Steve Blank Discusses Origin And Future Of Lean Startup Movement - Page 2
"Large companies are organized around execution…so a business plan in a large corporation makes all the sense in the world. Most startups…(are) dealing with a series multiple unknowns. Yet we took this document, the business plan, because we knew nothing else and said, ‘Go write one of these.’"
"We now know… that startups search for a business model. My definition of a startup is, ‘a temporary organization designed to search for a repeatable and scalable business model.’ If you find one, you become a company. If you don’t find one, you become an ex-company. Customer development, in hindsight… was the first of… an emerging stack of entrepreneurial management tools.”
What’s New In The Startup Owner’s Manual?
Steve’s new book builds upon a number of sources, including: Four Steps, The Lean Startup and Alexander Osterwalder’s Business Model Generation. In specific terms, “the new… book… (leverages) Alexander Osterwalder’s business model generation book as the frontend of entrepreneurs thinking about their business. I now make my students draw Osterwalder’s canvas as the organizing the way to think about your hypothesis.”
The other major evolution of Steve’s thinking is in the area of web and mobile businesses, the latter of which were nascent at the time Four Steps was written. In Steve’s words, “the second part is the most obvious, but I didn’t see it at the time (I wrote Four Steps). There is a different speed and a different customer development process, still four steps, but the tactics are radically different for web and mobile apps. You can get feedback almost instantaneously and the cost of iteration is as close to zero as technology will allow us to get. It’s not just the process is different, it’s just that the speed allows you to do some very different things. The new (book) specifically addresses how to build a web and mobile startup and distinguishes the path from physical products to virtual products.”
Enter Eric Ries
I asked Steve to describe Eric Ries’ contribution to the Lean Startup Movement. “Eric was taking my class in Berkeley because the only way I would fund IMVU, the company he was the co-founder of, was if him and his co-founder actually sat through my class…I wanted them to actually sit through this process. Eric got it faster than anybody I had ever seen. (He) went back to IMVU…and implemented the first full-fledge customer development combined with agile engineering. He took it to a new level. He combined customer development and agile development in a way that no one had before and out of that, he derived a whole series of insights which became The Lean Startup. He took the lean method past the startup world into a much wider audience.”Continued on the next page