Acclaim for THE LEAN STARTUP

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2. For more on Path, see http://techcrunch.com/2011/02/02/ google-tried-to-buy-path-for-100-million-path-said-no/ and http://techcrunch.com/2011/02/01kleiner-perkins-leads-8–5million-round-for-path/ 3. Includes approximately $30 million of assets under management and approximately $150 million of assets under administration, as of April 1, 2011. 4. For more on Wealthfront, see the case study written by Sarah Milstein at http://www.startuplessonslearned.com/2010/07/ case-study-kaching-anatomy-of-pivot.html. For more on Wealthfront’s recent success, see http://bits.blogs.nytimes.com/ 2010/10/19/wealthfront-loses-the-sound-effects/ 5. IMVU’s results have been shared publicly on a few occasions. For 2008, see http://www.worldsinmotion.biz/2008/06/imvu_ reaches_20_million_regist.php; for 2009 see http://www.imvu. com/about/press_releases/press_release_20091005_1.php, and for 2010 see http://techcrunch.com/2010/04/24/imvu-revenue/ 6. Business architecture is a concept explored in detail in Moore’s Dealing with Darwin. “Organizational structure based on prioritizing one of two business models (Complex systems model and Volume operations model). Innovation types are understood and executed in completely dierent ways depending on which model an enterprise adopts.” For more, see http://www.dealingwithdarwin.com/theBook/ darwinDictionary.php Chapter 9. Batch 1. http://lssacademy.com/2008/03/24/a-response-to-the-video- skeptics/ 2. If you’re having trouble accepting this fact, it really is helpful to watch it on video. One extremely detail-oriented blogger took one video and broke it down, second-by-second, to see where the time went: “You lose between 2 and 5 seconds every time you move the pile around between steps. Also, you have to
you move the pile around between steps. Also, you have to manage the pile several times during a task, something you don’t have to do nearly as much with [single-piece ow]. This also has a factory corollary: storing, moving, retrieving, and looking for work in progress inventory.” See the rest of the commentary here: http://lssacademy.com/2008/03/24/a- response-to-the-video-skeptics/ 3. Timothy Fitz, an early IMVU engineer, deserves credit for having coined the term continuous deployment in a blog post: http:// timothyfitz.wordpress.com/2009/02/10/continuous- deployment-at-imvu-doing-the-impossible-fifty-times-a-day/. The actual development of the continuous deployment system is the work of too many dierent engineers at IMVU for me to give adequate credit here. For details on how to get started with continuous deployment, see http://radar.oreilly.com/2009/03/ continuous-deployment-5-eas.html 4. For technical details of Wealthfront’s continuous deployment setup, see http://eng.wealthfront.com/2010/05/deployment- infrastructure-for.html and http://eng.wealthfront.com/2011/ 03/lean-startup-stage-at-sxsw.html 5. This description of School of One was provided by Jennifer Carolan of NewSchools Venture Fund. 6. For more on the large-batch death spiral, see The Principles of Product Development Flow: Second Generation Lean Product Development by Donald G. Reinertsen: http://bit.ly/pdflow 7. These lean health care examples are courtesy of Mark Graban, author of Lean Hospitals (New York: Productivity Press, 2008). 8. This illustrative story about pull is drawn from Lean Production Simplified by Pascal Dennis (New York: Productivity Press, 2007). 9. For an example of this misunderstanding at work, see http:// www.oreillygmt.eu/interview/fatboy-in-a-lean-world/ 10. Information about Alphabet Energy comes from interviews conducted by Sara Leslie. 11. For more on Toyota’s learning organization, see The Toyota
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Acclaim for THE LEAN STARTUP
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—Geoffrey Moore, author, Crossing
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Copyright © 2011 by Eric Ries All
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Contents Cover Title Page Copyright
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Introduction S top me if you’ve h
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can be engineered by following the
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product vision. These supposed xes
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entrepreneurship, the movement has
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have neither. The second problem is
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shooting in the dark. We are relyin
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Part One VISION
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previous time in history. This has
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manufacturing is measured by the pr
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Every new version of a product, eve
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Products change constantly through
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2 DEFINE WHO, EXACTLY, IS AN ENTREP
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ecosystem regardless of company siz
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In 2009, a startup decided to try s
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accountable. In other words, cultiv
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signicant number of existing custom
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3 LEARN A s an entrepreneur, nothin
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ventures that had failed, and we we
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moving parts that we had to cut a l
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Out of desperation, we decided to t
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eight.” We had no idea how many i
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eliminate it has allowed lean compa
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trying to convince investors, emplo
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gathered suggested new experiments
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entrepreneur in residence. I’ve a
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FROM ALCHEMY TO SCIENCE The Lean St
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1. It had more accurate data about
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nicely. Yet despite all that work,
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second time? How many are willing t
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finding justified the significant e
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them to dry, which takes two to sev
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and innovation to make the agency m
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have the opportunity to closely mon
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Part Two STEER
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This Build-Measure-Learn feedback l
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objectively; they are also invaluab
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spent. In other words, Facebook als
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The problem with analogies like thi
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the biggest market opportunities in
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To demonstrate, take a look at the
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conversations were designed to answ
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6 TEST G roupon is one of the faste
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At IMVU, when we were raising money
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Most entrepreneurs approach a quest
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made a video. The video is banal, a
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sign up for a new service sight uns
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city?” and the technology flails.
