From our first session by Mr. Sam Surawat Promyotin, STYLHUNT CEO and Executive Director of Bangkok Venture Club, this time Mr. Sam will provide us with some intensive contents. We have highlighted some key points for all of us to learn together.
What you need to understand about Lean Startup
Lean Startup is a business approach applicable for both Startup and organisations in general. It is also accepted for its capacity to create innovations. In theory, Lean Startup originates from a combination of Lean Manufacturing theory, which is designed to minimise losses in manufacturing industry, and Customer Development theory, which aims to better respond to customer’s needs.
Lean Startup is also a product development tool to create the MVP (Minimum Viable Product) or a product with minimum features just enough to be usable and capable of being tested in the market quickly, which is the fastest way to test the product for Startup.
Many global products have done MVP
Dropbox came up with a simple 3-minute demonstration video showing how Dropbox works and received about 5,000 - 7,000 user subscriptions just overnight. This video made the consumers decided that the product actually respond to their needs.
BUFFER.com also came up with its Landing page for users to subscribe, and subsequently contacted those users to gather in-depth data, and used these data to improve its product before launching it to the market.
Airbnb also started from taking photos of their own apartment and uploaded to the website. People responded by booking it and paid instantly. They then used these qualitative data obtained from the response to analyse the customer’s need.
Changing the product direction or business model of Startup or so-called Pivot
Another test for implementing Lean Startup is Pivot, which means to design or test the new product hypothesis or the business model after the original plan did not produce the expected outcome. The product direction or business model need to be changed in order to best accommodate the user's’ needs.
Example of Pivot
Initially, Groupon was an Online Activism Platform which is a platform for campaigning or advocating changes in the society. They barely had any users at the beginning. Then Groupon founder had an idea. They created a blog on the website and posted Pizza Promotion coupons. It generated increasing attention. The founder rethought, then changed the direction or Pivot from the original customers to its actual customers.
Pivot is divided into 8 categories
Customer Need Pivot: improving the product by addressing the user’s different need or problem, but still maintain the business plan focusing on the original users.
Customer Segment Pivot: improving the product which solves the same problem, but change the target customers.
Business Architecture Pivot: change of business model, for example from B2B to B2C.
Zoom in Feature Pivot: selecting one of the features as the main feature of such product.
Zoom out Feature Pivot: increasing more features since there are too few features.
Technology Pivot: introducing the same product, but using a better technology to reduce the cost or increase the productivity.
Channel Pivot: changing sales channel, for example from using sales representative to direct sales.
Platform Pivot: changing the product from Application to Platform or from Platform to Application such as unlocking the API for other developers to create web or application on our network.
The content of Digital Ventures Accelerator is getting more and more intensive. We have learned the true meaning of Lean Startup, doing MVP for simple product testing, or Pivot which is a testing tool to improve the outcome without the need for high investment as before. Moreover, in this session, each team had the opportunity to share their MVP stories, the problem they encountered, the solution and the future plan to other teams. Ideas were also exchanged so that they can adapt the ideas to improve their own business.
Those who are interested in Startup can continue to learn and get to know the Startup Buzzword from Digital Ventures FB page.