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Lean	
  Startup and	
  Agile	
  Product	
  
Development
by
Niranjan	
  Nerlige	
  V,	
  M.Tech (IIT-­‐B),	
  PMI-­‐ACP	
  ,	
  SPC4,	
  CSP,	
  CSM
Founder,	
  	
  Chief	
  Consultant,	
  Scaled	
  Agile	
  Framework	
  (SAFe)	
  	
  Program	
  
Consultant,	
  Agile	
  Coach	
  and	
  Trainer.
ExelPlus Services,
Niranjan	
  Nerlige	
  V,	
  Copy	
  Right	
  Protected 1
2
NIRANJAN NERLIGE V,
M.TECH(IIT-­‐B),	
  PMI-­‐ACP,	
  CSP,	
  CSM,	
  SPC
AGILE COACH,	
  SCALED AGILE FRAMEWORK CONSULTANT AND TRAINER
• Consulting,	
  Coaching,	
  Mentoring	
  and	
  Training	
  	
  in	
  	
  Agile	
  	
  Methodologies,	
  Transitioning	
  
to	
  Agile	
  Successfully,	
  Agile-­‐CMMI,	
  Software	
  Estimation	
  and	
  Project	
  Management
• 17	
  Years	
  of	
  Overall	
  	
  Experience	
  in	
  Software	
  Quality	
  Assurance,	
  Agile	
  –Scrum,	
  XP,	
  
Hybrid,	
  	
  Deployment	
  of	
  Software	
  	
  Development	
  Processes	
  and 8	
  Years	
  as	
  a	
  Consultant	
  	
  
and	
  Entrepreneur
• Agile	
  Certified	
  Practitioner	
  (PMI-­‐ACP)	
  from	
  PMI,	
  Certified	
  Scrum	
  Master	
  (CSM)	
  , holds	
  
Certified	
  Scrum	
  Professional	
  (CSP)	
  certification	
  from	
  Scrum	
  Alliance	
  and	
  Scaled	
  Agile	
  
Framework	
  Consultant(SPC4)	
  
• Trained	
  more	
  than	
  3000	
  plus	
  professionals	
  	
  in	
  Agile	
  Methodologies	
  and	
  70	
  Plus	
  
Organisations	
  in	
  the	
  last	
  8	
  years.
• Has	
  been	
  Consultant	
  ,	
  	
  Coach	
  and	
  Trainer	
  to	
  IT	
  	
  and	
  Non	
  IT	
  	
  Organisations	
  in	
  India	
  and	
  
Overseas.
• Core	
  Committee	
  Member	
  	
  for	
  Bangalore	
  Chapter	
  Agile	
  Leadership	
  Network.
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Lean  Start  Up  
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70 % Startups fail
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Why do they fail?
Top 10 Valuable Startups
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Top 20 Reasons for failure
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Ø Attraction	
  to	
  great	
  
business	
  plan
Ø Attraction	
  to	
  Solid	
  
Strategy
Ø Attraction	
  to	
  thorough	
  
market	
  research
Ø Just	
  Do	
  it	
  
Benefits of Lean Startup
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Ø Be	
  more	
  Innovative
Ø Stop	
  wasting	
  people’s	
  time
Ø Be	
  more	
  successful
“Lean Startup isn't about being cheap [but is about] being
less wasteful and still doing things that are big.”
Roots of Lean Startup
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The	
  Lean	
  Startup	
  takes	
  its	
  name	
  from	
  the	
  lean	
  
manufacturing	
  revolution	
  that	
  Taiichi Ohno and	
  
Shigeo	
  Shingo	
  are	
  credited	
  with	
  developing	
  at	
  Toyota.	
  
Lean	
  thinking	
  is	
  radically	
  altering	
  the	
  waysupply chains	
  
and	
  production	
  systems	
  are	
  run.
About	
  Lean	
  Startup
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“The Lean Startup isn’t just about how to create a more
successful entrepreneurial business; it’s about what
we can learn from those businesses to improve
virtually everything we do. I imagine Lean Startup
principles applied to government programs, to health
care, and to solving the world’s great problems. It’s
ultimately an answer to the question How can we learn
more quickly what works and discard what doesn’t?”
—Tim O’Reilly, CEO, O’Reilly Media
Principles	
  of	
  Lean	
  Startup
1) Entrepreneurs	
  are	
  everywhere
2) Entrepreneurship	
  is	
  management
3) Validated	
  Learning
4) Build-­‐Measure-­‐Learn
5) Innovation	
  Accounting
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Entrepreneurs are everywhere
• “SnapTax”	
  was	
  developed	
  by	
  Intuit	
  (7000	
  plus	
  	
