Lean startup and Agile Development
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The document discusses Lean Startup and Agile Product Development. It provides an overview of Lean Startup principles including that entrepreneurs are everywhere, entrepreneurship is management, validated learning through experiments, and the Build-Measure-Learn process. The Lean Startup methodology aims to shorten product development cycles through frequent customer feedback to build innovative products in an efficient manner.
![Benefits of Lean Startup
8Niranjan
Nerlige
V,
Copy
Right
Protected
Ø Be
more
Innovative
Ø Stop
wasting
people’s
time
Ø Be
more
successful
“Lean Startup isn't about being cheap [but is about] being
less wasteful and still doing things that are big.”](https://image.slidesharecdn.com/leanstartup-170829170909/85/Lean-startup-and-Agile-Development-8-320.jpg)
Lean startup and Agile Development
- 1. Lean Startup and Agile Product Development by Niranjan Nerlige V, M.Tech (IIT-‐B), PMI-‐ACP , SPC4, CSP, CSM Founder, Chief Consultant, Scaled Agile Framework (SAFe) Program Consultant, Agile Coach and Trainer. ExelPlus Services, Niranjan Nerlige V, Copy Right Protected 1
- 2. 2 NIRANJAN NERLIGE V, M.TECH(IIT-‐B), PMI-‐ACP, CSP, CSM, SPC AGILE COACH, SCALED AGILE FRAMEWORK CONSULTANT AND TRAINER • Consulting, Coaching, Mentoring and Training in Agile Methodologies, Transitioning to Agile Successfully, Agile-‐CMMI, Software Estimation and Project Management • 17 Years of Overall Experience in Software Quality Assurance, Agile –Scrum, XP, Hybrid, Deployment of Software Development Processes and 8 Years as a Consultant and Entrepreneur • Agile Certified Practitioner (PMI-‐ACP) from PMI, Certified Scrum Master (CSM) , holds Certified Scrum Professional (CSP) certification from Scrum Alliance and Scaled Agile Framework Consultant(SPC4) • Trained more than 3000 plus professionals in Agile Methodologies and 70 Plus Organisations in the last 8 years. • Has been Consultant , Coach and Trainer to IT and Non IT Organisations in India and Overseas. • Core Committee Member for Bangalore Chapter Agile Leadership Network. Niranjan Nerlige V, Copy Right Protected
- 3. 3Niranjan Nerlige V, Copy Right Protected Lean Start Up
- 4. 4Niranjan Nerlige V, Copy Right Protected 70 % Startups fail
- 5. 5Niranjan Nerlige V, Copy Right Protected Why do they fail?
- 6. Top 10 Valuable Startups 6Niranjan Nerlige V, Copy Right Protected
- 7. Top 20 Reasons for failure 7Niranjan Nerlige V, Copy Right Protected Ø Attraction to great business plan Ø Attraction to Solid Strategy Ø Attraction to thorough market research Ø Just Do it
- 8. Benefits of Lean Startup 8Niranjan Nerlige V, Copy Right Protected Ø Be more Innovative Ø Stop wasting people’s time Ø Be more successful “Lean Startup isn't about being cheap [but is about] being less wasteful and still doing things that are big.”
- 9. Roots of Lean Startup 9Niranjan Nerlige V, Copy Right Protected The Lean Startup takes its name from the lean manufacturing revolution that Taiichi Ohno and Shigeo Shingo are credited with developing at Toyota. Lean thinking is radically altering the waysupply chains and production systems are run.
- 10. About Lean Startup 10Niranjan Nerlige V, Copy Right Protected “The Lean Startup isn’t just about how to create a more successful entrepreneurial business; it’s about what we can learn from those businesses to improve virtually everything we do. I imagine Lean Startup principles applied to government programs, to health care, and to solving the world’s great problems. It’s ultimately an answer to the question How can we learn more quickly what works and discard what doesn’t?” —Tim O’Reilly, CEO, O’Reilly Media
- 11. Principles of Lean Startup 1) Entrepreneurs are everywhere 2) Entrepreneurship is management 3) Validated Learning 4) Build-‐Measure-‐Learn 5) Innovation Accounting 11Niranjan Nerlige V, Copy Right Protected
- 12. Entrepreneurs are everywhere • “SnapTax” was developed by Intuit (7000 plus employees) 12Niranjan Nerlige V, Copy Right Protected a human institution designed to create new products and services under conditions of extreme uncertainty.
