Did you know that you can develop awesome products with zero product specifications ? We have recently quantified the gains for a product we built using Lean Startup and MVP approach and were pleasantly surprised to find that we could quantify minimum 47% gain in time-to-market, 32% cost savings, 55% improvement in product quality and 40% gain in business value as compared to traditional product development methods.
2. the speaker
• Senior Product professional with 16+ years of
experience in B2B and B2C (Web / Mobile, Cloud /
Analytics) products in Telecom, Banking, Education
and Healthcare industries world-wide
• Evangelist of Agile and Lean (Scrum, XP, Kanban,
Lean Startup)
• Consultant to Fortune 500 companies on
transformations and Advanced Project / Program /
Portfolio management
Copyright. People10 | Lean Startup Product Development
Nisha Shoukath
Co-Founder, People10
@nishashoukath
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3. the panelist
• Technology Leader with 18+ years experience in
building mission critical products for Investment
Banking, Education, Healthcare and E-Commerce,
across the globe
• Adviser to Fortune 500 companies for Enterprise
transformations
• Agile and Lean evangelist; Led 1000 member Agile
organization for a global Investment Bank
• Expert in Continuous deployment, MVP and UX for
Web / Mobile / Cloud / Analytics for B2B and B2C
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Rakesh Dahiya
Co-Founder, People10
@rakeshdahiya
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4. for the attendees!
30 minutes of FREE
consultation for your
Lean Product
Development
(technology choices,
frameworks, practices,
approach)
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+
5. …in the next 45 minutes
• New products & concerns
• Startups, Lean Startups…
• Traditional vs. Agile vs. Lean Startup
• Why Lean startup?
• Lean startup principles
• Case study on quantified benefits
• Q&A
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6. are you planning to
launch a new
technology product?
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8. what is a startup for us here?
“A human institution designed to create new
products and services under conditions of
extreme uncertainty”
“Nothing to do with size of the company, sector
of the economy or industry”
Eric Ries – 2011
Theleanstartup.com
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9. traditional waterfall approach
• Unit of progress : „Advance to next stage‟
• Take untested, un-validated assumptions and pour
money into it
• Lessons are learned only at the end
• Cost of learning is hefty
• Causes most products to fail
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Problem is Known Solution is Known
10. agile
• Unit of progress : „Line of working code‟
• Your business idea is very clear and validated
• Solution evolves iteratively
• Needs iterative delivery
• High product quality
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Problem is Known
Solution is Unknown
Product owner /
internal customer
11. • “Should this product be built?” instead of “Can
this product be built?”
• “Can we build a sustainable business around this
set of products and services?”
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why do we need to look
beyond agile?
12. lean startup
• Unknown problem; unknown solution
• Solution evolves iteratively to validate the hypothesis
• High level of customer focus and development
• Uses Agile development practices
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13. lean startup principles
• Eliminate uncertainty
• Develop an MVP
• Validated learning
• Pivot
• The power of feedback loop
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14. Practices to minimize total time to feedback loop
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Build
Code
Measure
Data
Learn
Ideas
Build Faster
Unit test
Usability Test
Continuous Integration
Incremental Deployment
Free & Open-Source
Cloud Computing
Cluster Immune System
Just-in-time Scalability
Refactoring
Developer Sandbox
Minimum Viable Product
Funnel Analysis
Cohort Analysis
Net Promoter Score
Search Engine Marketing
Predictive Monitoring
Split Tests
Continuous Deployment
Usability Tests
Real-time Monitoring & Alerting
Customer Liaison
Measure FasterSplit Tests
Customer Deployment
Five Whys
Customer Advisory Board
Falsifiable Hypotheses
Product Owner
Accountability
Customer Archetypes
Cross-functional Teams
Semi-autonomous Teams
Smoke Tests
Learn Faster
15. what is an MVP?
• A Minimum Viable Product is version of your “product”
that maximizes validated learning for the least amount of
effort
• NOT an MVP: a landing page to get sign-ups
• Great companies that started this way…
– Email MVP (TimeHop)
– Blog MVP (Groupon)
– Video MVP (DropBox)
– Hustle MVP (paper prototypes…)
• Simple wireframes and working prototypes
Get out of the building, talk to possible customers and
hack together a creative solution to solve their problems
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17. B2B education product
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The client is a leading EduTech product and consulting firm
specializing in K12 space, working with the US school districts
offering advanced teaching solutions.
Background
Goal: Improve teaching standards for education institutions through expert
consulting and innovative technology platforms
Complex non-functional requirements: Domain standards, third party
connectivity, content distribution, responsive UX, high speed video
streaming, multi-browser compatibility, scalability, collaboration features…
Business need
18. solution highlights
Approach
• Lean startup delivery model (iterative delivery, MVP and
continuous deployment)
• Captured priorities through product backlog and wireframes –
Zero specs!