  employees)
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a human institution designed to create
new products and services under
conditions of extreme uncertainty.
Entrepreneurship is management
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So	
  it	
  requires	
  management,	
  a	
  new	
  kind	
  of	
  
management	
  specifically	
  geared	
  to	
  its	
  
context
Validated Learning
Startups	
  exist	
  not	
  to	
  make	
  stuff,	
  make	
  
money,	
  or	
  serve	
  customers.	
  
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Eg:	
  on	
  web,analytics software	
  can	
  track	
  visitor	
  behavior	
  and	
  give	
  
accurate statistics and	
  insight	
  on	
  how	
  website	
  features	
  work	
  in	
  reality
This	
  learning	
  can	
  be	
  validated	
  scientifically,	
  by	
  
running	
  experiments	
  that	
  allow	
  us	
  to	
  test	
  each	
  
element	
  of	
  our	
  vision
Build-Measure-Learn
The	
  fundamental	
  
activity	
  of	
  a	
  startup	
  is	
  
to	
  turn	
  ideas	
  into	
  
products,	
  measure	
  
how	
  customers	
  
respond,	
  and	
  then
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.
Build-­‐Measure-­‐Learn	
  Example
• The	
  mobile	
  app	
  startup	
  comes	
  up	
  with	
  an	
  idea.
• The	
  startup	
  comes	
  up	
  with	
  a business	
  model	
  canvas,	
  presented	
  in	
  a	
  short	
  
business	
  plan.	
  (BUILD)
• They	
  start	
  talking	
  with	
  customers	
  and	
  ask	
  them	
  what	
  features	
  they	
  are	
  
looking	
  for	
  in	
  an	
  app.	
  (MEASURE)
• They	
  will	
  obtain	
  the	
  feedback	
  of	
  customers.	
  (LEARN)
• Using	
  the	
  feedback	
  obtained,	
  they	
  will	
  have	
  to	
  repeat	
  Step	
  2	
  and	
  make	
  
revisions	
  on	
  the	
  business	
  plan	
  until	
  they	
  get	
  it	
  right.
• Once	
  they	
  got	
  the	
  business	
  plan	
  right,	
  they	
  would	
  proceed	
  to	
  the	
  
implementation	
  of	
  a	
  prototype,	
  or	
  the	
  MVP	
  (minimum	
  viable	
  product)	
  for	
  
testing.	
  (BUILD)
• The	
  prototype	
  is	
  then	
  shown	
  to	
  the	
  customers.	
  (MEASURE)
• Feedback	
  from	
  customers	
  is	
  obtained	
  and	
  learned.	
  (LEARN)
• Step	
  6	
  is	
  repeated,	
  making	
  improvements	
  on	
  the	
  prototype	
  until	
  they	
  got	
  
the	
  app	
  right.
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Source:  https://www.cleverism.com/how-­build-­measure-­learn-­cycle-­really-­works/
Innovation Accounting
To	
  improve	
  entrepreneurial	
  outcomes,	
  and	
  
to	
  hold	
  entrepreneurs	
  accountable,	
  we	
  
need	
  to	
  focus	
  on	
  the	
  boring	
  stuff:
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Innovation Accounting
Ø A	
  start-­‐up	
  requires	
  a	
  degree	
  of	
  fluidity	
  early.
Ø most	
  dangerous	
  moves	
  any	
  business	
  start-­‐up	
  
can	
  make	
  is	
  persevering	
  for	
  far	
  too	
  long	
  
according	
  to	
  Ries.
1) rigorously	
  measure	
  where	
  it	
  (the	
  startup)	
  is	
  right	
  now,	
  
confronting	
  the	
  hard	
  truths	
  that	
  assessment	
  reveals,
2) devise	
  experiments	
  to	
  learn	
  how	
  to	
  move	
  the	
  real	
  numbers	
  
closer	
  to	
  the	
  ideal	
  reflected	
  in	
  the	
  business	
  plan.
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Innovation Accounting-Example
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Lean Startup Methodology
“The	
  Lean	
  Startup	
  method	
  teaches	
  you	
  
