6 Lean Startup

Lean Startup
Minder Chen, Ph.D.

Professor of MIS
Martin V. Smith School of Business & Economics
CSU Channel Islands
minder.chen@csuci.edu
© Minder Chen, 2016-2017 Lean Startup - 1

Lean Startup
Start Your Business Lean and Quick:
The Lean Startup Approach
Introduce an innovative method to build a new business
in the context of lean startup approach.
The application and cases of deploying the Build-
Measure-Learn cycle to measure user feedbacks and to
validate assumptions in a startup’s business model will
be discussion.
“The Lean Startup method teaches you
how to drive a startup-how to steer, when
to turn, and when to persevere-and grow a
business with maximum acceleration.”
http://theleanstartup.com/principles
The Lean Startup
A startup is a temporary
organization designed to search
for a repeatable and scalable
business model (under extreme
uncertainty).
- Steve Blank, The Startup Owner’s Manual

Definition of Innovation
An innovation is the application of creative
ideas, knowledge, or new technology,
to a product/service, process, or business
model that is
accepted by markets and society.
– Adapted from OECD 2005 and Wikipedia.
Innovation = Imagination +
Creativity +
Implementation (Execution) +
Value
The Lean Startup Principles
• Entrepreneurs are everywhere (even in
well-established firms).
• Entrepreneurship is management (but
different from managing traditional firms).
• Validated learning (about customers).
• **Build-Measure-Learn feedback loop.
• Innovation accounting (using actionable
metrics – mostly about customer behaviors).
– Eric Ries, The Lean Startup: How Today's
Entrepreneurs Use Continuous Innovation to Create
Radically Successful Businesses, 2011.
** http://theleanstartup.com/principles
Resources
• Why the Lean Startup Changes Everything
https://hbr.org/2013/05/why-the-lean-start-up-changes-
everything
• Eric Ries, The Lean Startup: How Today's Entrepreneurs Use
Continuous Innovation to Create Radically Successful
Businesses, September 13, 2011.
• **Lean Startup-Visual Summary (link)
• The Lean Approach (The Kauffman Founders School)
– http://www.entrepreneurship.org/Founders-School/The-Lean-Approach
• *Eric Ries: "The Lean Startup" | Talks at Google
(video) ~ 1 hour
• **Steve Blank How to Build a Startup: The Lean
LaunchPad free course on Udacity (link) or (YouTube
video list)
Case Studies
• Lean Startup Cases
– **IMVU Case Study (link)
– http://theleanstartup.com/casestudies
• Rent the Runway Case
– ***The Supply & Demand of Rent the Runway | Jennifer
Hyman https://www.youtube.com/watch?v=JYFWpJvq6DU (about
testing business ideas)
– Introduction Chapter of the Innovation Method
http://innovatorsdna.com/wp-
content/uploads/2014/09/Innovators-Method-
Sample.pdf

Product Development vs. Customer Development

Customer Development Process
http://www.spikelab.org/img/blog/4steps-f6b16b56.png
Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM

The Lean Start-Up
Read this
Steve Blank, "Why The Lean Start-up Change Everything," HBR, May 2013. (link)
Lean Startup Cycle
* *
Legend:
*Process
* Outcome
http://www.agileacademy.co/wp-content/uploads/2014/09/LeanStartupCycle.png
http://entrepreneurship.saddleback.edu/Resources/Lean%20Startup/Lean%20Startup-Visual%20Summary.pdf

**Lean Startup: 3 Components
The Lean Startup method consists of three parts:
• The Business Model Canvas – to frame
hypotheses.
• Customer Development – to test those
hypotheses in front of customers.
• Agile Engineering – to build Minimum Viable
Products to maximize learning.

