lean startup hardware examples

Dr. Adrian von Orelli

Zürich, December 16 2015

Lean Startup Hardware examples

126.2.15 www.pragmatic-solutions.ch

Angelday

Adrian von Orelli

• EE PhD ETHZ • R&D leader• Innovator• 15 years of high tech

product development

1./2.12.2015 www.pragmatic-solutions.ch 2

What are we talking about

• Discuss lean startup examples in the hardware domain

• Talk about the mindset aspect of lean startup


Improve the success rate above 10%

5

• 66% of successful products/companies significantly change original business idea

• Develop product in half the time and at half the cost (GE)

• Reduce failure: “wrong” product and “premature” scaling

• Success is not driven by the best initial idea, but by a team that can learn fast what customers really value and have discipline and speed in developing the solution iteratively


In other words


In SW this is ok but HW needs a detailed plan to be executed.

7

• Developing a HW product nobody wants wastes even more money than in a SW project.

• HW is less flexible than SW. Incorporating user feedback late in the game generates huge delays and costs.

• Feasibility of the solution is often not the highest risk


Traditional versus lean approach


Source: Hansruedi Lingg


Three Innovation Horizons

9

Horizon 1

Horizon 2

Horizon 3

Core Business

Emerging Business

Exploration known

Semi-known

unknown

New disruptive business model

Business Model Innovation

Process Innovation

Todays growth & tomorrows cash flow

Generate today’s cash flow

Options on future high growth business

Source: Baghai, Coley, White, Blank

time

$

Lean Innovation Framework

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Feedback loop

Design experiment

Proposal, Pretotype,Landing page, MVP …Results

Analyze results pivot or persevere weeks

not

years

Assumption/Hypothesis

Run experiment

Creativity happens here

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Hypothesis driven Development


From Proposal to Product

4) Early version with minimal feature set that can be sold to early adopters

1) Proposal: a document describing the solution

3) Fake demo of any kind

2) Smoke Test: Landing Page to test interest

MV

PP

reto

typ

e


Pretotype Example (Hardware)

https://www.youtube.com/watch?v=M66ZU2PCIcM

How IDEO workedin 1999


TeslaLeap of faith: In the future cars will run on electric motors.


MVP 1: «Lotus» MVP 2: «Model S»

Tesla

Model 3: 2017 @35ks


MVP Examples DropCam

"Home surveillance wasn't sexy before Dropcam"

"Dropcam built a fan base by creating a product that's dead simple to use at a price much lower than other solutions."


DropCam surveillance cameraPeople who never would have bought an IP camera will buy a Dropcam if they can install it in minutes and the Software is fun to use.


The result

“They grew 500% per year and in 2014 sold the company for 555Mio$ to Nest”


Crowdfunding

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FitBit: MVP


MVP 2009 : Simple Pedometer with charging station and data connection to computer

20152009

MVP Examples: iPhone 1

• There’s no need for a keyboard, the touchscreen can suffice

• A mobile phone can support a full web browser, and this will be valuable to users


Excel at the core use case, do the rest later

MVP Examples: iPhone 1


Global Apple iPhone sales from 3rd quarter 2007 to 1st quarter 2015

MVP Examples GoPro

Leap of Faith: People will buy dedicated sports cameras to take pictures from their friends while surfing.

“GoPro makes heros.”


MVP Examples GoPro

The first GoPro cameras used 35mm film and were strapped to a person’s wrist and only captured pictures of the ride. (2005)


MVP Examples Jibo

MIT project raise 3Mio$ on Indiegogo”


Minimal Viable Product

An MVP is NOT a crappy version of the final product.

The challenge is to achieve “minimal” and “viable”.

No one said that this is easy


Combination of “what” and “how”

ScaleProduct Market

fit

Problem Solution

fit


GE Fastworks

https://www.youtube.com/watch?v=TgAk7xP2a1M


GE Fastworks take aways

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Lean Startup is …


An experiment driven approach for projects in the domain of high uncertainty.

• Experimental results over arguments

• Strong compelling vision over detailed plan

• Validated learning over activity reporting