how	
  to	
  drive	
  a	
  startup-­‐how	
  to	
  steer,	
  when	
  
to	
  turn,	
  and	
  when	
  to	
  persevere-­‐and	
  grow	
  a	
  
business	
  with	
  maximum	
  acceleration.”
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Lean Startup Process-New Product
Development
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Traditional V/S Agile Product Development
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Product Development in a Lean Startup
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Lean	
  Startup	
  and	
  Agile	
  Development
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source:https://newentrepreneurship.nl/lean-­startup-­method/
Lean	
  Startup	
  and	
  Agile	
  Difference
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http://cabforward.com/the-­differences-­between-­lean-­startup-­and-­agile-­methodology/
Eliminate Uncertainty
• Lack	
  of	
  Tailored	
  
management	
  process
• Abandon	
  all	
  process	
  
and	
  take	
  just	
  do	
  it	
  
approach
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Continuous Innovation
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Work Smarter not harder
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• Don’t	
  ask	
  the	
  question	
  ”	
  Can	
  
this	
  product	
  be	
  built”	
  	
  ask	
  
”Should	
  this	
  product	
  be	
  built”
• Experiment	
  it	
  than	
  just	
  
theoretical	
  enquiry	
  
• Then,	
  
– enlist	
  early	
  adopters
– Add	
  employees	
  	
  to	
  each	
  
experiment	
  or	
  iteration
– Customer	
  development
Build an MVP
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• Figuring	
  the	
  problem	
  to	
  be	
  
solved	
  
• Then	
  develop	
  minimum	
  viable	
  
product	
  (MVP)
• Measurement,	
  learning	
  and	
  
tuning	
  the	
  engine
• Use	
  5	
  whys	
  to	
  know	
  the	
  cause	
  
and	
  effect
• Pivot	
  if	
  the	
  company	
  is	
  not	
  
moving	
  the	
  drivers	
  of	
  business
• test	
  a	
  new	
  fundamental	
  
hypothesis	
  about	
  the	
  product,	
  
strategy	
  and	
  engine	
  of	
  growth. Image  courtesy  :https://mobisoftinfotech.com/services/mvp-­
development-­services
Use Build- Measure-Learn loop
©Niranjan    N  V,  Exelplus  Services
©Niranjan    N  V,  Exelplus  Services
Validated Learning
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• Demonstrating	
  progress	
  in	
  the	
  soil	
  of	
  
extreme	
  uncertainty
• measuring	
  it	
  against	
  potential	
  
customers	
  to validate the	
  effect.
• Customers	
  will	
  pay	
  
• Need	
  not	
  spend	
  months	
  waiting	
  for	
  
a	
  beta	
  launch	
  to	
  change	
  direction
ZAPPOS	
  Case	
  Study
• One	
  of	
  the	
  biggest	
  online	
  shoe	
  and	
  clothing	
  shops	
  in	
  the	
  world
• founded	
  in	
  1999	
  as	
  a	
  startup
• It	
  was	
  originally	
  just	
  a	
  site	
  where	
  customers	
  can	
  order	
  shoes
• It	
  is	
  not	
  a	
  manufacturer	
  or	
  a	
  retailer	
  since	
  it	
  does	
  not	
  have	
  any	
  
shoe	
  inventory.
• This	
  was	
  the	
  Build	
  phase
• When	
  the	
  first	
  orders	
  started	
  coming	
  in,	
  the	
  founders	
  of	
  the	
  
startup	
  went	
  to	
  a	
  local	
  store	
  to	
  purchase	
  the	
  shoes
• Subsequently	
  shipped	
  them	
  to	
  the	
  customers	
  who	
  placed	
  the	
  
order.
• This	
  was	
  where	
  they	
  implemented	
  the	
  Measure	
  phase	
  of	
  the	
  
cycle.
• Founders	
  tried	
  to	
  gauge	
  the	
  interest	
  of	
  the	
  customers	
  in	
  their	
  
idea	
  and	
  even	
  obtained	
  their	
  thoughts	
  and	
  reactions.
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Contd….
• Using	
  the	
  lessons	
  learned	
  from	
  the	
  first	
  orders,	
  they	
  made	
  the	
  
necessary	
  adjustments	
  and	
  iteration
• applied	
  improvements,	
  and	
  continued	
  the	
  cycle.
• by	
  using	
  the	
  Build-­‐Measure-­‐Learn	
  approach,	
  it	
  was	
  able	
  to	
  test	
  the	
  
waters	
  first
• Zappos	
  could	
  have	
  gone	
  another	
  route	
  entirely.
• Instead	
  of	
  spending	
  a	
  lot	
  of	
  time	
  building	
  its	
  inventory	
  and	
  hiring	
  
personnel	
  to	
  handle	
  operations
• getting	
  orders	
  first	
  before	
  procuring	
  the	
  shoes	
  was	
  more	
  important	
  
