Lean for Business
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The document discusses the principles of lean startup methodology, emphasizing the importance of minimizing waste and maximizing customer value through iterative and incremental product development. It highlights concepts like minimal viable product, short feedback loops, and understanding the cost of delay to improve decision-making and prioritization. Additionally, it mentions the need for continuous workflow and the balance between speed and value in project management.
Lean for Business
- 1. Lean for Business “Lean Startup is about being less wasteful and still doing things that are big.” Eric Ries
- 2. All products / features start with a Great Idea!
- 3. 3 Unfortunately..... it is likely to fail Plan Reality
- 4. Long projects get Longer CONFIDENTIAL - [email protected] 4 Longer project More likely to get interrupted More scope creep
- 5. We tend to build the wrong thing CONFIDENTIAL - [email protected] 5 Sources: Standish group study reported at XP2002 by Jim Johnson, Chairman The right-hand graph is courtesy of Mary Poppendieck Always 7% Often 13% Some- times 16% Rarely 19% Never 45% Half of the stuff we build is never used! Cost # of features
- 6. CONFIDENTIAL - [email protected] 6 Let’s change things!
- 7. Iterative and Incremental CONFIDENTIAL - [email protected] 7 Don’t try to get it all right from the beginning Don’t build it all at once cost value cost value
- 8. Not ”horizontal” increments DB Server Client 1 2 3 1 2 3 4 value
- 9. ”Vertical” increments! DB Server Client 1 5 2 3 1 432 value
- 10. Keep iterations short CONFIDENTIAL - [email protected] 10 Short iteration Less likely to get interrupted Less scope creep
- 11. Lean • Lean = maximizing customer value while minimizing waste • Continuous Workflow = optimizing throughput CONFIDENTIAL - [email protected] 11
- 12. Maximize Value, not Output CONFIDENTIAL - [email protected] 12
- 13. Idea #1: Minimal Viable Product CONFIDENTIAL - [email protected] 13
- 14. Example: Apple CONFIDENTIAL - [email protected] 14 2007 2008 - App Store - 3G 2009 - Copy/Paste - Search 2010 - Multitasking - Video calls
- 15. Idea #2: Short Feedback Loop – Learn Fast CONFIDENTIAL - [email protected] 15
- 16. Focus on Feedback! CONFIDENTIAL - [email protected] 16 Feedback and Requests Demos and Releases Development team Stakeholders It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change. Charles Darwin
- 17. Minimize time and distance between Maker and User CONFIDENTIAL - [email protected] 17 1 2 3 People (# of handoffs) Time (feedback delay) Maker User
- 18. Idea #3: Cost of Delay • Understand the value of the things we are working on and how that value decays over time • Understand the cost of queues and waiting times 18
- 19. Make better decisions • Better Decision-making – by making the economic trade- offs visible (based on real metrics like CD3) • Better Prioritization – to deliver more total value • By changing the focus – from efficiency and cost to speed and value CONFIDENTIAL - [email protected] 19
- 21. Reference • « What is Agile? » Henrik Knisberg • http://www.fourprinciples.ae/ • Four Principles Lean Management - Get Lean in 90 Seconds – video • http://blackswanfarming.com/cost-of-delay/ CONFIDENTIAL - [email protected] 21
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