1 00:00:00,400 --> 00:00:04,400 The Better Business analysis Institute presents the Better 2 00:00:04,400 --> 00:00:07,500 Business analysis podcast with Kingsman watch. 3 00:00:11,900 --> 00:00:15,000 Everybody and welcome back to the bitter, business analysis 4 00:00:15,000 --> 00:00:18,700 podcast with Benjamin Walsh. So this week, we're going to be 5 00:00:18,700 --> 00:00:23,500 focusing on one of those skills. That is not within the core 6 00:00:23,500 --> 00:00:28,800 repertoire of a standard be a but it is one of the skills you 7 00:00:28,800 --> 00:00:31,700 need to be a better business analyst. 8 00:00:31,700 --> 00:00:36,900 And this skill is actually derived from a book that came 9 00:00:36,900 --> 00:00:41,600 out a few years ago, really in the product development space. 10 00:00:42,000 --> 00:00:48,000 It is a skill that it's evolved and has sparked a whole lot of 11 00:00:48,300 --> 00:00:53,400 businesses ways of thinking, and some techniques that we use as 12 00:00:53,400 --> 00:01:01,300 Bas from time to time. And it's really about getting 13 00:01:01,300 --> 00:01:05,200 something to your customers as fast as possible. 14 00:01:05,200 --> 00:01:08,600 She so you can get feedback. So it's around building, it's 15 00:01:08,600 --> 00:01:13,600 around measuring and it's about learning very He quickly so you 16 00:01:13,600 --> 00:01:18,100 don't waste money. Now you could say, okay that's 17 00:01:18,100 --> 00:01:20,400 dead. Makes sense to me so far. 18 00:01:20,800 --> 00:01:25,200 And I'm, I'm holding back about the name of this product because 19 00:01:25,200 --> 00:01:28,100 as soon as you hear the second part of it, you might think that 20 00:01:28,100 --> 00:01:31,800 this technique only relates to Startup companies or small 21 00:01:32,000 --> 00:01:36,400 start-up companies that are developing products and I, that 22 00:01:36,400 --> 00:01:39,300 is where it's come from and a bit like how agile came out of 23 00:01:39,300 --> 00:01:41,600 product development. However, this technique 24 00:01:41,700 --> 00:01:46,200 Technique can be used for any type of project and for any type 25 00:01:46,200 --> 00:01:48,900 of organization. And in some ways I think that 26 00:01:48,900 --> 00:01:53,000 enterprises need to embrace this way of thinking so they don't 27 00:01:53,000 --> 00:01:56,900 waste money and the technique. I'm talking about came from a 28 00:01:56,908 --> 00:02:00,300 book written by Eric Reeves quite a quite a while ago. 29 00:02:00,300 --> 00:02:04,800 Now, if you don't, if you haven't read it, go get yourself 30 00:02:04,800 --> 00:02:08,800 a copy of the Lean Startup, okay? 31 00:02:08,800 --> 00:02:11,100 And so there might be some people they're going Lean 32 00:02:11,100 --> 00:02:14,700 Startup. Wow lane lane coming from the 33 00:02:14,700 --> 00:02:19,000 idea of manufacturing lean manufacturing lean development 34 00:02:19,000 --> 00:02:23,700 from the Toyota, you know, Carcassonne side of things and 35 00:02:23,700 --> 00:02:25,800 start up. Meaning that this technique was 36 00:02:25,800 --> 00:02:32,000 how Eric Reeves was discussing, how you could rapidly test an 37 00:02:32,000 --> 00:02:36,300 idea or Market generally in the it space and generally when you 38 00:02:36,300 --> 00:02:41,400 didn't have much money. So the lien came in if you like 39 00:02:41,800 --> 00:02:45,600 Because this was this would be companies, which either 40 00:02:45,600 --> 00:02:50,800 self-funded or VC, using VC capital and every dollar matted 41 00:02:51,400 --> 00:02:55,500 now, for me, fundamentally and philosophy from kind of hard for 42 00:02:55,500 --> 00:03:00,500 loss of philosophy that I have, as I hate waste, I'm not 43 00:03:00,500 --> 00:03:03,600 necessarily someone who wants everything to be inefficient and 44 00:03:03,600 --> 00:03:08,100 unfun, but I just don't think there's any excuse for wasting I 45 00:03:09,000 --> 00:03:12,800 wasting money. When you know that, Money can be 46 00:03:12,800 --> 00:03:16,500 used to provide better Services somewhere else and so when I 47 00:03:16,500 --> 00:03:20,000 think when you hear the word lean, this is a way in which all 48 00:03:20,000 --> 00:03:24,000 be a should operate. We should always our job is to 49 00:03:24,000 --> 00:03:28,100 make to produce value. And one of the ways we do that 50 00:03:28,100 --> 00:03:32,600 is through lean thinking, so we don't write 300-page specs, we 51 00:03:32,600 --> 00:03:38,200 do lean be a and we our job is to identify where in 52 00:03:38,200 --> 00:03:41,400 efficiencies exist within business processes. 53 00:03:41,400 --> 00:03:45,400 So, We can improve them. So the Lean Startup is a really, 54 00:03:45,500 --> 00:03:49,400 really great mindset to put yourself in and if you haven't 55 00:03:49,400 --> 00:03:53,100 read it, go get yourself a copy. And I'm going to walk us through 56 00:03:53,300 --> 00:03:56,400 some of the main aspects of Lean Startup. 