Techno Finals Reviewer PDF

MODULE 4: PRODUCT DEVELOPMENT 4. Startups that succeed are those that manage to iterate enough times before they run out of resources....

MODULE 4: PRODUCT DEVELOPMENT 4. Startups that succeed are those that manage to iterate enough times before they run out of resources. 5. Time between these iterations is fundamental. 3 MAIN STEPS OF A LEAN STARTUP: (ENUMERATION LAST QUIZ) 1. FINDING THE BUSINESS IDEA LEAN STARTUP – It describes a new 2. EXECUTE THE RIGHT IDEA approach for startups and prescribes 3. VALIDATE BUSINESS IDEA behaviors they should adapt to increase FINDING THE BUSINESS IDEA: the likelihood that they will succeed. 10-IDEAS-PER-DAY TOOL – the hard part is PRINCIPLES OF LEAN STARTUP: (ENUMERATION LAST QUIZ) not to find a new business idea but to find a 1. Entrepreneurs are everywhere, you don’t good one. have to work in a garage to be in a startup. EXECUTE THE RIGHT IDEA – picking the right 2. Entrepreneurship is management. business idea is one of the most crucial part of a lean startup. 3. Validated learning. BUSINESS IDEAL POTENTIAL MATRIX – helps 4. Innovation accounting. to identify if an idea has enough potential 5. Build-Measure-Learn Entrepreneurs. to make money. ERIC RIES – founder of Lean Startup, he THINGS TO UNDERSTAND IN A LEAN describes startups as a human institution STARTUP: designed a new product or service under 1. What customer you’re trying to conditions of extreme uncertainty and has serve? nothing to do with the size of company, 2. What is their goal? WHY DO STARTUPS FALL: 3. What are the points to achieve this goal and then 1. Rarely fail because the product doesn’t 4. What is their behavior? work. EXECUTE THE BUSINESS IDEA: (ENUMERATION LAST QUIZ) 2. Usually fail because there are no customers. 1. SET YOURSELF TOUGH DEADLINES 2. FOCUS, FOCUS, FOCUS 3. Quality of the initial idea is not correlated 3. DON’T BUILD THINGS YOU DON’T NEED TO with success. 4. GET OUT AND GO WHERE THE PROBLEM IS 5. SELL FIRST 6. MAKE MONEY WITH THE PROBLEM MISSION – how you want to do it. SOLUTION, NOT WITH EXTRA SERVICE (What you do) VALIDATE THE BUSINESS IDEA: CHARACTERISTICS OF GOOD MISSION: PRODUCT MARKET FIT – you continually  Short adjust your idea until you have the best  Memorable product that you think will fit the market.  Inspiring  Market Focused VALIDATION – means that you have to  What do you want to be check if your business idea is worth remembered for (legacy) spending your time and money on it. CONTINUOUS DEPLOYMENT: DO BASIC MATH BEFORE YOU START YOUR STARTUP – before you focus on a lean  Deploy new software quickly startup, you have to know how much  Tell a good change from a bad money it must earn (Do the basic math for change (quickly) your monthly cost)  Revert a bad change quickly  Work in small batches HOW TO VALIDATE BUSINESS IDEA – the best  Break large projects down into small way to validate business idea is by setting batches goals for it. When your idea does not achieve its goals, the validation failed and CLUSTER IMMUNE SYSTEM: you have to stop it. (Use validation goals to What it looks like to ship one picece of code validate your busienss) to production: BE HONEST WITH YOURSELF. RUN TEST LOCALLY (SimpleTest, Selenium): VISION – what you want to accomplish  Everything has a complete sandbox (Desired end state) CONTINUOUS INTEGRATION SERVER CHARACTERISTICS OF GOOD VISION: (BuildBot):  Future Casting  Automatic Feedback if the team is  Clear and Visible going too fast  Audacious  Descriptive INCREMENTAL DEPLOY:  Time Constraint  Monitor cluster and business 3 TYPES OF VISION STATEMENT: metrics in real-time.  Reject changes that move metrics  QUANTITATIVE (specific num.) out-of-bound:  COMPETETIVE (overcome, defeat)  SUPERLATIVE (become the best) ALERTING AND PREDICTIVE MONITORING 2. CUSTOMER VALIDATION – develop a (Nagios): replicable sales process, an essential step in scaling a business  Monitor all metrics that stakeholders care about 3. CUSTOMER CREATION – generate  If any metric goes out-of-bounds, demand, and identify the tease out wake somebody up potential customers.  Use historical trends to predict 4. COMPANY BUILDING – focus on building acceptable bounds. your organization to scale and executing WHEN CUSTOMER SEES A FAILURE: the business plan.  Fix the problem for customers MINIMUM VIABLE PRODUCT – the smallest  Improve your defenses at each level thing you can build that delivers customers value and as a bonus captures some of SPLIT TEST (A/B) EXPERIMENTATION: that value back.  Comparing two versions of a web OTHER REFERENCES – Startups do not have page to see which one performs all the information when they begin and better. you have to carefully build up the data to FIVE WHY’S – an iterative interrogative make your business a success. technique used to explore the cause-and- CUSTOMER VALIDATION STEP-BY-STEP: effect relationships underlying a particular problem. This technique was developed by  Validating market demand Sakichi Toyoda.  