Lean Startup - Module 6 Flashcards
The Lean Startup takes its name from the lean manufacturing revolution that ___________ and _______________ are credited with developing at ____________
- Taiichi Ohno and Shigeo Shingo
- Toyota
_____________ is radically altering the way supply chains and production systems are run.
Lean thinking
It proposing that entrepreneurs
judge their progress differently from the way other kinds of ventures do. Progress in manufacturing is measured by the production of high-quality physical goods.
Lean Startup
It asks people to start measuring their productivity differently
Lean Startup
The goal of this is to figure out the right thing to build—the thing customers want and will pay
for—as quickly as possible
Startup
A new way of looking at the
development of innovative new products that emphasizes fast iteration and customer insight, a huge vision, and great ambition, all at the same time.
Lean Startup
Enumeration: How the Lean Startup Works
- Identify the beliefs about what must be true in order for the startup to succeed.
- Create an experiment to test those assumptions as quickly and inexpensively as possible.
- Think like a scientist. Treat each experiment as an opportunity to learn what’s working and
what’s not. - Take the learning from each experiment and start the loop over again.
- On a regular schedule (cadence), make a decision about whether to make a change in strategy (pivot) or stay the course (persevere).
. Identify the beliefs about what must be true in order for the startup to succeed
leap-of-faith assumptions
Create an experiment to test those assumptions as quickly and inexpensively as possible
minimum viable product
Treat each experiment as an opportunity to learn what’s working and what’s not
validated learning
Take the learning from each experiment and start the loop over again.
build-measure-learn feedback loop.
The goal of this is to find the fastest possible path to realizing this vision
Lean Startup
make a change in strategy means?
pivot
stay the course means?
persevere
regular schedule means?
cadence
TorF: The specifics of how to arrive at the answers will, of course, look the same for each project
False
Enumeration: The Tools and Processes of Lean Startup
- Leap-of-Faith Assumptions (LOFA)
- Minimum Viable Product (MVP)
- Validated Learning
- Build-Measure-Learn
- Pivot or Persevere
they embody the company’s current guess at how its strategy will lead to the realization of its vision
Leap-of-Faith Assumptions (LOFA)
the best we can do is form
a set of hypotheses—in the scientific sense—about what we’d like to see happen they are called?
Leap-of-Faith Assumptions (LOFA)
TorF: The reason to run experiments is to discover customers’ revealed
preferences through their behavior.
True
TorF: Design experiments that allow you to observe it.
True
TorF: Every vision for a business is based on assumptions about what is impossible to build, what customers want, what kind of customers want it, what distribution channels are available
False
TorF: Every part of a business plan contains assumptions.
True
Once we’ve gathered predictions and assumptions and articulated value and growth hypotheses, the
next step is to build an experiment called?
Minimum Viable Product (MVP)
It is an early version of a new product that allows a team to collect the maximum amount of
validated learning about
customers.
Minimum Viable Product (MVP)
learning based on real data gathering rather than guesses about the future
validated learning
TorF: It will minimize the number of LOFAs tested while also minimizing cost, time, and effort.
False
It is the time elapsed between receiving an order from the
customer and delivering a high-quality product at a good price.
fundamental cycle time
For a startup “innobation factory”, it defines as how much time elapses between having an idea and validating whether that idea is brilliant or crazy
fundamental cycle time
TorF: Teams that drive down the validation cycle time are much more likely to find product/market fit, because it decreases the probability of success.
False
It quickly turns an idea into something real—even if imperfect—in order to
begin the process of iterating and retesting
minimum viable product
TorF: the goal of MVP is to ultimately create the most successful process or product possible with the least waste.
True
Inventor of Lean Startup Approach
Eric Ries
“the unit of progress for lean startups” means?
validated learning
TorF: for a lean startup, success is not so much measured by
the number of units you manufacture but by the measurable responses from your target users.
True
TorF: that the basic ideas
underpinning your product or service should be tested with users, and tested early on in the process, and with the minimum possible effort.
True
It is quantifiable, based on data such as revenue, user engagement, and feedback
Validated Learning
TorF: The result is learning that is assumption-based and actionable, leading to genuine product improvements in each iteration.
