18BCB0107 Da2

This document is a summary of a presentation by Steve Blank on readiness levels for startups. It discusses: - Steve Blank's background and contributions to lean startup methodology - The three components of lean startup: business model canvas, customer development, and agile engineering - How technology readiness levels (TRL) were developed at NASA to assess project maturity based on testing - Blank's Launchpad Central software which collects startup data to create business models and assess investment readiness - The importance of testing hypotheses with customers and using feedback to iteratively improve the startup idea

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18BCB0107 Da2

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Akash Yadav

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MGT 1022

LEAN STARTUP MANAGEMENT

DIGITAL ASSIGNMENT 2

Submitted to:
Dr. Suraj Kushe Shekhar
Department of Technology Management, SMEC, VIT Vellore

Slot-TE1

Submitted By: Date: 1st April 2021

SHASHVAT NAWANI
(18BCB0107)
TOPIC: Moneyball - The Readiness Level
Speaker: Steve Blank
Link: https://flipgrid.com/97c9808b
He is a mentor and also a public speaker who has coined the phrase which people
usually use “Customer Development”, he is also the author of the Book “4 Steps of
Bethany” and also “Startup owner’s manual”. He has influenced and enlightened
many people through his words whether in the form of his writing or public speaking.
Their business article on Harvard business review resulted in over a million people
reading about Lean Startup and it was published in 9 different languages.
People who are into new ventures he gives them the preview of how they will be
judged and what should be the right approach for them to approach an investor.
He has beautifully defined startup as a temporary organization designed to search a
scalable and repeatable business model.
Lean Startup constitutes of 3 things:
• Business Model Canvas
• Customer Development
• Agile Engineering
Lean Startup is that way by which US government commercializes the most
interesting and innovating science innovation and unique ideas.
His target audience were of 2 categories:
(1) The first is for those who funds, manage, incubate, accelerate and teach new
ventures.
(2) The second one is for those who are in new ventures.
He started by telling us about Evidence Based Entrepreneurship, evidence here means
first time ever something is done using Lean Startup, using which we can analyze how
the startup will progress when it enters the market i.e., when there are no customers,
services have not started and company is not getting any revenue.
“Startups are just a smaller version of large companies”, which is not true and he
busted this! Startups are new creative ideas which have potential to attract consumer
and can gains investors’ confidence. In fact, big companies work on the core
principles and goals which were laid during their venture phase.
“Startup actually search for business models”, He believes every startup should be
ready with 5-year plan considering various uncertainties which may occur over the
years. To have the right foundation one can start off with the minimum viable product
and then analyze the volunteer feedback and thereby work upon customer satisfaction
and suggestions.
He shared his way of teaching Evidence based Curriculum in which students have to
come up with their own Hypothesis and then there use to be experiments on various
cases, problems and how they will come up with the solution for it. The data gathered
from different feedbacks, suggestions has gone be put in action so that they can have a
better experience of how to plan and deal with things. There are 2200 teams doing
Lean Startup on a Global Scale, learnt from Launchpad Central. Teams from this class
have a success rate of 60% of getting funded.
What is Moneyball about?
When 2 teams in handball were competing in athletics, one had the budget of
120million USD and other had 40million USD. So, the team with the lower budget
was focused more about their budget and they gave this as an excuse for their loss but
their new Manager came up with the new idea of seeing the problem from a different
perspective i.e., working on something which is in our hand and is our USB. So he
suggested that we should make a team based on our own matrix which is based on
percentage, slugging percentage. His entire idea was that their aim shouldn’t be to buy
players but to buy wins. So this is about Moneyball where one focuses on his
strengths by using Evidence Based Entrepreneurship.
The National Science Foundation’s Innovation Corps program uses experiential
education to help researchers gain valuable insight into entrepreneurship, starting a
business or industry requirements and challenges.
The Launchpad Central Software collects detailed live data, using this they can
directly create the Business model canvas and this is specifically designed to train
people in both of their program:
Program 1: LEAN LAUNCHPAD EDUCATOR SEMINAR
This aims to teach 300 educators per year and half a quarter of them is being
taught by Steve Blank himself.

Program 2: LEAN LAUNCHPAD INCUBATOR/ACCELARATOR

SEMINAR
This aims to teach the working professionals, teachers so that they can teach
other people, so they basically make educators.
TRL (Technology Readiness Level)
40years ago when NASA wanted to go to the moon, they failed many times.
They then tried to analyze why they were failing so after the in depth analysis they
realized that their rocket parts were stated as ready to be put but ready doesn’t imply
any quality standard or the number of tests it has passed or the compatibility test with
the hardware. So, to solve this they came up with TRL.
Features of TRL:
• Formal way to access project maturity
• Quantify Relative Risks
• Data Driven
• Range from TRL 1 to 9 (1 being basic and 9 being ready to be deployed)
How is this relevant to LSM?
This is used to come up with the readiness level after analyzing the feedback/reviews.
It gives IRL Investment Readiness Level,
His Conclusion Statement:
His main emphasis was on having a plan, have as many feedbacks from consumers as
possible and then work on it. There is his idea and software which we can use to check
our hypothesis, build business canvas model and about Agile Engineering. But for all
of this we first need to come up with a better idea and LSM is possible for all the
fields if there is a field which has no possibility of a startup then its just that one is
unable to expand his boundaries. One should work upon his USB’s and figure out all
the possible problems/test cases he can encounter and then built the exact model.
So, one can actually be ready with everything including customer review without
actually coming into market. His software, techniques, lectures can help us built it and
also check its scope in future.