Validating the customer problem/pain point MODULE 5: CUSTOMER VALIDATION  Validating the product or solution CUSTOMER DEVELOPMENT MODEL: STEPS TO COMPLETE PROCESS OF  Originally described by Steven G. CUSTOMER VALIDATION: Blank in his book, The Four Steps to  PREPARE TO SELL the Epiphany  FIND EARLY ADAPTORS  “a set of objectives and milestones  DETERMINE YOUR POSITIONING that are meaningful for a startup”  VERIFY THE VALIDATION PROCESS CUSTOMER DEVELOPMENT MODEL STEPS: PREPARE TO SELL – this part involves 1. CUSTOMER DISCOVERY – focus on preparing your Minimum Viable Product understanding your customers, their (MVP) as well as an initial marketing plan problems, their preferences, and their for your product buying behavior SIMPLE MARKETING TOOLS: BUSINESS ETHICS – the moral principles defining right and wrong behavior of  Logo businesspersons and their agents.  Business Card  Website COMMON AREAS WHERE ETHICS ARE  Company Email TESTED:  Real world business address  Advertising FIND EARLY ADAPTORS – the early adaptors  Personal Selling that believe in what you believe in.  Suppliers  Contracts DETERMINE YOUR POSITIONING – by this,  Pricing you evaluate if you have the right target customers, if your value proportion is ETHICAL BEHAVIOR – it is needed to make correct. the “playing field” free and orderly. If the business person does not adhere to ethical POSITIONING – an essential part of principles, public opinion may pressure the launching your product and company in government to act. the market. Positioning creates an image of your company’s product in the mind of your AREAS OF CONCERN FOR BUSINESS ETHICS – target customer. Ethics covers all areas encompassed by business transactions. POSITIONING TEMPLATE: The Ethical businessperson may be  Target customer or market measured against how the following are  Compelling reasons to buy adhered to:  Product’s placement within a new or existing category 1. Laws and regulations promulgated by  Key benefit that directly addresses the government. the compelling reason to buy 2. Specific ethical conduct not yet passed  Primary alternative source (that is into law. competitor) of the same benefit  Key difference or point of LAWS AND REGULATIONS REQUIRING differentiation ETHICAL BEHAVIOR: VERIFY THE VALIDATION PROCESS – 1. Product safety and quality customer insights are the best way to 2. Fair employment practices validate if you have the right product 3. Fair marketing and selling practices market fit. 4. The use of confidential information for personal gain MODULE 6: ETHICS AND SOCIAL 5. Community involvement RESPONSIBILITY AND 6. Bribery GLOBALIZATION 7. Illegal payments to foreign governments BENEFITS AND COSTS OF SOCIAL ACTIONS: to obtain business 1. Improved employee satisfaction and SOCIAL RESPONSIBILITY – refers to the motivation. concern of business for the welfare of the 2. Company becomes more aware of society. The firm must perform its function changing consumer’s tastes and without harming the community. Produce preferences. goods or services that will adversely affect any component of society. 3. Greater demand for the company’s products of services. INTERESTED GROUPS – there are various groups with interest that are different from 4. Preference by investors to buy firm’s one another. These interest must be stocks properly considered by the business firm. 5. Elimination of possible legislative OWNERS – the interest of the owners is controls on business activities. expected to the highest priority. GLOBALIZATION – the increase in the flow CONSUMERS – the basic rights of of goods, services, capital, people, and consumers include those concerning ideas across international boundaries. representation, information, a healthy IMPACT OF GLOBALIZATION: environment, safety, basic goods and services, choice, consumer education and MARKET GLOBALIZATION – the decline in redress. barriers to selling in countries other than the home country. This change will make it MINORITY GROUPS – management must easier for your company to begin selling avoid treating them outright as inferior so products internationally, since lower tariffs as not affect their employment and keep consumer prices lower and fewer promotion. restrictions when crossing borders and OLDER PEOPLE – older people have distinct makes it easier for a company to enter a needs that must be the concern of foreign market. business. Many of them are highly qualified PRODUCT GLOBALIZATION – the sourcing of and able to perform special tasks which materials and services from other countries younger people cannot do. to gain advantage from price differences in THE HANDICAPPED – firm’s management different nations. must be responsible for removing hazards and obstacles which prevent them from doing their jobs effectively. THE COMMUNITY AT LARGE – there are business activities that may affect any of the widely diverse interest of people.