Steve Blank

NOVEMBER 4, 2021

Lean Methodology consists of three tools designed for entrepreneurs building new ventures: The Business Model Canvas – to write down all the hypotheses about a new business; Customer Development – a process for testing those hypotheses outside the building; Agile Engineering – to rapidly build minimal viable products to test product/market fit.

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ConversionXL

FEBRUARY 3, 2022

Growth marketing borrows a concept from the lean startup methodology. Growth hacking is a term that emerged from the Silicon Valley tech community and the lean startup methodology. Reverse engineer what already works and run experiments over the long-term. Search engine marketing: Driving ROI from searchers.

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Framework Marketing Acquisition Retention 102

Steve Blank

APRIL 20, 2009

By the late 1930′s when HP started, a small group (measured in hundreds) of engineers who made radio tubes were building the valleys’ ecosystem for electronics manufacturing, product engineering and technology management. And these microwave engineers were working at startups – not large companies.

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VC Cafe

MAY 23, 2023

More and more, established companies are leaning into generative AI by either adding generative AI features to their existing suite of tools or partnering with AI companies (mostly OpenAI or the open source HuggingFace) to launch entirely new products. There’s an interesting thing happening in the generative AI world.

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Startup Lessons Learned

OCTOBER 5, 2009

Or, if it really was prevented, what was the opportunity cost of choosing to prevent it ahead of time? And in most situations, there is significant cost involved in negotiating over the right estimates to plug in. How much will it cost to solve this problem now? To a lot of smart engineers, that sounds crazy.

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San Francisco Architecture Lean Continuous Deployment 133

Steve Blank

NOVEMBER 30, 2009

As the engineers were busy rearchitecting the original Stanford MIPS chip into a commercial product, one of my jobs was to find out what features customers wanted. On the other hand, the Motorola 68000 microprocessor (used in the Sun and Apollo engineering workstations) and the IBM 360/370 mainframes were big-endian. What a great idea.

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Steve Blank

NOVEMBER 12, 2009

The presentation didn’t have a single word about Lean Startups or Customer Development. The primary goal of customer development is to reduce the cost of mistakes. This is basic enough that I don’t think anyone can argue with it – reduce the cost of mistakes.

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Steve Blank

AUGUST 31, 2009

Yet startup companies have traditionally used this model to manage and pace not only engineering but also non-engineering activities. The flaw in this thinking is that “first customer ship&# is simply the date when engineering thinks they “finished” the 1.0 Product Development Diagram 1. release of the product.

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Customer Development Developer Customer Silicon Valley 244

Steve Blank

MAY 15, 2009

Signs of Success One of the things you do right in a startup, is you move from one cheap and cramped building to another as you grow, with desks, cubicles and engineers piled cheek to jowl. Engineers were packed in cubicles or desks right on top of each other? Now every engineer can have their own office. Stay hungry, stay lean.

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Steve Blank

JUNE 8, 2009

In the last three posts, we drew the relationship of market risk and invention risk with vertical markets and pointed out verticals where customer development would be useful. In contrast to simply executing your business plan, the Customer Development process is built on low-cost and continuous learning and iterating.

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Vertical Silicon Valley RSS Marketing 125

Steve Blank

JUNE 3, 2009

Simulation to Reduce Invention Risk If you’re in a vertical where “invention risk” is dominant, then you want to do everything you can to manage and reduce those risks. When I wrote the Four Steps to the Epiphany , the Customer Development text, I hadn’t yet thought about what vertical markets it might be appropriate for.)

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Vertical Silicon Valley Marketing RSS 137

Steve Blank

APRIL 10, 2009

One of the things he mentioned was that when it came to decision-making he still tended to think and act like an engineer. Since every situation is unique, there is no perfect solution to any engineering, customer or competitor problem, and you shouldn’t agonize over trying to find one. The same is true in your company.