Rent the Runway Case
Todd Heisler/The New York Times
Nathan Furr and Jeff Dyer, The Innovator’s Method: Beginning the Lean Startup into Your
Organization, Harvard Business Review Press, 2014. (read this introduction (Rent the
Runway case is an great example illustrating Lean Startup principles) and Chapter 1 at
http://innovatorsdna.com/wp-content/uploads/2014/09/Innovators-Method-Sample.pdf

Business Plan
Business Plan would identify the customer
need, describe the product or service,
estimate the size of the market, and estimate
the revenues and profits based on projections
of pricing, costs, and unit volume growth.
Show
**Rent the Runway: An inside look at the tech startup's success
https://www.youtube.com/watch?v=cyvfsi3MX-M
Fill out the Business Model Canvas based on the RTR case presented
in the video

Rent the Runway Case
• Rent the Runway Case
– ***The Supply & Demand of Rent the Runway | Jennifer
Hyman https://www.youtube.com/watch?v=JYFWpJvq6DU (abo
ut testing business ideas)
– Introduction Chapter of the Innovation Method
http://innovatorsdna.com/wp-
content/uploads/2014/09/Innovators-Method-
Sample.pdf

Business Model Canvas
https://fivewhys.files.wordpress.com/2012/02/canvas1.jpg
© Minder Chen, 2016-2017
(Video) Lean Startup - 16
Source: “Why the Lean Startup Changes Everything“ HBR 2013
Food on the Table
• The Concierge Minimum Viable Product (MVP)
• http://mealplanning.food.com/
• Food on the Table will ask you for your preferences—the types
of foods you like and dishes you enjoy, and the grocery stores
you shop at. Then it will recommend dishes for you for the
week, helping you get out of food ruts or scrambling to figure
out what to make for dinner.
• The app helps you save money by listing the items on sale each
week at your chosen grocery stores and recipes based on those
sale items. Add the recipes to your meal plan and the foods to
your grocery list. The mobile app syncs up with your account on
the website.
http://www.macworld.com/article/2109727/food-on-the-table-makes-meal-planning-and-grocery-shopping-a-piece-of-cake.html

Food On The Table’s Lean Startup
Food on the Table (FotT) began life with a single
customer. Instead of supporting thousands of grocery
stores around the country as it does today, FotT
supported just one. How did the company choose which
store to support? The founders didn’t—until they had
their first customer. Similarly, they began life with no
recipes whatsoever—until their first customer was ready
to begin her meal planning. In fact, the company served
its first customer without building any software, without
signing any business development partnerships, and
without hiring any chefs.
This case exemplifies Paul Graham’s argument
that at the beginning, a startup company should
“Do Things That Don't Scale”
http://paulgraham.com/ds.html Lean Startup - 20
Do Things That Don't Scale
• Do Things That Don't Scale
http://paulgraham.com/ds.html
• Startup Class Lecture 8
http://startupclass.samaltman.com/ or
https://www.youtube.com/watch?v=oQOC-qy-GDY

Paul Graham artcle
(link)

MVP
In product development, the Minimum Viable
Product (MVP) is a strategy used for fast and
quantitative market testing of a product or product
features. It is an iterative process of idea
generation, prototyping, presentation, data
collection, analysis and learning.

An MVP Example
Why is Dropbox more popular than other
programs with similar functionality?
•Well, let’s take a step back and think about the sync
problem and what the ideal solution for it would do:
– There would be a folder.
– You’d put your stuff in it.
– It would sync.
Source:
http://michaelrwolfe.com/2013/10/19/why-
is-dropbox-more-popular-than-other-
programs-with-similar-functionality/
MVP and Product/Market Fit
• MVP: A product that includes just enough features to
allow useful feedback from early adopters
• Customers will use the MVP and pay for it.
• Minimum Viable Product, or MVP, a bare-bones
offering that allows the team to collect customer
feedback and to validate concepts and assumptions
that underlie the business idea.
• Product/Market Fit—the idea that they were crafting a
solution the market wants, one that customers are
willing to pay for, and one that’ll scale into a large,
profitable business.

