{"id":7852,"date":"2020-03-21T11:29:54","date_gmt":"2020-03-21T15:29:54","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=7852"},"modified":"2022-03-30T15:59:31","modified_gmt":"2022-03-30T19:59:31","slug":"validated-learning-lean-startup","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/validated-learning-lean-startup\/","title":{"rendered":"Validated Learning: What Is It? (Lean Startup)"},"content":{"rendered":"\n

The Lean Startup uses the term “Validated Learning.” What does this mean? How does it differ from normal learning, and what does the “validated” mean?<\/p>\n\n\n\n

Learn from Eric Ries how to conduct validated learning in your startup.<\/p>\n\n\n\n\n\n\n\n

What Is Validated Learning?<\/h2>\n\n\n\n

Remember from earlier in The Lean Startup summary that a startup<\/a> is trying to build a new product or service in conditions of extreme uncertainty. There are a lot of things you know that you don\u2019t know, and a lot of things you don\u2019t know that you don\u2019t know.<\/p>\n\n\n\n

Therefore, a startup\u2019s most important function is learning<\/strong> \u2013 in particular, learning what the customers really want and what will lead to a sustainable business.<\/p>\n\n\n\n

But you need to approach learning with discipline<\/strong>, what Eric Ries calls \u201cvalidated learning\u201d in The Lean Startup.<\/p>\n\n\n\n

Bad, unvalidated learning is executing a plan without much prior thought, seeing it work or fail, and giving a post-hoc rationalization. (Well of course X didn\u2019t work, that means we should do Y!)<\/p>\n\n\n\n

Validated learning is having testable hypotheses about the world<\/strong>, designing experiments to test those hypotheses, and analyzing the data to evaluate your hypotheses. You have real, quantitative data to show what you have learned.<\/p>\n\n\n\n

Validated Learning Anecdote: IMVU<\/h3>\n\n\n\n

(This is a particularly long anecdote, but stay with me \u2013 we\u2019ll loop back onto IMVU<\/a> throughout the book, and what follows here is one of the most critical lessons).<\/p>\n\n\n\n

In 2004, Eric Ries and his co-founders at IMVU wanted to build a social network around instant messaging (IM), which seemed attractive for its network effects<\/a> \u2013 the more people who join, the more valuable the network is, which makes even more people join.<\/p>\n\n\n\n

Because of network effects, the top IM products owned the vast majority of the industry. It was commonly accepted, almost obvious, that it\u2019d be extremely difficult to make a new IM network succeed.<\/strong> If you\u2019re already on a network with all your friends, you don\u2019t want to switch to a new network without all your friends joining too. Think about how hard it\u2019d be to build a rival to Facebook today \u2013 how would you get Facebook users to join your network when all their friends are on Facebook?<\/p>\n\n\n\n

To avoid this problem, IMVU decided not to start their own new IM network. Instead, they built a new 3D video game layer on top<\/strong> of IM networks. Users would first join IMVU, a 3D virtual world where they could create avatars and buy virtual goods. Then they would connect their IM accounts and message people on their existing IM networks to join IMVU too. Critically, this meant users wouldn\u2019t have to switch to a whole new IM network \u2013 it already works with the IM networks they belong to. Ingenious!<\/p>\n\n\n\n

The IMVU team labored for 6 months on their prototype product. They worried constantly about details of their strategy \u2013 \u201chow many IM networks should we support?” (over a dozen) “How buggy can the prototype be? Will it make us look bad?\u201d <\/p>\n\n\n\n

They didn’t conduct validated learning. They didn’t focus on what people actually wanted – they built what they thought<\/em> users wanted.<\/p>\n\n\n\n

Finally, with their pride on the line, IMVU launched the product.<\/p>\n\n\n\n

And no one joined. <\/strong><\/p>\n\n\n\n

They thought it was a quality problem at first, so they worked on fixing bugs and adding features. This didn\u2019t budge the needle.<\/p>\n\n\n\n

The Validated Learning Begins<\/h3>\n\n\n\n

Finally, they decided to bring in potential users for interviews<\/strong>. This is where their epiphany around validated learning happened. IMVU built the whole game around getting new users to bring in their friends from other IM networks. But users didn\u2019t actually want to invite their friends over before they had a chance to really test it out \u2013 if the game was uncool, they\u2019d look bad.<\/p>\n\n\n\n

Even more importantly, IMVU found through validated learning that users actually didn\u2019t mind<\/em> joining a new IM network<\/strong>. Just like people today have different lives on different social networks (Facebook, Twitter, LinkedIn, Instagram, Pinterest, etc.), IMVU found that their target customer wanted a separate IM network dedicated to this new virtual world. They wanted to make new friends, not bring their existing friends over.<\/p>\n\n\n\n

When Eric and his team realized this, they threw away almost a year of hard work. But when they built a product that their customers actually wanted, they started getting real traction. This is the power of validated learning.<\/p>\n\n\n\n

Imagine if they’d interviewed users at the start. They could have saved themselves a lot of pain and time. This Lean Startup summary is going to teach you how to avoid mistakes<\/a> like this.<\/p>\n\n\n\n

This story represents the critical lesson of Lean Startup and the point of
validated learning \u2013 if you don\u2019t understand<\/a> what your customer actually wants, you\u2019ll waste a lot of time building something no one will buy<\/strong>. This will be painful, and the more time you spend on this, the harder it\u2019ll be to throw it all away.<\/p>\n\n\n\n

Put more proactively \u2013 how could IMVU have learned what customers wanted earlier<\/strong>, without 6 months of hard engineering? Did they really need to support a dozen IM clients at launch? Probably not \u2013 even connecting just one <\/strong>IM network could have led to the same conclusion, and it would have taken a lot less work.<\/p>\n\n\n\n

But what if they had tried something even more extreme<\/strong> \u2013 what if they pretended<\/em> to have a working product on their website with a download button, and they measured what users actually wanted by download clicks?<\/p>\n\n\n\n

Eric\u2019s experience running IMVU was the inspiration for Lean Startup. The rest of this Lean Startup summary teaches a method for you to avoid what IMVU did…<\/p>\n","protected":false},"excerpt":{"rendered":"

The Lean Startup uses the term “Validated Learning.” What does this mean? How does it differ from normal learning, and what does the “validated” mean? Learn from Eric Ries how to conduct validated learning in your startup.<\/p>\n","protected":false},"author":2,"featured_media":7881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14],"tags":[78],"class_list":["post-7852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","tag-lean-startup","","tg-column-two"],"yoast_head":"\nValidated Learning: What Is It? (Lean Startup) - Shortform Books<\/title>\n<meta name=\"description\" content=\"What is validated learning? How do you do it to improve your startup? 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