Lean startup is a for developing businesses and products that aims to shorten product and rapidly discover if a proposed is viable; this is achieved by adopting a combination of business-driven experimentation, iterative product releases, and.Central to the lean startup methodology is the assumption that when invest their time into iteratively building products or services to meet the needs of early customers, the company can reduce market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures. Contents.Overview Similar to the precepts of and, the lean startup methodology seeks to eliminate wasteful practices and increase value-producing practices during the earliest phases of a company so that the company can have a better chance of success without requiring large amounts of outside funding, elaborate business plans, or a perfect product. Customer feedback during the development of products or services is integral to the lean startup process, and ensures that the company does not invest time designing features or services that consumers do not want. Main article:The Business Model Canvas is a strategic management template invented by around 2008 for developing new business models or documenting existing ones. It is a visual chart with elements describing a firm's, infrastructure, customers, and finances. It assists firms in aligning their activities by illustrating potential trade-offs.The template consists of nine blocks: activities, partners, resources, value proposition, customers, customer channels, customer relationships, costs and revenue.

• Eric Ries Startup Way
• Eric Ries Lean Startup

Startups use the template (and/or other templates described below) to formulate hypotheses and change their business model based on the success or failure of tested hypotheses.Other canvases Lean Canvas The Lean Canvas is a version of the Business Model Canvas adapted by Ash Maurya in 2010 specifically for startups. The Lean Canvas focuses on addressing broad customer problems and solutions and delivering them to customer segments through a unique value proposition. 'Problem' and 'solution' blocks replace the 'key partners' and 'key activities' blocks in the Business Model Canvas, while 'key metrics' and 'unfair advantage' blocks replace the 'key resources' and 'customer relationships' blocks, respectively. Value Proposition Canvas The Value Proposition Canvas is a supplement to the Business Model Canvas ('customer segment' and 'value proposition' blocks) published in 2012 to address the customer–product relationship, the perceived value of the product or service, and potential. The 'value proposition' block is divided into three categories—products and services, gain creators, and pain relievers—that correspond to three categories in the 'customer segment' block—customer jobs, gains, and pains. Mission Model Canvas The Mission Model Canvas is a version of the Business Model Canvas developed by Alexander Osterwalder and Steve Blank for entities such as that have a predetermined budget instead of a goal of raising revenue. It was published in 2016.

Sorry, but I'd suggest to buy it! This way, you motivate the Publisher and the Writer to invest further in creating such good and helpful books! The books cost.

Earlier publications by Osterwalder and colleagues had suggested how to adapt the Business Model Canvas for nonprofit enterprises that depend on raising revenue. 'Mission budget/cost' and 'mission achievement/impact factors' blocks replace the 'cost structure' and 'revenue streams' blocks in the Business Model Canvas, while 'beneficiaries', 'buy-in/support' and 'deployment' blocks replace the 'customer segments', 'customer relationships' and 'channels' blocks, respectively. The movement Ries and others created an annual technology conference called Startup Lessons Learned which has subsequently changed its name to the Lean Startup Conference. Lean startup meetups in cities around the world have garnered 20,000 regular participants. The first lean startup meetup named Lean Startup Circle was created by Rich Collins on June 26, 2009 hosting speaking events, workshops, and roundtable discussions.

As of 2012, there are lean startup meetups in over 100 cities and 17 countries as well as an online discussion forum with over 5500 members. Third-party organizers have led lean startup meetups in, and, among others—many of which are personally attended by Ries—with the and Lean Startup Meetups attracting over 4,000 members each. The Lean Startup Machine created a new spin on the lean startup meetups by having attendees start a new company in three days.

As of 2012, the Lean Startup Machine claimed to have created over 600 new startups this way.Prominent high-tech companies have begun to publicly employ the lean startup methodology, including,. The lean startup principles are also taught in classes at and and are implemented in municipal governments through.Academic researchers in Finland have applied the lean startup methodology to accelerating research innovation. In government The has employed lean startup ideas. The, noted in 2012 that he was taking a 'lean-startup approach to government'.