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Steve Blank

OCTOBER 8, 2009

Marketing is Heard From Engineering was discussing how sophisticated the graphics portion of our computer should be, debating cost and time-to-market tradeoffs of arcane details such as double-buffering, 24 versus 32-bits of color, alpha channels, etc. The conversation that day would become one of my professional watermarks.

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Seeing Both Sides

AUGUST 16, 2012

As we have seen with the recent speed bumps at highfliers like Groupon and Zynga, taking “lean startups” from foundation to creating sustainable, scalable, profitable business models is a very rare and special task. In founding TripAdvisor, Kaufer wanted to take his hard core engineering skills and apply them to vertical search in travel.

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Part-Time VPE Software Review Costa Rica Technical Review 54

Steve Blank

JUNE 25, 2009

Computer hardware companies were faced with their customers asking for low-cost (relatively) desktop computers they had no experience in building. Their engineering teams didn’t have the expertise using off-the-shelf microprocessors (back then “real” computer companies designed their own instruction sets and operating systems.)

Technology 143

Technology Silicon Valley Fractional VPE Part-Time VPE 143

Steve Blank

OCTOBER 12, 2009

At first only the national laboratories and the largest companies could afford to buy supercomputers, (the Cray-1 cost ~$9 million) but over time scientists and researchers were also starting to use them. The magazines got passed around to all the engineers until they were dog-eared and worn.

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Lightspeed Venture Partners

JANUARY 6, 2011

Ed Baker of Friend.ly , a fun way to meet new people, is focused on driving innovation: Encourage more product suggestions from our engineering team. Our engineers often come up with great ideas, and they are the most productive when they work on these ideas. Improve the product. Internalize culture and values.

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Stealth Startup Lean Cofounder 60

Steve Blank

JULY 30, 2009

Unfortunately most startups learn this by going through the “Fire the first Sales VP&# drill: You start your company with a list of potential customers reading like a “who’s who&# of whatever vertical market you’re in (or the Fortune 1000 list.) Your board nods sagely at your target customer list.

Silicon Valley 143

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Steve Blank

MAY 11, 2009

A month or two before the QuickTime public announcement in May, the SuperMac hardware engineers (who had a great relationship with the QuickTime team at Apple) started a “ skunk works ” project. In less than a month they designed a low-cost video-capture board that plugged into the Mac and allowed you to connect a video camera and VCR.

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Startup Lessons Learned

JANUARY 4, 2009

For example, Friendster was famously vertically partitioned at one time in its growth curve. This has two major drawbacks: the central directory can become a single point of failure, and there is a performance cost for having to consult the directory ever time you want to access data anywhere in the cluster. Key-based partitioning.

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San Francisco Architecture Startup Database 151

Startup Lessons Learned

AUGUST 24, 2009

As the costs of production fall, it’s getting easier and easier to send in a proposal or even a complete work. Just like in the world of startups, we can start to use micro-scale pilot programs, executed in lean fashion, to gather real facts for making ROI decisions about new project investment. 12comments: Dougvs said.

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Steve Blank

APRIL 27, 2009

—————- The next piece of the Secret History of Silicon Valley puzzle came together when Tom Byers , Tina Selig and Mark Leslie invited me to teach entrepreneurship in the Stanford Technology Ventures Program ( STVP ) in Stanford’s School of Engineering. My office is in the Terman Engineering Building.

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Silicon Valley Technical Review Europe Germany 203

Steve Blank

JULY 2, 2009

Video Games At SuperMac , Peter Barrett was the witty and creative 24-year old Australian engineer who had designed several of our most successful products, culminating with the software for the Video Spigot. I remember thinking, “What a disappointment one of the smartest engineers I know and he is going to waste his time making games.”

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steveblank.com

JULY 8, 2011

AgileZen – project management visually see and interact with your work Kanbanery – Simple online team or personal kanban board LeanKit Kanban – Great for visualizing work of product development Kanban Pad – “Nice and lean” and free online Kanban tool Banana Scrum – A tool simple as Scrum itself.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Steve Blank

APRIL 6, 2009

The Army offered Fred Terman, the Dean of Engineering at Stanford, a $5M contract to build an electronics countermeasures lab. HP had an ethical culture, entrepreneurial spirit, and deep Stanford engineering department connections. The “customers’” contracts funded the company. Seven years later in 1971 ESL went public.

