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![Validated
Learning
• Validated
learning
about
customers
is
the
measure
of
progress
in
a
Lean
Startup
–
not
lines
of
working
code
or
achieving
product
development
milestones.
• Process
in
which
one
learns
by
trying
out
an
ini&al
idea
and
then
measuring
it
to
validate
the
effect.
Each
test
of
an
idea
is
single
itera&on
in
a
larger
process
of
many
itera&ons
whereby
something
is
learnt
and
the
lessons
applied
to
the
succeeding
tests.[1]
• Typical
steps
in
validated
learning:
– Specify
a
goal
– Specify
a
metric
that
represents
the
goal
– Act
to
achieve
the
goal
– Analyze
the
metric
-‐
did
you
get
closer
to
the
goal?
– Improve
and
try
again](https://image.slidesharecdn.com/demystifyingleanstartups-130704232526-phpapp02/75/Demystifying-Lean-Startups-22-2048.jpg)
![Innova&on
Accoun&ng
• Enables
startups
to
prove
objec&vely
that
they
are
learning
how
to
grow
a
sustainable
business
– Use
an
MVP
to
establish
real
data
on
where
the
company
is
right
now
– Startups
must
aempt
to
tune
the
engine
from
the
baseline
toward
the
ideal.
This
could
take
many
aempts.
– Pivot
or
persevere
• Ac&onable
vs.
Vanity
Metrics
– For
a
report
to
be
considered
ac&onable,
it
must
demonstrate
clear
cause
and
effect.
Otherwise,
it
is
a
vanity
metric.
– Ac&onable
metrics
can
lead
to
informed
business
decisions
and
subsequent
ac&on.[24][1]
These
are
in
contrast
to
'vanity
metrics'
-‐
measurements
that
give
“the
rosiest
picture
possible”
but
do
not
accurately
reflect
the
key
drivers
of
a
business.](https://image.slidesharecdn.com/demystifyingleanstartups-130704232526-phpapp02/75/Demystifying-Lean-Startups-23-2048.jpg)
Uploaded byDr. Tathagat Varma
Demystifying Lean Startups
The document discusses the lean startup model, emphasizing its scientific approach to creating and managing startups under conditions of extreme uncertainty. It highlights the importance of validated learning, customer feedback, and iterative design over traditional methods, arguing that startups should focus on experimentation and minimal viable products (MVPs). Additionally, it critiques common practices in startups and outlines how the lean methodology can lead to more sustainable business growth.
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Demystifying Lean Startups
- 1. Demys&fying Lean Startups Tathagat Varma
- 2. Discussion Points Challenges with tradi&onal startups and NPD The Lean Startup Model, Principles and Methods Does it work for New Product Development? Case Studies
- 3. Once upon a &me…
- 4. Welcome to the Bold New World! “AJer about a week of coding, Zuckerberg launched thefacebook.com last Wednesday aJernoon. The website combines elements of a standard House face book with extensive profile features that allow students to search for others in their courses, social organiza&ons and Houses. “Everyone’s been talking a lot about a universal face book within Harvard,” Zuckerberg said. “I think it’s kind of silly that it would take the University a couple of years to get around to it. I can do it be-er than they can, and I can do it in a week.” As of yesterday aJernoon, Zuckerberg said over 650 students had registered use thefacebook.com. He said that he an&cipated that 900 students would have joined the site by this morning. “I’m prey happy with the amount of people that have been to it so far,” he said. “The nature of the site is that each user’s experience improves if they can get their friends to join it.” hp://www.thecrimson.com/ar&cle/2004/2/9/hundreds-‐register-‐for-‐new-‐facebook-‐website/#
- 5. Ok, I have an idea…a BIG idea!!! How should I proceed?
- 6. I could do… OR Dot-‐com-‐era style “Stealth Mode” Startup Cowboy style “Just Do It” Startup
- 7.
- 10. hp://www.emilianosoldipmp.info/wp-‐content/uploads/2012/08/Stacey.png That’s the problem we need to solve! And these are the methods we are using!!!
