Things that you want to know about

LEAN STARTUP Ratko Mutavdžić, PROJEKTURA

*learning how to build a startup and avoid other people’s mistakes

INTRO just a few words about me

so, if we all nod our heads... we can continue...

• Ratko Mutavdzic is founder of PROJEKTURA, consulting company that work with new and emerging technologies and introduce them to the corporate and enterprise environments. Prior to this one, he spent 15 years Microsoft, starting in a consulting practice and then leading several different sales and technology teams.

• He is the author of number of published papers on different aspects of the technology, successful blogs on new technologies and project management, and active contributor in a number of social networks exploring the use and advance of new ways to connect and share innovation and invention.

• He frequently speaks on conferences, meetings, workshops, coffee shops and generally at every place where people like to explore, challenge, investigate, think and innovate.

• Keywords: change, project, program, portfolio, innovation, startup

note: more contact info on a last slide

starting up: so you have a team...

but if you think you already know all the anwsers...

Message from Steve Blank: „(almost) EVERYTHING YOU KNEW ABOUT STARTING A COMPANY IS WRONG. „

FEW ASSUMPTIONS AT THE BEGINNING... you know what I am talking about

learnings from Lean Startup are universal ... and I am still hoping that you are not here to apply Corporation to Startup

• You want to learn about Enterpreneurship • You want to learn about Lean Startup • You want to learn how to apply Lean Startup to Corporation • You want to learn how to apply Corporation to Lean Startup • You want to learn how to apply Lean Startup to Startup

www.agilemanifesto.org

FIVE WHY? what is different? what is the same?

learnings from Lean Startup are universal ... and we are applying unknown solution to unkonwn problem

• "Lean Startup" is an approach for launching businesses and products, that relies on validated learning, scientific experimentation, and iterative product releases to shorten product development cycles, measure progress, and gain valuable customer feedback. In this way, companies, especially startups, can design their products or services to meet the demands of their customer base without requiring large amounts of initial funding or expensive product launches

www.agilemanifesto.org

PROBLEM KNOWN, SOLUTION KNOWN ... product development at Microsoft

unit of progress: advance to next stage waterfall style

(c) steve blank

PROBLEM KNOWN, SOLUTION UNKNOWN ... product development at typical venture startup

assumes customers and markets are undestood agile style

(c) steve blank

PROBLEM UNKNOWN, SOLUTION UNKNOWN ... product development at lean startup

assumes customers and markets are unknown rapid hypothesis testing about market, pricing, customer, low cost, low burn, tight focus

(c) steve blank

Customer Discovery

Customer Validation

Customer Creation

Scale Company

data, feedback, insights

hypothesis, experiments, insights

customer development engineering

roots of the lean thinking are ... at toyota

LEAN STARTUP principles now, thare are some ground rules

„Startup success can be engineered by following the process, which means it can be learned, which means it can be taught”

1. enterpreneurs are everywhere 2. enterpreneurship is management 3. validated learning 4. innovation accounting 5. build-measure-learn

http://theleanstartup.com/principles

LEAN STARTUP strategy minimum viable product

looks like you are driving a car... but in this case you need to crash as fast as possible.... will explain later

• VISION • Start, Define, Learn, Experiment

• STEER • Leap, Test, Measure, Pivot

• ACCELERATE • Batch, Grow, Adapt, Innovate

http://theleanstartup.com/principles

everyone is enterpreneur

EVERYONE IS ENTERPRENEUR! „screw it, let’s do it!”

VISION remember: building a startup is an exercise in institution building

startup us a human institution designed to create a new product or service under conditions of extreme uncertanity

• Start measure your productivity differently: no scope, no time, no budget • Build – Measure – Learn: plans are driven by feedback loop mechanism • Validated Learning: demonstrating progress nad finding validation • Experiment Thesis:

• Value Hypotesis: test whether a product or service delivers value • Growth Hypotesis: test how new customers will discover a product or

service

from: „The Lean Startup: How Today’s Enterpreneuship...”, by Steven Blank

PRODUCT (optimize)

STRATEGY (pivot)

VISION (dont change)

leap of faith

Hypotesis Questions we need to make sure that we are asking the right questions

an experiment is a product! #

1. Do consumers recognize that they have the problem you are trying to solve? 2. If there was a solution, would they buy it? 3. Would they buy it from us? 4. Can we build a solution for that problem? • Remember, instead of „Can this product be built”, think:

• Should this product be built? • Can we build a sustainable business around this set of products and

services?

www.agilemanifesto.org

genchi gembutsu, or... leave your desk and talk to the people

crash and fail as fast as you can, and learn something

MVP minimum viable product

get out, and get the feedback! validate the feedback! #

• we are uncovering better ways of developing software by doing it and helping others do it.

