H OW T O T H R I V E I N A C H A NGI NG E C ONOM Y W I T H

A GI L E T H I N K I NG , P RO C E S S E S A N D P RODUC T S

THE LEAN STARTUP

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"THERE IS SURELY NOTHING QUITE SO USELESS AS DOING WITH GREAT EFFICIENCY WHAT SHOULD NOT BE DONE AT ALL"

PE T E R DRUCK E R

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LEAP OF FAITH

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FAILURE RATE

0

22.5

45

67.5

90

1 2 3 4 5 6 7 8 9 10N U M BE R OF Y E A R S

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1. Provides a system, a structure

2. Make decisions on facts, not assumptions

3. Find your product market fit

LEAN STARTUP

Z E RO PE RC E N T B ODY FAT

LEAN

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O P T I M A L W E B C O N S U L T A N T S I N C . T H E L E A N S T A R T U P 1 / 1 0 / 1 3

O P T I M A L W E B C O N S U L T A N T S I N C . T H E L E A N S T A R T U P 1 / 1 0 / 1 3

LEAN STARTUP 101 EXAMPLES Q&A

OVERVIEW

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SCIENCE

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ERIK RIES

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LESS WASTE

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MEASURE

BUILD

LEARN

THE LOOP

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IDEA

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MVP

Prototype of product

Least amount of effort to extract the most amount of learning

Validates your leap of faith assumptions

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EXAMPLE

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EXAMPLE

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EXAMPLE

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MEASURE

Measure the present (baseline)

Tune the engine (experiments)

Pivot or persevere

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EXAMPLE

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EXAMPLE

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EXAMPLE

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MEASURE -INNOVATION ACCOUNTING

Validates leap of faith assumptions

Actionable metrics vs. vanity metrics

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VANITY METRICS

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ACCESSIBLE

METRICS

ACTIONABLE AUDITABLE

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ACTIONABLE

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ACCESSIBLE

Simple

Concrete units

Cohort analysis

Easy to access

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COHORT ANALYSIS

H T T P : / / G O O . GL / 8 O ORQ

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EXAMPLE

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EXAMPLE

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EASY TO ACCESS

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AUDITABLE

Credible

Metrics are people too

Find cause and affect

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PIVOT OR PERSEVERE

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1 .

OUR PIVOT

1. Top search engine positioning

2. Turn browsers in to buyers2.

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1 .

2.

OUR PIVOT

1. Custom web design

2. Top search engine positioning

3. Turn browsers in to buyers3.

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PIVOT TYPES

Zoom-in pivot

Zoom-out pivot

Customer segment pivot

Customer need pivot

Platform pivot

Business architecture pivot

Value capture pivot

Engine of growth pivot

Channel pivot

Technology pivot

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RUNWAY

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MEASURE

BUILD

LEARN

THE LOOP

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ACCELERATE

Small batches

Fast production

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ENGINES OF GROWTH

Sticky engine of growth

Viral engine of growth

Paid engine of growth

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STICKY ENGINE OF GROWTH

Attract and retain customers

Track attrition or churn rate

If new customers > churn rate = growth

Speed = rate of compounding (growth-churn)

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VIRAL ENGINE OF GROWTH

Require person to person transmition

Viral coefficient=new customers each new users brings

Growth= viral coefficient > 1

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PAID ENGINE OF GROWTH

Cost of a customer - revenue

Can grow by

Lowering costs of acquiring

Increasing revenue per customer

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LEARN

Measure what is most important to your engine of growth

Productivity is learning

O P T I M A L W E B C O N S U L T A N T S I N C . T H E L E A N S T A R T U P 1 / 1 0 / 1 3

MEASURE

BUILD

LEARN

THE LOOP

O P T I M A L W E B C O N S U L T A N T S I N C . T H E L E A N S T A R T U P 1 / 1 0 / 1 3

COMING IN FOR LANDING

T H A N K YOU

Q&AS L I DE S H A R E : H T T P : / /