Benefits of Lean Startup Methodology

1a) Benefits of lean startup methodology:

First, this method allows you know your potential customers through Minimum Viable Product. Instead of making assumptions, you actually have the data on your target customers. Secondly, creating MVP quickly enable you test your assumptions, operations, financial viability and capabilities of your company. By this way, you will know which processes to be improved, what capabilities to be developed, which operations to be pivoted or persevered and financial capability to become sustainable throughout the process. Third, lean methodology is iterative. This is not a stable x-year business plan. In every stage, based on the responses from the market, related areas could be pivoted or persevered. Constant tracking of performance, feedback and adjustment/improvement mechanism will help your product evolve during the stages. Fourth, since the idea is already set in lean startup methodology, it is quicker to move forward, have fast learning curve and come to the ideal state. Lastly, this methodology allows you see the whole process and have feedbacks from the whole process starting from idea or vision to customers and marketplace. Therefore, it prevents common “grand vision” or “sticky present” traps as it gives you the real time market response to the idea, product or service and the operation. In addition, team has the chance to learn better how to manage uncertainties during the process as they face real time uncertainties starting from MVP launch.

1b) Benefits of design thinking:

First, in this methodology team consists of diverse people from different disciplines. (Shopping cart example in class) Diversity creates more innovative results during the ideation and inspiration stages of design thinking. Second, the extensive time spent on the understanding and observing user needs/pains allow team to gain insight and make adjustments on the user experience side. Third, final idea is chosen after this extensive ideation stage and prototype for final idea is created and tested. Gaining insight on user experience is a huge cost-cutting advantage in the prototype and testing stage in a way that one could know what to test. Fourth, similar to lean startup methodology, with extensive user research surveys and testing, design thinking has its own constant learning dynamism to make adjustments throughout all stages. Lastly, this method inherently promotes most innovative ideas as it consists of diverse team and intensive time spent on brainstorming, observing and ideation.