Build, Measure, Learn

The process of building a new product or service starts with ideas, often born of the experience of the entrepreneurs. It makes real the entrepreneurs’ vision; it is generally based on Leaps of Faith. Do consumers recognise they have the problem you are trying to solve? If there was a solution, would they buy it? Would they buy it from you? Can you build a solution for that problem? The goal is to get round the build-measure-learn cycle as quickly as possible and as often as necessary to achieve the production of a product or service growing sustainably and delivering full value to customers. The only way to win is to learn faster than anyone else. Minimum Viable Product To get the fastest start, build a Minimum Viable Product (MVP) with the essential product features to enable it to be evaluated by customers (early adopters).  When in doubt, simplify.  It is also necessary to include features which enable the effect of the MVP to be measured.The termInnovation Accounting is used to describe a quantitative method for capturing the evidence about the product or service’s performance. This is the measure phase. Innovation Accounting 1. Use a MVP to establish a baseline with real data such as conversion rates, value of sale. 2. Make adjustments and measure their effects until the ideal is reached or is deemed unreachable. 3. Pivot, that is make a major significant change e.g. in the target customer segment, the product, the channel.