[DevDay 2017] Lean Startup - Design Thinking - Speaker: Sebastian Sussmann - CIO at Axon Active Vietnam

Lean Startup – Design Thinking
DEV04/20/2017

www.axon.vnfb.com/AxonActiveVietNam
Why are you in this session?

Do you want to make your own
Business?

Why you like to get this?

Money? Freedom? Success?

Really?
Do you know the Idea about Lean Startup?
You think it is so easy?

So, what is a successful company?

A product that brings value to customer
What is a successful company?
A company that grows,
has a successful product
and has customers who like and would
invest into the product...

what do we need to grow?

What is the meaning of STARTUP in this case?

Lean Startup = Startup Company
NO,
there is more…

Every company is a startup company
if the product, business should grow and be successful
!

Lean Startup = change to focus on
customer needs
& sustainability ✓

What does it mean?

So the improving concept, feedback loop …

Plan
DoCheck
Act
© http://en.wikipedia.org/wiki/File:W._Edwards_Deming.gif
W. Edwards Deming
(1900 –1993)
or Deming Cycle …
Plan-Do-Check-Act (PDCA) cycle
To do

Lean startup
Build
Measure
Learn
Idea
Code
Data
To do

Empathize Define Ideate Prototype Test
Design Thinking
To do

Empathize Define Ideate Prototype Test
Understand the
User
Get an Idea about
their needs
Brainstorm to find
a solution
Test the solution
Build the solution
with a simple way
Design Thinking
To do

Plan
DoCheck
Act
Build
Measure
Learn
Idea
Code
Data
Empathize
Define
Ideate
Prototype
Test
To do

Agile [Thinking]
www.agilemanifesto.org
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://www.agilemanifesto.org
To be

Agile [Thinking]
www.agilemanifesto.org
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://www.agilemanifesto.org
To be
Communication …
Quality …
Customer Observation …
Learnings …

If we don’t know the Customer, we
also don’t know what QUALITY will be…

We need to UNDERSTAND, OBSERVE
our Customer

Don’t think you can figure all out in your head!

Biggest problem in nowadays:
We work to oft just with assumptions and
do not get a proof…

But make a hypothesis …

It is not helpful:
Operation was successful but the patient died

It is not helpful:
The product is launched but nobody need it…

It is not helpful:
Everybody wants the Product but the
product always crashes…

Don’t accept the “status quo”

We also need a Growth engine, for success

Innovation will help the Growth Engine

So, we have a dilemma…
We need innovation but not assumptions…

What is the common problem?
Why we talk about this?

Quality, delay, a failed final product…, time …

We all have the time limit and we
need to get it available before the
other one make it better …
We need more awareness…

Adjustments value | The iron triangle
Quality
Money
Scope
Time
Quality
Money
Scope
TimeOvertime,
Delay, ....
More cost
Team size, ...
Scope is controlled by money and time in
AGILE, Design Thinking, Lean Startup …
info
✓

Used Functions / Features
Sometimes
16%
Rarely
19%
Never
45%
Always
7%
Often
13%
The Standish Group International, Inc. ,Boston, 1996 (Modernization Clearing a pathway to success)
info

Impact of Features
Patton, Jeff; Economy, Peter. User Story Mapping: Discover the Whole Story, Build the Right Product
~20% Success!
- Big impact for success
Little Impact
60%
Failure
20%
Success
20%
~20% Failure
- Will hurt us…
~60% Little or
no impact for
business
Will cause problems in
sustainability development,
growing, flexibility and
maintenance but has no impact for a success of the product
…
info

80% of a success comes from 20%
of investment
Pareto principle info

Microsoft noted that by fixing the top 20% of
the most-reported bugs, 80% of the
related errors and crashes in a given system
would be eliminated.
Pareto principle
Rooney, Paula (October 3, 2002), Microsoft's CEO: 80–20 Rule Applies To Bugs, Not Just Features, ChannelWeb
info

In software engineering, Lowell Arthur expressed a
corollary principle: "20 percent of the
code has 80 percent of the errors.
Find them, fix them!"
Pareto principle
Pressman, Roger S., Software Engineering: A Practitioner's Approach (7th ed.). Boston, Mass: McGraw-Hill, 2010
info

Software frameworks have often been observed to
make 80% of use cases easier to implement and
20% of use cases much more
difficult to implement.
Pareto principle
http://wiki.c2.com/?EightyTwentyRule
info

