHY
I’ve found a real, poorly-met need that a
reachable market faces.
STICKINESS
I’ve figured out how to solve the problem in a
way they will keep using and pay for.
VIRALITY
I’ve found ways to get them to tell their friends,
either intrinsically or through incentives.
REVENUE
The users and features fuel growth organically
and artificially.
SCALE
I’ve found a sustainable, scalable business
with the right margins in a healthy ecosystem.
Better: bit.ly/BigLeanTable
The biggest lesson: pick
One Metric That Matters
Really? Just one?
Yes, one.
Focus is a
precious commodity.
Having one metric
addresses this problem.
The other lesson.
If it doesn’t change
how you behave, it’s a
bad
metric.
0
5
10
15
20
25
30
2008 2012
Times a day a song in “heavy rotation” is played
EVERY 4H EVERY 55m
Nobody needs this more
than big companies.
Companies that use data-driven
analytics instead of intuition
have 5%-6% higher productivity
and profits than competitors.
2011 MIT study of 179 large publicly traded firms
Brynjolfsson, Erik, Lorin Hitt, and Heekyung Kim. "Strength in Numbers: How Does Data-Driven
Decisionmaking Affect Firm Performance?." Available at SSRN 1819486 (2011).
Everything we are talking
about this week is about the
shift from scale to cycle time.
As a result of technology that
makes the first unit as good
as the millionth.
Removing barriers to entry
and many of our fundamental
business assumptions.
THE DATA-DRIVEN ORGANIZATION
ORGANISM
Dev-
Ops
Lean
Startup
Agile
Big
Data
Cloud
Computing
Cycle time trumps scale.
@acroll
acroll@cloudops.com
leananalyticsbook.com
Also: Please go take
bit.ly/cloudopssurvey

Lean Analytics by Alistair Croll, Author, Lean Analytics