Ries has worked with the former and current — and respectively—to implement aspects of the lean startup model. In particular, Park noted that in order to understand customer demand, the recognized 'the need to rapidly prototype solutions, engage customers in those solutions as soon as possible, and then quickly and repeatedly iterate those solutions based on working with customers'. In May 2012, Ries and announced the program, which brings together top citizen innovators and government officials to work on high-level projects and deliver measurable results in six months. Hacking for Defense , working with retired colonel Pete Newell and former colonel Joe Felter, adapted lean startup principles for U.S. Government innovation under the moniker 'Hacking for Defense', a program in which university students solve problems that the, the, and the submit to participating universities. Hacking for Defense and variants like Hacking for Diplomacy have expanded to the, and nonprofits.

Lean concepts Lean startup principles have been applied to specific competencies within typical startups and larger organizations. Lean. Lean. Lean hardware.

Lean events. Lean. Lean. Lean. LeanHistory The lean startup methodology was first proposed in 2008 by, using his personal experiences adapting lean management and customer development principles to.

The methodology has since been expanded to apply to any individual, team, or company looking to develop new products, services, or systems without unlimited resources. The lean startup's reputation is due in part to the success of Ries' book, published in September 2011.Ries' said that his first company, Catalyst Recruiting, failed because he and his colleagues did not understand the wants of their target customers, and because they focused too much time and energy on the initial product launch. Next, Ries was a senior software engineer with There, Inc., which Ries described as a classic example of a Silicon Valley startup with five years of stealth, $40 million in financing, and nearly 200 employees at the time of product launch. In 2003, There, Inc. Launched its product, but they were unable to garner popularity beyond the initial. Ries claimed that despite the many proximate causes for failure, the most important mistake was that the company's 'vision was almost too concrete', making it impossible to see that their product did not accurately represent consumer demand.Although the lost money differed by orders of magnitude, Ries concluded that the failures of There, Inc. And Catalyst Recruiting shared similar origins: 'it was working forward from the technology instead of working backward from the business results you're trying to achieve.'

After Ries later co-founded Inc., IMVU investor insisted that IMVU executives audit Blank's class on entrepreneurship at. Ries applied Blank's customer development methodology and integrated it with ideas from and elsewhere to form the lean startup methodology. Criticism , the co-founder of venture capital firm, wrote an article in 2010 criticizing the lean startup method for over-emphasizing 'running lean' (constantly cutting and reducing non-essential parts of the company to save time and money). He specifically disagreed with portraying 'running lean' as an end rather than a means to winning the market without running out of cash.

Horowitz gave as an example his startup, which by 'running fat' was able to outperform 20 direct competitors and after 8 years reach a value of $1.6 billion. However, at least since 2008, numerous advocates of lean methods have pointed out that 'running lean' does not mean.Trey Griffith, the VP of technology at Teleborder, stated in 2012 that the majority of backing for the lean startup methodology was anecdotal and had not been rigorously validated when first presented. However, he goes on to note that better support of the method comes out of a 2011 analysis of the factors of success in growth companies as described in the 2011 book Great by Choice.John Finneran, a business writer and former user of the lean startup method, described in 2013 a number of the method's assumptions that he did not recognize during his use of the method. In particular, he observed that his clients were often not motivated to invest time and effort into helping iterate a minimal viable product; instead they wanted a more polished product to begin with. Second, he found virtually no early adopters who were willing to try to give feedback on unpolished software simply to be the first to get a chance at it. Third, he argued that lean startup can distract from essential traditional management practices like development discipline and budget protection.

In general, he stated that it is important to be critical and skeptical of lean startup methods rather than pre-supposing that they will be effective. Ries had already anticipated this criticism in his book: 'We cannot afford to have our success breed a new pseudoscience around pivots, MVPs, and the like. This was the fate of scientific management, and in the end, I believe, that set back its cause by decades.' : 279 This implies that the concept of applies to the lean startup methods themselves, and not just to products. There is a large literature on and management developed in and in other fields which shows many people can learn from errors under certain circumstances; an error-management culture allows and encourages people to learn from errors. See also.References. ^ Penenberg, Adam L.

