Are you confused and don’t know what is lean startup methodology?
Founded in 2008 by Eric Rues has helped many high-tech companies to work on their full potential. This methodology has been applied by many small and big firms.
This term has not only limited to companies but is applied to every individuals, team and any startup who is looking to new products and services in limited resources.
Starting a business is not a big task in today’s digital world. You just need basic knowledge, work area, some little experience and required funding.
But In today’s modern era, a business doesn’t work like this, it’s not about exchanging money for the service or product that you provide. It’s about working of business up to its full potential in terms of customers satisfaction and generating more revenue with exponential growth.
From the last decade, the Lean Startup process or Methodology is the topic on which the whole world is deliberately discussing. So what is Lean Startup methodology? Let’s talk about this.
What is Lean Startup?
Lean Startup refers to the business model that merely focused on developing a kind of business & work means that aims to reduce expenses, increase customers satisfaction and boosting productivity.
The focal tactics that come under Lean Startup Methodology are:
- Shorten product development cycles.
- Cutting off unnecessary direct and indirect expenses.
- Setting up of Lean Strategy Model for operations and production process.
- Split testing.
- Generating Business model canvas.
- Viability of Business Model.
And Many More! (we will discuss later)
Let us discuss these:
Shorten Product Development Cycle/ Lean Product Management:
Development term in business is not only limited to manufacturing or processing, this also contains software development which focuses on design, product & project management. As we converse about these tactics, we can’t ignore the importance of project-specific deliverables and antiquities that are heart and soul of any process.
This management term has been misinterpreted for a long time. Product and Project management is not only confined to the company’s profit. It also covers the crafting of products that gives customers a sense of contentment for a price they are paying in exchange.
Cutting off unnecessary direct and indirect expenses
Whether it is manufacturing, operations, service or product based process, there is always a big list of direct and indirect expenses that absorb the company’s cash flow at a very high rate and pace.
Here, one can’t layoff any direct and indirect expenses without measuring the Value Proposition part that it plays in final product deliverables.
For example: If a presentation software costing 300$ per month to the company helps to convert more clients than usual, then it will be more beneficial to keep that expense occurred in order to capture more market. Whereas, it can be done vice versa if it fails to give expected deliverable.
Setting up of Lean Strategy Model for operations and production process.
Operations and Production are the backbones of any big or small enterprise. An ideal operations department includes both back and front end operations that do recording and analyzation. It also gives optimization suggestions for both production process, marketing and future product development. It is done by applying lean thinking approach that always results in the organization’s welfare.
Here the role of the production department is not only stuck to maximum production but to provide optimum results. Shortening of product life cycle refers to the removal and finding substitutes for time taking process that slows down the actual production system.
For example, It’s better to remove 20 manpower and install automatic counting and packaging system that works fasters and smother without any pause.
Split testing work has been used in almost every kind of business, especially in the digital advertising model. It refers to create a different working or advertising blueprint, by keeping a lean canvas business model in mind.
The best way to find the most productive and beneficial workflow is to test them. This is what split testing does!
Whether it is operations, workflow management or production cycle, split testing aims to test and deliver the best options that company’s goal.
Generating Business model canvas.
Business model canvas revolves around the company’s value proposition, infrastructure, customer’s and finances.
What is Company Value Proposition?
CVP or company value proposition visualize the business from a holistic approach. Under the Company value proposition, while creating a business blueprint there are 7 important factors that it covers:
- Customer Channel
- Cost and Revenue
- Value Proposition
- Relationship with Customer
Every strategy of Business canvas model is created after the analyzation of consumer journey.
Viability of Product
Product Viability refers to gathering maximum information about your targeted customer in the least possible time with minimum effort. It helps businesses to learn the latest market trends, the results of these tests and hypothesis will help companies to change their working blueprint.
As product viability is all about recording consumer action, it also helps gather data about consumer buying journey and their behaviour. That helps many billion-dollar enterprises to pursue their digital advertising strategies.
The Entire Lean Startup Methodology revolves around two major factors:
- Creating Products to Satisfy Targeted Customers
- Optimizing the company’s expense.
- Generating Maximum output from all departments.
Hey, have you forgotten what you have read? No worries here are some points to remember:
- Analyze Your Consumer Preferences
- Observe Consumer Buying Journey
- Optimize Work Flow Process
- Use Product Viability Model
- Use the company value proposition concept
- Split Testing of your strategies
We at codingzap are using this methodology for all of our clients that help them to generate more for their business.
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