WINTER SEMESTER 2022-23

MGT 1022:
LEAN STARTUP MANAGEMENT

DIGITAL ASSESSMENT 01

SUBMITTED BY:
NAME: MEGHA BHATTACHARYA
REG NO: 20BCE0793
DATE: 19.03.2023 (Sunday)
SLOT: TBB2

Under the Guidance of-

DR. SOVAN SUNDAR DASGUPTA

MEGHA BHATTACHARYA 20BCE0793 MGT 1022 ASSIGNMENT 01

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MEGHA BHATTACHARYA 20BCE0793 MGT 1022 ASSIGNMENT 01

Definition of Lean Start-up:

A lean start-up is a business approach that emphasizes creating a minimum
viable product (MVP) and rapidly testing it with potential customers to
determine its market viability. The goal of a lean start-up is to build a product
or service that customers actually want, while minimizing waste and avoiding
expensive mistakes.
When it comes to hiring, the lean startup approach differs from the
conventional company model. In contrast to traditional firms, lean startups
hire staff who are quick learners, adaptable, and productive. Lean startups
employ different financial reporting metrics as well; rather than concentrating
on income statements, balance sheets, and cash flow statements, they do so
by concentrating on customer acquisition cost, lifetime customer value,
customer churn rate, and the potential virality of their product.
A problem that has to be solved is first identified through the lean startup
methodology. A minimum viable product, or the simplest version of the
concept, is then created, enabling entrepreneurs to present it to potential
customers and solicit feedback. This approach decreases the risk that startups
confront by lowering their normal high failure rate. It is also quicker and less
expensive than building the finished product for testing. According to lean
startup, a startup is an organisation that is looking for a scalable business
model rather than one that already has a plan that it intends to carry through.
The lean start-up methodology was popularized by entrepreneur and author
Eric Ries in his book, "The Lean Startup." According to Ries, the key principles
of a lean start-up include:
 Validated learning: Instead of assuming what customers want, a lean
start-up seeks to test and validate its assumptions through real-world
feedback.
 Rapid experimentation: A lean start-up values speed and agility in the
product development process, allowing for quick iterations and changes
based on feedback.
 Customer-centric approach: The focus of a lean start-up is on meeting
customer needs, rather than simply building a product or service that
the founder thinks is a good idea.

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 Continuous improvement: A lean start-up is never finished, but rather

constantly seeks to improve and refine its product or service based on
customer feedback.
For instance, a healthy meal delivery service that mostly serves busy, single 20-
somethings in cities might discover that suburban 30-something affluent
mothers of infants are its best customers. The organisation might then adjust
its delivery schedule and the types of foods it offers to give optimal
nourishment for new mothers. Moreover, it might include meal options for
partners, spouses, and other children living in the home.
Not just startups should employ the lean startup methodology. Businesses
such as General Electric, Qualcomm, and Intuit have all embraced the lean
startup process; GE used the method to build a new battery for use by cell
phone operators in underdeveloped nations where electricity is unpredictable.
Possible Causes of Failure of a Start-up:
While there are many factors that can contribute to the failure of a start-up,
some common causes include:
 Lack of market need: Perhaps the most common reason for start-up
failure is simply building a product or service that there is no real
demand for. This can happen when a founder assumes they know what
customers want, without actually testing their assumptions.
 Lack of funding: Start-ups often require significant capital to get off the
ground, and a lack of funding can quickly lead to failure.
 Poor execution: Even with a great idea and adequate funding, a start-up
can fail if it is poorly executed. This can include anything from a lack of
focus or strategy to problems with team dynamics or leadership.
 Strong competition: Entering a crowded market with well-established
competitors can be a significant challenge for any start-up, especially if
they are not able to differentiate themselves.
 Legal or regulatory issues: Start-ups may run into legal or regulatory
issues, such as intellectual property disputes or compliance challenges,
which can be difficult and expensive to resolve.
Overall, the success or failure of a start-up depends on a wide range of factors,
including the strength of the idea, the quality of the team, the market
opportunity, and the ability to execute effectively.

