Introduction to Lean Startup e Agile - UBI - Universidade da … ·  · 2015-11-04Introduction to Lean Startup e Agile Farley Millano farleymillano@gmail.com 1. ... Lean Startup

Introduction to Lean Startup e Agile

Farley Millano farleymillano@gmail.com

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Agenda [1/2]

Introduction

Lean Startup

History

MVP concept

Engines of growth

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Agenda [2/2]Agile

Agile Manifesto

Scrum

Why Scrum?

Framework, Roles e Artifacts

Tools

Planning exercise

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Introduction.

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Ok, I’ve published a game.http://www.nasa.gov/images/content/369257main_launch3_full.jpg5

… now WHAT?

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http://images.nationalgeographic.com/wpf/media-live/photos/000/239/cache/cape-canaveral-shuttle-launch_23920_990x742.jpg7

OR…

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https://anishism.files.wordpress.com/2014/08/a-baa-rocket-fail.jpg9

neither, it is more like…

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https://www.facebook.com/photo.php?fbid=10207167960743327&set=t.666601469&type=3&theater

Startsmall.

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Why?

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Cloud is accessible. Social is free. APIs abound.

Low barrier app stores.

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v0.1 is extremely cheap.

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It’s very hard to predict.

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Innovate is very hard.

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"Planning is guessing.” Jason Friedman - Rework

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“61% projects are failed or challenged.” (Chaos Report, 2012)

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"On average, large IT projects run 45% over budget and 7%

over time, while delivering 56% less value than

predicted.” (McKinsey + Oxford, 2012)

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Myriad of (f)actors: stakeholders + market

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"If we build it, they will come.” …

"I have learned from both my own successes and failures and those of

many others that it’s the boring stu︎ff that matters the most.”

Eric Ries - Lean Startup

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Lean Startup.

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Fail fast. Learn faster.

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Lean StartupMotivation/origin: Lean Manufacturing

Set of management practices derived from japanese companies, being most notable the Toyota Production System (TPS).

Value-oriented thinking

Add only what is perceived as valuable from costumer perspective: eliminate waste

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Lean StartupEric Ries

Lean Startup author, founder and CTO from There Inc. and IMVU.

Participated on a university course and was invested by Steve Blank (professor at Stanford).

Ries combined Steve’s famous method, Costumer Development, with Lean Thinking.

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Lean Startup

Lean Startup is about validated learning.

How?

Pretty much how science works: problem formulation, hypothesis set and experimentation.

Build-Measure-Learn cycle.

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Lean StartupMinimum Viable Product:

"Incomplete" version of the product to be tested in real world / costumer setting.

Reflects ONLY a set of hypothesis defined by product development team.

Must be developed with minimum effort.

All else is WASTE (well, at least for now :) )

Enable a full turn of the Build-Measure-Learn cycle

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Lean Startup

Minimum Viable Product

Sounds interesting, but… who practices this?

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Lean Startup [MVP]

Dropbox: to test the hypothesis whether people would be interested in seamless file-sync, instead of building a full-fledge application, Dropbox founders created a video explaining the experience. Beta-test signups skyrocketed from 5,000 to 75,000.

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Lean Startup [MVP]

Airbnb: on what can be called their MVP 0.1, the first apartment to be rented in the platform was its founders very own during a conference is SF. Another example is the offer for professional photography, they that with only 20 photographers on the field, which led to 3x more bookings.

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Lean Startup [MVP]

Apple: it is fairly easy to forget, but iPhone’s first iteration didn’t have much of very basic features such as cut and paste or Apps (or even use 3G network!!!). The rest is history.

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Lean StartupMinimum Viable Product

What does GAME development has to do with it?

Eric Ries, Lean Startup author, developed the method from his experience within IMVU - an avatar-based gamified social network.

It is relatively easy to notice social or mobile games constant update behaviour.

Console game: availability of new DLCs.

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Lean Startup [MVP]

Games: https://www.youtube.com/watch?v=UvCri1tqIxQ

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Lean Startup [MVP]

Plinks: the first version was launched to test engagement and performance on Brazilian public schools infrastructure. After several iterations, it was decided to segment navigation in low and HD version of the product, according to machine and network performance.

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Lean Startup [MVP]Important notes about MVP:

The most important letter in MVP acronym is the V from VIABLE.

Minimum effort, but sufficiently engaging and testable.

Minimum ≠ Crap (although a certain version might be entirely changed/discarded).

Common mistake: association with more (or less) features in a single product.

Art, content, narrative, strategy, etc. certainly play a really special role here.

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Lean Startup [Engines]

There are 3 growth engines that must drive product development:

Virality engine

Sticky engine

Paid engine

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Lean Startup [Engines]Why are these engines so important?

http://taterunino.net/statcharts/signupstotal400.jpg38

Lean Startup [Engines]Virality engine

Usually associated with product launch phase.

It is as simple as: making your user base work for you.

Focus on growing user base

Costumers bringing other costumers

Social networks

Online gaming

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Lean Startup [Engines]Virality engine

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Lean Startup [Engines]Virality engine

How do I know if my engine is working?

