Scrum Gathering 2012 Shanghai_创业创新分会场：揭秘lean startup – 产品负责人应该知道什么(Julien Mazloum)

Copyright © 2012 OutSofting. All Rights Reserved.

Demystifying the Lean startup

For product owners and entrepreneurs

Julien Mazloum（祝亮）

Scrum Gathering Shanghai – June 2012


Who am I?

Julien Mazloum 祝亮

• Canadian (Quebec) working in Beijing. 来自加拿大魁北克，目前在北京工作

• Consulting Director at OutSofting China. OutSofting中国区高级咨询师

• Agile training, coaching and consulting. 敏捷培训，指导，咨询

• Specialties: 特长

– Agile PO coaching. 敏捷PO指导

– Agile transformation coaching. 敏捷转型指导

• Agile Evangelist : Committed to expand Agile in China. 敏捷传教士：致力于在中国推广敏捷


Purpose 目标

Demystify the basics of the Lean Startup.


Warmup!


Video introduction about Product Ownership

关于产品负责人责任的介绍视频

Steve Blank on Product Management:

http://www.youtube.com/watch?v=8Xa_IAp75ig from (00:57 to 2:57)

http://www.youtube.com/watch?v=8Xa_IAp75ig


Findings 视频中的发现

Product management has always been an issue,

especially for innovative products:

产品管理一直是个问题，尤其是创新产品

• More than 90% failure because not the right product was

developed (no market for it).

• Less than 10% failure because the product was not well

developed.

What Agile Development did 敏捷开发做了什么

• Dramatic improvements in delivery 急剧改进交付

– Clear improvement on the 10%.

• Allowed responding to change 允许相应变化

– Limited improvement to the 90%.


Agile right now 现在的敏捷

Why do this product?

为什么做这个产品？

What does this product do?

这个产品做什么？

How to develop this product?

如何开发这个产品？


Who?谁？

Who takes care of the

Why and What in Scrum?

谁负责Scrum中的“为什么”和“做什么”？


Expectations on Product Owners

对PO的期望


Let’s start!

现在开始！


Case #0

The problem AND the solution are well known.

问题和解决方案都已知

Problem: known

Solution: known

Requirements

Analysis

Design

Coding

TestingProduct

Deployment

Waterfall!

瀑布！


Case #0

Known problem and known solutions do not really

exist in software development.

在软件开发中基本不存在问题和解决方案都已知的情况。


Case #1

Product Owner knows (most of) the WHY and WHAT of

the Product (simple and established products)

产品负责人知道大部分产品“为什么”和“做什么”

（简单产品和已有产品）

Problem: quite known

Solution: unknown

Agile development!


About case #1

This is in fact … quite rare. 事实上这种情况也很少。

Only true for products for which we already have an

existing business model (we know how to make

money with it) such as:

• have only too similar alternatives 相似的解决方案

– Example: are quite commoditized.

• do not really have other alternatives 没有其他选择

– Example: Cancer or AIDS drugs.

• stable utility software 稳定的实用软件

– Treated as a liability and not an asset.

– Example: redoing an internal Information System.


Case #2

Welcome to the real word!

欢迎来到现实世界！


Case #2

? Problem: unknown

Solution: unknown

?


Case #2

Product Owner is

not sure his vision corresponds to a real market need.

PO不确定他的愿景和真实市场需求一致

WHY is NOT certain, 不确定为什么

WHAT neither. 也不确定做什么

=> They need to be discovered. 他们需要被慢慢发现

Most potential value 最潜在的价值

Most uncertainty 最不确定的


What is a startup?

A startup is a human institution designed

to create a new product or service under

conditions of high uncertainty.


Startup

Startups are ALL about dealing with uncertainties!

The goal of the startup is to find a business model that

would allow it to grow into a self-sustainable business.

Managing a startup (entrepreneurship) is about

surviving all uncertainties to find a good business

model and build the business on it.

The failure of a startup is…. to stay a startup!

Therefore a startup is NOT a micro-company!


Much more than deciding what product to do!


Evolution 革命

FROM 从

TO 到


Key questions

How can we know if our product idea can lead to a

successful business?