Adjustments value | The iron triangle
Quality
Budget
Scope
Time
Build the right things Build the things right
info
Keep QUALITY
And the chance to
get better QUALITY
✓
✓
✓

find ways to reduce scope and build only the most
valuable pieces of each feature
to prove the User needs …
The User is NOT interested in Investment, he is
interested in VALUE
Reduce Scope

Minimum
Viable
Product
Focus on MVP

Observe your User / Understand your User
Observation

“If you just avoid mentioning your idea,
you automatically start asking better questions. Doing
this is the easiest (and biggest) improvement you can
make to your customer conversations.”
Rob Fitzpatrick
ASK question

Faster horse
“If I had asked people what they
wanted, they would have said a
faster horse.”
Henry Ford

1. See, what is really working
2. Where he struggles
3. Don’t talk about your IDEA
4. Get an Hypothesis
5. Proof the Hypothesis
6. ADJUST
Observation … simple rules
Failfast,learnfast,improvefast

“NO” doesn’t mean we don’t
do it
it should mean:
we will find a better way
MORE VALUE, LESS
implementation COST
The most difficult word: “NO”

“NO” helps to get the FOCUS on
MVP
“NO”

Innovation will help the Growth Engine
Learning

to get the right IDEA
The need of more than one IDEA
Time
AmountofIDEAS
Stupid idea
Obvious Idea New Idea
Crazy Idea
Innovative Idea
DigitalInnovationPlaybook,DarkHorseInnovation

Forget the boundaries, they will
come anyway early …

Kano-Model
Basic needs are necessary
to operate a product
Excitement needs make
the differences to
competitor
(Exciter)
Source: en.wikipedia.org/wiki/Kano_model
info
Innovation

Exciters …

Remember
Kano-Model
Building an MVP
Wrong MVP:
too less function and no customer value
Get all Feature in…
Bad user experience or buggy product (do not shoddy user experience)
Olsen,Dan.TheLeanProductPlaybook
info
Functional
Usable
Reliable
Delightful
Functional
Usable
Reliable
Delightful
✓

We need innovation for the engine
But
We need to save time in
development

Do not focus to much to understand
the problem deep, but you need to
understand this WIDE…
Get value for the USER and bring the
product to the pole position …
Design Thinking, get experience with experiments

Create a lot of solution.
Don’t get stuck with just one.
Don’t think you will have the only best already
at the beginning.
To create just one and the best solution is really difficult.
To have the best Idea already at the beginning is nearly impossible
Ideas will grow.
How to create Experiments?

potential shippable product increment
Impact Mapping: Making a big impact with software products and projects / Gojko Adzic
Patton, Jeff; Economy, Peter. User Story Mapping: Discover the Whole Story, Build the Right Product
“Great art is never finished, only
abandoned.” - Leonardo da Vinci

Don’t think you can figure all out in your head.
You need to prototype for you and your
customer
Prototyping

Don’t talk, DO it
The time will run fast, every test need a clear goal,
you need clear time management
Prototyping

First prototype. Nick Swinmurn
Example Zappos
just show the picture of the shoes, that he captured in some stores…
if someone order it, he goes to the store to buy it and send it via post
▪ He could simply test, if people will buy, order…
▪ You could learn the online process, with payment
▪ After this…. he optimized this and build just the process that he needed…

When you are in a really early stage, just playing
around with different concepts,
Use materials that are easy to find and
cheap to buy.
A material that limits your aesthetic options helps to
remove fear and to avoid focusing on how it looks. That
is something to tackle in a later stage.
Once you’re a bit further along, it still makes sense to
make “throwaway” prototypes, but they will be more
involved. Paper prototyping keeps your entire design
team engaged, even if they don’t have developer skills
…

Prototyping
Setup Experiments
✓ Make it visual, touchable
✓ Don’t fall in love with first ideas – create alternatives
✓ Feel comfortable in a “liquid state”
✓ Don’t make it perfect
✓ Keep it simple and MacGyver it together
✓ Expose your work early - seek criticism
✓ Use techniques for creativity
✓ Track learnings, insights, and progress
✓ Kill your darling – mindset, do not defend your prototype
✓ Do not explain your prototype, the prototype will explain
themselves

Failure is bad, it costs money and is
not a useful investment, just do it right
since the beginning!…
Failure
NO

