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The Lean Startup#leanstartupTechStars Edition,[object Object],Eric Ries (@ericries),[object Object],http://StartupLessonsLearned.blogspot.com,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object]
Most Startups Fail,[object Object],But it doesn’t have to be that way. ,[object Object],We can do better. ,[object Object],This talk is about how.,[object Object]
What is a startup?,[object Object],A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. ,[object Object],Nothing to do with size of company, sector of the economy, or industry,[object Object]
Product / Market Fit,[object Object],“Do whatever is required to get to product/market fit. Including:,[object Object],changing out people,,[object Object],rewriting your product,,[object Object],moving into a different market,,[object Object],telling customers no when you don’t want to,,[object Object],telling customers yes when you don’t want to,,[object Object],raising that fourth round of highly dilutive venture capital,[object Object],—whatever is required.”,[object Object],— Marc Andreessen,[object Object],http://blog.pmarca.com/2007/06/the-pmarca-gu-2.html,[object Object]
The Pivot,[object Object],What do successful startups have in common?,[object Object],They started out as digital cash for PDAs, but evolved into online payments for eBay.,[object Object],They started building BASIC interpreters, but evolved into the world's largest operating systems monopoly.,[object Object],They were shocked to discover their online games company was actually a photo-sharing site.,[object Object],Pivot: change directions but stay grounded in what we’ve learned.,[object Object],http://startuplessonslearned.blogspot.com/2009/06/pivot-dont-jump-to-new-vision.html,[object Object]
Speed Wins,[object Object],if we can reduce the time between major iterations,[object Object],we can increase our odds of success,[object Object]
A Tale of Two Startups,[object Object]
Startup #1,[object Object]
Stealth Startup Circa 2001,[object Object]
All about the team,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Achieving Failure,[object Object],Company failed utterly, $40MM and five years of pain.,[object Object],Crippled by “shadow beliefs” that destroyed the effort of all those smart people.,[object Object]
Shadow Belief #1,[object Object],We know what customers want. ,[object Object]
Shadow Belief #2,[object Object],We can accurately predict the future. ,[object Object]
Shadow Belief #3,[object Object],Advancing the plan is progress. ,[object Object]
A good plan?,[object Object],Start a company with a compelling long-term vision. ,[object Object],Raise plenty of capital.,[object Object],Hire the absolute best and the brightest.,[object Object],Hire an experienced management team with tons of startup experience.,[object Object],Focus on quality. ,[object Object],Build a world-class technology platform.,[object Object],Build buzz in the press and blogosphere.,[object Object]
Startup #2,[object Object]
IMVU,[object Object], ,[object Object]
IMVU,[object Object], ,[object Object]
New plan,[object Object],Shipped in six months – a horribly buggy beta product,[object Object],Charged from day one,[object Object],Shipped multiple times a day (by 2008, on average 50 times a day),[object Object],No PR, no launch,[object Object],Results: 2007 revenues of $10MM,[object Object]
Lean Startups Go Faster,[object Object],Commodity technology stack, highly leveraged (free/open source, user-generated content, SEM).,[object Object],Customer development – find out what customers want before you build it. ,[object Object],Agile (lean) product development – but tuned to the startup condition. ,[object Object]
Commodity technology stack,[object Object],Leverage = for each ounce of effort you invest in your product, you take advantage of the efforts of thousands or millions of others.,[object Object],It’s easy to see how high-leverage technology is driving costs down.,[object Object],More important is its impact on speed.,[object Object],Time to bring a new product to market is falling rapidly. ,[object Object]
Customer Development,[object Object],[object Object]
Rapid hypothesis testing about market, pricing, customers, …
Extreme low cost, low burn, tight focus
Measurable gates for investorshttp://bit.ly/FourSteps,[object Object]
Agile Product Development(A tale of two startups, revisited),[object Object],[object Object]
These examples are drawn from software startups, but increasingly:
All products require software
All companies are operating in a startup-like environment of extreme uncertainty,[object Object]
Agile Product Development,[object Object],Unit of Progress: A line of Working Code,[object Object],“Product Owner” or in-house customer,[object Object],Problem: known,[object Object],Solution: unknown,[object Object]
Product Development at Lean Startup,[object Object],Unit of Progress: Validated Learning About Customers ($$$),[object Object],Customer Development,[object Object],Hypotheses,,[object Object],Experiments,,[object Object],Insights,[object Object],Problem: unknown,[object Object],Data,,[object Object],Feedback,,[object Object],Insights,[object Object],Solution: unknown,[object Object]
Minimize TOTAL time through the loop,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object]
How to build a Lean Startup,[object Object],Let’s talk about some specifics. ,[object Object],Small Batches,[object Object],Continuous deployment,[object Object],Split-test (A/B) experimentation,[object Object],Minimum Viable Product,[object Object],Five why’s ,[object Object]
Small Batches,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],Learn Faster,[object Object],Customer Development,[object Object],Five Whys,[object Object],Build Faster,[object Object],Continuous Deployment,[object Object],Small Batches,[object Object],Continuous Integration,[object Object],Refactoring,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object],Measure Faster,[object Object],Split Testing,[object Object],Actionable Metrics,[object Object],Net Promoter Score,[object Object],SEM ,[object Object]
Benefits of Small Batches,[object Object],Faster feedback,[object Object],Problems are instantly localized,[object Object],Reduce risk,[object Object],Reduce overhead,[object Object]
Continuous Deployment,[object Object],IDEAS,[object Object],LEARN,[object Object],BUILD,[object Object],Learn Faster,[object Object],Customer Development,[object Object],Five Whys,[object Object],Build Faster,[object Object],Continuous Deployment,[object Object],Small Batches,[object Object],Continuous Integration,[object Object],Refactoring,[object Object],DATA,[object Object],CODE,[object Object],MEASURE,[object Object],Measure Faster,[object Object],Split Testing,[object Object],Actionable Metrics,[object Object],Net Promoter Score,[object Object],SEM ,[object Object]
Continuous Deployment,[object Object],[object Object]
At IMVU time from check-in to production = 20 minutes
Tell a good change from a bad change (quickly)
Revert a bad change quickly
And “shut down the line”
Work in small batches
At IMVU, a large batch = 3 days worth of work
Break large projects down into small batches,[object Object]
Everyone has a complete sandbox
Continuous Integration Server (BuildBot)
All tests must pass or “shut down the line”
Automatic feedback if the team is going too fast
Incremental deploy
Monitor cluster and business metrics in real-time

