Lean Startup With Rob Kunz
- 1. Lean Startup Practices and Application More startups fail from a lack of customers than from a failure of product development... @robbkunz http://about.me/robbkunz
- 2. My Lean Startup Background Started Back in 1991: RAD / JAD / 4GL / CASE / LINCII Founded KnowledgeBlue in 2002: Open Source Systems Integrator and Software-as-a-Service / Cloud Services Company; 800 Clients, 25K Users; ---> 15 Lean Startup Companies / Projects Founded ventureblue Capital in 2007: High Tech, Early-stage Investment Firm applying Lean Startup to Investment Portfolio Companies ---> 7 out of 14 Investments are Lean Startups Founded BoomStartup in 2010; Mentorship-driven Seed Accelerator ---> 5 out of 10 Companies utilized Lean Startup
- 3. What Is Lean Startup? Lean, in sense low-burn...with much less waste Startup, a set of processes and tools used by entrepreneurs to develop products and markets An application of Lean Thinking...Toyota Active Evangelists Eric Ries and Steve Blank
- 4. Latest Thinking....and Experiments Expand beyond Product Development into: - Lean Business Modeling (Bus. Model Validation) - Lean Marketing - Lean Support (Crowd Sourcing) Expand into other industry segments; Consumer Products and Light Manufacturing Developing Community-based lean artifacts, best practices, tools and techniques
- 5. Trends & Drivers of Lean Startup Open Source and Free Software Development: LAMP, Testing, Widgets Business Applications: CRM, ERP, BI, VOIP Development Processes and Tools Agile / Scrum / Customer Development Minimal Viable Product (MVP) Cloud Services and Virtualization IaaS, PaaS and SaaS
- 7. Idea The “Old Way” Business Plan Func. Spec Some Learning Design Build More Learning Test Market Sell Most Learning
- 8. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
- 9. key value customer activities proposition relationships key customer partners segment s cost revenue structure key streams resources channels 4/6/11 30 images by JAM
- 10. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done? 4/6/11
- 11. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care? 4/6/11
- 12. CHANNELS how does each customer segment want to be reached? through which interaction points? 4/6/11
- 13. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive? 4/6/11
- 14. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues? 4/6/11
- 15. KEY RESOURCES which resources underpin your business model? which assets are essential? 4/6/11
- 16. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 4/6/11 14
- 17. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on? 4/6/11
- 18. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs? 4/6/11
- 21. Tricks & Traps for Business Model Try mobilize a Mentor to help facilitate discussions Bring all founders / key players together in person Limit sessions to 2 hours max, Plan 3 x 2hrs Leverage online tools for easy access & updates Produce several poster size prints for awareness “Get out of the Office” To Validate the model Test it on Companies that are already operating Capture Requirements Backlog During Sessions
- 22. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
- 23. Minimal Viable Product (MVP)
- 24. Agile Development Values Individuals and interactions over processes / tools Working software over comprehensive documents Customer collaboration over contract negotiation Responding to change over following a plan
- 27. Measure Your Burndown: Daily
- 28. RallyDev: Automated Scrum Tools
- 29. Idea? The “New” Way Market Sizing Minimal Business Viable MVP MVP Model Product for for Generation / (MVP) Adoption Revenue Validation Usage 3-5 Clients Month 1 Month 2, 3 & 4 Month 5 Month 6
- 32. Lean Startup Lessons Learned Many talk about it, few can really execute it... Cross Team Trainingg is a Critical Success Factor (CSF) MVP tends to ignore architecture and scalability It is difficult to find Clients who want to be on your MVP / Early Adoption team...many say they will, few do It's easy to let MVP become single Customer centric Measure, Measure and Measure
- 33. Key Resources Alex Osterwalder Steve Blank http://www.businessmodelgeneration.com/ http://steveblank.com/ http://boomstartup.com/ Eric Ries Taking Company Applications Now Summer 2011 Program – 3 Months http://www.startuplessonslearned.com/ ------------- Apply Online ------------