57 00:03:56,600 --> 00:03:59,400 And I'm going to talk about some of the techniques that have 58 00:03:59,400 --> 00:04:04,600 evolved out of that movement which still exists today and 59 00:04:04,600 --> 00:04:09,300 people still use this concept and it's been graded integrated 60 00:04:09,300 --> 00:04:11,600 into the kind of design thinking. 61 00:04:11,700 --> 00:04:15,000 Being Lean Startup and agile approach that Gardener talked 62 00:04:15,000 --> 00:04:19,800 about quite a while ago. Now to and that relates to our 63 00:04:19,800 --> 00:04:27,100 model which is the people process Projects and product 64 00:04:27,100 --> 00:04:31,200 taking take the full P plus model which is an evolution of 65 00:04:31,200 --> 00:04:33,100 that little. Okay? 66 00:04:33,300 --> 00:04:37,200 So let's get started and I'll explain what the Lean Startup is 67 00:04:37,200 --> 00:04:41,000 about. So the Lean Startup primarily is 68 00:04:41,000 --> 00:04:45,600 around building something measuring and learning and 69 00:04:45,600 --> 00:04:51,100 cycling around in that format. So that is the fundamental 70 00:04:51,100 --> 00:04:56,400 philosophy of Lean Startup. And the idea is that there's 71 00:04:56,400 --> 00:05:00,800 this feedback loop and it involves building and MVP a 72 00:05:00,800 --> 00:05:04,300 minimum viable product. It's a lot of people who don't 73 00:05:04,300 --> 00:05:06,200 understand what an EVP really is. 74 00:05:06,400 --> 00:05:08,800 I think the best definition, there are a lot of definitions. 75 00:05:09,000 --> 00:05:13,700 Best definition comes from The Lean Startup so if you want to 76 00:05:13,700 --> 00:05:17,500 have one definition that you can, you know, wave your flag 77 00:05:17,500 --> 00:05:20,200 out. This is the definition you want 78 00:05:21,300 --> 00:05:24,700 the build measure, learn feedback. 79 00:05:24,800 --> 00:05:28,300 Back loop as wrap measuring how our customers use our product 80 00:05:28,300 --> 00:05:31,700 and losing learning from data to improve the product, right? 81 00:05:31,700 --> 00:05:35,900 And that doesn't mean once a product necessarily full and 82 00:05:35,900 --> 00:05:41,200 complete, it is just the idea of having that first increment out 83 00:05:41,200 --> 00:05:45,100 to the customer to get feedback as fast as possible with the 84 00:05:45,100 --> 00:05:49,000 premise of Not wasting any more money. 85 00:05:49,100 --> 00:05:53,200 So not going in the wrong direction or just not even 86 00:05:53,200 --> 00:05:56,000 knowing. If your idea is desirable that, 87 00:05:56,000 --> 00:05:59,800 actually what you thought was a great idea actually isn't and 88 00:05:59,800 --> 00:06:03,200 it's very hard to measure that if you haven't actually demoed 89 00:06:03,200 --> 00:06:06,000 something, or actually really release something to a product 90 00:06:06,200 --> 00:06:09,200 to a customer such that they can use it. 91 00:06:09,200 --> 00:06:11,000 Not not. So you're testing. 92 00:06:11,000 --> 00:06:12,400 Team can use it. Not. 93 00:06:12,400 --> 00:06:15,500 So your mate, who always tells you, you've got a great idea can 94 00:06:15,500 --> 00:06:18,000 use it. Okay, this is around your 95 00:06:18,000 --> 00:06:21,000 customers. And when you release a product 96 00:06:21,000 --> 00:06:25,700 to customers to people, you don't know who, you know, are 97 00:06:25,700 --> 00:06:32,800 not involved in, your are not necessarily there to support you 98 00:06:32,800 --> 00:06:37,600 emotionally or to, you know, to Pat you on the back because 99 00:06:37,600 --> 00:06:39,500 you've produced something that looks cool. 100 00:06:39,900 --> 00:06:42,700 Customers are people that are willing to pay for your product. 101 00:06:42,800 --> 00:06:46,400 So therefore a customer is going to be much more critical and you 102 00:06:46,400 --> 00:06:50,600 know, Even know the extent of how a customer will use your 103 00:06:50,600 --> 00:06:52,100 product until you put it in their hands. 104 00:06:52,100 --> 00:06:54,700 And as you get more, and more customers using the product, you 105 00:06:54,707 --> 00:06:58,500 will find bugs in it. You will find things that you 106 00:06:58,500 --> 00:07:02,300 never never expect a customers to do with your product. 107 00:07:02,300 --> 00:07:05,400 It's quite interesting out in the natural environment. 108 00:07:05,400 --> 00:07:10,600 Sometimes, people use whole products have been released to 109 00:07:10,600 --> 00:07:15,400 the market and have been used in a different way, then the vendor 110 00:07:15,400 --> 00:07:18,600 or the Ooh sir. Expected and you know, and 111 00:07:18,600 --> 00:07:20,500 that's where Innovation comes at. 112 00:07:20,600 --> 00:07:27,200 This is where the unexpected that's kind of learning what our 113 00:07:27,200 --> 00:07:29,200 customers use. Our product is quite interesting 114 00:07:29,200 --> 00:07:35,700 and some some well, no, and companies, you know, have have 115 00:07:35,700 --> 00:07:38,600 learned some amazing things from their customers and then they've 116 00:07:38,600 --> 00:07:41,200 Incorporated that back into their product. 