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Lean Startup Approach to Develop Ideas for Internal Systems and Processes

Creating Guidelines for Working with Ideas within Software and Service Companies

Written by Sandra Waldenstrom

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2018

Abstract

Master Thesis: Innovation process Innovation is the act of developing new or original things that are different from old projects or processes [10], and it comes from ideas [11]. The sustainable flow of innovative ideas is the first step in the innovation process [11]. In order to increase the likelihood of successful innovation as a result of the innovation process, the quality of the generated ideas is an important consideration [11, 12]. Therefore, the second step of the innovation process is to evaluate ideas to see if they are successfully suitable for the company’s strategic goals and benefit stakeholders [11].2.1.1 The creation of creative ideas or ideas is the act of forming ideas [13]. Ideas are the result of creative or rational thinking processes [11]. When generating ideas, brainstorming is a common technique [14, p. 16]. It usually generates many ideas in a short period of time. According to Berg et al., generate as many ideas as possible. Al. [3, p. 230{232] and the goal of idea generation. When generating ideas, innovative companies encourage employees to actively participate because they highly value their opinions and different perspectives [14, p. 14]. 17]. This is consistent with the views of Berg et al. Al. [3, p. 62] said. They argue that the company benefits from gathering people with different knowledge and experience to generate ideas because ideas can be discussed on the basis of all its aspects. Negroponte [15, p. 62] is another author who said that new ideas come from differences, while creativity comes from unlikely juxtapositions. In addition, Girotra and Ulrich [16] suggested that, compared to a team that only cooperates, teams that first work independently and then work together can generate more and better ideas while they are better aware of the quality of the ideas generated. In addition to how the company should organize the team to generate ideas, it is also important to define what they should focus on when generating ideas. In the field of service design, Berget. Al. [3, p. 230 {232] It is believed that the generated ideas should be based on user needs, problems and opportunities. Therefore, it is important to understand the user first. 2.1.2 Evaluating ideas After ideas are generated, the next step is to evaluate them to ensure that they fit the company's strategic goals and meet the needs of the people on which these ideas are based [11]. The more ideas, the more time it takes to evaluate them [14, p. 14]. 16]. However, the evaluation phase should be based on Cantzler [14, p. 44] and cannot be completed directly after the creative phase. His experience with creativity in companies and organizations is that it usually takes a pause to gain insight into which ideas are worthy of further research. 2.3 Lean Startup Lean Startup was developed by Eric Ries [7] as a method of evaluating new business ideas, by working in a build-measure-learning cycle and constantly asking customers for feedback to quickly minimize its risks and failures. Ries [7] believes that this method is applicable to companies of any size, even large companies [7]. The successful case of applying lean entrepreneurial methods in a large company is a case study conducted by Edison et al. Al. [9]. Research shows that applying lean entrepreneurship methods helps a large case company develop the right product and find the right market segment faster [9]. Other companies such as F-secure1 and OP Finance Group2 have used this method to develop new business ideas [6]. Therefore, OP Finance has developed a mobile wallet-Pivo. Compared with other OP nance services, Pivo has a generally higher score, and its average score in the Apple App Store is 4.5 (out of 5 points). F-secure tried a lean entrepreneurial approach when developing Lokki, a location sharing service for personnel protection. Lokki was so successful that after developing Lokki, F-secure began to use this method mainly in new product development projects. 2.3.1 Lean Canvas Ash Maurya [18], successfully used lean entrepreneurship methods when generating business ideas. As he experienced the time-consuming process of developing a plan to bring ideas to market, he developed the Lean Canvas [18]. TheLean Canvas is a one-page template for quickly creating plans to introduce ideas to the market. The original idea was mainly based on untested hypotheses [19,p. 3{4]. By defining the initial idea on the Lean Canvas, then testing and defining the idea, the result will be an idea plan based on facts rather than assumptions [19, p. 3{4]. Maurya [19, p. 5 {6] stated that the main advantages of Lean Canvas are speed, simplicity and portability. The speed is very fast, because compared with the preparation of a similar plan, which may take weeks or months, you can draw up multiple plans for successful business operations on acanvas in one afternoon. In addition, Lean Canvas forces people to focus on the most important things and make reasonable plans. Because it is portable, it is easier to share with others and may be updated more frequently. The Lean Canvas, as shown in Figure 2.1, consists of nine building blocks that have a clear connection to the product or market. The nine building blocks [18, 20] are listed and explained in the following list: 1. Problem-build a correct understanding of the problem from the beginning. This is crucial because Maurya believes that most startups fail because they waste time, money and energy or build the wrong product. 2. Customer segmentation-identify the customers of the solution. If you have multiple target customers, you should create a separate canvas for each customer, because there are likely to be other parts, such as problems, solutions, channels, etc. Read Less