2010 02 19 the lean startup - webstock 2010
- 2. Entrepreneurship = AwesomeIt is the best time in the history of the world to be an entrepreneurCosts are falling in all industriesBarriers are being destroyedDisruption and chaos are everywhere
- 3. Why build a startup?Only entrepreneurship combines these three elementsChange the worldBuild an organization of lasting valueMake customers’ lives better
- 8. 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
- 9. Entrepreneurship is managementOur goal is to create an institution, not just a productTraditional management practices fail “general management” as taught to MBAsNeed practices and principles geared to the startup context of extreme uncertaintyNot just for “two guys in a garage”
- 10. The PivotWhat 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. http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html
- 11. Speed Winsif we can reduce the time between major iterationswe can increase our odds of success
- 16. 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 experience.Focus on quality. Build a world-class technology platform.Build buzz in the press and blogosphere.
- 21. 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 experience.Focus on quality. Build a world-class technology platform.Build buzz in the press and blogosphere.
- 25. New planShipped in six months – a horribly buggy beta productCharged from day oneShipped multiple times a day (by 2008, on average 50 times a day)No PR, no launchResults 2009: profitable, revenue > $20MM
- 26. Making ProgressIn 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 customersIn a startup, the product and customer are unknownsWe need a new definition of value for startups
- 27. Traditional Product DevelopmentUnit of Progress: Advance to Next StageWaterfallRequirementsSpecificationDesignProblem: knownSolution: knownImplementationVerificationMaintenance
- 29. Product Development at Lean StartupUnit of Progress: Validated Learning About Customers ($$$)Customer DevelopmentHypotheses,Experiments,InsightsProblem: unknownData,Feedback,InsightsSolution: unknown
- 31. How to build a Lean StartupLet’s talk about some specifics. Continuous deploymentFive why’s
- 40. Break large projects down into small batchesCluster Immune SystemWhat it looks like to ship one piece of code to production:Run tests locally (SimpleTest, Selenium)
- 51. Use historical trends to predict acceptable boundsWhen customers see a failure:Fix the problem for customers
- 52. Improve your defenses at each levelFive WhysIDEASCode FasterLearn FasterBUILDLEARNContinuousDeploymentFive Whys RootCause AnalysisCODEDATAMeasure FasterMEASURERapid Split Tests
- 53. Five Whys Root Cause AnalysisA technique for continuous improvement of company process.
- 56. Behind every supposed technical problem is usually a human problem. Fix the cause, not just the symptom.There’s much more…IDEASCode FasterLearn FasterBUILDLEARNUnit TestsUsability TestsContinuous IntegrationIncremental DeploymentFree & Open-Source ComponentsCloud ComputingCluster Immune SystemJust-in-time ScalabilityRefactoringDeveloper SandboxMinimum Viable ProductSplit TestsCustomer InterviewsCustomer DevelopmentFive Whys Root Cause AnalysisCustomer Advisory BoardFalsifiable HypothesesProduct Owner AccountabilityCustomer ArchetypesCross-functional TeamsSemi-autonomous TeamsSmoke TestsCODEDATAMeasure FasterMEASURESplit TestsClear Product OwnerContinuous DeploymentUsability TestsReal-time MonitoringCustomer LiaisonFunnel AnalysisCohort AnalysisNet Promoter ScoreSearch Engine MarketingReal-Time AlertingPredictive Monitoring
- 57. Get Started TodayYou are ready to do this, no matter who you arewhat job you havewhat stage of company you’re inGet started now, today.
- 64. Lean Startup Wellington Meetuphttp://www.meetup.com/Lean-Startup-Wellington/@davemosk @joshuavial @maximonos @andrewfantastic
- 66. Split-testing all the timeA/B testing is key to validating your hypothesesHas to be simple enough for everyone to use and understand itMake creating a split-test no more than one line of code:if( setup_experiment(...) == "control" ) { // do it the old way} else { // do it the new way}