Lean strategies can be applied when you have some idea and want to develop the business plans. So, what is the progress of your idea and what extend completed in your business plan? We may have an idea but not started to working on it because we don’t have the right team or still developing the prototype etc., Start-up is an institution run by a human to create a new product in extreme uncertainty. Lean start-ups helps to overcome all the shortcoming while we are converting our dreams and ideas into real business. Lean strategies helps us to understand the market need, how much cash really spend on developing the idea etc., The Products keep on changing and customer demands are changing very fast. Lean Start-up is a method systematically address uncertainty through rapid iteration and market learning so that you can make your products efficient and faster.
What is an Idea?
We have identified the target peoples or customers and what are their needs and pains. Every customer has their need and have their own pain. The customer may not have idea but there is a need for new product which is going to solve their unknown problems. So, you need to have the vision to solve their problem. Lean start-up helps to understand 2 critical questions like,
* Should we need to build this new product or service? &
* How can we increase the odds of success?
It helps your firm to grow and sustain the business in their operations. For ex, the Dropbox started as it screen-cast the services and put it for the customer feedback which helps them to develop the product and the features they like. So, they were able to improve their services. Now, it has been 500 million subscribers or users of their services of successful business. Lean principles are not just used by start-ups, but by the manufacturing companies as well.
Testing Ideas: Build-measure-learn is the lean start-up strategy. First, identify the assumptions, then prioritize the assumptions by critical and not critical part. Then, we focus on the assumptions with biggest risk and to figure to test the assumptions quickly. Finally, figure out hypothesis about test and how they should actually respond and need to provide the benchmark. Once, you prepared the hypothesis, we need to run the experiment about the test and review the results. If we are not satisfied with the results, we need to iterate by changing the assumptions and change our product, then test our assumptions again so that we can make sure that we are developing a product that are required by our customer.
We test the product via Minimum Viable Product that are acceptable product and helps to start learn quickly. The customers are able to use the product and test the hypothesis. Then, you can fix the bug from customer user experiences and feedbacks. This creates the early customer database as well.
Lean Start-up Principles: Entrepreneur is that everybody who is in-charge of developing a product or services under uncertainty or whoever is taking the financial risk in terms of profit. Start-up management must have vision of what they need to solve and strategy to achieve the vision. It includes business model, product road map, your position with partners and competition. Then, how do you deal with them etc., these are all called strategy. Finally, the product/service is the end result of the strategy. There is a relative change of the product based on customer feedback called optimization. So, you are developing the product that requires project management and detail business plan. The applications will change, but the principles remains same.
Experimentation is the first thing that we need to understand well that our assumptions and hypothesis will work in business or affect our business. We need to build the product, test them and measure the results. So, It is divided into 3 main factors,
Experimentation ——–> Testing ——-> Measuring the Results
Pivot Strategy: Once you build the product, test and measure the results, then we may have seen that all our hypothesis are invalidated. What we are going to do now? Pivot is the solution. Now, we are not changing the vision, but we are changing the strategy. There are different kinds of pivot strategies like,
1. Zoom-in Pivot: It means, instead of developing the whole product, you are making the one feature as entire product and forget about the other features.
2. Zoom-Out Pivot: The project that you were building is not sufficient for the customer satisfaction. So, you need to add more features into the project means zooming out for the entire project.
3. Customer Segment Pivot: It is intended to certain customers segments of B2C or B2B etc.
4. Customer Need Pivot: It is serving different needs of the customer as original assumption.
5. Platform Pivot: It is the change of platform from the application.
6. Business-Architecture Pivot: It meets B2B, B2C, and Value Vs volume of the business.
7. Value Capture Pivot: How you are capturing the value to get new customer?
8. Engine Growth Pivot: How is your engine of growth to get the new customers?
9. Channel Pivot: It is to determine that how we sell/deliver products and services to the customer?
10. Technology Pivot: The old technology which was working, but because of the need of market change, you are changing the technology of your business. It is called Technology pivot.
Company Information: Creative Web Graphic Solutions is a website design and web Development Company provides superior UX/UI for your application and branding services for B2B, B2C, enterprises and lean start-ups across the world. Please visit our website of www.creativewebgraphic.com for more information.