Sunday, May 17, 2015

A642.8.4.RB_SchreterPaul

            The lean start up versus the big angry giant has always been a debate over the years. It would seem as if however that the trend has been moving towards the more, agile plans as opposed to the big and bulky. Back to the beginnings of man, technology would only develop and double in potential every hundred or so years. Today, it seems as if its been growing exponentially. Steve Blank introduces three key principles that new teams and new businesses needed to take note of: the first principle is to build hypothesis, the second principle is to test the hypothesis, and the third principle is to build iteratively. (Blank, 2013) I will tie these three principles and parallel them with Ries’ build-measure-learn (RBML) wheel as introduced by McKeown. (McKeown, 2014)
            The first principle is to build a hypothesis. This is where you need to figure out what it is you need to learn and figure out how it is you create value for the customer. In RBML, this is the learning stage, which leads up to the measure stage. (McKeown, 2014) Just like any business plan, you have to start somewhere. This is where the hypothesis comes in.
            The second principle is to test the hypothesis. This is where you “go out and ask potential users, purchases, and partners for feedback on all elements of the business model, including product features, pricing, distribution channels, and affordable customer acquisition strategies.” (Blank, 2013) This closely ties in with RBML’s measure portion of the wheel. (McKeown, 2014) The idea is to figure out by asking the customers directly if you will be building something viable towards their needs. If there is a disconnect then go back to the first principle and develop a new hypothesis. Otherwise, start building it!
            The third principle is to build iteratively. It is said “agile development eliminates wasted time and resources by developing the product iteratively and incrementally. It’s the process by which startups create the minimum viable products they test.” (Blank, 2013) This is where the build section of the RBML wheel comes in, where you build that minimum viable product and then gets the feedback necessary to build upon that product. This way time isn’t wasted on building what the customer doesn’t want. Then when this is complete, start the entire process over again!
            The three main principles covered by Blank are: first to build a hypothesis, second to test the hypothesis, and third to build iteratively. This is closely tied with Ries’ build-measure-learn wheel and in fact rather compliments one another. By being agile, companies and teams will better be able to adapt and maneuver the market without the major risks of creating a master five-year plan. My listening and working with the customer, you better ensure the success of your idea and your product.

References

Blank, S. (2013). Why the Lean Start-Up Changes Everything. Harvard Business REview , 63-72.
McKeown, M. (2014). The Innovation Book. London: Pearson.



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