Viral coefficient (must be higher than 1.0)

Email linkage

Number of invitations sent

Number of invitations accepted

Viral cycle time

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Lean Startup [Engines]

Sticky engine

Focus on user retention: engagement over time.

Sometimes total number of users doesn’t say much of a product relevance.

Active users is always relevant.

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Lean Startup [Engines]Sticky engine

How do I know if my engine is working?

Focus on metrics, not limited to, but mostly:

Costumer retention rate

Churn rate

Usage frequency

Time since last visit

Click through rate: notifications / emails opened

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Lean Startup [Engines]Paid engine

Usually (not always) is the last engine to turn on

Getting paid is the bottom line of a product success

Simple math:

Money paid > Money to acquire a user

Actually is more complex than that

Cash flow is really important

% earned money must be timely invested back in acquiring new costumers

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Lean Startup [Engines]

Paid engine

How do I know if my paid engine is working?

Costumer lifetime value (CLV)

Costumer acquisition cost (CAC)

Time to costumer breakeven

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Lean Startup [Engines]

http://csbcorrespondent.com/sites/csbcorrespondent.com/files/Customer_Value.png

Time to costumer breakeven

Overall profit

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Lean Startup [Engines]

Farmville: Zynga’s most known success is a game which has as one of its central features the social invitation via Facebook. Users can invite others to earn power-ups, for example. This is a classic version of a game that relies on the virality engine.

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Lean Startup [Engines]

Plants vs. Zombies 2: for its new version Plants vs. Zombies migrated to a free-to-play model. Usually, free-to-play games are constantly fine-tuning its sticky engine. Users must be engaged to generate revenue - ads, in-app purchases, etc.

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Lean Startup [Engines]

Fifa 16: console version of this game relies heavily on its paid engine. It is a yearly game that must be capable of acquire a huge number of paying users to cover its development/marketing costs.

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Lean Startup

"Is it the (best) solution for all the problems?"

As any model, it has some limitations and advantages for some specific context.

"How do I start?"

Start doing, more than a fixed, one-size fits all method, it is about practicing and learning.

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Lean Startup"But I am only a game designer/programmer… do I really need to care about revenue, growth, user retention, etc.?"

The answer is: it depends, if it’s a hobby just done for fun, no. Otherwise, if you want to pay your bills, then yes.

Building MVPs is a multidisciplinary work.

"Is it boring as it seems? Will that hinder my creativity?"

It is quite the opposite (although it is not easy to execute).

The act of constant experimentation is really stimulating and joyous.

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Agile.

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What is "Agile"?Encapsulate a certain practices/methodology/frameworks for software development and management.

Multidisciplinary, overlapping, flexibility e speed.

Agile Manifesto (Beck et al, 2001): elaborated by several practitioners.

XP, FDD, Crystal Clear, Scrum…

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What is “Agile”?

Individuals and interactions over Processes and tools.

Working software over Comprehensive documentation.

Customer collaboration over Contract negotiation.

Responding to change over Following a plan.

Agile Manifesto (Kent et al, 2001)

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Agile Manifesto 12 principles

1.Customer satisfaction by rapid delivery of useful software

2.Welcome changing requirements, even late in development

3.Working software is delivered frequently (weeks rather than months)

4.Close, daily cooperation between business people and developers

5.Projects are built around motivated individuals, who should be trusted

6.Face-to-face conversation is the best form of communication (co-location) Agile Manifesto (Kent et al, 2001)

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Agile Manifesto 12 principles

7.Working software is the principal measure of progress

8.Sustainable development, able to maintain a constant pace

9.Continuous attention to technical excellence and good design

10.Simplicity—the art of maximizing the amount of work not done—is essential

11.Self-organizing teams

12.Regular adaptation to changing circumstanceAgile Manifesto (Kent et al, 2001)

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What is Scrum?Agile iterative framework for product development management.

Identified by Takeuchi & Nonaka, 1986 - New New Product Development (Harvard Business Review).

Extensible and adaptable for certain contexts.

36% of Scrum practitioners are already not related to IT.

Self-managed collaborative multidisciplinary team.

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What is Scrum?“Scrum is not a prescriptive process; it does not describe what to do in each circumstance.

Scrum is used for complex works in which is impossible to predict everything that is going to happen”. (Schwaber, 2004)

(IBIE, 2007)

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Why Scrum?It is a relatively new perspective for project execution and, among agile ones, is the most detached from software world.

New theoretical implications (as per models in the previous slide)

Offers planning flexibility: plans only current Sprint and not whole project.

Example: new items can be added to Product Backlog across time.

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Why Scrum?

Rapidly aggregates value (client perspective)

Larger business value items are delivered earlier in the project.

Approximates "actions" to “answers" for project context.

Shorter cycles => + feedbacks

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Theoretical implicationsConcepts Traditional methodologies

(PMBOK) Scrum

Project Transformation Flow & Value Generation

Management/Planning Mgmt as planning Mgmt as planning &

Mgmt as organizing

Management/Execution Job dispatching Language / action

perspective

Management/Control Thermostat Scientific experiment

& Thermostat

(Koskela, 2002)61

Scrum framework

Project is divided in cycles with fixed duration (Sprints).62

Scrum framework1. Sprint Planning: prioritise, select and estimate a set of Product Backlog items. This subset is then called Sprint

Backlog.

