To do business and work in step with the best ideas of the present, it becomes essential to adopt economic and managerial models capable of dealing with unexpected events and needs that arise every day. In this sense, the so-called lean startup method by Eric Ries, an entrepreneur who over the course of his career has had to deal with various failures and commercial setbacks and who wrote the book The Lean Startup, in which he creates and explains a management strategy that allows every entrepreneur to understand how to start an innovative startup.
From a historical point of view, the Lean Startup methodology was born from the principle of Toyota's Lean manufacturing, optimized and applied to corporate productivity for each business, with a specific eye on those that have few resources to carry out projects, especially if they are newly designed and therefore do not have a similar market to refer to, with the risk of failure in the event of a flop launch. In this sense, according to the methodology created by Eric Ries in his book, the approach to be put into practice by entrepreneurs is to not only consider saving on production with regards to the time and economic period, but to avoid at the root of creating something superfluous: this is possible, even in the absence of a similar product to refer to, simply by carefully analyzing and verifying the business model applied.
Synthesizing the thought conceived by Ries, to organize a good project it is essential to think differently than usual, reversing the orders of thought: instead of organizing complex business plans that involve the presence of many variables or projected over time at a considerable distance - such as 5 or 10 years - with the Lean Startup in 1 minute method it is possible to have great flexibility in modifying the chosen commercial strategy, making important changes to the product offered for sale, without having an economic hitch and quickly continuing towards the established objective. In order to set up a commercial strategy in this way it is essential to take the so-called basis as a basis. feedback loop, i.e. the system of circular functioning based on creation, measurementand learning. The differentiated and concerted analysis of these variables allows you to understand when the timing is right to change direction of the company, also taking into account the MVP, or the minimum achievable product, which in concert with the economic perspective tells you when it is better to change course rather than maintain it.
What is Minimum Viable Product and how does it work? From this point of view, in correlation with Ries' ideology, those who want to launch a product or service on the market and do not already have competing products similar or similar to which to refer to form quality standards is to create a prototype of poor quality which has the same philosophy as the final product, but which at the same time is easier to produce while containing costs, minimizing the risk of economic failure in the event of a flop on the market.The minimum viable product, therefore, is nothing more than a form of prototype which will serve to provide feedback, which will therefore flow into the aforementioned cycle. These opinions are provided by early adopters. In this sense, the Lean Startup Method is nothing more than the synthesis of thinking big, but starting small, cautiously keeping one's economic resources by investing them day after day without the risk of wasting them on senseless and counterproductive ideas.
One of the most famous examples is that of IMVU, a software house which is established in the production of instant messaging applications. Its product was launched on the market in a more than embryonic stage, being updated over time based on the messages and suggestions made by customers, while still keeping in mind the original ideas created by the development team: the result is that of a functional and rapid program, in which the community of consumers acts as experimenters.
First of all, the model is suitable for every type of business, regardless of the size of the company and the branch of operation. Furthermore, it is essential that entrepreneurs also behave as managers, directing all work and each production sector. Furthermore, the feedback cycle of the Lean Startup is fundamental, based on creation, measurement and finally learning: every data measured and derived from creation is learned and examined by specific people, with the aim of improving production processes where there are critical issues. In this sense, the final point of the lean startup is that of extrinsic and intrinsic innovation: from the first point of view, the externality of the company, which operates in an innovative way, is summarized; from the second point of view, however, we mean an internal organization that is differentiated and responsive to change. Find out more about the Lean Startup phases.
