lean analytics by alistair croll, author, lean analytics

SMALL BATCHES

Why cycle time trumps scale,

why everything is changing,

and why now.

Why does Lean matter to clouds?

Don’t sell what you can make. Make what you can sell.

Kevin Costner is a lousy entrepreneur.

Why now?

Why now?

Why now?

Small batches.

3D printing

Cloud computing & shared services.

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Crowdfunding

Small batches matter.

Eating the world

http://www.flickr.com/photos/ebolasmallpox/3733059220/

Software has no choicebut to record its actions.

http://www.flickr.com/photos/jenny-pics/3239638494/sizes/l/

A closed loopof continuous improvement

http://www.flickr.com/photos/spacepleb/1779158639/

“... a closed signaling loop ... where action generates some change that triggers a system

change, originally referred to as a ‘circular causal’ relationship.”

A business that learns.

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Unfortunately,we’re terrible at learning.

Everyone’s idea is the best, right?

People love this part!

Things fall apart.

No data, no learning.

Bad at data, too.

I have two kids.At least one is a girl.

What are the chancesthe other is a boy?

BB GB

BG GG

GBBG GG

2 of 3 (66%) are boys.

Bartender: “Is your childa boy or a girl?”

Logician: “Yes.”

The

five

sta

ges

EMPATHYI’ve found a real, poorly-met need that a reachable market faces.

STICKINESSI’ve figured out how to solve the problem in a way they will keep using and pay for.

VIRALITYI’ve found ways to get them to tell their friends, either intrinsically or through incentives.

REVENUEThe users and features fuel growth organically and artificially.

SCALEI’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.

Better: bit.ly/BigLeanTable

The biggest lesson: pickOne Metric That Matters

Really? Just one?

Yes, one.

Focus is aprecious commodity.

Having one metricaddresses this problem.

www.theeastsiderla.com/2011/02/silver-lake-sidewalk-pile-up/

The other lesson.

If it doesn’t changehow you behave, it’s a

badmetric.

2008 20120

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Times a day a song in “heavy rotation” is played

EVERY 4H EVERY 55m

Nobody needs this more than big companies.

Companies that use data-driven analytics instead of intuition have 5%-6% higher productivity and profits than competitors.

2011 MIT study of 179 large publicly traded firms

Brynjolfsson, Erik, Lorin Hitt, and Heekyung Kim. "Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?." Available at SSRN 1819486 (2011).

Everything we are talking about this week is about the shift from scale to cycle time.

As a result of technology that makes the first unit as good

as the millionth.

Removing barriers to entry and many of our fundamental

business assumptions.

THE DATA-DRIVEN ORGANIZATION

ORGANISM

Dev-Ops

LeanStartup

AgileBig

DataCloud

Computing

Cycle time trumps scale.

@acroll

acroll@cloudops.com

leananalyticsbook.com

Also: Please go takebit.ly/cloudopssurvey