Silicon Valley 194

Silicon Valley Stealth RSS California 194

Steve Blank

APRIL 9, 2009

To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires. And our Director of Technical Marketing was superb at understanding customer needs and communicating them to engineering.

Silicon Valley 269

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Steve Blank

APRIL 15, 2011

The Stanford Lean LaunchPad class was an experiment in a new model of teaching startup entrepreneurship. Veritas , the team building a low cost, residential wind turbine. But the big project for the week was testing and analyzing Customer Acquisition Costs. They were engineers, certainly they could do better than that?

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Customer Cloud EC2 Channel 261

Steve Blank

AUGUST 17, 2009

The university found government contracts profitable as the government reimbursed their overhead charges (their indirect costs.) Some students who were getting their engineering graduate degrees wrote masters and PhD thesis that were classified. This means they could fund other non-military academic programs from this overhead.

Silicon Valley 155

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Up and Running

JULY 26, 2016

Lean marketing. Your customer acquisition cost and lifetime value are the two magical numbers you need to calculate for each one of your campaigns. Cost of Acquisition (CAC): The total cost of acquiring a user through a given channel. Most campaigns can be optimized to increase conversion rates and lower costs.

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Revenue Acquisition Channel Campaign 60

Steve Blank

MARCH 19, 2009

If you believed the opinions in the marketing department, the customers were in science, engineering, color desktop publishing, and a variety of applications with no single industry or application dominating the list. Waiting for images to move around the screen were not only driving them crazy, but costing them money.

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Hearpreneur

JUNE 26, 2016

We realized that the cost of manufacturing of trailers needed to come down and as a result we’ve decided to vertically integrate the manufacturing and building of STERLINGS trailers in Mexico. The average college consultant costs anywhere from $5,000 to $40,000 a pop. We are able to do that because: 1. Photo Credit: Neha Gupta.

Entrepreneur 91

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Steve Blank

AUGUST 24, 2009

The quintessential California couple, they stood out in our crowd as the engineer (in his late 20′s, respected by his peers and the customer) had hair down to his shoulders, sharply contrasting with the military crewcuts of the customers and most of the other contractors.

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Silicon Valley PR Technical Review RSS 210

David Teten

DECEMBER 3, 2019

Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking. Capital has built a free online tool for founders to calculate their cost of capital. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Steve Blank

AUGUST 27, 2009

This series of posts is a brief explanation of how we’ve evolved from Product Development to Customer Development to the Lean Startup. Combined with product costs, an engineering budget, and schedules, this results in a spreadsheet that faintly resembles the first financial plan in the company’s business plan.

Silicon Valley 269

Silicon Valley Product Startup Product Development 269

mobile.smashingmagazine.com

JANUARY 16, 2013

When computers first gained graphical user interfaces, software engineers helped people make the transition from physical offices to digital files with the metaphor of a desktop. A mobile-optimized structure, however, leans towards a “taller” arrangement in addition to hierarchies. Tossing Out Pages And Content Blocks.

Mobile 101

Mobile HTML Flash Software Review 101

Steve Blank

OCTOBER 26, 2009

Communication between scientists, engineers and corporations were relatively open, and ideas flowed freely. At Stanford, Dean of Engineering Fred Terman wanted companies outside of the university to take Stanford’s prototype microwave tubes and electronic intelligence systems and build production volumes for the military.

Silicon Valley 178

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Steve Blank

APRIL 16, 2009

Now we were faced with the fact that even though we were gaining market share daily, there was nothing coming out of Engineering. Instead of eight boards, Engineering was going to be able to deliver one new graphics board. Now we could give customers lower price boards without Engineering spending 12 months to design new ones.)

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Silicon Valley Product RSS Engineer 145