Combining Lean Startup and the Business Model Canvas

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The Lean Startup-Business Model Canvas mashup explores conformity of the Business Model Ontology by Alex Osterwalder and the Lean Startup/ Customer Development methodology by Eric Ries and Steven Blank. In other words, it integrates process and structure to aid entrepreneurs on their journey to product/market fit. The model is explained in http://bit.ly/LeanBizMod

Negócios Tecnologia

Product development (solution unknown) Product/ Customer development (problem unknown)
Market fit

Agile development Getting out of the
tactics building

Continous cycle of
Listen to customer customer interaction

Cloud hosting Rapid hypothesis Social Media
provider testing collaboration tools
Minimum Viable Early adopters/
(e.g. Amazon EC2)
Product (MVP) lead-users

Google (search
marketing, tools for Service platform: SEM/SEO
testing) Open Source
(LAMP) Continous
deployment
User Generated
Content Key Metrics
(e.g. AARRR)

Reduced costs driven by technology Repeatable sales model
commoditization
Revenue goals from day one
Low burn through lean principles

The Lean Startup Business Model by Tor Grønsund. The template combines the Lean Startup methodology (Eric Ries) and the Business Model Canvas
(Alexander Osterwalder). Template description to be found on http://bit.ly/LeanBizMod

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If there were to be a single word that describes the Lean Startup methodology, I’d vote for “Pivot.” However, “Pivot” is one of the most abused terms in the lexicon of a Lean Startup. In his book, “The Lean Startup,” Eric Ries notes: “A pivot is a special kind of change designed to test a new fundamental hypothesis about the product, business model, and engine of growth.” He then lists 10 types of pivots that can occur in a startup. He suggests that startups should have regular “Pivot or Persevere” meetings. The typology of pivots is strongly tied to the building blocks and profit logic of a business model. However, Ries does not illustrate the typology of pivots especially within the framework and profit logic of a business model. This presentation on the 3-Act Business Model Storyboard visually organizes the 10 types of pivots within the profit logic of a business model; see http://goo.gl/MorILv . Consequently, one can see how a pivot in one part of a business model affects other parts of the Lean Startup’s business model. The Business Model Storyboard also indicates why it’s difficult to make pivots or structural changes in established business models; I describe this phenomenon as “Pivot Inertia (PI).” Pivot Inertia is responsible for the demise of once established firms such as Blockbuster and Borders. Overcoming Pivot Inertia is critical for the success of both startups and established businesses. Google, PayPal, and Groupon all overcame Pivot Inertia and made a fortune. Finally, there is a template of the Business Model Storyboard that facilitates application of the Lean Startup Method. In particular, the Business Model Storyboard facilitates the process of formulating, testing, and validating business model hypotheses of Lean Startups. Using the Business Model Storyboard should make easier the understanding, planning, and execution of pivots in both startups and established companies. Rod.

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We will go together through a journey on how we can build a competitive startup. We are going to explore together the different stages we need to cover to reach a competitive startup. Due to the available time of the workshop, we will not be able to go deeper, we will just try to identify what we need to do. Our real Objective is how to reach Competitiveness. Through the Commercializing of technologies (ideas) which creates wealth for Individuals and Nations.

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In 2011, Eric Ries published his groundbreaking book, "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses." In his review of the book, Steve Blank commented: "The roadmap for innovation for the twenty-first century. The Ideas in 'The Lean Startup' will help create the next industrial revolution." Tim O'Reilly added: "I imagine the Lean Startup principles applied to government programs, to health care, and to solving the world's greatest problems." In spite of the high acclaim for Ries's "The Lean Startup," entrepreneurs and organizations struggle to translate into reality key ideas and principles of the Lean Startup Method. Many entrepreneurs don't know where to begin and the tools that must be applied to achieve the goal of continuous innovation while creating radically successful businesses. In short, Ries's book lacks tools for simply translating its ideas into reality. Several tools have emerged to help translate Lean Startup ideas into practice. Popular tools include the Business Model Canvas, Lean Canvas, and Validation Board. However, none of these tools can be used to holistically present or illustrate the Lean Startup Methodology as presented in the book, "The Lean Startup." Tools such as the Business Model Canvas, Lean Canvas, and Validation Board cannot be simultaneously applied at the level of business strategy, business modeling, and execution in a Lean Startup project. In short, single level and static tools such as the Business Model Canvas, Lean Canvas, and Validation Board do not adequately reflect and feature the rich contents of the Lean Startup book. It is this void that the Lean Startup Model fills. The Leaner Startup Model provides the only template for systematically translating Eric Ries's Lean Startup ideas, principles, and method into reality. The Lean Startup Model provides the only dynamic business model framework that explicitly integrates the Product Innovation (Agile Development) Model, Customer Development (Marketing) Model, and Innovation Accounting (Financial Profit) Model of the Lean Startup Method. The dynamic framework of the Leaner Startup Model facilitates deep understanding and exploration of Lean Startup ideas including the following: Lean Strategy (Vision-Strategy-Product) Pyramid; Build-Measure-Learn Feedback Loop; Minimum Viable Product; Pivot; Product-Market Fit; Value Hypothesis; Growth Hypothesis; Engines of Growth. The goal of the Leaner Startup Model is to provide an all-in-one template that helps more entrepreneurs and organizations to use continuous innovation to create "Radically Successful Businesses (RSB)." Use of an all-in-one template as well as a 'de facto' standard template facilitates communication between different Leaner Startup Practitioners as well as tremendously saves time, money, and energy in Leaner Startup projects. So, what do you think about having a standard template for the Lean Startup Method?

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Combining Lean Startup and the Business Model Canvas

1. Product development (solution unknown) Product/ Customer development (problem unknown) Market fit Agile development Getting out of the tactics building Continous cycle of Listen to customer customer interaction Cloud hosting Rapid hypothesis Social Media provider testing collaboration tools Minimum Viable Early adopters/ (e.g. Amazon EC2) Product (MVP) lead-users Google (search marketing, tools for Service platform: SEM/SEO testing) Open Source (LAMP) Continous deployment User Generated Content Key Metrics (e.g. AARRR) Reduced costs driven by technology Repeatable sales model commoditization Revenue goals from day one Low burn through lean principles The Lean Startup Business Model by Tor Grønsund. The template combines the Lean Startup methodology (Eric Ries) and the Business Model Canvas (Alexander Osterwalder). Template description to be found on http://bit.ly/LeanBizMod

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