fi presentation on lean startup by carl danneels plethon feb24 2015
TRANSCRIPT
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Lean Startup Intro
Carl Danneels
Pick & Choose – StoryMe, Gent
VOKA Bryo – April 25th 2015
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• Chair of Lean Startup Circle BXL (700 members) & Lean Startup Flanders (100 members)
• Mentor of Bryo (Voka) • Mentor of the Founder Institute• Former Board Member of the Agile
Consortium Belgium & PMI Belgium• Scrum Master; PMP and Prince 2 certified• Vice Project Manager of the Year in the
Belux
A bit about me
Voka Bryo Pick & Choose – April 25th – Lean Startup
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• "Lean Startup" is a method for developing businesses and products first proposed in 2011 by Eric Ries.
• Based on his previous experience working in several US startups, Ries claims that startups can shorten their product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and what he calls validated learning.
Voka Bryo Pick & Choose – April 25th – Lean Startup
Lean Startup
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• The “Business Model Canvas” is a strategic management template initially proposed by Alexander Osterwalder. in 2008.
• The BMC is used for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers and finances. It also assists firms in aligning their activities by illustrating potential trade-offs.
Business Model Canvas
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Ash Maurya
« Life is too short to build something nobody wants »
« Running Lean, Second Edition (O’Reilly). Copyright 2012 Ash Maurya, 978-1-449-30517-8 »
Running Lean
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• Startups: risky business !• The Business Model/Lean Canvas• «Fail Fast, Fail Quickly, Fail Often»• Example
What we will talk about
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Startup success rate = 10%
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Business Model
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The Business Model
Voka Bryo Pick & Choose – April 25th – Lean Startup
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The Process
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Systematically Test Your Plan
MVP
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
Step Out of the Building & Learn …
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3 Stages of a Product
Voka Bryo Pick & Choose – April 25th – Lean Startup
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RealTime WorldsDave Jones made a virtue of having no business model for APB. He said “if a game is built around a business model, that’s a recipe for failure.” Big mistake.
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Business Model Canvas (Osterwalder)
Alexander Osterwalder
Voka Bryo Pick & Choose – April 25th – Lean Startup
What is YOUR main challenge ?
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The Lean Canvas (Maurya)
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Dinnr“There never was a need for a service like ours in the UK in the segment that we picked (urban professionals, couples without kids or with one baby max). And I deluded myself in thinking that there was, because I was eager to start my own thing and thought that this was something that I myself would use.”
Patient CommunicatorI realized that many of the true money-making businesses in healthcare really aren’t about optimizing delivery of primary care. This is a longer discussion but I realized, essentially, that we had no customers because no one was really interested in the model we were pitching. Doctors want more patients, not an efficient office.
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PumodoOur biggest self-realization was that we were not users of our own product. We didn’t obsess over it and we didn’t love it. We loved the idea of it. That hurt.
EverpixThey failed to effectively position themselves against giants like Apple and Google, who offer fairly robust — and mostly free — Everpix alternatives.
Travelllll.comIf your monetisation strategy is advertising, you need to be marketing to an enormous audience. It’s possible to make a little money from a lot of people, or a lot of money from a few people. Making a little money from a few people
doesn’t add up. If you’re not selling something, you better have a LOT of eyeballs. We didn’t.
Shnergle Does your idea only monetise at scale? If your idea can only be monetised at scale, head to San Francisco / Silicon Valley. There isn’t enough risk capital, or enough risk appetite, in the UK/EU venture market to pour capital into unproven R&D concepts.
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TutorspreeAlthough we achieved a lot ,we failed. We didn’t scale because we were single channel dependent and that channel shifted on us radically and suddenly. SEO was baked into our model from the start.
SerendipThe high costs of processing millions of posts every day and serving relevant and engaging playlists to our users … are really bigger than we can handle, a very challenging position for a small startup.
The Uncommon Life Numbers are not only the oxygen of a business, they are the vital signs as well. I was almost entirely focused on doing what I enjoyed … If I had done a better job keeping track of my monetary flow and following up on accounts receivable, I probably could have avoided my company's ultimate demise.
Personal Costs“How many hours are you going to stay away from your kids, girlfriends, family and friends? How many relationships will break down in the process? What are you willing to sacrifice in the face of success?”
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Personal Revenue
“How many of us are into the business building for the money alone? I know that I want many other things. Success, acknowledgment, thrill, excitement, a sense of fulfillment, the ability to help people and many other things. Some of these are more powerful than the monetary gains a business will bring and they will sustain me on my difficult ‘trip’.”Smart Bear
Don’t despair if you don’t have an unfair advantage yet. I didn’t either when I started Smart Bear! Unfair Advantage requires unwavering devotion to the One Thing that is (a) hard, and (b) you refuse to lose, no matter what.
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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10X Product Launch
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
Different time dimensions
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Voka Bryo Pick & Choose – April 25th – Lean Startup
Validation Board
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« PIRATE METRICS » INSTEAD OF « VANITY » METRICS !