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Design thinking is a problem-solving methodology that is focused on empathy,

creativity, and iterative prototyping to address complex problems. The
objective of design thinking is to develop innovative solutions that are both
feasible and desirable for users, while also meeting business goals and
technical constraints.
It can change how your organisation develops products, services, processes,
and strategies if you think like a designer. It combines what is technologically
possible and financially practical with what is desirable from the perspective of
the client. Also, it gives non-designers many possibilities to use creative tools
so they can address a wide range of issues and obstacles.
The following are some crucial areas where design thinking is helpful:
 The primary goal is to meet the needs of the customer aids in solving
complex and unclear problems
 what inspires people to come up with novel solutions
 It makes businesses run more quickly and effectively.

Principles of Design Thinking:

"All design is social in nature," states the Human Rule. By meeting human
needs and taking into account the human aspect in all technologies, the issues
must be resolved.
The Ambiguity Rule states that uncertainty is inevitable. We conduct
experiments to the extent of our knowledge, manipulate events to the extent
of our abilities, and have the freedom to view things from many angles.

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"All design is redesign," states the Redesign Rule. Both technology and social
activities are constantly changing in the modern world. We need to investigate
and assess how past societies met human needs.
The Tangibility Rule states that "making ideas concrete helps communication."
Turning our concepts into prototypes helps designers communicate more
effectively.

Design thinking can be broken down into several distinct stages, each of which
has a specific objective:
1. Empathize: The first stage of design thinking is to empathize with the users
who are experiencing the problem or challenge. The objective of this stage is
to gain a deep understanding of the user's needs, goals, and pain points, and to
develop empathy for their experiences. This is typically done through methods
such as user research, observation, and interviews.
2. Define: Once you have a deep understanding of the user's needs, the next
stage is to define the problem or challenge that you are trying to solve. The
objective of this stage is to develop a clear problem statement that captures
the user's needs, the context of the problem, and the scope of the challenge.
This stage often involves synthesizing the data collected in the empathize stage
and developing a user persona or empathy map to better understand the
user's needs.
3. Ideate: The third stage of design thinking is to generate a wide range of
possible solutions to the problem or challenge. The objective of this stage is to
encourage creativity and divergent thinking, and to generate a large number of
potential solutions. This stage often involves brainstorming sessions, sketching,
and other ideation techniques.
4. Prototype: Once you have generated a range of potential solutions, the next
stage is to prototype these solutions. The objective of this stage is to quickly

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create low-fidelity prototypes that can be tested with users to gather feedback
and refine the solutions. This stage often involves creating mock-ups,
wireframes, and other early-stage prototypes.
5. Test: The final stage of design thinking is to test the prototypes with users
and gather feedback. The objective of this stage is to validate the solutions,
identify areas for improvement, and refine the prototypes based on user
feedback. This stage often involves usability testing, user interviews, and other
feedback-gathering techniques.
Using the design thinking method or approach has the following notable
advantages:
 Design Thinking gives you the opportunity to view issues from several
angles, which aids in overcoming the creative hurdles. To get the
greatest thoughts out, a lot of thought must go into it, which broadens
the learner's understanding.
 It makes it easier to successfully satisfy client needs: As we previously
covered, design thinking entails creating prototypes that are tested and
iteratively improved based on consumer feedback. Your product will
finally satisfy the needs of the clients if you effectively implement the
design thinking methodology.
 It increases your understanding of Design Thinking: Throughout the
design thinking process, you will conduct multiple evaluations. To make
sure the consumer is happy, you will constantly endeavour to improve
your model by taking the comments from the customer into
consideration.
Overall, the objective of design thinking is to develop solutions that are both
user-centered and innovative, while also meeting business goals and technical
constraints. By focusing on empathy, creativity, and iteration, design thinking
can help teams to develop more effective and impactful solutions to complex
problems. Design thinking has its applications in a range of professions. In
sports, education, study, and research to business and management, design
thinking is widely used by several organisations around the world.

THE END
THANK YOU
HAVE A NICE DAY 