1. Lean Canvas. 2. Validation. 3. Agile Software Development. 4. Alpha => MVP => v Early Adopters. 6. Launch Product

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The New Lean Way 1. Lean Canvas v1.2 Innovately 2017 Extreme Lean Startup for Developers Ashley Aitken ashley.aitken@innovately.com.au www.

Build next version, measure something, learn something 2 1 2 The Old Traditional Way Not really The Lean Way 1. Business Plan 2.

Agile Software Development 4. Alpha => MVP => v1.0 5. Early Adopters Faux Lean Approach 7.

Build next version, Measure something, Learn something 4 3 4 Types of Innovation Implications of Lean Startup Incremental Disruptive Radical Lean

1 The New Lean Way 1. Lean Canvas v1.2 Innovately 2017 Extreme Lean Startup for Developers Ashley Aitken 2. Validation 3. Agile Software Development 4. Alpha => MVP => v Early Adopters 7. Build next version, measure something, learn something The Old Traditional Way Not really The Lean Way 1. Business Plan 2. Market Research 3. Waterfall Development 4. Alpha => Beta => v Private Beta Testers 1. Lean Canvas 2. Validate Solution 3. Agile Software Development 4. Alpha => MVP => v Early Adopters Faux Lean Approach 7. Build next version, get some feedback, learn something 3 7. Build next version, Measure something, Learn something Types of Innovation Implications of Lean Startup Incremental Disruptive Radical Lean Startup is radical innovation of Startup for Software Developers 6 Overview Introduction and Overview Traditional vs Lean Startups Implications for Developers Summary Q & A Experience in Lean Startup Since 2010 Lean Startup Perth Steve Blank Workshop Coached and Mentored Startups Practice Lean Startup with Customer Development

in companies of all sizes, in all sectors and all stages of maturity (including startups).

because the product cannot be built but because the business model isn t repeatable, the business model isn t scalable,

11 12 11 12 What often happens after launch? So what do traditional startups do? 1. Lean Canvas 2. Validation 3.

2 Innovately.com.au Applying the principles and practices of Lean Startup and Customer Development to the commercialisation of innovation in companies of all sizes, in all sectors and all stages of maturity (including startups). Services include: TRADITIONAL STARTUPS 1. Training Courses - Lean Commercialisation 2. Accelerator Programme 3. Practice Group 4. Consulting.com.au Traditional Startup Approach From Concept to Prototype From Prototype to Product Most startups fail not because the product cannot be built but because the business model isn t repeatable, the business model isn t scalable, the business model isn t viable, not enough customers want it! They run out of money! What often happens after launch? So what do traditional startups do? 1. Lean Canvas 2. Validation 3. Agile Development 4. Alpha => MVP => v Early Adopters 7. NOTHING HAPPENS 13 Features Build the missing features into product or service Few people use the product or service PR Ask customers what features are missing PR If you build it they will come Focus too much on product! Field of Dreams 15 The question IS NOT can you build it? The question IS should you build it?

Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?

What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What Key Resources do our Value Propositions require?

What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? For what value are our customers really willing to pay?

What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established?

How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines?

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.

3 Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Day Month Year No. The Experts LEAN STARTUPS 17 Eric Ries Steve Blank Lean Startup with Customer Development What is the product? The product is not the Product. The product is the Business Model Business Model Canvas A startup is not a smaller version of a large company. - Steve Blank Lean Startup Strategy Definition - Startup A startup is a temporary organisation searching for a repeatable and scalable business model. - Steve Blank 23 Search vs Execution

What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model?

Which ones are most cost-efficient? How are we integrating them with customer routines? For whom are we creating value? Who are our most important customers?

0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Day Month Year No.