• Their	
  first	
  attempt	
  worked,	
  and	
  it	
  was	
  only	
  then	
  that	
  the	
  founders	
  
decided	
  to	
  continue	
  (“persevere”)	
  with	
  it.
• If	
  they	
  Build-­‐Measure-­‐Learn	
  feedback	
  loop.	
  It	
  would	
  probably	
  still	
  
have	
  succeeded,	
  but	
  they	
  may	
  have	
  taken	
  more	
  time	
  to	
  achieve	
  the	
  
results
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SnapTax	
  Case	
  Study
• In	
  2009,	
  a	
  startup	
  decided	
  to	
  try	
  something	
  really	
  audacious
• They	
  wanted	
  to	
  liberate	
  taxpayers	
  from	
  expensive	
  tax	
  stores	
  (the	
  
end-­‐of-­‐year	
  statement	
  that	
  most	
  employees	
  receive	
  from	
  their	
  
employer	
  to	
  know	
  the	
  taxable	
  wages)	
  
• The	
  startup	
  quickly	
  ran	
  into	
  difficulties.
• Even	
  though	
  many	
  consumers	
  had	
  access	
  to	
  a	
  printer/scanner	
  in	
  
their	
  home	
  or	
  office,	
  few	
  knew	
  how	
  to	
  use	
  those	
  devices.
• After	
  numerous	
  conversations	
  with	
  potential	
  customers,	
  the	
  team	
  
lit	
  upon	
  the	
  idea	
  of	
  having	
  customers	
  take	
  photographs	
  of	
  the	
  
forms	
  directly	
  from	
  their	
  cell	
  phone
• customers	
  asked	
  something	
  unexpected:	
  would	
  it	
  be	
  possible	
  to	
  
finish	
  the	
  whole	
  tax	
  return	
  right	
  on	
  the	
  phone	
  itself?
• It	
  wasn’t	
  easy	
  task	
  as	
  traditional	
  tax	
  preparation	
  had	
  	
  hundreds	
  of	
  
questions,	
  many	
  forms	
  and	
  lot	
  of	
  paper	
  work
35Niranjan	
  Nerlige	
  V,	
  Copy	
  Right	
  Protected
SnapTax	
  Case	
  Study-­‐Contd….
• Decided	
  to	
  ship	
  an	
  early	
  version	
  of	
  its	
  product	
  that	
  could	
  do	
  much	
  
less	
  than	
  a	
  complete	
  tax	
  package
• The	
  initial	
  version	
  worked	
  only	
  for	
  consumers	
  with	
  a	
  very	
  simple	
  
return	
  to	
  file	
  ,	
  only	
  in	
  california
• Instead	
  of	
  having	
  consumers	
  fill	
  out	
  a	
  complex	
  form,	
  they	
  allowed	
  
the	
  customers	
  to	
  use	
  the	
  phone’s	
  camera	
  to	
  take	
  a	
  picture	
  of	
  their	
  
W-­‐2	
  forms
• Instead	
  	
  fill	
  out	
  a	
  complex	
  form,	
  customers	
  to	
  use	
  the	
  phone’s	
  
camera	
  to	
  take	
  a	
  picture	
  of	
  their	
  W-­‐2	
  forms
• new	
  product—called	
  SnapTax—provides	
  a	
  magical	
  experience	
  	
