Both big companies and entrepreneurs or startups are faced with the same challenge when it comes to introducing an innovation to the market: validating the new value proposition. Here, the innovator is confronted with two main problems that must be managed in order to guarantee success.
Development of product/service, referring to characteristics of the same and the ability to create it.
Positive response on behalf of the market regarding our innovation, that’s to say, the market decides to buy the product/service.
These challenges were the same ones encountered by Eric Ries, propellant of Lean Startup (2008), a process through which the entrepreneur must structure hypotheses for the product and validate them with market samples.
The methodology offers a scientific approach which helps to eliminate uncertainty and accelerate the creation and management of the consumers’ desired product. Lean Startup is divided into three main activities:
Constructing the idea
Once we have detected a need that is still unresolved or an improvement in a current product/service, we must develop what we call an MVP (Minimum Viable Product), that’s to say, an initial prototype through which we are able to communicate our idea and have the opportunity to test it with potential clients and therefore gain feedback.
Likewise, during the process of constructing the idea, it is recommended that you define hypotheses on:
Needs to be met by your product
Target sector and clients
Measuring established hypotheses
Once the MVP has been developed, we will invite the clients that have been identified as potentials to test it. During the test, you must analyse opinions from two main areas:
Characteristics and use of the product/service
Understanding the value proposition and intention to buy
At this point, you must bear in mind that not all potential clients that you contact for the test will be interested in helping you out. You must therefore analyse the “early adopters” client profile, those who have a tendency to try out market innovations, even though it is difficult to identify them.
We would also advise you to formulate an open questionnaire that can act as a guide during the MVP test and therefore be of utmost advantage to the measuring process.
In the same vein, we would like to propose some concepts that you can include in your questionnaire:
Current methodology in use
Time frame, members involved and cost of the process
Opinion on the functions that the product/service has to offer
How the MVP is presented – Would you buy it? What functions would it need for you to buy it?
After obtaining the necessary number of opinions (in our experience, 8-10 interviews), you will be able to analyse what aspects you have to modify for your initial MVP, and validate or reject the hypotheses that you constructed in the earlier stages.
Don’t be discouraged if you realise your initial idea needs several changes as you will be modifying your product/service in such a way that it is attractive for the market and also guaranteeing future sales.
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