lean startup: an introduction

7.1.2014

Lean Startup: an introduction

Fredi Schmidli & Adrian von OrelliieLab Zürich, 7.1.2014

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Fredi Schmidli• Business Angel and

Boardmember: www.startangels.ch

• Entrepreneur• Community Builder:

- meetup.com/Lean-startup-Zurich/

- Agile Breakfasts

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Adrian von Orelli

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

product development

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Your expectations?

• ... ?• ... ?• ... ?

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11.12.2013

Collective experience?

• Who heard about• Lean Manufacturing?• Scrum/Kanban?• Lean Startup?

• Who worked with it?

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There are 2 ways

1. Conventional way or do the things right

• Assumption: machine, excellent plan and execution• Focus: Perseverance myth• Example: most Startups

2. Lean startup way or do the right things

• Assumption: Dynamic systems require self-organisation• Focus: Genchi Gembutsu• Example: Zappos, Dropbox, ...

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Lean startup way• Culture: Success can be engineered, learned, taught• Pre-requisites: Transparency, trust and courage• Method: Choose right metrics, learn fast with short

feedback loop, agile development• Goal: MVP asap and minimize cycle time• Characteristics

• Handle all nine dimensions of Business Model Canvas• Every relevant aspect (product features, marketing campaign

….) is worth an experiment (hypothesis and verification)

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What is a start up?

• Human institution designed to create new products and services under condition of extreme uncertainty. (Eric Ries)

• A Start up is a temporary organization in search of a scalable, repeatable business model Steve Blank

• BM must be found before you run out of money >> Efficient searching required

• Conclusion: apply scientific methods to search with short feedback loops to validate hypothesis

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Minimal Viable Product (Wikipedia)

The minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.

An MVP is not a minimal product, it is a strategy and process directed toward making and selling a product to customers.

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Lean Canvas (by Alexander Osterwalder)

• Culture:

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KEY PARTNERS

KEY ACTIVITIES

VALUE PROPOSITIONS

CUSTOMERRELATIONSHIP

SCUSTOMERSEGMENTS

 KEY

RESSOURCES   CHANNELS  

COST STRUCTURE REVENUE STREAMS

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Feedback loop

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Turn ideas in ......

Minimum viable Product (MVP)

Innovation accounting

Pivot or persevere?

Entrepreneurial Mgt: Stupid! It‘s the boring stuff, ...

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weeks not

years

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Examples of MVP

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MVP: Videohttp://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/

4. Test vision of service offering for Dropbox

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Examples

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http://steveblank.com/2013/07/22/an-mvp-is-not-a-cheaper-product-its-about-smart-learning/

5. Test business model for Drone based imaging system

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MVP: Rent camera and plane instead of building a drone

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Examples

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MVP

3. Test vision for flat TV

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Smart statements (from Blank and

Ries)

• Start up don’t fail because they have no product but because they lack customers• Get out of the building• Don’t be afraid to be embarrassed when

customers see your product for the first time, you will be embarrassed anyway

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History of lean management

• After WW2 Lean management (Toyota) revolutionized manufacturing

• Manufacturing processes applied to innovations kills creativity

• It took 50+ years until agile SW development methods started to successfully combine innovation with lean management principles

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Exercise (5 minutes)

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Define the MVP for your current product idea

Hint:• What do you want to learn with your MPV?• What metric will you measure?

More information

HBS article „Why lean start up changes everything“www.steveblank.com

Eric Ries „Lean start up“ Alexander Osterwalder “Business Model Generation”

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Expectations met?

• Yes?• Somehow?• No?

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Contact Information

Fredi Schmidlifredi@pragmatic-solutions.ch

Adrian von Orelliadrian@innorell.com

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