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The myth goes that the more perseverance, brilliance, good timing and a good product, the higher the chance for success. I will show you why exactly the opposite is true: Survival and, even more so, success are highly correlated with the successful application of the "Build-Measure-Learn Feedback Loop". The fact that this lean framework can be learned and taught is the final kill of the myth. I will give examples of how you can deliver more business value earlier and with less risks by testing everything as soon as possible using a so-called Minimum Viable Product.
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11.12.2013
Lean Startup: How to get business value earlier with less risks
Fredi Schmidli
SIX Swiss Exchange Zürich, 11.12.2013
1http://de.slideshare.net/pragmaticsolutions
11.12.2013
Fredi Schmidli
• Business Angel and Boardmember: www.startangels.ch
• Entrepreneur• Community Builder:
- meetup.com/Lean-startup-Zurich/ - Agile Breakfasts
2http://de.slideshare.net/pragmaticsolutions
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Content• Goals• Two different ways• Conventional way• Lean Startup way• Examples for Lean Startup Applications• Conclusions• See presentation on SlideshareBased on the Book: The lean startup, Eric Ries, 1st ed. 2011
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Your expectations?
• ... ?• ... ?• ... ?
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Collective experience?
• Who heard about• Lean Manufacturing?• Scrum/Kanban?• Lean Startup?
• Who worked with it?
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Goals
• Increase survival rate• 60% last 3 years, 35% last 10 years
(US: http://idee.vc/tag/uberleben-von-startups/)
• 66% last 3 years, 50% last 5 years http://www.bfs.admin.ch/bfs/portal/de/index/themen/06/02/blank/key/02/ueberlebensraten.html
• 56% losses in 3.5, 10% bring 80% return in 7 years(UK: Nesta-Studie 2009 mit BBAA and more than 1000 firms)
• Fail early• Increase capital efficiency of portfolio
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There are 2 ways
1. Conventional way or do the things right
• Assumption: machine, excellent plan and execution• Focus: Perseverance myth• Example: most Startups
2. Lean startup way or do the right things
• Assumption: Dynamic systems require self-organisation• Focus: Genchi Gembutsu• Example: Zappos, Dropbox, ...
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11.12.2013
Conventional way
• Culture: „Cowboy Mentality“ - „Paralysis by Analysis“• Method: Planning more important than experiments• Goal: best product possible • Characteristics - symptoms:
• Which product can we build with this technology?• Long business plans with hockey stick figures• Need funds for sales & marketing boost• Long discussions about plans or features
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Lean startup way• Culture: Success can be engineered, learned, taught• Pre-requisites: Transparency, trust and courage• Method: Short feedback loop• Goal: MVP asap and minimise cycle time• Characteristics
• Can we build a sustainable business?• Business Model Canvas• Every product, marketing campaign, etc. is experiment
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Feedback loop
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Turn ideas in ......
Minimum viable Product (MVP)
Innovation accounting
Pivot or persevere?
Entrepreneurial Mgt: Stupid! It‘s the boring stuff, ...
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Examples
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Interview MDs by pig
1. Test BP assumptions for TM app: price, cost of sales
MVP: Questionnaire & live demos
70 interviews & pattern
Pivot to public health?
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Examples
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MVP: Put picture of shoe online
2. Test business model for Zappos
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Examples
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2. New busines model AND proven service model
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Examples
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MVP
3. Test vision for flat TV
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Examples
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MVP: Videohttp://www.thisispaper.co.uk/2013/10/10/mvps-an-introduction/#more-1819/
4. Test vision of service offering for Dropbox
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Examples
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http://steveblank.com/2013/07/22/an-mvp-is-not-a-cheaper-product-its-about-smart-learning/
5. Test business model for Drone based imaging system
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MVP: Rent camera and plane instead of building a drone
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Expectations met?
• Yes?• Somehow?• No?
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Conclusions• Genchi Gembutsu, experiment and succeed or ... ?• Be courageous and transparent• Can we build a sustainable business?• MVP and Business Modell Canvas change everything• Minimise TOTAL time through the loop• Standard for Business Angels and Entrepreneurs• Good luck by applying it this afternoon .
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More information
Fredi [email protected]
Steve Blank:http://hbr.org/2013/05/why-the-lean-start-up- changes-everything/ar
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