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Scrum framework2. Daily Scrum: during the

execution of the current cycle, team manages itself for Sprint

Backlog completion. They meet daily for catch-up and

progress report.

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Scrum framework3. Sprint Review: At the end of the

Sprint, the team presents the developed deliverable (product increment) and

obtain feedback from stakeholders. This can lead to the inclusion of new Product

Backlog items or reprioritise.

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Scrum framework4. Retrospective: After the review, a meeting is held so that the team can discuss processes employed in the last cycle and can propose optimisations for the next cycle.

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Scrum - Important concepts / Tools

Product Owner: responsible to be costumer representative within a project.

Scrum Master: this role is responsible that Scrum team follows the process and removes impediments.

Story points (SP): unit that measure the size (not hours!) of each story. Usually it is used a Fibonacci sequence.

Velocity: total of story points that a particular team delivers each Sprint.

Business value (BV): is the business equivalent to story points, represents relative importance of a story regarding business perspective. Combined with SP, it can be used to prioritise items within the back log (BV/SP).

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Scrum - Important concepts / Tools

Planning poker: gamified variation of Wideband Delphi technique employed during Sprint Planning. It uses cards containing Fibonacci numbers where each participant show all at once to avoid cognitive bias. Video.

Product increment: portion of the product developed and shipped during a certain Sprint.

Sashimi: group of stories that represents a product feature.

Impediment: barrier to efficient work completion by team member.

Definition of Done (DoD): consistent definition of story completion within a team.

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Scrum - Important concepts / Tools

Burn-down chart: graphical representation of the remaining work.

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Scrum - Management tools

Pivotal Tracker: https://vimeo.com/110382358

Jira Agile: https://www.youtube.com/watch?v=KdyV9okLRlc

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Common Scrum pitfalls for game development

A Game Design Document (GDD) isn't needed anymore.

Interrupt people to the daily 15 minute stand up meeting.

Moving all team members into a dedicated team room while assigning in the per-discipline-organized cubicle farm.

A team member says "I'm not doing something right now because I was told there needs to be a task entered into the backlog and the task needs to be assigned to me by the project manager."

http://www.gamasutra.com/view/feature/3724/top_10_pitfalls_using_scrum_.php?print=171

Common Scrum pitfalls for game development

Start managing stories and sprints before all the people are on the team.

Daily stand-up meeting degenerates into a daily go-around-the-table-and-each-person-give-a-status-report.

Make Scrum mandatory.

http://www.gamasutra.com/view/feature/3724/top_10_pitfalls_using_scrum_.php?print=172

Common Scrum pitfalls for game development

Implement only two weeks' worth of work and write only the code based on what you currently know about the game design.

"Sprint Zero" is pre-production time

Prioritizing tasks and asking for time estimates even before any GDD is written.

http://www.gamasutra.com/view/feature/3724/top_10_pitfalls_using_scrum_.php?print=173

Exercise - Sprint PlanningDivide yourself in teams

1 Product Owner (PO), 1 Scrum Master (SM) e Team.

Discuss, clarify and eventually detail backlog items. - 15 min

PO: assign business value (Fibonacci) for each item. - 10 min

Team must estimate product backlog items using planning poker and create Sprint Backlog - 30 min

SM must guarantee perfect execution and remove impediments during the process of Sprint planning.

Present resulting Sprint Backlog after planning - 5 min

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Exercise - Sprint Planning

Business objective: Enhance virality coefficient for our game

Velocity: 200 story points

Fibonacci cards for Story points: 1, 2, 3, 5, 8, 13, 20, 40, 50, 100.

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Exercise - Sprint PlanningProduct Backlog items:

Develop the art for 2 new levels

Create art for share button - 3 SP (use as reference for other estimates)

Update GDD document to reflect new content and level creation

Prototype Facebook connect feature

Implement 2 new levels

Code share function

Critical bug: Adjust power-up on third level

Research Facebook connect API

Run A/B tests to compare different sequence of social sharing steps

Update avatar store with 4 set of clothes

Update analytics tagging on share / invite buttons

Create copy and art for email invitation

Integrate Gmail contacts API

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Sprint Backlog BV SP BV/SP Priority (1-13)

Develop the art for 2 new levelsCreate art for share button 3Update GDD document to reflect new content and level creationPrototype Facebook connect featureImplement 2 new levels Code share functionCritical bug: Adjust power-up on third levelResearch Facebook connect APIRun A/B tests to compare different sequence of social sharing stepsUpdate avatar store with 4 set of clothesUpdate analytics tagging on share / invite buttonsCreate copy and art for email invitationIntegrate Gmail contacts API

How does Scrum and Lean Startup complement each other?

It is fairly common that a company employs both paradigms.

Lean startup is about entrepreneurship process.

Scrum is about managing product development.

They both have in common the objective of providing flexibility and learning to game development.

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Introdução ao Lean Startup, Agile e Business Model

Canvas

farleymillano@gmail.com

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