  
Compared	
  with	
  the	
  drudgery	
  of	
  traditional	
  tax	
  fling
• Its	
  nationwide	
  launch	
  in	
  2011	
  	
  more	
  than	
  350,000	
  downloads	
  in	
  
the	
  first	
  three	
  weeks
• kind	
  of	
  amazing	
  innovation	
  you’d	
  expect	
  from	
  a	
  new	
  startup.
36Niranjan	
  Nerlige	
  V,	
  Copy	
  Right	
  Protected
References
• Lean	
  Start	
  up	
  by	
  Eric	
  Ries
• Blog	
  -­‐ https://www.cleverism.com/how-­‐build-­‐measure-­‐learn-­‐
cycle-­‐really-­‐works/
• Running	
  Lean:	
  Iterate	
  from	
  Plan	
  A	
  to	
  a	
  Plan	
  That	
  Works	
  (Lean	
  
(O'Reilly))
37Niranjan	
  Nerlige	
  V,	
  Copy	
  Right	
  Protected
Thank	
  You	
  For	
  Your	
  Time	
  …………..
Global	
  Excellence	
  Through	
  Innovative	
  solutions
38
Niranjan	
  N.V.,	
  M.Tech	
  (IIT-­‐B),	
  PMI-­‐ACP,	
  CSP,	
  CSM,	
  SPC4
Founder,	
  	
  Chief	
  Consultant,	
  Scaled	
  Agile	
  Framework	
  (SAFe)	
  	
  Program	
  Consultant,	
  Agile	
  Coach	
  and	
  Trainer.
ExelPlus	
  Services,
A1,	
  Samhita	
  Vista,	
  1st	
  Main,	
  Pai	
  Lay	
  Out,	
  Old	
  Madras	
  Road	
  
Bangalore-­‐560016,INDIA
Tel:	
  +91	
  9900055943
E	
  mail:	
  niranjan@exelplus.com
Linkedin:	
  in.linkedin.com/in/niranjannerlige/
Please	
  feel	
  free	
  to	
  contact	
  us	
  for:
i)	
  Agile	
  Solutions	
  and	
  organization	
  wide	
  Transformations
ii)	
  Agile,	
  Scrum	
  Project	
  Management	
  Consulting	
  and	
  Training
iii)	
  Scaling	
  Agile	
  at	
  Enterprise	
  Level	
  using	
  SAFe
iii)	
  Estimation Competency	
  solutions	
  

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Lean startup and Agile Development

