Lean Startup (for the Enterprise) Workshop

Lean Startup

Speed the E

ngine of

Ente

rpris

e In

nova

tion

I have thisawesomeidea!

that’s great, let’s do it…

What does ‘do’ mean?

• Sit around the table and design it…• Develop code… (or in manufacturing build it…)

• Move it to production…

And then…

No one comes…

Yikes!That was supposed

to be ourbest?!!yet

idea

So howdid we KNOWwhat thecustomerwanted?

Hint:We had no ___________

clue…(expletive)

Lean Startupis built on

3 simple principles

Time to learn an Alien Language

GOOTO

IKIWISI

DALAP“Do As Little As Possible”

“Get Out of the Office*”

*the real term in Lean Startup is GOOTB = Get Out of the Building”

“I’ll Know It When I See It”

DALAP“Do As Little As Possible”

Almost everyof what a

initial ideacustomer wants

is WRONG!!

ideaneed

customer= Hypothesis

any & all may be wrong

reduce

GOOTO“Get Out of the Office*”

ideaneed

customer= Hypothesis

assume it is wrong

We aren’t going

if our idea will work

to figure out

here

We must test our assumptions

IKIWISI“I’ll Know It When I See It”

Create something

the hypothesisto confirm

Go from

simple harderto

LearnObjective

is to

Lean Startupalso has

1 C RE

Value

PassionateIdeas

Loosely Held

Build

Learn Measure

Build

Learn Measure

idea!

WTFYou told me NOTto build anything

ideaneed

customer= Hypothesis

We have to

ourtest

Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

Hypothesis

or

pivot

Survey

Prototype

Build

Interview

Very CoolLet’s look at an example…

GreanEase Team Nov 2012 Lean Start-up Machine

• Original Concept: – App to provide moderate ‘greenies’ with information

about the restaurant food they were buying as they are not able to easily find this info; to be paid for by the restaurant owners

• Biggest Assumption: is this a valid need?• 1st “build”: Structured Interview– Questions to ID customer segment– Closed questions to see if this need was valid– Open-ended questions to understand other items– Executed at Whole Foods, Pleasant Pops Market, and a

‘green’ grocer

GreenEase Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

ModerateGreenie

RestaurantFood InfoPhone App

Anything out there yet?

Food info available?

Will restaurant owners pay?

Is this a valid need?

Structured Interview

Moderate Greenies Didn’t Drive Decisions on This!

Moderate GreenieThanks to open-ended

Qs, we discovered that

it is Locavores

interested in foods

grown locally.

GreanEase Team Nov 2012 Lean Start-up Machine

• Pivot 1: – App to provide Locavores with information about how

local restaurant food is as they are not able to easily find this info; to be paid for by the restaurant owners (though the experiment will test our other customer segment assumption)

• Next Biggest Assumption: will restaurant owners pay?

• 2nd “build”: Structured Interview– Closed questions to see if this need was valid– Open-ended questions to understand other items– Executed at Ris, Founding Farmers, & two other

restaurants known for locally sourcing their food

GreenEase Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

ModerateGreenie

RestaurantFood InfoPhone App

Structured Interview

Restaurant owners are getting enough business w/word of mouth

Restaurant Owners

Restaurant Owner

Need to Market Concern

Phone App

Will restaurant owners pay?

Anything out there yet?Food info available?Are Locavores interested?

Need to Market Concern

GreanEase Team Nov 2012 Lean Start-up Machine

• Pivot 2: – App to provide Locavores with information about

how local restaurant food is as they are not able to easily find this info; they will purchase this app

• Next Biggest Assumption: are they interested?• 3rd “build”: Structured Interview– Questions to ID customer segment– Closed questions to see if this need was valid– iPad Landing Page w/proposed $1.99 price tag– Executed at local Farmer’s Markets & then online

GreanEase Team Nov 2012 Lean Start-up Machine

To arrive at this design:

• Created mock-up of phone app design• Logo– Used Hired A|B Testing Group

• Landing Page

GreenEase Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

ModerateGreenie

RestaurantFood InfoPhone App

Anything out there yet?Food info available? Structured

Interview

Restaurant Owner

Need to Market Concern

Phone App

Are Locavores interested? Pay?

Locavores

RestaurantFood Info

Phone App

Interested & Will Pay $1.99!

LocavoresRestaurantFood InfoPhone App

GreanEase Team Nov 2012 Lean Start-up Machine

• Still on Pivot 2: – App to provide Locavores with information about how

local restaurant food is as they are not able to easily find this info; they will purchase this app

• Next Biggest Assumption: anything out there yet?• 4th “build”: Internet Competitor Research– Searched for locavore restaurant apps– Looked for both successes & failures

GreenEase Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

ModerateGreenie

RestaurantFood InfoPhone App

Food info available? Structured

Interview

Restaurant Owner

Need to Market Concern

Phone App

Are Locavores interested? Pay?

Locavores

RestaurantFood Info

Phone App

1-2 others, 1-2 failures, but revenue stream was not well-defined for them

LocavoresRestaurantFood InfoPhone App

Interest & Little Competition

ofEndthe

Startup Machine

wins!(but there’s plenty more to do…)

Possible Steps Forward

• Find how to source info– Will users provide?– Sources?

• Refine Mock UI from static to dynamic– Is it usable?– Is the info presented meaningful?– Any info missing that users want?

Time to…Get Started!

Validation Board

Assumptions

Customer

Need

Solution

P1 P2 P3 P4 P5

Riskiest Assumption

Experiment

Result

Invalidated Validated

Good for ideas controlled internallyHot House Process

Cross-FunctionalExecutive Review

2-3 Days

Hot House accredited to

Shardul Mehta

Cross-FunctionalExecutive Review

Cross-FunctionalExecutive Review

Time Varies

Time Varies

Board Review ProcessGood for products needing market input

More Useful Tools

More Useful Tools

Ahem… I said…

Business Canvas

Value Proposition

Customer Segments

Customer Relationships

DistributionChannels

Key Partners Key Activities

Key Platforms

Costs Revenue Streams

Environmental Analysis

You are now

armed & dangerous