Concept
Eric Ries introduced the validated-learning term in 2011 as an integral part of the lean-start-up method. This process shows empirically that a team has discovered valuable truths about a start-up’s present and future business prospects (Ries, 2011)1. Validated learning involves a reiterated loop of ‘Build-Measure-Learn’. Build action means an entrepreneur theoretically defines a business concept or prototype of a product or business model based on hypotheses. Measure action reveals that an entrepreneur tests build hypotheses by interviewing potential customers and collecting their opinions on hypotheses. Learn action shows whether an entrepreneur accepts or pivots hypotheses. The Build-Measure-learn process is critical for the success of any entrepreneur as it allows a quick validation of assumptions and learning to build up start-ups, including the problem-solution test, product-market test, and business model test.
Background
The Build-Measure-Learn concept originated from the lean manufacturing method to quickly learn and test hypotheses of a business concept. In 2011, Eric Ries wrote the book ‘Lean start-up’, crystallising the term validated learning of ‘Build-Measure-Learn’.
How does it work?
Validated learning is testing hypotheses about the business concept with potential customers and accepting or pivoting hypotheses accordingly. Validated learning involves the following steps:
Set leap hypotheses
Any start-up passes three tests to be successful: (1) the problem-solution test, (2) the product-market fit, and (3) the scalability test. For every test, you will identify hypotheses about the value and growth before you meet potential customers, collect opinions, and validate these assumptions. For example, in the problem-solution test, an entrepreneur may assume that a defined problem and solution will get accepted by most customers.
Build up a prototype
It is about visualising your solution or concept to communicate with potential customers for validation. A prototype can be a sketch, brochure, simple drawing, land page, dummy product or functional product. The purpose of any prototype is to let innovators learn quickly and validate value assumptions in the marketplace.
Design an experiment
It is a plan to conduct a market experiment to test a solution prototype involving hypotheses, product prototypes, a list of customers, questions to ask, acceptance/rejection criteria, a schedule of interviews, and more.
Experiment
It is about implementing the design of an experiment explained in the previous step and collecting information.
learn
It is accepting or rejecting hypotheses based on the feedback of customers.
- This post is sourced from my new book- Your Guide To Reach Innovation.
- For more information about the book: https://growenterprise.co.uk/your-guide-to-reach-innovation/
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Final note: the book- Your Guide To Reach Innovation, is an actionable guide to innovation from beginning to end. Enjoy reading the book, and I look forward to your reviews.
Author: Munther Al Dawood
maldawood@growenterprise.co.uk
Reference:
- Ries, E., 2011. The lean start-up, Crown Business New York.
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