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One of the most highly anticipated startup IPOs of recent years, we now get a peek inside Airbnb’s business. Sales and marketing has been 30%+ basically forever, though undoubtedly Airbnb has enough brand recognition and loyal customers that if you turned off marketing spend then revenue would drop but not to zero.
Lessons Learned by Eric Ries Sunday, April 26, 2009 Productdevelopment leverage Leverage has once again become a dirty word in the world of finance, and rightly so. But I want to talk about a different kind of leverage, the kind that you can get in productdevelopment. Its a key lean startup concept.
Lessons Learned by Eric Ries Monday, September 22, 2008 Thoughts on scientific productdevelopment I enjoyed reading a post today from Laserlike (Mike Speiser), on Scientific productdevelopment. I agree with the less is more productdevelopment approach, but for a different reason. Now that is fun.
The application of agile development methodologies which dramatically reduce waste and unlock creativity in productdevelopment. See Customer Development Engineering for my first stab at articulating the theory involved) Ferocious customer-centric rapid iteration, as exemplified by the Customer Development process.
I’ve seen the Valley grow from Sunnyvale to Santa Clara to today where it stretches from San Jose to South of Market in San Francisco. And to today, when its major product is simply innovation. When the product and channel are bits, adoption by 10’s and 100’s of millions and even billions of users can happen in years versus decades.
As I talked about in a previous interview, IMVUs original MVP took us six months to bring to market. Refreshing to finally see lean and agile thinking emerge in product/business-floors and not only in technology. Iterate quickly to uncover true market demands. Robert August 25, 2009 5:25 AM Bernard said. Thanks Eric, great blog!
In a startup, both the problem and solution are unknown, and the key to success is building an integrated team that includes productdevelopment in the feedback loop with customers. 2008 09 06 Eric Ries Haas Columbia Customer Development Engineering View SlideShare presentation or Upload your own.
Lessons Learned by Eric Ries Sunday, October 5, 2008 The product managers lament Life is not easy when youre working in an old-fashioned waterfall development process, no matter what role you play. Labels: productdevelopment 8comments: Vincent van Wylick said. This post has been removed by the author.
But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." Many of us are not accustomed to thinking about markets or customers in a disciplined way. We know some products succeed and others fail, but the reasons are complex and the unpredictable.
Own the development methodology - in a traditional productdevelopment setup, the VP Engineering or some other full-time manager would be responsible for making sure the engineers wrote adequate specs, interfaced well with QA, and also run the scheduling "trains" for releases. Labels: productdevelopment 15comments: mukund said.
Its had tremendous impact in many areas: continuous deployment , just-in-time scalability , and even search engine marketing , to name a few. I owe it originally to lean manufacturing books like Lean Thinking and Toyota Production System. The batch size is the unit at which work-products move between stages in a development process.
” Below are our favorite pieces from the past few years, divided in to a few key categories: fundraising, company building, productdevelopment, industry trends, and the life of a VC. Entrepreneurs should know their audience, and most importantly, how savvy it is about the company’s particular market segment.”
Lessons Learned by Eric Ries Saturday, September 13, 2008 SEM on five dollars a day How do you build a new product with constant customer feedback while simultaneously staying under the radar? Trying to answer that question at IMVU led me to discover Google AdWords and the world of search engine marketing. SEM is a simple idea.
Startups especially can benefit by using technical debt to experiment, invest in process, and increase their productdevelopment leverage. The biggest source of waste in new productdevelopment is building something that nobody wants. Leverage productdevelopment with open source and third parties.
I am convinced one of Joel Spolskys lasting contributions to the field of managing software teams will turn out to be the Joel Test , a checklist of 12 essential practices that you could use to rate the effectiveness of a software productdevelopment team. Thoughts on scientific productdevelopment Lo, my 5 subscribers, who are you?
Even more importantly, you can start to experiment with feature set, positioning, and marketing - all without building a product. Use Google Optimizer to try different landing pages (even radically different landing pages) to see if any particular way of talking about your product makes a difference to your conversion rates.
Their product definition fluctuates wildly – one month, it’s a dessert topping, the next it’s a floor wax. Their productdevelopment 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.
What’s worse is that as you grow you’ve probably developed some pretty bad habits as far as setting priorities and strategy: like thinking you’re a genius - just because you got funded - and that genius is what allows you to *know* what the market wants. I remember having this exact same "aha!"
