stop throwing money out the window

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STOP THROWING MONEY OUT THE WINDOW @FlaviusStef, Mozaic Works v.2, includ es design thinking

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Presentation at WebExpo Prague 2013. Description below ---- We have learned how to build software: Extreme Programming gave us the developer tools and Scrum the project management tools. But we are still investing a lot of money in our ideas and most of them fail. 9 out of 10 startups are unsuccessful. Why is that? One reason is that we still make assumptions about our users' needs. Repeat after me: "I am not my user!" This talk will discuss about minimum viable products, validated learning and continuous deployment: how to write the minimum amount of code that can teach us something about the user and only then developing the full feature (instead of waiting to have the perfect feature that maybe nobody wants).

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Page 1: Stop throwing money out the window

STOP THROWING MONEY OUT THE WINDOW@FlaviusStef, Mozaic Works

v.2, includes design thinking

Page 2: Stop throwing money out the window

Me

2001-2006Web Developer

2007-2010Startup co-founder

2011-2014Coach and TrainerAgile, Lean, Org. Change

Follow me on Twitter

More on Slideshare

Page 3: Stop throwing money out the window

1. WASTE2. LEAN STARTUP3. TECHNIQUES

4. EXAMPLES5. PRINCIPLES

Page 4: Stop throwing money out the window

1. WASTE

WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES

Page 5: Stop throwing money out the window

Syneto WCF – Active Directory

Cost to implement Total revenue0

10000

20000

30000

40000

50000

40000

6700

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The Tutorial

Not the actual app

2 months250 man-daysUsage: - 30%

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Page 8: Stop throwing money out the window

My claim

MOST BUSINESSES WASTE MONEY BECAUSE THEY INVEST IN PRODUCTS OR FEATURES

NOBODY WANTS!

Page 9: Stop throwing money out the window

Throwing money out the window?

Build something nobody wants

Build more than the users need

Opportunity cost

Page 10: Stop throwing money out the window

More?

The iPotty – Amazon Remote Headband – Inventorspot

Shoe Umbrella – Luux

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More?

The Hair Hat – FlairHair

Wheel Mate Steering Wheel Desk – Techeblog

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We assume too muchWe assume too much

Photo: itspaulkelly on Flickr

People will understand how it worksI need it, so the others do tooI understand what the user needsThe user won't be distractedThe customers will want to payIt's useful to integrate with system <X>

Page 13: Stop throwing money out the window

2.LEAN STARTUP

WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES

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Runexperiments

Photo: zhouxuan12345678 on Flickr

Do research

Create hypothesis

Design experiment

Run experiment

Analyze data

Ask question

Hypothesis false

yes

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The lean startup

Page 16: Stop throwing money out the window

The lean startup

But:- What to build?- How to measure?- What to learn?

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Design Thinking

Who is the user?

What is their problem?

How could we solve it?

What's the MVP?

Is it working?

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BUILD

MEASURELEARN

What is the problem?Who is our customer?

What is the next step?

Is it useful?Best alternative?

What is the solution?

Page 19: Stop throwing money out the window

3.TECHNIQUES

WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES

Page 20: Stop throwing money out the window

What is the problem?Who is our customer?

LEARN

InterviewsShadowing

Innovation GamesEmpathy mapLean CanvasStorytelling

Olark, Qualaroo

earlier

later

Page 21: Stop throwing money out the window

LEARN

EMPATHY MAP

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OLARK, QUALAROO

LEARN

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LEAN CANVAS

LEARN

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Document HypothesesCreate business case

Prioritized BacklogLean Canvas

MMFConcierge

UI SketchesIncremental build

BUILDWhat is the next step?What is the solution?

earlier

later

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BUILD

We believe that (capability) Will result in (outcome) We will know we are right when we see (measurable impact)

DOCUMENT HYPOTHESES

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We believe that having a mobile homepageWill result in different usage based on the consumer's countryWe will know we are right when we seeat least one country having 10% more mobile traffic

