1) The document discusses the Lean Startup methodology for improving the success rate of startups. It emphasizes building the minimum viable product and getting early customer feedback through experimentation to validate assumptions and pivot if needed, rather than spending years developing the wrong product. 2) The Lean Canvas tool is presented as a way to document the initial business idea and iterate through customer discovery, validation, and creation phases to find a scalable and repeatable business model. 3) Traditional startup approaches are contrasted with lean approaches, with lean emphasizing problem validation over predefined solutions, minimum viable products over complete features, and continuous customer input over secrecy during development.

1. 1
Dr. Adrian von Orelli, Fredi Schmidli
Zürich, Mai 2014
23.5.2014 pragmatic-solutions.ch
Startup Weekend Luzern
23. Mai 2014
«Lean Startup»
Neue Wege um das «Richtige»
zu bauen

2. 23.5.2014
Fredi Schmidli
fredi@pragmatic-solutions.ch
• Business Angel and
Boardmember:
www.startangels.ch
• Entrepreneur
• Community Builder:
- meetup.com/Lean-
startup-Zurich/
- Agile Breakfasts
2
Adrian von Orelli
Adrian@pragmatic-solutions.ch
• EE PhD ETHZ
• R&D leader
• Innovator
• 15 years of high tech
product development
pragmatic-solutions.ch

3. To improve the success rate
• 9/10 failing
• by building the wrong product
• 66% of successful Startups significantly change
original business idea
• Success does not come from a better idea, but from
method/framework which iterates your original ideas
to a working business model – before running out of
cash
Source: Ash Maurya «Running Lean»
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4. What is a start up?
A temporary organization in search of a
scalable, repeatable business model
under condition of extreme uncertainty
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The definitions from
Eric Ries, Steve Blank combined

5. In a startup the customer and what he/she might find
valuable is unknown. Value is generated by learning
these unknowns.
What is lean?
value is “providing benefit to the customer”, anything
else is waste.
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6. Lean is …
A company culture touching all aspects: Values,
Leadership, Employee Development, Empowerment,
Performance, Accountability, …
Not a collection of tools
A culture can not be copied
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7. Deming
“In God we trust,
all others must bring data”
W. Edwards Deming
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8. Goals
Finding a business model, which is
• profitable
• repeatable
• scalable
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9. Lean Innovation Framework
• documenting your initial business idea
• by iterating and experimenting
through the feedback loop
• finding out if there is a problem
worth solving and if there are
enough customers willing to pay
Scale
Product
Market
fit
Problem
Solution
fit
Customer
Discovery
Customer
Validation
Customer
Creation
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10. Lean Canvas by Ash Maurya
Problem Solution UVP Unfair Advantage
CUSTOMER
SEGMENTS
KEY Metrics CHANNELS
COST STRUCTURE REVENUE STREAMS
1 234
5
67
8
9
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Hypothesis > Experiment > Facts

11. Feedback loop
Design experiment
Proposal, Pretotype,
Landing page, MVP …
Results from
experiment
Analyze results
Pivot or persevere
weeks
not
years
Assumption/
Hypothesis
Run experiment
Creativity happens here
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12. Experiment report
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Experiment report Title Author: created:
FromLeanstackbySpark59
Background:
what are you trying tio achieve?
why is it relevant?
Falsifiable Hypothesis:
declare your expected outcome
[Specific repeatable action] will [expected measurable outcome]
Set scope and time box
Details:
How do you set up the experiment
results:
qualitative or quantitative results
next action:
What is the next experiment
validated learning:
Sumarize your learning from the experiment. (Validated, invalidated,
inconclusive.

13. Lean Innovation Framework
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14. Traditional versus lean approach
Traditional Lean
50 page business plan 1 page lean canvas
Focus on solution Focus is on problem
Specify all features Minimum viable product
Develop in secrecy Get continuous customer input
Build, launch, sell Build, measure, learn
Complete product build Incremental build
Source: Ash Maurya: Running Lean
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15. From Proposal to Product
4) MVP: early version with minimal feature set that can
be sold to early adopters
1) Proposal: a document describing the solution
3) Pretotype: “Fake” demo of any kind
2) Smoke Test: Landing Page to test interest
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16. Minimal Viable Product
A MVP is not a minimal product, it is a strategy and process
directed toward making and selling a product to customers.
The MVP is that version of a new product which allows a team to
collect the maximum amount of validated learning about
customers with the least effort. (Eric Ries)
A MVP may be a prototype, an entire product, or a sub-set of
product (such as a feature)
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17. MVP Examples
http://steveblank.com/2013/07/22/an-mvp-is-not-a-cheaper-product-its-about-smart-learning/
Test business model for Drone based imaging system
MVP: Rent camera and plane
instead of building a drone
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18. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch
Examples of MVP
http://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/
4. Test vision of service offering for Dropbox

19. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch
Examples
MVP
3. Test vision for flat TV
From Tom Kelly „the ten faces of innovation“

20. Validate your assumptions
Every experiment has three parts
1. A hypothesis that is provable/disprovable
2. The experiment itself; the thing you “build”
3. An indicator of result
Start with the most
relevant hypothesis
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21. The questions to start with
Do customers recognize that they have the problem you are
trying to solve?
The questions to verify the value and growth assumptions:
If there was a solution, would they buy it?
Would they buy it from us?
Can we build a solution for that problem?
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22. Problem Interview
Welcome: Set the scene (2min)
Interviewees demographics-target customer? (2min)
Describe top 3 problems (2min)
Rank the top three problems (4min)
Explore world view, what else keeps them awake (15min)
Wrap up. Sum up feedback to confirm understanding (2min)
Get permission to follow up. Get referrals (2min)
Document results
Ash Maurya
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23. Solution Interview
Welcome: Set the scene (2min)
Interviewees demographics-target segment ? (2min)
Tell a story - frame the product (2min)
Show Demo, MVP (15min)
Test pricing (15min)
Wrap up. Sum up feedback to confirm understanding (2min)
Get permission to follow up. Get referrals (2min)
Document results
Ash Maurya
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24. Pivot
A change in strategy
without a change in vision
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25. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch
More information
HBS article „Why lean start up changes everything“
www.steveblank.com
Ash Maurya: “Running Lean”
Eric Ries: „Lean start up“
Brant Cooper: “Entrepreneurs Guide to Customer Development”
Steve Blank: “Customer Development Manifesto”;“Startup Owners Manual”
Alexander Osterwalder: “Business Model Generation”

26. The end
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