ENT301
Lean Business Start-Up
WEEK 2
Why lean business start-up matters
The first 4 classes will not be live but will be recorded
and posted in Blackboard Collaborate
ü Week 1: no live class – access recording in Blackboard Collaborate
• Week 2: no live class – access recording in Blackboard Collaborate
• Week 3: no live class – access recording in Blackboard Collaborate
• Week 4: no live class – access recording in Blackboard Collaborate
• Week 5: 27 June, 11:30m AEDT:
our first live class – please attend!
• Lean Start-up is a field-tested approach to innovate and to build a new business.
• The Lean Start-up approach is designed to minimise the chances of business failure
and to increase the chances of success.
• We will explore how to apply lean principles and methodologies such as minimum
viable product, pivoting, actionable metrics, innovation accounting, business model
canvas and lean canvas.
• You will be tasked with developing and testing a new business concept, developing a
business plan, and pulling together a business pitch to potential investors.
Review: Lean Startup: What is This Course About?
• Lean is an ideology of maximising productivity by minimising waste.
• Lean techniques can be widely applied to many industries and
areas of innovation such as manufacturing process and service
industries such as IT, retail and healthcare.
• Lean Startup = Build-Measure-Learn
• Customer centric, empathizes speed & adaptability.
• Lean is applicable to start-ups, small-medium-enterprises and large
multi-national companies.
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What is Lean?
The five key principles of Lean:
1. Identify and Target Customers. Create value by respecting customer needs.
2. Respond to customer by closely aligning with unmet customer needs.
3. Map the Value Stream by understanding the value-chain.
4. Create Flow by eliminate waste.
5. Pursue Perfection by making excellence the habit.
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Principles of Lean
Lean helps get a to go-no go decision faster based
on customer feedback and value stream analysis.
The Lean Start-Up
Steve Blank, “Why The Lean Start-up Change Everything,” HBR, May 2013.
https://store.hbr.org/product/why-the-lean-start-up-changes-everything/R1305C
• Don’t ask “can this product be built?”, but “should this product be built?”
• Fail fast, fail cheap! Learn when you have made a bad assumption
about what to build.
• Get close to your customer! Get feedback!
• Develop a Minimally Viable Product (MVP) to begin learning.
• Spend time validating the business model instead of planning too much!
The Lean Startup Process
How is this approach different than traditional innovation processes?
• Focus on satisfying customers and creating value.
• Better identify and evaluate problem areas, especially usability,
convenience, cost, benefit.
• Increase efficiency, simplify processes, reduce costs.
• Cultural shift to continuous improvement.
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Benefits of Lean
• Turns the traditional, process-heavy approach to innovation on its head.
• Replaces detailed planning, consensus-building, and fundraising with
speed, experimentation, and direct customer interaction and feedback.
• Lean Startup = Build-Measure-Learn
• Put the user at the center of your idea: identify, experiment, test, adapt,
scale
• Measure user feedback to validate assumptions in our business model.
• Search To Execution…….Customer Targeting and Discovery…
Customer Validation….Customer Creation…..Company Building
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Lean Startup: can you describe?
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Sustories. (2011, May 18). Eric Ries on Lean Start-up Methodology [Video file]. Retrieved from https://youtu.be/y-ozPfRHFt8
Entrepreneur Eric Ries explains why lean start-up matters for entrepreneurs starting up a new venture. He explains his entrepreneurial background including
failures, and how he developed the principles and methodology.
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Bill Peterson talks about lean methods to be
more productive as an individual.
He provides many practical examples of
how we lack efficiency and waste our time
and efforts, and methods to ensure we
become more productive.
As you watch note down ways you could
use some of these lean methods to improve
your own productivity and increase your
opportunities to be a successful
entrepreneur.
TEDX Talks. (2011, December 27). TEDxKnoxville – Bill Peterson – Lean Applied to Us [Video file]. Retrieved from
https://youtu.be/tfQiGDUBdD0
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Lean Case Study
Watch the following case study video
of an entrepreneur discussing how
using lean principles has assisted his
business become more efficient and a
better workplace for his staff.
TXM Lean Solutions (2014, February 6). TXM Lean Case Study – Branach
Manufacturing . Retrieved
from https://www.youtube.com/watch?v=xavrHzgOf30
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Blank, S. (2014, October 29). How to Build a Lean Startup. 2 Minutes to See Why
[Video file]. Retrieved from https://www.youtube.com/watch?v=SpVGaD63g08
• Serial entrepreneur Steve Blank explains
why lean start-up matters for
entrepreneurs starting up a new venture.
• As you watch, note some reasons why he
believes it is important.
• This will help you start to consider the
methodology as a way to increase your
likelihood for success.
• Aherne, J., & Whelton, J. (Eds.). (2010). Applying lean in healthcare: A
collection of international case studies. Chapter 2
• Gelobter, M., George, C., & Blank, S. G. (2015). Lean Startups for Social
Change : The Revolutionary Path to Big Impact. Chapter 1
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References
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So You Want To Be An Entrepreneur!?
Number
Type & Description
Assessment Due Date
Weighing
1
Presentation (3-5 minutes)
Module 2.1
(Week 3: 19 June)
15 %
2
Business Investment Proposal
(1,000 words)
Module 3.2
(Week 6: 10 July)
30%
3
Market Viability Analysis
(2,000 words)
Module 5.1
(Week 9: 31 July)
40%
4
Pitch (3-5 minutes)
Module 6.1
(Week 11: 14 August)
15%
Assessments: hands on learning!
Did you read Assessment 1 Brief?
• Apply lean principles and techniques to develop a business idea.
• Prepare a 3-5-minute presentation pitch your business idea.
• Discuss how and why Lean Startup principles may be utilised to achieve success.
• For the video presentation, it is a good idea to try to convert your video to a link,
by uploading to YouTube. This will eliminate any upload size issues when
submitting your work to Blackboard.
• When uploading to YouTube, make sure to set the visibility to “Unlisted”. This
means only people with the URL will be able to see your video, ensuring your
privacy.
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Assessment 1: due 19 June
Suggested approach for your pitch:
1. Introduce yourself. This may include information about your areas of business
experience or industry interest.
2. Discuss the idea that you have chosen and why you chose it. This may include how it
fits with your values, capabilities, and why it is important to you and/or the market
3. Discuss lean start-up principles and why and how you anticipate using the principles to
achieve success.
4. Summarize your key points on your understanding of lean start-up .
5. Convince me this is a good idea!
6. Look into the camera and be “natural.”
7. Have fun and show some energy!
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Assessment 1: due 19 June
Your Goal:
• Communicate a clear understanding about why you have chosen the
idea and what the idea is about.
• Clearly demonstrate your knowledge and understanding about lean
start-up principles covered in the course materials so far.
• Demonstrate the same communication skills that you would use to pitch
to potential investors and stakeholders.
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Assessment 1: due 19 June
Ø Thoroughly understand the Assessment Brief & Grading Rubric.
Ø Ask questions to clarify!
Ø Ensure you address each section of the grading rubric.
Ø Ensure you understand the concepts, theory and practical applications of the topics
covered in class.
Preparing For Your Assessment Submission
Any Questions or Concerns?
Don’t forget!
I’m here to facilitate your journey, the rest is up to you!
• But, when in need, don’t hesitate to contact me through Blackboard class
messages or: doug.rosenberg@torrens.edu.au
• 1:1 appointments can be arranged by emailing me to set up a time.
