This document discusses how lean startup and agile principles can be combined for effective product development. It advocates for continuous customer interaction and iteration based on learning from customers rather than big design upfront. Pivoting is discussed as an important part of the process to change based on what is learned. An example is given of how Native Instinct worked with Pure Digital to iteratively develop the Flip camera based on customer feedback and market changes.

1. LEAN + AGILE
Product development in the 21st century
ROHN JAY MILLER
NATIVE INSTINCT

2. ROHN JAY MILLER
NATIVE INSTINCT

3. WAS $199
NOW $129!

4. MARKETING + PRODUCT
1. Deep customer integration
2. Interaction is built-in
3. Communication is component of product
4. Transparency key in the Social Enterprise

5. PRODUCT + MARKETING
Customers Development

6. MARKETING AS
A SERVICE

8. LEAN START-UPS
 Continuous customer interaction
 Revenue goals + measurement from day one
 No scaling until revenue
 Assume customer + features are *unknowns*
 Low burn rate by design, not crisis
 “Nail it, then scale it”

9. BUT THERE’S A BIG
DEVELOPMENT
PROBLEM

10. WATERFALL
GOALS DESIGN DEVELOP RELEASE

11. THAT WAS THEN, THIS IS NOW
THEN NOW
 Big Bang Launch  Iterative evolution
 Static Content  Rich applications
 Long media lead times  Real-time
 One size fits all  Personalized
 Broadcasting  Interactive

13. AGILE IS A…
PHILOSOPHY
STRATEGY
COLLABORATION
PRACTICE

14. AGILE PRACTICES

15. LEAN + AGILE
 Vision: what are we doing?
 Learn: get out of the building
 Engage: talk, listen, champion
 Experiment: make, learn, test
 Build: adapt, negotiate, deliver

16. HOW TO DEVELOP IDEAS
1. What did you hear/see?
2. What can you infer from that?
3. What conclusion(s) can you draw?
4. What is your opinion/solution?
DON’T LET PEOPLE
JUMP THE GUN TO #4

17. HOW TO PIVOT
Credit: Eric Ries, “The Lean Start-Up”

18. TYPES OF PIVOTS
 Zoom-in pivot. A single feature becomes the
whole product.
 Zoom-out pivot. The whole product
becomes a single feature of a much larger
product.

19. TYPES OF PIVOTS
 Customer segment pivot.You have real
customers, but not the ones in the original
vision.
 Customer need pivot.Your product doesn’t
really solve a problem. Find a new need from
customers.

20. TYPES OF PIVOTS
 Platform pivot. Change from an application
to a platform, or vice versa. Customers buy
solutions usually, not platforms.
 Business architecture pivot. Change from
high margin, low volume (complex systems
model), to low margin, high volume (volume
operations model) of visa versa.

21. TYPES OF PIVOTS
 Value capture pivot. Change the revenue
model. Maybe “freeware” isn’t right.
 Engine of growth pivot. Viral, sticky, and
paid growth models—change to different
one.

22. TYPES OF PIVOTS
 Channel pivot. Find a new sales channel,
offer unique pricing, features, or competitive
position.
 Technology pivot. Find a new technology to
solve the problem.

23. THE IMPOSSIBLE DREAM?
 Lean: “Nail it, then scale it”
 Agile:
 Engage customers
 Close collaboration
 Iterate product
 Two-way communication

24. The Flip Camera + Native Instinct

26. When we began working with Pure Digital on the Flip Camera the
intended audience was parents of kids under 5. It would be a
camera that would be easy to carry and use, and easy to upload.

27. But then it took off. All kinds of people began buying the Flip.
Parents. College students. Bloggers. Butchers. Bakers. We began
expanding communications into social media. Today the Flip
camera has more “likes” on Facebook than Cisco.

28. We kept iterating with Pure Digital. The rise of the Flip was in
symbiosis with the growth of You Tube. Native Instinct wrote the
software for the “one-click upload” to You Tube. Is this marketing o
product? Agile melds product and marketing, sez I.

29. We wanted to give people a place where the could put their family videos and
invite only certain people to see. So we designed and build FlipShare.

30. We built an e-commerce site for the Flip in Drupal. 2 Million cameras in 2
years. Then we figured out how to allow people to put their own design on a
Flip Camera, which made it their Flip. This also helped Pure Digital’s profit
margins, since you could only get this on the e-commerce site.

31. The site was re-designed to account for different types of buyers based not
on demographics—that wasn’t significant as it turned out—but instead
based on behaviors. What role did the Flip play in helping you use video?

32. Pure Digital brought to market new lines of the
Flip, which met different needs. We showed how
each one fit into that customer’s story, which
was a concept from Agile.

33. Minneapolis Bike System

35. EXERCIZE
The City of Minneapolis has started a bike rental
program called NICE RIDE MN
Bikes can be rented for $5 a day / $4.50 for 90
minutes, annually + annual student discount
The City wants the program to be self-funding
and perhaps return enough profit to expand

36. EXERCIZE
 What is the Vision?
 What are our hypothesis?
 How do we research them?
 What are the stories?
 What could a new vision statement be?
 How do we start?

37. ROHNJAY@NATIVE-INSTINCT.COM
@ROHNJAYMILLER +1 (612) 749-0803
1800 Girard Avenue South
Minneapolis, MN 55403