product development methods agile, scrum and lean startup

Product Development Methods: Agile, Scrum

and Lean Startupby

Krunal Naik, MBA,PMP,CSM

My Introduction• Certified PMP and CSM• Technology PM• Director, Program Manager and Mentor at PMI- local chapters• Not an expert- experiment and learn!• Waterfall, Stage gate as well as Scrum, Lean Startup

Agenda• Introduction to few methodologies• Closer look at Scrum and Lean Startup• What I have learned!• Not- endorsing any particular method/tool etc.• Not- suggesting magic formula, there is none!• These are some of my learnings out of extensive research conducted

to improve our product development process• Q&A at the end!

Waterfall/ Stage-gate

Source: https://en.wikipedia.org/wiki/Waterfall_model#/media/File:Waterfall_model.svg

Waterfall: Pros and ConsPros• Easy forward / backward planning and implementation• Gated output at the end of each stage• Visibility to others and provides a baseline to move forward• Ability to communicate a target date based on scope

Cons• Change in scope can seriously impact constraints• Issues or impacts may get rolled out from stage to stage• No working product till the end of the stage

Agile ManifestoIndividuals and interactions over processes and tools

Working software over comprehensive documentationCustomer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items onthe right, we value the items on the left more.

Reference: http://www.agilemanifesto.org/

Waterfall v/s Agile

Source: http://www.eetimes.com/document.asp?doc_id=1279137

Agile frameworks• Scrum• Lean methodology• Extreme programming• Crystal• Dynamic Systems Development Method (DSDM)• Feature-Driven Development (FDD)

Scrum• Management framework• Incremental product development • Self-organizing teams• Structure of roles, meetings, rules, and artifacts• Fixed-length iterations, called Sprints, which are typically 1-2 weeks

long (never more than 30 days)• Potentially shippable product increment every iteration.

Iterations in Scrum

Source: http://scrumreferencecard.com/scrum-reference-card/

Roles in Scrum • Product Owner• Single person responsible for maximizing the return on investment (ROI) of the development effort• Responsible for product vision• Constantly re-prioritizes the Product Backlog, adjusting any longterm expectations such as release

plans

• Scrum Development Team• Cross functional and Self managing teams• Negotiates commitments with the Product Owner, one Sprint at a time• Has autonomy regarding how to reach commitments• Intensely collaborative

• ScrumMaster• Facilitates the Scrum process• Helps resolve impediments• Creates an environment conducive to team self-organization

Scrum Meetings


Scrum Artifacts• Product Backlog• PBIs• Sprint Backlog• Sprint task• Sprint burndown chart• Product release burndown chart

Product backlog


Product Backlog Item (PBI)


Sprint Backlog


Sprint Task


Sprint Burndown Chart


Product / Release Burndown Chart


The Lean startupAs described in book by Eric Ries

Reference: Ries, Eric (2014) [2011]. The lean startup: how today's entrepreneurs use continuous innovation to create radically successful businesses. Crown Publishing. ISBN 9780307887894.

The Lean Startup Philosophy Relies on: • Validated learning • Scientific experimentation • Continuous, iterative deployment cycles

Goal: • Shorten overall development time • Measure progress • Gain valuable customer feedback • Invest when critical assumptions are proven


Achieving Failure• If we’re building something nobody wants, what does it matter if we accomplish it:

On time?On budget?

With high quality?With beautiful design?

Achieving Failure = successfully executing a bad plan


Minimum viable products (MVP)A minimum viable product (MVP) is the "version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort" (similar to a pilot experiment).The goal of an MVP is to test fundamental business hypotheses (or leap-of-faith assumptions) and to help entrepreneurs begin the learning process as quickly as possible.

MVP “Failures” • If a customer doesn’t like what you’ve made, that’s a discovery, not a

failure • Pulling the trigger on the first iterations is often the hardest step


Build-Measure-Learn Loop • Enter the Build phase as quickly as possible with an MVP that will allow us to test a clear

hypothesis we have about our product or strategy • Measure its impact in the marketplace using actionable metrics that help us analyze

customer behavior • Learn whether our original assumptions about the product, process, and customer needs

were correct or whether we need to change strategies to better meet our vision • The Build-Measure-Learn feedback loop does not end once we’ve put our first MVP into

the market • Every new launch of an MVP is an opportunity to gain valuable information about how well

we’re meeting customer needs and whether we need to adjust our strategy with a pivot • After each BML loop, either persevere or pivot


Pivot A pivot is a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.

