Lean Analytics

The Founder's Mindset

• Founders need to be aware that Entrepreneurs are prone to self-deception and use data to stay grounded.
• It's crucial to understand that Instincts are for inspiration, data is for validation.

Analytics Strategy

• The primary goal of analytics in a new venture is to discover a viable business model, which is The purpose of analytics in a startup.
• Adopting a Data-informed decision making approach is key to leveraging data effectively without falling into the trap of optimizing for Local maxima vs global maxima.
• A key aspect of this is to focus on The One Metric That Matters (OMTM) to drive progress. This is different from just tracking Key Performance Indicators (KPIs).
• It's important to be matching your metrics to your business model and startup stage.
• You need to establish Lines in the sand to know if you're on the right track.
• Segmentation in analytics is a powerful tool for gaining a deeper understanding of your users.
• If you don't have a baseline, you need to know What to do when you don't have a baseline.

Business Growth

• A simple framework for thinking about growth is to focus on The five knobs of business growth.

Business Models

• The E-commerce business model is a common online business model with a focus on the Conversion Funnel.
• The SaaS business model is another common model, with a focus on subscriptions and stickiness.
• The Free mobile app business model is a popular model for mobile applications, with a focus on in-app purchases and advertising.
• The Media site business model is based on monetizing content through advertising.
• The User-Generated Content (UGC) business model is focused on building an engaged community that creates content.
• The Two-sided marketplace business model connects buyers and sellers and faces the "chicken and egg" problem. The marketplace owner plays a key role in providing value to both sides.

Startup Stages

• Startups go through five distinct stages: Empathy (startup stage), Stickiness (startup stage), Virality (startup stage), Revenue (startup stage), and Scale (startup stage).
• The spread of a viral product can be modeled by the Bass diffusion curve.

Applying Lean Analytics

• The principles of Lean Analytics can be applied to enterprise markets.
• Intrapreneurship is about applying startup principles within a larger organization.

Core Philosophy

• The Lean Analytics philosophy is about using data to build a better business through continuous learning and experimentation.