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2009 08 19 The Lean Startup TechStars Edition

Hinweis der Redaktion

  1. The premise of the lean startup is simple: if we can reduce the time between these major iterations, we can increase the odds of success.
  2. Even though some aspects of the product were eventually vindicated as good ones, the underlying architecture suffered from hard-to-change assumptions. After years of engineering effort, changing these assumptions was incredibly hard. Without conscious process design, product development teams turn lines of code written into momentum in a certain direction. Even a great architecture becomes inflexible. This is why agility is such a prized quality in product development.
  3. Do our actions live up to our ideals?
  4. After our crushing failure, the founders of my next company decided to question every single assumption for how a startup should be built. Failure gave us the courage to try some radical things.
  5. After our crushing failure, the founders of my next company decided to question every single assumption for how a startup should be built. Failure gave us the courage to try some radical things.
  6. Based on that experience, and the experience of the other startups I have worked for, I now strongly believe there is a better way to create startups. I’ve called this vision the Lean Startup. It combines three key trends.
  7. Let’s look at those changes schematically.
  8. Run tests locally:-- Sandbox includes as much of production as humanly possible (db, memcached, Solr, Apache).-- Write tests in every language. We use 8 different test frameworks for different environs. Otherwise you get fear and brittle.-- Example kind of problem is that AJAX updater for site header. Seemingly innocuous change would break shopping experience.CIT/BuildBot:-- Simply don’t push with red tests. Even if the site is in trouble. Example Christmas site outage with memcache sampling.-- Give an idea of the scale. 20 machine cluster, runs 10000 tests and 100,000’s of thousand of assertions on every change.Incremental deploy:-- Catch performance bugs and gaps in test coverageSlow query in free tags. This started to drive database load higher on one MySQL instance due to contention and data size. Detected and rolled back before it affected users and before the database was hosed due to high load.Changed transaction commit logic in foundation of the system. This passed all tests but caused registrations to fail in production due to subtle difference between sandbox and production. System detected drop in business metric in 1 minute and reverted the changeAlerting and Predictive MonitoringExample: Second tier ISP to block our outbound emailExample: Rooms list performance time bombExample: Registration quality, second tier payment methods, invite mail success rates by serviceStory: Anything that can go wrong will, so just catch it then fast.
  9. Webcast: May 1Workshop: May 29Fliers up frontDiscussion in web2open