The lean startup ii

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    16-Apr-2017

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Second part of the book The Lean StartupBy: Christian Javier Gutierrez Martinez

MVP (Minimum Value Product)

The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible.

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After a MVP is established, a startup can work on tuning the engine. The five whys

Why did the machine stop? (There was an overload and the fuse blew.)Why was there an overload? (The bearing was not sufficiently lubricated.)Why it was not lubricated sufficiently? (The lubrication pump was not pumping sufficiently.)Why was it not pumping sufficiently? (The shaft of the pump was worn and rattling.)Why was the shaft worn out? (There was no strainer attached and metal scrap got in.)

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Innovation Accountinghow to define, measure and communicate progress.

This consist by turning the leap of faith assumptions into a quantitative financial model. The true job of entrepreneurs is systematically de-risking their startups over timethrough a series of conversations.

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innovation accounting works in three basic steps

1) It uses a minimal viable product (MVP) to establish real data on where the company stands at anygiven juncture2) Using the MVP, start-ups, through many attempts, move from the baseline to the ideal, when the company then reaches a decision point.3) At this juncture, a company is either making solid progress toward the ideal enough that it makes sense to continue, or persevere. If not, the strategy must be deemed flawed and in need of serious changeor as Ries labels it, a pivot, which starts the process all over again and in a more productive fashion than before.

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The pivot "structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth."

Instead of make complex plans, you can make constant adjustments with a drive called feedback circuit, this is the core of this metoth. Through the process you can learn how to know if its the moment of change or if we can preserve our way 6

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