Archive for the ‘Lean Start Up’ Category
Budgets continue to shrink, so IT departments have to do everything they can to save money. Many are looking at the all-too-obvious cuts and neglecting a helpful chunk of less obvious ways to pinch those pennies. I want to offer some, which I think can go a long way toward saving your department precious budget dollars (and quite possibly, your job). You can protect your budget and help safeguard your job by implementing these cost-cutting measures.
1. Drop Microsoft Office for Google Apps or LibreOffice
I know most businesses hold onto Microsoft Office as if their work-lives depended upon it. The truth is it doesn’t. Google Apps and LibreOffice have both evolved into business-class productivity suites that can easily replace the de facto standard, Microsoft Office. This move will especially help small businesses that don’t benefit from bulk-purchase prices from Microsoft. And since most users tap into only about 10 to 15 percent of the features and power of their office suite, why not save nearly one hundred percent of the cost of the proprietary solution? Besides, a tool like Google Apps makes collaboration between teams even easier.
2. Migrate your terminal server to a Linux box
The Microsoft Terminal Server is a powerful tool — and it comes with a powerful price tag. The more users you need, the more costly that option will be. Replace that box with a Linux machine and you can have the same kind of power at a small fraction of the cost. And adding more users won’t wind up costing you the entire budget. So long as your hardware can handle it, you can add as many users as you like — at no cost.
3. In-house your CRM/ERP/HRM solutions
If you go to SourceForge and search for CRM, ERP, or HRM, you’ll be astounded at the hits you get. Not only are these solutions plentiful, they are powerful. With the likes of Drupal, Joomla!, OrangeHRM, and countless other tools, you will have your business-to-customer-to-vendor-relationship in perfect harmony. And since these are mostly Web-based tools, you’ll be able to work that magic from anywhere that can reach the server housing the tool.
4. Migrate to networked or cloud-based storage
The benefits of this might not be immediately apparent. But migrating your users’ storage from their machines to a centralized location can help save your budget by reducing strain on the client machine (less writing to drives and more over the network). This will also help save costs because you can more easily back up all end-user data from a single location.
5. Move some desktops to Linux
This one will have the most people shaking their heads, but hear me out. There are always certain desktops in a company that have a limited usage. And because much of business has migrated to Web-based tools, a Linux box makes perfect sense. With those machines, you won’t have to worry about virus infections, corrupt registry entries, or users installing malware-infested applications. Some machines will need Windows (such as those that use proprietary software or software with no Linux port, like QuickBooks). And there will be users who refuse change. For those instances, simply stick with what works best. But for the machines and/or users that can make use of Linux, make the switch and you’ll save.
6. Keep good backups of everything
It’s inevitable: Hardware is going to break. That means every machine in your company, at some point, is going to give up the ghost. When that happens, so much time can be lost recovering data — be it user-level or company-level data. One of the most critical tasks you can have as an IT pro is making sure backups run and run consistently. With a solid backup plan, you will save quite a lot of money in the end, even if only in time.
7. Implement strict antivirus and anti-malware policies
A big issue with end user machines is the “accidental installation” of malware or the infection of viruses. One of the best ways to help yourself out is to use an antivirus solution (such as Symantec Endpoint Protection) that can be managed from a centralized location. Regardless of what you use, it is crucial to make sure that all antivirus and anti-malware software is up to date (both the application and the definitions). It might also behoove you to make sure that end users aren’t installing extra “features” for their browsers — such as coupon finders.
8. Encourage creative thinking (solutions for unique problems)
This is more for your IT staff. Encourage the use of creative thinking to solve issues with client computers and servers. Most every computer issue has multiple paths that can arrive at a solution. Sometimes the creative solution is the one that can help save money in the end. Not all administrators can think along these routes, so don’t press them if they aren’t capable. But encourage those who can think creatively and on their toes.
9. Document, document, document
You want to save time? Document your hardware, your network topology, and your software. Document your users, your users’ PCs, your backups — anything you can possibly think of that will help you save time and make transitions from one software/hardware/administrator to another as smooth as possible. This documentation will also go a long way toward helping you see how everything on your network is used and what can be used more efficiently.
10. Implement a help desk solution
Many smaller businesses don’t employ a help desk solution because they assume you can keep track of all the issues on your own. That is a big mistake. The ability to track progress on issues and to review previous issues (and how they were fixed) can really save you time and money. And enabling end users to submit tickets will help ensure that issues are better managed and resolved more quickly. Plenty of open source solutions are available for this. (My favorite is OS Ticket.)
Have you found some other strategies that have helped you reduce spending? Please, share your suggestions bellow.
