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Lean Launchpad - 12 Weeks Version - Meetup 8 of 12

Lean Launchpad - 12 Weeks Version - Meetup 8 of 12

The slides for the 8th Lean Launchpad (LLP) meetup for the Ignition Accelerator Program from Digihub Düsseldorf, Q4 2017. The LLP is the world's premiere pre-accelerator and early-stage startup support program created by the father of the Lean Startup movement, Steve Blank, taught at Stanford, Berkeley and used in hundreds of other universities, F500 companies and startup programs around the world. Booking: you@plusandersen.com

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Vidar Andersen

December 13, 2017
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Transcript

  1. LEAN LAUNCHPAD THE 12W EARLY STAGE
 SUPPORT PROGRAM MEETUP 8

    OF 12 IGNITE DUS DECEMBER 12TH
  2. MEETUP 8

  3. • Offene Fragen seit letztem Meetup? • 5m Präsentationen von

    den Startups • 10m Feedback pro Team (auch im Spreadsheet) • Hausarbeit • QA zur vorherigen Hausarbeit
 “Resources, Activities & Costs”
 “Metrics That Matter” AGENDA - MEETUP 8
  4. PEER REVIEW

  5. 1. Your last concrete 5 todos and what you did

    or didn’t do 
 2. Your results: Number of interviews (and % pass/fail or metrics if applicable) 
 3. What you learn or change in the BMC and why you think so (show BMC here) 4. Your current biggest challenge(s) 
 5. The next 5 CONCRETE things you will have done until next week PEER REVIEW TIME THE LEAN LAUNCHPAD 
 5-SLIDE FORMAT
  6. HOMEWORK

  7. 1. Conduct MINIMUM 15 customer interviews, face to face 2.

    Watch “Team & Execution - YC Startup School” (LINK) 3. Book a check-in slot for the coming week (doodle tba) 4. Update your 5-slide presentation according to your progress
 AND SEND THE PDF TO v@plusandersen.com
 ON MEETUP DAY BEFORE 1700 HR NEXT MEETUP TUE 19TH 1800HRS HOMEWORK MEETUP 8
  8. WHAT IS AGILE ENGINEERING? AND WHAT IS A MIMUM VIABLE

    PRODUCT? BUSINESS MODEL GENERATION CUSTOMER DEVELOPMENT AGILE ENGINEERING
  9. READ THE BOOK

  10. None
  11. WHAT IS
 AGILE

  12. • Individuals and interactions over processes and tools • Working

    software over comprehensive documentation • Customer collaboration over contract negotiation • Responding to change over following a plan http://agilemanifesto.org PLUS 12 PRINCIPLES
  13. SCRUM
 AN AGILE FRAMEWORK

  14. https://www.youtube.com/watch?v=TRcReyRYIMg

  15. AGILE ENGINEERING • MINIMUM VIABLE PRODUCT INSTEAD OF FEATURE-COMPLETE •

    BUILD-MEASURE-LEARN ITERATIONS IN SMALL BATCHES 
 INSTEAD OF VERSION COMPLETE & WATERFALL PROCESS • GOOD ENOUGH VS PERFECT - SPEED IS OF THE ESSENCE • DATA / TEST DRIVEN DESIGN - HYPOTHESIS TESTING • AUTOMATED ACCEPTANCE TESTING + USER STORIES / SCENARIOS
 DESCRIBE WHAT WE WANT TO SEE THE SOFTWARE DO, THEN AUTOMATE 
 THE VERIFICATION THAT THE SOFTWARE ACTUALLY DOES IT • CONTINUOUS DEPLOYMENT, MULTIVARIABLE A/B TESTING, PAIR PROGRAMMING (XP), SCRUM & KANBAN
  16. MINIMUM VIABLE PRODUCT THE MVP

  17. None
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  20. MVP THE SMALLEST BATCH THAT 
 WILL TEACH YOU SOMETHING

    A VERSION OF YOUR PRODUCT THAT WILL TEST 
 YOUR RISKIEST ASSUMPTION WITH THE LEAST EFFORT
  21. MINIMUM VIABLE PRODUCT FOCUS ON VIABLE AN MVP MUST DELIVER