• individuals and interations over processes and tools • working software over comprehensive documentation • customer collaboration over contract negotiation • responding to change over following a plan

More info on MVP... Type minimum viable product

MVP?

innovation accounting every little step counts, if it is a progress...

INNOVATION ACCOUNTING are we learning something yet? do we understand what is happening?

sorry guys, we need to have some numbers here... beware: be very carefull what are you tracking and improving

• three steps: 1. use an MVP to establish real data where you are, mesure how the

customers behave RIGHT NOW 2. tune the engine, move from baseline, experiment on how we can

move metrics forward 3. pivot or preserve

www.leanstartup.com

...innovation accounting leads to ... pivot

Types of Pivot! some basic ones that happen early in a product thinking

ALL TYPES OF PIVOT! #

• ZOOM IN PIVOT: a single feature becomes the whole product • ZOOM OUT PIVOT: the whole product becomes a single feature of a much

larger product • CUSTOMER SEGMENT PIVOT: you ave real customers, but not the ones in

the original vision • CUSTOMER NEED PIVOT: your product doesn’t really solve the problem.

Find a new need from customers.

www.leanstartup.com

Types of Pivot! little bit advanced ones, that are coming from a structural changes

ALL TYPES OF PIVOT! #

• PLATFORM PIVOT: change from an application to a platform or vice versa. • BUSINESS ARCHITECTURE PIVOT: change from high margin, low volume to

a low margin, high volume or vice versa. • VALUE CAPTURE PIVOT: change the revenue model. • ENGINE OF GROWTH PIVOT: viral, sticky, paid growth models – change • CHANNEL PIVOT: find a new sales channel, offer unique pricing, features • TECHNOLOGY PIVOT: find a new technology to solve the problems

www.leanstartup.com

pivots require courage ...

how fast can you build – measure – learn ?

ONE NEED TO OPERATE DIFFERENTLY how do we do a lean startup

is there „operations” thing at startup? some things to note

• look at the batch size • pull, don’t push • overall look at the agile

practices and lean management

www.leanstartup.com

build faster continous deployment small batches minimum viable prducts refactoring

measure faster split testing, actionable matrics

learn faster customer development five whys

growth and innovate @windays14

WHAT CORP CAN LEARN from understanding a lean startup

get out, and get the feedback! validate the feedback! #

• roots of Lean Startup are defined at Toyota (Lean Manufacturing), but... • There is INTRAPRENEURS at every established organization • Valid Learnings:

• Build – Measure – Learn, Validated Learning, Hypothesis Aproach • Invalid Learnings:

• no scope, no time, no budget, Validated Learning

www.agilemanifesto.org

WHAT CORP CAN LEARN from understanding a lean startup

get out, and get the feedback! validate the feedback! winners are those who can move faster that their competitiors

• innovation is somewhere in your organization • BUT R&D IS NOT YOUR ONLY SOURCE OF INNOVATION! • agility requires a continuous cycle of interactions with the environment • BUT YOU CAN’T DO IT FROM A DESK! • iterating faster than competitors yields substantial advantage • BUT YOU NEED TO CHANGE A BUILD MODEL!

www.agilemanifesto.org

FEW BOOKS TO READ... they are small, but will change the view how you look at the startup business

not necessary in that order, but read them all ... we are confusing CXO’s even if we can do a great job in a first place

www.agilemanifesto.org

more info ... if you feel like you want to know more or just for fun

ratko.mutavdzic@projektura.org dont bite, dont yell at you at all, so please, add me to your ... think network. tnx.

• WWW www.projektura.org • FBOOK www.facebook.com/projektura • TWEET www.twitter.com/projektura • EMAIL info@projektura.org

• but if it is really, really, really urgent and you really need to connect to people at

projektura ... • SKYPE projektura