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INTRODUCTION 3
Adrian Tan Lean Startup Coach, JFDI Asia Founded 2 startups Founder Institute/JFDI Alumni Coached hundreds of startups across Asia
WELCOME TO OUR VERY FIRST
GETTING TO KNOW YOU
Average lifespan has decreased from 61 years in 1958 to 18 years today
BIG COMPANY CHURN
Source: Upfront Ventures
COST OF HOSTING
Asean Economic Community (AEC)
Combined GDP of US$2.6 trillion (2014)
4th Largest single market after EU, USA
and China (projected 2030)
5% Annual Growth
(EU 2%)
Foreign Revenue by top 1000 companies in
ASEAN
$149.9 billion in 2011 to $223.9 billion last year
(EU 2%)
Young population
Half below 28.8 years of age
China: 40.8 EU: 42.1
27 % of Singapore’s
Direct Investment
OPPORTUNITIES
http://www.straitstimes.com/asia/se-asia/economics-of-asean-community
GDP per Capita of richest member is
76 times larger than the poorest's
Population of largest country is
600 times the smallest
Uncertainties and Inconsistencies ● Political
● Economic
● Legal
Protectionist sentiment in some member countries
Equity Limitations
http://www.straitstimes.com/asia/se-asia/economics-of-asean-community
CHALLENGES
Customer Discovery Customer Validation
Customer Creation Company Building
Startups Agile, Nimble, Fail Fast
Corporations Scale, Leverage, Distribution, Can’t Fail
Startups Corporations Minimize Risks
Maximize Opportunity
NEW “SCIENCE” OF STARTUPS
3
17
9 IN 10 STARTUPS FAIL
2
2
UNCERTAINTY
2
The Waterfall Approach
1)Assumed Customers’ Needs
2) Focus on Debugging
3) Product ships late
Lean Startup 2
BUILD
MEASURELEARN
1. Understands potential customer’s needs and challenges
2. Focus on validated learning
3. Minimal Viable Product gets shipped quickly
Lean Startup 2
BUILD
MEASURELEARN
IDEAS
CODE
DATA
23
Source: “The Lean Enterprise” Trevor Owens/Obie Fernandez
$40 Billion
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THE LEAN ENTERPRISEIncubate EarlyAcquire EarlyInvest Early
25
HOW BIG COMPANIES INNOVATE
Skunkworks R&D ● Lockheed Martin, 3M,
Intel, AWS ● Waterfall style- slow to
market ● Not conducive to
disruptive innovation ● Insufficient for
unpredictable market shifts and competition
Intrapreneurship ● Aims to commercialize employee ideas ● Widely publicized to boost employee
morale and promote innovation ● Waterfall style- slow to market ● Tend to be driven by existing business
units rather than disruptive innovation ● Internal politics may be an issue ● Qualcomm Venture Fest ● Employees didn’t know how to move
projects forward
Intrapreneurship ● Aims to commercialize employee ideas ● Widely publicized to boost employee
morale and promote innovation ● Waterfall style- slow to market ● Tend to be driven by existing business
units rather than disruptive innovation ● Internal politics may be an issue ● Qualcomm Venture Fest ● Employees didn’t know how to move
projects forward
Innovation Labs ● “Start-up style” for salaried
employees ● Not equipped to scale their
successes ● Mercy at the quarterly budgets ● Budgetary and political pressure
for promising projects ● Xero PARC
Hackathons ● Events ● Morale-booster ● Short term ● No real products
Innovation Colony ● Corporate accelerators ● Separate locations ● Lean (small) budgets ● Fast to ship ● Market Valuation ● Skin in the game
(equity)
Source: Lean Enterprise by Trevor Owen
A Start-Up is human institution designed to create a new product or service under conditions of extreme
uncertainty -Eric Ries
“The Lean Startup”
33
DiscoverValidate
Accelerate
Problem-Solution Fit
Product- Market Fit
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DiscoverValidate
Accelerate
Problem-Solution Fit
Product- Market Fit
IdeateProblem
Discovery
● What if it FAILS? ● What if it takes too long to make money? ● How am I to account for my employees
time?
BUT!
Measure Innovation NOT Revenue
● Experiments made ● Assumptions tested ● Customer Development ● Prototypes developed ● Professional Development ● Employee Morale
$50k, 3 months 100 customer interviews
5 prototypes Startup Business
$10 million 2 years
3 productsvs
INNOVATION ACCOUNTING
How GE does LEAN
https://www.youtube.com/watch?v=nhmQNW1mkSk&feature=youtu.be&t=12m23s
Q&A16
