tech talk: succeeding with a lean innovation process
TRANSCRIPT
Succeeding with a Lean Innovation ProcessAsh Maurya - Founder of LEANSTACK, Author of “Scaling Lean”
IET10T
CA ACCELERATOR ZONE
9/10 startups failproducts
WHY do most new products fail?
Here are a dozen reasons
1. No funding
2. Poor team
3. Poor product
4. Bad timing
5. No customers
6. Competition
7. Lack of focus
8. Lack of passion
9. Bad location
10. Not profitable
11. Burn out
12. Legal issues
All my ideas started out as awesome ideas.
Not all them became awesome products.
Good ideas are rare and hard to find.
So I was ready for the search process.
But what really bothered me was my cycle time between ideas.
18-24 months between ideas.
Life’s Too Short to Build Something Nobody Wants.
BACKWARDS
Show me traction
How does this solve my problem?
#1 reason why new products fail
We waste needless time, money, and effort building the wrong product.
Solution
Awesome
The Innovator Bias
Your business model, NOT your solution, is THE product.
1st MINDSHIFT
01 Document your Plan A
MET
A-P
RIN
CIP
LES
02 Identify the riskiest parts of your plan
03 Systematically test your plan
Document your Plan A
Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.
Business Model versus Business Plan
Business Model versus Business Plan
A document investors make you write that they don’t read
Business Model versus Business Plan
A single diagram of your business
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth paying attention
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Key Metrics
Key activities you measure
Channels
Path to customers
Cost Structure
Customer Acquisition Costs Distribution Costs Hosting People, etc.
Revenue Streams
Revenue Model Life Time Value Revenue Gross Margin
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
PRODUCT MARKET
Problem
Top 3 problems
Solution
Top 3 features
Unique Value Proposition
Single, clear, compelling message that states why you are different and worth paying attention
Unfair Advantage
Can’t be easily copied or bought
Customer Segments
Target customers
Key Metrics
Key activities you measure
Channels
Path to customers
Cost Structure
Customer Acquisition Costs Distribution Costs Hosting People, etc.
Revenue Streams
Revenue Model Life Time Value Revenue Gross Margin
Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.
PRODUCT MARKET
Identify the riskiest parts of your plan
Document your Plan A
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
What is an Experiment?
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Business Model Development Process
Blog
Teaser Page
Iterated
Time
How I Wrote My Book
RUNNING LEAN Illustrated
WHAT is the riskiest assumption?
WHAT is the riskiest assumption?
ROADSTER
WHY did they use the Lotus Esprit versus another car model?
STAGE 2: MODEL S
STAGE 3: MODEL 3
Scale your idea in stages.2nd MINDSHIFT
3 Stages of a Product
PROBLEM/SOLUTIONFIT
PRODUCT/MARKETFIT
SCALE
Stage 1 Stage 2 Stage 3
3 Stages of a Product
PROBLEM/SOLUTIONFIT
PRODUCT/MARKETFIT
SCALE
Do I have a problem worth solving?
You don’t need to build a product first to find customers.
COUNTER-INTUITIVE PRINCIPLE
3 Stages of a Product
PROBLEM/SOLUTIONFIT
PRODUCT/MARKETFIT
SCALE
Have I built something people want?
You don’t need lots of customers to validate your business model.
COUNTER-INTUITIVE PRINCIPLE
3 Stages of a Product
PROBLEM/SOLUTIONFIT
PRODUCT/MARKETFIT
SCALE
How do I accelerate growth?
Establishing repeatability is a pre-requisite for growth.
COUNTER-INTUITIVE PRINCIPLE
Systematically test your plan
Identify the riskiest parts of your plan
Document your Plan A
Business Model Development Process
Document your Plan A
Time
Document your Plan A
Time
Document your Plan A
Identify riskiest parts of your plan
Time
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Time
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Time
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Define Solution
Problem/Solution Fit
Time
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Define Solution
Problem/Solution Fit
Time
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Define Solution
Problem/Solution Fit
Validate Qualitatively
Time
Product/Market Fit
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Define Solution
Problem/Solution Fit
Validate Qualitatively
Scale
Verify Quantitatively
Time
Product/Market Fit
Document your Plan A
Identify riskiest parts of your plan
Systematically test your plan
Understand Problem
Define Solution
Problem/Solution Fit
Validate Qualitatively
Scale
Verify Quantitatively
Time
Product/Market Fit
Search before execution.3rd MINDSHIFT
One final takeaway…
You can’t brute force a solution…
Starting with a solution is like building a key without a door.
ASH MAURYA @ashmaurya
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