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agility 
accelerates 
... 
Introduction to Lean Innovation 
Regional 
Scrum 
Gathering 
Rio 
de 
Janeiro 
OpenSpace, 
6 
September, 
2014
Fredi Schmidli 
• Business 
Angel 
and 
Boardmember: 
www.startangels.ch 
• Entrepreneur 
• Community 
Builder: 
-­‐ 
meetup.com/Lean-­‐ 
startup-­‐Zurich/ 
-­‐ 
Agile 
Breakfasts 
Adrian von Orelli 
• EE 
PhD 
ETHZ 
• R&D 
leader 
• Innovator 
• 15 
years 
of 
high 
tech 
product 
development 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
2
Find this presentation on slideshare 
Hier 
kommen 
Link 
& 
QR-­‐Code 
zur 
Präsi 
auf 
Slideshare 
hMp://www.slideshare.net/pragmaLcsoluLons/lean-­‐innovaLon-­‐introducLon-­‐rio 
05.09.2014 
fredi@pragmaLc-­‐soluLons.ch 
3
Lean EcoSystem 
Lean 
EcoSystem 
Classic 
Lean 
Management 
Invented 
by 
Toyota 
a[er 
WW2 
Maximize 
efficiency 
under 
“stable” 
condiLons 
Not 
strongest 
in 
innovaLon 
space 
Focus 
on 
conLnuous 
improvement 
and 
execuLon 
excellence 
Lean 
Startup 
Blank 
/Ries 
/Osterwalder 
5 
years 
old 
Maximize 
innovaLon 
efficiency 
under 
extreme 
uncertainty 
Agile 
development 
(not 
waterfall) 
customer 
development 
(not 
market 
research) 
It 
took 
50+ 
years 
unLl 
agile 
SW 
development 
methods 
finally 
started 
to 
successfully 
combine 
innovaLon 
with 
lean 
management 
principles 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
4
To improve the success rate 
failing 
build 
the 
“wrong” 
product 
Source: 
Ash 
Maurya 
«Running 
Lean» 
5 
• 9/10 
• Many 
• 66% 
of 
successful 
Startups 
significantly 
change 
original 
business 
idea 
• Success 
comes 
not 
from 
beMer 
idea, 
but 
from 
method/ 
framework 
which 
iterates 
your 
original 
ideas 
to 
a 
working 
business 
model 
– 
before 
running 
out 
of 
cash 
9/15/14 
www.pragmaLc-­‐soluLons.ch
Traditional versus lean approach 
Source: 
Ash 
Maurya: 
Running 
Lean 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
6
Goal 
Finding 
a 
business 
model, 
which 
is 
• profitable 
• repeatable 
• scalable 
or 
let 
the 
Startup 
die 
and 
start 
a 
new 
one 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
7
Lean Startup is not only for startups 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
8
What is lean thinking? 
Value 
is 
“providing 
benefit 
to 
the 
customer”, 
anything 
else 
is 
waste. 
In 
a 
startup 
it 
is 
unknown 
what 
the 
customer 
might 
find 
valuable 
and 
even 
who 
he/she 
is. 
Value 
is 
generated 
by 
learning 
these 
unknowns. 
9 
The Lean Startup Challenge 
9/15/14 
www.pragmaLc-­‐soluLons.ch
Why the Lean startup changes 
everything Exercise 
Write 
down 
the 
three 
most 
important 
reasons 
why 
“Lean 
InnovaLon” 
is 
important 
for 
your 
Startup. 
3 
+ 
5 
Minutes 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
10
The roots of lean startup 
11 
Make 
products 
customers 
want 
Incremental 
releases 
Reduce 
waste, 
OperaLonal 
excellence 
Document 
your 
plan 
Adapted 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
from 
Janis 
Fraser
The Book by Eric Ries Sept.2011 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
12
Lean Innovation Framework 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
13
Lean Canvas (by Ash Maurya / adapted from Osterwalder) 
guess 
14 
guess 
guess 
guess 
guess 
guess 
guess 
guess 
9/15/14 
www.pragmaLc-­‐soluLons.ch
Feedback loop 
CreaLvity 
happens 
here 
Design 
experiment 
Proposal, 
Pretotype, 
Landing 
page, 
MVP 
… 
Analyze 
results 
Pivot 
or 
persevere 
Results 
from 
experiment 
weeks 
not 
years 
AssumpLon/ 
Hypothesis 
Run 
experiment 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
15
Customer Development 
Scale 
Product 
Market 
fit 
Problem 
SoluLon 
fit 
Customer 
Discovery 
Customer 
ValidaLon 
Customer 
CreaLon 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
16
Lean Innovation Framework 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
17
Lean Innovation Framework 
Scale 
Product 
Market 
fit 
Problem 
SoluLon 
fit 
Customer 
Discovery 
Customer 
ValidaLon 
Customer 
CreaLon 
iterate 
and 
experiment 
through 
the 
BML 
feedback 
loop 
find 
out 
if 
there 
is 
a 
problem 
worth 
solving 
and 
if 
enough 
customers 
are 
willing 
to 
pay 
18 
Document 
plan 
A 
9/15/14 
www.pragmaLc-­‐soluLons.ch
The end 
9/15/14 
www.pragmaLc-­‐soluLons.ch 
19
slideshare.net/pragmaticsolutions/ 