117 00:07:41,800 --> 00:07:45,800 Okay? So when we talk about the Lean 118 00:07:45,800 --> 00:07:49,500 Startup, I guess it's around developing businesses and 119 00:07:49,500 --> 00:07:53,400 products that I am to shorten the development lifecycle and 120 00:07:53,400 --> 00:07:59,600 rapidly discover of a proposed business model is viable, okay? 121 00:07:59,800 --> 00:08:03,200 And this is achieved by adopting a combination of what we call a 122 00:08:03,200 --> 00:08:07,400 business hypothesis-driven, experimentation. 123 00:08:07,900 --> 00:08:08,900 Okay. So, it's basically 124 00:08:09,000 --> 00:08:14,900 hypothesis-driven or we create a hypothesis, which is the word we 125 00:08:14,900 --> 00:08:18,000 use in science, which says, we, I think that this is going to 126 00:08:18,000 --> 00:08:20,300 happen and we're going to go out and test that and we got to 127 00:08:20,300 --> 00:08:24,000 learn whether or not that's true or not and that might not just 128 00:08:24,000 --> 00:08:27,900 be customers, want our product but this feature is useful or 129 00:08:27,900 --> 00:08:32,000 this many customers will use this feature when we release it. 130 00:08:32,000 --> 00:08:36,799 And so that's the idea, you don't know, if 100 customers, 131 00:08:36,900 --> 00:08:41,400 you know of your 200 customers, 50% 100 of them are going a 132 00:08:41,408 --> 00:08:45,300 little embrace, your new feature when you add it to your product, 133 00:08:45,900 --> 00:08:47,700 you don't know. That until you release it to 134 00:08:47,700 --> 00:08:49,400 Market. So you've got to have a really 135 00:08:49,600 --> 00:08:51,800 good idea about how you're going to measure that. 136 00:08:51,800 --> 00:08:55,500 And so this is you know this is this is parsed Agile development 137 00:08:55,500 --> 00:09:00,400 as you may know about in terms of some of the organizations you 138 00:09:00,400 --> 00:09:03,500 work at here in New Zealand. This is around getting even 139 00:09:03,500 --> 00:09:06,200 features out there to Market. This is passed a be testing. 140 00:09:06,200 --> 00:09:11,100 This is knowing that that that feature you've added is actually 141 00:09:11,100 --> 00:09:14,500 usable and them so companies like I guess Spotify in some 142 00:09:14,500 --> 00:09:17,300 ways. I mean lots of says It's use 143 00:09:17,300 --> 00:09:20,400 this technique to get rapid feedback to turn off. 144 00:09:20,400 --> 00:09:22,400 Features. Microsoft, does it all the time 145 00:09:22,600 --> 00:09:24,900 in terms of going? Oh, that didn't work or no one's 146 00:09:24,900 --> 00:09:26,300 using it. Let's turn it off. 147 00:09:26,600 --> 00:09:28,700 I mean, some of these things are invested in a little bit, some 148 00:09:28,700 --> 00:09:30,500 of them not. We're going to be talking about 149 00:09:30,500 --> 00:09:33,400 how those companies do that without investing a lot of money 150 00:09:33,700 --> 00:09:37,400 which is which is the other side of the Lean Startup that I think 151 00:09:37,400 --> 00:09:42,000 is really important. What we need to focus on when we 152 00:09:42,000 --> 00:09:46,200 do, Lean Startup is, we need to emphasize customer feedback. 153 00:09:46,500 --> 00:09:50,300 Over intuition and flexibility over planning. 154 00:09:51,000 --> 00:09:52,900 Okay. So we got to be a little bit 155 00:09:52,900 --> 00:09:58,400 less rigid in the way in which we assume we've got the right 156 00:09:58,400 --> 00:10:02,800 answers. We should be we should be out of 157 00:10:02,800 --> 00:10:06,100 file and we should be out of fail fast and that's the idea we 158 00:10:06,100 --> 00:10:09,200 should be saying. Okay no that's not killer work 159 00:10:09,200 --> 00:10:10,800 that's far fast that saves US money. 160 00:10:10,800 --> 00:10:14,500 The idea of you know trying things quickly and in a very 161 00:10:14,500 --> 00:10:18,800 cheap way and if they fail we fail fast and we learn. 162 00:10:18,800 --> 00:10:23,400 So we start to reduce the number of variables in terms of our 163 00:10:23,400 --> 00:10:27,900 guesses, our hypothesis until we find a hypothesis that actually 164 00:10:27,900 --> 00:10:30,500 proves to be true and then we go down that cycle. 165 00:10:30,600 --> 00:10:35,000 And that's just the I mean if you look at and science its 166 00:10:35,000 --> 00:10:37,900 natural Evolution, it sort of survival of the fittest of you 167 00:10:37,900 --> 00:10:43,500 like and and so it's allowing us to use that natural technique to 168 00:10:43,500 --> 00:10:45,200 be able to, you know, natural selection. 169 00:10:45,200 --> 00:10:49,900 If you like to be able to to choose and focus our energy on 170 00:10:49,900 --> 00:10:55,100 the, I guess the pathway that is actually going to be the most 171 00:10:55,100 --> 00:10:59,200 successful. So we've talked about bold 172 00:10:59,200 --> 00:11:02,600 measure and learn that which is number one validated learning. 173 00:11:02,800 --> 00:11:06,300 So that's about using data to measure whether or not I'll pop 174 00:11:06,300 --> 00:11:10,000 the sis is correct or not and the our customers are telling us 175 00:11:10,000 --> 00:11:13,200 that while the data points from our customers are telling us 176 00:11:13,200 --> 00:11:17,500 that we're not just asking, was it cool we're saying or are they 177 00:11:17,500 --> 00:11:18,900 using it? Are we watching? 