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O'Reilly Webcast: The Lean Series: Fireside chat with Eric Ries and Ash Maurya
30 segments available
Sorry Video is Low Resolution Eric Ries, @ericries, author of New York Times bestseller "The Lean Startup" and Ash Maurya, @ashmaurya, author of "Running Lean" answer your questions. Find out how you can use continuous innovation to create radically successful businesses and successful product launches. We hope you can join us for this exclusive event. About Ash Maurya Ash Maurya (@ashmaurya) is the founder of USERcycle. Since bootstrapping his last company seven years ago, he has launched five products and one peer-to-web application framework. Throughout this time he has been in search of better, faster ways for building successful products. Ash has more recently been rigorously applying Customer Development and Lean Startup techniques to his products, which he frequently writes about on his blog http://www.ashmaurya.com, and which turned into a book: Running Lean. Ash resides in Austin, Texas, with his wife, two children and two dogs. About Eric Ries Eric Ries is the author of the blog Lessons Learned. He was the co-founder and served as Chief Technology Officer of IMVU, his third startup. He is the co-author of several books including The Black Art of Java Game Programming (Waite Group Press, 1996). In 2007, BusinessWeek named Ries one of the Best Young Entrepreneurs of Tech. He serves on the advisory board of a number of technology startups including pbWiki, Smule, 750i and KaChing. Produced by: Yasmina Greco
Segments Timeline
Why Startups Fail
Eric Ries and Ash Maurya discuss the primary reasons startups fail, emphasizing that it's not about building the wrong product, but rather wasting time and resources on the wrong ideas. They highlight the common pitfall of entrepreneurs falling in love with their solutions, which can lead to misguided efforts and ultimately failure.
"hello gentlemen that's me good thank you so much for for participating today and for hosting this fire chat thanks for having me look here why don't we get started with why do startups fail both of yo..."
The Lean Approach to Success
The conversation shifts to how the Lean Startup methodology can improve failure rates by breaking down big visions into manageable components. Ries and Maurya explain how Lean principles allow entrepreneurs to systematically test their business models and prioritize their efforts effectively.
"yeah great thank you how about why lean how does lean help improve these failure rates so I I I find that um that lean helps you break that big Vision that we're we're kind of talking about into its c..."
Understanding Lean Manufacturing
Ries elaborates on the origins of the Lean Startup concept, tracing it back to Lean manufacturing principles developed in Japan. He explains how these principles focus on evaluating business activities through the customer's perspective to identify value-creating actions versus wasteful ones.
"of success oh sure I was just going to say just for those who are not familiar with the history the the word lean and Lean Startup comes from lean manufacturing which is a system of production that uh..."
Learning Through Failure
The discussion emphasizes the importance of learning from failures in the startup process. Ries and Maurya argue that true experiments occur when products are launched, and the key to progress is to embrace failure as a necessary step for learning and refining business strategies.
"and the really scary part is often times even building more features actually building the product itself polishing it making it quote unquote better that actually can be a form of waste because if we..."
Starting with the Right Problem
Ash Maurya shares his personal experience of starting a company and the importance of focusing on solving a real problem rather than falling in love with a solution. He stresses the need to identify customer segments and the purpose behind the product to ensure sustainable success.
"on I fell in love I fell into the Trap of falling in love with the solution and we had a you know we like most first-time entrepreneurs we we were doing it completely in stealth didn't want to tell an..."
The Science of Entrepreneurship
Ries discusses the misconception that entrepreneurship cannot be scientific. He argues that treating every action as an experiment designed to learn is crucial. The conversation highlights the importance of making specific predictions and using failures as learning opportunities to refine business models.
"on incrementally as as needed Eric what do you want to talk about your big takeaway yeah gosh uh you know the big takeaways come from the big failures and so therefore there's an embarrassment of rich..."
Decomposing Startup Concepts
The segment addresses a question from the audience about separating vision, strategy, and product in startups. Ries explains the importance of understanding these elements distinctly to allow for experimentation and validation, ensuring that entrepreneurs can adapt and refine their approaches effectively.
"learning so we're actually trying to set people up deliberately to provoke failure quickly and make those failures productive so that they lead to the most learning possible yeah thanks Eric and I kno..."
The Art of the Pivot
Ries elaborates on the concept of a pivot in startups, defining it as a change in strategy without altering the core vision. He uses Google as an example of a successful pivot, illustrating how entrepreneurs can leverage initial learnings to adapt their business models while maintaining their foundational vision.
"question yeah I love that question I'll jump in since since I think he's referring to to a video that I uh that I did with into it so it's it's partially my fault for causing the confusion in the firs..."
Self-Discovery Through Failure
Eric Ries shares insights on how entrepreneurship is a journey of self-discovery, revealing that true vision often emerges through failure. He recounts his experience with IMVU, discussing the pivotal decisions that shaped the company's direction and the importance of understanding trade-offs in business.