  • 1. Lean  Startup and  Agile  Product   Development by Niranjan  Nerlige  V,  M.Tech (IIT-­‐B),  PMI-­‐ACP  ,  SPC4,  CSP,  CSM Founder,    Chief  Consultant,  Scaled  Agile  Framework  (SAFe)    Program   Consultant,  Agile  Coach  and  Trainer. ExelPlus Services, Niranjan  Nerlige  V,  Copy  Right  Protected 1
  • 2. 2 NIRANJAN NERLIGE V, M.TECH(IIT-­‐B),  PMI-­‐ACP,  CSP,  CSM,  SPC AGILE COACH,  SCALED AGILE FRAMEWORK CONSULTANT AND TRAINER • Consulting,  Coaching,  Mentoring  and  Training    in    Agile    Methodologies,  Transitioning   to  Agile  Successfully,  Agile-­‐CMMI,  Software  Estimation  and  Project  Management • 17  Years  of  Overall    Experience  in  Software  Quality  Assurance,  Agile  –Scrum,  XP,   Hybrid,    Deployment  of  Software    Development  Processes  and 8  Years  as  a  Consultant     and  Entrepreneur • Agile  Certified  Practitioner  (PMI-­‐ACP)  from  PMI,  Certified  Scrum  Master  (CSM)  , holds   Certified  Scrum  Professional  (CSP)  certification  from  Scrum  Alliance  and  Scaled  Agile   Framework  Consultant(SPC4)   • Trained  more  than  3000  plus  professionals    in  Agile  Methodologies  and  70  Plus   Organisations  in  the  last  8  years. • Has  been  Consultant  ,    Coach  and  Trainer  to  IT    and  Non  IT    Organisations  in  India  and   Overseas. • Core  Committee  Member    for  Bangalore  Chapter  Agile  Leadership  Network. Niranjan  Nerlige  V,  Copy  Right  Protected
  • 3. 3Niranjan  Nerlige  V,  Copy  Right  Protected Lean  Start  Up  
  • 4. 4Niranjan  Nerlige  V,  Copy  Right  Protected 70 % Startups fail
  • 5. 5Niranjan  Nerlige  V,  Copy  Right  Protected Why do they fail?
  • 6. Top 10 Valuable Startups 6Niranjan  Nerlige  V,  Copy  Right  Protected
  • 7. Top 20 Reasons for failure 7Niranjan  Nerlige  V,  Copy  Right  Protected Ø Attraction  to  great   business  plan Ø Attraction  to  Solid   Strategy Ø Attraction  to  thorough   market  research Ø Just  Do  it  
  • 8. Benefits of Lean Startup 8Niranjan  Nerlige  V,  Copy  Right  Protected Ø Be  more  Innovative Ø Stop  wasting  people’s  time Ø Be  more  successful “Lean Startup isn't about being cheap [but is about] being less wasteful and still doing things that are big.”
  • 9. Roots of Lean Startup 9Niranjan  Nerlige  V,  Copy  Right  Protected The  Lean  Startup  takes  its  name  from  the  lean   manufacturing  revolution  that  Taiichi Ohno and   Shigeo  Shingo  are  credited  with  developing  at  Toyota.   Lean  thinking  is  radically  altering  the  waysupply chains   and  production  systems  are  run.
  • 10. About  Lean  Startup 10Niranjan  Nerlige  V,  Copy  Right  Protected “The Lean Startup isn’t just about how to create a more successful entrepreneurial business; it’s about what we can learn from those businesses to improve virtually everything we do. I imagine Lean Startup principles applied to government programs, to health care, and to solving the world’s great problems. It’s ultimately an answer to the question How can we learn more quickly what works and discard what doesn’t?” —Tim O’Reilly, CEO, O’Reilly Media
  • 11. Principles  of  Lean  Startup 1) Entrepreneurs  are  everywhere 2) Entrepreneurship  is  management 3) Validated  Learning 4) Build-­‐Measure-­‐Learn 5) Innovation  Accounting 11Niranjan  Nerlige  V,  Copy  Right  Protected
  • 12. Entrepreneurs are everywhere • “SnapTax”  was  developed  by  Intuit  (7000  plus    employees) 12Niranjan  Nerlige  V,  Copy  Right  Protected a human institution designed to create new products and services under conditions of extreme uncertainty.
  • 13. Entrepreneurship is management 13Niranjan  Nerlige  V,  Copy  Right  Protected So  it  requires  management,  a  new  kind  of   management  specifically  geared  to  its   context
  • 14. Validated Learning Startups  exist  not  to  make  stuff,  make   money,  or  serve  customers.   14Niranjan  Nerlige  V,  Copy  Right  Protected Eg:  on  web,analytics software  can  track  visitor  behavior  and  give   accurate statistics and  insight  on  how  website  features  work  in  reality This  learning  can  be  validated  scientifically,  by   running  experiments  that  allow  us  to  test  each   element  of  our  vision
  • 15. Build-Measure-Learn The  fundamental   activity  of  a  startup  is   to  turn  ideas  into   products,  measure   how  customers   respond,  and  then 15Niranjan  Nerlige  V,  Copy  Right  Protected .
