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2010 05 03 Lean Startup Intensive At Web 2 0 Expo Welcome By Eric Ries

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Presented by Eric Ries at the Lean Startup Intensive at Web 2.0 Expo in SF on May 3, 2010

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2010 05 03 Lean Startup Intensive At Web 2 0 Expo Welcome By Eric Ries

  1. Lean Startup Intensive<br />Welcome<br />#leanstartup<br />Eric Ries (@ericries)<br />http://StartupLessonsLearned.com<br />
  2. STOPWASTINGPEOPLE’STIME<br />
  3. Most Startups Fail<br />
  4. Most Startups Fail<br />
  5. Most Startups Fail<br />
  6. Entrepreneurship = Awesome<br />It is the best time in the history of the world to be an entrepreneur<br />Costs are falling in all industries<br />Barriers are being destroyed<br />Disruption and chaos are everywhere<br />
  7. Why build a startup?<br />Only entrepreneurship combines these three elements<br />Change the world<br />Build an organization of lasting value<br />Make customers’ lives better<br />
  8. What is a startup?<br /><ul><li>A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.
  9. Nothing to do with size of company, sector of the economy, or industry</li></li></ul><li>Entrepreneurship is management<br /><ul><li>Our goal is to create an institution, not just a product
  10. Traditional management practices fail</li></ul>- “general management” as taught to MBAs<br /><ul><li>Need practices and principles geared to the startup context of extreme uncertainty
  11. Not just for “two guys in a garage”</li></li></ul><li>The Pivot<br />
  12. I’<br />
  13. The Pivot<br /><ul><li>What do successful startups have in common?
  14. They started out as digital cash for PDAs, but evolved into online payments for eBay.
  15. They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly.
  16. They were shocked to discover their online games company was actually a photo-sharing site.
  17. Pivot: change directions but stay grounded in what we’ve learned. </li></li></ul><li>Speed Wins<br />If we can reduce the time between pivots<br />We can increase our odds of success<br />Before we run out of money<br />
  18. Making Progress<br /><ul><li>In a lean transformation, question #1 is – which activities are value-creating and which are waste?
  19. In traditional business, value is created by delivering products or services to customers
  20. In a startup, the product and customer are unknowns
  21. We need a new definition of value for startups: validated learning about customers</li></li></ul><li>Traditional Product DevelopmentUnit of Progress: Advance to Next Stage<br />Waterfall<br />Requirements<br />Specifications<br />Design<br />Problem: known<br />Solution:known<br />Implementation<br />Verification<br />Maintenance<br />
  22. Agile Product DevelopmentUnit of Progress: A line of Working Code<br />“Product Owner” or in-house customer<br />Problem: known<br />Solution:unknown<br />
  23. Lean StartupUnit of Progress: Validated Learning About Customers ($$$)<br />Customer Development<br />Hypotheses, Experiments,<br />Insights<br />Problem:unknown<br />Data, Feedback,<br />Insights<br />Solution:unknown<br />Agile Development<br />
  24. Minimize TOTAL time through the loop<br />
  25. There’s much more…<br />Build Faster<br />Unit Tests<br />Usability Tests<br />Continuous Integration<br />Incremental Deployment<br />Free & Open-Source<br /> Components<br />Cloud Computing<br />Cluster Immune System<br />Just-in-time Scalability<br />Refactoring<br />Developer Sandbox<br />Minimum Viable Product<br />Learn Faster<br />Split Tests<br />Customer Interviews<br />Customer Development<br />Five Whys Root Cause<br />Analysis<br />Customer Advisory Board<br />Falsifiable Hypotheses<br />Product Owner<br />Accountability<br />Customer Archetypes<br />Cross-functional Teams<br />Semi-autonomous Teams<br />Smoke Tests<br />Measure Faster<br />Funnel Analysis<br />Cohort Analysis<br />Net Promoter Score<br />Search Engine Marketing<br />Real-Time Alerting<br />Predictive Monitoring<br />Measure Faster<br />Split Tests<br />Clear Product Owner<br />Continuous Deployment<br />Usability Tests<br />Real-time Monitoring<br />Customer Liaison<br />
  26. Gartner Hype Cycle<br />
  27. Myth #1<br />Myth<br />Lean means cheap. Lean startups try to spend as little money as possible.<br />Truth The Lean Startup method is not about cost, it is about speed. <br />
  28. Myth #2<br />Myth<br />The Lean Startup is only for Web 2.0/internet/consumer software companies.<br />Truth The Lean Startup applies to all companies that face uncertainty about what customers will want. <br />
  29. Myth #3<br />Myth<br />Lean Startups are small bootstrapped startups.<br />Truth Lean Startups are ambitious and are able<br /> to deploy large amounts of capital. <br />
  30. Myth #4<br />Myth<br />Lean Startups replace vision with dataor customer feedback.<br />Truth Lean Startups are driven by a compelling vision, and are rigorous about testing each element of this vision<br />
  31. Today<br />Session 1Eric Ries: Welcome & Introduction Steve Blank: Customer Development <br />Session 2 Sean Ellis: Product/Market Fit & the Startup Pyramid Matt Brezina: "The 5 stages of Xobni's growth and 5 pivots along the way” <br />Session 3 Dave McClure: Startup Metrics Dan Martell & Ethan Bloch: Flowtown Case Study David Binetti: Votizen Case Study <br />Session 4 Investing in the era of the lean startup - Moderator: Dave McClure- Panelists: Ann Miura-Ko, Josh Kopelman, Jeff ClavierHiten Shah: KISSmetrics case study <br />Joint session Applied Communilytics Intensive Q&A: Eric Ries, Sean Power, and Alistair Croll<br />

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