Introduction to Lean Startup methodology with overview of Vision -> Strategy -> MVP -> Build -> Measure -> Learn -> Cut Waste -> Pivot progression. Fun quizzes and tests explaining concepts like split testing and cohorts. Second part of the presentation goes over how to use Lean Startup in development. Adjusting dev cycle to focus more on learning and to move through the iterations faster. Continuous deployment and production metrics to help move code from the developer to the end user.

1. 8 techniques every product development team should know
LEAN STARTUP

2. INTRODUCTIONS
• Currently CEO of AgileEngine
• Co-founder and CTO of Validio (now GlobalLogic Kharkov)
• Co-founder and CTO of 2 startups
• Author of “Covert Java” book
• Developer, architect, entrepreneur, speaker
Alex Kalinovsky
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3. AWARENESS TEST
PAY ATTENTION!
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4. AWARENESS TEST
Story of 2 startups
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Startup 1 – Boo.com

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ShoeSite.com
Startup 2 - Free Shipping on Shoes

7. Which startup did better?
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Which one did better?

8. 2 startups side-by-side
• 50,000 varieties of shoes
• $1 billion in sales
• 24 million customers
• Acquired by Amazon.com
for $1.2 billion
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• $135M spent in 18 months
• $500,000 in sales
• 609 orders
• Liquidated for $250,000

9. Why do it?
• The question is not “can this product be built”. In the modern
economy, the more pertinent questions are “Should this be
built” and “Can we build a sustainable business around it”?
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10. Introducing Lean Startup
• Roots in Toyota
• Everyone can be entrepreneur
• Startups are best at turning ideas into
products in the environment of extreme
uncertainty
• Lean Startup approach can be used for
enterprise architecture, recruiting, QA
and sales
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11. Define Vision
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What do you want to achieve?

12. Establish Strategy
• How will you measure progress?
• Talk with customers to validate your
assumptions
• Understand your customer and discover
their needs
• Value learning over working software
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13. Lean Approach
• What I say is not what I do
• Only way to validate is to build and
measure
• Learn to see waste from value
• Lean thinking defines value as providing
benefit to the customer; anything else is
waste
• Ship soon. Learn. Cut waste.
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14. Build-Measure-Learn Feedback Loop
• Core of lean startup
• Each iteration tests a hypothesis of
value or growth
• Minimize time through the loop
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15. VISION – Experiment
• If you cannot fail, you cannot learn
• Start with hypothesis/prediction
• Test predictions empirically
• Science, not alchemy
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16. Ready to build!
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17. Dropbox challenge
• What to build to test if building Dropbox is a good idea?
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18. STEER – Leap – MVP
• MVP = Minimum Viable Product
• Not a prototype – have to measure
results
• Plan is based on assumptions; goal
of iteration is to validate one of
more of them
• Entrepreneurs dramatically
overestimate how many features are
need in MVP
• When in doubt – simplify
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19. MVP examples
• Video MVP - Dropbox
• Concierge MVP – StreetCount
• Cheap MVPs allow you to test ideas
quickly and iterate. Angry Birds
• Low quality is OK for startups
because of extreme uncertainty –
craigslist.com
• Don’t worry about patents, worry
about execution
• Commit to iteration no matter what
for an agreed period of time
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20. Measure
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21. Measure
• Actionable – must demonstrate
clear cause and effect
• Accessible – easy to find and
understand
• Auditable – can be reproduced and
verified
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22. VISION – Experiment – Hypothesis
• Value hypothesis tests whether a
product really delivers value once
users are using it
• Measure purchases, returning
visitors or contributions
• Growth hypothesis tests how new
customers will discover product
• Measure referrals and invitations
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23. Measure - Cohort Testing
• Which way is this bus headed?
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24. STEER – Measure – Split Testing
• Split Testing to determine a better of
2 versions
• Key to validating if something
should have been built in the first
place
• Marketing may be more important
than new features
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25. Learn
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• Was your hypothesis right?
• Did metrics improve?

26. PIVOT or PERSEVERE
• Pivot – a structured course
correction designed to test a new
fundamental hypothesis
• Don’t get stuck in Zombie land
• Example: online activism platform ->
The Point -> local pizza coupon ->
Groupon
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27. Lean Approach
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28. Lean Approach
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Can we improve?
• When problem is not really known, we value knowledge over
working software
• Progress is measured by learning

29. Typical Development Process
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Where is learning?

30. Lean Approach
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31. Lean Approach
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32. Lean Approach
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33. Lean Approach
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34. Lean Approach
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35. Lean Approach
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36. Lean Approach
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37. Tendency to overengineer
• Interfaces
• IOC / DI
• Separation of layers and DTOs
• Mocks vs test data
• (Over)analyzing requirements
• Patterns
• Excessive use of frameworks
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38. Agile vs Lean
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• Solution Unknown
• Elicit stories from customers
• 2-4 week sprints
• Continuous integration
• Done = working software
• Problem Unknown
• Validate features with market
• Get through the loop as fast
as possible
• Continuous deployment
• Done = validated learning
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39. Conclusion
1. Define vision
2. Establish strategy
3. Start with MVP
4. Build a hypothesis
5. Measure metrics
6. Learn from data
7. Build value, cut waste
8. Pivot or persevere
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40. Credits
1. Eric Ries, Lean Startup
2. Abby Fichter, How Development Looks Different at a
Startup
3. The HackerChick Blog
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41. 41AgileEngine
Change the world!
Can one person change the world?

42. Company X vs AgileEngine
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• “We hire the best”
• “We value our developers”
• “We work with latest
technologies”
• “We innovate”
• “Lots of projects”
• “Room to grow”
• “Trips to US”
• “Good work environment”
• Pass our development test
• Pay at the top end of market
• We invent latest
technologies
• Build products
• Interesting projects
• Promote from within
• Relocation to the US
• Best looking girls!
Company X AgileEngine

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