1. Lean Startup and the Enterprise Applying Lessons from Entrepreneurs to Large Organizations Brian Bozzuto

2. Many Startups Began Pretty Lean Dell Founded 1984 Started with about $300k from family members Sold 2013 for $24 Billion Apple ► Founded 1976 ► Early capital raised was $250k ► Currently worth ~ $400 Billion www.synerzip.com

3. Tech Startups Weren’t Always Lean… Founded 1999 Raised $375 Million Closed 2001 ► Founded 1998 ► Raised $80 Million ► Closed 2000 Pets.com ► Founded 1998 ► Raised $280 Million ► Closed 2001 www.synerzip.com

4. And then… Google Finance www.synerzip.com

5. Why Lean & Startups? Assembly line at Motomachi Plant (1959), Toyota www.synerzip.com

6. What Can We Learn from Startups? The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. Ries, Eric (2011-09-13). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (p. 20). Random House, Inc.. Kindle Edition. The goal of a startup is to figure out the right thing to build—the thing customers want and will pay for—as quickly as possible. Ries, Eric (2011-09-13). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (p. 20). Random House, Inc.. Kindle Edition. www.synerzip.com

7. Iteration Plan How Does this Apply to Agile? Product Product Backlog 2-4 Weeks Inspect & Adapt 24 Hours www.synerzip.com

8. Iteration Plan Product Product Backlog 2-4 Weeks Inspect & Adapt 24 Hours The Myth of the Product Owner The single, wring able neck The voice of the Customer The decider Responsible for the Return on Investment Able to answer requirement questions Always knows what to do next The single, wring able neck The voice of the Customer The decider Responsible for the Return on Investment Able to answer requirement questions Always knows what to do next Exactly how is the product owner supposed to do all of this? www.synerzip.com

9. Key Principles of Lean Startup Entrepreneurs are everywhere Entrepreneurship is management Validated learning is valuable in its own right We can measure progress with innovation accounting IdeaBuild Product Measure DataLearn www.synerzip.com

10. Lean Startup isn’t for Everything © 2013 BigVisible Solutions10 Simple Best Practice Complicated Good Practice Complex Emergent Chaos Novel Work with experts to inform our hypothesis Run experiments to gain new knowledge Sense Analyze Respond Sense Categorize Respond Probe Sense Respond Act Sense Respond Cynefin framework by David Snowden, Cognitive Edge www.synerzip.com

11. This is All Great, But…  “Experiments are risky for us”  “We don’t sell directly to customers in high quantities”  “Releases take us a long time” You don’t work for a startup! www.synerzip.com

12. Build IdeaBuild Product Measure DataLearn Agile practices help us build faster Sometimes “production ready code” is too much Lean practices look to build the simplest thing to test our theories Agile practices help us build faster Sometimes “production ready code” is too much Lean practices look to build the simplest thing to test our theories www.synerzip.com

13. Make it Safe to Test Testing has some risks… Cost incurred of testing Negative impact to brand Making the wrong decision Perception of failed tests as “failure in general” www.synerzip.com

14. Playing in Sandboxes www.synerzip.com

15. A Sandbox May be Theoretical www.synerzip.com

16. Wizard of Oz Testing www.synerzip.com

17. Measure IdeaBuild Product Measure DataLearn Focus on actionable metrics to inform decisions Beware vanity metrics that just flatter us Focus on actionable metrics to inform decisions Beware vanity metrics that just flatter us www.synerzip.com

18. Which of these metrics provide the most insight into a product? Source: Adapted from Dave McClure a.1,000,000 unregistered unique visits b.500,000 visitors who view 2+ pages c.250,000 visitors who engaged for 10+ seconds d.20000 users with registered email address e.1000 monthly subscribers Not All Metrics are Created Equal www.synerzip.com

19. An Example… Let’s talk about this box… www.synerzip.com

20. Identify Measures for Learning Start Up Metrics for Pirates Acquisition Activation Retention Referral Revenue Source: adapted from Dave McClure AARRR!!! www.synerzip.com

21. Identifying B2B and Internal Metrics Behavior Driven Adoption Usage patterns User behaviors User Feedback Net Promoter Score User Journaling www.synerzip.com

