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Presentation I gave to GOVIS, 2012 in Weelington New Zealand on how Minimum Viable Product can help Government innovate like a Lean Start Up. It's all in the Business Model !
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By Ant Boobier
Can MVP help Government innovate like a Startup?
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Currently Government InsCtuCons need to deliver a Product or Service under condiCons of budgetary uncertainty
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Currently Government InsCtuCons need to deliver a Product or Service under condiCons of budgetary uncertainty
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A Startup is a Human InsCtuCon designed to deliver a Product or Service under condiCons of extreme uncertainty
“
”
-‐ Eric Ries
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“Breakthrough innovaCons come when the tension is greatest and the resources are most limited”
-‐ Dr Clayton M Christensen
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Startup = Experiment Test your assumpCons and get early feedback from your customers…
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Startup = Experiment Test your assumpCons and get early feedback from your customers…
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1. Customer Development
2. Agile SoSware Development
3. Lean Principles and PracCces
Lean Startup is a synthesis of
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Customer Development working out what to build through conCnuous customer feedback
1. test the assumpCons about the customer problem
2. test if the product concept and minimum feature set solve that problem
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Agile SoSware Development • An empowered customer champion
• Early delivery of business value • Breaking big problems into smaller ones
• Building SoSware IteraCvely and incrementally • Risk miCgaCon: address issues and dependencies early
• ConCnuous process improvement and good pracCce
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Lean
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Value can only be defined by the ulCmate customer
Value is not in the crea/on of stuff, but validated learning and confirma/on that we have built the right stuff
*I was going to include a picture on this slide, but it didn’t add any value
Eric Ries
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Waste “There is surely nothing quite so useless as doing with great efficiency what should not be done at all”
-‐ Peter Drucker
The ul:mate waste is building something that no-‐one wants
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How do we stop that Waste?
Build a Minimum Viable Product
Measure the Response Learn
Use smaller iteraCons for tesCng a vision
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Source: Eric Ries – Lean Start Up
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What is a Minimum Viable Product?
• the most basic design that helps us validate our assumpCons
• allows a team to collect the maximum amount of validated learning about our customers with the least effort
Simply Simplify
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MVP for Government
• Release in small increments to the customer, instead of saving up a big-‐bang release Cll the end
• Each increment should independently add value to the customer and provide learning to the team
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MVP for US Department of Health and Human Services Mandate – to build a health reform consumer service in just 3 months
www.startuplessonslearned.com/2012/05/lean-‐government.html Todd Park, CTO
• Healthcare.gov launched successfully on Cme, 1st July 2010
• Used MVP Approach
• Team of just 5 people • Since launch 5.7 million viewers
have visited the Portal
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Government MVP Slicing up a large problem to deliver incrementally
• Geographic locaCon • Type of service • Type of user
source Henrik Kniberg
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Take Time to Measure and Learn
Use your MVP to Test your Product or Service assumpCons…
…. because aSer all they are, untested assumpCons
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Take Time to Measure and Learn
Use your MVP to Test your Product or Service assumpCons…
…. because aSer all they are, untested assumpCons
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How can we learn more quickly what works, and discard what doesn't?
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piv·∙ot noun \ˈpi-‐vət\
change in strategy without a change in vision
per·∙se·∙vere verb \ˌpər-‐sə-‐ˈvir\
Scale and grow your Product or service with maximum acceleraCon
persevere pivot
Decisions based on metrics from these experiments is what propels the Lean Startup forward
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Persevere
Pivot
“Through this process of steering, we can learn when and if it’s /me to make a sharp turn called a pivot or whether we should persevere along our current path.”
-‐ Eric Ries
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Governance, the Steering CommiIee
• Governance is not adherence to a flawed plan
• Validate assumpCons of the business model • Decisions based on measurable results
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• You don’t know if you’re wrong unCl final compleCon
• Don’t bury important assumpCons
• A large business case largely built on untested assumpCons is a form of waste
Steer away from the staCc business case
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Driving the Dynamic Business Model
Focus on the Tangibles which can be measured by MVP
Living Document
Business Case should become a Business Model
Updated with validaCon and feedback from the MVP
Pivot or Persevere
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source www.ashmaurya.com
Business Model Canvas ( Alex Osterwalder )
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QuesCon moves from can the Product be built to should it be built
You know you have achieved product/market fit when you have validated the assumpCons and criteria for success defined in your business model.
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“Most aoempts to solve the problems with government IT have treated the symptoms rather than resolved the underlying system-‐wide problems. This has simply led to doing the wrong things ‘beoer’. “
-‐ System Error Fixing the Flaws in Government IT Report, March 2011
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• Tight budgets mean Government need to maximise value and minimise waste
• MVP allows us to validate our assumpCons early, with minimum investment
• Business Model means we persevere and accelerate or pivot to a new path that supports our vision
Summary to Startup
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Further Reading and References
AddiConal photos from: hop://www.freepik.com hop://commons.wikimedia.org
hop://thestartuptoolkit.com hop://LeanCanvas.com hop://www.businessmodelgeneraCon.com
