Build-Measure-Learn - Revision history

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In [[The Lean Startup|The Lean Startup]] one of the key concepts is that of ''build-measure-learn''.

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# '''''Ideas'''''
## All startups start out with an idea and a strategy based on certain assumptions. The most important strategy assumptions are so called ''leap-of-fate'' assumption because they make or break the value proposition of the venture.
## Sharpen your ideas by working with a [[Customer Archetype|Customer Archetype]]@design and validate them (see also [[Empathy Map|Empathy Map]]@games)
## Beware of analysis paralysis and start validating your ideas quickly!
# '''Build'''
## As your first product targets [[Early Adopter|Early Adopter]]@marketing, it does not need to be perfect.
## Most people overestimate the # features that need to be present in a product '''''when in doubt simplify'''''
# '''''Product'''''
## Try to ''build'' a [[Minimal Viable Product|Minimal Viable Product]] as soon as possible to test your ''leap of fate'' hypothesis
# '''Measure'''
## The concept of [[Innovation accounting|Innovation accounting]] enables a startup (or new in company innovation) to validate objectively that they are learning how to grow a sustainable business.
## Each startup has a different hypothesis on their financial operational model. Depending on these assumptions, learning milestones will be different.
## As an example, in a manufacturing company, growth depends on three things:
### The profitability of each customer
### The cost of acquiring new customers
### The repeat purchase rate of existing customers
### These are the basic drivers for this companies growth model
## By contrast, eBay's success depends on:
### Network effects, sellers want the highest number of potential customers, buyers want the marketplace with the biggest competition among sellers.
# '''''Data'''''
## A useful concept in measuring your business is [[Cohort Analysis|Cohort Analysis]]
## Be aware of [[Vanity Metrics|Vanity Metrics]]. Using [[Cohort Analysis|Cohort Analysis]] you can measure if customers in new cohorts actually use the product more, are willing to pay more or otherwise are more engaged with the product.
# '''Learn'''
## [[Validated Learning|Validated Learning]] in a [[Kanban|Kanban]]@kanban board is a great way to have developers engage in how useful their features and ideas work in a customer environment.
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[[Category:The Lean Startup]]