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with humans replicating pieces of t
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we are not even sure who the custom
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quality products, but only in servi
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of these cases, there is an easy so
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7 MEASURE A t the beginning, a star
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changes we’ve made are related to
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For example, a startup might create
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INNOVATION ACCOUNTING AT IMVU Here
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This graph represents approximately
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might, we were getting straight C
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When I meet with those teams, there
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much more exciting. That’s why I
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important connection: “I have thi
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equirements of the product owner (t
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was judged by its ability to improv
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The questioning inspired the team t
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I have implemented this system with
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Even more important than reducing w
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from their actions. Human beings ar
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metrics, “auditable,” is so ess
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8 PIVOT (OR PERSEVERE) E very entre
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1. Customers would be interested en
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easy; it is to make sure that there
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@2gov had a slightly dierent set of
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leap-of-faith questions, David conc
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the U.S. population and has deliver
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pivot or persevere, whether to chan
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THE PIVOT OR PERSEVERE MEETING The
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2. The game would grow using the vi
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not launched its current product, t
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A customer segment pivot is an espe
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incorrectly as a synonym for change
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Value Capture Pivot There are many
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similar to that of a successful com
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Part Three
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Start Your Engines Most of the deci
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accounting method described in Part
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is so named because it has a batch
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producers. Over time, that capabili
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they immediately would release a ne
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in consumer electronics. The latest
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Small Batches in Education Not ever
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change, you could roll it out immed
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The original version had been years
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warehouses immediately shrink, as t
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This has enabled Alphabet Energy to
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THE STARTUP WAY
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companies had used their early succ
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We saw in Part Two how important it
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suited to testing the value hypothe
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and its speed is determined by a si
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Imagine that the rst company uses G
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those were all services the company
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ying out of the factory as fast as
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Chapter 6 emphasized the importance
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11 ADAPT W hen I was the CTO of IMV
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eward extreme polarization, that’
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what we have learned to get to work
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3. Why was it not lubricated sucien
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I used the example of engineering t
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When blame inevitably arises, the m
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sometimes will devolve into the Fiv
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game players in the world. More tha
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Tony relates, “As the new master
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Page 249 and 250: spent debating the data because, in
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Page 253 and 254: are considered real and the innovat
Page 255 and 256: Once the market for the new product
Page 257 and 258: to train new team members in the ne
Page 259 and 260: It took a constant eort to consider
Page 261 and 262: online, and suggestions for how you
Page 263 and 264: extremely harmful and required the
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Page 269 and 270: spawned to correct those deficienci
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Page 273 and 274: vision but not to abandon it. We wo
Page 275 and 276: yourself. The Lean Startup Wiki Not
Page 277 and 278: • Ash Maurya has emerged as a lea
Page 279 and 280: The idea of the Build-Measure-Learn
Page 281 and 282: 350000-downloads-for-snapt
Page 283 and 284: 93% log in at least once a month.
Page 285: more on Dropbox’s success, see
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Page 291 and 292: Acknowledgments I owe a tremendous
Page 293 and 294: Telepathy, designed and built the w
Page 295: About the Author ERIC RIES is an en
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Acclaim for THE LEAN STARTUP

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