- 11. Lean Startup Model • The Lean Startup provides a scien=fic approach to crea&ng and managing startups and get a desired product to customers' hands faster. The Lean Startup method teaches how to drive a startup-‐how to steer, when to turn, and when to persevere-‐and grow a business with maximum accelera&on. It is a principled approach to new product development. • Lean Startup favors – experimenta=on over elaborate planning, – customer feedback over intui&on, and – itera=ve design over tradi&onal ‘big design up front’ development
- 12. What’s a Startup? “A startup is a human ins.tu.on designed to create a new product or service under condi.ons of extreme uncertainty” The products a startup builds are really experiments; the learning about how to build a sustainable business is the outcome of those experiments.
- 13. Lean Startup Principles Entrepreneurs are everywhere Entrepreneurship is management Validated Learning Build-‐Measure-‐Learn Innova&on Accoun&ng
- 15.
- 17. GET OUT OFTHE BUILDING…
- 18. Minimize TOTAL =me through the loop Instead of making complex plans that are based on a lot of assump&ons, you can make constant adjustments with a steering wheel call the Build-‐ Measure-‐Learn feedback loops. Through this process of steering, we can learn when and if it’s &me to make a sharp turn called a pivot or whether we should persevere along the current path The MVP is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort or development &me. The MVP lacks many features that may prove essen&al later on. MVP is not a minimal product!
- 21.
- 22. Validated Learning • Validated learning about customers is the measure of progress in a Lean Startup – not lines of working code or achieving product development milestones. • Process in which one learns by trying out an ini&al idea and then measuring it to validate the effect. Each test of an idea is single itera&on in a larger process of many itera&ons whereby something is learnt and the lessons applied to the succeeding tests.[1] • Typical steps in validated learning: – Specify a goal – Specify a metric that represents the goal – Act to achieve the goal – Analyze the metric -‐ did you get closer to the goal? – Improve and try again
- 23. Innova&on Accoun&ng • Enables startups to prove objec&vely that they are learning how to grow a sustainable business – Use an MVP to establish real data on where the company is right now – Startups must aempt to tune the engine from the baseline toward the ideal. This could take many aempts. – Pivot or persevere • Ac&onable vs. Vanity Metrics – For a report to be considered ac&onable, it must demonstrate clear cause and effect. Otherwise, it is a vanity metric. – Ac&onable metrics can lead to informed business decisions and subsequent ac&on.[24][1] These are in contrast to 'vanity metrics' -‐ measurements that give “the rosiest picture possible” but do not accurately reflect the key drivers of a business.
- 24.
- 25.
- 26.
- 28. Products and Services that have benefited from Lean Startup
- 29. Conclusions Complex solu&ons need feedback-‐based adap&ve approach Managing a ‘startup’ successfully requires early valida=ons on key hypotheses Lean Startup model offers an integrated approach to solve complex problems in an uncertain environment
- 30. References • hp://theleanstartup.com/#casestudies • hp://agbeat.com/entrepreneur/why-‐11-‐out-‐of-‐every-‐12-‐startups-‐fails/ • hp://techcrunch.com/2011/09/13/instagram-‐and-‐intuit-‐founders-‐discuss-‐lean-‐ startups-‐pivots-‐and-‐what-‐makes-‐a-‐product-‐successful/ • hp://www.forbes.com/sites/hbsworkingknowledge/2013/02/25/lean-‐startup-‐ strategy-‐not-‐just-‐for-‐startups/ • hp://steveblank.com/ • hp://www.startuplessonslearned.com/2009/04/validated-‐learning-‐about-‐ customers.html • hp://www.startuplessonslearned.com/2008/09/lean-‐startup.html • hp://www.startuplessonslearned.com/2008/11/what-‐is-‐customer-‐ development.html • hps://en.wikipedia.org/wiki/Validated_learning • hp://www.ashmaurya.com/2010/04/3-‐rules-‐for-‐building-‐features-‐in-‐a-‐lean-‐ startup/ • hp://www.ashmaurya.com/2011/06/your-‐product-‐is-‐not-‐the-‐product/ • hp://www.ashmaurya.com/2009/11/achievingproductmarkeuit/