Lean startup learning cycle

Layered on top of these various product development practices, we often hear about the concept of "Lean Startup," which was pioneered by Mary Poppendiecks, Tom Poppendiecks, Eric Reis, Ash Maurya, Marty Cagan, Jeff Patton and many others. Speaking broadly, while Agile methods focus on the "how, when, who and where" of rapidly iterating through features and eliminating waste, Lean methodologies focus much more on product validation; the "what" and "why" of these new features we're building and whether they will be successful.

Eric Ries is an entrepreneur and the author of The Lean Startup, which has sold over one million copies and has been translated into over thirty languages. He has founded a number of startups including IMVU, where he served as CTO, and he has advised on business and product strategy for startups, venture capital firms, and large companies, including General Electric, where he partnered to create the FastWorks program. Eric has served as an Entrepreneur-in-Residence at Harvard Business School, IDEO, and Pivotal and he is the founder and CEO of the Long-Term Stock Exchange.

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.

In traditional sales terminology, the mechanism by which a company delivers its product to customers is called the sales channel or distribution channel. For example, consumer packaged goods are sold in a grocery store, cars are sold in dealerships, and much enterprise software is sold (with extensive customisation) by consulting and professional services firms. Often, the requirements of the channel determine the price, features, and competitive landscape of a product. A channel pivot is a recognition that the same basic solution could be delivered through a different channel with greater effectiveness. Whenever a company abandons a previously complex sales process to “sell direct” to its end users, a channel pivot is in progress.

Lean startup learning cycle

lean startup learning cycle

In traditional sales terminology, the mechanism by which a company delivers its product to customers is called the sales channel or distribution channel. For example, consumer packaged goods are sold in a grocery store, cars are sold in dealerships, and much enterprise software is sold (with extensive customisation) by consulting and professional services firms. Often, the requirements of the channel determine the price, features, and competitive landscape of a product. A channel pivot is a recognition that the same basic solution could be delivered through a different channel with greater effectiveness. Whenever a company abandons a previously complex sales process to “sell direct” to its end users, a channel pivot is in progress.

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