False
He created the customer
development method that launched the lean start up movement.
Steve Blank
It is one of the central principles of Lean Startup – a highly effective approach to startup development pioneered by Eric Ries.
Build-Measure-Learn
It is framework for establishing – and continuously improving – the effectiveness of new products, services and ideas quickly and cost-effectively
Build-Measure-Learn
TorF: job of a startup is to find a successful revenue model that can be developed with
further investment
True
TorF: The model involves a cycle of creating and testing hypotheses by building something big for potential customers to try, measuring their reactions, and learning from the results
False
TorF: The aim is to
continuously improve your offering so that you eventually deliver precisely what your customers want.
True
It improves on the “just do it” approach with an incremental, iterative methodology that replaces assumption with knowledge and certainty
Build-Measure-Learn
TorF: The goal of all this experimentation is to learn enough to have a pivot-or-persevere meeting to evaluate
whether the current strategy is working.
True
If each experiment seems more productive than the last—
there’s a lot of learning and data that supports at least some leap-of-faith assumptions—the next step is to _____________
persevere
If not, and the same negative feedback (or indifference) is coming from customers over and over even though the product is “better,” or if the data convincingly invalidates a key assumption, it’s time to _________________
Pivot
a change in strategy without a change in vision
pivot
Improve the product by “tuning the engine”
optimization
TorF: To achieve their goals and reach that vision, they need to define a strategy
True
TorF: Each pivot creates a new series of
hypotheses, and the process ends.
False
are semi-fictional representations of your ideal customers based on data and research
Buyer personas
TorF: They help you focus your time on qualified prospects, guide product development to suit the needs of your target customers, and align all work across your organization
True
TorF: The result is you’ll be able to attract low-value visitors, leads, and customers to your business who you’ll be more likely to retain over time.
False
TorF: Having a deep understanding of your buyer persona(s) is critical to driving content creation, product development, sales follow up, and really anything that relates to customer acquisition
and retention.
True
He shared a Customer Persona Template
Carlo Valencia
This used by a team and can write about their assumptions
about their customers.
Customer Persona Template
It starts with creating assumptions about your customers
Customer validation
TorF: These assumptions will
be used to create a customer validation plan where the team goes out and talks to customers and validates whether the assumptions are true or not.
True
about understanding the problems and needs of your customers, gaining more
insights about them and confirming whether the idea is attractive to the target customer
Customer Validation
where an experiment design is created based on the
hypothesis, then a success criterion is identified, and the experiment is executed
validation process
a simple tool for testing out your latest startup and product ideas
simplified validation board
TorF: This is to help entrepreneurs all over the world get out of the building and talk to customers.
True
Enumeration: Simplified Validation Board
- Customer Segment
- Problem
- Solution
- Experiment
- Success Matrix
- Result
- Action
Enumeration: Validation Process
- Hypothesis
- Design an experiment
- Identify success criteria
- Test
- pursue or pivot
Enumeration: three validation methods
1.Interview/Observe
2.Pre-sell/Pitch
3. Concierge
is used when you have little information about your customers
Interview and Observation
TorF: The goal is to validate
your assumptions about your customers and find pain points.
True
Enumeration: Good questions
- Can you tell about the last time you…?
- How are you currently solving [the problem]?
- How / where did you find about the solution?
- If you could wave a magic wand and have anything you wanted, what would it look like?
Enumeration: Avoid asking the following questions:
● Do you like [something everyone likes]?
● Do you have a problem with [too broad or too obvious problem]?
● Do you want more time and money?
● Do you wish you could have a [something awesome]?
● Anything that has to do with your solution.
the person asking the questions or having casual conversation with the customer
Interviewer
Documenter
Documenter
the person taking a video or photos of the interview
Observer
involves pitching your idea to the customers even before the product has been built
Pre-sell or Pitch
TorF: The team can create a Facebook Page and a Landing Page of their proposed solution and monitor whether their customers will engage with the pages
True
d suggests that the team build a product with minimal technology as possible and deliver
that product to the customers
Concierge
TorF: Concierge allows the team to test whether customers will use the product
or not.
True
