introduction to lean startup

Introduction to The Lean Startup

Nawras  Skhmot  Co-­‐founder  &  Lead  Organizer  Lean  Startup  Circle  Stavanger    

Disclaimer: All content is based on Eric Ries book and presentations

Stavanger

THE LEAN STARTUP

-Eric Ries -Steve Blank

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

What is a startup? Entrepreneurs

are everywhere

“A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty”

-Eric Ries

STARTUP =

EXPERIMENT

What is a startup? Entrepreneurs

are everywhere

STOP���WASTING ���PEOPLE’S���TIME  

Should it be built? Entrepreneurs

are everywhere

Most Startups Fail  Entrepreneurs

are everywhere

Most Startups Fail  Entrepreneurs

are everywhere

•  Father of scientific management •  Standardize work into tasks •  Compensate workers based on

performance •  ‘Great Man Theory’

“In the past, the man was first. In the future, the system will be first.” (1911)

Who to Blame?  Entrepreneurs

are everywhere

Frederick Winslow Taylor

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

Practices and principles geared to the startup context of extreme uncertainty

Parallel kind of Management  Entrepreneurship is management

“A pivot is a change in strategy without a change in vision”

The Pivot  Entrepreneurship is management

-Eric Ries

The Pivot: YouTube  Entrepreneurship is management

The Pivot: YouTube  Entrepreneurship is management

The Pivot: Flickr  Entrepreneurship is management

The Premise of Lean Startup: If we can reduce the time between pivots

We can increase our odds of success Before we run out of money

Speed Wins  Entrepreneurship is management

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

Not to Justify Failure  Validated Learning

”…. 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”

Minimum Viable Product Validated Learning

-Eric Ries

MVP: Buffer Validated Learning

MVP: Buffer Validated Learning

In Lean Startup, the unit of value is learning, and everything else that does not contribute to learning is waste.

Value vs. Waste Validated Learning

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

Minimize TOTAL time through the loop

Build ���Measure ���

Learn

IDEAS

CODEDATA

LEARN BUILD

MEASURE

And much more… Build ���

Measure ���Learn

Learn  Faster    Split  Tests    

Customer  Development    

Five  Whys    

Customer  Advisory  Board    

Falsifiable  Hypotheses    

Product  Owner    

Accountability    

Customer  Archetypes    

Cross-­‐funcConal  Teams    

Semi-­‐autonomous  Teams    

Smoke  Tests  

Measure  Faster    Split  Tests  

ConCnuous  Deployment    

Usability  Tests    

Real-­‐Cme  Monitoring  &  AlerCng    

Customer  Liaison  

Measure  Faster    

Funnel  Analysis    

Cohort  Analysis    

Net  Promoter  Score    

Search  Engine  MarkeCng    

PredicCve  Monitoring  

Build  Faster    

Unit  Tests    

Usability  Tests    

ConCnuous  IntegraCon    

Incremental  Deployment    

Free  &  Open-­‐Source    

Cloud  CompuCng    

Cluster  Immune  System    

Just-­‐in-­‐Cme  Scalability    

Refactoring    

Developer  Sandbox    

Minimum  Viable  Product    

IDEAS

CODEDATA

LEARN BUILD

MEASURE

Validated Learning

Entrepreneurs are

everywhere

Entrepreneurship is management

Innovation Accounting

Build Measure

Learn

Lean Startup Principles

The Three Learning Milestones Innovation Accounting

1. ESTABLISH THE BASELINE

-  Build a MVP -  Measure how

customers behave right now

The Three Learning Milestones Innovation Accounting

1. ESTABLISH THE BASELINE

2. TUNE THE ENGINE

-  Build a MVP -  Measure how

customers behave right now

-  Experiment to see if we can improve metrics from the baseline toward the ideal

The Three Learning Milestones Innovation Accounting

1. ESTABLISH THE BASELINE

2. TUNE THE ENGINE

3. PIVOT OR PERSEVERE

-  Build a MVP -  Measure how

customers behave right now

-  Experiment to see if we can improve metrics from the baseline toward the ideal

-  When experiments reach diminishing returns, its time to pivot

QuesCons    

Stay in touch!

contact@theleanway.net  

Nawras Skhmot  

Lean Startup Circle Stavanger