• 8 weeks MVP and 6 months Beta
Benefits
• Client showcased the MVP and got customer validation
• MVP helped to get market feedback; iterative changes in UI
and product features
• Recipe for product‟s success and avoided cost escalation and
time delays
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19. How we built fast
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Build
Code
Measure
Data
Learn
Ideas
Build Faster
Unit test
Usability Test
Continuous Integration
Incremental Deployment
Free & Open-Source
Cloud Computing
Cluster Immune System
Just-in-time Scalability
Refactoring
Developer Sandbox
Minimum Viable Product
Funnel Analysis
Cohort Analysis
Net Promoter Score
Search Engine Marketing
Predictive Monitoring
Split Tests
Continuous Deployment
Usability Tests
Real-time Monitoring & Alerting
Customer Liaison
Measure FasterSplit Tests
Customer Deployment
Five Whys
Customer Advisory Board
Falsifiable Hypotheses
Product Owner
Accountability
Customer Archetypes
Cross-functional Teams
Semi-autonomous Teams
Smoke Tests
Learn Faster
20. build practices used
• Customer validation
– MVP Approach, Wireframes
– End-user feedback
• Technology
– Open source stack (HTML5, CSS3, Popcorn.js, Knockout.js, MongoDB,
Groovy, Node.js, Bootstrap UI)
– Cloud hosted solution Amazon EC3
– Just-in-time, scalable architecture and design
– Productive frameworks like Grails
• Testing practices
– Unit tests
– Usability tests
– Test automation
• Release and deploy
– Developer sandbox
– Continuous Deployment
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21. how can we quantify the
benefits of lean startup based
development ?
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22. time savings
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Req.
(1m)
MVP Dev.
(2m)
Beta Development (6m) UAT
(1m
)
Requirements , architecture, design(6m) Beta Development (8m) Int.
(1m
)
UAT
(1m)
Rework (3m)
• 10 months to launch the beta
• <1 month for initial requirement
capture
• No additional integration effort
required due to continuous
integration. The integration happens
every day
• No changes for beta due to frequent
feedbacks, demo, MVP & interim
releases
• 19+ months to launch the beta
• 6+ months of requirements,
architecture, design
• Additional 1 month of integration
• Due to late feedback, the potential
rework of 3+ months post beta
deployment.
traditional SDLC lean startup
time savings
m = month
9 months of time gain (47%)
23. cost savings
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• Just enough documentation using
product backlog, sprint backlog and
wireframes
• Savings of integration effort
• Others – Saving on repetitive efforts
(tests, deploys, etc…)
• Requires more effort for detailed
requirement documentation, review,
validation, sign-off
• Additional cost for integration
• Additional cost of rework due to late
customer feedback and changes
traditional SDLC lean startup
Activity Effort (person-months) Cost (USD)
Requirements (0.5 FTE x 6m) 3pm 480
Development (4 FTE x 8m) 32pm 5,120
Integration (4 FTE x 1m) 4pm 640
UAT (4 FTE x 1m) 4pm 640
Rework (4 FTE x 3m) 12pm 1,920
8,800
Activity Effort (person-months) Cost (USD)
Requirements (0.2 FTE x 6m) 1.2pm 192
Development (4 FTE x 8m) 32pm 5,120
Integration 0 pm 0
UAT (4 FTE x 1m) 4pm 640
Rework 0pm 0
5,952
$32 over $100 savings (32%)
* assumption : cost of $1 / hour
24. quality benefits
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• Frequent feedback through sprint demos
and working software releases
• Continuous automated quality checks
on continuous integration platforms
• 100x more testing cycles
• 10x full system testing cycles
• Testing is not frequent; done on big chunks
• Entire system is barely tested 1 or 2 times
• Disconnected pieces are internally tested;
customer feedback is very late
traditional SDLC lean startup
Superior Quality – cost of defect is majorly reduced (-55%)
automated tests / unit & behaviour
functional testing
customer feedback
acceptance tests with customer
100 defects: (80% @3x) 240 + (20% @5x) 100 = 340 defect points
100 defects: (80% @1x) 80 + (15% @3x) 45 + (5% @ 5x) 25 = 150 defect points
25. business value
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• Frequent & early value through MVP &
releases
• Can adapt - early product visibility
• Able to generate more revenue due to
early MVP deliveries
• Value (product) is delivered only once
• Often perceived as insufficient value –
gaps, misunderstandings, and unwanted
features
• Revenue realization is late - high risk of
losing the competitive edge
traditional SDLC lean startup
Early and frequent Value More opportunity More $$$
-0.1
0.1
0.3
0.5
0.7
0.9
1.1
1 4 7 10 13 16 19
Traditional SDLC
Lean Startup
27. How we embraced lean startup here…
• Unknown problem; unknown solution
• Solution evolves iteratively to validate the hypothesis
• High level of customer focus and development
• Uses Agile development practices
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28. client endorsement
“Insight Education Group has been working with
People10 on the development of a new suite of web-
based products. From the beginning of the process,
the knowledgeable and experienced team has been
responsive to our vision, helping craft that vision into a
reality. The Lean Startup philosophy is integral to the
product development processes at Insight.”
Richard Nyankori, Executive Vice President
Nancy Goodman, Senior Project Director
- Insight Education Group
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29. • email me at nisha@people10.com for your
complementary 30 minutes product development
consultation
• Survey
• Handbook
• #People10Meetup
• @people_10
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