the lean startup model
TRANSCRIPT
November 2016 Download this file at <http://files.academicvc.com>
Con
tent
s ©
201
6, B
oost
phas
e LL
C. A
ll ri
ghts
res
erve
d.
Boos
tpha
se ®
is a
reg
iste
red
trad
emar
k of
Boo
stph
ase
LLC
Boostphase®
Stephen Fleming
[email protected] @stephenfleming
1
The Lean Startup Modelboostphase (büst´fāz), n., 1. The first phase of a spacecraft’s trajectory, from launch until it ceases to accelerate under its own power.
Usage: Small changes to the trajectory during boostphase will have major influences on the ultimate position and velocity of the spacecraft, determining success or failure of the mission.
November 2016 © 2016 by Boostphase LLC. All rights reserved. 2
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved.
11 years as Vice President, Georgia Institute of Technology.
20+ years venture capital experience. – General Partner, Alliance Technology Ventures
(affiliated with Georgia Research Alliance). – 18 investments as lead investor.
– 12 profitable exits including 4 IPOs, $650M acquisition. – Original investor, Seraph Group.
3
About Me
November 2016 © 2016 by Boostphase LLC. All rights reserved.
15 years operational experience: - AT&T Bell Labs
Early optical fiber development. - Nortel
Supervised startups developing first ADSL modem and one of the first cablemodems in early 1990s.
- LICOM (venture-backed telecom equipment startup).
BS, Physics, Georgia Tech (Highest Honors).
4
About Me (2)
November 2016 © 2016 by Boostphase LLC. All rights reserved. 5
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved. 7
Business Model Canvas
Adapted from Business Model Generation by Alexander Osterwalder and Yves Pigneur
November 2016 © 2016 by Boostphase LLC. All rights reserved. 8
Business Model Canvas
The rationale of how an organization creates, delivers, and captures value.
November 2016 © 2016 by Boostphase LLC. All rights reserved. 10
Structure of the Canvas
Feasibility Desirability
November 2016 © 2016 by Boostphase LLC. All rights reserved. 11
Structure of the Canvas
Feasibility Desirability
Viability
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Managing (or investing) in a lean startup model shares a lot of questions with basic journalism.
12
Lean Startup Operations
November 2016 © 2016 by Boostphase LLC. All rights reserved. 13
The Canvas is a Place for Answers
Who?
What?
Where?When?
Why?
How?
Who? How?
Who?Who?
What?
How? When?
When?
Where?
Who?
Who?
Why?
November 2016 © 2016 by Boostphase LLC. All rights reserved.
The scientific method applies to business!
14
Turning Guesses into Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Make a hypothesis about one element of your business model canvas.
15
Testing Hypotheses
???
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Develop a controlled experiment to test that hypothesis.
16
Testing Hypotheses
???
November 2016 © 2016 by Boostphase LLC. All rights reserved. 17
Now…
Face
-to-Fa
ce
Videoconfere
nce
Phone CallEmail
Email Surve
y
Effectiveness
November 2016 © 2016 by Boostphase LLC. All rights reserved. 18
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Conduct that experiment against real-world customers of your product or service.
19
Testing Hypotheses
Don’t sell!
???
November 2016 © 2016 by Boostphase LLC. All rights reserved.
“If it disagrees with experiment, it’s wrong… It doesn’t make any difference how beautiful your guess is, it doesn’t matter how smart you are, or who made the guess… If it disagrees with experiment, it’s wrong.”
—Richard Feynman20
The Value of Experiments
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Congratulations! You have learned something.
21
Testing Hypotheses
???Fact!
Now, do it again.
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Do this over 100 times.
22
The Big Secret...
(Really.)
November 2016 © 2016 by Boostphase LLC. All rights reserved.
“A man who carries a cat by the tail learns something he can learn in no other way.”
—Mark Twain
23
There Is No Substitute!
November 2016 © 2016 by Boostphase LLC. All rights reserved.
“I find out what the world needs. Then I go ahead and try to invent it.”
—Thomas Edison
24
We Knew This Before...
November 2016 © 2016 by Boostphase LLC. All rights reserved. 25
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved.
• Minimum Viable Products (MVP)
• Build-Measure-Learn • A/B testing • Key Performance Indicators
(KPI) • Continuous deployment • Rapid iteration / pivoting
26
Lean Startup Operations
November 2016 © 2016 by Boostphase LLC. All rights reserved.
“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank
27
Rapid Iteration / Pivoting
? ? ?
Search Execution
Discover Validate Create Build
November 2016 © 2016 by Boostphase LLC. All rights reserved.
“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank
28
Rapid Iteration / Pivoting
? ? ?
Search Execution
Discover Validate Create Build
November 2016 © 2016 by Boostphase LLC. All rights reserved. 29
Investment Timing
? ? ?
Search Execution
Discover Validate Create Build
Seed Series A Series B
November 2016 © 2016 by Boostphase LLC. All rights reserved. 30
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 © 2016 by Boostphase LLC. All rights reserved. 32
What Worked in the Valley?
H-P’s iconic birthplace.
November 2016 © 2016 by Boostphase LLC. All rights reserved.
Free markets Availability of capital Intellectual property protection Collaborative culture & social networks Flexible career paths Welcoming to outsiders & immigrants Meritocratic advancement Acceptance of failure as learning experience Continuous replenishment Of bright young people Of interesting new technologies
33
What Worked in the Valley?
November 2016 © 2016 by Boostphase LLC. All rights reserved. 35
Agenda
Introduction
The Business Model Canvas
Customer Discovery Process
Lean Startup Operations
Lessons from Silicon Valley
Questions and Answers
November 2016 Download this file at <http://files.academicvc.com>
Con
tent
s ©
201
6, B
oost
phas
e LL
C. A
ll ri
ghts
res
erve
d.
Boos
tpha
se ®
is a
reg
iste
red
trad
emar
k of
Boo
stph
ase
LLC
Boostphase®
Stephen Fleming
[email protected] @stephenfleming
36
The Lean Startup Modelboostphase (büst´fāz), n., 1. The first phase of a spacecraft’s trajectory, from launch until it ceases to accelerate under its own power.
Usage: Small changes to the trajectory during boostphase will have major influences on the ultimate position and velocity of the spacecraft, determining success or failure of the mission.