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The Lean Startup#leanstartupTwiistup Edition,[object Object],Eric Ries (@ericries),[object Object],http://StartupLessonsLearned.com,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object],But it doesn’t have to be that way. ,[object Object],We can do better. ,[object Object],This talk is about how.,[object Object]
What is a startup?,[object Object],A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. ,[object Object],Nothing to do with size of company, sector of the economy, or industry,[object Object]
Entrepreneurship is management,[object Object],Our goal is to create an institution, not just a product,[object Object],Traditional management practices fail,[object Object], “general management” as taught to MBAs,[object Object],Need practices and principles geared to the startup context of extreme uncertainty,[object Object],Not just for “two guys in a garage”,[object Object]
The Pivot,[object Object],What do successful startups have in common?,[object Object],They started out as digital cash for PDAs, but evolved into online payments for eBay. ,[object Object],They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly. ,[object Object],They were shocked to discover their online games company was actually a photo-sharing site.,[object Object],Pivot: change directions but stay grounded in what we’ve learned. ,[object Object],http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html,[object Object]
Speed Wins,[object Object],if we can reduce the time between major iterations,[object Object],we can increase our odds of success,[object Object]
A Tale of Two Startups,[object Object]
Startup #1,[object Object]
Stealth Startup Circa 2001,[object Object]
All about the team,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Achieving Failure,[object Object],Company failed utterly, $40MM and five years of pain.,[object Object],Crippled by “shadow beliefs” that destroyed the effort of all those smart people.,[object Object]
Shadow Belief #1,[object Object],We know what customers want. ,[object Object]
Shadow Belief #2,[object Object],We can accurately predict the future. ,[object Object]
Shadow Belief #3,[object Object],Advancing the plan is progress. ,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Startup #2,[object Object]
IMVU,[object Object], ,[object Object]
IMVU,[object Object], ,[object Object]
New plan,[object Object],Shipped in six months – a horribly buggy beta product,[object Object],Charged from day one,[object Object],Shipped multiple times a day (by 2008, on average 50 times a day),[object Object],No PR, no launch,[object Object],Results 2009: profitable, revenue > $20MM,[object Object]
Making Progress,[object Object],In a lean transformation, question #1 is – which activities are value-creating and which are waste?,[object Object],In traditional business, value is created by delivering products or services to customers,[object Object],In a startup, the product and customer are unknowns,[object Object],We need a new definition of value for startups,[object Object]
Traditional Product Development,[object Object],Unit of Progress: Advance to Next Stage,[object Object],Waterfall,[object Object],Requirements,[object Object],Specification,[object Object],Design,[object Object],Problem: known,[object Object],Solution: known,[object Object],Implementation,[object Object],Verification,[object Object],Maintenance,[object Object]
Agile Product Development,[object Object],Unit of Progress: A line of Working Code,[object Object],“Product Owner” or in-house customer,[object Object],Problem: known,[object Object],Solution: unknown,[object Object]
Product Development at Lean Startup,[object Object],Unit of Progress: Validated Learning About Customers ($$$),[object Object],Customer Development,[object Object],Hypotheses,,[object Object],Experiments,,[object Object],Insights,[object Object],Problem: unknown,[object Object],Data,,[object Object],Feedback,,[object Object],Insights,[object Object],Solution: unknown,[object Object]
Minimize TOTAL time through the loop,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object]
How to build a Lean Startup,[object Object],Let’s talk about some specifics. ,[object Object],Continuous deployment,[object Object],Rapid Split-tests,[object Object],Five why’s ,[object Object]
Continuous Deployment,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],Learn Faster,[object Object],Customer Development,[object Object],Five Whys,[object Object],Build Faster,[object Object],Continuous Deployment,[object Object],Small Batches,[object Object],Continuous Integration,[object Object],Refactoring,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object],Measure Faster,[object Object],Split Testing,[object Object],Actionable Metrics,[object Object],Net Promoter Score,[object Object],SEM ,[object Object]
Continuous Deployment,[object Object],[object Object]
At IMVU time from check-in to production = 20 minutes
Tell a good change from a bad change (quickly)
Revert a bad change quickly
And “shut down the line”
Work in small batches
At IMVU, a large batch = 3 days worth of work
Break large projects down into small batches,[object Object]
Everyone has a complete sandbox
Continuous Integration Server (BuildBot)
All tests must pass or “shut down the line”

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2010 01 27 The Lean Startup Twiistup