+ All Categories
Home > Documents > The Lean Startup by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf ·...

The Lean Startup by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf ·...

Date post: 07-Feb-2018
Category:
Upload: lekhuong
View: 225 times
Download: 2 times
Share this document with a friend
16
The Lean Startup by Eric Ries www.stringinfo.com Certified 8(a) and MBE
Transcript
Page 2: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

What’s a startup

Our definition: A “startup” is a human institution designed to create a new

product or service under conditions of extreme uncertainty

Includes both

• Garage startup: the stereotypical view of a startup

AND

An established company’s attempts to create a new product or service

2

Page 3: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Problems faced by startups

Startups don’t know who customer is or what product should be

Two approaches

1) Detailed business plan = Market research + forecasting + planning +

whiteboard strategizing

OR

2) Just do it! Wing it and hope for the best

3

Page 4: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Traditional business planning

Traditional strategic planning is useless because

In a startup (as we’ve defined it), you DON’T KNOW: o Who is the customer?

o What is the product or service that is in demand?

It takes months to complete by which time the marketplace could have

changed

End-result: You’re left spinning your wheels via market research studies/

focus groups/ whiteboard strategizing analysis-paralysis

4

Page 5: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Why not “just do it”?

If you “just do it”, you are guaranteed to succeed – at seeing what happens!

You may get 5 customers and 5 different opinions – what’s next?!

If you have unclear hypothesis, the next step is unclear; and subsequent

steps even more so

A handful of the “just do it” camp will succeed via luck – and they’ll write

books about how they succeeded because they stuck to their original vision,

and be feted for their foresight. The sad truth is that their stories are all ex-

post-rationalization (“survivor bias”)

5

Page 6: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Lean startup idea

Helps you address extreme uncertainty that is single biggest challenge of a

startup

Can begin immediately

Instead of complex full-blown plan, you start with

• Initial hypothesis

• Assumptions behind the hypothesis

• A Minimum Viable Product or Service Offering (MVP) to test this

hypothesis

• Testable experiments instead of market research/ focus groups/

whiteboard strategizing/ just “doing it”

6

Page 7: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Build-Measure-Learn model

7

Ideas

Build

Product

Measure

Data

Learn

Page 8: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Build-Measure-Learn (BML) model

Step 1: Build a Minimum Viable Product (MVP) per initial hypothesis (BUILD)

Step 2: Run experiments in market to measure performance vs ex-ante

projections (MEASURE)

Step 3: Based on data, you validate or refute your hypothesis and original

assumptions (LEARN)

Step 4: Decide whether you want to stick with original idea (PERSEVERE),

refine (PIVOT) or shut down

Ultimate goal: to minimize total time through the BML feedback loop

8

Page 9: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Build

Start with an initial hypothesis

Convert this idea into a product Minimum Viable Product (MVP)

• Don’t worry about quality beyond what is minimum required to test the

hypothesis, because if you don’t know who the customer is, you don’t

know what quality is!

• All you’re looking for is something that enables you to do a full turn of

the Build-Measure-Learn loop i.e, to test fundamental business

hypothesis

9

Page 10: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Measure

Four steps

1) Use MVP to establish real data on where company is right now

2) Tune engine from baseline towards ideal

3) Measure progress and then determine whether to

4) Pivot or persevere

10

Page 11: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Learn

Critical: the goal of a startup is not

• How much is being built OR

• How much is being “learnt” (“I learnt a lot” is oldest excuse in book for

failure of execution!)

True goal of a startup = “Validated learning”!

Validated learning:

• Not ex-post rationalization or a good story designed to hide failure

• Should help refute or validate hypothesis STRONGLY!

• More concrete, more accurate & faster than market forecasting or

classical business planning

11

Page 12: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Learn

Fundamental duty of startup is to

1) Turn ideas into products

2) Measure how customers respond i.e, find out what they really want,

NOT what they “say” they want, or what “we think” they should want.

Most of the time customers don’t know what they want in advance

3) Then decide whether to pivot or persevere

12

Page 13: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

Decision time: Pivot or persevere

MVPs often result in failure• Don’t give up immediately

Option could be to

• Persevere if aspects of hypothesis still hold promise

OR

• Pivot i.e, keep one foot rooted in what we’ve learned so far, while

refining strategy.

13

Page 14: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved 14

About String-A decade of experience in Title & Mortgage

2004String starts

operations in US

2007

1 of 500 fastest growing

companies in US

2008Smart CEO Future 50

Award

2009

Successfully weathered

mother of all storms

2011Certified under ISO

27001:2005

2013

A TRUSTED name

in Title Insurance

Highlights

HQ in Wash DC Metro area

3 global delivery centres

Strong local presence

Over 350 processes for 75

customers

Serving the Top-4 Underwriters

Affiliations Citations

Page 15: The Lean Startup  by Eric Riesstringinfo.com/.../uploads/2014/02/The-lean-startup-Eric-Ries2.pdf · The Lean Startup by Eric Ries  Certified 8(a) and MBE

String. All Rights Reserved

SE

RV

ICE

S

IND

US

TR

IES

15

Services Portfolio

Making the real estate industry more efficient

Title Insurance

Title Production

Closing Support

Curative Processing

Other VMC Services

Title Plant Building

Residential Mortgage

Loan Processing

Underwriting

Closing Support

Post-Closing Support

Compliance

Quality Assurance

Data, Research & Analytics

Software Development & Integration

1

2

3

4

Consulting5

Commercial Real Estate

Property Management

Leasing & Brokerage

Facilities Management

Investment Management

Corporate Real Estate

Services


Recommended