Lean Startup: Insider's Story

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There is a new approach to growing startups popularized by Eric Ries: "Lean Startup". Basic idea is that each startup should be as flexible as possible, should create rapid prototypes and test market assumptions using these prototypes. Flexibility is key to success (or at least to find out that your idea is not that good :-).Bayram and Oleg will explain how this approach is being used in Empatika and will present a real story about Squeek app they developed and marketed. Key topics covered:1. Lean Startup - a new approach to growing startups2. Flexibility is key to success3. Pivots: don't afraid to fail4. Key performance indicators (KPI) for an IT startup6. Lessons Learned and action items.

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  • 1. Lean Start-up Insiders Story http://squeek.ru
  • 2. Bayram Annakov Oleg Parinov crazy CEO JDI Project Manager
  • 3. WTF is start-up? WTF is lean?
  • 4. WTF = wikipedia to foolsLean Startup is a concept coined (and trademarked) by Eric Ries. Ries writes that lean startups are born out of the following three trends: 1. use of free and open source software, 2. application of agile software development methods, and 3. ferocious customer-centric rapid iteration, as exemplied by the Customer Development process[1].Lean Startup initially advocates the creation of rapid prototypes designed to test market assumptions, and uses customer feedback to evolve them much faster than via more traditional softwareengineering practices, such as the Waterfall model. It is not uncommon to see Lean Startups release new code to production multiple times a day[2], often using a practice known as ContinuousDeployment[3].According to the New York Times, "The term lean start-up was coined by Mr. Ries, 31, an engineer, entrepreneur and blogger. His inspiration, he says, was the lean manufacturing process, ne-tuned in Japanese factories decades ago and focused on eliminating any work or investment that doesnt produce value for customers." [4]Lean Startup is sometimes described as Lean Thinking applied to the entrepreneurial process[5]. A central tenet of Lean Thinking is to reduce waste. Lean Startup processes reduce waste byincreasing the frequency of contact with real customers, therefore testing and avoiding incorrect market assumptions as early as possible[6]. This approach attempts to improve on historicalentrepreneurial tactics by reducing the work required to assess assumptions about the market, and to decrease the time it takes a business to nd market traction. This is referred to as MinimumViable Product.In The Entrepreneurs Guide to Customer Development, Brant Cooper and Patrick Vlaskovits add a fourth element, and that is the use of powerful, low-cost and easy-to-use analytics. While somecharacteristics of lean startups have been practiced for years, the conuence of these trends is a recent phenomenon and offers the potential for unprecedented "speed of iteration" or "number oflearning cycles per dollar" as business hones in on product-market t[7].[edit]
  • 5. Our story
  • 6. Nov2010 Mobile Ad
  • 7. Mobile AdDeveloper Advertiser Advertising Network
  • 8. Prototype Feb2011
  • 9. Two-sided market more...Developer Advertiser more...
  • 10. Others
  • 11. Insight #1 Focus
  • 12. Focus on developersMar2011 We need a success story
  • 13. Change of plans!
  • 14. Change of plans! - security systems
  • 15. Change of plans! - security systems - online project management
  • 16. Change of plans! - security systems - online project management - rst personal computers
  • 17. Change of plans! - security systems - online project management - rst personal computers - collection of links to research papers
  • 18. Change of plans! - security systems - online project management - rst personal computers - collection of links to research papers - online game
  • 19. Change of plans! - security systems - online project management - rst personal computers - collection of links to research papers - online game - printer drivers
  • 20. SqueekApr2011 Get in touch with people nearby
  • 21. Group messagingLocation-basedSimple!and no ads...
  • 22. Insight #2 Understand your market
  • 23. First user testingApr2011 Be closer to user
  • 24. First user testingApr2011 Be closer to a user
  • 25. What is happening? How many people? What are they doing?May What is the cost of ad2011 campaigns?
  • 26. Key PerformanceIndicators (KPI)
  • 27. Customers (users) funnel iPhone users Visited the site Downloaded the app Opened the app Wrote the rst message Visited more than once
  • 28. Customers acquisition iPhone users Visited the site Downloaded the app Opened the app Wrote the rst message Visited more than once
  • 29. Retention iPhone users Visited the site Downloaded the app Opened the appWrote the rst message Visited more than once
  • 30. next steps in counting lifetime value of a customer (LTC) crash rate revenue/acquisition cost
  • 31. Insight #3 Count everything and double-checkThere is no product feature without counting
  • 32. Zero problem People need people to talk toMay2011
  • 33. TacticsFeel free not to choose Push notications Invite
  • 34. Insight #4:Strategy thinking
  • 35. Why realtime?June2011