(8 September 2011). Retrieved 4 June 2015. ^ Adler, Carlye (30 August 2011). Retrieved 4 June 2015. ^ (October 2011). 33 (8): 56–63. Retrieved 4 June 2015.

^ Tam, Pui-Wing (20 May 2010). Retrieved 4 June 2015. (11 September 2011). Retrieved 4 June 2015.

^ Schonfeld, Erick (30 July 2011). Retrieved 4 June 2015. ^ Loizos, Connie (26 May 2011). Retrieved 4 June 2015.

Eric Ries Startup Way

Womack, James P.; Jones, Daniel T.; Roos, Daniel (1990). The machine that changed the world: based on the Massachusetts Institute of Technology 5-million dollar 5-year study on the future of the automobile. New York: Rawson Associates. ^ Dinero, Donald A. Training within industry: the foundation of lean. New York: Productivity Press.

Pp. Womack, James P.; Jones, Daniel T.

(2003) 1996. Lean thinking: banish waste and create wealth in your corporation (Revised ed.). P. 232.

Feld, William M. Lean manufacturing: tools, techniques, and how to use them. Boca Raton, FL; Alexandria, VA: St.

Lucie Press;. P. ^ Blank, Steven G. (PDF) (3rd ed.). Pescadero, CA: S. Blank. ^ (May 2013).

91 (5): 63–72. Lean start-up practices aren't just for young tech ventures. Large companies, such as GE and Intuit, have begun to implement them.

Over the years managerial experts such as Clayton Christensen, Rita McGrath, Vijay Govindarajan, Henry Chesbrough, Ian MacMillan, Alexander Osterwalder, and Eric von Hippel have advanced the thinking on how large companies can improve their innovation processes. During the past three years, however, we have seen large companies, including General Electric, Qualcomm, and Intuit, begin to implement the lean start-up methodology. ^ (2014) 2011. P. (3 August 2009). Retrieved 4 June 2015.

Tokareva, Julia (27 February 2018). Retrieved 16 October 2018. ^ (30 March 2009). Retrieved 4 June 2015. Fitz, Timothy (10 February 2009). Retrieved 4 June 2015.

(19 May 2009). Retrieved 4 June 2015.; Dorf, Bob (2012). The startup owner's manual: the step-by-step guide for building a great company. Pescadero, CA: K&S Ranch, Inc.

(17 May 2014). Retrieved 4 June 2015. Talk given in May 2013; the audience is composed of the CEOs of the portfolio companies of. (1 June 2012). Retrieved 4 June 2015. Kaplan, Soren (11 December 2017).

Retrieved 30 September 2018. ^ Maurya, Ash (2012) 2010. The lean series (2nd ed.). Sebastopol, CA:. P. Kromer, Tristan (23 February 2012).

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Retrieved 17 October 2018. ^;; Clark, Tim (2010). Hoboken, NJ:. Maurya, Ash (11 August 2010). Archived from on 15 August 2010. Retrieved 17 October 2018. ^ Maurya, Ash (27 February 2012).

Retrieved 4 June 2015. (29 August 2012). Archived from on 7 June 2013. Retrieved 16 October 2018.

^;; Bernarda, Gregory; Smith, Alan (2014). Value proposition design: how to create products and services customers want. Strategyzer series.

Hoboken, NJ:. ^ The Mission Model Canvas was introduced in a joint blog post published on the blog of Osterwalder's consulting firm Strategyzer and on Blank's blog: (23 February 2016). Retrieved 16 October 2018. And: (25 February 2016). Retrieved 17 October 2018.

(27 August 2009). Archived from on 4 April 2014. Retrieved 17 October 2018. Clark, Tim;; (2012). Business model you: a one-page method for reinventing your career.

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Eric Ries Lean Startup

Still, Kaisa (May 2017). Technology Innovation Management Review. 7 (5): 32–43.:. Retrieved 16 October 2018. Schreiber, Danny (5 April 2012). Silicon Prairie News. Retrieved 4 June 2015.

