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Lean Product Development
Transcript of Lean Product Development
Director: Anders Braekken
Most Startups Fail.
Lean Product Development
A Startup is a Human institution designed to create a new product or service under conditions of extreme uncertainty.
"Markets that don't exist don't care how smart you are."
Mark Andreesen, Founder of Netscape
5. The art of Pivoting
1. Leap of Faith Assumptions
3. Engines of growth framework
2. Minimum Viable Product
4. Validated Learning
"The aim of the project is to develop the most versatile and innovative helmet for non-motorized action sports"
Optimization: changes in the product
Pivot: changes in the strategy
"A world where helmets are the most invaluable equipment for action sports"
"To provide action sports enthusiasts with the most versatile and technologically advanced helmet to satisfy last customer digital needs."
"An action sports universal helmet with a built-in waterproof housing for the use of the smartphone features such as the camera, GPS or music player."
Intrinsic foundation of the company.
Broad, stable and long lasting
Conceived to try to make vision come to life
Built to implement strategy
Found a new Startup
Leap of Faith Assumptions
1. Value hypothesis
2. Growth hypotheses
3. Other hypotheses:
"Consumers want to record videos, take pictures, and listen to music with a smartphone while doing action sports in a way that their smartphone remains safe"
"Once consumers start using the product, as a side effect of product usage, the first early adopters will bring more early adopters until the product is ready to be mass produced."
It is technically feasible to design a helmet with a built-in waterproof housing.
If we build a helmet to solve their particular need, customers are willing to purchase it.
If we manage to develop a prototype with a waterproof built-in housing, it will not affect the design in a negative way.
Our potential customers are willing to purchase it from us, a young startup with no prior experience on protection gear.
Minimum Viable Product (MVP)
An MVP is a version of the product that enables a full turn of the build-measure-learn feedback loop with a minimum of effort.
In-product split testing
Removing essential features
Mechanical prototype of the helmet
With the built-in waterproof housing
Without any buttons, just a hole to manually use the camera of the helmet
Sixteen weeks of product development
Pivoting our strategy: a Smoke test
Open innovation platform to launch a smoke test
Two weeks of product development only.
Allowing us to start the feedback loop sooner
Pivot or persevere?
A pivot is a shift in one aspect of your Startup focus
One of the most difficult decisions:
Ten different types. Some examples:
Business Architecture pivot
Engine of growth pivot
"Our potential customers will tell us how we should build the helmet before we do so, through an open innovation platform"
Which of our efforts are value creating and which are wasteful?
It should the first priority of every entrepreneur:
It helps to decide whether to pivot or not.
It helps develop a sustainable business model
It helps build the
Engines of Growth
Every user adds 'x' users
Customers want to use the product again, and again, and again...
Revenues per customer minus cost to acquire > 0
From 16 weeks to 2 months
From thousands of dollars to 300€
More chances to succeed
Long operating history
Relatively static environment
No hypotheses tested yet