Hello Practicum class,
My name is David Grijalva and for this week social moment I chosen to write about Dropbox. This company is the perfect example of a venture started by using the lean start up method. Dropbox was founded in 2007; it was officially launched in 2008. Dropbox started with the sole purpose of making an extremely easy to use file storage and sharing tool.
The company started as minimum viable product, which helped its founders start the learning process as quickly as possible. Dropbox founders state that along with their product development efforts they wanted to receive feedback from their customers. In building their MVP, Dropbox founders did not include all possible features that they hoped to add to the product in the future. They only included the central elements that most clearly highlighted the convenience and usability advantages of their system. Then, in order to get the MVP into the hands of potential users they put the idea out there through a working prototype shown on a 4 minute walk through. The developers listened to the comments and developed their "polished" version taken in account all feedback given by potential users. It was as if they’d put the code into the hands of potential users and in doing so, captured their attention.
There is a link to their product demo (MVP)
The video demo turned in a guerilla marketing strategy to reach early adopters. In one day the waiting list for their product increased from 5,000 to 75,000 achieving the critical mass that most startups dream of. In this case, the video was the minimum viable product. The MVP validated Dropbox founder’s leap- of- faith assumption that customers wanted the product they were developing not because they said so in a focus group,but because potential users actually signed up and starting using Dropbox.
Some of the lessons learned by Dropbox founders were the following:
- Biggest risk: making something no one wants
- Not launching = painful, but not learning = fatal
- Put something in users hands and get real feedback as soon as possible
- Know where your target audience hangs out and speak to them in an authentic way
By creating a simple/beta version of Dropbox and sharing it with thousands of people, company founders were able to increase interest in their product, collect invaluable user-feedback and test critical business hypotheses. And then, when the ‘polished’ version was ready for launch, they knew they had a captive audience, who appreciated the value of their offering.
Drew Houston (Dropbox founder) - Lean Startup Conference 2012
https://www.youtube.com/watch?v=hE-C-i74jsY
Questions
1.Do you use Dropbox or any other file storage & sharing tool?
2.Why was their demo video so successful? Would you have used another method to share the MVP with potential users?
3.Apart of the leap of faith discussed above, what other leap of faith and assumptions do you think Dropbox founders took into consideration?
4. In your opinion, what is the most important element of the lean start up method?
Some of the lessons learned by Dropbox founders were the following:
By creating a simple/beta version of Dropbox and sharing it with thousands of people, company founders were able to increase interest in their product, collect invaluable user-feedback and test critical business hypotheses. And then, when the ‘polished’ version was ready for launch, they knew they had a captive audience, who appreciated the value of their offering.
Drew Houston (Dropbox founder) - Lean Startup Conference 2012
https://www.youtube.com/watch?v=hE-C-i74jsY
Questions
1.Do you use Dropbox or any other file storage & sharing tool?
2.Why was their demo video so successful? Would you have used another method to share the MVP with potential users?
3.Apart of the leap of faith discussed above, what other leap of faith and assumptions do you think Dropbox founders took into consideration?
4. In your opinion, what is the most important element of the lean start up method?
Thank you for sharing the story of Dropbox David. The more I learn about the lean startup approach, the more I believe in the system. I am truly impressed by the successful ventures that are created through the lean startup approach. I feel the most efficient way to launch a product/service into the market is through the lean startup approach. I respect that the possible product/service is tested by early adapters and improved upon the feedback of consumers or eliminated upon the results. To answer your question:
ReplyDeleteWhy was their demo video so successful? Would you have used another method to share the MVP with potential users?
I enjoyed the demo video. The video was easy to follow and straight to the point. No fillers or unnecessary jargon explaining the importance of Dropbox. The step by step process of saving files, folders and pictures allowed viewers to see, for themselves, the value proposition. I feel these reasons contributed to the success of the demo video.
I forgot to mention: No I would not have used a different MVP with potential users. Dropbox created a successful MVP. The waiting list numbers speak for the success of the released MVP.
Delete1. Do you use Dropbox or any other file storage & sharing tool?
ReplyDeleteNo, I do not use Dropbox but I have just started using Icloud and GoogleDocs.
2. Why was their demo video so successful? Would you have used another method to share the MVP with potential users?
I think that their video was so successful because it showed the viewer how to actually use Dropbox and showed you how easy and great it really is. I may have made a shorter video to go along with the one provided because some people pay not have the patience to sit through it. Maybe a one-minute video of Dropbox explained would be helpful to advertise or promote and then they could click on the longer video to hear about their service more in depth.
3. Apart of the leap of faith discussed above, what other leap of faith and assumptions do you think Dropbox founders took into consideration?
I am not sure when Apple came out with its Airdrop feature or when Google came out with its file storage system but that could be a huge leap of faith for the company considering the size of its competitors.
I would think that the founders also assumed that the first version would need many improvements but they still remained confident.
4. In your opinion, what is the most important element of the lean start up method?
I would say that the leaps of faith and assumptions are one of the most important elements of the lean startup method. I choose the leaps of faith and assumptions because to assume things is really risky to do. Of course you will not be able to predict everything but it is still risky to give the startup your all knowing that you could fail at any moment.
- Derek D
I had never heard the story of how Dropbox began, so this was interesting! I have used Dropbox on occasion, and I have it installed on my Mac, however I don't use it very often. I tend to use Google Drive most of the time.
ReplyDeleteI think that the demo video was successful because it showed how easy it was to use Dropbox. At the time of Dropbox's launch, there wasn't anything like it, so I think it was smart for them to use a type of instructional video to gain traction. People could see the benefits of using Dropbox, and see exactly how they can utilize all of its features. It was also a good way for Dropbox to gauge interest in their product before spending a lot of money. I think the was a great MVP and I wouldn't have done it differently.
I think another leap of faith that Dropbox had to make was that people would trust them with their files. People are wary of the cloud and backing up all of their information to some intangible, invisible space, I can only imagine that in 2008, people felt the same way about Dropbox.
While there are many important elements in the Lean Startup Method, in my opinion, the most important element is the Build Measure Learn feedback loop. I think this is the most important because it is something that is ongoing throughout the life of your venture. You should constantly be improving, measuring feedback from your consumers, and making important decisions about where your venture should go next.
1) I have used Dropbox and other file sharing software. It is very useful for sending large files such as songs or videos.
ReplyDelete2)I think that their video made them so successful because at the time the video was released there was not many efficient options for sending large files for free. Emails had proven to fail a lot so Dropbox was received well by many in the tech field. I think their video was an effective MVP and i would not have done anything differently.
3)I think the main leap of faith Dropbox had to assume was that they were going to be able to develop customers trust that way people don't worry about the privacy of their files. With so many issues with hacking they will have to prove their ability to battle the issue.
4)I think one of the most vital elements of the Lean Start Up approach is the Minimum Viable Product because it forces entrepreneurs to not over think their product but to get one to the market as soon as possible, test their hypothesis and adjust the product according to the markets reaction.
-Anonymous
1. I have used Dropbox to send larger files, mainly videos. However, I do not use it very often.
ReplyDelete2. Their demo video was so successful because the timing was perfect. Dropbox was a completely new way to store/share files. They also realized how important it was to get a MVP to your customers. This helped them to continuously learn and grow an extremely successful company using the lean start up method.
3. Another one of the founders' main leaps of faith could be that consumers were able to use the service without any security or privacy concerns/issues arising.
4. The BML feedback loop is the most important part of the lean start up method. It encompasses everything. Build an MVP. Measure feedback/results using a variety of accounting metrics. Learn. Repeat. It is essential to successfully growing a company using the lean start up method.
- Jeran Smith