Lean Startup comes with its own new vocabulary, and quite often, we either misunderstand those new terms, or try to find a parallel from the old world. This presentation is more like a Lean Startup 101

1. Demys&fying
Lean
Startups
Tathagat
Varma

2. Discussion
Points
Challenges
with
tradi&onal
startups
and
NPD
The
Lean
Startup
Model,
Principles
and
Methods
Does
it
work
for
New
Product
Development?
Case
Studies

3. Once
upon
a
&me…

4. Welcome
to
the
Bold
New
World!
“AJer
about
a
week
of
coding,
Zuckerberg
launched
thefacebook.com
last
Wednesday
aJernoon.
The
website
combines
elements
of
a
standard
House
face
book
with
extensive
profile
features
that
allow
students
to
search
for
others
in
their
courses,
social
organiza&ons
and
Houses.
“Everyone’s
been
talking
a
lot
about
a
universal
face
book
within
Harvard,”
Zuckerberg
said.
“I
think
it’s
kind
of
silly
that
it
would
take
the
University
a
couple
of
years
to
get
around
to
it.
I
can
do
it
be-er
than
they
can,
and
I
can
do
it
in
a
week.”
As
of
yesterday
aJernoon,
Zuckerberg
said
over
650
students
had
registered
use
thefacebook.com.
He
said
that
he
an&cipated
that
900
students
would
have
joined
the
site
by
this
morning.
“I’m
prey
happy
with
the
amount
of
people
that
have
been
to
it
so
far,”
he
said.
“The
nature
of
the
site
is
that
each
user’s
experience
improves
if
they
can
get
their
friends
to
join
it.”
hp://www.thecrimson.com/ar&cle/2004/2/9/hundreds-­‐register-­‐for-­‐new-­‐facebook-­‐website/#

5. Ok,
I
have
an
idea…a
BIG
idea!!!
How
should
I
proceed?

6. I
could
do…
OR
Dot-­‐com-­‐era
style
“Stealth
Mode”
Startup
Cowboy
style
“Just
Do
It”
Startup

7. hp://datacatalyst.marsdd.com/accelerators-­‐worth-­‐the-­‐hype/

10. hp://www.emilianosoldipmp.info/wp-­‐content/uploads/2012/08/Stacey.png
That’s
the
problem
we
need
to
solve!
And
these
are
the
methods
we
are
using!!!

11. Lean
Startup
Model
• The
Lean
Startup
provides
a
scien=fic
approach
to
crea&ng
and
managing
startups
and
get
a
desired
product
to
customers'
hands
faster.
The
Lean
Startup
method
teaches
how
to
drive
a
startup-­‐how
to
steer,
when
to
turn,
and
when
to
persevere-­‐and
grow
a
business
with
maximum
accelera&on.
It
is
a
principled
approach
to
new
product
development.
• Lean
Startup
favors
– experimenta=on
over
elaborate
planning,
– customer
feedback
over
intui&on,
and
– itera=ve
design
over
tradi&onal
‘big
design
up
front’
development

12. What’s
a
Startup?
“A
startup
is
a
human
ins.tu.on
designed
to
create
a
new
product
or
service
under
condi.ons
of
extreme
uncertainty”
The
products
a
startup
builds
are
really
experiments;
the
learning
about
how
to
build
a
sustainable
business
is
the
outcome
of
those
experiments.

13. Lean
Startup
Principles
Entrepreneurs
are
everywhere
Entrepreneurship
is
management
Validated
Learning
Build-­‐Measure-­‐Learn
Innova&on
Accoun&ng

15. Customer
Development

17. GET OUT OF THE BUILDING…

18. Minimize
TOTAL
=me
through
the
loop
Instead
of
making
complex
plans
that
are
based
on
a
lot
of
assump&ons,
you
can
make
constant
adjustments
with
a
steering
wheel
call
the
Build-­‐
Measure-­‐Learn
feedback
loops.
Through
this
process
of
steering,
we
can
learn
when
and
if
it’s
&me
to
make
a
sharp
turn
called
a
pivot
or
whether
we
should
persevere
along
the
current
path
The
MVP
is
that
version
of
a
new
product
which
allows
a
team
to
collect
the
maximum
amount
of
validated
learning
about
customers
with
the
least
effort
or
development
&me.
The
MVP
lacks
many
features
that
may
prove
essen&al
later
on.
MVP
is
not
a
minimal
product!

