lean startup masterclass

LEAN STARTUP MASTERCLASSHERLEEN, MARCH 26TH 2015

+ANDERSEN & ASSOCIATESCORPORATE INNOVATION & GROWTH THROUGH ENTREPRENEURSHIP + SCIENCE

YOU@PLUSANDERSEN.COM+49 151 40 133 149

ABOUT VIDAR ANDERSEN

• NORWEGIAN LIVING IN COLOGNE, DE SINCE 2005

• WORKING WITH F500 CORPORATIONS AND GOS SOLVING PROBLEMS WITH TECHNOLOGYSINCE 1996

• SERIAL STARTUP FOUNDER & ENTREPRENEUR WITH HITS & MISSES

• EDUCATOR (UNIVERSITY LECTURER ON STARTUP ENTREPRENEURSHIP, STARTUP NEXT INSTRUCTOR & CERTIFIED LEAN LAUNCHPAD EDUCATOR)

FOUNDING PRINCIPAL +ANDERSEN & ASSOCIATES

WORKED WITH E.G.

ANDERSEN FOUNDED E.G.

FEATURED & RECOGNIZED

“[Vidar Andersen] one of the most important persons in the German startup scene.” –

Wirtschafts Woche, April 2015

CERTIFIED LLP EDUCATOR @STANFORD

LLP LECTURE MARCH 2015 @ QAZVIN ISLAMIC AZAD UNIVERSITY, IRAN

WHAT WE KNOW NOWWHY STARTUPS ARE NOT SMALLER VERSIONS OF COMPANIES

STARTUPS ARE NOT SMALLER VERSIONS OF LARGER COMPANIES

A COMPANY IS A PERMANENT ORGANIZATION

DESIGNED TO EXECUTE A REPEATABLE AND SCALABLE

BUSINESS MODEL IN A PREDICTABLE AND STABLE

ENVIRONMENT

A STARTUP IS A TEMPORARY ORGANIZATION DESIGNED TO SEARCH FOR A REPEATABLE AND SCALABLE BUSINESS MODEL IN

AN ENVIRONMENT OF EXTREME UNCERTAINTY

A STARTUP IS A TEMPORARY ORGANIZATION DESIGNED TO SEARCH FOR A REPEATABLE AND

SCALABLE BUSINESS MODEL

COMPANY LIFE-CYCLE

SCALABLESTARTUP TRANSITION LARGE

COMPANY

SEARCH BUILD GROW• BUSINESS MODEL FOUND • PRODUCT-MARKET FIT • REPEATABLE SALES MODEL • MANAGERS HIRED

• CASH-FLOW BREAK-EVEN • PROFITABLE • RAPID SCALE • NEW SENIOR MANAGEMENT • AROUND 150 PEOPLE

SEARCH

BUSINESS MODEL GENERATION

CUSTOMER DEVELOPMENT

AGILE ENGINEERING

EXECUTION

LARGE COMPANY

WHAT WE KNOW NOW• STARTUPS ARE NOT SMALLER VERSIONS OF LARGER COMPANIES

• STARTUP IS TEMPORARY ORG, IN SEARCH OF SCALABLE REPEATABLE BUSINESS MODEL

• NO BUSINESS PLAN EVER SURVIVES FIRST CONTACT WITH CUSTOMERS

• BUSINESS MODEL CANVAS INSTEAD OF BUSINESS PLANS

• CUSTOMER DISCOVERY INSTEAD OF EXECUTION

• AGILE ENGINEERING PROCESSES INSTEAD OF WATERFALL

• MINIMUM VIABLE PRODUCT INSTEAD OF BETAS

• BUILD - MEASURE - LEARN: ITERATION AND SPEED OF THE ESSENCE

THE LEAN STARTUP

BUSINESS MODEL GENERATION

CUSTOMER DEVELOPMENT

AGILE ENGINEERING

THE LEAN

STARTUP=

WHAT IS A BUSINESS MODEL?

