lean innovation - increase success rate of startups

Norbert Zeller

Buchs, 7. April 2016

Lean Innovation“Increase Success Rate of Startups”

Mit agilen MethodenZeit und Kosten

halbieren

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Keep in mind

Don’t sell the products you can build

Build the products you can sell

Life is too short to build things nobody wants

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Norbert Zeller, norbert@pragmatic-solutions.ch, +41 79 402 74 59

• EE FH, MoM MZSG• Management Teams in various functions• Partner at Trivadis AG• StartAngels member• Board member• Entrepreneur• Agile executive coach at pragmatic solutions

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Wer steht hinter pragmatic solutions?

• pragmatic solutions umfasst die beiden Geschäftsfelder Business Transformation und Business Innovation und unterstützt Unternehmen dabei, flexiblere Strukturen aufzubauen und Innovationen schneller umzusetzen. Seit der Gründung 2006 durch Mischa Ramseyer hat sich pragmatic solutions zu einem führenden Anbieter für sogenannte agile Dienstleistungen in der Schweiz entwickelt. Zu den Kunden gehören bisher u.a. international tätige Schweizer Banken, Versicherungen, ein Medienkonzern, High Tech Unternehmen sowie eines der grössten Transportunternehmen. In dem Glauben, dass agile Unternehmen mit begeisterten Mitarbeitenden und einer anpassungsfähigen Organisation am erfolgreichsten sind, steht pragmatic solutions für einen Wandel im Management.

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Goal: To improve the Success Rate

Source: Ash Maurya «Running Lean»

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• 66% of successful Startups significantly change original business idea

• “wrong” product and “premature” scaling

• 9/10 failing

10. März. 2015

Traditional versus Lean

Source: Ash Maurya: Running Lean

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Goal of Lean Innovation Framework

Finding a business model, which is

• profitable

• repeatable

• scalable

or let the Startup die and start a new one

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Lean Innovation Framework

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How?

ScaleProduct Market

fit

Problem Solution

fit

Qualitative Validation

Quantitative Validation

Is Business Model profitable, repeatable and scalable?

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By iterating Lean Canvas Ideas with Build-Measure-LearnFeedback Loop through 3 stages until we reach:

Problem/Solution Fit, Prod/M-Fit?

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See: http://practicetrumpstheory.com/2012/02/why-lean-canvas/

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Where is the risk?

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BML Feedback loop

Design experiment

Proposal, Pretotype,Landing page, MVP …Results

Analyse results:persevere, pivotor quit?

weeks

not

years

Assumption/Hypothesis

Run experiment

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Source: Eric Ries: The Lean Startup

Types of experiments

4) Early version with minimal feature set that can be “sold” to early adopters

1) Proposal: a document describing the solution

3) Fake demo of any kind

2) Smoke Test: Landing Page to test interest

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MVP Definition

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The minimum viable product is that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on. Eric Ries

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Toyota in car entertainment system

Prototyped with android tablet

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https://youtu.be/78ajiBtkuQs

MVP Examples: GoPro

The first GoPro cameras used 35mm film and were strapped to a person’s wrist and only captured pictures of the ride.

Notice: the mvp addressed the same problem and customer segment as the later digital product.

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Minimal Viable Product

An MVP is NOT a crappy version of the final product.

The challenge is to achieve “minimal” and “viable”.

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Learning is hard and often frustrating

LEARN: … or pivot

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Experiment Report

Why is it relevant?

Quantify your goalsset scope/timebox

Plan how to executeexperiment

Results = Data

Document the learning (validated,invalidated or inconclusive)

Test value and growth hypothesis first

Move to next experiment

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Summary:Lean Innovation Framework

ScaleProduct Market

fit

Problem Solution

fit

Customer Discovery

Customer Validation

Customer Creation

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Each hypothesis is validated via an experiment with BML feedback loop

Is problem worth solving, are people willing to pay and is business model profitable, repeatable and scalable?

Hypotheses of plan A, B, C, … to Z

10. März. 2015

Combine “What?” with “How?”

ScaleProduct Market

fit

Problem Solution

fit

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More information

• HBS article „Why lean start up changes everything“www.steveblank.com

• Steve Blank: “Startup Owners Manual”

• Eric Ries: ”Lean start up“

• Ash Maurya: ”Running Lean”

• Alexander Osterwalder: “Business Model Generation”

• Brant Cooper: “Entrepreneurs Guide to Customer Development”

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The end

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