bfbm(1-2016) startup with mvp
TRANSCRIPT
Prof. Dr.Aung Tun Thet
Startup With Minimum Viable Product (MVP)
Prof. Dr.Aung Tun Thet
Startup With Minimum Viable Product (MVP)
Definitions
ADOPTION CURVE
Minimum Viable Product (MVP)• “What could we make at a minimum,• to get our product functioning,• to prove it is a solution to a problem?”
• Minimum Viable Product Is Not a Product• It’s a Process
How founders think MVP will work
How MVP actually works
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Trial-and-Error World• One who can find errors the fastest wins• “Fail fast” • “Speed Wins”• “Lean”• “Agile”
Trial-and-Error World• Getting feedback from real users as quickly as possible
• Building product, writing marketing plan• Asking two questions: 1. What is the riskiest assumption?2. What is the smallest experiment I can do to
test this assumption?
MVP• Product with just enough features that could be sold
• Carrying out market analysis beforehand
MVP
Minimum Viable
Bad products no one wants to buy
Minimum + ViableProducts for startups to build
Products built by better financed companies
MVP
Lean StartupMethodology
Startups• Dedicated to creating something new • Conditions of extreme uncertainty• Mission: discover successful path to sustainable business
• Most fail• Preventable
Lean Startup Approach• More capital efficient • Leverage human creativity more effectively• Lessons from lean manufacturing• “Validated learning”
Lean Startup Approach• Counter-intuitive practices • Shift directions with agility• Altering plans inch by inch, minute by minute
Lean Startup Approach• Not wasting time creating elaborate business plans
• Test continuously• Adapt and adjust • Scientific approach • Creating and managing successful startups
Lean Startup • “Startup success can be engineered by following the process,
• which means it can be learned, • which means it can be taught.”
Lean Startup• Get desired product to customers' hands faster• Drive, steer, turn, and persevere• Principled approach to new product development.
Startups• Begin with idea for product that they think people want
• Spend months, years, perfecting product without ever showing to prospective customer
• Never spoke to prospective customers • When customers ultimately communicate through indifference > fails
Lean StartupApproach
Code Faster
Measure Faster
Learn Faster
• “By the time that product is ready to be distributed widely,
• it will already have established customers.”
Eliminate Uncertainty• Tailored management process • Not "just do it" approach• Create order not chaos by testing vision continuously
• Putting methodology around development of product
Work Smarter not Harder• Startup grand experiment • Answer question• Not "Can this product be built?" • But • "Should this product be built?" • "Can we build sustainable business around this set of products and services?"
Work Smarter not Harder• Not theoretical inquiry• First product• Get started with campaign• Enlisting early adopters• Solved real problems • Detailed specifications
Develop MVP
Lean Startup Methodology• Build-Measure-Learn feedback loop• Figure out problem to be solved • Develop minimum viable product (MVP) • Process of learning as quickly as possible
Lean Startup Methodology• Startup work on tuning engine• Involve measurement and learning • Include actionable metrics that demonstrate cause and effect question
Lean Startup Methodology• Startup utilize investigative development method called "Five Whys“
• Asking simple questions to study and solve problems
• Clear if company either moving drivers of business model or not
• If not, pivot or make structural course correction to test new fundamental hypothesis about product, strategy and engine of growth
Validated Learning
Validated Learning• Rigorous method for demonstrating progress• Development process shrink substantially• Figuring right thing to build - thing customers want and will pay for
• Not spend months waiting for product launch to change company's direction
Principles
Entrepreneurs are Everywhere
• Don't have to work in garage to be startup• See need • Get started• “Concierge MVP" technique - entrepreneur solves customer problems manually before automating solution; with customers, figuring out what really needs to be done
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• "Use customer feedback to improve the solution,• repeating the process to rapidly create an effective solution,
• that meets the customer service need."
• "Think big. • Start small. • Scale Fast."
Entrepreneurship Is Management
• Startup institution• Not just product• Requires new kind of management
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Validated Learning About Customers
• Startups exist not to make stuff, make money, or serve customers
• Exist to learn to build sustainable business• Learning validated scientifically• Running experiments to test each element of vision
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Validated Learning About Customers• Revenue alone not a sufficient goal• Focusing on it exclusively can lead to failure as surely as ignoring it altogether
• What matters proving viability of business model (“traction”)
Validated Learning About Customers• Customer Validation• Total revenue not very useful• How profitable is it on per-customer basis? • What’s the total available market? • What’s ROI on acquiring new customers? • How do existing customers respond to our product over time?
Innovation Accounting
• Startups exist not to make stuff, make money, or serve customers
• Exist to learn to build sustainable business• Learning validated scientifically• Running experiments to test each element of vision
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Innovation Accounting• Improve entrepreneurial outcomes• Hold entrepreneurs accountable• Focus on boring stuff: • How to measure progress• How to setup milestones• How to prioritize work• New kind of accounting
Build-Measure-Learn• Startup • Turn ideas into products• Measure how customers respond• Learn whether to pivot or persevere• Successful startup processes geared to accelerate feedback loop
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Product Development• “Good enough never is” • Inspirational• “This work is simply not good enough”• Create environment where courage thrives
Is "good enough" good enough?• Rules of thumb unhelpful• When should you settle for good enough and when should you push yourself to do your best?
• Dilemma that minimum viable product designed to solve
• Hard
Third Way• Action/paralysis not only options• “Customer is the most important part of the production line.”
• Quality defined in eye of customer - not by standards set by insiders - factors beyond reliability: design, ease of use, aesthetic appeal, and convenience
MVP• How can we build quality in if we do not yet know who the customer is?
• “If you do not know who the customer is, • you do not know what quality is”
Final Thoughts
MVP• Version of new product • Allows team to collect maximum amount of validated learning
• With least effort
MVP• What will the customer care about? • How will they define quality?
MVP• Startups simplify• How do you know which features are essential and which should go?
• No formula• Requires judgment
Pursuit of Learning• Product-centric• Ongoing • Commitment absolute• Execute, iterate, and learn• Get through build-measure-learn feedback loop with maximum speed
Thank You!