The Lean-start up Flashcards
Startup success can be engineered by
Following the right process, which means it can be learned, which means it can be taught
Product Development Conventional Mentality
Bosses were managers or marketers, and my peers worked in engineering and operations…
Rudimentary strategies lead startups to…
Tremendous waste: startups that built products nobody wanted
Lean-startup definition of Startup:
A human institution designed to create new products and services under conditions of extreme uncertainty
What startups do not yet know…
Who their customer is or what their product should be.
What is the “Just do it” school of startups
The “just doers” believe that if management is a problem, the Solution is to just do.
“Vision”
Use of a scientific experimentation to discover how to build a sustainable business
“Steer”
Build-Measure-Learn feedback loop. Beginning with leap-of-faith assumptions that cry out for a rigorous testing, you’ll learn how to build a MVP (minimum viable product) to test those assumptions, a new accounting system for evaluating whether you’re making progress, and a method to deciding whether to pivot or persevere.
“Accelerate”
Power of small batches
What are the management’s second century problems:
We are relying on vision, chasing the “great men”, or trying to analyze our products to death.
Manufacturing: Even as jobs continue to be lost
In effect, the huge productivity increases made possible by modern management and technology have created more productive capacity than firms know what to do with…
Progress in manufacturing is:
Measured by the production of high-quality physical goods.
A comprehensive theory of entrepreneurship should address all the functions of an early-stage venture:
(method for measuring progress in the context of extreme uncertainty)
1- Vision and concept
2- Product development
3- Marketing and sales
4- Scaling up
5- Partnerships and distribution
6- Structure and organizational design
Cross-functional teams instead of…
Strict functional departments
If we build something nobody wants…
It doesn’t matter whether you build on time or budget
The goal of a startup is:
To figure out the right thing to build
Is it true that: Every new version of a product, every new feature, and every new marketing program is an attempt to improve this engine of growth?
True
Henry Ford spent his days and nights tinkering in his garage with the precise mechanics of getting the engine cylinders to move
Each tiny explosion within the cylinder provides the motive force to turn the wheels but also drive the ignition of the next explosion. Unless the timing of this feedback loop is managed precisely, the engine will sputter and break down.
The second important feedback loop
Is an automobile is between the driver and the steering wheel.
Is it true or false? Unfortunately, too many startup business plans look more like they are planning to launch a rocket ship than drive a car.
True
General management:
A failure to deliver results is due to either a failure to plan adequately or a failure to execute properly
Institution looks for:
Hiring creative employees, coordinating their activities, and creating a company culture that delivers results
Anything those customers experience from their interaction with a company should be…
Considered part of that company product
Startups kinds of innovation:
Novel scientific discoveries, repurposing an existing technology for a new business model that unlocks value that was hidden, or simply bringing a product or service to a new location or a previously underserved set of customers.
What was the process deliberately facilitated by Intuit’s senior management
Innovation is bottoms-up, decentralized, and unpredictable thing, but that doesn’t mean it can’t be managed
Modern general managers of Intuit
“The amount of learning they get is just immense now. And what it does is to develop entrepreneurs, because when you have only one test, you don’t have entrepreneurs, you have politicians, because you have to sell. Out of a hundred good ideias, you’ve got to sell your idea. So you build a society of politicians and salespeople. When you have give hundred tests running, then everybody’s idea can run. Fast-cycle testing
What Eric Ries believe is:
A company’s only sustainable path to long-term economic growth is to build an “innovation factory” that uses Lean Startup techniques to create disruptive innovations on a continuous basis.
How Intuit hold themselves accountable for their new innovation efforts by measuring two things:
The number of customers using product that didn’t exist three years ago and the percentage of revenue coming from offering that didn’t no exist three years ago
Unfortunately, “learning” is…
The oldest excuse in the book for a failure of execution. We can tell a good story when our job, career, or reputation depends on it. Cold comfort to the investors who allocate precious money, time, and energy to entrepreneurial teams. You can’t take learning to the bank, you can’t spend it or invest it. You cannot give it to customers and cannot return it to limited partners. Is it anu wonder that learning has a bad name in entrepreneurial and managerial circles?
Validated Learning is:
The process of demonstrating empirically that a team has discovered valuable truths about a startup’s present and future business prospects. It’s the principal antidote of achieving failure: successfully executing a plan that leads to nowhere.
Metcalfe’s law:
The value of network as a whole is a proportional to the square of the number of participants. In other words, the more people in the network, the more valuable the network. This make intuitive sense: the value to each participant is driven primarily by how many other people he or she can communicate with… ex: imagine a world where you own the only telephone… Only when other people also have a telephone dose it become valuable.
