A pivot for a start-up refers to a significant change in the company’s business model, product, or strategy in response to market feedback or challenges. Common types of pivots include:
1. Zoom-in Pivot: Focusing on a single feature of the product.
2. Zoom-out Pivot: Expanding the product to cover a broader solution.
3. Customer Segment Pivot: Targeting a different customer base.
4. Revenue Model Pivot: Changing how the business generates revenue.
5. Technology Pivot: Switching to a different technology platform.
Pivots help start-ups adjust to market realities and improve chances of success.
Genchi Genbutsu is a Japanese concept used in lean management, particularly in
Toyota’s production system. It means "go and see for yourself." The principle encourages
managers and team members to visit the actual place (the gemba) where work is
happening to thoroughly understand processes, identify problems, and gather facts
firsthand. This direct observation helps in making informed decisions and solving
problems more effectively by getting an accurate view of the situation rather than relying
on reports or second-hand information.
A Minimum Viable Product (MVP) is a version of a product that has just enough core
features to be usable by early customers who can provide feedback for future
development. The goal of an MVP is to test a product idea quickly and efficiently with minimal resources, allowing start-ups to learn about customer needs and preferences
before investing heavily in a full-featured product. By validating assumptions and
collecting data, companies can avoid wasting time and money on building unnecessary
features.
Innovation accounting is a method used in lean start-up practices to measure progress,
set milestones, and prioritize actions based on learning and value creation rather than traditional financial metrics. It focuses on three key steps:
1. Establish a baseline: Measure the current state using an MVP.
2. Tune the engine: Experiment and improve key metrics through iterative changes.
3. Pivot or persevere: Decide whether to continue with the current strategy or pivot based on validated learning.
It helps start-ups track success through learning, not just financial outcomes.
The idea is to get a good enough conversion rate that you can make model in your business.
An MVP is just used to test the hypothesis with the aim of improving the conversion rate.
Planning is a useless endeavor because developments in e-business and e-commerce and in the political, economic, and societal environments are moving too quickly nowadays.” Do you agree or disagree with this statement? Why?
Planning is a useless endeavor because developments in e-business and e-commerce and in the political, economic, and societal environments are moving too quickly nowadays.” Do you agree or disagree with this statement? Why?
