INTRODUCTION TO 
         THE LEAN STARTUP APPROACH
                                                 Developed by DISIE
     Introduction
     “Start up success can be engineered by following the right process, 
     which means it can be learned, which means it can be taught.”  (Eric Ries, 2011)
      DEFINITION// The Lean Startup methodology is a scientific approach aimed at creating a 
      sustainable business model by validating business-hypotheses through experimentation, 
      thereby shortening the product development cycle and the risk of business failure. 
         “Lean Startup provides a scientific approach to creating and managing startups and 
      get a desired product  to customers' hands faster.” (Eric Ries, 2011)
     ·  The approach eliminates wasteful practices during the initial phase of a new 
        venture, which enables a higher chance of long-term success. The goal is to avoid 
        building products which are not needed.
     • The Lean Startup methodology was developed by serial entrepreneur Eric Ries based on 
       his experience in his own startup (IMVU). It draws heavily on Steve Blank’s Customer 
       Development, who was Eric’s teacher, mentor and investor to IMVU.
                                                  Developed by DISIE
      The Lean Startup approach builds on
     Design               Product                 Agile                      Managemen            Customer              Lean 
     Thinking             Development             Development                t                    Development  Manufacturing 
     Learn more here:     refers to the stages    stems from software                             (see next slide)      is geared to deliver 
     https://en.wikipe    involved in the         development and            refers to the                              quality and focuses on 
     dia.org/wiki/Desi    creation of a           favours adaptive           functional                                 customer satisfaction, 
     gn_thinking          product from            planning, frequent         management of                              while cutting costs by 
                          identification of a     delivery, self-            an organisation.                           reducing all non-value 
                          market need, over       organisation and                                                      adding steps. It builds on 
                          conception and          continuous                                                            the Toyota Production 
                          design, to release.     improvement,                                                          System (TPS)
                                                  encouraging flexible                                                  pioneered by Taiichi Ohno 
                                                  responses to change                                                   & Shigeo Shingo which 
                                                  (View:                                                                involves principles such 
                                                  Agile Manifesto for Soft                                              as “Just-in-time” delivery 
                                                  ware Development                                                      and the differentiation 
                                                   and                                                                  between value and 
                                                  12 Principles Behind the                                              waste. 
                                                  Agile Manifesto
                                                  ).
                                                                                                                          Developed by DISIE
      Steve Blank lays out the importance of gaining customer insights to validate the business hypotheses of a new venture and 
      find a business model that works. He describes fours steps, of which each is iterative. The goal is to find a product-market fit 
      of a new product or service referring to proven viability, desirability and feasibility during the search phase and prior to 
      execution. Blank notes that “facts exist outside the building, opinions reside within” so it is important to “Get out of the 
      Building”!
       Translate ideas into business          Continue to test all hypotheses       With a proven business model           The final step involves scaling 
       model hypotheses (Business             fast, agile and opportunistic to      and product in hand it is time to      the business by reaching 
       model canvas)                          validate Business model               launch and ramp up marketing           mainstream customers and 
                                              (Product-Market fit).                 and sales to establish a customer      establishing functional 
                                                                                    base.                                  department.
      Customer Discovery (SEARCH) = Hypothesis → Test “Problem Hypothesis” → Test “Product Hypothesis” → Verify
      Customer Validation (SEARCH) = Get ready to sell → sell to “Earlyvangelists” → Develop positioning → Verify
      Customer Creation (EXECUTION) = Get Ready → Position → Launch → Create Demand
      Company Building (EXECUTION) = Mainstream customers → management/culture → Functional departments → Fast Response Det’s
                Entrepreneurs are everywhere
              The Five Principles of the Lean Startup
                Entrepreneurship is management 
                Validated learning 
                Build-Measure-Learn
                Innovation Accounting
                                                      Developed by DISIE