22. Learn IdeaBuild Product Measure DataLearn Test hypothesis and learn based on collected data Be aware of our cognitive biases when constructing tests and evaluating results Test hypothesis and learn based on collected data Be aware of our cognitive biases when constructing tests and evaluating results www.synerzip.com

23. © 2013 BigVisible Solutions23 Source: Alex Osterwalder www.synerzip.com

24. © 2013 BigVisible Solutions24 Level 1 Checklist www.synerzip.com

25. © 2013 BigVisible Solutions25 Source: Alex Osterwalder For whom are we creating value? www.synerzip.com

26. © 2013 BigVisible Solutions26 Source: Alex Osterwalder What value do we deliver to the customer? www.synerzip.com

27. © 2013 BigVisible Solutions27 Source: Alex Osterwalder How do we deliver the value we create to the customer? How do we create & maintain relationships with our customers? www.synerzip.com

28. © 2013 BigVisible Solutions28 Source: Alex Osterwalder How much will these customers pay for the value we create? How much will this cost to create and maintain? www.synerzip.com

29. © 2013 BigVisible Solutions29 Source: Alex Osterwalder Who and what will we need to create this value What will we do with these resources to build value www.synerzip.com

30. © 2013 BigVisible Solutions30 Source: Alex Osterwalder Who would we partner with that will provide us with Key Resources or Key Activities www.synerzip.com

31. © 2013 BigVisible Solutions31 This level of understanding is a good starting point. www.synerzip.com

32. © 2013 BigVisible Solutions32 Level 2 Hypothesis www.synerzip.com

33. “I wonder how much of this is reality…” © 2013 BigVisible Solutions33 ?? ?? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder www.synerzip.com

34. © 2013 BigVisible Solutions34 Level 3 Validation www.synerzip.com

35. “Let’s validate our riskiest assumptions” © 2013 BigVisible Solutions35 ?? ?? ? ? ? ? ? ? ? ? Source: Adapted from Alex Osterwalder www.synerzip.com

36. © 2012 BigVisible Solutions36 This is most likely your Riskiest Assumption Source: Adapted from Alex Osterwalder www.synerzip.com

37. © 2012 BigVisible Solutions37 This is most likely your other Riskiest Assumption www.synerzip.com

38. © 2012 BigVisible Solutions38 What happens when we subtract costs from revenue? Source: Adapted from Alex Osterwalder www.synerzip.com

39. Putting It All Together… www.synerzip.com

40. A View of Value Delivery © 2013 BigVisible Solutions40 Value Time Prioritize Learning Prioritize Value Watch for Gold Plating www.synerzip.com

41. One Small Thing You can Do Tomorrow Map out your organization’s business model canvas www.synerzip.com

42. Another Small Thing You can Do Tomorrow Add a column to validate assumptions after you build something www.synerzip.com

43. Thank you! To Learn More You can read more on our blog (www.BigVisible.com)www.BigVisible.com Email us at info@bigvisible.com info@bigvisible.com Any Question? www.synerzip.com

44. 44 www.synerzip.com Hemant Elhence hemant@synerzip.com 469.322.0349 Questions?

45. Software product development partner for small/mid-sized technology companies Exclusive focus on small/mid-sized technology companies, typically venture-backed companies in growth phase By definition, all Synerzip work is the IP of its respective clients Deep experience in full SDLC – design, dev, QA/testing, deployment Dedicated team of high caliber software professionals for each client Seamlessly extends client’s local team, offering full transparency Stable teams with very low turn-over NOT just “staff augmentation”, but provide full mgmt support Actually reduces risk of development/delivery Experienced team - uses appropriate level of engineering discipline Practices Agile development – responsive, yet disciplined Reduces cost – dual-shore team, 50% cost advantage Offers long term flexibility – allows (facilitates) taking offshore team captive – aka “BOT” option Synerzip in a Nut-shell www.synerzip.com

46. Our Clients www.synerzip.com

47. 47 Call Us for a Free Consultation! www.synerzip.com Hemant Elhence hemant@synerzip.com 469.322.0349 Thanks!