Real entrepreneurs: a big vision and mother-in-child “blind” belief in their product . Viable or doomed?
Posted March 26, 2012on:
The real entrepreneur is usually viewed as “someone with a big vision, and a stubborn determination to charge straight ahead through any obstacle and make it happen”. Is that so in reality? The vision part looks fine, but stubbornness is of a specific kind. Mature and successful entrepreneurs know that due to the extreme uncertainty of a new product/service usually many corrections are required in the course of the project. The challenge “when to change your direction and when to persevere” is reiterated. Actually the start up runway is not money but how many pivots the start up can still make. Pivoting in the right direction as early as possible is what makes the product and project lean. Pivots come in many different flavors, each designed to test the viability of a different hypothesis about the product, customer, technology, business model and engine of growth. Here are the summary of top-10 pivots to take (by Eric Ries (c)):
- Zoom-in pivot: what previously was considered a single feature in a product becomes the whole product.
- Zoom-out pivot: sometimes a single feature is insufficient to support a customer set, and what was considered the whole product becomes a single feature of a much larger product.
- Customer segment pivot: the product attracts real customers, but not the ones originally supposed to. So repositioning and optimizing for a more appreciative segment are needed.
- Customer need pivot: the customer feedback indicates that the problem solved is not very important, or money isn’t available to buy. This requires repositioning, or a completely new product, to find a problem worth solving.
- Application-to-platform or vice versa pivot: many founders envision their solution as a platform for future products, but don’t have a single killer application yet. Most customers buy solutions, not platforms.
- Business architecture pivot: two major business architectures are: high margin, low volume (complex systems model), or low margin, high volume (volume operations model). Both can’t be operated at the same time.
- Value capture pivot: changes to the way a startup captures value (i.e. monetization or revenue model) can have far-reaching consequences for business, product, and marketing strategies. The “free” model doesn’t capture much value.
- Engine of growth pivot: the most popular primary growth engines are: the viral, sticky, and paid growth models. The right model picked can dramatically affect the speed and profitability of growth.
- Distribution channel pivot: these pivots usually require unique pricing, feature, and competitive positioning adjustments.
- Technology pivot: a way to achieve the same solution by using a completely different technology. This is most relevant if the new technology can provide superior price and/or performance to improve competitive posture.
Also, an interesting observation: “Ask most entrepreneurs who have decided to pivot and they will tell you that they wish they had made the decision sooner.” So the valuable guideline of thinking and acting for all the start-ups is to design a product with the smallest set of features to please a customer base, move it into the marketplace quickly, test and measure the reaction, detect the pivot spot and iterate on this basis.
What’s your interesting experience in making pivots? You are welcome to share your stories here.
Helen Boyarchuk – Business Development Manager (LI page)
Helen.Boyarchuk@altabel.com | Skype ID: helen_boyarchuk
Altabel Group – Professional Software Development
Almost the first word coming to one’s mind in relation to “start up” notion is risk. The sad reality is that very few products are successful, despite of all the perseverance, hard work and creativity of their producers. At the same time, some start-ups’ stories sound like modern-time rags-to-riches stories. What’s the formula for success then?
Many say: “They have been in the right place at the right time”. In this way it sounds like a pure good luck or a ready-made excuse for those who haven’t succeeded. Mature entrepreneurs reject this line of thinking. They say: “ Success can be engineered by following the right process, which means it can be learned, which means it can be taught.” Here “process” doesn’t mean a blueprint to follow but thinking in the right way.
Wrong thinking produces wrong acting. Based on entrepreneurs experience stories let’s try to define these wrong beliefs and fears having place while releasing the first product version:
Belief # 1. Brilliant business plan. The first questions to answer before starting building the product are: what should we build and for whom? Usually a thorough business plan is created answering these questions but not limited. After weeks /months of implementation and ardent arguments about bugs and features the first version goes live and… Nothing happens – the fears were unfounded because nobody even tried it.
Lesson to be learned: The idea is only then brilliant when customers say it’s so: not a well-known domain guru or results of whiteboard exercises performed by the marketing dept. Resort to talking to customers as early as possible.
Belief # 2. Low quality sucks. Entrepreneurs care about reputation so much. This originates the fear of releasing a low quality product which would tarnish the reputation as an engineer: “People would think I didn’t know how to build a quality product.”
Lesson to be learned: Mistakes are almost inevitable, they are in the very nature of start ups as in a start-up who the customer is and what the customer might find valuable are often unknown. So the tip is: fail often but fail quietly. Build a minimum viable product and test it empirically on a small fraction of potential customers. Even if your first product sucks, at least not too many people will know about it.
