6. Ideas
Products
‟A startup [...] transforms ideas into products [...] those
products are really experiments; the learning about how to
build a sustainable business is the outcome of those
experiments„
7. ‟Although we write the loop as Build-Measure-Learn
because the activities happen in that order, our
planning works in reverse order„
• we figure out what we
need to learn
• use innovation
accounting to figure out
what we need to
measure to know if we
are gaining validated
learning
• and then we figure out
what product we need
to build to run that
experiment and get that
measurement
8. ‟We need to identify hypotheses to test [... we
need to find] the leap-of-faith assumptions
(value hyphothesis and growth hypothesis)„
‟The MVP helps
entrepreneurs start the
process of learning as
quickly as possibile. It is
not necessarily the smallest
product [...] it is simply the
fastest way to get through
the Build-Misure-Learn
feedback loop with the
minimum amount of effort„
10. ‟If we do not know who the customer is, we do
not know what quality is [...] sometimes MVPs
are perceived as low-quality, if so, we should use
this as an opportunity to learn what customers
care about„
‟remove any feature, process or effort that does
not contribute directly to the learning you seek„
11. ‟Innovation Accounting: a disciplined,
systematic approach to figuring out if we’re
making progress and discovering if we’re
actually achieving validated learning.
It works in three steps„
1. use an MVP to VISION
enstablish real data on
where the company is
right now
2. startups must attempt
to tune the engine Pivot: starts the process
from baseline toward al over again,
the ideal reestablishing a new
3. pivot or persevere baseline and the tuning
the engine from there
12.
13. ‟Do I have a problem
worth solving?„
‟While ideas are cheap,
acting on them is quite
expensive„
problem/solution product/market
FIT SCALE
FIT
14. ‟A problem worth solving
boils down to three
questions„
• Is it something customers want? (must-have)
• Will they pay for it? If not, who will? (viable)
• Can it be solved? (feasible)
problem/solution product/market
FIT SCALE
FIT
15. ‟From there you derive the minimum feature set to
address the right set of problems, which is also
known as the Minimum Viable Product (MVP)„
‟Your MVP should
address not only the top
problems customers
have identified as being
important to them, but
also the problems that
are worth solving. By
that definition, you should
plan to deliver enough
value to justify charging„
16. • Price is part of the product.
• Price defines your customers.
• Getting paid is the first form of validation.
17. Effective
Experiments
• maximize for Speed, Learning,
and Focus
• Identify a Single key metric
or Goal
• Do the Smallest thing
Possible to Learn
• Formulate a Falsifiable
Hypothesis
(A falsifiable hypothesis is a statement that can be clearly
proven wrong)
18. Effective
Experiments
• Validate Qualitatively,
Verify Quantitatively
(If you have a lot of uncertainty now, you don’t need much
data to reduce uncertainty significantly. When you have a lot
of certainty already, then you need a lot of data to reduce
uncertainty significantly)
• make Sure you Can Correlate
Results Back to Specific
actions
• Create accessible Dashboards
• Communicate Learning Early and
often
