Summary of Eric Ries talk at Google

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Summary of Eric Ries talk at Google by Mind Map: Summary of Eric Ries talk at Google

1. bio stages

1.1. wrode code

1.2. managed ppl writing code

1.3. managed ppl managing ppl writing code

1.4. now

1.4.1. coaching ppl managing ppl managing ppl writing code

2. About

3. Link

3.1. http://blog.lookingforanswers.me/2011/04/lean-startup-book.html

4. But when bringing customers to usability tests - saw that all assumptions failed

5. Example

5.1. Personal experience with IMVU

5.1.1. They had a great strategy

5.1.2. All of the code was thrown out

5.1.3. He could have spent his time on the beach

5.1.4. His excuse for feeling better:

5.1.4.1. He learnt from it

5.1.5. What if instead of writing so much code, they would have written a mock download page describing the product

5.1.5.1. It would have resulted in the same result

5.1.6. Blank developed a system for finding your customer

5.1.7. This was very upsetting for him

5.1.7.1. something taking 3 hours is just as good as writing 25K lines of code

5.1.8. If he learnt the important thing on customer after 6 months, why did it take 6 months?

6. In real-life, all of the important work is in the photo-montage act, though its the most boring, from story-telling perspective

7. Help stop wasting the time of people doing startups

8. Lean Startup tries to make it a science, to stop wasting ppl's time

9. Waterfall copied from factory assembly line

9.1. moving goods from 1 dept to another

10. A thoery of enterpreneurship to guide our behavior

11. so, which of these are success stories, in the sense of meeting the vision & plan of founders & employees

12. a human institution trying to create something new, under conditions of high uncertainty

13. Goal

14. 5 Principles

14.1. Everyone are enterpreneurs

14.2. Enterpreneurship is management

14.3. Validated learning

14.4. "Build - measure - learn" loop

14.5. Innovation accounting

15. Consider the way startup stories are told

15.1. e.g.

15.1.1. Ghost busters

15.1.2. The social network

15.2. Stories of startups have 3 parts

15.2.1. The protogonist having a great idea

15.2.2. The photo-montage - bringing everything to work

15.2.3. Success & its implications

15.3. What do we do in that part that makes a difference

15.3.1. Figure out which customers to listen to, & which not

15.3.2. Prioritizing features

15.3.3. How do we make people accountable

15.4. How can we make the photo-montage part more effective

16. What is a startup

16.1. enterpreneurship is a career

16.1.1. doing it means you're no longer an engineer/designer/&c

16.2. Startup = Experiment

16.2.1. just like in science

16.2.1.1. hypothesis

16.2.1.2. thoery which suggest which experiments will test it

16.2.1.3. prediction

16.2.1.4. conducting an experiment

17. Wasting time

17.1. The solution is not technical

17.2. The problem is not building things efficiently

17.2.1. But rather building things that no one wants

17.3. Most startups fail

17.3.1. <map of web2.0 startups logos in 2006, predicted to change the world>

17.3.2. <same map in which the companies that were closed/acquired by 2009 are marked>

18. The dominant question

18.1. Not

18.1.1. Can it be built?

18.2. But

18.2.1. Should it be built?

18.2.2. Can it result in a sustainable business

19. Enterpreneurship is management

19.1. Our goal is to create an institution, not just a product

19.2. When we'll look at the way we manage work today in a few decades, we'd laugh on the primitive ways & absurd stupidity

20. Pivot

20.1. The 1st thing in the toolbox

20.2. What do successful startups have in common?

20.3. The successful startups don't have better ideas than the failed ones

20.4. Successful startups differ in how they handle difficulties:

20.4.1. they didn'g give up & went home

20.4.2. nor did they continued till they hit the ground

20.4.3. they pivoted

20.4.3.1. they held one firm leg in what they've learned so far

20.4.3.2. & moved the other leg a bit - changing just 1 aspect of their business at a time

21. The premise of Lean Startups

21.1. Reduce the time between pivots

21.2. Will increase our odds of success

21.3. before we run out of money

21.4. Speed wins

21.5. The runway:

21.5.1. how many pivot opportunity do I have left

21.6. figure out to pivot sooner

22. Methodology

22.1. Good for circumstances when problem & solution are known

22.2. this is long time after it was abandoned in assembly line

22.3. factories switched to Lean manufacturing

23. Achieving failure

23.1. If we're building something no one wants

23.2. What does it matter if we'er

23.2.1. on time

23.2.2. on budget

23.2.3. with high quality

23.2.4. with beautiful design

23.3. We're according to milestones

23.3.1. no body using our products as expected

23.4. That's what startup failure looks like

24. Lean manufacturing

24.1. Deming

24.1.1. "The customer is the most important thing in the production line"