- 13. Entrepreneurship is management 13Niranjan Nerlige V, Copy Right Protected So it requires management, a new kind of management specifically geared to its context
- 14. Validated Learning Startups exist not to make stuff, make money, or serve customers. 14Niranjan Nerlige V, Copy Right Protected Eg: on web,analytics software can track visitor behavior and give accurate statistics and insight on how website features work in reality This learning can be validated scientifically, by running experiments that allow us to test each element of our vision
- 15. Build-Measure-Learn The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then 15Niranjan Nerlige V, Copy Right Protected .
- 16. Build-‐Measure-‐Learn Example • The mobile app startup comes up with an idea. • The startup comes up with a business model canvas, presented in a short business plan. (BUILD) • They start talking with customers and ask them what features they are looking for in an app. (MEASURE) • They will obtain the feedback of customers. (LEARN) • Using the feedback obtained, they will have to repeat Step 2 and make revisions on the business plan until they get it right. • Once they got the business plan right, they would proceed to the implementation of a prototype, or the MVP (minimum viable product) for testing. (BUILD) • The prototype is then shown to the customers. (MEASURE) • Feedback from customers is obtained and learned. (LEARN) • Step 6 is repeated, making improvements on the prototype until they got the app right. 16Niranjan Nerlige V, Copy Right Protected Source: https://www.cleverism.com/how-build-measure-learn-cycle-really-works/
- 17. Innovation Accounting To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: 17Niranjan Nerlige V, Copy Right Protected
- 18. Innovation Accounting Ø A start-‐up requires a degree of fluidity early. Ø most dangerous moves any business start-‐up can make is persevering for far too long according to Ries. 1) rigorously measure where it (the startup) is right now, confronting the hard truths that assessment reveals, 2) devise experiments to learn how to move the real numbers closer to the ideal reflected in the business plan. 18Niranjan Nerlige V, Copy Right Protected
- 19. Innovation Accounting-Example 19Niranjan Nerlige V, Copy Right Protected
- 20. Lean Startup Methodology “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.” 20Niranjan Nerlige V, Copy Right Protected
- 21. Lean Startup Process-New Product Development 21Niranjan Nerlige V, Copy Right Protected
- 22. Traditional V/S Agile Product Development 22Niranjan Nerlige V, Copy Right Protected
- 23. Product Development in a Lean Startup 23Niranjan Nerlige V, Copy Right Protected
- 24. Lean Startup and Agile Development 24Niranjan Nerlige V, Copy Right Protected source:https://newentrepreneurship.nl/lean-startup-method/
- 25. Lean Startup and Agile Difference 25Niranjan Nerlige V, Copy Right Protected http://cabforward.com/the-differences-between-lean-startup-and-agile-methodology/
- 26. Eliminate Uncertainty • Lack of Tailored management process • Abandon all process and take just do it approach 26Niranjan Nerlige V, Copy Right Protected
- 27. Continuous Innovation 27Niranjan Nerlige V, Copy Right Protected
- 28. Work Smarter not harder 28Niranjan Nerlige V, Copy Right Protected • Don’t ask the question ” Can this product be built” ask ”Should this product be built” • Experiment it than just theoretical enquiry • Then, – enlist early adopters – Add employees to each experiment or iteration – Customer development
- 29. Build an MVP 29Niranjan Nerlige V, Copy Right Protected • Figuring the problem to be solved • Then develop minimum viable product (MVP) • Measurement, learning and tuning the engine • Use 5 whys to know the cause and effect • Pivot if the company is not moving the drivers of business • test a new fundamental hypothesis about the product, strategy and engine of growth. Image courtesy :https://mobisoftinfotech.com/services/mvp- development-services Use Build- Measure-Learn loop
- 30. ©Niranjan N V, Exelplus Services
- 31. ©Niranjan N V, Exelplus Services
