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LeanGDL 2014 - MVP porque debe importarnos

Manuel Vidaurre
September 28, 2014

LeanGDL 2014 - MVP porque debe importarnos

Taller de MVP

Manuel Vidaurre

September 28, 2014
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  1. MVP: Why we should care A very effective learning tool

    1 Manuel Vidaurre http://about.me/manuel.vidaurre [email protected]
  2. 2 passions: {:people, :value, :roi} skills: {:agiledev, :patterns, :cc, :pm,

    :ddd, :lean_startup, :software_c raftsmanship,}, programming_lang uages: {:ruby, :js, :coffescript, :elix ir}, :web: {:rails, :sinatra, :word_press}, tools: {:cucumber, :rspec, :git, :jquer y, :sql, :emberjs}, segments: {:health, :real_state, :gis, :re tail}
  3. @leangdl - Manuel Vidaurre - @mvidaurre What is the difference

    between successful ideas and failed ideas? 6
  4. 9

  5. 14

  6. 15

  7. @leangdl - Manuel Vidaurre - @mvidaurre Customers don’t care about

    your solution. They care about solving their problems 17
  8. @leangdl - Manuel Vidaurre - @mvidaurre Customers don’t care about

    your solution. They care about solving their problems 18 -G[EQPEGRVCPFVJGETWFGTGCNKV[
  9. 19

  10. 23

  11. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Work 10 minutes in groups • 3 minutes. Each

    team member will write in individual post-its as many problems worth to solve you can think (working in parallel)! • 5 minutes. Present the problems and organize them by groups (working together)! • 2 minutes. Select one group of the problems (achieve consensus) 24
  12. 25

  13. @leangdl - Manuel Vidaurre - @mvidaurre To VALIDATE your idea

    or to PIVOT to a successful idea you really need: 30
  14. @leangdl - Manuel Vidaurre - @mvidaurre Maximum amount of validated

    learning 32 VT[KPIQWVCPKPKVKCNKFGCCPFVJGP OGCUWTKPIKVVQXCNKFCVGVJGGHHGEV
  15. 33

  16. @leangdl - Manuel Vidaurre - @mvidaurre Be systematic about identifying

    riskiest assumptions 35 KPEQTTGEVRTKQTKVK\CVKQPQHTKUMKUQPG QHVJGVQREQPVTKDWVQTUQHYCUVG
  17. 36

  18. @leangdl - Manuel Vidaurre - @mvidaurre Be systematic about identifying

    riskiest assumptions 37 KPEQTTGEVRTKQTKVK\CVKQPQHTKUMKUQPG QHVJGVQREQPVTKDWVQTUQHYCUVG CRRN[6JGQT[QH%QPUVTCKPVU9JGTGKUVJG DQVVNGPGEMQTEQPUVTCKPVKPVJKUU[UVGO!
  19. 39

  20. @leangdl - Manuel Vidaurre - @mvidaurre Formulate testable falsifiable hypotheses

    40 #UVCVGOGPVKUECNNGFHCNUKHKCDNGKHKVKURQUUKDNG VQEQPEGKXGCPQDUGTXCVKQPQTCPCTIWOGPVYJKEJ RTQXGUVJGUVCVGOGPVKPSWGUVKQPVQDGHCNUG
  21. @leangdl - Manuel Vidaurre - @mvidaurre Formulate testable falsifiable hypotheses

    41 #UVCVGOGPVKUECNNGFHCNUKHKCDNGKHKVKURQUUKDNG VQEQPEGKXGCPQDUGTXCVKQPQTCPCTIWOGPVYJKEJ RTQXGUVJGUVCVGOGPVKPSWGUVKQPVQDGHCNUG %JCPIKPIC RCTCFKIO KUFKHHKEWNV
  22. 42

  23. @leangdl - Manuel Vidaurre - @mvidaurre Use MVP to prove

    or disprove your hypotheses 44 9JCVKU/82!
  24. 45

  25. @leangdl - Manuel Vidaurre - @mvidaurre What is MVP? 49

    PQV/QUV8CNWCDNG2NC[GT PQV/CZKOWO8KUKQP2QUUKDNG
  26. @leangdl - Manuel Vidaurre - @mvidaurre What is MVP? 50

    PQV/QUV8CNWCDNG2NC[GT PQV/CZKOWO8KUKQP2QUUKDNG ;'5/KPKOWO8KCDNG2TQFWEV
  27. – Eric Ries. Creator of Lean Startup “The minimum amount

    of effort you have to do to complete exactly one turn of the Build- Measure-Learn feedback loop” 51
  28. 52