24.1.2. If the customer doesn't care about some stuff, don't do it

24.2. When applied to software, the solution was Agile methodology

24.2.1. Unit of progress:

24.2.1.1. A line of working code

24.3. The problem with Agile

24.3.1. In startups - there's no customer to guide the programmers

24.3.1.1. We don't know who the customer is

25. R

25.1. Blank developed a system for finding your customer

25.2. Unit of progress:

25.2.1. Validated learning

25.3. If you don't know who the customer is, you don't know what quality is

25.3.1. the goal is to learn how to build a sustainable business

25.4. In lean manufacturing, there's a clear separation between value & waste

25.4.1. What's good to the customer is value

25.5. In Lean startup, value is only in what helps us learn

25.5.1. validated learning

25.5.1.1. backup learning quantitavily

25.5.2. everything else is a complete waste of time

25.5.2.1. eliminate it

25.6. Minimum Viable Product

25.6.1. Containing only what's necessary to learn whether our plan is correct or not

25.7. Feedback loop

25.7.1. Ideas ->

25.7.2. Buid ->

25.7.3. Code ->

25.7.4. Measure ->

25.7.5. Data ->

25.7.6. Learn ->

25.8. This is the pivot

25.9. The goal is to minimize time through the loop

25.9.1. Every advice that gets us faster in this feedback loop is good

25.10. Lean startup is about accelerating the feedback loop

25.10.1. Code faster

25.10.2. Measure faster

25.10.3. Learn faster

26. Innovation Accounting

26.1. How can you make people accountable for their work when they need to develop something new?

26.1.1. How can you assess their progress / achievements

26.2. Focus on 3 learning milestones

26.2.1. Tune th engine

26.2.1.1. Experiment on how to improve the metrics

26.2.1.2. Which assumes there's someone that can give us authorative defintive answer on design questions

26.2.1.3. Do split testing to verify that changes indeed change the metrics

26.2.2. Establish the baseline

26.2.2.1. build MVP

26.2.2.2. Measure how customers bahve right now

26.2.2.3. A model allowing to predict:

26.2.2.3.1. if customers behave currently in this way, we'll have zillions of them in the future

26.2.2.4. find out where you are now

26.2.2.4.1. e.g.

26.2.3. PIvot or persevere

26.2.3.1. When experiments diminish metrics, it's time to pivot

26.2.3.1.1. or when the growth derivative flattens, before hitting the target metrics

26.2.3.2. Schedule the meeting in advance for making the decision

26.2.3.3. It's not simple to determine whether a Product-Market fit was reached, but Lean Startup suggests a methodic "scientific" way to do that

26.3. Do specific per-customer predictions

26.3.1. Do specific per-customer predictions

27. Further questions answered in the coming book

27.1. How do we know when to pivot?

27.2. what's the relation between the Vision, Strategy, Product?

27.3. What should we measure?

27.4. How do products grow?

27.5. Are we creating value?

27.6. What's in the MVP?

27.7. Can we go faster?

28. Q&A

28.1. Which products should Google pivot on?

28.1.1. Google have a management problem

28.1.1.1. when launching a product, they have their brand name, & if it's needs pivot it's embarassing for Google

28.1.2. They should have launched in small scale without the Google brand

28.1.3. Companies should provide a platform for experimentation to developers

28.1.4. Have clear analytics of whether they succeed or not

28.1.5. Even though everything that Google launched immediately gets maximal exposure & download?

28.1.5.1. Yes

28.1.5.1.1. Marketing is something you can always do, but you shouldn't market trongly bad products

28.1.5.1.2. Really great products have an inherent organic growth capability

28.1.6. Pivots should be celebrated

28.1.6.1. Celebrate the learning, not the failure

28.1.6.2. Succeeded to get away from failure

29. Further reading

29.1. 4 steps to epiphany

29.1.1. Book by Steve Blank

29.2. Book coming out in sept, 2011

29.3. Conf

29.3.1. http://sllconf.com

29.4. Links

29.4.1. http://lean.st

29.4.2. http://startuplessonslearned.com

29.4.3. http://theleanstartup.com

29.4.4. @ericries

29.4.5. #leanstartup

29.4.6. eric@theleanstartup.com