Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

Lean Start-up – Lean Product Development for Start-Ups

Posted on Jan 23, Posted by Apurva Category Uncategorized

Most Technology Start-ups take the following conventional approach in their endeavour to starta successful business :

- prepare an elaborate business plan

- pitch it to investors

- build a team

- develop and introduce a product

- sell the product

Research shows that 3 out of 4 start-ups end up failing in their endeavour somewhere along this

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

path. In most cases, further the stage of the failure from the point of inception, higher is the costof failure. 

The alternative Lean approach for Product Development by Start-ups is essentially basedon the following philosophy :

- build a 'minimum viable product' based on continuous 'customer development'

In the Lean Start-up model the founders do not begin with a business plan, instead they beginwith the search for a business model. In this approach, multiple quick iterations ofexperimentation and feedback are conducted which result in a business model that isexecutable.

This will typically follow the following sequence :

- Translate idea into business model hypothesis.

- interact with one or more customers to test the hypothesis and validate the assumptions about

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

the customer needs.

- create a 'minimum viable product' to fulfill a customer need

- let your customers try out the product and get feedback

- based on the customer feedback develop the next iteration of the 'minimum viable product'

Business Model Hypothesis :

Founders are expected to briefly describe the hypothesis in a framework calledBusiness Model Canvas. This involves listing out how the company will createvalue for itself and for its customers in the Business Model Canvas (shownbelow) provided by Business ModelGeneration . Thisis a template in which you need to answer a set of questions under 9 key areasresulting in thebusiness model hypothesis.

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

Business Model Canvas

(SOURCE: WWW.BUSINESSMODELGENERATION.COM/CANVAS)

Customer Development :

Lean Start-up approach requires the founders to test their hypothesis with the potentialcustomers. The founders reach out to the potential users, purchasers, and partners forfeedback on all aspects of the business model including product features, pricing, affordablecustomer acquisition strategies and distribution channels. The feedback can result in thebusiness model hypothesis being improved upon or an coming up with a new business modelhypothesis by dumping the existing idea.

Agile Product development :

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

Lean start-ups practice something called Agile Development for product development. Agiledevelopment works hand-in-hand with customer development.

This approach does not involve the typical long product development cycles which run forseveral months and is based on assumptions of knowledge of customers’ problems and productneeds. Agile product development aims to develop the 'minimum viable product' which includethe minimum features for solving the specific customer problem. This minimum viable product isthen tested with the potential users and customers to confirm that the objectives are achieved.This approach eliminates wasted time and resources by developing the product iteratively andincrementally and testing the 'minimum viable product' at the end of each iteration.

Agile Development

In conclusion, the Lean Start-up approach has the emphasis on nimbleness and speed andaims at reducing the cost of failure by the inbuilt mechanism of feedback and course correction

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

at each stage.

New ventures can follow this approach to rapidly assemble minimum viable products and elicitcustomer feedback. This customers input is continuously used to revise their assumptions andthen go through another development cycle, testing redesigned offerings and making furthersmall adjustments (iterations) or more substantive ones (pivots) in case of ideas that are notworking.

We at Evon Technologies have gained extensive experience in the above approach over thepast eight years by working with many Start-ups. We can be a partner and service provider forStart-ups in their execution of the Lean Start-Up Model, by providing services in the followingareas :

- Market Research

- Optimizing your Business Model

- Developing Market Requirements into Product Road-map

- Software Product Development and Quality Assurance

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Lean Start-up – Lean Product Development for Start-UpsEvontech Blog

- Internet Marketing.

Learn More about Lean Startup Methodology : http://theleanstartup.com/#principles

Tags: Tagged in: Agile Development Agile Product Development CustomerDevelopment Lean Startup Start-ups

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