Lean Innovation introduction
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1) The document discusses the Lean Startup methodology for improving the success rate of startups. It emphasizes building the minimum viable product and getting early customer feedback through experimentation to validate assumptions and pivot if needed, rather than spending years developing the wrong product. 2) The Lean Canvas tool is presented as a way to document the initial business idea and iterate through customer discovery, validation, and creation phases to find a scalable and repeatable business model. 3) Traditional startup approaches are contrasted with lean approaches, with lean emphasizing problem validation over predefined solutions, minimum viable products over complete features, and continuous customer input over secrecy during development.
![Experiment report
23.5.2014 pragmatic-solutions.ch 12
Experiment report Title Author: created:
FromLeanstackbySpark59
Background:
what are you trying tio achieve?
why is it relevant?
Falsifiable Hypothesis:
declare your expected outcome
[Specific repeatable action] will [expected measurable outcome]
Set scope and time box
Details:
How do you set up the experiment
results:
qualitative or quantitative results
next action:
What is the next experiment
validated learning:
Sumarize your learning from the experiment. (Validated, invalidated,
inconclusive.](https://image.slidesharecdn.com/leaninnovationintroduction-startupweekend-140603234357-phpapp01/85/Lean-Innovation-introduction-12-320.jpg)
Lean Innovation introduction
- 1. 1 Dr. Adrian von Orelli, Fredi Schmidli Zürich, Mai 2014 23.5.2014 pragmatic-solutions.ch Startup Weekend Luzern 23. Mai 2014 «Lean Startup» Neue Wege um das «Richtige» zu bauen
- 2. 23.5.2014 Fredi Schmidli [email protected] • Business Angel and Boardmember: www.startangels.ch • Entrepreneur • Community Builder: - meetup.com/Lean- startup-Zurich/ - Agile Breakfasts 2 Adrian von Orelli [email protected] • EE PhD ETHZ • R&D leader • Innovator • 15 years of high tech product development pragmatic-solutions.ch
- 3. To improve the success rate • 9/10 failing • by building the wrong product • 66% of successful Startups significantly change original business idea • Success does not come from a better idea, but from method/framework which iterates your original ideas to a working business model – before running out of cash Source: Ash Maurya «Running Lean» 323.5.2014 pragmatic-solutions.ch
- 4. What is a start up? A temporary organization in search of a scalable, repeatable business model under condition of extreme uncertainty 423.5.2014 pragmatic-solutions.ch The definitions from Eric Ries, Steve Blank combined
- 5. In a startup the customer and what he/she might find valuable is unknown. Value is generated by learning these unknowns. What is lean? value is “providing benefit to the customer”, anything else is waste. 23.5.2014 pragmatic-solutions.ch 5
- 6. Lean is … A company culture touching all aspects: Values, Leadership, Employee Development, Empowerment, Performance, Accountability, … Not a collection of tools A culture can not be copied 623.5.2014 pragmatic-solutions.ch
- 7. Deming “In God we trust, all others must bring data” W. Edwards Deming 723.5.2014 pragmatic-solutions.ch
- 8. Goals Finding a business model, which is • profitable • repeatable • scalable 823.5.2014 pragmatic-solutions.ch
- 9. Lean Innovation Framework • documenting your initial business idea • by iterating and experimenting through the feedback loop • finding out if there is a problem worth solving and if there are enough customers willing to pay Scale Product Market fit Problem Solution fit Customer Discovery Customer Validation Customer Creation 923.5.2014 pragmatic-solutions.ch
- 10. Lean Canvas by Ash Maurya Problem Solution UVP Unfair Advantage CUSTOMER SEGMENTS KEY Metrics CHANNELS COST STRUCTURE REVENUE STREAMS 1 234 5 67 8 9 1023.5.2014 pragmatic-solutions.ch Hypothesis > Experiment > Facts
- 11. Feedback loop Design experiment Proposal, Pretotype, Landing page, MVP … Results from experiment Analyze results Pivot or persevere weeks not years Assumption/ Hypothesis Run experiment Creativity happens here 1123.5.2014 pragmatic-solutions.ch
- 12. Experiment report 23.5.2014 pragmatic-solutions.ch 12 Experiment report Title Author: created: FromLeanstackbySpark59 Background: what are you trying tio achieve? why is it relevant? Falsifiable Hypothesis: declare your expected outcome [Specific repeatable action] will [expected measurable outcome] Set scope and time box Details: How do you set up the experiment results: qualitative or quantitative results next action: What is the next experiment validated learning: Sumarize your learning from the experiment. (Validated, invalidated, inconclusive.
