THE LEAN STARTUP iterative product development Sean Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University
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1 THE LEAN STARTUP iterative product development Sean Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University
2 The Reason Most Startups FAIL
3 IS BECAUSE... NO ONE WANTS what they ve built.
4 WHY IS THIS IMPORTANT?
5 10 MONTHS STEALTH MODE Conviction to build FeedHub Private Beta of FeedHub Launch Demo 2007 Dec 2006 Aug 2007 Sept 2007
6
7
8
9 10 MONTHS STEALTH MODE Wasted Time Conviction to build FeedHub Private Beta of FeedHub Launch Demo 2007 Dec 2006 Aug 2007 Sept 2007
10 Launch early enough to be embarrassed by your product s first version ~ Reid Hoffman Co-Founder & Chairman LinkedIn
11 I should let you know, we're not done. It's early days and some things could change to the API before we release it. ~ Timothy Jordan Google
12 #ifihadglass
13
14 Waterfall Requirements Development Design Known Problem Implementation Known Solution Verification Maintenance
15 Requirements Agile Development Design Known Problem Implementation Unknown Solution Product Backlog Sprint Backlog Released Code
16 Lean Startup Customer Discovery Customer Validation Customer Creation Company Building Unknown Problem Unknown Solution Product Backlog Sprint Backlog Released Code
17 Known Problem Unknown Problem Known Solution Unknown Solution Kanban Lean Startup Waterfall Development Agile Development
18 THE CUSTOMER DEVELOPMENT MODEL 1. Customer Discovery A product solves a problem for an identifiable group of users 2. Customer Validation The market is saleable & large enough that a viable business might be built 3. Customer Creation The business is scalable through a repeatable sales and marketing roadmap 4. Company Building Company departmental and operational processes are created to scale
19 Minimally Viable IDEAS Product LEARN BUILD DATA CODE MEASURE
20 Minimally Viable IDEAS Awesome Product LEARN BUILD DATA CODE MEASURE
21 MAP #1 > Concept MAP #2 > P-M Eval MAP #3 > P-M Fit MAP #1 PPC Campaign Landing Page MAP #2 Product Drawings Detailed Spec MAP #3 Prototype Functional Output Customer Interaction Features / Benefits description More info Call to Action Face-to-face technology demo Field Pilot Objective Market insight Find early adopters Locate Strategic partners Seed Funding Paid-beta customers Revenue Customer Validation Capital Investment Investment $ $$ $$$ Adapted From : The Entrepreneur's Guide to Customer Development
22 STUDIO SEED CONCEPTS ~ $1k concepts scale ~ $50k ~ $100k + ~$200k target first investment plus additional reserves spin out ~ $200k All Community Driven Commerce Focused & Shared Overhead
23 NON-SOFTWARE EXAMPLE Innovation Happens
24 GOALS FOR INNOVATION HAPPENS
25 1. Provide networking events connecting entrepreneurs & large corporations
26 2. Encourage entrepreneurs to focus more on getting customers
27 3. Create a culture of buying local in Pittsburgh
28
29
30 APPLICATION EXERCISE What is your MAP? Minimally Awesome Product Customer Interaction Objective
31 Great but... How do you project time for each cycle? A: SCRUM
32 Scrum Engineering Practices This will be unique for each of you based on your team, type of solution being developed and personal preferences. Could be: XP, Feature Driven Development, Crystal, Kanban or any other process your engineering team is comfortable with. (often pull aspects from each)
33
34 Scrum Process Source: process- sprint- agile- software- methodology.aspx
35 Tips / Tricks: Important for everyone to buy into the vocabulary One person should set priority of Product Backlog (product owner) but everyone can see it Same person should also be administrator Be serious about your time box / sprint Measure velocity and own it
36 THANK YOU
37 COMMUNICATION IS KEY FOR FUNDING
38
39
40 VALIDATE HYPOTHESIS... Key Partnerships Key Activities??? Value Proposition Customer Relationships??? Customer Segments??? Key Resources??? Channels????????? Cost Structure??? Revenue Streams???
41 Key Activities Customer Relationships Key Partnerships Niche Content Value Proposition Customer Segments Niche Customers Key Resources Channels Cost Structure Revenue Streams
42 Key Activities Customer Relationships Key Partnerships Value Proposition Basic Usage Customer Segments Casual Key Resources Premium Usage Channels High Volume Cost Structure Revenue Streams Free Paid
43 PHOTO CREDITS Slide 6: Slide 8: Slide10: Slide 38:
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