The document discusses lean innovation and increasing the success rate of startups. It proposes using an agile lean innovation framework that iterates through problem/solution fit, product/market fit, and customer creation stages using a build-measure-learn feedback loop to test hypotheses. The goal is to validate a profitable, repeatable, and scalable business model or pivot the startup in new directions based on lessons learned. It emphasizes testing value and growth hypotheses through experiments and MVPs that address real customer needs over building elaborate products with no market validation.

1. Norbert Zeller
Buchs, 7. April 2016
Lean Innovation
“Increase Success Rate of Startups”
Mit agilen Methoden
Zeit und Kosten
halbieren
7. April 2016 www.pragmatic-solutions.ch 1

2. Keep in mind
Don’t sell the products you can build
Build the products you can sell
Life is too short to build things nobody
wants
7. April 2016 www.pragmatic-solutions.ch 2

3. Norbert Zeller, norbert@pragmatic-solutions.ch, +41 79 402 74 59
• EE FH, MoM MZSG
• Management Teams in various functions
• Partner at Trivadis AG
• StartAngels member
• Board member
• Entrepreneur
• Agile executive coach at pragmatic solutions
7. April 2016 www.pragmatic-solutions.ch3

4. Wer steht hinter pragmatic solutions?
• pragmatic solutions umfasst die beiden Geschäftsfelder Business
Transformation und Business Innovation und unterstützt Unternehmen
dabei, flexiblere Strukturen aufzubauen und Innovationen schneller
umzusetzen. Seit der Gründung 2006 durch Mischa Ramseyer hat sich
pragmatic solutions zu einem führenden Anbieter für sogenannte agile
Dienstleistungen in der Schweiz entwickelt. Zu den Kunden gehören bisher
u.a. international tätige Schweizer Banken, Versicherungen, ein
Medienkonzern, High Tech Unternehmen sowie eines der grössten
Transportunternehmen. In dem Glauben, dass agile Unternehmen mit
begeisterten Mitarbeitenden und einer anpassungsfähigen Organisation
am erfolgreichsten sind, steht pragmatic solutions für einen Wandel im
Management.
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5. Goal: To improve the Success Rate
Source: Ash Maurya «Running Lean»
6
• 66% of successful Startups significantly change original
business idea
• “wrong” product and “premature” scaling
• 9/10 failing
10. März. 2015

6. Traditional versus Lean
Source: Ash Maurya: Running Lean
7

7. Goal of Lean Innovation Framework
Finding a business model, which is
• profitable
• repeatable
• scalable
or let the Startup die and start a new one
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8. Lean Innovation Framework
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9. How?
Scale
Product
Market
fit
Problem
Solution
fit
Qualitative
Validation
Quantitative
Validation
Is Business Model
profitable, repeatable
and scalable?
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By iterating Lean Canvas Ideas with Build-Measure-Learn
Feedback Loop through 3 stages until we reach:

10. Problem/Solution Fit, Prod/M-Fit?
7. April 2016
See: http://practicetrumpstheory.com/2012/02/why-lean-canvas/
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11. Where is the risk?
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12. BML Feedback loop
Design
experiment
Proposal, Pretotype,
Landing page, MVP …Results
Analyse results:
persevere, pivot
or quit?
weeks
not
years
Assumption/
Hypothesis
Run
experiment
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Source: Eric Ries: The Lean Startup

13. Types of experiments
4) Early version with minimal feature set that
can be “sold” to early adopters
1) Proposal: a document describing the solution
3) Fake demo of any kind
2) Smoke Test: Landing Page to test interest
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14. MVP Definition
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The minimum viable product is that
product which has just those
features and no more that allows
you to ship a product that early
adopters see and, at least some of
whom resonate with, pay you money
for, and start to give you feedback
on. Eric Ries

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16. 7. April 2016 21www.pragmatic-solutions.ch

17. Toyota in car entertainment system
Prototyped with android tablet
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https://youtu.be/78ajiBtkuQs

18. MVP Examples: GoPro
The first GoPro
cameras used 35mm film
and were strapped to a
person’s wrist and only
captured pictures of the
ride.
Notice: the mvp addressed
the same problem and
customer segment as the
later digital product.
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19. Minimal Viable Product
An MVP is NOT a crappy version of the final product.
The challenge is to achieve “minimal” and “viable”.
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Learning is hard and often frustrating

21. LEARN: … or pivot
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22. Experiment Report
Why is it relevant?
Quantify your goals
set scope/timebox
Plan how to execute
experiment
Results = Data
Document the learning (validated,
invalidated or inconclusive)
Test value and growth hypothesis first
Move to next experiment
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23. Summary:
Lean Innovation Framework
Scale
Product
Market
fit
Problem
Solution
fit
Customer
Discovery
Customer
Validation
Customer
Creation
38
Each hypothesis is validated via an
experiment with BML feedback loop
Is problem worth solving, are people
willing to pay and is business model
profitable, repeatable and scalable?
Hypotheses of plan A, B, C, … to Z
10. März. 2015

24. Combine “What?” with “How?”
Scale
Product
Market
fit
Problem
Solution
fit
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25. More information
• HBS article „Why lean start up changes everything“
www.steveblank.com
• Steve Blank: “Startup Owners Manual”
• Eric Ries: ”Lean start up“
• Ash Maurya: ”Running Lean”
• Alexander Osterwalder: “Business Model Generation”
• Brant Cooper: “Entrepreneurs Guide to Customer
Development”
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26. The end
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