Lean Analytics by Alistair Croll, Author, Lean Analytics

TheCloudFactory 1,818 views 47 slides Apr 16, 2014
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Slide Content

Small batches Why cycle time trumps scale, why everything is changing, and why now.

Why does Lean matter to clouds?

Don’t sell what you can make. Make what you can sell. Kevin C ostner is a lousy entrepreneur.

Why now?

Why now?

Why now?

Small batches.

3D printing

Cloud computing & shared services. http://www.flickr.com/photos/fdctsevilla/4052593758/

Social media.

Digital channels Photo by Gary Lerude on Flickr. Used under a creative commons icense . https:// www.flickr.com /photos/ garylerude /7511464618

Crowdfunding

Small batches matter.

Eating the world http://www.flickr.com/photos/ebolasmallpox/3733059220/

Software has no choice but to record its actions. http://www.flickr.com/photos/jenny-pics/3239638494/sizes/l/

A closed loop of continuous improvement http://www.flickr.com/photos/spacepleb/1779158639/

“ ... a closed signaling loop ... where action generates some change that triggers a system change, originally referred to as a ‘circular causal ’ relationship. ”

A business that learns. http://www.flickr.com/photos/aussiegall/286709039/

Unfortunately, we’re terrible at learning.

Everyone’s idea is the best, right? People love this part! Things fall apart. No data, no learning.

Bad at data, too.

I have two kids. At least one is a girl.

What are the chances the other is a boy?

BB GB BG GG

G B B G G G 2 of 3 (66%) are boys.

Bartender: “Is your child a boy or a girl?” Logician: “Yes.”

The five stages EMPATHY I’ve found a real, poorly-met need that a reachable market faces. STICKINESS I’ve figured out how to solve the problem in a way they will keep using and pay for. VIRALITY I’ve found ways to get them to tell their friends, either intrinsically or through incentives. REVENUE The users and features fuel growth organically and artificially. SCALE I’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.

Better: bit.ly / BigLeanTable

The biggest lesson: pick One Metric That Matters

Really? Just one?

Yes, one.

Focus is a precious commodity.

Having one metric addresses this problem.

www.theeastsiderla.com /2011/02/silver-lake-sidewalk-pile-up/

The other lesson.

If it doesn’t change how you behave, it’s a bad metric.

EVERY 4H EVERY 55m

Nobody needs this more than big companies.

Companies that use data-driven analytics instead of intuition have 5%-6% higher productivity and profits than competitors. 2011 MIT study of 179 large publicly traded firms Brynjolfsson , Erik, Lorin Hitt , and Heekyung Kim. "Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?." Available at SSRN 1819486 (2011).

Everything we are talking about this week is about the shift from scale to cycle time.

As a result of technology that makes the first unit as good as the millionth.

Removing barriers to entry and many of our fundamental business assumptions.

THE DATA-DRIVEN ORGANIZATION ORGANISM Dev -Ops Lean Startup Agile Big Data Cloud Computing

Cycle time trumps scale.

@ acroll [email protected] l eananalyticsbook.com Also: Please go take bit.ly / cloudopssurvey
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