1. Using Agile Methodology for Market Feedback in Risky and Uncertain Early Product Development
Lean Startup
Presented by:
Damian Dingley, Vantage Software Inc. & Veracity Solutions

2. Introduction “The Lean Startup” by Eric Ries
or “Improve the success rate of new innovative products”
New product is unpredictable
Apply the scientific method to early product development.
Build, test, learn and pivot –quickly.
Reduce uncertainty and foster commitment.
Don’t measure doing, measure output and results.

3. Applies to any new product development:
Large Corporations
Garage startups

4. 3 Principals Vision Steer Accelerate Entrepreneurial management
Build-measure-learn feedback loop
Accelerate
Velocity improvements using Lean, Agile and Kanban
Just do it mentality. Manage the enthusiasm!

5. Build-Measure-Learn Feedback Loop
Ideas
Build
Product
Measure
Data
Learn

6. Ideas Leap of faith assumptions High uncertainty Temper with:
Build
Product
Measure
Data
Learn
Ideas
Leap of faith assumptions
High uncertainty
Temper with:
Hypothesis
Try and Test (as soon as possible)
Prioritize based on business value and risk
Epics and User Stories describing vision & hypothesis with tests to measure outcomes

7. Build MVP –Minimum Viable Product Guidelines: Lacks features
Ideas
Build
Product
Measure
Data
Learn
Build
MVP –Minimum Viable Product
Guidelines:
Lacks features
Minimum effort
Designed to alter customer behavior (for the better)
Aim to deploy quickly
Here are some notes
Try some

8. Product Deploy and Observe (Get it in front of the customer)
Ideas
Build
Product
Measure
Data
Learn
Product
Deploy and Observe
(Get it in front of the customer)
Guidelines:
Capture feedback
Observe reactions
Here are some notes
Try some

9. Measure Innovation accounting Guidelines: Capture feedback
Ideas
Build
Product
Measure
Data
Learn
Measure
Innovation accounting
Guidelines:
Capture feedback
Observe reactions
Collect information needed to validate hypotheses and tests identified in the User Story
Quantitative = are our efforts & ideas bearing fruit.

10. Data Collect useful data – Market, customer behavior & feedback
Ideas
Build
Product
Measure
Data
Learn
Data
Collect useful data –
Market, customer behavior & feedback
Qualitative & Quantitative
Apply cohort analysis
Guidelines:
Group customers
Observe group performance
Qualitative –users like/dislike
Quantitative – how many?
Cohort example:
New customers who joined broken into groups –
Registered
Registered and logged in
Registered, logged in and requested further info
Registered, logged in, purchased or subscribed (conversion/action)

11. Learn Use feedback to learn Test against original hypothesis
Ideas
Build
Product
Measure
Data
Learn
Learn
Use feedback to learn
Test against original hypothesis
Pivot (or Persevere)
Guidelines:
Adjust priorities on the backlog
Create new user stories
Update release plans
No point building something nobody uses or wants!

12. Pivot or Persevere? Decision time -based on facts (and emotions)
Facts –quantitative and qualitative
Emotions –channel human creativity in most productive form
Guidelines:
Was the hypothesis correct?
Consider as part of the regular vision & release planning effort
If pivoting, keep one foot in the previous cycle/iteration while executing fundamental change in strategy.
/zoom in
/zoom out
/customer segment
/customer need
/platform
/business architecture
Pivot examples/types – “special kind of change, designed to test a new fundamental hypothesis”.
Zoom in.
Zoom out.
Customer segment.
Customer need.
Platform.
Business –B2B, Appliance, Enterprise, high margin-high cost

13. Iterative Development
Ideas
Build
Product
Measure
Data
Learn
Not just development milestones, learning milestones too!

14. Kanban & Agile = Accelerate
Backlog
In Progress
Built
Validate A D F B E C
Backlog
In Progress
Built
Validate G D F H B E C A
No bucket contains more than three Epics/User Stories.
Eg.
Epic = Customers interested in signing up
Epic = Customers would engage in site tools (rentention)
Epic = Customers would tell friends (socialize)
2 or three iterations split-testing, adding functionailty –focusing on groups and split group of customers and compare
Growth not matching expectations.
Pivot = Zoom on specific product feature.
Backlog
In Progress
Built
Validate I G D H E F C A

15. Damian Dingley, Vantage Software Inc. & Veracity Solutions
Thankyou Using Agile Methodology for Market Feedback in Risky and Uncertain Early Product Development
Lean Startup
Presented by:
Damian Dingley, Vantage Software Inc. & Veracity Solutions