4 Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? What value do we deliver to the customer? Which one of our customer s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? For whom are we creating value? Who are our most important customers? This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Day Month Year No. The most important thing in a startup is not the idea but how well the team can EXECUTE SEARCH Business Model Canvas HYPOTHESES Build-Measure-Learn Hypothesise-Build-Measure-Learn 1. HYPOTHESIS 4. VALIDATED LEARNING INSIGHTS? PIVOT? 2. MINIMUM VIABLE PRODUCTS (MVPs) 3. RUN EXPERIMENTS TO COLLECT DATA 27 Evidence-Based Entrepreneurship Lean Process Get Out Of The Building! 29 First BMC Experiment for Valid. Learn. Launch & Scale The true measure of progress of a startup is the amount of validated. customers. revenue. traction. learning. Benefits of Lean Approach Minimise waste Money Time & Effort Less likely to fail More agile and adaptive

Lean Startup in the Enterprise IMPLICATIONS FOR DEVELOPERS 33 34 33 34 Lean Startup Process Understand Lean Startup Customer Development & Agile Development 35 vs.

learning 36 36 Build Experiments not a Product Elevator pitch Design Experiments Concierge MVP As quickly and cheaply as possible With as little code as possible (preferably none) The goal is to

5 Lean Startup in the Enterprise IMPLICATIONS FOR DEVELOPERS Lean Startup Process Understand Lean Startup Customer Development & Agile Development 35 vs. Product Management & Agile or Waterfall Development 35 Do NOT focus on: product development executing and scaling shiny things DO focus on: customer development searching for business model validated learning Build Experiments not a Product Elevator pitch Design Experiments Concierge MVP As quickly and cheaply as possible With as little code as possible (preferably none) The goal is to validate hypotheses not to build the best product! Diagram Brochure Wireframe Explainer video Interviews and surveys Wizard of Oz MVP Buy button (non-functional) Functional MVP Crowd funding campaign Selling for $ 37 Landing page Who does the development? [FOR FOUNDERS] Don t outsource development (e.g. to build the product or service) Use inhouse or closely managed remote developers Technical Debt? Technical co-founder essential for Lean Startup

6 Definition - Technical Debt The eventual consequences of any (bad) system design, software architecture, or software development within a codebase. Technical Debt - OK! Experiments $$$$$ The best debt is $$$$$ debt you don t have to repay! Technical Debt - NOT OK! Experimental Infrastructure Core Application Code Continuous Delivery Experiment Support Tools and Infrastructure Feature Flags / Toggles Frameworks for Experiments Essential part of Continuous Deployment Essential part of Lean Startup Examples FF4J, Togglz (JVM) Feature Switcher, Feature, (.NET C#) Code to help you run experiments (with cohorts of users) Frameworks for online field experiments Examples Facebook s PlanOut (for Java, Javascript, PHP, Go, Ruby, ) Cloudera s Gertrude (for Java, based on Google infrastructure) Data Collection and Analytics Crucial because the focus is on testing hypotheses with experiments Built-in to your architecture, e.g. EDA, CQRS, SUMMARY AND Q&A Add-on to your application, e.g. logging Dashboards, e.g. Kibana (from ELK stack)

7 S Summary Lean Startup is more than just a bit of validation and then build something and see what happens. Lean Startup is searching for a repeatable, scalable and viable business model. Lean Startup is a combination of Customer Development and Agile Development. Criteria for a Lean Startup 1. Focus on validated learning over and above everything else. 2. Running experiments with explicit hypotheses as quickly and cheaply as possible Lean Startup for Developers Focus on building experiments as quickly and cheaply as possible Less concern for technical debt in experiments than platform Use tools and libraries to assist experimentation and analysis Get out of the building (literally and by tracking users)!? Thank You To get a copy of the Lean Startup Summary Sheet Signup for Innovately Newsletter Extreme Lean Startup for Developers Ashley Aitken ashley.aitken@innovately.com.au THE END

Lean startup in ehealth

Lean startup in ehealth 5/2015 Pauliina Smeds, Forum Virium Helsinki Jaakko Ikävalko, Forum Virium Helsinki The lean startup model aims at increasing the odds for success for startups, by reducing the