eric ries, author/speaker/consultant, the lean startup
DESCRIPTION
Presentation by Eric Ries (Author/Speaker/Consultant, The Lean Startup) at the 'Lean Startup, Lean Investor' event on November 3, 2010 (Produced by 500 Startups & Nokia/Nokia Growth Partners)TRANSCRIPT
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Eric Ries (@ericries)http://StartupLessonsLearned.com
The Lean Startup#leanstartup
“Innovation through experimentation”
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Most Startups Fail
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Most Startups Fail
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Most Startups Fail
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What is a startup?
• A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.
• Nothing to do with size of company, sector of the economy, or industry
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What is a startup?
STARTUP =
EXPERIMENT
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Entrepreneurship is management
• Our goal is to create an institution, not just a product
• Traditional management practices fail- “general management” as taught to MBAs
• Need practices and principles geared to the startup context of extreme uncertainty
• Not just for “two guys in a garage”
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The Pivot
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I’
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The Pivot
• What do successful startups have in common?- They started out as digital cash for PDAs, but evolved
into online payments for eBay. - They started building BASIC interpreters, but
evolved into the world's largest operating systems monopoly.
- They were shocked to discover their online games company was actually a photo-sharing site.
• Pivot: change directions but stay grounded in what we’ve learned.
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Speed Wins
If we can reduce the time between pivots
We can increase our odds of success
Before we run out of money
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Making Progress
• In a lean transformation, question #1 is – which activities are value-creating and which are waste?
• In traditional business, value is created by delivering products or services to customers
• In a startup, the product and customer are unknowns. We need a new definition of value for startups: validated learning about customers
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Traditional Product DevelopmentUnit of Progress: Advance to Next Stage
Problem: known
Solution: known
Requirements
Specifications
Design
Implementation
Verification
Maintenance
Waterfall
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Agile Product DevelopmentUnit of Progress: A line of Working Code
Problem: known
Solution: unknown
“Product Owner” or in-house customer
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Lean StartupUnit of Progress: Validated Learning About Customers
($$$)
Problem: unknownSolution: unknown
Hypotheses, Experiments,Insights
Data, Feedback,Insights
Customer Development
Agile Development
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Minimize TOTAL time through the loop
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There’s much more…
Learn Faster
Split Tests
Customer Development
Five Whys
Customer Advisory Board
Falsifiable Hypotheses
Product Owner
Accountability
Customer Archetypes
Cross-functional Teams
Semi-autonomous Teams
Smoke Tests
Measure Faster
Split TestsContinuous Deployment
Usability Tests
Real-time Monitoring & Alerting
Customer Liaison
Build Faster
Unit Tests
Usability Tests
Continuous Integration
Incremental Deployment
Free & Open-Source
Cloud Computing
Cluster Immune System
Just-in-time Scalability
Refactoring
Developer Sandbox
Minimum Viable Product
Measure Faster
Funnel Analysis
Cohort Analysis
Net Promoter Score
Search Engine Marketing
Predictive Monitoring
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Myth #1
MythLean means cheap. Lean startups try to
spend as little money as possible.
Truth The Lean Startup method is not about
cost, it is about speed.
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Myth #2
MythThe Lean Startup is only for
Web 2.0/internet/consumer software companies.
Truth The Lean Startup applies to all companies
that face uncertainty about what customers will want.
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Myth #3
MythLean Startups are small bootstrapped
startups.
Truth Lean Startups are ambitious and are able
to deploy large amounts of capital.
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Myth #4
MythLean Startups replace vision with data
or customer feedback.
Truth Lean Startups are driven by a compelling
vision, and are rigorous about testing each element of this vision
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Thanks!• Startup Lessons Learned Blog
- http://StartupLessonsLearned.com• Getting in touch (#leanstartup)
- http://twitter.com/ericries- [email protected]
• Additional resources- Lean Startup Wiki http://leanstartup.pbworks.com- Lean Startup Circle http://leanstartupcircle.com