M4: Product Development

• A methodology for developing businesses and products which aims to shorten product development cycles and rapidly discover if a proposed business model is viable.

  Lean Startup
• A process in which startups conduct experiments to learn what aspects of their product or service are working and which are not.

  Validated Learning
• The simplest version of a product that can be released to start the learning process as quickly as possible.

  Minimum Viable Product (MVP)
• A fundamental change in the direction of a business when the current products or services are not meeting the needs of the market.

  Pivot
• A way of measuring progress, planning milestones, and prioritizing tasks within a startup.

  Innovation Accounting
• The core feedback loop of the Lean Startup methodology, where entrepreneurs build a product, measure its performance, and learn from the results.

  Build-Measure-Learn
• The idea that entrepreneurship can happen in any sector or size of company.

  Entrepreneurs are Everywhere
• The concept that a startup is an institution, not just a product, and therefore requires management specifically geared to its context of extreme uncertainty.


  Entrepreneurship is Management
• A strategy for releasing software in which every code change goes through the entire pipeline and automatically gets put into production.

  Continous Deployement
• A technique used to explore the cause-and-effect relationships underlying a particular problem.

  Five Whys
• A method of implementing changes in a system by creating a smaller, more nimble version within the larger organization.

  Cluster Immune System
• A method of comparing two versions of a webpage or app against each other to determine which one performs better.

  Split Test (A/B) Experimentation
• A one-sentence statement describing the clear and inspirational long-term desired change resulting from an organization or program’s work.

  Vision Statement
• A statement that describes how an organization will achieve its vision, guiding decisions about priorities, actions, and responsibilities.

  Mission Statement
• The initial idea’s quality is not correlated with the startup’s success.

  Quality of the Initial Idea
• Critical for a startup’s success, referring to the speed at which a startup can test new ideas and pivot if necessary.

  Time Between Iterations
• The process of identifying a business idea that is good and viable.

  Finding the Business Idea
• Selecting the most promising business idea among several options.

  Picking the Right Idea
• Implementing the business idea with a focus on action, setting tough deadlines, and not building unnecessary features.

  Execute the Business Idea
• The principle of securing customers before fully developing the product.

  Sell First
• Checking if the business idea is worth spending time and money on by setting and achieving specific goals.

  Validate the Business Idea
• Objectively assessing whether the business idea meets the validation goals and being prepared to pivot or stop if it doesn’t.

  Be Honest With Youself
• Adjusting the business model or product before achieving product-market fit, and optimizing after achieving it.

  Pivot Before Product Market Fit
• • Entrepreneurs are Everywhere
  • Entrepreneurship is Management
  • Validated Learning
  • Innovation Accounting
  • Build-Measure-Learn


  Principles of Lean Startup
• • Build
  • Measure
  • Learn


  Lean Startup Cycle Steps
• • Lack of customers
  • Poor quality of the initial idea
  • Not iterating enough times before running out of resources
  • Lengthy time between iterations


  Reasons Startups Fail
• • Finding the Business Idea
  • Picking the Right Idea
  • Execute the Business Idea
  • Validate the Business Idea


  Lean Startup Steps
• • Short
  • Memorable
  • Inspiring
  • Market-focused
  • What you want to be remembered for


  Characteristics of a Good Vision Statement
• • Continuous Deployment
  • Cluster Immune System
  • Split Test (A/B) Experimentation
  • Five Whys

  Strategies for Startup Sucess
• • Generate ideas and compare them to the current solution
  • Think of ways to pivot those ideas
  • Think of ways to validate the ideas

  Activities to Validate Business Ideas
• • Define what you want to accomplish (Vision)
  • Define how you want to achieve it (Mission)


  Vision and Mission Statement Criteria
• Who is the founder of Lean Startup describes startups as a human institution designed to deliver a new product or service under conditions of extreme uncertainty and has nothing to do with size of company, sector of the economy, or industry.

  Eric Ries