Building a successful MVP

My presentation at the 1st German Lean Startup Machine event in Munich: "Building a successful MVP".

Transcript

1. @ideasenabled | ideasenabled.com | LinkedIn
   Building a successful MVP
   Christian Kählig
   Managing Partner, Ideas Enabled GmbH
   Accelerated Innovation Development
   

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2. © 2012 Ideas Enabled GmbH 2
   Startups
   3 yrs
   Consulting
   7 yrs
   Corporate
   6 yrs
   Accelerating Innovation
   WestWing
   Chuisy
   Coaching
   People
   Method
   Tools
   Business & Computer Science
   Lean Startup Research (eBook) & Practice 2010
   Exec MBA in Innovation & Business Creation 2011
   2012
   1996
   Me
   

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3. © 2012 Ideas Enabled GmbH
   What you will learn today
   What is it?
   What types?
   What to test?
   Samples & tactics
   Individual assessments
   MVP
   

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4. © 2012 Ideas Enabled GmbH
   Start with the right questions in mind
   

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5. © 2012 Ideas Enabled GmbH 5
   The big question: should it be built?
                                                                      
    
    
   Source: www.blacksocks.com
   Blacksocks App matches your socks
   

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6. © 2012 Ideas Enabled GmbH 6
   Ensure you can answer 3 basic questions
   Do you have a problem worth solving?
   Is the problem really big enough?
   How do you know?
   The Lean Startup approach helps you with that
   

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7. © 2012 Ideas Enabled GmbH 7
   Accelerated learning
   Content source: (c) Eric Ries - startuplessonslearned.com
   IDEAS
   DATA PRODUCT
   MEASURE
   LEARN BUILD
   Minimize the
   total time through
   the loop
   The principles are simple, following them is hard
   

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8. © 2012 Ideas Enabled GmbH 8
   Learn before you build
   MEASURE
   IDEAS
   DATA PRODUCT
   Content source: Modified, based on (c) Eric Ries - startuplessonslearned.com
   Experiments
   What learning?
   What measure?
   What to build?
   LEARN BUILD
   

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9. © 2012 Ideas Enabled GmbH
   The MVP defined
   

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10. © 2012 Ideas Enabled GmbH 10
    The MVP: a prototype optimized for learning
    The minimum amount of effort you have
    to do to complete exactly one turn of
    the Build-Measure-Learn feedback loop.
    - Eric Ries -
    

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11. © 2012 Ideas Enabled GmbH 11
    Three main drivers
    Learning
    Speed
    Cost
    

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12. © 2012 Ideas Enabled GmbH 12
    Validated Learning through experiments
    Minimum viable product
    > actionable
    > timeboxed
    > additive
    experiment
    > falsifiable
    

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13. © 2012 Ideas Enabled GmbH 13
    Validated Learning
    Meets success criterion
    “Signal”
    “Foaming at the mouth”
    

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14. © 2012 Ideas Enabled GmbH
    When to start testing
    

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15. © 2012 Ideas Enabled GmbH
    Customer
    Problem
    Assumption
    Assumption
    Assumption
    Assumption
    Assumption
    Assumption
    Riskiest
    Assumption
    Different
    Customer
    Same
    Problem
    15
    Source: Lean Startup Machine (CC License)
    Method
    Minimum
    Success
    

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16. © 2012 Ideas Enabled GmbH
    Types of MVP
    

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17. © 2012 Ideas Enabled GmbH 17
    There is no one-size-fits-all MVP
    Tailored to your business model
    Optimized for learning
    Minimum and viable
    

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18. © 2012 Ideas Enabled GmbH 18
    The LSM recommends three types of MVP
    MVP Stages
    Focus
    Exploration Pitch Concierge
    Problem Solution Experience
    Opportunity Cost
    Tactics Customer Scene
    Doppelganger
    Conversation
    Menu
    Decreasing Discount
    Innovator
    Better Alternative
    Meta
    One Use Case
    Real life simulation
    

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19. © 2012 Ideas Enabled GmbH
    Problem EXPLORATION
    

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20. © 2012 Ideas Enabled GmbH 20
    Early adopter has 3 typical characteristics
    Confirms the problem
    Actively looks for workarounds or solutions
    Forgives early stage issues
    

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21. © 2012 Ideas Enabled GmbH 21
    Problem exploration defined
    An interaction focused on the
    customer’s problems to understand
    past behavior and urgency.
    - LSM -
    

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22. © 2012 Ideas Enabled GmbH 22
    Scene of the customer
    Image source: unknown
    

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23. © 2012 Ideas Enabled GmbH 23
    Doppelganger
    Check your competition: Customers? Paying? Roadblocks?
    Image sources: (Obama) (c) the guardian.co.uk, Photo: Reuters; (Merkel) (c) Radio Hamburg
    

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24. © 2012 Ideas Enabled GmbH 24
    Conversation starter
    Early
    Adopter
    Dating
    Image source: (c) CafePress - http://www.cafepress.com/abyss2hope.60724392#
    

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25. © 2012 Ideas Enabled GmbH 25
    Menu of features
    Fake
    Features
    Image source: (c) The Wave’s Winter Feature Menu
    

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26. © 2012 Ideas Enabled GmbH
    Solution PITCH
    

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27. © 2012 Ideas Enabled GmbH 27
    Solution pitch defined
    Pitch Customer
    Currency
    Solution for the
    Customer
    Entrepreneur
    @ t $ w
    ( )
    Source: Lean Startup Machine (CC License)
    

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28. © 2012 Ideas Enabled GmbH 28
    Decreasing Discount
    Discount
    Time
    New sales
    1st sale
    Invalidation Discount rejected
    ...
    

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29. © 2012 Ideas Enabled GmbH 29
    Productize Innovator & Early Adopter tactics
    Innovator /
    Early
    Adopter
    +
    +
    Workaround / Solution
    Part 1
    Part 2
    ...
    

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30. © 2012 Ideas Enabled GmbH 30
    Better Alternative
    Market Leader Solution
    Customer
    Entrepreneur
    +
    

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31. © 2012 Ideas Enabled GmbH 31
    Meta
    Magic Wand Solution
    Early
    Adopter
    Listen to the customer but don’t necessarily do what they say
    

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32. © 2012 Ideas Enabled GmbH
    CONCIERGE
    

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33. © 2012 Ideas Enabled GmbH 33
    Concierge defined
    The Turk
    Image sources: (1) Chessgames.com; (2) (c) Karl Gottlieb von Windisch’s 1783 book; (3) TwistedPhysics.com
    

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34. © 2012 Ideas Enabled GmbH 34
    Manually delivering on the solution,
    as a service to the customer, to see if
    the delivery matches the customer’s
    expectations and makes them happy.
    - LSM -
    Concierge defined
    

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35. © 2012 Ideas Enabled GmbH 35
    One use case
    Solution
    

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36. © 2012 Ideas Enabled GmbH 36
    Real life simulation
    Image source: Road to Virtual Reality blog (roadtovr.com)
    

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37. © 2012 Ideas Enabled GmbH
    Make sure you have a
    PROBLEM
    worth solving!
    Start with testing your riskiest assumption
    

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38. © 2012 Ideas Enabled GmbH
    Try to reach
    PROBLEM / SOLUTION FIT
    Start with testing your riskiest assumption
    related to the solution
    

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39. @ideasenabled | ideasenabled.com | LinkedIn
    Get the 1st completed research study
    on The Lean Startup approach at
    eBook
    facebook.com/ideasenabled
    Accelerated Innovation Development
    Paperback
    

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