• What do successful startups have in common?- They started out as digital cash for PDAs, but evolved into online payments for eBay.- They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly.- They were shocked to discover their online games company was actually a

photo-sharing site.


More..

Source: http://theleanstartup.com/principles

Early Adopters

• Initial Beta Group • The key is not to find the average customer but to find early adopters • Customers who feel the need for the product most acutely • Value innovation and being “first” • Are forgiving of product limitations • Are eager to provide feedback


Potential Approaches

• Build Infrastructure that Facilitates Experimentation • Create an innovation sandbox to protect the rest of the organization

from the experiment • Pick a few customers to experiment with and promise to pay them

penalties for any kind of fault during the experiment period • Select a subset of your web traffic and divert those customers to a

new experience


Essence of the Lean Startup Approach

• This approach is not about asking people to ignore their skills, values and gut instincts about products and quality • It’s about making sure that they don’t waste their time and talent

overdesigning features that are not actually important to the customer • It’s about empowering your team to leave dead-end projects and

activities behind so that they can invest their time into work that truly matters


References1. http://www.agilemanifesto.org/2. https://www.versionone.com/agile-101/agile-methodologies/3. http://scrumreferencecard.com/scrum-reference-card/4. http://leankit.com/learn/kanban/kanban-board/5. http://www.movestheneedle.com/blog/enterprise-lean-startup-experiment-ex

amples/

6. https://en.wikipedia.org/wiki/Waterfall_model7. http://www.eetimes.com/document.asp?doc_id=12791378. http://theleanstartup.com/principles9. The Lean Startup, Book by Eric Ries, ISBN: 0307887898

http://www.agilemanifesto.org/

http://www.agilemanifesto.org/

https://www.versionone.com/agile-101/agile-methodologies/



http://scrumreferencecard.com/scrum-reference-card/

http://scrumreferencecard.com/scrum-reference-card/

http://leankit.com/learn/kanban/kanban-board/

http://leankit.com/learn/kanban/kanban-board/

http://www.movestheneedle.com/blog/enterprise-lean-startup-experiment-examples/



https://en.wikipedia.org/wiki/Waterfall_model

https://en.wikipedia.org/wiki/Waterfall_model

http://www.eetimes.com/document.asp?doc_id=1279137

http://www.eetimes.com/document.asp?doc_id=1279137

http://theleanstartup.com/principles

http://theleanstartup.com/principles

Backup slides

Concierge MVPManually perform tasks related to delivering the value of your product or service.

Example: P-2-P Payments platform (name is confidential). The founding team created a peer-to-peer payment workflow via a web “responsive” application, where user can request payments from friend and family. This workflow was presented to the user as as functional website. In reality, the founding team manually processed all requests by hand, meaning they manually sent email notifications, tracked payment requests and captured billing information.

Reference: http://www.movestheneedle.com/blog/enterprise-lean-startup-experiment-examples/

Mechanical Turk (or Wizard of Oz)

For offerings where a complex backend is required, such as databases, algorithms or complex engineering, consider simulating this backend with real people or existing apps. It’s likely you can mimic the “engine” behind the scenes. Even if this takes longer for the customer to receive an answer, you will avoid wasting precious time building features the customer does not want. This is especially good for support centers.


Imposter Judo (Boomerang)If a similar ideas to yours already exist in market, you can use these as a quick and simple way to gather feedback. You might ask customers to sign-up and give you feedback on a competitors website, or repackage an existing product. This is especially effective when selling physical products, or showing early static mockups.

Example: In the early days of Zappos, the founders simply purchased shoes as needed from local shoe retailers, instead of stocking their own inventory. This allowed Zappos to test their idea fast and cheap, before investing ion their own inventory.


High HurdleRefers to any experiment where you actually make your experience more difficult to use, in an effort to gauge real interest. The higher the hurdle, the more validity you can attribute to your results.

Example: Design a sign-up process with multiple, difficult to answer questions, which adds friction to the sign-up process. This way you only capture the most passionate customers for your early testing. Over time, you can reduce the friction in order to improve your funnel.


Dry-WalletIn order to test whether your customers will actually purchase your products, and for how much, you can deploy a simulated “purchase now” experience. This may take the form of a simple e-commerce check-out, or perhaps a letter of intent request. Once the user begins the purchase process, you can simply respond with a “out of stock” message, or other elegant way to proceed such as simply not billing the customer at all.


product development methods agile, scrum and lean startup

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