Source: Dave McClure
Innovation Accounting
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Voka Bryo Pick & Choose – April 25th – Lean Startup
Metrics Dashboard
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CASE STUDY
Sustainable Apartments
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Upcycled Furniture
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1st Upcycled Canvas
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Segmented Upcycled Canvas
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Segmented Upcycled Canvas
Self-Catering « Arty » City Trippers –Tier 1 & Tier 2
Self-Catering Nature-loving Fortnighters
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First Upcycled Canvas
Self-Catering & « Arty » Tier 1/2 City Trippers
There are insufficientself-catering city apartmentswith character.
Self-Catering Nature-lovingFortnighters
Eco-chic rural apartmentsfill a gap in the market
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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The Validation Board
Have a look at www.javelin.com (the Experimentation Board) LeanStartupMachine
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Insufficientself-catering city apartmentswith character.
Self-catering, « arty » Tier1City Tripper
Arty City Trippers that Self-Cater exist !
The « character » I envision is perceived as providing significant added value
There are insufficient apartments with character.
Hypothesis 1
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Insufficientself-catering city apartmentswith character.
Self-catering, « arty » Tier2City Tripper
Arty City Trippers that Self-Cater exist !
The « character » that I envision is perceived as providing significant added value
There are insufficient apartments with character.
Hypothesis 2
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Eco-chic rural apartmentsfill a market gap
Self-Catering Nature-lovingFortnighters
Nature-loving travellers that Self-Cater exist !
Customer would specifically choose for an Eco-Chic apartment
Eco-chic apartments are rare.
Hypothesis 3
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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First Upcycled Canvas
Self-Catering & « Arty » Tier 1 City Trippers
There are insufficientself-catering city apartmentswith character.
Self-Catering Nature-lovingFortnighters
Eco-chic rural apartmentsfill a gap in the market
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Insufficientself-catering city apartmentswith character.
Self-catering, « arty » Tier1City Tripper
Hypothesis 1 – Pivot 1
Theme based /upcycled design apartment chain + buy/rent options
Holiday booking revenues justify investment costs.
People are interested in buying or renting products from the apartment.
People chose for the apartment because of its eco-chic image.
The Theme based approach is strongly appreciated.
MVP: Renovated
apartment in Zuid-Antwerp
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Hypothesis 1 – Pivot 2
Insufficientself-catering city apartmentswith character.
Self-catering, Tier2 Long-stayExpat
« No-fuss », Theme based upcycled design apartment chain with buy/rent
Holiday bookings justify investment costs.
People are interested in buying or renting products from the apartment.
People chose for the apartment because of its eco-chic image.
The Theme based approach is strongly appreciated.
MVP: Renovated
apartment in Zuid-Antwerp
Insufficientself-catering city apartmentswith character.
Self-catering, « arty » Tier2City Tripper
Theme based /upcycled design apartment chain + buy/rent options
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Theme based /upcycled design apartment chain + buy/rent options
Self-Catering Nature-lovingFortnighters
Holiday bookings justify investment costs.
People are interested in buying or renting products from the apartment.
People chose for the apartment because of its eco-chic image.
Hypothesis 3 – Pivot 1
Eco-chic apartmentsfill a market gap.
MVP: Renovated
apartment on Belgian coast
The Theme based approach is appreciated.
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Theme based /upcycled design apartment with buy/rent options
Self-Catering Nature-lovingFortnighters
Holiday bookings justify investment costs.
People are interested in buying or renting products from the apartment.
People chose for the apartment because of its sustainable chic image.
Hypothesis 3 – Pivot 2
Eco-chic apartmentsfill a market gap.
MVP: Renovated
apartment on Belgian coast
The Theme based approach is appreciated.
Theme based sustainable design apartment chain with buy/rent
Self-Catering Nature-lovingFortnighters
Sustainable chic apartmentsfill a market gap.
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Holiday bookings justify investment costs.
People chose the apartment because of its sustainable chic image.
Hypothesis A (merge of 1 & 3) – Pivot 2
MVP: 4Elements
website
The Theme based approach is appreciated.
Theme based, no-fuss, sustainable design apartment chain
Self-Catering (Semi-) Long stayLight Green Cust’s
Insufficient Sustainable Chic apartments !
It makes sense to create a chain of Sustainable ChicApartments
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Only Renovation ?
Work out the « features » !
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Current Canvas
Voka Bryo Pick & Choose – April 25th – Lean Startup
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Voka Bryo Pick & Choose – April 25th – Lean Startup
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Systematically Test Your Plan
Testing is key
Voka Bryo Pick & Choose – April 25th – Lean Startup
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• Your Business Model is the Product• Have a risk oriented mindset• Fail Fast, Fail Quickly, Fail Often• Kill your darlings• Pivot intelligently
Recap
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Your Questions
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Attribution
Ash Maurya
« Life is too short to build something nobody wants »
« Running Lean, Second Edition (O’Reilly). Copyright 2012 Ash Maurya, 978-1-449-30517-8 »
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Carl DanneelsPlethon Innov8
Koewacht 339190 Stekene
Belgium
G: 0497/053615W: www.plethon.be
T: @cdanneels
How to reach me
Voka Bryo Pick & Choose – April 25th – Lean Startup