LSM Da2
LSM Da2
LSM Da2
Sol.:
A Minimum Viable Product (MVP) is a product that has the bare minimum of
functionality required to be usable by early adopters, who can then offer feedback
on how to improve the product in the future. An MVP is intended to test the
fundamental premises of your product concept and to gather as much information
as you can about the needs and desires of your target market.
Flow Chart:
2. Write a review on how the BMI is one of the most important aspects of
developing a business start-up based on the journal provided below.
Download the journal listed below and conduct a comprehensive review
to understand the significant contribution of the BMI approach to LSM.
Journal: The Business Model Innovation and Lean Startup
Process Supporting Startup Sustainability
Sol.:
Abstract:
Introduction:
In today's dynamic business landscape, startups face intense competition and the
need for constant innovation. Business Model Innovation (BMI) emerges as a
pivotal strategy to navigate these challenges successfully. This paper aims to
shed light on the significance of BMI in startup development, drawing upon
insights from relevant academic literature.
A business model is crucial for companies for several reasons, including the
following:
• Describe the issue: Identifying the issue that the startup is attempting to
tackle is the first step. What are the wants and needs of the intended
audience?
• Make a resolution: After the issue has been identified, the startup must create
a solution. This could entail creating a brand-new good or service or altering
the way an already-existing one is provided.
• Determine the target audience: The startup must decide who its target
customer is. Who are the clients most likely to require or desire the good or
service?
• Create a revenue model: A revenue model needs to be created for the startup.
How will the business make money off of its goods or services?
• Create a cost structure: A cost structure needs to be created for the startup.
What are the expenses incurred in creating and providing the good or
service?
It is critical to test the startup's business model with clients to determine its
viability after it has been created. The startup should also assess and adjust its
business model on a regular basis to make sure it is in line with shifting
consumer demands and market conditions.
Examples of Well-Structured Business Models:
Integration of Sustainability:
There are a number of ways that startups can implement sustainable BMI. Here
are a few examples:
• Develop sustainable products and services: Startups can develop
sustainable products and services that meet the needs of their customers and
reduce their environmental and social impact. For example, a startup could
develop a new product made from recycled materials, or it could develop a
new service that helps customers to reduce their carbon footprint.
• Adopt sustainable business practices: Startups can adopt sustainable
business practices throughout their operations. For example, startups can
reduce their energy and water consumption, minimize their waste
production, and use sustainable transportation.
• Partner with other businesses: Startups can partner with other businesses
to develop sustainable products and services, or to adopt sustainable business
practices. For example, a startup could partner with a supplier of sustainable
materials, or it could partner with another startup to develop a new
sustainable product or service.
• Airbnb: Airbnb started out as a simple website where people could rent out
their air mattresses to travellers. The founders of Airbnb used the Lean
Startup methodology to test their business model and to learn what
customers wanted. They iterated on their business model and expanded into
new markets, such as renting out entire homes and apartments. Today,
Airbnb is one of the largest travel companies in the world.
• Netflix: Netflix started out as a DVD-by-mail service. The founders of
Netflix used the Lean Startup methodology to develop a new business
model, which was a subscription service that gave customers access to a
streaming library of TV shows and movies. Netflix also expanded into new
markets, such as original programming. Today, Netflix is one of the most
popular streaming services in the world.
• Amazon: Amazon started out as an online bookstore. The founders of
Amazon used the Lean Startup methodology to expand into new product
categories, such as electronics, clothing, and groceries. Amazon also
developed new business models, such as Amazon Prime and Amazon Web
Services. Today, Amazon is one of the largest retailers in the world.
These are just a few examples of startups that have successfully used the Lean
Startup methodology and BMI. The Lean Startup methodology and BMI are
powerful tools that can help startups to develop and launch successful products
and services.
Business Model Innovation (BMI) and the Lean Startup methodology are two
complementary approaches that can make substantial contributions to startup
sustainability.
For example, a startup that sells electric vehicles may initially focus on the
luxury market. However, as the market for electric vehicles matures and
competition intensifies, the startup may need to pivot to a new business model,
such as offering more affordable electric vehicles or developing subscription
services for electric vehicles.
For example, a startup that develops a new mobile app may initially test the app
with a small group of users. Based on the feedback from these users, the startup
may make changes to the app before launching it to a wider audience.
BMI can also help startups to align their business models with their
sustainability goals. For example, a startup that is committed to sustainability
may develop a business model that focuses on selling recycled products or
offering services that help customers to reduce their environmental impact.
Ensure Long-Term Viability:
Both BMI and the Lean Startup methodology emphasize long-term viability. By
continually innovating and adapting their business models, startups can increase
their chances of success in the long term.
For example, a startup that develops a new social media platform may initially
focus on attracting users and generating advertising revenue. However, as the
social media market evolves, the startup may need to pivot to a new business
model, such as offering premium features to users or developing new ways to
monetize its user data.
Examples of Startups That Have Successfully Used BMI and Lean Startup to
Achieve Sustainability. Several startups have successfully used BMI and Lean
Startup to achieve sustainability. Here are a few examples:
• Tesla: Tesla is an electric vehicle company that has used BMI and Lean
Startup to achieve sustainability. Tesla has continually innovated its business
model, expanding into new markets, and developing new products, such as
energy storage systems and solar panels.
• Patagonia: Patagonia is a clothing company that is committed to
sustainability. Patagonia uses BMI to develop sustainable products and
services, and it has adopted several sustainable business practices, such as
using recycled materials in its products and offering a repair service for its
products.
• Impossible Foods: Impossible Foods is a food technology company that
produces plant-based meat substitutes. Impossible Foods has used Lean
Startup to test and refine its products before launching them to the public.
Impossible Foods is also committed to sustainability, and its plant-based
meat substitutes have a lower environmental impact than traditional meat
products.
Conclusion
Business Model Innovation (BMI) is indeed at the core of startup success, and
its close relationship with the Lean Startup methodology highlights its strategic
importance. The dynamic and ever-changing nature of today's business
landscape demands that startups continually reassess and adapt their business
models. BMI becomes not just a one-time activity but an ongoing, strategic
imperative for startups seeking to thrive in an environment characterized by
rapid shifts and uncertainties.
Startups are inherently positioned at the forefront of innovation, aiming to
disrupt existing markets or create entirely new ones. In this context, the ability
to innovate their business models is a potent weapon. BMI allows startups to
explore uncharted territory, identify novel sources of value, and redefine their
value propositions to customers, suppliers, and partners. This adaptability is a
key factor in their survival and growth.