The Innovation Trap (and Antidote) from Lean Startup
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The mantra nowadays: Move fast & break things. Is fast always good? To avoid the innovation trap, Lean Startup & Jobs To Be Done should go together. Full blog post at: http://blog.enabled.com.au/innovation-trap-lean-startup
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The Innovation Trap (and Antidote) from Lean Startup
- 1. THE INNOVATION TRAP (AND ANTIDOTE) FROM LEAN STARTUP Companion to blog post at goo.gl/jCtVTy
- 2. In 1965, the average tenure of companies on the S&P 500 was 33 years. By 1990, it was 20 years. It's forecast to shrink to 14 years by 2026. SPEED OF CHANGE
- 3. A fast-moving world mandates we should keep up with the new to maintain a competitive position. However, the pursuit of shiny ideas can also lead to the abandonment of proven ideas which could still deliver meaningful value. SHOULD WE MOVE FAST?
- 4. While Porter’s Five Forces still holds value, newer theories have come about to better describe forces emerging with internet and digital technologies. An example is Ben Thompson’s Aggregation Theory. Some outcomes of Aggregation Theory recommend the customer (a real person, not just a persona) needs to take prominent position in a company’s strategic and tactical focus. WHERE OLD MEETS NEW
- 5. Human Centred Design (HCD) popularised during the 1980s by design firm IDEO. Jobs To Be Done (JTBD) coined by Harvard Business School professor Clayton Christensen in 2003. OLDER CONCEPTS ARE COMING BACK Source: Enabled
- 6. Although old techniques remain a driver of real innovation, an industry segment notorious for abandoning the old in pursuit of the shiny and new is the Startup and Innovation scene. NOTORIETY OF STARTUPS ABANDONING THE OLD
- 7. Some even claim that Lean Startup replaces Human Centred Design and Jobs To Be Done, and is better by far. IS THIS STANCE VALID?
- 8. Lean Startup concept was first proposed by Eric Ries in 2008 It borrows from Lean Manufacturing which has its roots early to mid 1900s It reached its heights in the 1990s demonstrated by the Toyota Production System LEAN STARTUP & LINKAGE TO OTHERS First let's explore what lean is about
- 9. RATIONALE FOR LEAN STARTUP’S CREATION Ries observed that Startups operate under conditions of extreme uncertainty and this can lead to tremendous waste. Too many startups begin with an idea for a product that they think people want.
- 10. “The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible.” LEAN STARTUP It's not about who your customers are, but what they're trying to do. It starts with a problem rather than a solution. It looks at the jobs your customers hire your product to get done. JOBS TO BE DONE CUSTOMER CENTRICITY Lean methods do not preclude the use of tools like JTBD
- 11. It is the MVP part of the Lean Startup principle that presents danger to the practitioner, and is often the part which receives the most emphasis at innovation programs. THE MVP OBSESSION Source: Lean Startup
- 12. On the surface, the cycle is an intelligent one. There is no point spending too much time making the perfect product before understanding its market effectiveness. However, too much store is placed in the hope that quick iterations of feedback will shape an idea into a successful product. SPEED ISN'T EVERYTHING
- 13. This very fast cycle serves the players on the capital supply side allowing them to observe many more ideas, basically throwing more at the wall, more often, to see what sticks. INVESTORS & VCs Not all feedback is created equal. People may give feedback & not buy your product. They may give false objection; or pick a feature you can't give to escape the process. FEEDBACK GIVERS WOULD-BE INNOVATORS Very little is done to help them determine if their idea is solving a true problem.
- 14. Entrepreneur Ash Maurya - author of a Lean Startup's essential read Running Lean - successfully combined the use of JTBD and Lean principles to enhance his product. CASE STUDY: LEAN STACK Source: Lean Stack
- 15. Ash created the Lean Canvas based on the Business Model Canvas to better serve entrepreneurs. The Lean Canvas is heavily problem focused: LEAN CANVAS Differentiates between customer "Jobs to be done" (problems) vs. marketing features (UVP) Captures how customers deal with their problems today (existing alternatives) rather than listing competitors
- 16. You can gather JTBD data from customers who stop using your product. You may discover that your product is being used for very different Jobs. Narrowing what Job(s) your product should be used for has benefits. LEAN STACK Source: Alan Klement Ash later used JTBD to enhance the Lean Canvas, expanding it into the Lean Stack.
- 17. MAIN LESSONS Start with the problem your users/customers face Resist the temptation to over- engineer the product by focusing on what customers hire the product for (their JTBD) Develop complementary products to help customers solve related jobs (e.g. Lean Canvas => Lean Stack) What we learn from Ash’s journey: Source: Lean Stack
- 18. This is why Lean methods are not a replacement of Jobs To Be Done and in typical use, they certainly aren't better at determining if a real problem is being addressed. JTBD GOES WELL WITH LEAN
- 19. PUTTING HUMAN BACK AT THE CENTRE The irony is that although Human Centred Design and Jobs To Be Done have been around for some time already, they are only just gaining traction with the broad business community.
- 20. One of the most recent strategies is to speed up the innovation cycle method so much that it eliminates all instructions toward developing sustainable business. CAN YOU GUESS WHAT THIS STRATEGY IS?
- 21. By Larry Downes and Paul Nunes, the process is to conduct “random experiments” without any kind of strategic vision or direction and see what happens. BIG BANG DISRUPTION Source: Harvard Business Review
- 22. Trouble is, just like an explosion, everything (including the disruptor) comes crashing down almost as fast as it went up. This is just disruptive terrorism and real innovative enterprises can only become collateral damage. IS IT INNOVATION?
- 23. Full post at blog.enabled.com.au/innovation-trap-lean-startup S H A R I N G I S C A R I N G THANKS FOR READING C R E A T E D B Y