    VALUE TO THE CUSTOMER IT MUST HAVE UTILITY
  22. None
  23. None
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  25. CAN YOU CREATE YOUR MVP IN ONE DAY

  26. DEFINE HOW & WHAT TO TRACK

  27. MEASURE THE DATA FROM YOUR MVP

  28. COMPARE DATA TO PASS / FAIL CRITERIA

  29. LEARN FROM THE DATA + INTERVIEWS

  30. ADAPT & ADJUST ACCORDINGLY

  31. DEPLOY THE NEW VERSION

  32. TEST AND TEST AGAIN

  33. BUILD-MEASURE-LEARN CYCLES

  34. • ITERATE OR PIVOT
 AS NEEDED • RELEASING SMALL BATCHES

    (V0.01)
 • IN BUILD-MEASURE- LEARN CYCLES
  35. MORE THAN ONE WAY TO MVP ONLY CREATIVITY IS THE

    LIMIT
  36. EXPLAINER VIDEO

  37. LANDING PAGE

  38. WIZARD OF OZ

  39. WIZARD OF OZ ZAPPOS

  40. MVP CONCIERGE

  41. CONCIERGE FOOD ON THE TABLE

  42. MVP PIECEMEAL

  43. PIECEMEAL AARDVARK

  44. CROWD FUNDING

  45. CROWDFUNDING STARTUPS

  46. CROWDFUNDING CORPORATES

  47. A/B TESTING

  48. A/B TESTING PROCTER&GAMBLE

  49. SINGLE FEATURE GOOGLE

  50. MVP - SEVERAL TYPES: • Explainer Video (Dropbox) • A

    Landing Page (Everyone - remember how to get currency) • Wizard of Oz MVP (Zappos) • Concierge MVP (Food on the Table) • Piecemeal MVP (Wizard of Oz + Concierge) • Crowd Funding (Sell and test demand before you build) • A / B Testing (P&G - data talks, bs walks) • Single-Feature MVP (google) • Your imagination is the limit…
  51. None
  52. MVP IS HARD
 DO NOT DESPAIR FRAMEWORKS TO HELP YOU

  53. WHAT ARE YOU TRYING TO LEARN A HELPFUL FRAMEWORK

  54. Mapping the intersection of these two questions gives us a

    2x2 matrix: Based on this, if we have a clear hypothesis of who our customer is and what we think they will pay for, we can conduct an Evaluative Market Experiment such as a smoke test. If we don’t have a clear idea of who our customer is, we can do Generative Market Research like data mining. Similarly, if we have a clear hypothesis of which features will solve the customer’s problems, we can do an Evaluative Product Experiment such as Wizard of Oz testing. If we do not know which features will lead to an acceptable solution, we can do Generative Product Research such as a Concierge Product to try and come up with new ideas. Any framework is an oversimplification of reality: This Index is a quick way to navigate to the correct method, but doesn’t mean you don’t need to think. 1. Do we need to learn about the market or the product? 2. Do we have a clear hypothesis to evaluate or do we 
 need to generate a clear idea?
  55. MARKET VS PRODUCT • Who is our customer? • What

    are their pains? • What job needs to be done? • How are they doing this job today? • Does the customer segment already have a solution to this pain? • Is this customer segment really willing to pay for a better solution for this job? • Is our customer segment too broad? • How do we find them? • How much will this customer segment pay? • How do we convince this customer segment to buy? • What is the cost to acquire a customer in this customer segment? • How can we solve this problem? • What form should this take? • How important is the design? • What’s the quickest solution? • What is the minimum feature set? • How should we prioritise? • Is this solution working? • Are people using it? • Which solution is better? • How should we optimise this? • What do people like / dislike? • Why do they do that? • Why do prospects buy from us? • Why do prospects not buy from us?
  56. In the Business Model Canvas, “Market” questions are those on

    the right side of the canvas including: 
 Customer, Channel, Relationship, & Revenue “Product” questions are those about the Value Proposition and everything left of it including: 
 Key Activities, Key Resources, Key Partners, 
 & Costs
  57. None
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  59. MORE GET THE REAL STARTUP BOOK AVAILABLE DOWNLOADS http://www.kromatic.com/downloads

