s&f the lean startup methodology - co lab

Rev. 1.1 EN Nov. 17, 2013

Startup Definition

Human institution organized to create new products and services,

under conditions of extreme uncertainty.

Do you know about Lean Startup?

OK you say you’re lean, now what?

Startups Teams are like Sailboat Crews

Can you practice Lean with a one person startup?

In principle yes.

But it’s very inefficient …

… and that isn’t the objective

Eric Ries

Steve Blank

Alex Osterwalder

Roots: Lean Manufacturing, JIT & TPS Manufacturing

Production Line – for startups how does it apply?

Predictable – for startups which have uncertainty?

Minimizes Defects – what to minimize in startups?

JIT – what to make just in time?

How can this be?

Roots: Lean Manufacturing, JIT & TPS

For Startups, the reference to Lean

applies Asymptotically

Fundamentals:

Validated learning Talk to customers

Identify patterns

Structured approach: Build Measure Learn Match product features with customer needs (value offered to)

Figure-out and establish an “engine” of growth, but with smarts

Fast-cycle testing and deployment

Innovation accounting progress metrics

milestones, prioritization, accountability

Benefits:

Validated learning Engages all employees in the effort

Fosters to all results orientation

Structured approach: Build Measure Learn Repetitive, hence simple – in principle – to implement

Fosters flawless, faster execution

Fosters team building

Innovation accounting Fosters results orientation

Not ‘falling in love’ with innovation per se

source: http://www.bigvisible.com/services/enterprise-lean-startup-coaching/

Benefits:

Builds capital efficiency Brings pivot in sooner

less waste of time and money

capital efficiency: VC’s do care much about

Pivot: A structured course correction designed to test a

new fundamental hypothesis about the product, strategy, and “engine” of growth, leading toward growing a sustainable business

define and articulate

build the institution

Moto: Think Big . . Start Small Objectives:

Define the concierge Minimum Viable Product (MVP) Use the MVP to establish customer traction – Customer Development

Lean Thinking: Value + Growth Hypotheses 1 2

Objective 1 Define the concierge Minimum Viable Product (MVP)

1. Clear your slate

2. Start with your #1 problem

3. Eliminate nice-to-haves and don’t needs

4. Repeat 3 for your #2 and #3 problems

5. Consider other customer feature requests

6. Charge from day-one, but collect on day-30

7. Focus on learning, not optimization

8. Gear towards continuous deployment to accelerate #7

9. Distinguish between “software releases” and “marketing releases”

Define the concierge Minimum Viable Product (MVP)

Use the MVP to establish customer traction – Customer Development

Objective 2 Use the MVP to establish customer traction –

Customer Development

Define the concierge Minimum Viable Product (MVP)

Use the MVP to establish customer traction – Customer Development

Lean Thinking 1

Value Hypotheses

Lean Thinking 2

Growth Hypotheses

http://leanstartupmachine.com/validationboard/

source: http://businessmodelalchemist.com/blog/2011/

time Use the canvas During the Envision phase to initially setup the business model.

Use heavily the canvas curing the Create phase to find the best business model. Teams work on the canvas all-hands and individually.

During the Scale phase startup teams use the canvas to concentrate and find the best way to pivot.

During Scale phase the canvas is used communicate the scale-up approach and to ensure all team-members are aligned.

Source: Running Lean

Innovation Sandbox:

Parallel process with product sales

Must be run/managed as important part of the business

Customer Development: (Steve Blank)

Parallel process with product development

Customer Creation comes after proof of sales and is when you “cross the chasm” (Geoffrey Moore)

source: http://steveblank.com/category/customer-development/

Benefits for the entire Team:

• Deeper understanding of the business model

• Creativity / Design Thinking

• Quicker reflexes

Market Segments:

• Explore, quantify and test pivot options

• Expose software engineers to the business side of things

• Practice team speed for pivots

Innovation Sandbox:

Parallel process with product sales

Must be run/managed as important part of the business

Customer Development: (Steve Blank)

Parallel process with product development

Customer Creation comes after proof of sales and is when you “cross the chasm” (Geoffrey Moore)

source: http://steveblank.com/category/customer-development/

Pivoting helps generate Sales You have a product, you have some sales, even initial (e.g. Research Institution to Research Institution), how do you get more sales to real markets?

Sales bring Funding closer To get Funding (VC, Angel, private) you need real sales with good market traction, leading to reduced forecasting risk, that is reduced investment risk and up-side, that is ROI opportunities.

source: http://blog.leanstartupcircle.com/get-paid-or-get-pivoting/

Pivot Examples: Zoom in – refocusing the product on what previously had been

considered just one feature of a larger whole

Zoom out – expanding from one feature to a whole product

Customer segment – keeping the functionality of the product the same, but changing the audience focus

Customer need – changing the functionality of the product to address specific customer needs

Platform – changing from an application to a platform and vice versa e.g. customer payment change via credit card

Business architecture – changes relating with shifts in high margin, low volume, B2B, B2C approaches

Value capture – changes in the monetization or revenue model

Channel – changes relating with the sales & distribution channels

Have you practiced this?

For more information about this presentation please contact:

Dimitri Papaioannou

Email: dimitri@startupsandfounders.com

dimitri@usmarketaccess.com

Web: www.startupsandfounders.com

www.usmarketaccess.com

Thank You!

Professional Experience: Entrepreneurship Consultant, Lean Startup Advisor and Team Mentor

(2005 – present)

CIVITAS-Ketchum, General Manager, EVP Business Development (2002 – 2005)

Over 20 years of experience in consulting, general management, operations, marketing & sales, information technology, research & development and venture capital

During his career Dimitrios worked with: Osprey Ventures (Silicon Valley), PRTM (Silicon Valley), Fairchild Semiconductor (Portland, ME), SAP (Athens, Greece) and Philips Electronics (Eindhoven, The Netherlands)

Principal inventor of 17 patents in medical optical imaging and 1 in Location Based Services

Education: Cornell University, M.B.A. in Marketing

University of Virginia, Ph.D. in Physics

University of Crete, Bachelor in Physics

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