INTRODUCING BUSINESS MODEL GENERATION

BUSINESS MODEL GENERATION

CUSTOMER DEVELOPMENT

AGILE ENGINEERING

www.udacity.com/overview/Course/ep245

www.udacity.com/overview/Course/ep245

www.udacity.com/overview/Course/ep245

VALUE PROPOSITION CANVAS

https://www.youtube.com/watch?v=aN36EcTE54Q

CUSTOMER DEVELOPMENTCUSTOMER DISCOVERY & VALIDATION

BUSINESS MODEL GENERATION

CUSTOMER DEVELOPMENT

AGILE ENGINEERING

AGILE ENGINEERINGMVP, BUILD-MEASURE-LEARN IN SMALL ITERATIVE BATCHES

BUSINESS MODEL GENERATION

CUSTOMER DEVELOPMENT

AGILE ENGINEERING

AGILE ENGINEERING• MINIMUM VIABLE PRODUCT INSTEAD OF FEATURE-COMPLETE

• BUILD-MEASURE-LEARN ITERATIONS IN SMALL BATCHES INSTEAD OF VERSION COMPLETE & WATERFALL PROCESS

• GOOD ENOUGH VS PERFECT - SPEED IS OF THE ESSENCE

• DATA / TEST DRIVEN DESIGN - HYPOTHESIS TESTING

• AUTOMATED ACCEPTANCE TESTING + USER STORIES / SCENARIOSDESCRIBE WHAT WE WANT TO SEE THE SOFTWARE DO, THEN AUTOMATE THE VERIFICATION THAT THE SOFTWARE ACTUALLY DOES IT

• CONTINUOUS DEPLOYMENT, MULTIVARIABLE A/B TESTING, PAIR PROGRAMMING (XP), SCRUM & KANBAN

DEFINE YOUR PASS / FAIL CRITERIA

PASS / FAIL CRITERIA

• TESTING YOUR CRITICAL ASSUMPTIONS, YOU NEED TO DEFINE THE SUCCESS AND FAIL CRITERIA IN ADVANCE TO KEEP YOU FROM FUDGING THE FINDINGS TO FIT YOUR BELIEFS AFTER THE FACT

• IT NEEDS TO BE A QUANTITATIVE OR QUALITATIVE RESULT

• 40% IS OFTEN USED AS THE SUCCESS LIMIT

EXAMPLE

I BELIEVE THAT PEOPLE LIKE (CUSTOMER SEGMENT ) HAVE A NEED FOR OR PROBLEM D O I N G ( N E E D / A C T I O N /BEHAVIOR) AND I WILL KNOW THAT I HAVE SUCCEEDED WHEN (QUANTITATIVE / M E A S U R A B L E O U T C O M E ) O R (QUALITATIVE / OBSERVABLE OUTCOME)

THE MINIMUM

VIABLE PRODUCT (MVP)

MVP: THE SMALLEST BATCH THAT

WILL TEACH YOU SOMETHING

MORE THAN ONE WAY TO MVP

THERE ARE SEVERAL TYPES OF MVPS

THE EXPLAINER VIDEO

THE LANDING PAGE

THE WIZARD OF OZ

THE WIZARD OF OZ - ZAPPOS

MVP

THE CONCIERGE

THE CONCIERGE - FOODONTHETABLE

THE PIECEMEAL

MVP

THE PIECEMEAL - AARDVARK

CROWD FUNDING

CROWD FUNDING - COOLEST: $13.4M

MVP - SEVERAL TYPES:• EXPLAINER VIDEO (DROPBOX)

• A LANDING PAGE

• WIZARD OF OZ MVP (ZAPPOS)

• CONCIERGE MVP (FOOD ON THE TABLE)

• PIECEMEAL MVP (WIZARD OF OZ + CONCIERGE)

• CROWD FUNDING (SELL BEFORE YOU BUILD)

• SINGLE-FEATURE MVP (GOOGLE)

• ETC

DEFINE YOUR MVPWHAT CAN YOU RELEASE IN ONE DAY TO START

TESTING YOUR HYPOTHESES?

HOW AND WHAT WILL YOU TRACK?

MEASURE THE DATA FROM YOUR MVP

COMPARE DATA TO PASS / FAIL CRITERIA

ACT & ADJUST ACCORDINGLY

AND TEST AGAIN

IN BUILD - MEASURE - LEARN CYCLES

ITERATE OR PIVOT AS NEEDED

RELEASING SMALL BATCHES

IN BUILD-MEASURE-LEARN CYCLES

LET’S CONNECT:TWITTER.COM/BLACKTAR

FACEBOOK.COM/BLACKTAR LINKEDIN.COM/IN/VIDARANDERSEN

VIDARANDERSEN.COM

+ANDERSEN & ASSOCIATESCORPORATE INNOVATION & GROWTH THROUGH ENTREPRENEURSHIP + SCIENCE

YOU@PLUSANDERSEN.COM+49 151 40 133 149