Using Agile Methodology for Market Feedback in Risky and Uncertain Early Product Development Lean Startup Presented by: Damian Dingley, Vantage Software Inc. & Veracity Solutions

Introduction “The Lean Startup” by Eric Ries or “Improve the success rate of new innovative products” New product is unpredictable Apply the scientific method to early product development. Build, test, learn and pivot –quickly. Reduce uncertainty and foster commitment. Don’t measure doing, measure output and results.

Applies to any new product development: Large Corporations Garage startups

3 Principals Vision Steer Accelerate Entrepreneurial management Build-measure-learn feedback loop Accelerate Velocity improvements using Lean, Agile and Kanban Just do it mentality. Manage the enthusiasm!

Build-Measure-Learn Feedback Loop Ideas Build Product Measure Data Learn

Ideas Leap of faith assumptions High uncertainty Temper with: Build Product Measure Data Learn Ideas Leap of faith assumptions High uncertainty Temper with: Hypothesis Try and Test (as soon as possible) Prioritize based on business value and risk Epics and User Stories describing vision & hypothesis with tests to measure outcomes

Build MVP –Minimum Viable Product Guidelines: Lacks features Ideas Build Product Measure Data Learn Build MVP –Minimum Viable Product Guidelines: Lacks features Minimum effort Designed to alter customer behavior (for the better) Aim to deploy quickly Here are some notes Try some

Product Deploy and Observe (Get it in front of the customer) Ideas Build Product Measure Data Learn Product Deploy and Observe (Get it in front of the customer) Guidelines: Capture feedback Observe reactions Here are some notes Try some

Measure Innovation accounting Guidelines: Capture feedback Ideas Build Product Measure Data Learn Measure Innovation accounting Guidelines: Capture feedback Observe reactions Collect information needed to validate hypotheses and tests identified in the User Story Quantitative = are our efforts & ideas bearing fruit.

Data Collect useful data – Market, customer behavior & feedback Ideas Build Product Measure Data Learn Data Collect useful data – Market, customer behavior & feedback Qualitative & Quantitative Apply cohort analysis Guidelines: Group customers Observe group performance Qualitative –users like/dislike Quantitative – how many? Cohort example: New customers who joined broken into groups – Registered Registered and logged in Registered, logged in and requested further info Registered, logged in, purchased or subscribed (conversion/action)

Learn Use feedback to learn Test against original hypothesis Ideas Build Product Measure Data Learn Learn Use feedback to learn Test against original hypothesis Pivot (or Persevere) Guidelines: Adjust priorities on the backlog Create new user stories Update release plans No point building something nobody uses or wants!

Pivot or Persevere? Decision time -based on facts (and emotions) Facts –quantitative and qualitative Emotions –channel human creativity in most productive form Guidelines: Was the hypothesis correct? Consider as part of the regular vision & release planning effort If pivoting, keep one foot in the previous cycle/iteration while executing fundamental change in strategy. /zoom in /zoom out /customer segment /customer need /platform /business architecture Pivot examples/types – “special kind of change, designed to test a new fundamental hypothesis”. Zoom in. Zoom out. Customer segment. Customer need. Platform. Business –B2B, Appliance, Enterprise, high margin-high cost

Iterative Development Ideas Build Product Measure Data Learn Not just development milestones, learning milestones too!

Kanban & Agile = Accelerate Backlog In Progress Built Validate A D F B E C Backlog In Progress Built Validate G D F H B E C A No bucket contains more than three Epics/User Stories. Eg. Epic = Customers interested in signing up Epic = Customers would engage in site tools (rentention) Epic = Customers would tell friends (socialize) 2 or three iterations split-testing, adding functionailty –focusing on groups and split group of customers and compare Growth not matching expectations. Pivot = Zoom on specific product feature. Backlog In Progress Built Validate I G D H E F C A

Damian Dingley, Vantage Software Inc. & Veracity Solutions Thankyou Using Agile Methodology for Market Feedback in Risky and Uncertain Early Product Development Lean Startup Presented by: Damian Dingley, Vantage Software Inc. & Veracity Solutions