Lean Startup -
https://steveblank.com/2014/07/30/driving-corporate-innovation-design-thinking-customer-development/
© Minder Chen, 2016-2017 26
Learning Cycle
http://startupclass.samaltman.com/ Lecture #1



Hypotheses Testing and Insight
Identify Business Model
Hypotheses
Gain
based on
Collect Data/Facts Facts
By conducting experiments

Lean Startup- Assumptions and Experiments Mapping
• Map the key assumptions & attached them to the various parts of your
business model.
• Develop quick and inexpensive experiments to validate or invalidate the
assumptions quickly. Pivot if assumptions are invalidated.
• This is the central idea of the Lean Startup Movement.
Lean Startup - 31
http://www.alexandercowan.com/business-model-canvas-templates/
Business Model Design Meets Customer Development
https://steveblank.com/2010/11/11/get-out-of-the-building-and-win-50000/
http://blog.startupinstitute.com/2015-3-3-what-does-pivot-mean/

What Is Pivot?
• Pivot: A change to business model component
based on customer feedbacks. A pivot is not a
failure.
• Pivot is a structured course correction designed to

test a new fundamental hypothesis about the
product, strategy, engine of growth, etc.
– Eric Ries, The Lean Startup, 2013.
• Pivots are vision driven.
Pivot a Lean Startup
• The popular view of a real entrepreneur is
someone with a big vision, and a stubborn
determination to charge straight ahead
through any obstacle and make it happen.
• The vision part is fine, but successful
entrepreneurs have found that the extreme
uncertainty of a new product or service
usually requires many course corrections,
or “pivots” to find a successful formula.
• Use continuous innovation to create
radically successful
Source: Top 10 Ways Entrepreneurs Pivot a Lean Startup (link)
Top Ten Types of Pivots
1. Zoom-in pivot
2. Zoom-out pivot
3. Customer segment pivot
4. Customer need pivot
5. Platform pivot
6. Business architecture pivot
7. Value capture pivot
8. Engine of growth pivot
9. Channel pivot
10.Technology pivot.
Source: Top 10 Ways Entrepreneurs Pivot a Lean Startup (link)
Pivot
• This startup search process is the business model /
customer development / agile development solution
stack.
• This solution stack proposes that entrepreneurs
should first map their assumptions in their business
model and then test whether these hypotheses are
accurate, outside in the field (customer development)
and then use an iterative and incremental
development methodology (agile development) to build
the product.
• When founders discover their assumptions are wrong,
as they inevitably will, the result isn’t a crisis, it’s a
learning event called a pivot — and an opportunity to
revise/update the business model.
https://steveblank.com/2010/11/11/get-out-of-the-building-and-win-50000/
Learning and Assumptions Testing

Produce Evidence with a Call to Action (CTA)
Use experiments to test if customers are
interested, what preferences they have, and if
they are willing to pay for what you have to offer.
Get them to perform a call to action (CTA) as
much as possible in order to engage them and
produce evidence of what works and what
doesn’t.

Use Experiments to Test
• Interest and Relevance
• Priorities and Preferences
• Willingness to Pay

Test Customer Interest with Google AdWords
We use Google Ad Words to illustrate this technique because
it’s particularly well suited for testing based on its use of
search terms for advertising (other services such as LinkedIn
and Facebook also work well).
• Select search terms. Select search terms that best represent
what you want to test (e.g., the existence of a customer job,
pain, or gain or the interest for a value proposition).
• Design your ad/test. Design your test ad with a headline, link
to a landing page, and blurb. Make sure it represents what you
want to test.
• Launch your campaign. Define a budget for your ad/ testing
campaign and launch it. Pay only for clicks on your ad, which
represent interest.
• Measure clicks. Learn how many people click on your ad. No
clicks may indicate a lack of interest.

Tracking User’s Actions
• “Fabricate” a unique link. Make
a unique and trackable link to
more detailed information about
your ideas (e.g., a download,
landing page) with a service
such as goo.gl.
• Track if the customer used the
link or not. If the link wasn’t
used, it may indicate lack of
interest or more important jobs,
pains, and gains than those that
your idea addresses.

Funnel

Split Testing
• Split testing, also known as A/B testing, is a technique to
compare the performance of two or more options.
• We can apply the technique to compare the performance of
alternative value propositions with customers or to learn
more about jobs, pains, and gains.

