Professional Documents
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Lean Startup For Final Post
Lean Startup For Final Post
Housekeeping
To enlarge slides, use the magnifying glass icon just beneath the slides and to the right on your display console To adjust the sound, use the volume control on the console or on your computer To T ask k a question, ti type t it i into t th the b box at t th the b bottom tt of the console and hit submit
Myth #1
Myth Lean means cheap. Lean startups try to spend as little money as possible possible.
Truth The Lean Startup method is not about cost, it is about speed. speed
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Myth #2
Myth
The Lean Startup is only for Web 2 2.0/internet/consumer 0/internet/consumer software companies companies.
Truth
The Lean Th L Startup St t applies li to t all ll companies i that th t face uncertainty about what customers will want. want
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Myth #3
Myth
Lean Startups are small bootstrapped startups.
T th Truth
Lean Startups are ambitious and are able to deploy large amounts of capital.
Myth #4
Myth
Lean Startups replace vision with data or customer feedback feedback.
Truth
Lean Startups L St t are driven di by b a compelling lli vision, i i and are rigorous about testing each element of this vision. vision
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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 uncertainty.
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Entrepreneurship is Management
Our g goal is to create an institution, not just j a product Traditional management practices fail
general g management g as taught g to MBAs
Need practices and principles geared to the startup context of extreme uncertainty Not just for two two guys in a garage garage
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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 y started building g BASIC interpreters, p , 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 weve learned
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Speed Wins
If we can reduce the time between major iterations We can increase our odds of success
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Startup 1
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A Good Plan?
Start a company with a compelling long-term vision Raise plenty of capital Hire the absolute best and the brightest Hire an experienced management team with tons of startup t t experience i Focus on quality Build a world-class technology platform Build buzz in the press and blogosphere
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In Memoriam
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Achieving Failure
Product launch failed
- $40MM and five years of pain
but the plan was executed well C Crippled i l d by b shadow h d beliefs b li f that th t destroyed d t d the th effort of all those smart people
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Shadow Belief #1
We know what customers want want.
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Shadow Belief #2
We can accurately predict the future future.
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Shadow Belief #3
Advancing the plan is progress. progress
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A Good Plan?
Start a company p y with a compelling p g long-term g vision Raise plenty of capital Hire Hi the th absolute b l t best b t and d the th brightest b i ht t Hire an experienced management team with tons of startup t t experience i Focus on quality Build a world-class technology platform Build buzz in the press and blogosphere
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Startup 2
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IMVU
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IMVU
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New Plan
Shipped in six months a horribly buggy beta product Charged from day one Shipped multiple times a day (b 2008, (by 2008 on average 50 times ti a day) d ) No PR, no launch Results 2009: profitable, revenue > $20MM
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Making Progress
In a lean transformation, , question q #1 is which activities are value-creating and which are waste? In traditional business, , value is created by y delivering g products or services to customers In a startup, p, the product p and customer are unknowns We need a new definition of value for startups
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Requirements
Specifications
Design
Implementation
Verification
Maintenance
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Build Faster
Unit Tests Usability Tests Continuous Integration Incremental Deployment Free & Open-Source Components Cloud Computing Cluster Immune System Just-in-time Scalability
Measure Faster
Split Tests Clear Product Owner Continuous Deployment Usability Tests Real-time Monitoring Customer Liaison
Measure Faster
Funnel Analysis Cohort Analysis Net Promoter Score Sea ch Engine Marketing Search Ma keting Real-Time Alerting Predictive Monitoring
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Thanks!
Startup Lessons Learned Blog
http://StartupLessonsLearned.com In print: http://bit.ly/SLLbookbeta
Lean Startup Intensive at Web 2 2.0 0 Expo May 3, 2010 in San Francisco
http://web2expo.com/webexsf2010/public/schedule/detail/13260
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Q&A