  29. @leangdl - Manuel Vidaurre - @mvidaurre The fastest, cheapest thing

    you can build… and get into the hands of customers fast so that you can observe and measure the results... to make your product something customers want, need and love to buy. 54
  30. @leangdl - Manuel Vidaurre - @mvidaurre The fastest, cheapest thing

    you can build… and get into the hands of customers fast so that you can observe and measure the results... to make your product something customers want, need and love to buy. 55 VJGHQEWUKU XCNKFCVGFNGCTPKPI
  31. @leangdl - Manuel Vidaurre - @mvidaurre Minimum: The absolute necessary

    features that are needed from day 1 to solve customers’ top problems 56
  32. @leangdl - Manuel Vidaurre - @mvidaurre Viable: Solve real world

    problems. What will customers “pay” for? 59
  33. 60

  34. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF MVP = Experiment • Maximum validated learning with minimum

    effort. • Minimum opportunity cost. • Rapid testing and iteration. 63
  35. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF MVP = Experiment 64 MVP We have to manage

    to learn something from our first product iteration. In a lot of cases, this requires a lot of energy invested in talking to customers or metrics or analytics.
  36. @leangdl - Manuel Vidaurre - @mvidaurre A MVP naturally comes

    in later stages of Customer Discovery 65
  37. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF A MVP naturally comes in later stages of Customer

    Discovery • It’s a rudimentary solution to a problem worth solving • A MVP must still trump any alternative solution which your customers have used or considered • Basically, it’s the next step after building some landing page and running an AdWords campaign to validate some demand 67
  38. @leangdl - Manuel Vidaurre - @mvidaurre MVPs will attract early

    adopters 69 Everett M. Rogers Bell Curve
  39. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF MVPs will attract early adopters • Customers who can

    live with its limitations • People who buy into the vision and the ‘why’ • Customers who buy NOW and are relevant for Validated Learning 70
  40. 71

  41. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Focusing on Product/ Market Fit 74 Customer validation attempts

    to “test sell” at every stage. It runs a continuing series of quantitative pass/fail tests to determine whether there’s strong enough product/market fit to justify scaling sales and marketing spending
  42. 75

  43. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Selecting a beachhead market (1) • Is the target

    customer well funded? • Is the target customer readily accessible? • Does the target customer have a compelling reason to buy? • Can you today, with the help of partners, deliver a whole product? 76 William Aulet, MIT
  44. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Selecting a beachhead market (2) • Is there entrenched

    competition that could block you? • If you win this segment, can you leverage it to enter additional segments? • Is the market consistent with the values, passions and goals of the founding team? 77 William Aulet, MIT
  45. 78

  46. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Types of MVPs • Problem Exploration • Product Pitch

    • Concierge 80 Tests the Riskiest Assumption associated with your Solution Hypothesis (in order of increasing opportunity cost)
  47. 81

  48. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Problem Exploration An interaction focused on customer’s problems to

    understand past behavior and urgency. (Learn, aka Customer Discovery) 82 Aim: Reproduce Problem Opportunity Cost: Very Low
  49. 84

  50. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Product Pitch Exchange of product for some form of

    currency: time, money, or work. (Confirm, aka Customer Validation) 85 Aim: Collect Currency Opportunity Cost: Very Low to Low
  51. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Product Pitch 86 Landing pages Asking for cash at

    the end of an interview Video Demos Fake Ads Kickstarting
  52. 87

  53. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Concierge 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. (Learn or Confirm) 88 Aim: Deliver Customer Expectation Opportunity Cost: Medium
  54. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Concierge 89 Wizard of Oz is when you put

    up a front that looks like a real working product, but you manually carry out product functions Pure Concierge. Instead of providing a product, you start with a manual service. The service should consist of exactly the same steps people would go through with your product Piecemeal a blend between approaches. Again, you emulate the steps people would go through using your product – as you envision it. But instead of delivering them manually, you emulate them using existing tools.
  55. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Work 30 minutes in groups • 15 minutes. Based

    on your selected group of problems define a Customer/Problem Hypothesis and its assumptions! • 2 minutes. Identify your Riskiest Assumption! • 10 minutes. Determine how you will test it (including MVP Type)! • 3 minutes. Determine what success looks like 90
  56. 91

