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The lean healthcare entrepreneur

Is the lean startup methodology applicable when facing a helthcare challenge?

Written by K. Juréen

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2014

Abstract

Master Thesis: Lean entrepreneurship tree operation The lean framework is based on the lean entrepreneurship methodology, and the lean entrepreneurship methodology is derived from three theories (Ries, 2011): Lean manufacturing-maintaining value with less work, discovery-driven planning- Through experiments at the lowest possible cost, and customer development methods, Blank, 2005-a scientific method that teaches entrepreneurs how to balance product development and understanding the relationship between customers. Finally, the lean entrepreneurship movement is influenced by Bootstrapping. Guiding means using customer income to provide funds, or starting a self-sustaining process without any external input (Maurya, 2010). The concept of bootstrapping seems to have appeared as early as the 19th century as a metaphor for improving the situation through one's own efforts (Entrepreneur, 2014). The following (Figure 2) illustrates the timeline of the lean entrepreneurship movement's milestones formed as a tree. The tree is a metaphor for how sports develop. It is rooted in lean manufacturing and user-centered design. It grows through the backbone of different methods representing user-driven design and entrepreneurship, until it becomes the crown in full bloom today, adapting lean entrepreneurship methodology by different methods (Weintraub, 2014). This chapter briefly introduces Lean Movement and how previous users are involved in the design process. In summary, the first part of the running lean framework is introduced, namely the problem/solution matching (Maurya, 2010). 2.1 The root cause: the transition from technology to customer pull In the 1950s Dreyfuss organized a groundbreaking study called "Design for People" (Dreyfuss, 1955). His research laid the foundation for today's user-driven design methods, such as customer development methods (Blank, 2005). Dreyfuss’s original theory combines anthropology—revealing hidden hypotheses by working and living with the people under study (Buur & Matthews, 2008) and sociology—the study of human social development, organization, function, and classification (Collins ,Year 2009). At the same time, the Toyota Production System is being developed globally. Ohno coined the term "Genchi Genbutsu"-meaning to go and see. Toyota’s key principle is based on their belief that to truly understand what is needed on-site, go to the real place-where the work is being done. Taiichi Ohno is considered a pioneer in lean manufacturing and was launched in 1990 (Maurya, 2010). The lean entrepreneurial approach is a business model-driven approach, but it is driven by user needs (Ries, 2011). 3. Six key concepts-research on the innovation that is taking place Ries once defined lean entrepreneurs as people who are committed to driving big changes. Dixon-Woods et al. (2010) believe that innovators should “...study innovation while it occurs, instead of waiting until the experiment is completed to determine what measures need to be taken to implement interventions in real life”, and finally “ Let relevant stakeholders mediate and decide between competing interests and demands." The author sees health reform as continuous experimental learning and requires wise and courageous choices, because any medical system will eventually be abandoned and replaced. The Lean Startup method has some similarities with the suggestions made by Dixon-Woods et al., such as learning to innovate through continuous experimentation. The findings of the theoretical framework can be divided into six key concepts of lean entrepreneurship, which are summarized as follows (Ries, 2011 and Maurya, 2010). MVP until you reach Product Market Match (PMF). Lean Canvas: Use a reusable one-page business model to apply a business model-driven approach. Decompose all business models into nine interconnected components. Users act as early adopters: identify your early adopters and invite them to participate in the design process. Build-Measure-Learn: Transform ideas into products, measure customer reactions, and then learn the weather to support or persevere. BOOTSTRAPPING: Provide funds based on customer income, decide when to save money and when to spend money-based on the right Time to take the right action. Technology and business: A typical start-up team develops Web applications, consisting of developers and business experts. However, healthcare companies usually require a lot of time to launch viable products, which is different from typical high-tech network startups that usually apply lean startup methods (Nobel, 2011). Next, I will answer in which specific aspects the two startups are different. 3.1 Six Corresponding Concepts in Healthcare Enterprises Under the guidance of the above six key concepts, six corresponding concepts in typical companies in the healthcare environment have been determined. Multilateral markets: Dixon-Woods and colleagues (2010) believe that medical institutions’ Complex organizations and the wide range of different users can cause major difficulties when managing system changes or modifications. Technology-driven: Most product-related attributes are in the early stages. Weintraub (2014) stated that the challenge is to figure out what the product is and determine who might benefit the most from it. Read Less