L2 - Lean Cycle Evolution

Question 1

Explain how the evolution of Amazon Alexa demonstrates the Lean Cycle Evolution…

Answer 1

1. Hypothesis was that customers would benefit from a virtual personal assistant.
2. Initial prototype was slow and gave incorrect answers.
3. V2 -> Utilised ontologies to improve comprehension.
4. V3 -> Integrated ML to improve comprehension.
5. Resulted in mass sales.

Question 2

How did Amazon build their ‘Cloud of training data’?

Answer 2

Rent apartments and pay contractors to read scripts, which was used as input data.

Question 3

What is the difference between BML and LMB?

Answer 3

Two different ordering of the lean evolution cycle

BML -> Build, measure, learn.
LMB -> Learn, measure, build.

Question 4

What is the Lean Cycle Evolution?

Answer 4

A scientific approach to product development based on 3 phases: Build, measure, learn.

Question 5

Explain the 3 phases on Lean Cycle Evolution…

Answer 5

Build -> If justified by empirical data, build the MVP.

Measure -> Enterprise tests their hypothesis from the learn phase.

Learn -> Enterprise comes up with a hypothesis about a market and establishes what empirical data they need to validate the hypothesis.

Question 6

What are the 5 types of pivoting that an enterprise can take? Define each with an example…

Answer 6

1. Technology pivoting - Occurs when it’s clear the product could be delivered more effectively using different technology. For example, Microsoft was initially a one-time purchase and single machine application. However, this was transition to a subscription, cloud-based product.
2. Zoom-out pivoting - Occurs when a feature of the original product becomes the product itself. For example, Flickr was initially a game. The photo sharing element of the game became so popular, that the company pivoted to make that feature the product itself.
3. Zoom-in pivoting - Occurs when a product becomes a product feature. For example, DotCloud enabled developers to focus on code without dealing with scaling. This became a feature of Docker container management.
4. Customer segment pivot - Occurs when the product solves a problem, but not the one intended. For example, YouTube was a dating platform, but no-one uploaded a dating vide. The platform pivoted to uploading any type of video.
5. Customer need pivot - Occurs when the product solves a problem, but not the most important one. For example, Twitter was initially a podcasting platform, but pivoted to become a SMS-based social network.

Question 7

What are the 4 other types of MVP?

Answer 7

1. Concierge MVP - Work with a customer to refine how the product will work. There is no clear hypothesis.
2. Wizard of Oz MVP - Gets a person to simulate how the product will work. There is no clear hypothesis.
3. Landing Page MVP - A web page where potential customers can find out about the idea.
4. Video MVP - A video that demonstrates the product to customers, and prompts sign ups. There is a clear hypothesis.

Question 8

Why might LMB be better business practice than BLM?

Answer 8

To measure the need for the software based on the learn phase, as opposed to building first before measuring and learning there is no need for the product.