tie iitb - jun 11 talk on lean startup tactics
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lean startup pros & cons by anil bahuman, Charter Member, TiE Mumbai at IIT Bombay on June 11 2014TRANSCRIPT
Rapidly Testing out Assumptions of a new Business:Lean Startupand Other ApproachesAnil BahumanTiE Business BuilderGulmohar, IIT Bombay
Profile
Education – NIT-Karnataka & University of GA
Citibank, Boeing, MIT Media Lab and IIT Bombay
Startup Experience 3 years – US at GA Tech Incubator 7 years – Cofounder, CEO, Managing Director
Vice-President, Ecosystem Development at Reliance Jio Infocomm
Outline
What Lean Start-up Does not cover Example of a fictitious Lean Startup What is the Lean Start-up Approach and what
are the advantages? Lean Startup Lingo What are the Limitations? What are the Alternatives?
Customer Development Assumption-based Planning Do your own
Business PlanBusiness Plan Canvas by Alexander Osterwalder
ProcessesEntrepreneur Operating System by Gino Wickman The V/TO – Vision/Traction Organizer The EOS Model™ and Scorecard - Track 6 Major Areas and a
Scorecard The Eight Cash-Flow Drivers™ Rocks - Three to seven most important priorities that must get
done every 90 days. The 5-5-5™ - 5 values-5 roles-5 rocks/Quarter The Meeting Pulse™ and The Level 10 Meeting™ – Templates
for Meetings The Issues Solving Track™ – Template to help solve issues The Five Leadership Abilities™ – Five Leadership Abilities Clarity Break – Managing frustration. Delegate and Elevate™ and The Assistance Track™ – Identify
your sweet spot and follow five ways to help you delegate. LMA – Leadership-Management-Accountability Questionnaire The People Analyzer™– Identifying strengths of each individual in
a team The Trust Builders™ – 10 ways to keep trust levels high
NetworkingTiE-IQ Bootcamp – Peer learning environment
What to expect Refine and finish the minimal viable
product (MVP) into a ready to buy product Market your product Get the first few customers Pitch to your first group of investors
Example
Tactics
Hypothesis
10 or more people will spend ` 500for my productover next week.
What is the Lean Start-up Approach?
A new trend among Silicon Valley and Bangalore tech startups
Learn about customer behaviour at lowest possible cost
What is the Lean Start-up Approach? Origins
2008 Meltdown “The Lean Startup” by Eric Ries Steve Blank (“Four Steps to the Epiphany”) “Lean Mgmt” techniques of Japanese auto-
makers….applied to the Tech industry “Discovery-driven Planning” introduced by Rita
McGrath & Ian MacMillan in a 1995 HBR .com businesses – Engineering bias – “Customer Development”
Source:Giff Constable
Customer Development
Get Out of the Building
Lingo
Source: Eric Ries
Minimum Viable Product
Products: MVP Services: Concierge
Source: Spotify
Continuous Development Frequency:
Accept incremental improvements?
Split Testing Try out 2 versions – with and without a
feature
Actionable Metrics Metrics that show traction Vs. metrics that make you look good
Innovation Accounting
Source: Dave McClure500 Startups
Pivot Major change in business model
Build-Measure-Learn MVP-Test Traction-Revise-Iterate
Limitations
Serious Limitations
“Research stage” Annoy prospective customers Annoy prospective investors Annoy key employees Speculative activity? Akin to learning the Stock Market “Engineering” solution to Customer Development Not applicable to physical-products Exploiting Adwords does not create new Demand Hype, Bubble Not a strategy – its Tactics.
Harm Discipline Misinterpretation – Shortcut Underestimate Commitment Little knowledge Expect instant results Get carried away by over-enthusiastic
early-adopters seeking instant-gratification
100 code improvements per day
AlternativesTo Lean Approach
Source: Steve Blank
Assumption-based Planning
Source: Wikipedia
Do your ownGiff Constable
I believe that my customers have a need to______________ (Keep it Concise)
This need can be solved with ________
My intial customers will be __________
The #1 value a client wants to get out of my service is: __________
The client can also get these additional benefits: __________ and __________
I will acquire the majority of my users/customers through __________ and __________
I will make money by __________
My primary competition will be __________ and __________
We will beat them in the market due to __________ and __________
Source: Giff Constable
My biggest product risk is __________ We will solve this through __________
What assumptions does my business make, that if proven wrong could cause failure?
1. __________ 2. __________ 3. __________ 4. __________ 5. __________
Source: Giff Constable
Should you be a lean startup?1. When most of your competition are not
lean startups, Be a lean startup2. When most of your competition are
lean startups, Do Not Be a lean startup3. When half your competition is lean and
half is not, it does not matter what you choose.
4. When you have no competition as of yet, Be a lean startup and adapt later
Thanks
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