What to Test?
Here are some elements that you can easily test with
A/B testing:
• Alternative features
• Pricing
• Discounts
• Copy text
• Packaging Website variations . . .
Call to Action: How many of the test subjects perform
the CTA?
• Purchase /Rent
• E-mail sign-up
• Click on button
• Survey
• Completion of any other task Lean Startup - 46
Lean Startup

The Customer Development Process
More startups fail from a lack of customers than
from a failure of product development
1. Try many times before you get it right.

2. It is OK to fail so plan to learn from it.
3. Only move to the next stage when you learn
enough and reach the “escape velocity”
http://www.ctinnovations.com/images/resources/Startup%20Owners%20Manual%20-%20BlankDorf.pdf

Product Market Fit
• Product/market fit (PMF) means being in a good
market with a product that can satisfy that market.
• You can always feel when product/market fit isn't
happening. The customers aren't quite getting value
out of the product, word of mouth isn't spreading,
usage isn't growing that fast, press reviews are kind of
"blah", the sales cycle takes too long, and lots of deals
never close.
• I believe that the life of any startup can be divided
into two parts: before product/market fit (call this
"BPMF") and after product/market fit("APMF").
– Marc Andreessen ***(link)
http://andrewchen.co/when-has-a-consumer-startup-hit-productmarket-fit/

Customer Development Process & 3 Stages of Fit
Problem/Solution Product/Market Business Model

Fit Fit Fit
(Scaling)

OODA
https://en.wikipedia.org/wiki/OODA_loop
** ©
https://foundrmag.com/3-proven-startup-strategies-for-success/
Minder Chen, 2016-2017 Lean Startup - 51
• Observation –
collecting data with
your senses
• Orientation –
analyzing and
synthesizing the
information to form a
perspective
• Decision – choosing
a course of action
based on that
perspective, and
• Action – taking
action on that
decision.
http://www.idea-
sandbox.com/blog/deci
sion-making-like-a-
fighter-pilot/

Nail It to Scale It
PSF PMF BMF
http://www.nailthenscale.com/Nail-It-Then-Scale-It-Book-Graphics-PDF.pdf
Lean Startup - 53
http://www.nailthenscale.com/wp-content/uploads/2015/06/Big_Idea_Canvas_v7.4.pdf
Minimum Feature vs. The Minimum Feature Set is "...the
Whole Product Solution smallest or least complicated problem
the customer will pay us to solve."
Apple II & VisiCal MVP is "The minimum viable product
is that version of a new product which
allows a team to collect the maximum
Apple I amount of validated learning about
customers with the least effort."
Think about the ecosystem!!!
© Minder Chen, 2016-2017http://jsahni.blogspot.com/2014_02_01_archive.html Lean Startup - 54

Lean Canvas
(Link)
https://leanstack.com/why-lean-canvas/
Customer Development
The process to The process to
search for the right scale the sales &
Search business model! Execution operations.

Lean Startup Cycle
Ideas/Business Think with

Pivot/ your hands
Model
Persevere
• Technologies
• Social trends
Learn • Pains/Gains Build
• Insights • Prototyping
Minimize the total • Minimum viable
• Hypotheses
• 5 Whys time & resource products (MVP)
through the
Learning Cycle
Data Product/service
• Innovation Accounting • Address Job
 Net Promoter Score to be done
 AARRR
• Fit (P-S, P-M)
Measure
• Split tests Find/get real
• Observations customers
• Click streams
Lean vs. Traditional

Lean vs. Traditional
https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
Revising & Pivoting via Speedy Learning Cycles
Business
Model Identify Design
Canvas Hypotheses Prototypes
version X & Tests
Revise, Redesign,
and Pivot current Conduct
Analyze Data &
BMC Test
Obtain
Insights
Business
Model Measure Results
Canvas & Build Metrics
version x+1
A Balancing Act of Art (Creativity) & Science
• In reality, executing a startup is a balance
between creativity/intuition/instinct and the scientific
method: hypothesize > a/b test > conclude >
repeat.
• Inspiration will help you find a problem to solve.
• Creativity will allow you to brainstorm potential
solutions to that problem.
• The scientific method will guide you toward which
of these solutions will actually solve your
customer’s problem.
https://blog.ycombinator.com/the-scientific-method-for-startups/