"all our product is low cost and it's beautiful and it appeals to all different segments at the same time and that you know our Distributors and partners really like us and all the other Industries bow..."
Navigating Solo Entrepreneurship
Ash Maurya offers advice for solo entrepreneurs, redefining their role as one of systematically reducing risk. He emphasizes the importance of validating ideas through customer feedback and suggests that even without a co-founder, entrepreneurs can progress by testing their concepts in the market.
"do great thank you very much Eric our next question is from John and John asks um if you have any tips for solo entrepreneurs without co-founders okay I'll maybe take a stab of that one so I I I kind ..."
Engines of Growth Explained
Eric Ries introduces the concept of 'engines of growth' in startups, explaining the importance of sustainable growth driven by past customers. He outlines three types of growth engines: paid, viral, and sticky, and discusses how understanding these can help entrepreneurs achieve product-market fit.
"you great thank you very much Ash we just like to remind our audience folks if you have a question for Eric or Ash please send that into the group chat just open that widget on your widget tray type i..."
The Search for a Fourth Engine
In a follow-up discussion, Ash Maurya questions the simplicity of Ries's engines of growth model, expressing curiosity about the potential for a fourth engine. This segment highlights the ongoing exploration and debate within the entrepreneurial community regarding growth strategies.
"that I've worked sure and since you brought that up Eric maybe I'll ask um kind of a follow-up question or kind of just dig deeper because I know when I when I read your engine of growth Concepts in t..."
The Importance of Focus in Growth Strategies
Eric Ries shares insights on the significance of focusing on one engine of growth at a time to avoid confusion and inefficiency. He recounts his experiences with startups that struggled to identify their growth strategy and emphasizes the need for clarity in metrics. The discussion underscores how understanding which engine to prioritize can lead to better decision-making and ultimately, more successful outcomes.
"little bit about how how does one kind of approach that so do you do you measure so do you have a hypothesis and you measure it and and you focus on that one and then you tweak so I'll give maybe I'll..."
Understanding Retention Metrics
In this segment, Eric Ries explains the critical nature of retention metrics in evaluating the success of a startup's growth strategy. He contrasts different business models, such as dating sites, where high retention isn't the goal, with those that require strong retention rates. This discussion highlights how understanding the context of retention can inform marketing and product development strategies.
"especially when I was the entrepreneur presenting my metrics you know I would come into a board meeting I'd be like hey let me funnel chart let me show you some conversion metrics hey look I found a g..."
Navigating Growth Challenges
Eric Ries discusses the challenges startups face when trying to achieve hypergrowth and the importance of recognizing when a product isn't meeting market needs. He emphasizes the need for entrepreneurs to pivot quickly if their current growth strategy isn't working, and how focusing on one engine of growth can help clarify whether a product has true market fit.
"of growth work you might say well you know 60% retention means we have a pretty good lifetime value you know if you think about you know product companies you know if you think about a dating site whe..."
The Pain of Letting Go
Eric Ries shares the emotional challenges entrepreneurs face when needing to pivot away from their original ideas. He suggests scheduling regular 'pivot or persevere' meetings to assess progress and make informed decisions. This proactive approach helps reduce the stress associated with admitting a product isn't working and encourages a healthier mindset towards innovation and change.
"okay yeah thanks s very good thank you so much um our next question is from Maggie Maggie asks and says she's seen a lot of startups out there developing products for audiences that they can't relate ..."
Finding Customer Development Interviewees
Ash Maurya addresses the importance of identifying the right individuals for customer development interviews. He emphasizes the need for entrepreneurs to connect with their target audience and understand their needs. This segment discusses strategies for finding and engaging potential interviewees to gather valuable insights that can inform product development and marketing strategies.
"think that that that tends to be something that can be limiting now I will also say that in the very early days you don't quite know who that customer segment is so that shouldn't also be the um you k..."
Embracing the Pivot
Eric Ries discusses the importance of acknowledging the need to pivot in entrepreneurship. He suggests scheduling regular 'pivot or persevere' meetings to assess progress and make informed decisions. This proactive approach helps reduce stress and encourages entrepreneurs to let go of ideas that aren't working, ultimately leading to better outcomes and happier founders.
"can do is uh get you to a point of realizing that you need to do this painful thing more quickly than the conventional method that's that's the best we can do and uh at the time that you do the pivot ..."
Identifying Early Adopters
Ash Maurya shares strategies for identifying individuals for customer development interviews. He emphasizes the importance of understanding demographics and psychographics to pinpoint ideal early adopters. By leveraging one's network and utilizing tools like LinkedIn, entrepreneurs can effectively engage potential customers and gather valuable insights.