Fuck up nights, learn from each other
But what if failure can save money in long-term,
and could reduce risk?
then its okay to do…?
try to find the mistakes fast and early
and not in production

So we need to fail early

Shorten the feedback cycle to reduce
the risk of doing wrong
Get feedback

We do not need many users to
understand what is not working
User Test, Feedback
UsabilityProblemsfound
3
Number of Test Users
100%
6 9 12 15
Knapp,Jake.Sprint:Howtosolvebigproblemsandtestnewideasinjustfivedays
25%
50%
75%

Drew Houston:
DrewHouston:Dropbox(dropbox-minimal-viable-product)
Drew Houston CEO, Dropbox

The Product development in Lean Startup
should be a reaction with pull,
this mean Experiments.
They will help step by step do understand
the needs

Get the hypothesis fast and validate and
optimize with MVP & Experiments

SET UP SMALL EXPERIMENTS
AND LEARN SHIT
Every little iteration and trial will
get tons of useful new insights -
things you wouldn't have learned if
you just started building. Reality is
different to what you assume.
Setup Experience

Don’t loose to much time on the wrong
but perfect solution.
Find out the real needs and keep it
simple but with HIGH Quality

Find the balance between say “NO” (reduce scope)
&
New Innovation (get the needed feature)
To get the Real need

Don’t loose to much time on the wrong
but perfect solution.
Find out the real needs and keep it
simple but with HIGH Quality
Do not save time with the
cost of Quality!!!

Assumptions can kill Success
Innovation can support Success
Accept the status quo will kill Success
Learn fast, fail fast will support Success
Do not waste time, time you can not get time back
Growth engine will support Success
Do not go too long in the wrong
direction, learn and adjust

BIGGEST mistake and wrong
understanding! Control time with
the cost of QUALITY

Quality

Who I am?
Dipl.-Ing. CIO Sebastian Sussmann easier, just call me: Sebi
Born in Germany
Living and working since 2003 in Switzerland and since 2008 in Vietnam
Studied at Brandenburg University of Technology Cottbus (BTU), Germany
Swiss Federal Institute of Technology Zürich (ETH), Switzerland
IT developing experience started at university 1995
Institute for Automation Engineering - IFAT, network and WEB-Application,
Otto-von-Guericke-University Magdeburg, Germany
Multimedia Centre Cottbus (BTU), Germany
3D Print @ Swiss Federal Institute of Technology Zürich (ETH), Switzerland
Mappuls AG, Lucerne, Switzerland
Axon Active AG, Luzern, Switzerland
Axon Active Vietnam Co. Ltd., Ho Chi Minh City, Vietnam
Certified Scrum Master by Scrum Alliance
Certified Product Owner by Scrum Alliance
Certified Scrum Professional by Scrum Alliance
Certified Agile Leadership by Scrum Alliance
OSA certified of completion by Daniel Mezick
Trainer at ECCInternational
Email sebastian.sussmann@axonactive.com
https://vn.linkedin.com/in/sussmann
https://www.scrumalliance.org/community/profile/ssussmann
International
Association of Facilitators
Open Space Agility
certified of completion

www.scrumbreakfast.vn
Keep in touch:
Email
sebastian.sussmann@axon.vn
http://vn.linkedin.com/in/sussmann

Disclaimer
This presentation is an ongoing work and will be updated and improved frequently.
1. Use
This presentation is produced for Axon Active Vietnam and may be used:
By Sebastian Sussmann for Axon Active Vietnam
2. Content
The author reserves the right not to be responsible for the whole correctness, completeness or quality of the information which is provided at
this document. If some body will get problems because of using some information out from this presentation, the author will reject all claims.
Because the author can not guarantee the correct use of all provided information. The author done it with the best of one's knowledge and belief
This presentation / document is not complete. The author can add, remove and change it completely or partly at any time.
3. Copyright
The author intended not to use any copyrighted material for the presentation. For the case it was clearly indicated he provides the copyright and
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The copyright for any material created by the author and the company Axon Active Vietnam is reserved. Any duplication or use of objects such
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4. References:
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[DevDay 2017] Lean Startup - Design Thinking - Speaker: Sebastian Sussmann - CIO at Axon Active Vietnam

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[DevDay 2017] Lean Startup - Design Thinking - Speaker: Sebastian Sussmann - CIO at Axon Active Vietnam