Why the Lean Start-Up Changes Everything

Main Points/Summary
This article, posted on the Harvard Business Review in 2013, poses the point that the lean start-up approach is a game-changer for how a business is formed. Author, Steve Blank, is a seasoned high-tech entrepreneur with his hand in 8 successful start-ups. He now teaches at the Haas School of Business at University of California at Berkeley and he believes that the lean start-up approach is not only the way of the future, but superior to traditional methods.

Blank suggests that the traditional method of Business Plan->Pitch->Assemble a Team->Introduce Product->SELL, SELL, SELL is outdated and sets entrepreneurs up for failure. He backs this up by saying a whopping 75% of start-ups fail. This was back in 2013, but according to an article on Forbes.com posted Jan 16th, 2015, this number has grown to 90%. Whatever the cause for this massive rate of failure may be, perhaps the solution lies within the lean start-up method.

Steve Blank goes on to state that a start-up should include the following:

• Business Model Canvas- Have a general idea for where you want the business to go. How do you create value for the business? How do you create value for the customer?
• Customer Development- Solicit real feedback from purchasers, users, and partners. Get feedback on "product features, pricing, distribution channels, and affordable customer acquisition". Be able to adapt! 
• Successful lean operations are nimble and speedy. They encounter problems and adapt to them. Use feedback to guide business development as opposed to the traditional model in which problems equate to major set-backs. 
• Agile Development-come up with product "iteratively and incrementally". There is a harmonious relationship between agile and customer development. Eliminate waste, smaller batch orders, and find out what customers value.

Class Relation
This article directly relates to class through the discussion of agile/lean start-up methods learned in lecture. Steve Blank reinforces these concepts through arguments against traditional methods and examples of how agile/lean start-ups can achieve success.
 
How is this Helpful?
This article is especially helpful to me, a future MIS professional, because I plan to pursue a start-up venture. With knowledge of how to execute a start-up, I can be better prepared for potential challenges as well as have a realistic methodology for achieving success. Steve Blank has applied this strategy to technology-driven companies and, as MIS students, it is natural to foresee us in similar ventures.

https://hbr.org/2013/05/why-the-lean-start-up-changes-everything