Build-Measure-Learn and MVP
• A core component of Lean Startup methodology is the
build-measure-learn feedback loop.
• The first step is figuring out the problem that needs
to be solved and then developing a minimum viable
product (MVP) to begin the process of learning as
quickly as possible.
• Once the MVP is established, a startup can work on
tuning the engine. This will involve measurement
and learning and must include actionable metrics that
can demonstrate cause and effect question. (link)
• utilize an investigative development method called the
"Five Whys"-asking simple questions to study and
solve problems along the way
Testing Your Business Model
http://businessmodelalchemist.com/blog/2011/01/methods-for-the-business-model-generation-how-bmgen-and-custdev-fit-perfectly.htm

Lean Innovation
https://steveblank.files.wordpress.com/2016/08/nga-lean-innovation.png

6 Lean Startup

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

6 Lean Startup

Загружено:

Авторское право:

Доступные форматы

Lean Startup

Minder Chen, Ph.D.

© Minder Chen, 2016-2017 Lean Startup - 1

© Minder Chen, 2016-2017 Lean Startup - 3

© Minder Chen, 2016-2017 Lean Startup - 7

© Minder Chen, 2016-2017 Lean Startup - 8

Steve Blank video at http://www.youtube.com/watch?v=6t0t-CXPpyM

© Minder Chen, 2016-2017 Lean Startup - 11

© Minder Chen, 2016-2017 Lean Startup - 12

Todd Heisler/The New York Times

© Minder Chen, 2016-2017 Lean Startup - 13

© Minder Chen, 2016-2017 Lean Startup - 14

© Minder Chen, 2016-2017 Lean Startup - 15

© Minder Chen, 2016-2017 Lean Startup - 18

© Minder Chen, 2016-2017 Lean Startup - 21

© Minder Chen, 2016-2017 Lean Startup - 22

© Minder Chen, 2016-2017 Lean Startup - 23

© Minder Chen, 2016-2017 Lean Startup - 25

© Minder Chen, 2016-2017 Lean Startup - 27

© Minder Chen, 2016-2017 Lean Startup - 28

© Minder Chen, 2016-2017 Lean Startup - 29

© Minder Chen, 2016-2017 Lean Startup - 30

© Minder Chen, 2016-2017 Lean Startup - 33

• Pivot is a structured course correction designed to

© Minder Chen, 2016-2017 Lean Startup - 39

© Minder Chen, 2016-2017 Lean Startup - 40

• Interest and Relevance

• Priorities and Preferences

© Minder Chen, 2016-2017 Lean Startup - 41

© Minder Chen, 2016-2017 Lean Startup - 42

© Minder Chen, 2016-2017 Lean Startup - 43

© Minder Chen, 2016-2017 Lean Startup - 44

© Minder Chen, 2016-2017 Lean Startup - 45

© Minder Chen, 2016-2017 Lean Startup - 47

1. Try many times before you get it right.

© Minder Chen, 2016-2017 Lean Startup - 48

© Minder Chen, 2016-2017 Lean Startup - 49

Problem/Solution Product/Market Business Model

© Minder Chen, 2016-2017 Lean Startup - 50

© Minder Chen, 2016-2017 Lean Startup - 52

Think about the ecosystem!!!

© Minder Chen, 2016-2017http://jsahni.blogspot.com/2014_02_01_archive.html Lean Startup - 54

© Minder Chen, 2016-2017 Lean Startup - 56

Ideas/Business Think with

© Minder Chen, 2016-2017 Lean Startup - 58

© Minder Chen, 2016-2017 Lean Startup - 61

© Minder Chen, 2016-2017 Lean Startup - 63

© Minder Chen, 2016-2017 Lean Startup - 64

Вам также может понравиться