05_Lean Startup

Generate validated learnings in the market

Step 1 - The Leap of Faith (Sprung ins kalte Wasser) :

• Hypothesis of Value

• Hypothesis of Growth

Step 2 - Build the MVP:

• Goal: Test Hypotheses

• Target: Early Adopters

• Focus: Time to market

  The minimum viable product should test the basic assumptions of your idea in the market

Step 3 - Measure:

• Define reliable metrics

• have to be able to test hypotheses

  Only proper measures lead to desired learnings

Step 4 - Generate Data:

• Split Tests

• Cohort Analyses

  Are we improving our product?

Step 5 - Learn:

• Validated learnings show if tested hypothesis can be accepted

Step 6 - Decision:

• Pivot or preserve?

  Stay on the current track or perform a pivot?

• Test fundamental leap of faith

• Not only product design and answering technical questions

• target groups are early adopters. No more

• helps to begin learning process as fast as possible

• generates feedback for basic hypothesis

• not certainly the simplest version -> BUT BML is being ended fastst with the MVP

• Additional features/ makeovers (beyond the Early Adopter´s needs) -> Waste

• Quality of the MVP can be recognized as bad by customers

  -> Change: Laern, with attributes customers are mostly concerned about!

• legal fears: patent risks < learning potential

• competition and idea theft: The team must be better than others!

• Loss of Marketing/ Brand Value: Start MVP under a different label

Experiment and achieve validated learning whether your product is accepted by the market.

The process of creating an empirical proof, that you have found value-creating facts for the contemporary and future business model of thecompany.

Innovation accounting

Zoom-in Pivot

• A partial feature of the old product becomes the new product

Zoom-out Pivot

• The old product becomes a part of a much larger new product

• The product solves a problem but does not attend to the desired customer segment

  ⇒ Focus on the new segment

• The problem one is solving is not important for the customer, but a related problem being important forthe customer has been discovered ⇒ Focus on the new customer need Platform Pivo

• Change from an application to a platform or vice versa

• Delivering the same product through another distribution channel

• Achieve the same solution using a completely different technology