introduction to lean startup
TRANSCRIPT
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