How can get the fast feedback we need to build the

right product?

How can we make sure the right product still

supports the right business model?


Case #2:

Problem: unknown

Solution: unknown

Agile development!

Company Building

Customer Discovery

Customer Validation

Customer Creation

Customer development!


What is Lean startup

The application of Lean thinking to the entrepreneurial

process.

Lean startup =

Customer Development + Agile development.


What is Lean Thinking?

Focus on value creation from customer perspective.

• Waste elimination in the process.

Respect for people.

Relentless improvement.


Lean in the Lean startup

Lean thinking principle How the principle is

expressed in Agile

development

How the principle is

expressed in the Lean

startup

Focus on value creation

(removing waste in the

process)

Working on small valuable

batches of work with high

quality (no hand-offs, no

rework, no task switching).

The biggest waste is

building a product that

nobody wants. The Lean

startup engages very early

with the users to eliminate

this waste

Respect for people (the

people who do the work

decide how to do it)

Self-organized team who

decide how to do the work

Not waisting people’s time

developing something

nobody will use.

Users are at the center of

the process

Relentless

improvemeembedds nt

Agile methods such as

Scrum continuous

improvement

The business model is

constantly refined and

improved.


Customer development, the bigger picture!

客户开发，更大的视野！

From the book : “The four steps to the epiphany”.

Company Building

Customer Discovery

Customer Validation

Customer Creation

This product addresses a real need.

There are customers for this.

There is VALUE in this idea。

We can have customers

and make a business

out of this idea.

GROWTH and PROFITS

are possible!

pivot


Customer development, the bigger picture!

客户开发，更大的视野！

Company Building

Customer Discovery

Customer Validation

Customer Creation

Validating the vision

Validating the strategy

Validating the product

pivot


The key of customer discovery and validation.

Any product vision relies on assumptions.

任何产品的远景依赖于假设

The key is to validate these assumptions as quickly

as possible (based on facts).

关键是依据事实尽快确认假设是否合理

Pivot or persevere.

调整或坚持

Speed of the pivot is key!

Customer Discovery

Customer Validation

pivot


Example

Hidden assumptions （假设）:

- Users do not want to use a new IM.

- Users would invite their existing IM contacts.

- Adults would be interested to try it.

- Users agree to install the plugin to their existing IM.

3D Avatar plugin that can work on any IM 7 years.

Many Venture Capitalists and strategists said it is

absolutely great idea.


Let’s use science!

Experimenting to learn on our assumptions is the key.


Learning

Learning is the essential unit of progress for a

startup.

Validated learning is backed by empirical data

collected from real customers.

Value hypothesis: Tests whether a product or

service really delivers value to customers once they

are using it.

Growth hypothesis: Tests how new customers will

discover a product or service.


Minimum Viable Product (MVP)

Minimum Viable Product (MVP) is the smallest possible

product to test your assumptions.

Early adopters are the customers who feel the

strongest need for the product.


MVP versus perfection

We do not know what quality is if we do not know who

the customer is.


Innovation accounting

Traditional accounting versus innovation

accounting.

Innovation accounting is about providing evidence

that a sustainable business can be built arounf its

products and services:

• Establish the baseline

• Tuning the engine

• Pivot or persevere

Split tests

Good metrics (Actionable, Accessible, Auditable).

Beware of vanity metrics!


Pivots

Why pivoting is heard

Different pivots.

• Zoom-in pivot

• Zoom-out pivot

• Customer segment pivot

• Customer need pivot

• Platform pivot

• Business architecture pivot

• Vaue capture pivot

• Engine of growth pivot

• Channel pivot

• Technology pivot


Pivot or persevere


Customer Creation (or ``acceleration``)

We make sure we can grow our customer base

We need to validate our business model and continue to validate • the assumptions for growth.

• The business model sustainability.

3 engines of growth: • Sticky

• Viral

• Paid.

We lay the foundations for an adaptable and learning organizations (technical excellence, 5 whys, quality focus…).

Customer Creation


The importance of product-market fit

What management is about:

Market -> Product -> Process -> Structure.