178 00:11:18,900 --> 00:11:22,000 We're watching, we're observing whether or not they use it and 179 00:11:22,000 --> 00:11:25,100 they use it the way we thought. They were, they willing to pay 180 00:11:25,100 --> 00:11:27,000 for that extra feature. Okay. 181 00:11:27,300 --> 00:11:29,900 And this helps not only does this help our product, but if 182 00:11:29,900 --> 00:11:32,900 we're a smaller company and I would argue this applies to all 183 00:11:32,900 --> 00:11:36,100 Enterprises within a product, sorry, within a project or 184 00:11:36,100 --> 00:11:40,100 program team, we know whether or not our by the business model or 185 00:11:40,100 --> 00:11:43,300 a project model or our Enterprise architecture or our 186 00:11:43,308 --> 00:11:45,700 business architecture is actually valid. 187 00:11:45,700 --> 00:11:50,200 Is that model actually true. Our assumptions, true you would 188 00:11:50,200 --> 00:11:53,400 have heard this word used a lot, which is Pivot. 189 00:11:53,600 --> 00:11:55,300 I'm going to Pivot. I mean, there's lots of means 190 00:11:55,300 --> 00:11:56,700 about it and perfect. A bit. 191 00:11:57,300 --> 00:11:59,300 Okay, that's where this came from. 192 00:11:59,700 --> 00:12:03,200 So the word pivot was, if things are not working. 193 00:12:03,200 --> 00:12:08,700 We pivot to either a different different tests or we pivot 194 00:12:08,700 --> 00:12:12,900 completely to a different idea which is still under our company 195 00:12:12,900 --> 00:12:16,000 vision and Mission. So if we want to develop, we 196 00:12:16,000 --> 00:12:20,000 talked about a minivan that could drop people down at the 197 00:12:20,000 --> 00:12:22,200 train station. And one example, one of our 198 00:12:22,200 --> 00:12:25,700 podcasts and for example we said, well, we you know, we 199 00:12:25,700 --> 00:12:28,300 haven't actually tested That year we don't know if it's 200 00:12:28,300 --> 00:12:31,600 desirable yet. So we're going to do a little in 201 00:12:31,600 --> 00:12:34,800 VP and we can use that as an example as we go through this. 202 00:12:35,900 --> 00:12:39,700 Let's say for whatever test we did we've found out that people 203 00:12:39,700 --> 00:12:44,200 weren't willing to pay the cost that we needed to get in order 204 00:12:44,400 --> 00:12:49,100 to you know make it a sustainable and viable business 205 00:12:49,100 --> 00:12:52,300 in order to pick people up, they weren't willing to pay the $20 206 00:12:52,500 --> 00:12:56,700 charge that we needed to to be able to bring in a profit. per 207 00:12:56,700 --> 00:13:01,100 customer per, you know, per per day for example per week and so 208 00:13:01,100 --> 00:13:03,500 we needed a pivot and so we realized okay a minivans not 209 00:13:03,500 --> 00:13:07,500 going to work, you know, maybe we do a bus and a bus or changed 210 00:13:07,500 --> 00:13:11,100 our cost model, we could pick up more people and maybe the $10 211 00:13:11,100 --> 00:13:15,500 they're willing to to pay would be a different business model, 212 00:13:15,500 --> 00:13:18,200 because we've got a different cost structure there and we've 213 00:13:18,200 --> 00:13:21,400 changed, you know, the inputs and the processes we use in 214 00:13:21,400 --> 00:13:24,000 because we're using a Buffs to pick people up and that's quite 215 00:13:24,000 --> 00:13:27,300 a different business model that's the idea of Pivoting. 216 00:13:27,300 --> 00:13:32,600 So we've pivoted, with NL, same Mission, our same kind of Target 217 00:13:32,600 --> 00:13:35,200 kind of state or problem. We're trying to solve that still 218 00:13:35,200 --> 00:13:38,500 the same, but we've pivoted how we're going to solve that 219 00:13:38,500 --> 00:13:40,500 problem. So that's permitting and then 220 00:13:40,500 --> 00:13:45,100 the other one is I guess we can. We could just preserve what 221 00:13:45,100 --> 00:13:47,000 we've done and say. We're going to preserve this 222 00:13:47,200 --> 00:13:49,500 where we've learnt that this B working. 223 00:13:49,500 --> 00:13:53,100 This isn't so we're going to focus our attention on to on 224 00:13:53,100 --> 00:13:55,900 this area. So so I'll say that again. 225 00:13:56,100 --> 00:14:00,700 So, Say you've releasing the service we talked about with the 226 00:14:00,700 --> 00:14:02,400 van. You said, that's a really great 227 00:14:02,400 --> 00:14:06,300 idea, but actually, we can retain that whole business 228 00:14:06,300 --> 00:14:08,100 model, but it's not just the train station. 229 00:14:08,100 --> 00:14:11,900 People necessarily want to go to their want to go to the city. 230 00:14:12,100 --> 00:14:14,200 And so, we're preserving the business model, but we're 231 00:14:14,200 --> 00:14:16,100 changing some of the aspects of it. 232 00:14:16,100 --> 00:14:17,900 And that's, we're preserving that. 233 00:14:17,900 --> 00:14:20,300 We've learned that a whole business model that actually 234 00:14:20,300 --> 00:14:22,700 viable. And the willing to pay for that 235 00:14:22,700 --> 00:14:25,800 service, but we're changing some of the parameters, that's 236 00:14:25,800 --> 00:14:28,400 preserving. The other the other thing is 237 00:14:28,400 --> 00:14:31,800 it's really important to learn how to serve a how to run 238 00:14:31,800 --> 00:14:35,300 experiments we talked about and how we need to observe our 239 00:14:35,300 --> 00:14:37,300 customers and that's something you learn through. 