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Lessons Learned by Eric Ries Sunday, September 7, 2008 CustomerDevelopment Engineering Yesterday, I had the opportunity to guest lecture again in Steve Blank s entrepreneurship class at the Berkeley-Columbia executive MBA program. Its a nice complement on the product engineering side to his customerdevelopment methodology.
The cloud , open-source development tools and web 2.0 as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. Filed under: CustomerDevelopment , Lean LaunchPad , Science and Industrial Policy , Venture Capital. Valley-sized VC funds don’t work.
Lessons Learned by Eric Ries Thursday, September 18, 2008 How to get distribution advantage on the iPhone I have had the opportunity to meet a lot of iPhone-related companies lately. There are other models, in other distribution channels. On Facebook, viral distribution has proved decisive. I havent found any yet.
The application of agile development methodologies which dramatically reduce waste and unlock creativity in product development. See CustomerDevelopment Engineering for my first stab at articulating the theory involved) Ferocious customer-centric rapid iteration, as exemplified by the CustomerDevelopment process.
Venture Capitalists on your board developed the expertise to get your firm public as soon as possible using whatever it took including hype, spin, expand, and grab market share because the sooner you got your billion dollar market cap, the sooner the VC firm could sell their shares and distribute their profits. Warning sign?
Focus on the output metrics of that part of the product, and you make the problem a lot more clear. I had the opportunity to pioneer this approach to funnel analysis at IMVU, where it became a core part of our customerdevelopment process. Labels: customerdevelopment , split-test 7comments: Editor said.
One is explaining the world as it used to work: the importance of gatekeepers, the scarcity implied by limited distribution, and the resulting quality bar that the industry is so proud of. Mostly it is the time and expense required to create the means of distribution for that industry. It’s just taking some longer than others.
At least, not in the traditional sense of trying to squeeze every tenth of a point out of a conversion metric or landing page. Instead, we try to accelerate with respect to validated learning about customers. Even if it shows improvement in some micro metric, does that invalidate the overall design? No one feature is to blame.
1) It all starts from the Growth Hacking Funnel - in the early stages, startups should not just focus on top/bottom line metric like unique users and revenue. CustomerDevelopment Labs recently shared a great experiment on using mTurk to interview 100 customers in 4 hours for less than $200. Distribution Hacks.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
Those rates gave us a map that told us a lot about our customers; insights that proved stable even when the company grew orders of magnitude bigger. Only much later did I realize that this was an application of customerdevelopment to online marketing. Thoughts on scientific product development Lo, my 5 subscribers, who are you?
To move innovation faster, we now have 21 st century tools — Business Model Canvas , CustomerDevelopment , Agile Engineering – all adding up to a Lean Startup. Here the company executes a known business model (known customers, product features, competitors, pricing, distribution channel, supply chain, etc.)
They were interested in the tools and new distribution medium kaChing provided. They were interested in the tools and new distribution medium kaChing provided. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? These managers weren’t concerned with transparency.
Every board meeting, the metrics of success change. Their product development team is hard at work on a next-generation product platform, which is designed to offer a new suite of products – but this effort is months behind schedule. Time-to-complete-a-sale is not a bad metric for validated learning at this stage.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
It is becoming easier and cheaper for companies to bring products to market, leveraging free and open source software , cloud computing, open social data (Facebook, OpenSocial ), and open distribution (AdWords, SEO). Agile software development. Customerdevelopment. This speeds up the Ideas-Code-Data feedback loop.
As a shoestring entrepreneur with a SaaS (well, not really, but sort of) offering that we present to very large companies (think 10K+), I love your common sense suggestions about metrics and testing. My background isnt metrics, but we came to it as a matter of practicality. 4) More posts about metrics, scaling, and online games.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
In management jobs related to operations – that is, the people tasked with actually making and distributing physical products – this kind of thinking is now considered ludicrous, thanks to a century of progress. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup?
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The cost of creating new companies is falling rapidly, and access to markets, distribution, and information is within the reach of anyone with an Internet connection. The cost of creating new companies is falling rapidly, and access to markets, distribution, and information is within the reach of anyone with an Internet connection.
Even the most radical Bell Curve -style thinkers have to concede that even if there are differences between men and women in the distribution of these traits on average, these curve have substantial overlap, and there should still be a lot more of them represented in high-tech startups. Startup Lessons Learned - the Conference (April 23.
The cost of creating new companies is falling rapidly, and access to markets, distribution, and information is within the reach of anyone with an internet connection. This is just like a startup to me, complete with distribution and product development challenges, ecosystem design and many, many customers.
Or depending on your metrics for success, get users, grow traffic, etc.). A business model diagram also shows how the product gets distributed to your customers and how money flows back into your company. What’s the distribution channel. Most of the time the darn customers don’t behave as you predicted.
Dave McClure’s conversion metrics visualize where different conversion optimization opportunities lie—including those for acquisition. If you don’t have customers, our articles on customerdevelopment and how to write compelling copy without customers can help you get started. Image source ).
Hello Eric, Great talk at the fb developer garage. Im passionate about music (topspin like companies)and movie (jaman like companies)distribution. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Im a recent grad, with emphasis in entrepreneurship, who cannot afford to go to this.
So we tried to craft a strategy that would give us the product development leverage we needed to serve all customers. We combined three tactics: extensive use of free software, an open platform for user-generated content, and leveraged distribution channels. Leveraged distribution channels.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
This includes how the product gets distributed to your customers and how money flows back into your company. Distribution, Demand Creation and Partnerships. Customer Discovery. Metrics That Matter (Business Model Metrics). By design we didn’t give them too much CustomerDevelopment theory.
To guide the discussion, we’re going to be using Dave McClure’s Conversion Metrics as a framework to see where different conversion optimization opportunities lie. For Acquisition, we’re primarily asking how do first time visitors & potential customers find you? So Where Exactly Does “Conversion” Happen? image source.
Turns out, what customers really meant was "let me use IMVU with somebody I dont know" so they could get a feel for the social features of the product without incurring the social risk of recommending it to their friend. Luckily, the metrics helped us figure out the difference. Lets run a thought experiment.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
If you’re working closely with partners who are helping you distribute your product, it’s especially important to make sure they understand who you are, how you speak, and who you serve. Noah Parsons says, “Start collecting contact information for interested, prospective customers. Step 8: Track your metrics.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
Every year, our team conducts more than 500 customerdevelopment calls to understand what challenges the community is facing. She shares: “We now use metrics like cost-per-learning and validation velocity to show progress since traditional things like ROI weren’t applicable.” Here are some of our favorites: 1.
Ive been even more impressed by the various Greasemonkey compilers out there, that let you turn a Greasemonkey script into a full-blown Firefox extension, for easy distribution. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? How to listen to customers, and not just the loud.
"In a phase change the things that made you successful before don't work anymore" It's tough to cross the chasm without "being remarkable" The distribution and word-of-mouth or word-of-mail that results from being remarkable can sometimes be the difference between crossing the chasm, or falling in and never getting out.
This is great for something like a huge DHT or a distributed work queue. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Consistent hashing has the property that only a small number of entries need to be remapped when a node is added or removed.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup? Startup Visa update ► February (5) Kiwi lean startup + Australia next Why diversity matters (the meritocracy business) Beware of Vanity Metrics (for Harvard Business Rev. How to listen to customers, and not just the loud.
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