Tech Talk: Succeeding with a LEAN Innovation Process
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The document discusses an approach called Lean Innovation to reduce the failure rate of new products. It recommends three steps: 1) Document your initial business plan or "Plan A", 2) Identify the riskiest assumptions in the plan, and 3) Systematically test those assumptions through experiments to validate problems and solutions with customers before building the full product. This approach advocates searching for the right solution instead of executing prematurely on ideas without customer validation. It also recommends scaling ideas in stages through three phases: problem/solution fit, product/market fit, and scale.
Tech Talk: Succeeding with a LEAN Innovation Process
- 1. Succeeding with a Lean Innovation Process Ash Maurya - Founder of LEANSTACK, Author of “Scaling Lean” IET10T CA ACCELERATOR ZONE
- 3. WHY do most new products fail?
- 4. Here are a dozen reasons 1. No funding 2. Poor team 3. Poor product 4. Bad timing 5. No customers 6. Competition 7. Lack of focus 8. Lack of passion 9. Bad location 10. Not profitable 11. Burn out 12. Legal issues
- 6. All my ideas started out as awesome ideas.
- 7. Not all them became awesome products.
- 8. Good ideas are rare and hard to find.
- 9. So I was ready for the search process.
- 10. But what really bothered me was my cycle time between ideas.
- 11. 18-24 months between ideas.
- 12. Life’s Too Short to Build Something Nobody Wants.
- 16. BACKWARDS
- 17. Show me traction
- 18. How does this solve my problem?
- 20. #1reason why new products fail
- 21. We waste needless time, money, and effort building the wrong product.
- 23. Your business model, NOT your solution, is THE product. 1st MINDSHIFT
- 24. http://RunningLean.co 200+ pages of HOW to do this! 575+ 5-Star reviews
- 25. 01 Document your Plan A META-PRINCIPLES 02 Identify the riskiest parts of your plan 03 Systematically test your plan
- 27. Reasonably smart people can rationalize anything but entrepreneurs are especially gifted at this.
- 28. Business Model versus Business Plan
- 29. Business Model versus Business Plan A document investors make you write that they don’t read
- 30. Business Model versus Business Plan A single diagram of your business
- 31. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Key Metrics Key activities you measure Channels Path to customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution- Share Alike 3.0 Un-ported License. PRODUCT MARKET
- 35. Problem Top 3 problems Solution Top 3 features Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Unfair Advantage Can’t be easily copied or bought Customer Segments Target customers Key Metrics Key activities you measure Channels Path to customers Cost Structure Customer Acquisition Costs Distribution Costs Hosting People, etc. Revenue Streams Revenue Model Life Time Value Revenue Gross Margin Lean Canvas is adapted from The Business Model Canvas (http://www.businessmodelgeneration.com) and is licensed under the Creative Commons Attribution- Share Alike 3.0 Un-ported License. PRODUCT MARKET
- 36. Identify the riskiest parts of your plan Document your Plan A
- 38. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A
- 39. What is an Experiment?
- 40. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A
- 41. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A Business Model Development Process
- 42. Blog Teaser Page Iterated Time How I Wrote My Book RUNNING LEAN Illustrated
- 52. ROADSTER
- 53. WHY did they use the Lotus Esprit versus another car model?
- 54. STAGE 2: MODEL S
- 55. STAGE 3: MODEL 3
- 56. Scale your idea in stages. 2nd MINDSHIFT
- 57. 3 Stages of a Product PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE Stage 1 Stage 2 Stage 3
- 58. 3 Stages of a Product PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE Do I have a problem worth solving?
- 59. You don’t need to build a product first to find customers. COUNTER-INTUITIVE PRINCIPLE
- 60. 3 Stages of a Product PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE Have I built something people want?
- 61. You don’t need lots of customers to validate your business model. COUNTER-INTUITIVE PRINCIPLE
- 62. 3 Stages of a Product PROBLEM/SOLUTION FIT PRODUCT/MARKET FIT SCALE How do I accelerate growth?
- 63. Establishing repeatability is a pre-requisite for growth. COUNTER-INTUITIVE PRINCIPLE
- 64. Systematically test your plan Identify the riskiest parts of your plan Document your Plan A Business Model Development Process
- 68. Document your Plan A Identify riskiest parts of your plan Time
- 69. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Time
- 70. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Time
- 71. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Time
- 72. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Time
- 73. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Time Product/Market Fit
- 74. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Scale Verify Quantitatively Time Product/Market Fit
- 75. Document your Plan A Identify riskiest parts of your plan Systematically test your plan Understand Problem Define Solution Problem/Solution Fit Validate Qualitatively Scale Verify Quantitatively Time Product/Market Fit
- 76. Search before execution. 3rd MINDSHIFT
- 78. You can’t brute force a solution…
- 79. Starting with a solution is like building a key without a door.
- 80. ASH MAURYA @ashmaurya ash@leanstack.com Get more content here: LeanStack.com