240 00:14:37,500 --> 00:14:41,500 Lean Startup it's really putting the customer in the center of 241 00:14:41,500 --> 00:14:43,500 your development, literally. Okay. 242 00:14:43,500 --> 00:14:49,200 In some cases they are involved are the of course, the other 243 00:14:49,700 --> 00:14:54,700 part that I like about Lean Startup and joins, the world of 244 00:14:54,700 --> 00:15:01,200 internal, kind of Really internally focused what we used 245 00:15:01,200 --> 00:15:04,800 to call business Improvement. If you take the Lean Startup 246 00:15:04,800 --> 00:15:08,200 approach and start to bring it right to the customer and don't 247 00:15:08,200 --> 00:15:12,600 make it an operational problem and you actually incorporate it 248 00:15:12,600 --> 00:15:16,300 up front. You actually have true custom, 249 00:15:16,500 --> 00:15:20,000 sorry, continuous Improvement because you're continually 250 00:15:20,300 --> 00:15:23,000 talking to your customer and feeding their into your kind of 251 00:15:23,000 --> 00:15:25,400 Enterprise and strategic planning. 252 00:15:25,700 --> 00:15:28,100 And Obviously into your product development. 253 00:15:28,100 --> 00:15:30,900 So for me that's where true continuous Improvement comes 254 00:15:30,900 --> 00:15:34,100 from is when you apply and Lean Startup approach. 255 00:15:34,900 --> 00:15:37,000 Okay. So I guess the benefit is we 256 00:15:37,000 --> 00:15:42,300 were reducing risk here by not you know, by filing fast and 257 00:15:42,300 --> 00:15:45,000 learning which of our hypotheses are actually true. 258 00:15:45,200 --> 00:15:47,000 So we actually learn our data straight away. 259 00:15:47,100 --> 00:15:51,500 So actually more sure that the path that we getting down is 260 00:15:51,500 --> 00:15:56,300 true or is or at least know that the path that we thought about. 261 00:15:56,400 --> 00:15:58,500 About hitting down and got feedback on. 262 00:15:58,800 --> 00:16:00,600 That's it. At wasn't working very, very 263 00:16:00,600 --> 00:16:04,200 quickly meant that we weren't wasting our money on a bad idea. 264 00:16:04,600 --> 00:16:08,200 So we're starting to like really tuned in on the right path and 265 00:16:08,200 --> 00:16:11,000 that actually reduces risk. So you could say this sounds 266 00:16:11,000 --> 00:16:14,000 really loose been how could we apply this to you know, program 267 00:16:14,000 --> 00:16:18,300 planning or business casing? This is actually statistically a 268 00:16:18,300 --> 00:16:23,700 better model for reducing risk and of course it the idea of 269 00:16:23,700 --> 00:16:26,300 using MVPs which we'll talk about soon. 270 00:16:26,900 --> 00:16:29,800 Increases speed to Market, we gettin it, we gettin things to 271 00:16:30,100 --> 00:16:33,600 be getting a product to the market faster, so that we can 272 00:16:33,600 --> 00:16:37,400 actually start generating room profit, potentially and getting 273 00:16:37,400 --> 00:16:41,800 feedback well before. You know, we've spent six months 274 00:16:41,800 --> 00:16:46,700 in a dark room here and improves our decision-making by making 275 00:16:46,700 --> 00:16:50,800 sure that we've actually got data-driven insights from 276 00:16:50,800 --> 00:16:52,900 customers with measuring all of those. 277 00:16:53,100 --> 00:16:56,500 So data is a huge part of this and having playing, you know, No 278 00:16:56,500 --> 00:17:00,500 data science to the data points that we need to capture from our 279 00:17:00,500 --> 00:17:03,400 customers AKA. I don't know, measuring their 280 00:17:03,400 --> 00:17:06,599 Mouse Clips on our website seeing if they're using the new 281 00:17:06,599 --> 00:17:11,000 menu and features we've got, you know, seeing whether or not that 282 00:17:11,000 --> 00:17:15,700 where they dropped off in the sales process to that it cart, 283 00:17:15,700 --> 00:17:17,800 or did they love the landing page? 284 00:17:17,800 --> 00:17:20,200 But when they looked at the price, they dropped off a 285 00:17:20,200 --> 00:17:23,500 website that these are all the kind of data points that need to 286 00:17:23,500 --> 00:17:26,099 be really you know, measured front and center. 287 00:17:26,400 --> 00:17:28,600 We can start to measure therefore whether or not that 288 00:17:28,600 --> 00:17:32,500 new feature, the estimate the parameters around, it around 289 00:17:32,500 --> 00:17:40,400 price description, kind of experience or demo or you know, 290 00:17:40,500 --> 00:17:46,400 pictures or video describing service pop the customer off or 291 00:17:46,400 --> 00:17:49,500 made them want to know more. We can measure, you know, the 292 00:17:49,500 --> 00:17:53,700 time they watch the video for, you know, whether or not this 293 00:17:53,700 --> 00:17:56,700 was something they added to their cart after That it is 294 00:17:56,708 --> 00:17:59,100 another product, was it, something we could upsell. 