  • 16. Build-­‐Measure-­‐Learn  Example • The  mobile  app  startup  comes  up  with  an  idea. • The  startup  comes  up  with  a business  model  canvas,  presented  in  a  short   business  plan.  (BUILD) • They  start  talking  with  customers  and  ask  them  what  features  they  are   looking  for  in  an  app.  (MEASURE) • They  will  obtain  the  feedback  of  customers.  (LEARN) • Using  the  feedback  obtained,  they  will  have  to  repeat  Step  2  and  make   revisions  on  the  business  plan  until  they  get  it  right. • Once  they  got  the  business  plan  right,  they  would  proceed  to  the   implementation  of  a  prototype,  or  the  MVP  (minimum  viable  product)  for   testing.  (BUILD) • The  prototype  is  then  shown  to  the  customers.  (MEASURE) • Feedback  from  customers  is  obtained  and  learned.  (LEARN) • Step  6  is  repeated,  making  improvements  on  the  prototype  until  they  got   the  app  right. 16Niranjan  Nerlige  V,  Copy  Right  Protected Source:  https://www.cleverism.com/how-­build-­measure-­learn-­cycle-­really-­works/
  • 17. Innovation Accounting To  improve  entrepreneurial  outcomes,  and   to  hold  entrepreneurs  accountable,  we   need  to  focus  on  the  boring  stuff: 17Niranjan  Nerlige  V,  Copy  Right  Protected
  • 18. Innovation Accounting Ø A  start-­‐up  requires  a  degree  of  fluidity  early. Ø most  dangerous  moves  any  business  start-­‐up   can  make  is  persevering  for  far  too  long   according  to  Ries. 1) rigorously  measure  where  it  (the  startup)  is  right  now,   confronting  the  hard  truths  that  assessment  reveals, 2) devise  experiments  to  learn  how  to  move  the  real  numbers   closer  to  the  ideal  reflected  in  the  business  plan. 18Niranjan  Nerlige  V,  Copy  Right  Protected
  • 19. Innovation Accounting-Example 19Niranjan  Nerlige  V,  Copy  Right  Protected
  • 20. Lean Startup Methodology “The  Lean  Startup  method  teaches  you   how  to  drive  a  startup-­‐how  to  steer,  when   to  turn,  and  when  to  persevere-­‐and  grow  a   business  with  maximum  acceleration.” 20Niranjan  Nerlige  V,  Copy  Right  Protected
  • 21. Lean Startup Process-New Product Development 21Niranjan  Nerlige  V,  Copy  Right  Protected
  • 22. Traditional V/S Agile Product Development 22Niranjan  Nerlige  V,  Copy  Right  Protected
  • 23. Product Development in a Lean Startup 23Niranjan  Nerlige  V,  Copy  Right  Protected
  • 24. Lean  Startup  and  Agile  Development 24Niranjan  Nerlige  V,  Copy  Right  Protected source:https://newentrepreneurship.nl/lean-­startup-­method/
  • 25. Lean  Startup  and  Agile  Difference 25Niranjan  Nerlige  V,  Copy  Right  Protected http://cabforward.com/the-­differences-­between-­lean-­startup-­and-­agile-­methodology/
  • 26. Eliminate Uncertainty • Lack  of  Tailored   management  process • Abandon  all  process   and  take  just  do  it   approach 26Niranjan  Nerlige  V,  Copy  Right  Protected
  • 27. Continuous Innovation 27Niranjan  Nerlige  V,  Copy  Right  Protected
  • 28. Work Smarter not harder 28Niranjan  Nerlige  V,  Copy  Right  Protected • Don’t  ask  the  question  ”  Can   this  product  be  built”    ask   ”Should  this  product  be  built” • Experiment  it  than  just   theoretical  enquiry   • Then,   – enlist  early  adopters – Add  employees    to  each   experiment  or  iteration – Customer  development
  • 29. Build an MVP 29Niranjan  Nerlige  V,  Copy  Right  Protected • Figuring  the  problem  to  be   solved   • Then  develop  minimum  viable   product  (MVP) • Measurement,  learning  and   tuning  the  engine • Use  5  whys  to  know  the  cause   and  effect • Pivot  if  the  company  is  not   moving  the  drivers  of  business • test  a  new  fundamental   hypothesis  about  the  product,   strategy  and  engine  of  growth. Image  courtesy  :https://mobisoftinfotech.com/services/mvp-­ development-­services Use Build- Measure-Learn loop
  • 30. ©Niranjan    N  V,  Exelplus  Services
  • 31. ©Niranjan    N  V,  Exelplus  Services
  • 32. Validated Learning 32Niranjan  Nerlige  V,  Copy  Right  Protected • Demonstrating  progress  in  the  soil  of   extreme  uncertainty • measuring  it  against  potential   customers  to validate the  effect. • Customers  will  pay   • Need  not  spend  months  waiting  for   a  beta  launch  to  change  direction
