A product entrepreneurs make must meets the

A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.  Lean start ups are the startups that new organizations create as entrepreneurs launch new products. A startup’s founders typically confront significant resource constraints and considerable uncertainty about the viability of their proposed business model. It is often said that the startups can be successful  by following a certain process and which means it can be taught and also it can be learned, that’s what lean startup method is all about as in other words, Lean Start-up is a process of experimentally validating that the product entrepreneurs make must meets the targeted customers need.

Companies should use this lean start-up model as it promotes a approach wish states just do it  where the company can create its product or service without any chaos by just providing tools and resources to test a vision. This model is not just about failing tasks but it’s a process where an entrepreneur uses this to develop its product.

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If it is successful, it allows a manager to get started with his or her campaign: enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time that product is ready to be distributed widely, it will already have established customers. It will have solved real problems and offer detailed specifications for what needs to be built.

Lean Start-up is a process of experimentally validating that the product we are making meets our customers’ needs

The basic problem confronting an organization is to engage in sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future viability… James G. March Stanford Professor Author – Explorations in Organization

The lean PLC ecosystem

The lean product lifecycle

MVP

The basic problem confronting an organization is to engage in sufficient exploitation to ensure its current viability and, at the same time, devote enough energy to exploration to ensure its future viability… James G. March Stanford Professor Author – Explorations in Organization

 

 

Difference between lean and traditional

 

 

Lean

Business model hypothesis driven

Cutomer development get out of the office and test hypothesis

Agile development built the product iteratively and incrementally

Hire for learning and speed

Fix by iterating on ideas and pivoting away ones that don’t work

Operates on good enough data

 

Traditional

Business plan implementation driven

Product managenet step by step plan

Build the product iteratively or fully specify the product before building it

Hire for experience and abilty to execute

Fix by firing executives

Operates on complete data

Why do startups fail

1.      Business plans rarely survive first contact with customers.

2.      No one besides venture capitalists require five year plans they are generally fiction

3.      Startups are not smaller version of large companies.

 

 

 

 

Principles

1.      Entrepreneurs are everywhere

2.      Entrepreneurs is management

 

3.      Validated learning (Progress in manufacturing is measured by the production of high quality goods. The unit of progress for Lean Startups is validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty. Once entrepreneurs embrace validated learning, the development process can shrink substantially. When you focus on figuring the right thing to build-the thing customers want and will pay for-you need not spend months waiting for a product beta launch to change the company’s direction. Instead, entrepreneurs can adapt their plans incrementally, inch by inch, minute by minute.)

 

4.      Innovation accounting

5.      Build measure learn

 

BENEFITS

Before your product development starts, you need to define what problem it addresses. Chances are, you will come up with an idea that tackles a non-existent problem or solves a real problem not completely. Following the first Lean principle, you will save a lot of time and money that you can spend on the development of a worthy idea. 

This principle will help you to understand what leads to the success of your project and what doesn’t, what has to be done and what people you need for this. This way, your attention will not become dissipated; you will be fully concentrated on your major goals and will save your time and money.

This principle will help you to always understand what step you are now taking and to measure the results of your actions accordingly. So, you will not only be able to plan further activities successfully, but to efficiently evaluate the results of the completed ones. For if you do not know, where and when you should get with your product, how will you know you are on the right way? 

If you concentrate only on those features of your project that really matter to your customers, you will add more value to your product faster than you would if you stretched yourself too thin creating excessive functionality from the start.

Following this principle you will maintain creative atmosphere in your team. As a result, they will generate more interesting and useful ideas. You won’t see all of the benefits instantly. It takes a while to reap the rewards of following Lean. Still, eventually you will definitely have worthy results if you utilize the approach. Possible Lean business process improvements can come in the form of changes to development process, modification of communication behavior in the team, implementation of some new technologies, and so on. The Lean Startup approach will definitely help you leverage and rationalize your business processes continuously.

Lean start up PRINCIPLES AND PRACTICES

1.      Rather than engaging in months of planning and research, entrepreneurs that all they have on day one is a series of untested hypothesis. So instead of writing an intricate business plan they convert into a  business maodel canvas.( how a company creates value for itself and its customers.)

2.      This model uses a get out of the building approach called customer development to test their hypothesis. They go out and ask potential users, purchasers, and partners for feedback on all elements of the business model, including product features, pricing, distribution channels and affordable customer acquisition strategies. The emphasis is on nimbleness and speed : new ventures rapidly assemble minimum viable products and immediately elicit customer feedback. Then, start the cycle over again, testing redesigned offerings and making further small adjustments or more substanstive ones to ideas aren’t working.

3.      Third, lean stat ups practice something called agile development, which originated in the software industry. Agile development works hand in hand with customer development. Unlike typical year long product development cycles that presuppose knowledge of customers problems and product needs, agile development eliminates wasted time and resources by developing the product iteratively and incrementally.