"thank you very much Al righty looks like our next question is from Tim and Tim would like to know what is the best approach to identify individuals for customer development interviews what tools what ..."
The Value of the Business Model Canvas
Eric Ries and Ash Maurya discuss the utility of the Business Model Canvas in startups. They highlight its role in documenting hypotheses and facilitating empirical testing. While the canvas is a helpful tool, they stress that the real value comes from testing ideas quickly to validate assumptions and drive progress.
"stage thank you Ash uh we do have another question here and it's directed at Eric um from Christian is the business model canvas in your opinion the key tool to aggregate key learnings as you test hyp..."
Learning from Lean Practices
Ash Maurya reflects on his recent reading of 'The Toyota Way to Lean Leadership' and its influence on his understanding of lean principles. He emphasizes the balance between short-term actions and long-term value creation, drawing parallels to the continuous improvement philosophy at Toyota.
"tool thank you very maybe I'll just add like like two things to that I I'll kind of kind of second that and I see that I I I view the canvas as being part of a tool set and again I I went into like im..."
Marketing to Kids vs. Parents
In response to a question about marketing children's products, Eric Ries explains the complexities of targeting both kids and parents. He shares insights from his experience, noting the challenges of aligning the interests of different stakeholders in the purchasing decision, which can complicate marketing strategies.
"cover I'll just say the one that I just started reading was the one that um Eric recently uh uh sent one one that he recently posted about was is the founders dma oh that's a great book yeah so I I ju..."
Learning from Failures
Ash Maurya discusses the inevitability of failure in the entrepreneurial journey. He shares his experiences of running experiments with his growing team, emphasizing the importance of fostering a culture of experimentation and learning from both successes and failures to achieve breakthroughs.
"experience thank you very much uh let's take a peek here next one is from Michael Michael asks uh since learning comes from failure what was your most recent failure that you learned from um as Eric s..."
Just-in-Time Scalability
Eric Ries introduces the concept of 'just-in-time scalability' as a strategy for startups facing rapid growth. He explains how incremental adaptive management can help identify bottlenecks and make necessary adjustments to systems, using his experience at IMVU to illustrate the importance of systematic architecture improvements.
"learning thank you Ash we have a really great question here from John John um asks a lot of startups Twitter for example seem to suffer with scalability after a fast ramp up to get to Market how can t..."
Roles for Non-Technical Team Members
Ash Maurya discusses the valuable roles non-technical team members can play in a Lean Startup. He emphasizes the importance of cross-disciplinary teams and the shared responsibility of learning from customers, advocating for a culture of transparency and collaboration to enhance product development.
"runs even to this day thank you very much uh we do have a question now from Jake what are the best roles and duties for non-technical non-developer type people in a Lean Startup um well I I know Eric ..."
The MVP Feature Dilemma
Eric Ries addresses the common misconception that more features lead to better customer reception in Minimum Viable Products (MVPs). He argues for drastically reducing feature lists to focus on key functionalities, explaining how this approach can lead to clearer user experiences and more valuable feedback from customers.
"answer all right folks let's take a peek here questions are still coming in again folks please send in your questions while we have these gentlemen with us this is your one and only chance to have tha..."
Lean Methodology in Healthcare
Eric Ries shares a compelling example of applying Lean Startup principles in the healthcare sector. He recounts a story of a cancer diagnostic company that pivoted successfully after initially targeting a saturated market, illustrating the necessity of validating hypotheses and understanding customer needs in healthcare innovations.
"surprised thank you Eric great great answer there uh we have our next question from Barry Barry would like to know do you have any examples of application of lean in healthcare and Healthcare um I don..."
Future of Lean Methodology
Ash Maurya poses a thought-provoking question about the future of Lean methodology and its areas for growth. He invites Eric Ries to share insights on the evolving landscape of Lean practices, setting the stage for a discussion on the methodology's potential advancements.
"right thank you very much Eric questions are coming in strong all righty next one is from Christian in which areas do you think the lean methodology needs to make progress in the future where is the m..."
The Future of Lean Entrepreneurship
Eric Ries reflects on the early days of lean entrepreneurship and the potential for future advancements. He encourages listeners to embrace change and take small steps towards innovation, emphasizing that the journey of refining lean practices is just beginning and will evolve over decades.
"obstacles that we have to eventually um work towards overcoming here and Eric if you want to add anything yeah you're absolutely right we are in the very early days of this when people look back on ou..."
Age and Adaptability in Lean Thinking
In response to a question about older engineers adapting to lean thinking, Eric Ries shares data showing that older entrepreneurs often perform better than younger ones. He discusses the value of experience in recognizing waste and the importance of embracing lean principles across all ages and backgrounds.
"ofth art and Entrepreneurship great thank you very much Eric folks our time is starting to wind down here we have time for just one more question just one more we'll ask it real quick here it's from T..."