(30 May 2012). Retrieved 4 June 2015.

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(25 July 2017). Retrieved 16 October 2018.

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Retrieved 16 October 2018. ^ In September 2008, Ries coined the term lean startup on his blog, Startup Lessons Learned: (8 September 2008). Retrieved 4 June 2015. Wilson, Nick (7 December 2011). Retrieved 4 June 2015.

2 October 2011. Retrieved 2 June 2015.

^. 21 November 2011. Retrieved 4 June 2015. Horowitz, Ben (17 March 2010). Retrieved 4 June 2015. Trent, Robert J.

End-to-end lean management: a guide to complete supply chain improvement. Lauderdale, FL: J.

Lean purists are quick to point out, however, that lean is not about the short-term pursuit of cost savings that characterizes many organizations. Cost reductions achieved by eliminating important tests during product development or using lower grade materials, for example, may not be supportive of a lean philosophy. Bohan, Rick (8 November 2010). Retrieved 4 June 2015.

My point is that lean methods and concepts have come to be seen primarily as cost-cutting tools. But this is wrong. An emphasis on cost reduction risks the success of the lean initiative.

Waddell, Bill (11 July 2011). Retrieved 4 June 2015. The problem is that lean is not a cost reduction strategy. Properly applied, lean principles will not reduce spending much at all.

Lean is aimed at enhancing the top line – sales – not the total spending line. Graban, Mark (2012) 2009.

Lean hospitals: improving quality, patient safety, and employee engagement (2nd ed.). New York: Productivity Press/. Lean thinkers see cost as the end result of all our systems and processes.

As an end result, cost is not something that can be directly impacted. Or at least we do not have an impact on it in the traditional 'cost-cutting' ways, which typically have meant layoffs and possibly the scaling back of services provided to our community. Lean hospitals focus on reducing waste, not cutting costs. Lean organizations also focus on the customers (the patients) and the value that is being delivered to them. In this way, Lean is not focused on doing less but rather on delivering the right amount of value. If we are reducing waste, we can often provide more value while expending less effort and less cost.

Sarkar, Debashis (2012). Lessons in lean management: 53 ideas to transform services. Chennai: Westland. Organizations often view Lean as purely a cost-cutting tool.

This is a parochial view from individuals or organizations that do not entirely comprehend what Lean thinking is and what it can do to a business. Lean is not a cost-cutting tool but a method that drives cost-efficiency. Grady, Kenneth (25 February 2015). Retrieved 4 June 2015. If we go back to the central premise of this post – lean is not about cost cutting – then I need to address what lean 'is' about. Lean is a philosophy through which we look at value from the client's perspective and focus what we do on delivering that value while respecting people. Markovitz, Daniel (30 March 2015).

Retrieved 4 June 2015. There's plenty of research proving that cost reduction isn't sustained in the long run.

Just like weight always comes back after drastic dieting, costs always creep back two to three years after drastic cuts, because the underlying processes and capabilities haven't been improved. Paterson, James C.

Lean auditing: driving added value and efficiency in internal audit (1st ed.). Chichester, UK; Hoboken, NJ:. Lean ways of working should not simply be equated with cost cutting.

Griffith, Trey (17 January 2012). Retrieved 4 June 2015. Finneran, John (1 April 2013). Retrieved 4 June 2015.

Maurya, Ash (2012) 2010. Running lean: iterate from plan A to a plan that works. The lean series (2nd ed.). Sebastopol, CA:. One of the things that particularly drew me to the Lean Startup methodology is that it is a metaprocess from which more specific processes and practices can be formulated.

The same principles used to test your product can and should be applied to test your tactics when taking these principles to practice. There is no room for faith in a Lean Startup. There are no silver bullets. No methodology can guarantee success.

But a good methodology can provide a feedback loop for continuous improvement and learning. Seddon, John; Caulkin, Simon (April 2007). 'Systems thinking, lean production and action learning'. Action Learning: Research and Practice.

4 (1): 9–24. Frese, Michael; Keith, Nina (January 2015). 'Action errors, error management, and learning in organizations'.

66: 661–687.