20th century focussed on ->

21st century shall focus on ->


Example: The killer game


Case #2: LEAN STARTUP

Problem: unknown

Solution: unknown

Agile development!

Company Building

Customer Discovery

Customer Validation

Customer Creation

Customer development!


Conclusions:

Lean startup is about managing innovation and its

uncertainties.

Startups can happen in large companies.

Validated learning is the key measure of progress.

We know our initial business plan is wrong so

identify the main assumptions and iterate to learn on

them.

The tools (MVP, split-tests, business model canvas)

might evolve in the future.

The spirit will redefine management in the 21st

century.


My contact info

My email: [email protected]

My Skype ID: jmazloum

My Twitter ID: @jmazloum

My LinkedIN profile:

cn.linkedin.com/in/julienmazloum

The Slides: www.outsofting.com/Demystifying_Lean_startup_Shangh

ai_2012.pdf

http://www.outsofting.com/The_2011_PO_Toolkit_AgileTourBJ2011.pdf

http://www.outsofting.com/The_2011_PO_Toolkit_AgileTourBJ2011.pdf



An explicit framework and quantitative tool to

guide product learning 指导产品学习一个明确的框架和定量工具

The Scrum + Opportunity Engineering framework provides a

strong proof of business viability:

Scrum＋机遇工程框架提供了商业可行性的有利证明 • Make the financial model across the chain of consumption and state

the assumptions (business factors)

• 让经济模型跨越消费和假设的链接（商业因子）

• Prioritize business factors 对商业因子排序

• Commit to the most important business factors 致力于最重要的商业因子

• Reduce their uncertainty by testing them in real life 通过真实的测试来减少不确定性 – Use Agile to implement the features that allow to implement successfully these

business factors

• Refine and iterate 优化并迭代


Summary! 总结

We use

• Agile delivery to understand the customer needs

• 敏捷交付来理解客户需求

• the early adopters for feedback

• 先行者获得反馈

to learn on the RIGHT product to DO. 学习构造正确的产品。

Think about the MVP (Minimum Viable Product): 考虑最小可行产品（MVP）

• The most cost-effective way to test the hypothesis underlying your product vision.

• Get only the feedback necessary to validate your vision

Customer Discovery

Customer Validation


Lean startup References

http://steveblank.com/2010/03/04/perfection-by-subtraction-

the-minimum-feature-set/

http://torgronsund.com/2010/01/12/minimum-viable-product-

revisited-the-mvp-curve/

http://www.slideshare.net/venturehacks/the-lean-startup-2

http://www.startuplessonslearned.com/2008/09/lean-

startup.html

http://andrewchenblog.com/2009/12/07/minimum-desirable-

product/ : MVP, MDP, MFP

http://www.ashmaurya.com/2009/10/how-i-built-my-

minimum-viable-product/

http://steveblank.com/2010/03/04/perfection-by-subtraction-the-minimum-feature-set/













http://torgronsund.com/2010/01/12/minimum-viable-product-revisited-the-mvp-curve/




















http://www.startuplessonslearned.com/2008/09/lean-startup.html



http://andrewchenblog.com/2009/12/07/minimum-desirable-product/





http://www.ashmaurya.com/2009/10/how-i-built-my-minimum-viable-product/














Other references

What is customer development?

http://www.startuplessonslearned.com/2008/11/what-

is-customer-development.html

The book that describes “Opportunity Engineering”.

The Lean startup book.

The Scrum + Opportunity Engineering framework:

http://www.outsofting.com/FromDevelopmentAgility

ToBusinessAgility.pdf

http://www.startuplessonslearned.com/2008/11/what-is-customer-development.html







http://www.amazon.com/Unlocking-Opportunities-Growth-Uncertainty-Limiting/dp/0132237903/ref=sr_1_1?ie=UTF8&s=books&qid=1308929397&sr=8-1

http://www.amazon.com/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898

http://www.outsofting.com/FromDevelopmentAgilityToBusinessAgility.pdf

http://www.outsofting.com/FromDevelopmentAgilityToBusinessAgility.pdf