295 00:17:59,100 --> 00:18:04,000 So these are all know, this is all modern-day insights that we 296 00:18:04,000 --> 00:18:07,900 using here. So that is, you know, that is 297 00:18:07,900 --> 00:18:10,100 all the Lean Startup. So if any of that interest you, 298 00:18:10,300 --> 00:18:14,100 if you can think of any of that and think I could apply that to 299 00:18:14,100 --> 00:18:17,200 my project today or to my organization, read The Lean 300 00:18:17,200 --> 00:18:21,100 Startup. Now, the other aspect of Lean 301 00:18:21,100 --> 00:18:25,700 Startup which it talks about, and that's kind of now the rule 302 00:18:26,400 --> 00:18:30,200 When it comes to projects and products is MVPs. 303 00:18:30,900 --> 00:18:37,000 And what we talked about in The Lean Startup is different types, 304 00:18:37,100 --> 00:18:39,500 okay? And, and by defining these types 305 00:18:39,500 --> 00:18:45,500 of MVP and describing near these various, I guess variations of 306 00:18:45,500 --> 00:18:49,000 how you can test a product rapidly. 307 00:18:49,000 --> 00:18:52,100 So the MVP being the minimum viable product, meaning you can 308 00:18:52,100 --> 00:18:56,100 get to Market ASAP. When we in agile, we talk about 309 00:18:56,100 --> 00:18:57,300 it. As an increment. 310 00:18:57,300 --> 00:19:00,000 And so an MVP could be your first increment at the end of 311 00:19:00,000 --> 00:19:04,400 your first Sprint. How can you achieve the idea of 312 00:19:04,400 --> 00:19:08,400 a Indian product and only two weeks print, but that's what 313 00:19:08,400 --> 00:19:11,200 agile talks about. So, when you delve deeper in 314 00:19:11,200 --> 00:19:15,100 terms of these types of in vp's, you can start to understand how 315 00:19:15,100 --> 00:19:18,700 you can apply these techniques in order to release something to 316 00:19:18,700 --> 00:19:22,100 your customers, very rapidly. Okay, so I'm going to describe 317 00:19:22,100 --> 00:19:26,600 these in vp's. One is kanji used in VP, This 318 00:19:26,600 --> 00:19:30,300 type of MVP is where you provide a service to a customer 319 00:19:30,500 --> 00:19:33,600 manually. Okay. 320 00:19:34,500 --> 00:19:38,900 So the purpose of doing this not no automation, you're providing 321 00:19:38,900 --> 00:19:42,300 a service to the customer manually and I will say that you 322 00:19:42,300 --> 00:19:46,500 can Mash these MVPs up. So for example, your back-end 323 00:19:46,500 --> 00:19:50,400 could be manual and your front end could be a website or the 324 00:19:50,400 --> 00:19:53,500 other way around. You could have a person taking 325 00:19:53,500 --> 00:19:56,800 orders manually and then you're backing, could be automated. 326 00:19:56,800 --> 00:19:59,100 So you can match these up, they don't stand alone. 327 00:19:59,400 --> 00:20:04,400 However, the idea of a conscious MVP, Is that as a good way to 328 00:20:04,400 --> 00:20:08,500 test the demand for your product before you're actually investing 329 00:20:08,500 --> 00:20:13,400 in building anything? If we were to take our example 330 00:20:13,400 --> 00:20:17,200 of the minivan driving around lower her up, you know, to pick 331 00:20:17,200 --> 00:20:20,500 up customers to drop them at the train station as we talked about 332 00:20:20,500 --> 00:20:26,000 in our last podcast. Well then what we could do is 333 00:20:26,200 --> 00:20:31,000 focus on just delivering the service AKA just have the van 334 00:20:31,000 --> 00:20:35,000 driver driving around. And instead of building a whole 335 00:20:35,000 --> 00:20:39,800 web interface that has smarts like peak times and a schedule, 336 00:20:39,900 --> 00:20:43,800 we could simply just have a Number or you know, email 337 00:20:43,800 --> 00:20:48,500 address and say people email us and outpost it, you know, 338 00:20:48,500 --> 00:20:52,900 posters to and brochures to the local area. 339 00:20:53,300 --> 00:20:57,700 And the whole point is for us just to focus on whether or not 340 00:20:57,700 --> 00:20:59,600 there's any demand for the product. 341 00:20:59,800 --> 00:21:02,300 So instead of building the whole interface which might actually 342 00:21:02,300 --> 00:21:05,200 cost money and you know, that's, you know, we might be a tech 343 00:21:05,200 --> 00:21:07,400 company. That's what our true product 344 00:21:07,400 --> 00:21:11,500 actually is, we could perform cons years in VP, which It means 345 00:21:11,500 --> 00:21:15,100 that we are actually manually scheduling were mentally calling 346 00:21:15,400 --> 00:21:19,100 our van driver. We manually manually notifying 347 00:21:19,100 --> 00:21:21,800 customers that the van is leaving. 348 00:21:21,800 --> 00:21:25,800 And, you know, to be at this location at this time and all 349 00:21:25,808 --> 00:21:27,600 the rest of it. So that's con Jewish. 350 00:21:28,800 --> 00:21:32,700 The second MVP type is what we call Wizard of Oz. 351 00:21:32,700 --> 00:21:35,400 In. VP, this type of in VP is when 352 00:21:35,400 --> 00:21:41,800 we use automation to simulate a fully functioning product. 