ash maurya, beyond mvp - scaling lean, bos usa 2016
TRANSCRIPT
Hashtag: #leanstack
ASH MAURYA @ashmaurya
BEYOND MVP: SCALING LEAN
All my ideas started out as awesome ideas.
Not all them became awesome products.
Good ideas are rare and hard to find.
So I was ready for the search process.
But what really bothered me was my cycle time between ideas.
18-24 months between ideas.
Life’s Too Short to Build Something Nobody Wants.
BACKWARDS
Show me traction
How does this solve my problem?
#1 reason why new products fail
We waste needless time, money, and effort building the wrong product.
Solution
Awesome
`
?
?
The Innovator Bias
Your business model, NOT your solution, is THE product.
1st MINDSHIFT
01 Document your Plan A
MET
A-P
RIN
CIP
LES
02 Identify the riskiest parts of your plan
03 Systematically test your plan
Document your Plan A
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth paying attention
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Key Metrics
Key activities you measure
Channels
Path to customers
Cost Structure
Customer Acquisition Costs Distribution Costs Hosting People, etc.
Revenue Streams
Revenue Model Life Time Value Revenue Gross Margin
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
PRODUCT MARKET
Identify the riskiest parts of your plan
Document your Plan A
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Business Model Development Process
CASE-STUDY
WHAT is the riskiest assumption?
ROADSTER
WHY did they use the Lotus Esprit versus another car model?
Scale your idea in stages.2nd MINDSHIFT
Whyanother book?
Identifying what’s riskiest is quite hard.1
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Reporting on your learning is not enough.2
Validated learning
The Dichotomy of the Progress Story
Validated learning
The Dichotomy of the Progress Story
Whatever demonstrates growth
Drowning in a sea of numbers.3
What you wanted
WTF?
The reality
01 Defining Progress
OU
TLIN
E
02 Prioritizing Waste
03 Achieving Breakthrough
What do both investors and entrepreneurs want?
The hockey-stick curve
TRACTION matters above everything else
Yay!
Traction can be gamed
Traction can be gamed Same data plotted differently
What is TRACTION exactly?
A business model describes how you create, deliver, and capture value.
-Saul Kaplan
The hockey-stick curve
Track Customer behavior
Create Value Capture Value Cost (Deliver Value)
Create Value Capture Value Cost (Deliver Value)>1
VALUE EQUATION
Create Value Capture Value Cost (Deliver Value)>1
VALUE EQUATION
>=2
MONETIZATION EQUATION
Create Value Capture Value Cost (Deliver Value)> >=
TRACTION
The rate at which a business model captures monetizable value from its customers.
Saas
Freemium
Trial
E-commerce
Ad-based
Marketplace
Big Data
User Generated Content
Retail
Media
Community
Membership site
Platform
Open Source
Enterprise
Non-profit
Social
3 business model archetypes
DIRECT MULTI-SIDED MARKETPLACE
$
DIRECT
Unaware visitors Happy customers
Direct models
Unaware visitors Happy customers
Direct models
TRACTION IN A DIRECT MODEL:
The rate at which you create customers.
What customer behaviors lead to traction?
Unaware visitors Happy customers
Direct models
Time spent in store correlated with money spent
MULTI-SIDED
Unaware visitors Happy users
Multi-sided models
Unaware visitors Happy users
Multi-sided models
Derivative asset
Unaware visitors Happy users
Multi-sided models
Happy customers
Derivative asset
Unaware visitors Happy users
Multi-sided models
Happy customers
Derivative asset
Advertisers
TRACTION IN A MULTISIDED MODEL:
Derivative asset to revenue exchange rate
MARKETPLACE
$
Marketplaces
Happy buyer
Happy seller
Marketplaces
Happy buyer
Happy seller
$
Marketplaces
Transaction
Unaware buyers Happy buyer
Unaware sellers Happy seller
$Transaction
Marketplaces
TRACTION IN A MARKETPLACE MODEL:
The rate of transactions.
Waste is any activity that consumes resources but adds no value.
Taiichi Ohno’s chalk circles.
Waste is everywhere.
RIGHT ACTION, RIGHT TIME
There are only a few key actions that matter. Focus on those and ignore the rest.
Theory of Constraints:
Every business is a system of interconnected processes with a single constraint.
Addressing the weakest link is the only thing the matters.
Addressing the weakest link is the only thing the matters.
premature optimization premature optimization
Be wary of local optimization.
You can’t predict the next bottleneck.
Before you can prioritize waste, you have to be able to see the factory floor.
Unaware visitors Happy customers
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Unaware visitor
Passionate Happy Customer
Pirate Metrics
More Visual
Systems Thinking
Indicates interest through teaser page
Ongoing engagement with sessions and tool
Interview and then start trial
Organic Channels Blog, twitter, workshops
Ask for referrals to like-minded companies
Monthly SaaS paymentafter first 30 days
Exposes the constraint which prioritizes focus
Strategy:
Qualify leads
Focus on a single key metric.NEEDS REVISION
Focus on a single key metric, but always monitor the entire customer factory.
REVISED
One final takeaway…
You can’t brute force a solution…
Starting with a solution is like building a key without a door.
Love the problem, not your solution. 3rd MINDSHIFT
ASH MAURYA @ashmaurya
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