BUILD

DOCUMENT HYPOTHESES

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BUILD

xx x

x

x

x x

x x x

Minimum Marketable Feature

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BUILD

CONCIERGE

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BUILD

MEASURELEARN

Paper PrototypingFake/Landing Page

AnalyticsA/B testing

Client DemosTrack $$$ earned

Is it useful?Best alternative?

earlier

later

Page 30: Stop throwing money out the window

BUILD

MEASURELEARN

FAKE/LANDING PAGE

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BUILD

MEASURELEARN

FAKE/LANDING PAGE

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BUILD

MEASURELEARN

PAPER PROTOTYPING

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ANALYTICS

BUILD

MEASURELEARN

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BUILD

MEASURELEARN

ANALYTICS

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InterviewsShadowing

Innovation GamesEmpathy mapLean CanvasStorytelling

Olark, Qualaroo

MVPConcierge

UI SketchesIncremental build

Paper PrototypingFake/Landing Page

AnalyticsA/B testing

Client DemosTrack $$$ earned

BUILD

MEASURELEARN

Document HypothesesCreate business case

Prioritized BacklogLean Canvas

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4. EXAMPLES

WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES

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The Syneto Email Digest

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B

ML

Needs email digest (interview)

License sales

Profitable

Needs minor tweaks

Req. GUI with 8 actions/email

Needs only 1 action

Needs no extra actions2x Client Demo

5x Client Demo

Review instrumentation logs

Wait for feedbackB

M

L

B

M

L

B

M

L

L

Basic CLI

Improved CLI, released beta

Built GUI with 4 functionalities

Added one extra action

Nothing more built

B

M

L

B

M

L

Page 39: Stop throwing money out the window

Initial list

● Release Email● Delete Email● Whitelist Sender● Blacklist Sender● Release All● Delete All● Whitelist All● Blacklist All

for e

ach

ema i

lfo

r all

emai

ls

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What we implemented

● Release Email● Delete Email● Whitelist Sender● Blacklist Sender● Release All● Delete All● Whitelist All● Blacklist All

for e

ach

ema i

lfo

r all

emai

ls

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What the customers asked for

● Release Email● Delete Email● Whitelist Sender● Blacklist Sender● Release All● Delete All● Whitelist All● Blacklist All

for e

ach

ema i

lfo

r all

emai

ls

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Let's do the math

3 features x 2.5 days / feature = 7.5 days

7.5 days x 115 EUR / day = 862.5 EUR

Photo: xcode on Flickr

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Page 44: Stop throwing money out the window

B

ML

Team retrospective“Something” for SMs

NPS

What's hot, what's not

There is a need. Also received client req.

Facilitation is important

Interest validated

Is there actually interest?~ 30 attendees

Client accepted

Interviews with existing clients

Check # of registrationsB

M

L

B

M

L

B

M

L

L

Leadership Workshop (2h)

1d workshop structureLean Canvas

Built 1dCreated 2d “official” structure

Scheduled 2d for fall

Second half

B

M

L

B

M

L

TODAY

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5.PRINCIPLES

WASTE LEAN STARTUP TECHNIQUES EXAMPLES PRINCIPLES

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Generate multiple alternatives

DI VERGE CON VERGE

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Don't listen to the HiPPO

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Identify your assumptions

Weather forecastIn 10 days

Clear

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Follow the 80-20 rule

New features Existing features

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No measurement, no learning

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Release early, release often

CommitAutomatedacceptance

UX testing

Useracceptance

Scalabilitytesting

Production

git pushautomated

manual

● Build (war, gems, minified js/css)

● Run unit tests● Static analysis● Deploy artifacts

CI Server

mon

itors

launches

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WRAP-UP 1. Start by empathizingex: Empathy Map2. Identify assumptionsex: Lean Canvas3. MMFs are minimalex: Concierge4. Measure to learnex: A/B testing5. Continue refiningex: Incremental development6. Follow the money

B

ML

Page 53: Stop throwing money out the window

… more?

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THANK YOU!

Twitter: @FlaviusStefBlog: flaviusstef.wordpress.comMore slides: slideshare.net/fstef