353 00:21:42,400 --> 00:21:51,500 So this is a good way of kind of having Magic or smoke and 354 00:21:51,500 --> 00:21:53,000 mirrors happening in the background. 355 00:21:54,200 --> 00:22:01,100 So we might automate something, which is only, you know it's not 356 00:22:01,100 --> 00:22:05,000 actually happening but the user feels like it's happening. 357 00:22:05,300 --> 00:22:10,000 So in the example with our van, we might have a website that 358 00:22:10,200 --> 00:22:15,000 looks like it is automatically emailing back and forth and 359 00:22:15,000 --> 00:22:21,100 might even have a video of the van picking someone up, but it's 360 00:22:21,100 --> 00:22:23,200 all smoke and mirrors. It's not all connected. 361 00:22:23,400 --> 00:22:25,400 Third and a fully functioning product. 362 00:22:25,400 --> 00:22:28,300 So it's what we call Wizard of Oz, you know, there's stuff 363 00:22:28,300 --> 00:22:30,500 happening behind the curtain that you don't see that we are 364 00:22:30,500 --> 00:22:34,800 rapidly moving data from one system to the other, it's not 365 00:22:34,800 --> 00:22:37,400 full. So we're only only exposing the 366 00:22:37,400 --> 00:22:38,900 front end of your like the interface. 367 00:22:38,900 --> 00:22:42,200 So it looks like it's automated and there might be semi and 368 00:22:42,200 --> 00:22:46,000 automation happening. The other MVP is a landing page 369 00:22:46,000 --> 00:22:50,800 in vp2 might simply just have a landing page and say, for 370 00:22:50,800 --> 00:22:55,400 example, coming soon or This product and might have 371 00:22:55,400 --> 00:22:56,900 description of what the product is. 372 00:22:57,100 --> 00:23:00,400 And again, I might have a video and I might just have a sign-up 373 00:23:00,400 --> 00:23:03,800 page, so that's an MVP. This is a really good way of 374 00:23:03,800 --> 00:23:07,200 testing whether or not there's demands, its feels like it's all 375 00:23:07,200 --> 00:23:08,700 there. But actually you're not going to 376 00:23:08,708 --> 00:23:11,800 launch the product unless there's say 100 people that have 377 00:23:11,800 --> 00:23:16,200 pre-ordered this or suggested that they want to know more. 378 00:23:17,800 --> 00:23:20,400 There is actually other two. Other products is something 379 00:23:20,400 --> 00:23:22,900 called a minimum lovable product. 380 00:23:23,000 --> 00:23:26,800 And that, That focus is focuses on creating product, that is 381 00:23:26,800 --> 00:23:29,500 both functional and appealing to users. 382 00:23:29,800 --> 00:23:35,800 So an MLP is a product that uses loved use even if it doesn't 383 00:23:35,800 --> 00:23:40,200 have all the features they want. So, this is about a fully, you 384 00:23:40,200 --> 00:23:44,600 know, a fully functioning product, for example, with our 385 00:23:44,600 --> 00:23:49,300 van service, but it might not. It might only just do it, might 386 00:23:49,300 --> 00:23:51,200 not have all the in features we want. 387 00:23:51,200 --> 00:23:54,400 So it might just have the, you know, Landing Age must have 388 00:23:54,400 --> 00:23:57,400 email and a might just pick people up and it may only work 389 00:23:57,400 --> 00:24:01,400 on a Tuesday because we can't afford to expand or scale to a 390 00:24:01,400 --> 00:24:04,300 Wednesday, Thursday, just yet. But people are loving that 391 00:24:04,300 --> 00:24:08,300 Tuesday, pick-up day, so that's minimum lovable product and they 392 00:24:08,300 --> 00:24:11,300 love that and you can measure that by Customs coming back and 393 00:24:11,300 --> 00:24:14,700 paying for it and it being viable in terms of an 394 00:24:14,700 --> 00:24:16,900 organization. And then there's the idea of a 395 00:24:16,908 --> 00:24:20,000 minimum viable feature. And that's just means that 396 00:24:20,000 --> 00:24:24,200 there's a, the idea of focusing on a single A core feature of 397 00:24:24,208 --> 00:24:26,600 your product and releasing it straight away and getting 398 00:24:26,600 --> 00:24:29,000 feedback straight away. So, that's quite interesting. 399 00:24:29,000 --> 00:24:33,100 And a lot of times that when we talk about MVP we're actually 400 00:24:33,300 --> 00:24:35,700 talking about an MV. If m. 401 00:24:35,700 --> 00:24:39,700 V, if being a minimum viable feature, okay, the development 402 00:24:39,700 --> 00:24:43,100 team and an agile environment have worked on one feature, one 403 00:24:43,100 --> 00:24:47,100 part, maybe the back end or the Middle where layer or the 404 00:24:47,100 --> 00:24:50,300 landing page or the, you know, that's actually fully 405 00:24:50,300 --> 00:24:53,100 functioning but it's, it's been chopped and a different way. 406 00:24:53,100 --> 00:24:56,800 It's A full slice of the cake, it's just the topping and so 407 00:24:56,800 --> 00:25:00,300 that happens a lot. And it's kind of used as a 408 00:25:00,300 --> 00:25:03,400 replacement for every pain. It's not actually the case in BP 409 00:25:03,500 --> 00:25:08,200 being a full experience for a customer all the way showing the 410 00:25:08,200 --> 00:25:12,200 truth full service. Even if that true service is 411 00:25:12,700 --> 00:25:16,500 happening, manually behind the scenes or hasn't fully evolved 412 00:25:16,500 --> 00:25:21,600 yet or just simply a video of what the possibility could be. 413 00:25:22,200 --> 00:25:24,700 So that's the idea of an BP. And I really hope that you've 414 00:25:24,700 --> 00:25:28,800 learned more about what that means and you now know what Lean 415 00:25:28,800 --> 00:25:32,400 Startup is the final. But I'm going to talk about here 416 00:25:32,400 --> 00:25:35,500 is something I use often in the be a world. 