  • 33. ZAPPOS  Case  Study • One  of  the  biggest  online  shoe  and  clothing  shops  in  the  world • founded  in  1999  as  a  startup • It  was  originally  just  a  site  where  customers  can  order  shoes • It  is  not  a  manufacturer  or  a  retailer  since  it  does  not  have  any   shoe  inventory. • This  was  the  Build  phase • When  the  first  orders  started  coming  in,  the  founders  of  the   startup  went  to  a  local  store  to  purchase  the  shoes • Subsequently  shipped  them  to  the  customers  who  placed  the   order. • This  was  where  they  implemented  the  Measure  phase  of  the   cycle. • Founders  tried  to  gauge  the  interest  of  the  customers  in  their   idea  and  even  obtained  their  thoughts  and  reactions. 33Niranjan  Nerlige  V,  Copy  Right  Protected
  • 34. Contd…. • Using  the  lessons  learned  from  the  first  orders,  they  made  the   necessary  adjustments  and  iteration • applied  improvements,  and  continued  the  cycle. • by  using  the  Build-­‐Measure-­‐Learn  approach,  it  was  able  to  test  the   waters  first • Zappos  could  have  gone  another  route  entirely. • Instead  of  spending  a  lot  of  time  building  its  inventory  and  hiring   personnel  to  handle  operations • getting  orders  first  before  procuring  the  shoes  was  more  important   • Their  first  attempt  worked,  and  it  was  only  then  that  the  founders   decided  to  continue  (“persevere”)  with  it. • If  they  Build-­‐Measure-­‐Learn  feedback  loop.  It  would  probably  still   have  succeeded,  but  they  may  have  taken  more  time  to  achieve  the   results 34Niranjan  Nerlige  V,  Copy  Right  Protected
  • 35. SnapTax  Case  Study • In  2009,  a  startup  decided  to  try  something  really  audacious • They  wanted  to  liberate  taxpayers  from  expensive  tax  stores  (the   end-­‐of-­‐year  statement  that  most  employees  receive  from  their   employer  to  know  the  taxable  wages)   • The  startup  quickly  ran  into  difficulties. • Even  though  many  consumers  had  access  to  a  printer/scanner  in   their  home  or  office,  few  knew  how  to  use  those  devices. • After  numerous  conversations  with  potential  customers,  the  team   lit  upon  the  idea  of  having  customers  take  photographs  of  the   forms  directly  from  their  cell  phone • customers  asked  something  unexpected:  would  it  be  possible  to   finish  the  whole  tax  return  right  on  the  phone  itself? • It  wasn’t  easy  task  as  traditional  tax  preparation  had    hundreds  of   questions,  many  forms  and  lot  of  paper  work 35Niranjan  Nerlige  V,  Copy  Right  Protected
  • 36. SnapTax  Case  Study-­‐Contd…. • Decided  to  ship  an  early  version  of  its  product  that  could  do  much   less  than  a  complete  tax  package • The  initial  version  worked  only  for  consumers  with  a  very  simple   return  to  file  ,  only  in  california • Instead  of  having  consumers  fill  out  a  complex  form,  they  allowed   the  customers  to  use  the  phone’s  camera  to  take  a  picture  of  their   W-­‐2  forms • Instead    fill  out  a  complex  form,  customers  to  use  the  phone’s   camera  to  take  a  picture  of  their  W-­‐2  forms • new  product—called  SnapTax—provides  a  magical  experience     Compared  with  the  drudgery  of  traditional  tax  fling • Its  nationwide  launch  in  2011    more  than  350,000  downloads  in   the  first  three  weeks • kind  of  amazing  innovation  you’d  expect  from  a  new  startup. 36Niranjan  Nerlige  V,  Copy  Right  Protected
  • 37. References • Lean  Start  up  by  Eric  Ries • Blog  -­‐ https://www.cleverism.com/how-­‐build-­‐measure-­‐learn-­‐ cycle-­‐really-­‐works/ • Running  Lean:  Iterate  from  Plan  A  to  a  Plan  That  Works  (Lean   (O'Reilly)) 37Niranjan  Nerlige  V,  Copy  Right  Protected
  • 38. Thank  You  For  Your  Time  ………….. Global  Excellence  Through  Innovative  solutions 38 Niranjan  N.V.,  M.Tech  (IIT-­‐B),  PMI-­‐ACP,  CSP,  CSM,  SPC4 Founder,    Chief  Consultant,  Scaled  Agile  Framework  (SAFe)    Program  Consultant,  Agile  Coach  and  Trainer. ExelPlus  Services, A1,  Samhita  Vista,  1st  Main,  Pai  Lay  Out,  Old  Madras  Road   Bangalore-­‐560016,INDIA Tel:  +91  9900055943 E  mail:  niranjan@exelplus.com Linkedin:  in.linkedin.com/in/niranjannerlige/ Please  feel  free  to  contact  us  for: i)  Agile  Solutions  and  organization  wide  Transformations ii)  Agile,  Scrum  Project  Management  Consulting  and  Training iii)  Scaling  Agile  at  Enterprise  Level  using  SAFe iii)  Estimation Competency  solutions