Understanding The Lean Start-Up Approach
The MVP is defined by Eric Ries as a version of a product, which allows a team to collect the maximum amount of validated learning about customers with the least effort. This could be further explained as the smallest thing that could be built that delivers value and allows for feedback to be collected. One of the key elements emphasized by the lean start-up methodology is business model generation, a method aimed to replace the creation of business plans at the beginning of a project. The method introduced by Alexander Osterwalder and Yves Pigneur is based on the fact that business innovations are created in order to generate value for companies, clients, and society. Their business model canvas describes the logic of how a company is aiming to achieve profit through nine building blocks, which cover four main areas of business: 1. customers, 2. offer, 3. infrastructure, 4. financial viability, for further strategy implementation through processes, systems, and structures.