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Methodolgies for Creating Worthwhile Information Systems
The document discusses methodologies for creating valuable information systems, emphasizing the application of lean startup principles to ensure customer-focused results. It highlights the importance of validated learning, entrepreneurship as management, and testing hypotheses about customer behavior to avoid building unwanted products. The use of minimum viable products (MVP) and agile development practices is also outlined to streamline the development process and pivot when necessary.
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Methodolgies for Creating Worthwhile Information Systems
- 1. METHODOLOGIES FOR CREATING WORTHWHILEINFORMATION SYSTEMS Confidential © 2014 FrostHub, Inc.All Rights Reserved. Doug Henderson doug@frosthub.com
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- 3. FROSTHUB Organizational Design, ProductStrategy and Software Design Consultancy Bootstrapped Startup - Operations Management Software Founded in 2010 Team of 5+ - Average 15 years of experience in software industry Partnerships
- 4. LEAN STARTUP ANDAGILE METHODS How to create an information system that provides value to your customers? History Lean Principles developed byToyota Learning and Continuous Improvement Extreme programming by IBM Customer Development methodology - Steve Blank
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- 6. “True startup productivityis not just making more stuff, but systematically figuring out the right things to build” - Eric Ries
- 7. WHAT IS ASTARTUP? A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. Treat your information systems project as a startup - be entrepreneurial
- 8. LEAN STARTUP PRINCIPLES 1.Entrepreneurs are everywhere 2. Entrepreneurship is management 3. Validated Learning 4. Build - Measure - Learn 5. Innovation Accounting
- 9. WHAT IS LEANSTARTUP? • It asks people to start measuring their productivity differently. • Startups often accidentally build something nobody wants, it doesn’t mater much if they do it on time and on budget. • Goal of a startup • Figure out the right thing to build - customers want and pay for - as quickly as possible.
- 10. ENTREPRENEURSHIP IS MANAGEMENT • Ourgoal is to create an institution, not just a product • Traditional management practices fail • Need practices and principles geared to the startup context of extreme uncertainty
- 11. VALIDATE LEARNING Process ofdemonstrating empirically that a team has discovered valuable truths about a startup’s present and future business prospects. Real customers Empirical data - source of knowledge is acquired by means of observation and experimentation Get out of the office
- 12. EXAMPLES • Will peoplelisten to music privately in public setting? • Will people pay for music online? • Will people share their personal moments in a public portal? • Will people share their dating interests publicly? Validate hypothesis about customer behavior
- 13. THINK BIG, STARTSMALL Zappos • Is there sufficient demand for and superior online shopping experience for shoes? • Built a product (smoke and mirrors) - tested it - learned
- 14. VALUEVS.WASTE • Which ofour efforts are value-creating and which are wasteful? • Lean thinking - defines value as providing benefit to the customers; anything else is waste. • Wrong Assumptions - go down a wasteful path without validation
- 15. HYPOTHESISTESTS • Value Hypothesis- tests whether a product or service really delivers value to customers once they are using it. • Growth Hypothesis - test how new customers will discover a product or service
- 16. DOTHIS OVER ANDOVER AGAIN
- 18. PITFALLS • You testthe wrong thing • You do this when you misunderstand the real problem • Your MVP is bloated • Don’t build a thing in the beginning • You don’t define any success metrics • take any positive signals as validation • You are asking the wrong questions • You didn’t pivot properly
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- 21. TEAM STRUCTURE • ProductOwner • Scrum Master • Front-end Developer • Back-end Programmer • Software Architect • Quality Assurance Engineer • User Interface Designer
- 23. MINIMUMVIABLE PRODUCT • THE“MVP” The smallest amount of work you can do to validate your assumptions. • Not always a product • Not what you are going to sell with minimal features
- 24. DON’T BUILDTHIS CAR DESIGNEDBY "AN AVERAGE SCHMO."
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- 34. WE LEARNED • SomeMVPs were bloated • We didn’t do enough exploration or concierge experiments • We have built too much functionality that is not valuable to the users • Needed to shorten our build-measure-learn cycles
- 35. CUSTOMERTESTING • Test withpeople you didn’t know before • Users will always think they need something more • Finding early adopters • Continuing the conversations and co-design
- 36. PIVOT Change directions -but stay grounded in what you have learned
- 37. PIVOTS • Twitter -Odeo, podcasts • Groupon -The Point, online fundraising • Starbucks - espresso makers • Flickr - Game Neverending, game • Instagram - Brbn, check in app • Suzuki - weaving looms • Wrigley - soap
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- 41. RESOURCES • Startup resources www.leanlaunchlab.com www.leanstartupmachine.com www.startuplessonslearned.com www.theleanstartup.com www.quickmvp.com www.javelin.com/experiment- board.html •Prototyping tools www.axure.com http://balsamiq.com • Tools Google Apps Amazon Web Services Evernote Jira and HipChat - Atlassian PivotalTracker Watch SiliconValley on HBO
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