21. A/B
Tes&ng
hp://wp.streetwise.co/wp-­‐content/uploads/2012/07/A-­‐B-­‐tes&ng.jpg

22. Validated
Learning
• Validated
learning
about
customers
is
the
measure
of
progress
in
a
Lean
Startup
–
not
lines
of
working
code
or
achieving
product
development
milestones.
• Process
in
which
one
learns
by
trying
out
an
ini&al
idea
and
then
measuring
it
to
validate
the
effect.
Each
test
of
an
idea
is
single
itera&on
in
a
larger
process
of
many
itera&ons
whereby
something
is
learnt
and
the
lessons
applied
to
the
succeeding
tests.[1]
• Typical
steps
in
validated
learning:
– Specify
a
goal
– Specify
a
metric
that
represents
the
goal
– Act
to
achieve
the
goal
– Analyze
the
metric
-­‐
did
you
get
closer
to
the
goal?
– Improve
and
try
again

23. Innova&on
Accoun&ng
• Enables
startups
to
prove
objec&vely
that
they
are
learning
how
to
grow
a
sustainable
business
– Use
an
MVP
to
establish
real
data
on
where
the
company
is
right
now
– Startups
must
aempt
to
tune
the
engine
from
the
baseline
toward
the
ideal.
This
could
take
many
aempts.
– Pivot
or
persevere
• Ac&onable
vs.
Vanity
Metrics
– For
a
report
to
be
considered
ac&onable,
it
must
demonstrate
clear
cause
and
effect.
Otherwise,
it
is
a
vanity
metric.
– Ac&onable
metrics
can
lead
to
informed
business
decisions
and
subsequent
ac&on.[24][1]
These
are
in
contrast
to
'vanity
metrics'
-­‐
measurements
that
give
“the
rosiest
picture
possible”
but
do
not
accurately
reflect
the
key
drivers
of
a
business.

24. Pivot

25. Kanban

26. Con&nuous
Deployment

28. Products
and
Services
that
have
benefited
from
Lean
Startup

29. Conclusions
Complex
solu&ons
need
feedback-­‐based
adap&ve
approach
Managing
a
‘startup’
successfully
requires
early
valida=ons
on
key
hypotheses
Lean
Startup
model
offers
an
integrated
approach
to
solve
complex
problems
in
an
uncertain
environment

30. References
• hp://theleanstartup.com/#casestudies
• hp://agbeat.com/entrepreneur/why-­‐11-­‐out-­‐of-­‐every-­‐12-­‐startups-­‐fails/
• hp://techcrunch.com/2011/09/13/instagram-­‐and-­‐intuit-­‐founders-­‐discuss-­‐lean-­‐
startups-­‐pivots-­‐and-­‐what-­‐makes-­‐a-­‐product-­‐successful/
• hp://www.forbes.com/sites/hbsworkingknowledge/2013/02/25/lean-­‐startup-­‐
strategy-­‐not-­‐just-­‐for-­‐startups/
• hp://steveblank.com/
• hp://www.startuplessonslearned.com/2009/04/validated-­‐learning-­‐about-­‐
customers.html
• hp://www.startuplessonslearned.com/2008/09/lean-­‐startup.html
• hp://www.startuplessonslearned.com/2008/11/what-­‐is-­‐customer-­‐
development.html
• hps://en.wikipedia.org/wiki/Validated_learning
• hp://www.ashmaurya.com/2010/04/3-­‐rules-­‐for-­‐building-­‐features-­‐in-­‐a-­‐lean-­‐
startup/
• hp://www.ashmaurya.com/2011/06/your-­‐product-­‐is-­‐not-­‐the-­‐product/
• hp://www.ashmaurya.com/2009/11/achievingproductmarkeuit/