This gets me into trouble, because it conjures up for some the idea that productdevelopment is simply a rote mechanical exercise of linear optimization. You just constantly test little micro-changes and follow a hill-climbing algorithm to build your product. In traditional marketing there are three main objectives.
Market Research. In this stage, you will also search the market to check if your idea is viable. If there is a gap in the market, there will be demand. Now the question is: How to find gaps in the market? Productdevelopment. Initial productdevelopment usually consists of prototyping and MVP.
This is the first post that moves into making specific process recommendations for productdevelopment. Labels: productdevelopment Speed up or slow down? This is the first post that moves into making specific process recommendations for productdevelopment.
Lessons Learned by Eric Ries Thursday, July 15, 2010 Some IPO speculation Inspired by Steve Blank’s post today about the “lost decade&# of IPO’s , I’d like to make some predictions. The fact that IPO’s are disappearing makes intuitive sense to me. Let me be clear: Steve is the historian.
This productdevelopment diagram had become part of the DNA of Silicon Valley. Were startups failing because of product failures or was there some other failure mode? Reply Best books for the lean product managers — Justin Gibbs , on April 28, 2009 at 2:44 pm Said: [.] What was the difference here?
Its inspired by the classic OODA Loop and is really just a simplified version of that concept, applied specifically to creating a software productdevelopment team. There are three stages: We start with ideas about what our product could be. Thoughts on scientific productdevelopment Lo, my 5 subscribers, who are you?
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
In the early fall of 2009, as kaChing prepared for its marketplace launch, the management team showed the app—which included real time market data, SEC-grade accounting, analytics, compliance and customer management tools—to a number of investment pros to get feedback and endorsements. Thus far the results are encouraging.
Lessons Learned by Eric Ries Monday, October 6, 2008 When NOT to listen to your users; when NOT to rely on split-tests There are three legs to the lean startup concept: agile productdevelopment , low-cost (fast to market) platforms , and rapid-iteration customer development. I think Drucker said it best.
vs. sustainable: Compare this to the renewable strategies, like viral marketing, SEO, widgets, and ads, which can scale into 10s of millions of users but are primarily centered around tough, non-user centric work. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
These problems can be anything: development mistakes, site outages, marketing program failures, or even internal missed schedules. For example, engineering feels that they are constantly being pressured to take shortcuts that lower the quality of the product. Leave your thoughts in a comment. I’ll do my best to help.)
His hypothesis was that consumers were moving towards last minute bookings and there was a gap in the market. With no team and no technical expertise Matt was planning to find a team and build out some product before starting to raise some seed money. Our unique model allowed him to get started straight away. FINDING A COFOUNDER.
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
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). Lean startups have the ability to use this commodity stack to lower costs and, more importantly, reduce time to market.
But startups require money upfront for productdevelopment and later to scale. This happens when you either sell your company ( M&A ) or go public (an IPO.) Or as with consumer deals, is the value is ascribed by the market? Step 6: Know the inflection points for an acquisition in your market. ——-.
Then there is the pressure to go public ( IPO ), and open your investment to thousands, maybe millions, of small investors. Switch your focus from productdevelopment to sales. Of course, customer relationships, and penetration into new market segments are also critical elements.
Many optimizers are in favor of split-testing, too: direct marketers, landing page and SEO experts -- heck even the Google Website Optimizer team. In fact, the curse of productdevelopment is that sometimes small things make a huge difference and sometimes huge things make no difference. Hell no, “fire that customer!
None of it would have happened if we had plenty of cash, or were content to count our progress by traffic or productdevelopment milestones. Labels: productdevelopment 4comments: Doug said. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? Thank you Eric.
Customer Development will help you – force you – to make better decisions based on tested hypotheses, rather than untested assumptions. The results of the Customer Development process may indicate that the assumptions about your product, your customers and your market are all wrong.
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
One is used by engineers to refer to the process of getting code fully integrated into production. Another is used by marketing to refer to what customers see. In traditional batch-and-queue development, these two concepts are linked. Under continuous deployment, as soon as code is written, it’s on its way to production.
Strategy - startups first encounter this when they have the beginnings of a product, and theyve achieved some amount of product/market fit. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup? The visionary’s lament The Superbowl ad test Lo, my 57692 subscribers, who are you?
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ▼ June (3) What is a startup?
► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th. The Entrepreneur’s Guide to Customer Development ► June (3) What is a startup?
how big is the market? what is the potential market size? Most important slide: lessons learned Working product Key questions: what does the product do? whos on the marketing team? Most important slide: live demo Prototype product Key questions: what will it take to ship a working product?
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