  60. TOOLS TO HELP YOUR MVP SOME EXAMPLES

  61. EXAMPLE TOOLS FOR MVP

  62. THE FOCUS FRAMEWORK Justin Wilcox’ https://thefocusframework.com/

  63. In order of “riskiness”, the 5 phases to 
 Product-Market

    Fit are:
 1. Finding Early Adopters for your product 2. Offer Testing: You can reach your Early Adopters 3. Currency Testing: Your Early Adopters will pay you 4. Utility Testing: You can satisfy your Early Adopters 5. Scaling to Fit: You can achieve Product-Market Fit THE 5 PHASES OF PRODUCT-MARKET FIT THE “FOCUS” FRAMEWORK
  64. None
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  66. The riskiest assumption, for every startup, is that there are

    people actively trying to solve the problem your product will solve for them – these are the people we refer to as your Early Adopters. In particular, your goal during this phase of testing is to validate: • Are there people already trying to solve the problem (Early Adopters)? • Do you know how they describe the problem? • Do you know the emotions they experience associated with the problem? • Do you know where/how to reach them? • Do you know the deficiencies of their current solution? Experiment to Run: The best technique for validating these assumptions is the customer discovery interview. Interviews will answer any questions you have regarding the assumptions above, and set you up for success in validating the rest of your assumptions. Metric to Measure: What percentage of customers you interview report taking steps to solve the same problem within the last 6 months? Once 60% of your last 10 interviewees report actively trying to solve the same problem you are on the right way. 1. FINDING EARLY ADOPTERS 
 FOR YOUR PRODUCT
  67. Your problem / need goes here…

  68. During your interviews, customers will tell you where and how

    to reach other Early Adopters. 
 Your goal in this phase is to validate what they told you. In other words, you’re testing that you can find more Early Adopters, you know what to say to them when you find them, and that they’re eager enough for a solution to the problem that they ask you for more information. Experiment to Run: To validate this assumption, you’re going to test a combination of marketing channels and marketing messages based on the results of your interviews. Potential Validation Experiment: • Ad campaigns • Cold email outreach • Cold calling campaigns • Becoming member of forums/communities • Social media outreach • Attending conferences, meetups, etc
 Metric to Measure: Once your Early Adopters’ response rate to your “Solution Offer” (i.e. click on your ads, respond to your emails, etc.) is high enough that you can clearly see a path to Product-Market Fit, you’re ready to test the next assumption. 2. OFFER TESTING: 
 YOU CAN REACH YOUR EARLY ADOPTERS
  69. Once you’ve validated you can reach your Early Adopters, you

    need to test if they’ll “pay” you sufficiently to solve the problem. In this case “payment” can be in the form of actual cash, or it can be something else that leads directly to your Product-Market Fit (e.g. usage of your product, personal data, etc.) depending on your business model. Experiment to Run: To validate this assumption you’re going to actually ask for “payment.” While you won’t usually take the payment (because your product hasn’t been built yet), you’re going to ask for it and measure how many Early Adopters try to pay you. Examples include: • Landing page with pre-order functionality • Requesting a Letter of Intent after a solution interview • Asking for a cash payment after a solution interview • A mobile app w/ just enough functionality to measure the number of downloads and opens 
 Metric to Measure: Once your Early Adopters “payment” conversion rate is high enough that you can clearly see a path to Product-Market Fit, you’re ready to test whether you can start solving the problem. 3. CURRENCY TESTING: 
 YOUR EARLY ADOPTERS WILL PAY YOU
  70. Now it’s time to test whether you can actually solve

    your Early Adopters’ problems. While it can be tempting to automate your first couple attempts at a solution, there’s usually a more efficient way to to test this assumption. MVP to Build: Manual solutions are the best way to test whether you can solve an Early Adopter’s problem. While they make take more of your time to solve a customer’s problem, manual solutions are much faster to build, and even faster to iterate on, than automated (i.e. software) solutions. Examples include: • Concierge MVP • Wizard of Oz MVP 
 Metric to Measure: Once you’re solving the problem sufficiently well that your Customer Lifetime Value and your Viral Co-Efficient are high enough that you’re tracking towards Product-Market Fit, you’re ready to start scaling your solution. 4. UTILITY TESTING: 
 YOU CAN SATISFY YOUR EARLY ADOPTERS
  71. Once you’ve validated that Early Adopters exist, you can reach