from-­‐scrum-­‐to-­‐agile-­‐management 
fredi@pragmatic-­‐solutions.ch 
facebook.com/PragmaticSolutionsGmbh 
plus.google.com/b/100642162720912501942 
05.09.2014 
fredi@pragmaLc-­‐soluLons.ch 
20

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Lean innovation Introduction

  • 1. agility accelerates ... Introduction to Lean Innovation Regional Scrum Gathering Rio de Janeiro OpenSpace, 6 September, 2014
  • 2. Fredi Schmidli • Business Angel and Boardmember: www.startangels.ch • Entrepreneur • Community Builder: -­‐ meetup.com/Lean-­‐ startup-­‐Zurich/ -­‐ Agile Breakfasts Adrian von Orelli • EE PhD ETHZ • R&D leader • Innovator • 15 years of high tech product development 9/15/14 www.pragmaLc-­‐soluLons.ch 2
  • 3. Find this presentation on slideshare Hier kommen Link & QR-­‐Code zur Präsi auf Slideshare hMp://www.slideshare.net/pragmaLcsoluLons/lean-­‐innovaLon-­‐introducLon-­‐rio 05.09.2014 fredi@pragmaLc-­‐soluLons.ch 3
  • 4. Lean EcoSystem Lean EcoSystem Classic Lean Management Invented by Toyota a[er WW2 Maximize efficiency under “stable” condiLons Not strongest in innovaLon space Focus on conLnuous improvement and execuLon excellence Lean Startup Blank /Ries /Osterwalder 5 years old Maximize innovaLon efficiency under extreme uncertainty Agile development (not waterfall) customer development (not market research) It took 50+ years unLl agile SW development methods finally started to successfully combine innovaLon with lean management principles 9/15/14 www.pragmaLc-­‐soluLons.ch 4
  • 5. To improve the success rate failing build the “wrong” product Source: Ash Maurya «Running Lean» 5 • 9/10 • Many • 66% of successful Startups significantly change original business idea • Success comes not from beMer idea, but from method/ framework which iterates your original ideas to a working business model – before running out of cash 9/15/14 www.pragmaLc-­‐soluLons.ch
  • 6. Traditional versus lean approach Source: Ash Maurya: Running Lean 9/15/14 www.pragmaLc-­‐soluLons.ch 6
  • 7. Goal Finding a business model, which is • profitable • repeatable • scalable or let the Startup die and start a new one 9/15/14 www.pragmaLc-­‐soluLons.ch 7
  • 8. Lean Startup is not only for startups 9/15/14 www.pragmaLc-­‐soluLons.ch 8
  • 9. What is lean thinking? Value is “providing benefit to the customer”, anything else is waste. In a startup it is unknown what the customer might find valuable and even who he/she is. Value is generated by learning these unknowns. 9 The Lean Startup Challenge 9/15/14 www.pragmaLc-­‐soluLons.ch
  • 10. Why the Lean startup changes everything Exercise Write down the three most important reasons why “Lean InnovaLon” is important for your Startup. 3 + 5 Minutes 9/15/14 www.pragmaLc-­‐soluLons.ch 10
  • 11. The roots of lean startup 11 Make products customers want Incremental releases Reduce waste, OperaLonal excellence Document your plan Adapted 9/15/14 www.pragmaLc-­‐soluLons.ch from Janis Fraser
  • 12. The Book by Eric Ries Sept.2011 9/15/14 www.pragmaLc-­‐soluLons.ch 12
  • 13. Lean Innovation Framework 9/15/14 www.pragmaLc-­‐soluLons.ch 13
  • 14. Lean Canvas (by Ash Maurya / adapted from Osterwalder) guess 14 guess guess guess guess guess guess guess 9/15/14 www.pragmaLc-­‐soluLons.ch
  • 15. Feedback loop CreaLvity happens here Design experiment Proposal, Pretotype, Landing page, MVP … Analyze results Pivot or persevere Results from experiment weeks not years AssumpLon/ Hypothesis Run experiment 9/15/14 www.pragmaLc-­‐soluLons.ch 15
  • 16. Customer Development Scale Product Market fit Problem SoluLon fit Customer Discovery Customer ValidaLon Customer CreaLon 9/15/14 www.pragmaLc-­‐soluLons.ch 16
  • 17. Lean Innovation Framework 9/15/14 www.pragmaLc-­‐soluLons.ch 17
  • 18. Lean Innovation Framework Scale Product Market fit Problem SoluLon fit Customer Discovery Customer ValidaLon Customer CreaLon iterate and experiment through the BML feedback loop find out if there is a problem worth solving and if enough customers are willing to pay 18 Document plan A 9/15/14 www.pragmaLc-­‐soluLons.ch
  • 19. The end 9/15/14 www.pragmaLc-­‐soluLons.ch 19
  • 20. slideshare.net/pragmaticsolutions/ from-­‐scrum-­‐to-­‐agile-­‐management fredi@pragmatic-­‐solutions.ch facebook.com/PragmaticSolutionsGmbh plus.google.com/b/100642162720912501942 05.09.2014 fredi@pragmaLc-­‐soluLons.ch 20