Belief # 3. Hurry to become big. Entrepreneurs tend to think big – it seems if the product is complex and has heaps of features it will definitely win customers’ hearts. As the result, thousands of lines of the code, endless arguments about which bugs to fix and which to tolerate, which features to cut and which to cram in, for the first product version which may mean just waste for customers.
Lesson to be learned: Don’t be in a rush to get big, be in a rush to have a great product. When you launch development try to firstly figure out how “minimal viable product” for your customers should function and look like; what you need to build in order to test your product idea assumptions.
The thing is that the first version is the best time to make mistakes. Each version serves as a basis to learning and then making a vital pivot in order to adopt some part of the vision to reality. The whole process looks like “build-measure-learn” loop (Eric Ries (c)). Going throughout this cycle reputedly implies another threat:
Belief # 4. Preconception towards some “build-measure-learn” element. It means thinking of this or that element of the cycle to be more important. For engineers it’s learning to build things as efficiently as possible. Plenty of entrepreneurs obsess over data and metrics. The guts speak…
Lesson to be learned: None of these activities by itself is of paramount importance. The aim should be to minimize the total time through this loop as the core sense of Lean Startup method is to recognize asap that it’s time to pivot.
That’s pretty much it. Think big, start small, pivot fast, scale actively :)
Helen Boyarchuk – Business Development Manager (LI page)
Helen.Boyarchuk@altabel.com | Skype ID: helen_boyarchuk
Altabel Group – Professional Software Development
The value of a lean start-up approach is that you are not heavily investing upfront in unnecessary/unneeded expenses. Your budget/funds should be allocated toward developing a prototype/product to test against a small/large group and see whether or not your target audience love it or hate it. This will give you a more accurate idea of its potential value, cost to improve the product/market, and maybe a couple of example customers.
The Lean Startup has evolved into a movement that is having a significant impact on how companies are built, funded and scaled. As with any new idea, with popularity comes misinterpretation:
Tale 1: Lean means cheap. Lean startups try to spend as little money as possible
The reality is the Lean Startup method is not about cost, it is about speed. Lean startups waste less money, because they use a disciplined approach to testing new products and ideas. Lean, when used in the context of lean startup, refers to a process of building companies and products based on lean manufacturing principles, but applied to innovation. That process involves rapid hypothesis testing, learning about customers, and a disciplined approach to product development.
Tale 2: The Lean Startup methodology is only for Web 2.0, Internet and consumer software companies
Actually, the Lean Startup methodology applies to all companies that face uncertainty about what customers will want. This is true regardless of industry or even scale of company: many established companies depend on their ability to create disruptive innovation. Those general managers are entrepreneurs, too. And they can benefit from increased speed and discipline.
Tale 3: Lean Startups are bootstrapped startups
There’s nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. What differentiates them is their disciplined approach to determining when to spend money: after the fundamental elements of the business model have been empirically validated. Because lean startups focus on validating their riskiest assumptions first, they sometimes charge money for their product from day one – but not always.
Tale 4: Lean Startups are very small companies
This focus on size also obscures another truth: that many entrepreneurs live inside of much larger organizations. The proper definition of a startup is: a human institution creating a new product or service under conditions of extreme uncertainty. In other words, any organization striving to create disruptive innovation is a startup, whether they know it or not. Established companies have as much to gain from lean startup techniques as the mythical “two guys in a garage”.
Tale 5: Lean Startups replace vision with data or customer feedback
Lean startups are driven by a compelling vision, and they are rigorous about testing each element of this vision against reality. They use customer development, split-testing, and in-depth analytics as vehicles for learning about how to make their vision successful. Along the way, they pivot away from the elements of the vision that are delusional and double down on the elements that show promise.
The old model of entrepreneurship was dominated by an over-emphasis on the magical powers of startup founders. Usually, the stories we hear about successful startups describe a brilliant visionary, fighting valiantly against the odds to create a new reality. As employees gradually fall under his or her spell, they execute his or her master plan, which leads, in the end, to world domination.
Anyone who has spent time around real startup successes knows this story is usually wildly untrue. Founders benefit from historical revisionism and survivor’s bias: we rarely hear the stories of the thousands of visionaries who failed utterly.
The Lean Startup moves our industry past this mythological entrepreneurship story and towards a methodology that is more scientifically grounded and accessible.
People who are truly committed to a vision of changing the world in a significant way can’t afford the luxury of staying in that cozy, comfortable place of building in stealth mode without outside feedback. If you really believe your vision needs to become a reality, you owe it to yourself to test that vision with every tool available.