    them, they’ll pay you, and you can solve their problems sufficiently, the only assumption left is that you can scale until you achieve Product-Market Fit. MVP to Build: Now is the time you get to automate your solution, scale to multiple marketing channels, and branch out to your second and third customer segments. Examples include: • Beta version of your software • Single-feature MVP • Software-based pilot for a large customer • Running outreach campaigns in multiple channels simultaneously • Multiple, simultaneous, landing page test targeting different customers Metric to Measure: At this point you’re measuring that all your previous metrics (e.g. response rate, conversion rate, Lifetime Value and Viral Co-Efficient) are all still tracking towards you achieving Product-Market Fit. 5. SCALING TO FIT YOU CAN ACHIEVE PRODUCT-MARKET FIT
  72. 20 WAYS TO AVOID BUILDING STUFF http://www.leancustomerdevelopment.com/

  73. READ THE BOOK

  74. WHY? SAVE TIME + MONEY + HEADACHES
 BUILD THE RIGHT

    STUFF
 AT THE RIGHT TIME FOR THE RIGHT CUSTOMERS FOR THE RIGHT REASONS
  75. 1. PLAY SHRINK “TELL ME HOW IT WOULD MAKE YOUR

    LIFE BETTER?”
  76. 2. SAY WHAT 
 YOU ARE FOR SAY WHAT YOU

    ARE AGAINST
  77. 3. “THIS IS WHAT YOU SHOULD DO, INSTEAD”

  78. 4. SEND THE CUSTOMER TO THE COMPETITOR

  79. 5. OFFER A WORKAROUND

  80. 6. FAKE 
 THE FUNCTIONALITY

  81. 7. IGNORE IT UNTIL YOU CAN’T

  82. 8. BE 
 LESS ATTRACTIVE TO CERTAIN TYPES OF CUSTOMERS

  83. 9. COMPENSATE “UNTIL WE CAN DO X, USE US FOR

    FREE”
  84. 10. LET SOME FISH 
 GET AWAY

  85. 11. BUILD A SIMPLE API

  86. 12. HIDE THINGS BEHIND EMAIL INSTEAD OF BUILDING IT

  87. 13. FORCE CUSTOMERS 
 TO PICK A SINGLE PRIORITY 


    PUT IT TO A VOTE
  88. 14. ASK FOR 
 A RIDICULOUS AMOUNT OF MONEY 


    E.G. WHEN A CUSTOMER ASKS FOR A NEW FEATURE
  89. 15. HAVE RULES BUT 
 DON’T ENFORCE THEM

  90. 16. ONLY BUILD IT 
 IF YOU CAN MEASURE IT

    IF YOU CAN’T MEASURE IF IT ACTUALLY WORKS LIKE INTENDED, IT’S NOT IMPORTANT
  91. 17. ASK FOR HELP CROWDSOURCE: 
 E.G. “DON’T SEE YOUR

    LANGUAGE? HELP US WITH THE TRANSLATION TO MAKE IT HAPPEN!”
  92. 18. BE GRATEFUL LOYAL FANS ARE YOUR #1 RESOURCE

  93. 19. NOTIFY ME WHEN... E.G. CHECKBOXES

  94. 20. PLAY NICE WITH OTHERS ENABLE COMBINING DIFFERENT PRODUCTS, SERVICES

    FOR VALUE-ADDS
  95. NOW GET THE HELL OUT OF THE BUILDING

  96. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR

    TOMORROW TODAY PLUSANDERSEN.COM
  97. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes

    • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
  98. PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW

    LEARNING JOURNEY THE KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
 A SERVICE INNOVATION OUTPOSTS DEMO DAY PITCHING MASTERCLASS EXPERTS AS A SERVICE MENTORS AS A SERVICE TRAIN THE TRAINER SPINNING OUT +ANDERSEN PROGRAMS AT ALL STAGES CHANGING CULTURE
  99. +ANDERSEN 
 & ASSOCIATES tomorrow today LEARN MORE
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