417 00:25:35,500 --> 00:25:39,700 You may have heard of the business model canvas, it's a 418 00:25:39,700 --> 00:25:44,200 great one pager that you can use to use internally. 419 00:25:44,200 --> 00:25:48,300 When you do strategic strategic analysis internal locking, you 420 00:25:48,300 --> 00:25:51,000 don't know what it is. Look it up business model canvas 421 00:25:51,000 --> 00:25:54,400 and when the Lean Startup Evolved. 422 00:25:54,500 --> 00:25:59,700 There's actually a guy called Ash hope I get his last name, 423 00:25:59,700 --> 00:26:03,200 right? It is a I'm pretty sure it's 424 00:26:03,200 --> 00:26:09,700 called miren, miren, ra and Asthma and Asthma and he runs a 425 00:26:09,700 --> 00:26:15,400 website, these days called lean stack, but he developed the lean 426 00:26:15,400 --> 00:26:20,800 canvas, and the lean canvas was integrating, The Lean Startup 427 00:26:21,000 --> 00:26:25,000 and using the business model canvas as As its kind of origin 428 00:26:25,000 --> 00:26:29,400 and its format a one pager and so you end up having what we 429 00:26:29,400 --> 00:26:33,000 call a lean canvas and you may have use those at your work 430 00:26:33,000 --> 00:26:35,400 except for people would really notorious using them. 431 00:26:35,800 --> 00:26:40,000 So if you don't know what, I'll lean canvas has look it up the 432 00:26:40,000 --> 00:26:42,700 you may think they're fill-in left to right, you don't you 433 00:26:42,700 --> 00:26:45,100 start with your customers or your early adopters. 434 00:26:45,300 --> 00:26:47,700 They're people that are the people who are going to use 435 00:26:47,700 --> 00:26:49,900 your, you guarantee they're going to use your product or 436 00:26:49,900 --> 00:26:51,900 pretty much guarantee that you'll use your product. 437 00:26:51,900 --> 00:26:54,800 If it's got any desirability, And then you've got your Target 438 00:26:54,800 --> 00:26:58,100 customers and you look at your problems you're solving and then 439 00:26:58,100 --> 00:27:02,500 the solutions to those problems and then the product and any 440 00:27:03,000 --> 00:27:06,900 against unique, value proposition that you've got, and 441 00:27:06,900 --> 00:27:10,500 any kind of special Advantage you've got and the existing 442 00:27:10,500 --> 00:27:14,600 Alternatives, the cost model Revenue model and then kind of 443 00:27:14,600 --> 00:27:16,500 your channels out to your customers. 444 00:27:17,100 --> 00:27:20,800 So, I've rapidly talked about that and it's something that you 445 00:27:20,800 --> 00:27:23,200 really need visualize. I'm not going to spend too long. 446 00:27:23,300 --> 00:27:26,000 Long on the podcast about it, but I will have to check a link 447 00:27:26,000 --> 00:27:30,600 up on to our blog on the Better Business analysis website and so 448 00:27:30,600 --> 00:27:33,300 you'll be able to look at that and it's really fantastic if 449 00:27:33,300 --> 00:27:37,100 you're doing strategic sorry, Enterprise analysis, and helping 450 00:27:37,100 --> 00:27:40,100 your customers look externally by. 451 00:27:40,100 --> 00:27:43,000 Trying a new idea, a new feature, any of these things. 452 00:27:43,000 --> 00:27:45,900 We talked about trying a new product taking your existing 453 00:27:45,900 --> 00:27:48,500 products and actually seeing whether or not, they're heading 454 00:27:48,500 --> 00:27:51,400 your Target customer. And having a conversation about 455 00:27:51,400 --> 00:27:55,000 who your Target customers are Because I will say that a lot of 456 00:27:55,000 --> 00:27:58,800 companies have no idea who their end Target customer is, or at 457 00:27:58,808 --> 00:28:01,200 least their personas and their customers segments. 458 00:28:02,100 --> 00:28:05,500 So Lean Startup, your action today is to go get yourself a 459 00:28:05,500 --> 00:28:12,000 copy either online, You Know, download the Epub for the book. 460 00:28:12,400 --> 00:28:16,400 I've got the book at home and I have a copy that ePub which I 461 00:28:16,600 --> 00:28:21,500 constantly refer back to check out lean stack as well and you 462 00:28:21,500 --> 00:28:25,500 know Ash has there's a Very smart guy who's got other books 463 00:28:25,500 --> 00:28:28,300 around skating lane? We won't talk about that today. 464 00:28:28,300 --> 00:28:31,500 But if you're into business, the really great website to check 465 00:28:31,500 --> 00:28:36,100 out and Eric Reeves is the man. And that's all we've got time 466 00:28:36,100 --> 00:28:38,500 for today, so I'll catch you next time.