Lean startup method helps entrepreneurs to develop businesses and products. This method first developed by Eric Ries in 2008. Eric Ries gained a lot of experience in U.S. startups before developing the Lean Startup method. Ries states that: '' Startups shorten their product development cycle by following businesss hypothesis driven experimentation, repetitive product unleashes and validated learning processes. This method prioritize customers and their needs in order to minimize market risks and some initial costs.
The Lean Startup method is a scientific approach to makes startups fast respondent to customers wants and needs. Throgh Lean startup method entrepereneurs know managing startups effectively in many aspects and also the time to pivot
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He worked with the firm until the 2003 dispatch of its online 3D Virtual World item, There.com.Then Ries met Steve Blank and after that his carrer took on its shape.
Lean startup method has 5 core principles:
1.Entrepreneurs are everywhere
This principle claims that any person can start a business in everywhere. It only depends on how the people who are calling themselves entrepreneurs analyze the needs of market and fiil this gap. There is no certain places or certain time for an entrepreneur to start a businees.
2.Entrepreneurship is management
As a business person, should be responsible for himself by practicing compelling administration aptitudes. The one should know the procedure with a specific end goal to effectively execute the procedure. It's less demanding to maintain a strategic distance from errors when you know how to evaluate esteem and decide him next strides.
3.Validated
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Every part can be experimentally approved by running examinations that exhibit and test your vision. With acceptance, entrepreneurs will have the capacity to distinguish and address the key dangers in your item or administration and make changes in accordance with legitimately position their image.
4.Build-Measure-Learn
This principle is the core component of all of 5 principles, because we can say that a big part of lean startup method and the succes rate of this method is determined through this principle. It covers all the topics including transforming ideas into businesses, assess and measure the metrics and testing these metrics.
5.Innovation
The methodology of Lean Six Sigma is the merger of two business tools that includes Lean Manufacturing and Six Sigma. Six Sigma focuses on improving current business processes and performance while Lean Manufacturing focuses on the improvement of the processes of an organization by using highly skilled employees to increase speed and quality. Combining the two methodologies creates an organization that focuses on quality, efficiency and speed to lower operational costs and increase profits. By following the Lean Six Sigma methodology, many companies have attempted to create a lean, waste-free environment ultimately at the expense of the employee and occasionally at the expense of the organization.
According to Christopher and Towill (2001), there are mainly three ways to combine lean and leagile. The first hybrid approach is the Pareto rule, which means that the dominant 20% of products should use leanness and make to stock. While the remaining 80% products with less share of revenue should use agility. The second hybrid approach is about using lean approach for the base level of demand, while for the peak season or flexible demand, manufacturer can use agility
According to Christopher and Towill (2001), there are mainly three ways to combine lean and leagile. The first hybrid approach is the Pareto rule, which means that the dominant 20% of products should use leanness and make to stock. While the remaining 80% products with less share of revenue should use agility. The second hybrid approach is about using lean approach for the base level of demand, while for the peak season or flexible demand, manufacturer can use agility
1.2 Lean for Services A mainstream confusion is that lean is suited only for the confluence. Not genuine. Lean applies in each job and each procedure. It is not a scheme or an expense lessening system, but rather a state of mind and interpreting a whole connection. Organisations in all commercial enterprises and administrations, including medical services and governments, are utilizing Lean standards as the way they think and act.
A LEAN Company is our best description and our business philosophy (creating more value for customers with less resources), which pursues to deliver what the customer wants, when they want it, at maximum value with minimum misuse.Through the application of LEAN, we achieve more fulfillment as it helps to reduce the possibility to constantly be fighting a battle against difficulties. Besides, we promote a Continuous Improvement Culture in our performance.
Responsibility means taking accountability for what we do, say, and think. Personal responsibility involves working on our own personality and abilities rather than blaming others for what happens. It means choosing to make our life follow our ethics and ambition. When you take all responsibility for your accountability, how you perform will improve, your relationships and partnerships will develop, people’s regard for you will expand, you will become a great role model, and your dignity will grow. I am a firm believer that if you want to further your life personally or professionally, you must hold yourself liable for your actions, responsibilities, and goals. You cannot achieve any profitable personal or professional goal, if you don’t hold
A competent leader will take accountability for what their strengths and weaknesses are; as well as where they can find the resources
Having a plan in place can lift weight off of an individual shoulders and guide them through the process. The four steps of the entrepreneurial process encompass all the tasks, actions associated with creating a business strategy. The four steps of the entrepreneurial process is first identification and evaluation of the opportunity, development of the business plan, determination of the required resources and finally management of the resulting enterprise. The first step of the entrepreneurial process is to Identify and Evaluate the Opportunity. The first step is the most difficult step, but the most important one. This step is rated as number one in being the most important process. This is because you have to take time to seek out an opportunity. Most opportunities don’t come over night, it takes time to seek and recognize a business opportunity. The opportunity has to meet the goals of the entrepreneur. The entrepreneur needs to put fort the effort to grasp the opportunity to succeed in developing his or her business. The second step is developing a business plan. With this step, the entrepreneur has to be very careful when getting ideas and responses from other people such as
Toyota is a pioneer of the LEAN manufacturing principle. Lean, as a process, is a way to add value to customers while minimizing waste (LEI, 2011). It can also be thought of in terms of flow, which is how Toyota likes to think of it. It is simply a process of decision making where the problems tend to be thought of in terms of flow, reducing starts and stops or unnecessary motion increases flow, reducing waste.
Agile Development came about as a possible solution to the disadvantages of the Waterfall Model. It borrows heavily from the Iterative Model along with the customer –centric and team-centric approaches to software development frameworks. Instead of handling all the planning upfront, Agile focuses on being lean (reducing waste) and producing minimum viable products (MVPs) over set periods of time.
Every employee who is responsible for performing an assigned duty in a proficient manner and purposely decides to neglect the details required in completing these goals will be held accountable for their actions. Accountability in the workforce is an important necessity in order for a business to be successful.
Traditional development methods are also known as Heavyweight methodologies. In the traditional approach first we schedule a planning of the software development and based on these all the requirement is gathered at the beginning and finally a master design is implemented and no changes are made after this phase whereas in Agile Methodology new changes or requirement are welcome even late in the development. The traditional method follow a sequential approach i.e. output of one phase will act as an input of another phase.
Business people normally have the capacity to express their thoughts to others, and to listen to the thoughts and criticism of others in a way that can offer them some assistance with generating viable future endeavors.
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
The main idea is to fulfill the internal or external customer’s wants. Through lean thinking, it is hoping that nonmanufacturing company’s can provides value to the customers with minimum cost, effort and can save time. Thus, it will lead to improve performance and optimum utilization of the company’s additional capacity and resources.