- 32. Validated Learning 32Niranjan Nerlige V, Copy Right Protected • Demonstrating progress in the soil of extreme uncertainty • measuring it against potential customers to validate the effect. • Customers will pay • Need not spend months waiting for a beta launch to change direction
- 33. ZAPPOS Case Study • One of the biggest online shoe and clothing shops in the world • founded in 1999 as a startup • It was originally just a site where customers can order shoes • It is not a manufacturer or a retailer since it does not have any shoe inventory. • This was the Build phase • When the first orders started coming in, the founders of the startup went to a local store to purchase the shoes • Subsequently shipped them to the customers who placed the order. • This was where they implemented the Measure phase of the cycle. • Founders tried to gauge the interest of the customers in their idea and even obtained their thoughts and reactions. 33Niranjan Nerlige V, Copy Right Protected
- 34. Contd…. • Using the lessons learned from the first orders, they made the necessary adjustments and iteration • applied improvements, and continued the cycle. • by using the Build-‐Measure-‐Learn approach, it was able to test the waters first • Zappos could have gone another route entirely. • Instead of spending a lot of time building its inventory and hiring personnel to handle operations • getting orders first before procuring the shoes was more important • Their first attempt worked, and it was only then that the founders decided to continue (“persevere”) with it. • If they Build-‐Measure-‐Learn feedback loop. It would probably still have succeeded, but they may have taken more time to achieve the results 34Niranjan Nerlige V, Copy Right Protected
- 35. SnapTax Case Study • In 2009, a startup decided to try something really audacious • They wanted to liberate taxpayers from expensive tax stores (the end-‐of-‐year statement that most employees receive from their employer to know the taxable wages) • The startup quickly ran into difficulties. • Even though many consumers had access to a printer/scanner in their home or office, few knew how to use those devices. • After numerous conversations with potential customers, the team lit upon the idea of having customers take photographs of the forms directly from their cell phone • customers asked something unexpected: would it be possible to finish the whole tax return right on the phone itself? • It wasn’t easy task as traditional tax preparation had hundreds of questions, many forms and lot of paper work 35Niranjan Nerlige V, Copy Right Protected
- 36. SnapTax Case Study-‐Contd…. • Decided to ship an early version of its product that could do much less than a complete tax package • The initial version worked only for consumers with a very simple return to file , only in california • Instead of having consumers fill out a complex form, they allowed the customers to use the phone’s camera to take a picture of their W-‐2 forms • Instead fill out a complex form, customers to use the phone’s camera to take a picture of their W-‐2 forms • new product—called SnapTax—provides a magical experience Compared with the drudgery of traditional tax fling • Its nationwide launch in 2011 more than 350,000 downloads in the first three weeks • kind of amazing innovation you’d expect from a new startup. 36Niranjan Nerlige V, Copy Right Protected
- 37. References • Lean Start up by Eric Ries • Blog -‐ https://www.cleverism.com/how-‐build-‐measure-‐learn-‐ cycle-‐really-‐works/ • Running Lean: Iterate from Plan A to a Plan That Works (Lean (O'Reilly)) 37Niranjan Nerlige V, Copy Right Protected
- 38. Thank You For Your Time ………….. Global Excellence Through Innovative solutions 38 Niranjan N.V., M.Tech (IIT-‐B), PMI-‐ACP, CSP, CSM, SPC4 Founder, Chief Consultant, Scaled Agile Framework (SAFe) Program Consultant, Agile Coach and Trainer. ExelPlus Services, A1, Samhita Vista, 1st Main, Pai Lay Out, Old Madras Road Bangalore-‐560016,INDIA Tel: +91 9900055943 E mail: [email protected] Linkedin: in.linkedin.com/in/niranjannerlige/ Please feel free to contact us for: i) Agile Solutions and organization wide Transformations ii) Agile, Scrum Project Management Consulting and Training iii) Scaling Agile at Enterprise Level using SAFe iii) Estimation Competency solutions