  57. @leangdl - Manuel Vidaurre - @mvidaurre Create an effective MVP

    for solving the problem of your customer 93
  58. 95

  59. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Product = experiments • An experiment is a method

    of testing a hypothesis with the goal of explaining reality • An experiment fails when it doesn’t provide evidence that your hypothesis is correct • There’s a big difference between how humans will predict their own behavior and how they will actually behave 96
  60. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Minimum Success Criteria • Don’t debate for hours… Go

    test it!! • You’re always going to be wrong. Get over it!! • What could you build today that you could put in the hands of customers tomorrow? 97
  61. 98

  62. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Progress through validated learning • A falsifiable hypothesis is

    a statement that can be clearly proven wrong • Validate Qualitatively, Verify Quantitatively • Most customers are great at articulating problems but not at visualizing solutions. 100
  63. 101

  64. @leangdl - Manuel Vidaurre - @mvidaurre Your MVP should be

    like a great reduction sauce 103 EQPEGPVTCVGFKPVGPUGCPFHNCXQTHWN
  65. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Great reduction sauce (1) • Clear your slate. •

    Start with your number-one problem • Eliminate nice-to-haves and don’t- needs • Repeat for your number-two and number-three problem 104
  66. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Great reduction sauce (2) • Consider other customer feature

    requests. • Charge from day one, but collect on day 30 • Focus on learning, not optimization 105
  67. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF Charge from day one, but collect on day 30

    • Price is part of the product! • Price defines your customers (segmentation) • Getting paid is the first form of validation 106
  68. @leangdl - Manuel Vidaurre - @mvidaurre Upon completing the Build-

    Measure-Learn loop, we confront the most difficult! question any entrepreneur faces: whether to pivot the original strategy or persevere 107
  69. 108

  70. @leangdl - Manuel Vidaurre - @mvidaurre If we’ve discovered that

    one of our hypotheses is false, it is time to make a major change to a new strategic hypothesis 109
  71. @leangdl - Manuel Vidaurre - @mvidaurre The vision always remains

    constant, it’s the STRATEGY that you pivot. The product is a manifestation of the strategy 111
  72. @leangdl - Manuel Vidaurre - @mvidaurre The worst thing for

    an entrepreneur is not failure but false positives, so be honest with yourself and pivot when necessary 112
  73. @leangdl - Manuel Vidaurre - @mvidaurre No matter how much

    you believe in your product, pivot when the cash flow isn’t right 113
  74. @leangdl - Manuel Vidaurre - @mvidaurre Use evidence to show

    that your vision is worth scaling 114
  75. @leangdl - Manuel Vidaurre - @mvidaurre Lean startup is about

    Big Vision! ! Think Big! Start Small! Scale Fast! 115
  76. 116

  77. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF References (1) • Ries, Eric. The Lean Startup: How

    Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. New York: Crown Business, 2011. • Owens, Trevor, and Obie Fernandez. The Lean Enterprise: How Corporations Can Innovate like Startups. Wiley, 2014 • Blank, Steven G., and Bob Dorf. The Startup Owner's Manual the Step-by-step Guide for Building a Great Company. Pescadero, Calif.: K&S Ranch, 2012. • Maurya, Ash. Running Lean: Iterate from Plan A to a Plan That Works. 2nd ed. Sebastopol, CA: O'Reilly, 2012 117
  78. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF References (2) • Ramli John, A Landing Page is

    NOT an MVP http://goo.gl/ qG9a5Q • Trevor Owens.10 Awesome MVPs from Lean Startup Machine http://goo.gl/sK4e4B • Lean Startup Machine. Building a successful MVP http:// goo.gl/jUL2Qb • Lean Startup Machine. Identifying and Learning from Your Target Customers http://goo.gl/MwsOO2 • Shardul Mehta, An MVP Is Not The Smallest Collection Of Features You Can Deliver http://goo.gl/3P9de3 118
  79. !MFBOHEM.BOVFM7JEBVSSF!NWJEBVSSF References (3) • Kate Rutter. MVP: What it is

    and why we all (should) care http://goo.gl/ZKsoRK • Kate Rutter. From cold-sweat questions to hot validated learning http://goo.gl/QKoBvt • businessinbeta. I want my MVP! From idea to testable artefact http://goo.gl/TA4gqB • David Binetti. The Art of the Pivot http://goo.gl/biil8j • Hiten Shah. Creating Experiments to Test Hypotheses 119