- 13. Lean Innovation Framework 1323.5.2014 © pragmatic-solutions.ch
- 14. Traditional versus lean approach Traditional Lean 50 page business plan 1 page lean canvas Focus on solution Focus is on problem Specify all features Minimum viable product Develop in secrecy Get continuous customer input Build, launch, sell Build, measure, learn Complete product build Incremental build Source: Ash Maurya: Running Lean 1423.5.2014 pragmatic-solutions.ch
- 15. From Proposal to Product 4) MVP: early version with minimal feature set that can be sold to early adopters 1) Proposal: a document describing the solution 3) Pretotype: “Fake” demo of any kind 2) Smoke Test: Landing Page to test interest 1523.5.2014 pragmatic-solutions.ch
- 16. Minimal Viable Product A MVP is not a minimal product, it is a strategy and process directed toward making and selling a product to customers. 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. (Eric Ries) A MVP may be a prototype, an entire product, or a sub-set of product (such as a feature) 1623.5.2014 pragmatic-solutions.ch
- 17. MVP Examples http://steveblank.com/2013/07/22/an-mvp-is-not-a-cheaper-product-its-about-smart-learning/ Test business model for Drone based imaging system MVP: Rent camera and plane instead of building a drone 1723.5.2014 pragmatic-solutions.ch
- 18. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch Examples of MVP http://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/ 4. Test vision of service offering for Dropbox
- 19. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch Examples MVP 3. Test vision for flat TV From Tom Kelly „the ten faces of innovation“
- 20. Validate your assumptions Every experiment has three parts 1. A hypothesis that is provable/disprovable 2. The experiment itself; the thing you “build” 3. An indicator of result Start with the most relevant hypothesis 2023.5.2014 pragmatic-solutions.ch
- 21. The questions to start with Do customers recognize that they have the problem you are trying to solve? The questions to verify the value and growth assumptions: If there was a solution, would they buy it? Would they buy it from us? Can we build a solution for that problem? 2123.5.2014 pragmatic-solutions.ch
- 22. Problem Interview Welcome: Set the scene (2min) Interviewees demographics-target customer? (2min) Describe top 3 problems (2min) Rank the top three problems (4min) Explore world view, what else keeps them awake (15min) Wrap up. Sum up feedback to confirm understanding (2min) Get permission to follow up. Get referrals (2min) Document results Ash Maurya 2223.5.2014 pragmatic-solutions.ch
- 23. Solution Interview Welcome: Set the scene (2min) Interviewees demographics-target segment ? (2min) Tell a story - frame the product (2min) Show Demo, MVP (15min) Test pricing (15min) Wrap up. Sum up feedback to confirm understanding (2min) Get permission to follow up. Get referrals (2min) Document results Ash Maurya 2323.5.2014 pragmatic-solutions.ch
- 24. Pivot A change in strategy without a change in vision 2423.5.2014 pragmatic-solutions.ch
- 25. 23.5.2014 pragmatic-solutions pragmatic-solutions.ch More information HBS article „Why lean start up changes everything“ www.steveblank.com Ash Maurya: “Running Lean” Eric Ries: „Lean start up“ Brant Cooper: “Entrepreneurs Guide to Customer Development” Steve Blank: “Customer Development Manifesto”;“Startup Owners Manual” Alexander Osterwalder: “Business Model Generation”