Competitive advantage has taken a new meaning in businesses today. Most of the business leaders try to focus more on the outcome rather than the approach. They believe in adding a ‘wow’ factor to their products to win over customers without considering the approach necessary to achieve that. This might result in a big-time failure. In this article at the Tech Republic, Alison DeNisco Rayome explains the insights shared by Chris Howard, CIO of Slingshot on how the Lean process can drive a faster go-to-market strategy with fewer risk factors and better customer experience.
Why Do They Fail?
A recent study by Fahrenheit 212, a consulting firm, states that about 90 percent of new business ideas fail. This high failure rate can be attributed to the lack of proper vision. Most of the new business solutions do not address the problem at hand. At the 2018 Code PaLOUsa Conference in Louisville, Howard shared this example of Snapchat to support this fact:
- Snapchat Spectacles were introduced in 2017 to ‘wow’ the users. However, only 0.08 percent of users bought and gradually discarded them resulting in a $40 million loss for the company. This happened because Snapchat lacked an effective approach to make the spectacles more useful and worthy of its price.
Howard explains some of the common challenges as lack of customer involvement, inadequate resources for problem-solving and focus on unwanted product features. To counter such scenarios, Howard proposes the use of Lean processes. He considers Lean as a new thought process centered around customer engagement and product viability. It provides the scope for early detection and resolution of issues while measuring success on the other hand.
How Do We Benefit?
Lean development process establishes a collaborative culture between the key stakeholders. It allows you to develop a product, measure its effectiveness, validate the data and use these learnings to improvise further. This build-measure-learn cycle helps in delivering the best value products to the customer. Therefore, the major paybacks of Lean development can be summarized as follows:
- Having a sharp learning curve with quick insights
- Evaluating real-time trends on customer behavior
- Building rapport and close relationships with the customer
- Deriving metrics to judge the success rate
- Steering the business and products in the right direction
To understand these viewpoints better, read the full article here – https://www.techrepublic.com/article/the-5-biggest-business-benefits-of-lean-development/